EPS

9 Months Ended

Sep. 30, 2011

EPS

12. EPS

Basic EPS is based on the weighted-average number of DPL common shares outstanding during the year. Diluted EPS is based on the weighted-average number of DPL common and common-equivalent shares outstanding during the year, except in periods where the inclusion of such common-equivalent shares is anti-dilutive. Excluded from outstanding shares for these weighted-average computations are shares held by DP&L's Master Trust Plan for deferred compensation and unreleased shares held by

DPL's ESOP.

The common-equivalent shares excluded from the calculation of diluted EPS, because they were anti-dilutive, were not material for the three and nine months ended September 30, 2011 and 2010. These shares may be dilutive in the future.

The following illustrates the reconciliation of the numerators and denominators of the basic and diluted EPS computations:

$ and shares in millions except			Three Months Ended September 30,
per share amounts			2011					2010
					Per					Per
		Income	Shares		Share		Income	Shares		Share
Basic EPS	$	67.1	115.0	$	0.58	$	86.4	115.8	$	0.75
Effect of Dilutive
Securities:
Warrants			0.3					0.3
Stock options, performance and
restricted shares			0.2					0.2
Diluted EPS	$	67.1	115.5	$	0.58	$	86.4	116.3	$	0.74

$ and shares in millions except			Nine Months Ended September 30,
per share amounts			2011					2010
					Per					Per
		Income	Shares		Share		Income	Shares		Share
Basic EPS	$	142.3	114.4	$	1.24	$	218.8	115.7	$	1.89
Effect of Dilutive
Securities:
Warrants			0.4					0.3
Stock options, performance and
restricted shares			0.2					0.2
Diluted EPS	$	142.3	115.0	$	1.24	$	218.8	116.2	$	1.88

DP&L [Member]

EPS

12. EPS

Basic EPS is based on the weighted-average number of DPL common shares outstanding during the year. Diluted EPS is based on the weighted-average number of DPL common and common-equivalent shares outstanding during the year, except in periods where the inclusion of such common-equivalent shares is anti-dilutive. Excluded from outstanding shares for these weighted-average computations are shares held by DP&L's Master Trust Plan for deferred compensation and unreleased shares held by

DPL's ESOP.

The common-equivalent shares excluded from the calculation of diluted EPS, because they were anti-dilutive, were not material for the three and nine months ended September 30, 2011 and 2010. These shares may be dilutive in the future.

The following illustrates the reconciliation of the numerators and denominators of the basic and diluted EPS computations:

$ and shares in millions except			Three Months Ended September 30,
per share amounts			2011					2010
					Per					Per
		Income	Shares		Share		Income	Shares		Share
Basic EPS	$	67.1	115.0	$	0.58	$	86.4	115.8	$	0.75
Effect of Dilutive
Securities:
Warrants			0.3					0.3
Stock options, performance and
restricted shares			0.2					0.2
Diluted EPS	$	67.1	115.5	$	0.58	$	86.4	116.3	$	0.74

$ and shares in millions except			Nine Months Ended September 30,
per share amounts			2011					2010
					Per					Per
		Income	Shares		Share		Income	Shares		Share
Basic EPS	$	142.3	114.4	$	1.24	$	218.8	115.7	$	1.89
Effect of Dilutive
Securities:
Warrants			0.4					0.3
Stock options, performance and
restricted shares			0.2					0.2
Diluted EPS	$	142.3	115.0	$	1.24	$	218.8	116.2	$	1.88