-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, M+GuCGmduofj9IpGJCkci+djBqXTf1sRcT0+LG9FK3fNYte2Z11N9+SSdcyoXB/H uolWr5E4uKracNE3jWkpug== 0000787250-94-000011.txt : 19941116 0000787250-94-000011.hdr.sgml : 19941116 ACCESSION NUMBER: 0000787250-94-000011 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941114 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DPL INC CENTRAL INDEX KEY: 0000787250 STANDARD INDUSTRIAL CLASSIFICATION: 4931 IRS NUMBER: 311163136 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09052 FILM NUMBER: 94559926 BUSINESS ADDRESS: STREET 1: PO BOX 8825 CITY: DAYTON STATE: OH ZIP: 45401 BUSINESS PHONE: 5132246000 MAIL ADDRESS: STREET 1: PO BOX 8825 CITY: DAYTON STATE: OH ZIP: 45401 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1994 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ------ ------ Commission File Number 1-9052 ------ DPL INC. (Exact name of registrant as specified in its charter) OHIO 31-1163136 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Courthouse Plaza Southwest Dayton, Ohio 45402 (Address of principal executive offices) (513) 224-6000 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- Indicate the number of shares of the issuer's classes of common stock, as of the latest practicable date. Common Stock, $.01 par value and Preferred Share Purchase Rights 107,393,123 - --------------------------- ---------------------------------- (Title of each class) (Outstanding at September 30, 1994) DPL INC. INDEX Page No. -------- Part I - Financial Information Item 1. Financial Statements Consolidated Statement of Results of Operations 1 Consolidated Statement of Cash Flows 2 Consolidated Balance Sheet 3 Notes to Consolidated Financial Statements 5 Operating Statistics 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Part II - Other Information 12 Signatures 14 i
CONSOLIDATED STATEMENT OF RESULTS OF OPERATIONS DPL Inc. Three Months Ended Nine Months Ended September 30 September 30 1994 1993 1994 1993 ---- ---- ---- ---- --thousands-- --thousands-- INCOME Utility service revenues . . . . . . . . . . . . . . . $263,321 $261,952 $892,675 $845,800 Interest and other income . . . . . . . . . . . . . . 8,930 4,556 24,078 22,045 -------- -------- -------- -------- Total Income . . . . . . . . . . . . . . . . . . 272,251 266,508 916,753 867,845 EXPENSES Fuel used in electric and steam production . . . . . . 54,819 59,761 168,249 169,983 Gas purchased for resale . . . . . . . . . . . . . . . 10,597 11,623 107,383 102,078 Operating and administrative . . . . . . . . . . . . . 38,001 40,011 116,936 132,680 Maintenance of equipment and facilities . . . . . . . 21,996 24,795 56,520 54,332 Depreciation and amortization . . . . . . . . . . . . 28,683 27,970 85,824 83,055 General taxes . . . . . . . . . . . . . . . . . . . . 30,123 27,811 88,128 83,068 Interest expense . . . . . . . . . . . . . . . . . . . 23,285 23,353 69,960 72,431 Amortization (deferral) of regulatory assets, net . . 2,749 (6,557) 8,061 (19,025) Preferred dividend requirements of The Dayton Power and Light Company . . . . . . . . 253 2,119 4,484 6,588 -------- -------- -------- -------- Total Expenses . . . . . . . . . . . . . . . . . 210,506 210,886 705,545 685,190 -------- -------- -------- ------- Income Before Income Taxes . . . . . . . . . . . . . . 61,745 55,622 211,208 182,655 Income Taxes . . . . . . . . . . . . . . . . . . . . . 24,846 22,496 84,055 64,960 -------- -------- -------- -------- Net Income . . . . . . . . . . . . . . . . . . . . . . $ 36,899 $ 33,126 $127,153 $117,695 ======== ======== ======== ======== Average Number of Common Shares Outstanding (000)(a) . . . . . . . . . . . . . . . 101,418 97,703 100,207 97,738 Earnings Per Share of Common Stock (a) . . . . . . . . $ 0.36 $ 0.33 $ 1.27 $ 1.20 Dividends Paid Per Share of Common Stock . . . . . . . $ 0.295 $ 0.28 $ 0.885 $ 0.84 (a) Average shares and earnings per share for 1993 were restated to reflect adoption of a new Financial Accounting Standards Board-approved Statement of Position on accounting for Employee Stock Ownership Plans. See Notes to Consolidated Financial Statements. These interim statements are unaudited.
