IndianaDG

Dayton Power & Light sold to global utility giant AES; AES is IPL parent company; What does it mean for Indiana?

Posted by Laura Arnold / June 29, 2011 / Posted in Uncategorized / 1 Comments

Dear Readers: I don't know how I missed this one last month but Indianapolis Power and Light's (IPL) parent company AES is buying Dayton Power & Light (DPL). Here is a series of three articles that will get you up to speed on this deal. What does it mean for Indiana? You tell me. Laura Ann Arnold

Original article: http://seekingalpha.com/news-article/949757-dayton-power-light-sold-to-global-utility-giant-aes

April 20--DAYTON -- DPL Inc. will merge with AES Corp., a global power company whose generation and distribution businesses span five continents, in a $4.7 billion deal that will make DPL and its subsidiaries part of AES, company officials said in a deal announced on Wednesday.

AES, based in Arlington, Va., will pay $30 per share for all of DPL's nearly 116 million outstanding shares, for a total of approximately $3.5 billion. Including debt that AES has agreed to assume, the deal's total value is $4.7 billion, DPL said.

The companies project that the transaction will close in six to nine months, after receiving approval from DPL shareholders and regulatory OKs from the Federal Energy Regulatory Commission, the Public Utilities Commission of Ohio and federal antitrust regulators.

At that time, DPL and its subsidiaries will become part of AES. DPL said its principal subsidiary, the Dayton Power and Light Co., will keep its name and headquarters in Dayton for at least two years after the merger. The company will continue its corporate giving and community support at current levels for at least two years after the merger, said Paul M. Barbas, DPL's president and chief executive officer.

DPL's work force of 1,500 people will remain intact. "They committed that there would be no force reductions for the next two years, through 2013," Barbas said in an interview with the Dayton Daily News.

AES' resources offer DPL and DP&L better opportunities to grow, especially as Ohio requires utilities to diversify their generating source to include more alternative energy sources, Barbas said. [Emphasis added.]

AES generates and distributes electricity from coal, diesel, biomass, hydropower, natural gas, oil, solar and wind sources.

The merger offers DPL employees the opportunity to be promoted to other parts of the country or AES' international operations, Barbas said. AES is much larger, with 29,000 employees worldwide, operations in 29 countries from China to Cameroon to Chile, and 2010 revenue of $17 billion.

Dayton Power and Light serves about 500,000 customers in west-central Ohio. The parent company, DPL Inc., had 2010 revenue of $1.9 billion. Both are traded on the New York Stock Exchange.

AES has owned Indianapolis Power and Light Co. for about a decade but hasn't changed the Indianapolis utility's name, Barbas said.

"They are excited about expanding domestically, and in the Midwest," he said. "This is a great opportunity. They focus on same key markets, and the U.S. is one of them."

DPL will postpone its annual meeting of shareholders, which had scheduled for April 27 in Dayton, until mid-July, when its shareholders are to vote on whether to approve the merger with AES, Barbas said.

Between now and then, both companies will be making required filings with federal and state regulators.

DPL will continue to issue quarterly dividends in the meantime, Barbas said.

Barbas said he didn't recall which company approached the other first.

"Both of us employ people who look for opportunities," he said. "You always look for opportunities to grow."

Still to be worked out is the fate of DPL's executive leadership team. That wasn't decided during the negotiations, Barbas said.

___

To see more of the Dayton Daily News or to subscribe to the newspaper, go to http://www.daytondailynews.com .

Dayton Power & Light snapped up by AES for US$4.7bn

Original article: http://www.ifandp.com/article/0010908.html

under News April 20th, 2011 by IFandP Newsroom

Dayton Power & Light Inc (DPL) and its subsidiaries are to become part of AES Corp, a global power company. Under the terms of the deal, AES will pay US$30/share for all of DPL’s 116m outstanding shares for a total of around US$3.5bn. AES will also take on DPL’s debts, taking the total value of the deal to US$4.7bn. The transaction is expected to close in six to nine months, subject to approval from DPL shareholders, the Public Utilities Commission of Ohio (PUCO), the Federal Energy Regulatory Commission (FERC) and an anti-trust review. AES has committed bridge financing in place from Bank of America Merrill Lynch, which also acted as financial advisor for the acquisition. Under the terms of the deal, DPL will keep its name and Dayton headquarters for at least two years after the merger.

“The DPL acquisition is expected to be value and earnings accretive, benefiting from the regional scale provided by our nearby utility business at Indianapolis Power & Light Company,” said AES Corp Chief Executive Paul Hanrahan.

