HomeMay 9, 2014
Parent of DPL Energy Resources Records Impairment Due to Retail Supplier Goodwill Valuation
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The AES Corporation recorded a $136 million impairment charge during the first quarter of 2014 related to all of the goodwill at retail supplier DPL Energy Resources.
AES said that this impairment charge reflects, "continued margin compression and lower than expected retail growth," at the retail supplier.
"The impairment indicators arose based on market information available regarding actual and proposed sales of competitive retail marketers, which indicated a significant decline in valuations during the first quarter of 2014," AES said in a 10-Q.
Regarding discussions among stakeholders to potentially introduce ratepayer-backed contracts to support Ohio generation and maintain price stability, AES CEO Andres Gluski said that, "I think there's serious concern given what happened in the polar vortex to keep sufficient plants online."
"[W]e'd certainly look at this before making any final decision on a sale," of the DP&L utility generation, Gluski said.
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