DPL Announces Phase Two Combustion Turbine Expansion.

DAYTON, Ohio--(BUSINESS WIRE)--Aug. 30, 1999--

DPL Inc. (NYSE:DPL)

today announced another major expansion of its generating business unit. In Phase Two of its peaking capacity expansion, DPL has contracted with Pratt & Whitney/Turbo Power and Marine (P&W) to purchase four natural gas fired combustion peaking units. These units are rated at 56 megawatts (MW) each for a total of 225 MW and provide enough electricity to serve 220,000 households.

Total Phase Two capital expenditures represent an investment of $80 million. It is expected that the 225 MW of P&W capacity will be available and online for the summer of 2000. DPL owns the sites, has transmission access and is situated with an array of natural gas supply options. Permitting of the identified sites is already underway.

This expansion comes on the heels of DPL's completion of its first phase of peaking capacity additions. At a cost of $75 million, three General Electric units added a total of 250 MW in June of this year, and provided a comfortable margin to earnings during the extremely hot summer weather.

The addition of 475 MW of peaking capacity represents a 16% increase, bringing DPL's total generating capacity to 3500 MW.

The combination of low cost natural gas fueled electric capacity with existing low cost base-load coal fired capacity results in a profitable regional generating enterprise. "This peaking capacity is immediately accretive to earnings," said Allen Hill, President and CEO of DPL Inc., "We make what we sell, we don't trade and we don't speculate."

Additions of this type will continue to be attractive with the changes in the U.S. energy business and the Midwest markets opening. DPL will continue expanding its regional electric generating business and expects to announce Phase Three shortly.

DPL's target market is the East Central Area Reliability Coordination Agreement (ECAR) region. Last month the ECAR region set a new peak demand of 96,148 megawatts, taking the area reserve margin below 10% and setting unprecedented high prices in the wholesale market.

DPL Inc. is a diversified energy company supplying electric and gas energy services to 500,000 electric customers and 300,000 gas customers in the Midwest through its subsidiary, The Dayton Power and Light Company.