DPL Energy Resources Share of Migrated Load in Affiliated Service Area Falls to 90%

As of April 15, DPL Energy Resources has retained approximately 90% of the annualized switched retail load to date in its affiliated service area of Dayton Power & Light, parent DPL Inc. said in reporting earnings.

That's down from retaining over 99% of switched load at Dayton Power & Light as of the first quarter of 2010.

As a percent of total load, DPL Energy Resources is serving 42% of Dayton Power & Light load, while non-affiliated competitive providers are serving 5% of total Dayton Power & Light load.

Total migration at Dayton Power & Light increased from 20% in the first quarter of 2010 to 47% as of April 15, 2011.

Competitive retail generation sales at Dayton Power & Light for the first quarter were as follows:
1Q 2011 1Q 2010

Customer migration reduced gross margin by $9 million for DPL Inc. and $19 million for Dayton Power & Light, for the three months ending March 31, 2011.

Net income at DPL's competitive retail segment tripled for the first quarter of 2011 at $6.1 million, up from $2.1 million a year ago. Gross margin for the competitive retail segment increased to $16.3 million in the first quarter, from $4.5 million a year ago. Revenue more than doubled at $94.0 from $41.8 million a year ago.

Results were lifted by increased customer migration to DPL Energy Resources in Ohio, as well as from the acquisition of MC Squared Energy Services on February 28, 2011, the latter of which resulted in additional retail revenues of $4.1 million recorded since this purchase date.

DPL Energy Resources disclosed in a 10-Q that it purchased MC Squared for approximately $8.2 million.

For the year ended December 31, 2010, MC Squared sold approximately 648 million kWh of power, generating revenues of approximately $46 million, and had a customer book of about 2,000 customers at ComEd.

With the acquisition, DPL Energy Resources now serves 12,674 customers currently located throughout Ohio and Illinois. During an earnings call, DPL Energy Resources confirmed that it will use the MC Squared platform to expand into other markets during the year.

DPL Energy Resources' customer count across all service areas (including MC Squared) as of March 31 was as follows:

As of March 31, 2011 March 31, 2010

Total DPL Energy Resources retail sales in the first quarter were 1,471 GWh, versus 724 GWh a year ago. As noted above, 91% (1,344 GWh) of these sales came at Dayton Power & Light