1
CONSOLIDATED STATEMENT OF CASH FLOWS DPL Inc. Nine Months Ended September 30 ------------------ 1994 1993 ---- ---- --thousands-- Operating Activities - -------------------- Cash received from utility customers . . . . . . . . . . . . . . . . . . $ 933,992 $ 871,008 Other operating cash receipts . . . . . . . . . . . . . . . . . . . . . 18,947 22,522 Cash paid for: Fuel and purchased power . . . . . . . . . . . . . . . . . . . . . . . (181,920) (161,291) Purchased gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . (119,750) (117,172) Operation and maintenance labor . . . . . . . . . . . . . . . . . . . (67,146) (59,657) Nonlabor operating expenditures . . . . . . . . . . . . . . . . . . . (119,945) (167,544) Interest (net of amounts capitalized) . . . . . . . . . . . . . . . . (71,017) (60,889) Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (76,853) (36,932) Property, excise and payroll taxes . . . . . . . . . . . . . . . . . . (93,670) (90,009) --------- --------- Net cash provided by operating activities . . . . . . . . . . . . . . . 222,638 200,036 --------- --------- Investing Activities - -------------------- Property expenditures and other . . . . . . . . . . . . . . . . . . . . (71,894) (84,008) Proceeds from redemption of investment . . . . . . . . . . . . . . . . . 19,477 - --------- --------- Net cash used for investing activities . . . . . . . . . . . . . . . . . (52,417) (84,008) Financing Activities - -------------------- Dividends paid on common stock . . . . . . . . . . . . . . . . . . . . . (88,435) (86,020) Retirement of preferred stock . . . . . . . . . . . . . . . . . . . . . (94,249) (8,500) Retirement of short-term debt . . . . . . . . . . . . . . . . . . . . . (25,000) (146,500) Retirement of long-term debt . . . . . . . . . . . . . . . . . . . . . . (9,177) (439,166) Issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . - 536,000 Issuance of common stock . . . . . . . . . . . . . . . . . . . . . . . . 76,826 - --------- --------- Net cash used for financing activities . . . . . . . . . . . . . . . . . (140,035) (144,186) --------- --------- Net increase (decrease) in cash and temporary cash investments . . . . . 30,186 (28,158) Cash and temporary cash investments at beginning of period . . . . . . . . 81,640 108,102 --------- --------- Cash and temporary cash investments at end of period . . . . . . . . . . . $ 111,826 $ 79,944 ========= =========
See Notes to Consolidated Financial Statements. These interim statements are unaudited. 2
CONSOLIDATED BALANCE SHEET DPL Inc. At At September 30, December 31, 1994 1993 ------------- ------------ --thousands-- ASSETS Utility property and plant. . . . . . . . . . . . . . . . . . . . . . . . $3,228,613 $3,204,690 Other property and plant . . . . . . . . . . . . . . . . . . . . . . . . 62,119 55,474 Construction work in progress . . . . . . . . . . . . . . . . . . . . . . 60,378 35,824 ---------- ---------- 3,351,110 3,295,988 Less-- Accumulated depreciation and amortization . . . . . . . . . . . . . . . (1,049,990) (977,201) ---------- ---------- Net property and plant . . . . . . . . . . . . . . . . . . . . . . . 2,301,120 2,318,787 ---------- ---------- Current Assets Cash and temporary cash investments, at cost. . . . . . . . . . . . . . . 111,826 81,640 Accounts receivable, less provision for uncollectible accounts . . . . . 79,295 135,025 Inventories, at average cost . . . . . . . . . . . . . . . . . . . . . . 89,600 86,386 Taxes applicable to subsequent years . . . . . . . . . . . . . . . . . . 45,292 72,751 Gas costs recoverable . . . . . . . . . . . . . . . . . . . . . . . . . . - 23,052 Prepayments and other . . . . . . . . . . . . . . . . . . . . . . . . . . 8,624 41,736 ---------- ---------- Total current assets . . . . . . . . . . . . . . . . . . . . . . . 334,637 440,590 ---------- ---------- Other Assets Regulatory assets (Note 3) . . . . . . . . . . . . . . . . . . . . . . . 177,847 172,832 Income taxes recoverable through future revenues . . . . . . . . . . . . 254,901 269,144 Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,142 103,677 ---------- ---------- Total other assets. . . . . . . . . . . . . . . . . . . . . . . . . 541,890 545,653 ---------- ---------- Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,177,647 $3,305,030 ========== ==========
