Exhibit 99.1
FOR IMMEDIATE
RELEASE
CONTACT: 937-224-5940
DPL ANNOUNCES AGREEMENT TO
SELL
GREENVILLE GENERATION
FACILITY
Sale to Yield $49.2 Million in
Cash
DAYTON , Ohio, December 21, 2006 — DPL Inc.
(NYSE: DPL) today announced that its subsidiary, DPL Energy, LLC,
has reached an agreement to sell its Greenville Station peaking
generation facility to Buckeye Power, Inc. for $49.2 million in
cash.
Greenville Station consists of four
natural gas peaking units with a total summer capacity of
approximately 200 megawatts. The plant is located in
Greenville, Ohio and began operating commercially in
2000.
“Along with our previously
announced sale of Darby Station, we have aligned our generation
capacity with our current generation needs,” stated Paul
Barbas, DPL President and Chief Executive Officer.
Earlier this year, DPL had stated
that it was considering bids on three sites — Darby,
Greenville and Montpelier. The Company has determined that it
will retain ownership of Montpelier Station in Indiana based on
current generation needs and market conditions. DPL recently
announced an agreement to sell the 450 megawatt Darby Station
peaking generation facility to AEP for $102 million in
cash.
Once the Darby and Greenville
transactions close, DPL will own approximately 950 megawatts of
peaking generation capacity and 2,800 megawatts of coal-fired
generation.
The cash proceeds from both the
Darby and Greenville sales will be used for general corporate
purposes, including debt reduction and the funding of DPL’s
environmental investment program. The transactions are
expected to close in the first half of 2007 and are subject to
regulatory approvals and standard closing conditions.
Greenville Station was completed at
an approximate cost of $90 million and has a net book value of
approximately $66 million. During the fourth quarter of 2006,
DPL expects to record a pretax impairment charge ranging from $17
million to $19 million for the impairment of Greenville Station
peaking generation assets.
About DPL
DPL Inc. (NYSE:DPL) is a regional
electric energy and utility company. DPL’s principal
subsidiaries include The Dayton Power and Light Company (DP&L);
DPL Energy, LLC (DPLE); and DPL Energy Resources, Inc.
(DPLER). DP&L, a regulated electric utility, provides
service to over 500,000 retail customers in West Central Ohio; DPLE
engages in the operation of merchant peaking
