DPL Announces Agreement To Sell Greenville Generation Facility

Dayton, OH — DPL Inc. 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.

SOURCE: DPL