-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, L41YMeZzELiNZ34JHhJP/GR2RBmlPDGv0TZZOVzZGbjZZaoe+dTH2yf14qe3CIz3 CNMiUp5s47+Od3235cvHEQ== 0001104659-05-012566.txt : 20050323 0001104659-05-012566.hdr.sgml : 20050323 20050323172300 ACCESSION NUMBER: 0001104659-05-012566 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050314 ITEM INFORMATION: Entry into a Material Definitive Agreement ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050323 DATE AS OF CHANGE: 20050323 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DAYTON POWER & LIGHT CO CENTRAL INDEX KEY: 0000027430 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 310258470 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-02385 FILM NUMBER: 05699844 BUSINESS ADDRESS: STREET 1: 1065 WOODMAN DRIVE CITY: DAYTON STATE: OH ZIP: 45432 BUSINESS PHONE: 9372246000 MAIL ADDRESS: STREET 1: 1065 WOODMAN DRIVE CITY: DAYTON STATE: OH ZIP: 45432 8-K 1 a05-5619_18k.htm 8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)    March 14, 2005

 

The Dayton Power and Light Company

(Exact name of registrant as specified in its charter)

 

Ohio

 

1-2385

 

31-0258470

(State or other jurisdiction

 

(Commission

 

(IRS Employer

of incorporation)

 

File Number)

 

Identification No.)

 

 

 

 

 

1065 Woodman Drive, Dayton, Ohio

 

45432

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code    (937) 224-6000

 

 

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)

 

o Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4 (c)

 

 


 

Section 1 – Registrant’s Business and Operations

 

Item 1.01   Entry into a Material Definitive Agreement

 

On March 14, 2005, The Dayton Power and Light Company (the “Company”) entered into an amendment to their open book contract with Black & Veatch Corporation.  The amendment provides for engineering and construction management of the flue gas desulfurization project (installation of scrubbers) at both the J.M. Stuart Generating Station and the Killen Generating Station.  The project is expected to be completed in 2008 and the Company’s proportionate share of the contract cost is estimated to be in excess of $280,000,000.

 

A copy of the amendment to the open book agreement is attached hereto as Exhibit 10.1.

 

Item 9.01 (c). Exhibits.

 

 

10.1

 

Amendment to open book agreement between The Dayton Power and Light Company and Black & Veatch Corporation, dated March 14, 2005.

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

The Dayton Power and Light Company

 

(Registrant)

 

 

 

 

Date     March 23, 2005

/s/ Miggie E. Cramblit

 

 

Miggie E. Cramblit

 

 

Vice President, General Counsel
and Corporate Secretary

 

 

2

 

 EX-10.1 2 a05-5619_1ex10d1.htm EX-10.1

EXHIBIT 10.1

 

AMENDMENT NO. 1

TO THE

OPEN BOOK CONTRACT

 

THIS AMENDMENT NO. 1 (the “Amendment”) to the Open Book Contract dated the 17th day of August, 2004 (the “Open Book Contract”) is made and entered into this 10th day of February, 2005, by and between THE DAYTON POWER AND LIGHT COMPANY, an Ohio corporation with an address of 1065 Woodman Drive, Dayton, Ohio 45432 (“DP&L”) and BLACK & VEATCH CORPORATION, a Delaware Corporation with an address of 11401 Lamar, Overland Park, Kansas 66211 (“B&V”).  DP&L and B&V may be sometimes referred to herein collectively as the “Parties” and individually as a “Party.”

 

NOW THEREFORE, in consideration of the premises and the mutual promises and agreements of the Parties herein expressed, the Parties, intending to be legally bound, hereby agree to the following changes to the Open Book Contract:

 

1.               CAPITAL COST.  Delete Exhibit C, and replace it with the attached Exhibit C dated 3 February 2005.

 

2.               CASH FLOW.  Delete Exhibit D, and replace it with the attached Exhibit D, sheets 1 to 4 dated 3 February 2005.

 

3.               CONSTRUCTION MANAGEMENT SERVICES.  The terms of the attached B&V letter dated December 15, 2004 (BV/DPL-083) are added to the Open Book Contract.

 

4.               ARTICLE III. PRICING PAYMENT AND INCENTIVE STRUCTURE

 

•                  The total Target Costs of the Project are $660,090,350 as itemized in Exhibit C.  A total Shared Incentive Fund value of $66,009,035 has been calculated at 10% of the Target Cost.  The total Shared Incentive Fund value has been assigned 50% to DP&L and 50% to B&V.  $2,777,674 has been deducted from the DP&L portion of the Shared Incentive Fund.  The resulting $33,004,518 represents the B&V portion of the Shared Incentive Fund and $30,231,361 represents the DP&L portion of the Shared Incentive Fund.  The combined Shared Incentive Fund value of $63,231,361 is entered into Exhibit C of the Open Book Contract.

