<PAGE>
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)
<PAGE>
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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
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<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF RESULTS OF OPERATIONS
DPL Inc.
Three Months Ended Nine Months Ended
September 30 September 30
1994 1993 1994 1993
---- ---- ---- ----
--thousands-- --thousands--
<S> <C> <C> <C> <C>
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.
</TABLE>
1
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF CASH FLOWS
DPL Inc.
Nine Months Ended
September 30
------------------
1994 1993
---- ----
--thousands--
<S> <C> <C>
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
========= =========
</TABLE>
See Notes to Consolidated Financial Statements.
These interim statements are unaudited.
2
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEET
DPL Inc.
At At
September 30, December 31,
1994 1993
------------- ------------
--thousands--
<S> <C> <C>
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
========== ==========
</TABLE>
See Notes to Consolidated Financial Statements.
These interim statements are unaudited.
3
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEET
(continued)
DPL Inc.
At At
September 30, December 31,
1994 1993
------------- ------------
--thousands--
<S> <C> <C>
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
========== ==========
</TABLE>
See Notes to Consolidated Financial Statements.
These interim statements are unaudited.
4
<PAGE>
<PAGE>
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:
<TABLE>
<CAPTION>
September 30, December 31,
1994 1993
------------- ------------
--millions--
<S> <C> <C>
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
====== ======
</TABLE>
4. Statement of Cash Flow Reconciliation
Reconciliation of Net Income to Net Cash Provided by
Operating Activities:
<TABLE>
<CAPTION>
Nine Months Ended
September 30
1994 1993
---- ----
--millions--
<S> <C> <C>
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
====== ======
</TABLE>
5
<PAGE>
<PAGE>
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
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
OPERATING STATISTICS
The Dayton Power and Light Company
Three Months Ended Nine Months Ended
September 30 September 30
------------------ -----------------
1994 1993 1994 1993
---- ---- ---- ----
<S> <C> <C> <C> <C>
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
</TABLE>
7
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<PAGE>
<TABLE>
<CAPTION>
OPERATING STATISTICS
(continued)
The Dayton Power and Light Company
Three Months Ended Nine Months Ended
September 30 September 30
------------------ -----------------
1994 1993 1994 1993
---- ---- ---- ----
<S> <C> <C> <C> <C>
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
</TABLE>
8
<PAGE>
<PAGE>
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
<PAGE>
<PAGE>
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
<PAGE>
<PAGE>
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
<PAGE>
<PAGE>
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
<PAGE>
<PAGE>
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
<PAGE>
<PAGE>
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
<PAGE>
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