See Notes to Consolidated Financial Statements. These interim statements are unaudited. 3
CONSOLIDATED BALANCE SHEET (continued) DPL Inc. At At September 30, December 31, 1994 1993 ------------- ------------ --thousands-- CAPITALIZATION AND LIABILITIES Capitalization Common shareholders' equity-- Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,074 $ 1,035 Other paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . 785,178 708,151 Common stock held by employee plans . . . . . . . . . . . . . . . . . . (109,643) (105,217) Earnings reinvested in the business . . . . . . . . . . . . . . . . . . 431,462 423,363 ---------- ---------- Total common shareholders' equity . . . . . . . . . . . . . . . . . . 1,108,071 1,027,332 Preferred stock of The Dayton Power and Light Company-- Without mandatory redemption provisions . . . . . . . . . . . . . . . . 22,851 82,850 With mandatory redemption provisions . . . . . . . . . . . . . . . . . - 30,000 Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,093,761 1,102,889 ---------- ---------- Total capitalization . . . . . . . . . . . . . . . . . . . . . . . 2,224,683 2,243,071 ---------- ---------- Current Liabilities Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,602 113,075 Short-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 25,000 Current portion of first mortgage bonds and preferred stock . . . . . . . 4,730 8,980 Accrued taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,624 114,389 Accrued interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,067 24,338 Gas cost refundable . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,961 - Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,794 51,434 ---------- ---------- Total current liabilities . . . . . . . . . . . . . . . . . . . . . 213,778 337,216 ---------- ---------- Deferred Credits and Other Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513,042 519,319 Unamortized investment tax credit . . . . . . . . . . . . . . . . . . . . 82,249 85,139 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143,895 120,285 ---------- ---------- Total deferred credits and other . . . . . . . . . . . . . . . . . 739,186 724,743 ---------- ---------- Total Capitalization and Liabilities . . . . . . . . . . . . . . . . . . $3,177,647 $3,305,030 ========== ==========
See Notes to Consolidated Financial Statements. These interim statements are unaudited. 4 Notes to Consolidated Financial Statements 1. On September 1, 1994, 236,435 shares of common stock valued at $4.7 million were issued to participants in the dividend reinvestment plan. 2. During September 1994, DPL Inc. purchased 37,100 shares of its common stock for $0.7 million in open market transactions. DPL Inc. may purchase additional shares from time to time depending on market conditions. 3. Regulatory assets on the balance sheet consist of:
September 30, December 31, 1994 1993 ------------- ------------ --millions-- Phase-in $ 78.6 $ 85.8 Demand-side management 37.6 23.3 Deferred interest-Zimmer 61.6 63.7 ------ ------ Total $177.8 $172.8 ====== ======
4. Statement of Cash Flow Reconciliation Reconciliation of Net Income to Net Cash Provided by Operating Activities:
Nine Months Ended September 30 1994 1993 ---- ---- --millions-- Net Income . . . . . . . . . . . . . . . . . $127.2 $117.7 Adjustments for non-cash items: Depreciation and amortization . . . . . . 85.8 83.1 Deferred income taxes . . . . . . . . . . (0.3) 13.5 Taxes applicable to subsequent years . . . 81.3 76.9 Amortization (deferral) of regulatory assets . . . . . . . . . . . . . . . . . 8.1 (19.0) Changes in Working Capital: Accounts receivable and unbilled revenue . 55.8 36.0 Accounts payable . . . . . . . . . . . . . (62.6) (24.0) Other . . . . . . . . . . . . . . . . . . (62.0) (57.5) Other operating activities . . . . . . . . . (10.7) (26.7) ------ ------ Net cash provided by operating activities . $222.6 $200.0 ====== ======
