Ownership of Coal-fired Facilities

9 Months Ended

Sep. 30, 2011

Ownership of Coal-fired Facilities

4. Ownership of Coal-fired Facilities

DP&L with certain other Ohio utilities has undivided ownership interests in seven coal-fired electric generating facilities and numerous transmission facilities. Certain expenses, primarily fuel costs for the generating units, are allocated to the owners based on their energy usage. The remaining expenses, investments in fuel inventory, plant materials and operating supplies, and capital additions are allocated to the owners in accordance with their respective ownership interests. As of September 30, 2011, we had $42 million of construction work in process at such facilities. DP&L's share of the operating cost of such facilities is included within the corresponding line in the Condensed Statements of Results of Operations and DP&L's share of the investment in the facilities is included within Total net property, plant and equipment in the Condensed Balance Sheets.

DP&L's undivided ownership interest in such facilities as well as our wholly-owned coal fired Hutchings plant at September 30, 2011, is as follows:

	DP&L Share						DP&L Investment
										SCR and FGD
										Equipment
		Summer						Construction		Installed
		Production Gross Plant Accumulated							Work in	and In
	Ownership	Capacity		In Service		Depreciation			Process	Service
	(%)	(MW)		($ in millions)		($ in millions)		($ in millions)		(Yes/No)
Production Units:
Beckjord Unit 6	50.0	207	$	76		$	57	$	-	No
Conesville Unit 4	16.5	129			119		31		5	Yes
East Bend Station	31.0	186			201		132		-	Yes
Killen Station	67.0	402			617		298		2	Yes
Miami Fort Units 7 and 8	36.0	368			366		137		2	Yes
Stuart Station	35.0	808			719		275		15	Yes
Zimmer Station	28.1	365			1,060		624		18	Yes
Transmission (at varying percentages)		-			91		57		-
Total		2,465	$	3,249		$	1,611	$	42
Wholly-owned production unit:
Hutchings Station	100.0	390		$	124	$	114	$	1	No

On July 15, 2011, Duke Energy, a co-owner at the Beckjord Unit 6 facility,  filed their Long-term Forecast Report with the PUCO. The plan indicated that Duke Energy plans to cease production at the Beckjord Station, including our jointly-owned Unit 6, in December 2014. We are depreciating Unit 6 through December 2014 and do not believe that any additional accruals or impairment charges are needed as a result of this decision. We are considering options for Hutchings Station, but have not yet made a final decision.  We do not believe that any accruals or impairment charges are needed related to the Hutchings Station.

DP&L [Member]

Ownership of Coal-fired Facilities

4. Ownership of Coal-fired Facilities

DP&L with certain other Ohio utilities has undivided ownership interests in seven coal-fired electric generating facilities and numerous transmission facilities. Certain expenses, primarily fuel costs for the generating units, are allocated to the owners based on their energy usage. The remaining expenses, investments in fuel inventory, plant materials and operating supplies, and capital additions are allocated to the owners in accordance with their respective ownership interests. As of September 30, 2011, we had $42 million of construction work in process at such facilities. DP&L's share of the operating cost of such facilities is included within the corresponding line in the Condensed Statements of Results of Operations and DP&L's share of the investment in the facilities is included within Total net property, plant and equipment in the Condensed Balance Sheets.

DP&L's undivided ownership interest in such facilities as well as our wholly-owned coal fired Hutchings plant at September 30, 2011, is as follows:

	DP&L Share						DP&L Investment
										SCR and FGD
										Equipment
		Summer						Construction		Installed
		Production Gross Plant Accumulated							Work in	and In
	Ownership	Capacity		In Service		Depreciation			Process	Service
	(%)	(MW)		($ in millions)		($ in millions)		($ in millions)		(Yes/No)
Production Units:
Beckjord Unit 6	50.0	207	$	76		$	57	$	-	No
Conesville Unit 4	16.5	129			119		31		5	Yes
East Bend Station	31.0	186			201		132		-	Yes
Killen Station	67.0	402			617		298		2	Yes
Miami Fort Units 7 and 8	36.0	368			366		137		2	Yes
Stuart Station	35.0	808			719		275		15	Yes
Zimmer Station	28.1	365			1,060		624		18	Yes
Transmission (at varying percentages)		-			91		57		-
Total		2,465	$	3,249		$	1,611	$	42
Wholly-owned production unit:
Hutchings Station	100.0	390		$	124	$	114	$	1	No

On July 15, 2011, Duke Energy, a co-owner at the Beckjord Unit 6 facility, filed their Long-term Forecast Report with the PUCO. The plan indicated that Duke Energy plans to cease production at the Beckjord Station, including our jointly-owned Unit 6, in December 2014. We are depreciating Unit 6 through December 2014 and do not believe that any additional accruals or impairment charges are needed as a result of this decision. We are considering options for Hutchings Station, but have not yet made a final decision. We do not believe that any accruals or impairment charges are needed related to the Hutchings Station.