DPL Closes Sale of Natural Gas Business Unit to Vectren -- Proceeds to Support Merchant Generation Expansion --.Business Editors, Energy Writers DAYTON, Ohio--(BUSINESS WIRE)--Oct. 31, 2000 (NYSE NYSE See: New York Stock Exchange :DPL (Digital PowerLine) An earlier technology for transmitting a 1 Mbps data signal over electric power lines from Nortel Networks. It was developed in the late 1990s, but later abandoned due to implementation difficulties. See broadband over power lines. ) - DPL Inc. today announced the closing of the sale of its retail natural gas business unit to Vectren Corporation, an Indiana-based energy company, for $425 million in cash. "The completion of the sale of the gas business unit supports the expansion of our merchant generation business," said Allen Hill, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of DPL Inc. "Over the past several years we have focused on preparing for the changes deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. brings to our industry. With the sale of the gas business, we continue to focus on our core businesses, growing them in this new competitive environment." To date DPL has completed or announced the addition of approximately 800 megawatts of peaking capacity, representing an investment of $270 million. "Our generation expansion plans are on track, and we expect to have 5,000 megawatts of capacity in operation by the summer of 2003," added Hill. In addition to helping fund its generation expansion, the after-tax proceeds will be used to continue DPL's stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. program and reduce short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. . DPL Inc. is a diversified regional merchant energy company. DPL's principal subsidiaries include DPL Energy and The Dayton Power & Light Company (DP&L). DPL Energy operates 3,500 megawatts of generation capacity and markets wholesale energy throughout the eastern half of the United States. DP&L provides electric service to 500,000 retail customers in West Central Ohio. DPL Inc., through its subsidiaries, has ranked among the top ten energy companies in generation efficiency and productivity for the last ten years. Further information on DPL Inc. can be found at www.dplinc.com. This press release may contain certain forward-looking statements regarding plans and expectations for the future. Investors are cautioned that actual outcomes may vary materially from those projected due to various factors beyond DPL's control. Such matters are described in the Company's 1999 Annual Report and Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Form 10-Q for the quarter ended June 30, 2000. |
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