5 5. Reclassifications have been made in certain prior years' amounts to conform to the current reporting presentation of DPL Inc. 6. The consolidated financial statements in this report have been prepared by DPL Inc., without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in DPL Inc.'s 1993 Annual Report on Form 10-K. The information included in this Form 10-Q reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results of operations for the periods presented. Any adjustments are of a normal recurring nature. 6
OPERATING STATISTICS The Dayton Power and Light Company Three Months Ended Nine Months Ended September 30 September 30 ------------------ ----------------- 1994 1993 1994 1993 ---- ---- ---- ---- ELECTRIC Sales (millions of kWh)-- Residential . . . . . . . . . . . . . . . . . 1,093 1,184 3,489 3,481 Commercial . . . . . . . . . . . . . . . . . 835 841 2,311 2,265 Industrial . . . . . . . . . . . . . . . . . 1,134 1,062 3,275 3,041 Other . . . . . . . . . . . . . . . . . . . . 620 837 1,781 2,361 ------- ------- ------- ------- Total . . . . . . . . . . . . . . . . . . . 3,682 3,924 10,856 11,148 Revenues (thousands of dollars)-- Residential . . . . . . . . . . . . . . . . . 99,754 100,295 302,531 284,022 Commercial . . . . . . . . . . . . . . . . . 56,779 53,484 163,016 149,130 Industrial . . . . . . . . . . . . . . . . . 58,058 53,528 170,689 153,497 Other . . . . . . . . . . . . . . . . . . . . 28,143 32,628 83,106 93,117 ------- ------- ------- ------- Total . . . . . . . . . . . . . . . . . . . 242,734 239,935 719,342 679,766 Other Electric Statistics-- Average price per kWh-- retail and wholesale customers (cents) . . 6.52 6.06 6.56 6.03 Fuel cost per net kWh generated (cents) . . . . . . . . . . . . . 1.36 1.42 1.41 1.41 Electric customers at end of period . . . . . 467,872 462,426 467,872 462,426 Average kWh use per residential customer . . 2,613 2,858 8,351 8,409 Peak demand--maximum one hour use (mw), (net) . . . . . . . . . 2,758 2,765 2,824 2,765
7
OPERATING STATISTICS (continued) The Dayton Power and Light Company Three Months Ended Nine Months Ended September 30 September 30 ------------------ ----------------- 1994 1993 1994 1993 ---- ---- ---- ---- GAS Sales (thousands of mcf)-- Residential . . . . . . . . . . . . . . . . . 1,756 1,819 20,006 19,230 Commercial . . . . . . . . . . . . . . . . . 674 706 5,910 5,693 Industrial . . . . . . . . . . . . . . . . . 196 256 2,431 2,211 Other . . . . . . . . . . . . . . . . . . . . 307 366 2,093 2,170 Transportation gas delivered . . . . . . . . 2,754 2,333 11,216 9,626 ------ ------ ------ ------ Total . . . . . . . . . . . . . . . . . . . 5,687 5,480 41,656 38,930 Revenues (thousands of dollars)-- Residential . . . . . . . . . . . . . . . . . 12,369 13,019 111,511 106,100 Commercial . . . . . . . . . . . . . . . . . 3,783 4,029 30,646 29,209 Industrial . . . . . . . . . . . . . . . . . 929 1,332 11,527 10,557 Other . . . . . . . . . . . . . . . . . . . . 3,361 3,594 16,056 16,934 ------- ------- ------- ------- Total . . . . . . . . . . . . . . . . . . . 20,442 21,974 169,740 162,800 Other Gas Statistics-- Average price per mcf-- retail customers (dollars) . . . . . . . . 6.32 6.38 5.38 5.32 Gas customers at end of period . . . . . . . 287,524 284,265 287,524 284,265 DEGREE DAYS (based on calendar month)-- Heating . . . . . . . . . . . . . . . . . . . 92 131 3,886 3,709 Cooling . . . . . . . . . . . . . . . . . . . 592 707 942 933
8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations DPL Inc. reported earnings per share of $0.36 for the third quarter of 1994, as compared to $0.33 per share in the same period a year ago. For the nine months ended September 30, 1994, earnings were $1.27 per share, up seven cents from $1.20 per share in 1993. The West Central Ohio economy continues to drive strong energy sales. Retail electric sales have increased 3% year-to-date over last year, boosted by a 5% gain in electricity sales to business customers in the same period. Total natural gas sales have increased 7% in 1994 due to strong economic growth and cold weather early in the year. Ongoing cost control measures, including savings from refinancing activities, contributed to this financial performance. Earnings per share for 1993 were restated from $0.32 and $1.15 for the three and nine months ended September 30, respectively, to reflect adoption of a new Financial