 

•                  The B&V and DP&L portions of the Shared Incentive Fund shall be separately identified throughout the project.  The total Shared Incentive Fund shall not be split 30% for Procurement Incentive and 70% for Project Completion Incentive.  Project savings or cost overruns from both procurement and completion activities will be added to or deducted from the DP&L and B&V separate incentive funds in equal amounts (50% DP&L and 50% B&V).

 

•                  Upon completion of the major procurement awards, the procurement incentive payment to B&V shall be determined.  The 30% value of the B&V and DP&L Incentive Funds shall be calculated.  Based on mutual agreement of the remaining Project’s risks and the current Project economic profile B&V shall be paid one-half of the of the 30% value of the B&V Incentive Fund at this time as an equivalent partial payment of the procurement incentive.  One half of the 30% value of the DP&L Incentive Fund shall be designated as the DP&L Procurement Incentive.

 

1


 

•                  Should the Project incur costs greater than the Not-to-Exceed Price, DP&L shall replace the $2,777,674 in their share of the Incentive Funds before the provisions of Article III. C. are implemented.

 

5.               The Open Book Contract as modified by this Amendment No. 1 shall remain in full force and effect.

 

IN WITNESS WHEREOF, the Parties have executed this Amendment to the Open Book Contract as of the date indicated above.

 

  THE DAYTON POWER AND LIGHT

 

BLACK & VEATCH CORPORATION

  COMPANY

 

 

 

 

 

 

 

 

 

 

 

 

 

  By:

 

 

 

By:

 

 

 

A. A. Farrell

Legal

 

 

 

Michael A. Perry

 

Manager - Central Engineering

Proc.

 

 

 

 

Senior Vice President

 

 

 

 

Director AQC Projects

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  W. Steven Wolff

 

 

 

  President - Power Production

 

 

 

 

2


 

EXHIBIT C

DP&L WFGD RETROFIT

CAPITAL COST SUMMARY - Definitive Estimate

 

3-Feb-05

 

ITEM

 

STUART 1,2,3, & 4

 

STUART COMMON

 

STUART TOTAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIT RATING, MW

 

610

 

2,440

 

 

 

 

 

2,440

 

 

 

 

 

$

 

%

 

$

 

%

 

$

 

%

 

DIRECT COSTS

 

 

 

 

 

 

 

 

 

 

 

 

 

Civil/Structural Equipment & Material

 

$

19,159,614

 

8.8

%

$

31,405,834

 

9.3

%

$

50,565,448

 

9.1

%

Mechanical Equipment & Material

 

$

48,786,793

 

22.4

%

$

23,227,665

 

6.9

%

$

72,014,458

 

13.0

%

Electrical/Control Equip & Material

 

$

15,024,486

 

6.9

%

$

15,424,174

 

4.6

%

$

30,448,660

 

5.5

%

Construction Contracts

 

$

88,136,751

 

40.5

%

$

163,991,703

 

48.6

%

$

252,128,454

 

45.4

%

Stuart Baseline Stiffening

 

$

46,200,959

 

21.2

%

$

0

 

0.0

%

$

46,200,959

 

8.3

%

SUBTOTAL DIRECT COSTS

 

$

217,308,603

 

99.8

%

$

234,049,376

 

69.4

%

$

451,357,979

 

81.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INDIRECT COSTS

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineering/Proj Management

 

$

0

 

0.0

%

$

22,658,839

 

6.7

%

$

22,658,839

 

4.1

%

Construction Management

 

$

0

 

0.0

%

$

16,375,051

 

4.9

%

$

16,375,051

 

3.0

%

Site Services & Indirects

 

$

459,999

 

0.2

%

$

6,510,001

 

1.9

%

$

6,970,000

 

1.3

%

Chiyoda License Fee (Est.)

 

$

0

 

0.0

%

$

7,175,000

 

2.1

%

$

7,175,000

 

1.3

%

SUBTOTAL INDIRECT

 

$

459,999

 

0.2

%

$

52,718,891

 

15.6

%

$

53,178,890

 

9.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TARGET PRICE

 

$

217,768,602

 

100.0

%

$

286,768,267

 

85.0

%

$

504,536,869

 

90.9

%

CONTINGENCY/SHARED INCENTIVE FUND

 

$

0

 

0.0

%

$

50,453,687

 

15.0

%

$

50,453,687

 

9.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOT-TO-EXCEED PRICE

 

$

217,768,602

 

100.0

%

$

337,221,954

 

100.0

%

$

554,990,556

 

100.0

%

$/KW

 

 

 

 

 

 

 

 

 

$

227

 

 

 

 

ITEM

 

KILLEN 2

 

DP&L TOTAL

 

 

 

 

 

 

 

 

 

 

 

UNIT RATING, MW

 

635

 

 

 

3,075

 

 

 

 

 

$

 

%

 

