DPL Energy Resources Serving 85% of Migrated Sales at Dayton Power & Light

DPL Energy Resources is serving 85% of migrated sales at affiliate Dayton Power & Light as of the quarter ending September 30, 2011, DPL Inc. reported in a 10-Q.

During the third quarter, DPL Energy Resources served 1,567 GWh at Dayton Power & Light. A total of 1,850 GWh was served competitively, meaning non-affiliated retail suppliers served 283 GWh, or 15%, of migrated sales.

In terms of total distribution volumes at Dayton Power & Light, DPL Energy Resources served approximately 40% of Dayton Power & Light retail sales. Another approximately 52% of distribution volumes were served under the Dayton Power & Light Standard Service Offer.

On a customer basis, about 40,000, or 8%, of customers at Dayton Power & Light were served by a competitive supplier as of September 30, 2011, with the total split about evenly between DPL Energy Resources and non-affiliated suppliers.

The reduction to gross margin during the three months ended September 30, 2011 as a result of customers switching to DPL Energy Resources and other competitive providers was approximately $19.8 million for DPL Inc.

During the second and third quarters of 2011, DPL reported that it saw a significant increase in retail competition for Dayton Power & Light residential customers. Approximately 12% of DP&L's annualized residential load switched to competitive providers during those quarters, with DPL Energy Resources acquiring 57% of the switched load. AEP Retail Energy and FirstEnergy Solutions are also active in the Dayton Power & Light residential market.

DPL Inc.'s Competitive Retail segment posted net income for the quarter ending September 30, 2011 of $7.8 million, versus net income of $4.7 million a year ago.

The Competitive Retail segment, through DPL Energy Resources and MC Squared Energy Services, serves approximately 25,000 customers located throughout Ohio and Illinois. Of that total, some 3,000 are served by MC Squared Energy Services in Northern Illinois.

Primarily as a result of the purchase of MC Squared and customer switching in Ohio, the Competitive Retail segment sold approximately 1,871 GWh of power to 25,309 customers during the three months ended September 30, 2011 compared to 1,384 GWh sold to 4,826 customers during the same period in 2010.

Quarterly gross margin for the Competitive Retail segment was $17.2 million, versus $8.6 million a year ago.

Revenues for the Competitive Retail segment for the quarter were $118.6 million, versus $84.5 million a year ago.