Accounting Standards Board-approved Statement of Position on Accounting for Employee Stock Ownership Plans. An analysis of the financial condition and results of operation for the third quarter and nine months ended September 30, 1994 and 1993 is discussed below. Financial Condition - ------------------- Construction plans are subject to continuing review and are expected to be revised in light of changes in financial and economic conditions, load forecasts, legislative and regulatory developments and changing environmental standards, among other factors. DP&L's ability to complete its capital projects and the reliability of future service will be affected by its financial condition, the availability of external funds at reasonable cost and adequate and timely rate increases. As of September 30, 1994, DPL Inc.'s cash and temporary cash investment balance was $111.8 million. DP&L has available to it $97 million in short-term informal lines of credit. As of September 30, 1994, DP&L had no short-term debt outstanding. DPL Inc. and its subsidiaries have $200 million available through a Revolving Credit Agreement. As of September 30, 1994, DPL Inc. had no outstanding borrowings under this Credit Agreement. DP&L has authority from the PUCO to issue short term debt up to $200 million with a maximum debt limit of $300 million including loans from DPL Inc. under the terms of the Credit Agreement. 9 DPL Inc. anticipates that it has sufficient capacity to issue First Mortgage Bonds of DP&L to satisfy its requirements in connection with the financing of its construction and refunding programs during the five year period 1994-1998. Results of Operations - --------------------- Electric revenues increased $2.8 million and $39.6 million, respectively, for the third quarter and nine months ended September 30, 1994, over the same periods in 1993. Retail electric sales increased 3% year-to-date reflecting favorable weather conditions and the continued strength of the West Central Ohio economy. The electric revenue increase also includes the effects of the last phase of the electric rate increase which was effective January 1, 1994. Fuel used in electric and steam production decreased $4.9 million for the quarter and $1.7 million year-to-date from the same periods in 1993, primarily related to decreased sales to other utilities and lower per unit fuel costs. Gas revenues and gas purchased for resale decreased $1.5 million and $1.0 million, respectively, from the corresponding quarter last year due to mild fall temperatures. Year-to-date gas revenues and gas purchased for resale increased $6.9 million and $5.3 million, respectively, over the same period in 1993. The higher amounts are due to a total gas sales increase of 7% and a higher gas cost recovery factor. The increase in interest and other income in the third quarter and first nine months of 1994 over 1993 was related to higher returns on investments partially offset in the nine months by a decrease in interest associated with federal income tax refunds. Operating and administrative expenses decreased $15.7 million year-to-date from the same period a year ago. Bond redemption costs of $22.8 million were incurred in the first half of 1993. Benefits and claims costs increased in 1994 versus 1993. Maintenance expenses decreased $2.8 million and increased $2.2 million, respectively, for the third quarter and year-to-date over the corresponding periods in 1993. The increase in electric generating station maintenance activities earlier in the year was partially offset by a decrease in the third quarter. 