DPL Announces Settlement with Sierra Club

DPL Inc. announced the filing of a consent decree in the United States District Court for the Southern District of Ohio settling claims brought by the Sierra Club of alleged violations of the Clean Air Act at the Stuart Station plant located in Aberdeen, Ohio. The 2,400 megawatt coal-fired power plant is co-owned by subsidiaries of DPL (35%), Duke Energy (39%), and American Electric Power (26%), with DPL having operating responsibility for the plant.

“This settlement is good for the environment, our customers and our shareholders,” said Mr. Paul Barbas, DPL president and chief executive officer. “It establishes meaningful and realistic emission targets, allows us to continue to provide our customers with cost-competitive generation, and avoids the expense of further litigation.”

Under the terms of the settlement, the co-owners of Stuart Station have agreed to certain emission targets related to nitrogen oxides, sulfur dioxide and particulate matter. In addition, the companies have agreed to make energy efficiency and renewable energy commitments that are conditioned on receiving Public Utilities Commission of Ohio approval for the recovery of costs. The companies have also agreed to forfeit 5,500 sulfur dioxide allowances, and provide $200,000 to a third party non-profit organization to establish a solar water heater rebate program.

The settlement must be considered and approved by the District Court. A ruling is expected by the end of the third quarter, after the expiration of a 45-day public comment period and a review by the U.S. Environmental Protection Agency and the Department of Justice.

The settlement is not expected to have a material effect on the financial condition or results of operations of DPL or The Dayton Power and Light Company.

About DPL

DPL Inc. (NYSE:DPL) is a regional electric energy and utility company. DPL’s principal subsidiaries include The Dayton Power and Light Company (DP&L); DPL Energy, LLC (DPLE); and DPL Energy Resources, Inc. (DPLER). DP&L, a regulated electric utility, provides service to over 514,000 retail customers in West Central Ohio; DPLE engages in the operation of merchant peaking generation facilities; and DPLER is a competitive retail electric supplier in Ohio, selling to major industrial and commercial customers. DPL, through its subsidiaries, owns and operates approximately 3,750 megawatts of generation capacity, of which 2,850 megawatts are low cost coal-fired units and 900 megawatts are natural gas and diesel peaking units. Further information can be found at www.dplinc.com.