$

 

%

 

DIRECT COSTS

 

 

 

 

 

 

 

 

 

Civil/Structural Equipment & Material

 

$

25,656,257

 

15.2

%

$

76,221,705

 

10.5

%

Mechanical Equipment & Material

 

$

18,536,996

 

11.0

%

$

90,551,454

 

12.5

%

Electrical/Control Equip & Material

 

$

7,975,687

 

4.7

%

$

38,424,347

 

5.3

%

Construction Contracts

 

$

83,683,315

 

49.7

%

$

335,811,769

 

46.4

%

Stuart Baseline Stiffening

 

$

0

 

0.0

%

$

46,200,959

 

6.4

%

SUBTOTAL DIRECT COSTS

 

$

135,852,255

 

80.7

%

$

587,210,234

 

81.2

%

 

 

 

 

 

 

 

 

 

 

INDIRECT COSTS

 

 

 

 

 

 

 

 

 

Engineering/Proj Management

 

$

7,360,641

 

4.4

%

$

30,019,480

 

4.2

%

Construction Management

 

$

6,487,506

 

3.9

%

$

22,862,557

 

3.2

%

Site Services & Indirects

 

$

2,803,079

 

1.7

%

$

9,773,079

 

1.4

%

Chiyoda License Fee (Est.)

 

$

3,050,000

 

1.8

%

$

10,225,000

 

1.4

%

SUBTOTAL INDIRECT

 

$

19,701,226

 

11.7

%

$

72,880,116

 

10.1

%

 

 

 

 

 

 

 

 

 

 

TARGET PRICE

 

$

155,553,481

 

92.4

%

$

660,090,350

 

91.3

%

CONTINGENCY/SHARED INCENTIVE FUND

 

$

12,777,674

 

7.6

%

$

63,231,361

 

8.7

%

 

 

 

 

 

 

 

 

 

 

NOT-TO-EXCEED PRICE

 

$

168,331,155

 

100.0

%

$

723,321,711

 

100.0

%

$/KW

 

$

265

 

 

 

$

235

 

 

 

 

3


 

Exhibit D - Sheet 1

J. M. Stuat & Killen Scrubber Project

Estimated Cash Flow - Total Project

 

3-Feb-05

 

Date
Payment is
Due

 

Stuart Scrubber

 

Killen
Scrubber

 

Stuart
Balanced
Draft

 

Quarterly
Total

 

Cumulative Total

 

Jan-05

 

$

7,415,000

 

$

925,000

 

$

954,000

 

$

9,294,000

 

$

9,294,000

 

Apr-05

 

$

12,110,000

 

$

1,090,000

 

$

6,160,000

 

$

19,360,000

 

$

28,654,000

 

Jul-05

 

$

15,882,000

 

$

1,495,000

 

$

2,249,223

 

$

19,626,223

 

$

48,280,223

 

Oct-05

 

$

20,521,609

 

$

2,927,791

 

$

3,882,000

 

$

27,331,400

 

$

75,611,623

 

Jan-06

 

$

28,636,998

 

$

14,126,512

 

$

788,512

 

$

43,552,023

 

$

119,163,646

 

Apr-06

 

$

48,640,618

 

$

23,053,797

 

$

2,074,162

 

$

73,768,576

 

$

192,932,222

 

Jul-06

 

$

113,753,760

 

$

35,800,751

 

$

9,477,768

 

$

159,032,279

 

$

351,964,502

 

Oct-06

 

$

65,807,485

 

$

30,663,905

 

$

54,969

 

$

96,526,360

 

$

448,490,861

 

Jan-07

 

$

60,644,831

 

$

22,534,183

 

$

10,768,030

 

$

93,947,045

 

$

542,437,906

 

Apr-07

 

$

32,200,316

 

$

16,601,000

 

$

51,239

 

$

48,852,556

 

$

591,290,462

 

Jul-07

 

$

38,121,451

 

$

5,729,050

 

$

6,438,946

 

$

50,289,447

 

$

641,579,909

 

Oct-07

 

$

18,050,751

 

$

13,384,165

 

$

—

 

$

31,434,916

 

$

673,014,825

 

Jan-08

 

$

12,798,186

 

$

—

 

$

—

 

$

12,798,186

 

$

685,813,011

 

Apr-08

 

$

28,424,985

 

$

—

 

$

3,302,109

 

$

31,727,094

 

$

717,540,104

 

Jul-08

 

$

5,128,271

 

$

—

 

$

—

 

$

5,128,271

 

$

722,668,375

 

Oct-08

 

$

653,336

 

$

—

 

$

—

 

$

653,336

 

$

723,321,711

 

Jan-09

 

$

—

 

$

—

 

$

—

 

$

—

 

$

723,321,711

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-Total

 

508,789,597

 

168,331,155

 

46,200,959

 

723,321,711

 

 

 

 

4

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