10 General taxes expense increased $2.3 million during the third quarter and $5.1 million year-to-date over the same periods a year ago. The increase is primarily related to higher gross receipts taxes due to higher revenues and higher property taxes. Interest expense decreased $2.5 million year-to-date in 1994 due to the issuance of First Mortgage Bonds in 1993 overlapping the related debt series which were subsequently redeemed in 1993 and lower interest rates on long-term debt obtained through the refinancings. Regulatory assets capitalized in years prior to 1994 are being recovered over a seven year period commencing in 1994. Income taxes increased $2.4 million and $19.1 million, respectively, for the third quarter and year-to-date 1994, over the corresponding periods in 1993. The higher amounts result from a corresponding increase in taxable income over the same periods in the prior year. 11 Part II. Other Information --------------------------- Item 5. Other Information. Electric Operations and Fuel Supply - ----------------------------------- A merger agreement between The Cincinnati Gas & Electric Company ("CG&E") and PSI Resources, Inc. has been pending. DP&L intervened in the merger proceedings at the Federal Energy Regulatory Commission ("FERC") in January 1993 and at the Securities and Exchange Commission ("SEC") in June 1994 to ensure that the operations of its commonly owned generating units will not be adversely impacted by the merger. The FERC approved the merger on October 3, 1994. On October 14, 1994, DP&L entered into a settlement agreement with CG&E, PSI and CINergy Corp. which resolved DP&L's concerns with the proposed merger. As part of the settlement, DP&L withdrew from the SEC proceeding and has committed not to appeal the FERC approval. The SEC approved the merger on October 21, 1994. Gas Operations and Gas Supply - ----------------------------- 1. In January 1994, DP&L, the Staff of the Public Utilities Commission of Ohio ("PUCO") and the Office of the Ohio Consumers' Counsel submitted to the PUCO an agreement which resolves issues relating to the recovery of Order 636 "transition costs" to be billed to DP&L by FERC natural gas interstate pipeline companies. The agreement, which was approved by the PUCO on July 14, 1994, provides for the full recovery of these transition costs from DP&L customers. The interstate pipelines will file with the FERC for authority to recover these transition costs, the exact magnitude of which has not been established. On October 6, 1994, the PUCO authorized DP&L's plan to use pipeline supplier refunds to partially offset transition cost billings to natural gas customers. This approval will help stabilize gas costs while continuing to ensure DP&L's full recovery of transition costs. 12 Environmental Considerations - ---------------------------- Air Quality - ----------- In December 1988, the United States Environmental Protection Agency ("U.S. EPA") notified the State of Ohio that the portion of its State Implementation Plan ("SIP") dealing with sulfur dioxide emission limitations for Hamilton County (in southwestern Ohio) was deficient and required the Ohio Environmental Protection Agency ("Ohio EPA") to develop a new SIP within 18 months. The notice affected industrial and utility sources and could have required significant reductions in sulfur dioxide emission limitations at CG&E's Miami Fort Units 7 and 8 which are jointly owned with DP&L. In October 1991, the Ohio EPA adopted new SO2 regulations for Hamilton County. These regulations did not change the preexisting requirements for Miami Fort Units 7 and 8. On August 23, 1994, the U.S. EPA provided notice in the Federal Register of its final ruling that the new regulations for the Ohio SIP for Hamilton County are conditionally approved, and became effective September 22, 1994. Item 6. Exhibits and Reports on Form 8-K. (b) Reports on Form 8-K ------------------- No reports on Form 8-K were filed by DPL Inc. during the quarter ended September 30, 1994. 13 SIGNATURES 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 thereunto duly authorized. DPL INC. ---------------------------------- (Registrant) Date: November 14, 1994 Stephen F. Koziar - ------------------------ ---------------------------------- Stephen F. Koziar Group Vice President Date: November 14, 1994 Thomas M. Jenkins - ------------------------ ---------------------------------- Thomas M. Jenkins Group Vice President and Treasurer (Principal Financial Officer) 14 EX-27 2 FINANCIAL DATA SCHEDULE
UT 1000 9-MOS DEC-31-1994 SEP-30-1994 PER-BOOK 2239001 62119 334637 432748 109142 3177647 1074 675535 431462 1108071 0 22851 1093761 0 0 0 4730 0 0 0 948234 3177647 892675 84055 631101 715156 177519 24078 201597 69960 131637 4484 127153 88435 71017 222638 1.27 1.27
-----END PRIVACY-ENHANCED MESSAGE-----