DPL Files Transition Plan -- Customers to Save $45 Million.

Business Editors

DAYTON, Ohio--(BUSINESS WIRE)--Dec. 20, 1999

Today The Dayton Power and Light Company (DP&L) filed its Consumer Choice transition plan with The Public Utilities Commission of Ohio (PUCO). As filed, the plan includes approximately $45 million of savings for DP&L residential customers.

Under this plan, all prices, including a 5% reduction on the generation price for residential customers, will be capped until December 31, 2004. "For DP&L residential customers, this translates into an 11-year period without a price increase," said Allen Hill, President and CEO. "And, with the rate reduction, prices will actually be lower in 2004 than they were back in 1994."

Starting January 1, 2001, customers can stay with DP&L, or if they choose, buy their electricity from an alternative energy supplier. DP&L will continue to deliver all electric power to 500,000 residences and businesses over wires owned and serviced by DP&L.

The legislation includes recovery of transition costs associated with customers moving from a regulated to a competitive market. These charges are generally related to government policies, practices and mandates. For the most part these costs are already included in current prices. DP&L's plan proposes the recovery of $441 million in after-tax transition costs.

The DP&L plan also provides for a consumer education program. DP&L will develop both a statewide and local education program to help consumers better understand their choices.

"DP&L has been providing reliable, high quality energy services to customers in West Central Ohio for over 90 years. We have prepared for customer choice by consistently producing and delivering low cost power," said Hill. "Our industry-leading track record of productivity and efficiency will continue to allow us to offer our customers reliable power at competitive market prices. We have worked hard over the last five years to position DP&L as a low cost provider of energy services and remain committed to providing our customers with a top quality competitively priced product."

Within 90 days, the PUCO staff will issue its preliminary comments and recommendation on DP&L's plan. A final PUCO order will be issued within 275 days of the initial filing date.

DPL Inc. (NYSE:DPL) is a diversified energy company supplying energy services to customers in the Midwest through its subsidiaries, The Dayton Power and Light Company and DPL Energy.