Via its subsidiaries, DPL owns and operates around 3.8GW of generating capacity of which 2.8GW are coal-fired plants for baseload generation and 1GW are natural gas and diesel peaking units. By way of comparison, AES has 40.5GW of generating capacity. DPL sells its power to customers in a 6000 square mile area of West Central Ohio.

DPL Announces Early Termination of Antitrust Waiting Period

DAYTON, Ohio, Jun 15, 2011 (BUSINESS WIRE) --

DPL Inc. (NYSE: DPL) today announced that on June 14, 2011 the U.S. Department of Justice and the Federal Trade Commission granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in connection with the proposed merger of DPL with a wholly-owned subsidiary of The AES Corporation (AES).
Completion of the transaction between DPL and AES is subject to customary closing conditions, including approval by DPL shareholders and the receipt of additional regulatory approvals. The parties currently expect to complete the merger in the fourth quarter of 2011 or first quarter of 2012.

About DPL
DPL Inc. (NYSE:DPL) is a regional energy company. DPL was named one of Forbes' "100 Most Trustworthy Companies" for the second consecutive year in 2010.

DPL's principal subsidiaries include The Dayton Power and Light Company (DP&L); DPL Energy, LLC (DPLE); and DPL Energy Resources, Inc. (DPLER), which also does business as DP&L Energy. The Dayton Power and Light Company, a regulated electric utility, provides service to over 500,000 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. DPL, through its subsidiaries, owns and operates approximately 3,800 megawatts of generation capacity, of which 2,800 megawatts are low cost coal-fired units and 1,000 megawatts are natural gas and diesel peaking units. Further information can be found at www.dplinc.com.

About AES
The AES Corporation (NYSE: AES) is a Fortune 200 global power company with generation and distribution businesses. Through its diverse portfolio of thermal and renewable fuel sources, AES provides affordable and sustainable energy to 28 countries. AES's workforce of 29,000 people is committed to operational excellence and meeting the world's changing power needs. AES's 2010 revenues were $16.2 billion and AES owns and manages approximately $40.5 billion in total assets. To learn more, please visit www.aes.com.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the proposed transaction between DPL and AES and the expected timing and completion of the transaction. Words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "should," "may," and other similar expressions are intended to identify forward looking statements. Such statements are based upon the current beliefs and expectations of DPL's management and involve a number of significant risks and uncertainties, many of which are difficult to predict and are generally beyond the control of DPL and AES. Actual results may differ materially from the results anticipated in these forward-looking statements. There can be no assurance as to the timing of the closing of the transaction, or whether the transaction will close at all. The following factors, among others, could cause or contribute to such material differences: the ability to obtain the approval of the transaction by DPL's shareholders; the ability to obtain required regulatory approvals of the transaction or to satisfy other conditions to the transaction on the terms and expected timeframe or at all; transaction costs; economic conditions; a material adverse change in the business, assets, financial condition or results of operations of DPL; a material deterioration in DPL's retail and/or wholesale businesses and assets; and the effects of disruption from the transaction making it more difficult to maintain relationships with employees, customers, other business partners or government entities. Additional factors that could cause DPL's results to differ materially from those described in the forward-looking statements can be found in the periodic reports filed with the Securities and Exchange Commission and in the proxy statement DPL intends to file with the Securities and Exchange Commission and mail to its shareholders with respect to the proposed transaction, which are or will be available at the Securities and Exchange Commission's Web site (http://www.sec.gov) at no charge. DPL assumes no responsibility to update any forward-looking statements as a result of new information or future developments except as expressly required by law.

Additional Information
This communication is being made in respect of the proposed merger transaction involving DPL and AES. In connection with the proposed transaction, DPL will file with the Securities and Exchange Commission a proxy statement and will mail the proxy statement to its shareholders. Shareholders are encouraged to read the proxy statement regarding the proposed transaction in its entirety when it becomes available because it will contain important information about the transaction. Shareholders will be able to obtain a free copy of the proxy statement, as well as other filings made by DPL regarding DPL, AES and the proposed transaction, without charge, at the Securities and Exchange Commission's Internet site (http://www.sec.gov). These materials can also be obtained, when available, without charge, by directing a request to DPL at communications@dplinc.com.

DPL, AES and their respective executive officers, directors and other persons may be deemed to be participants in the solicitation of proxies from DPL's shareholders with respect to the proposed transaction. Information regarding the officers and directors of DPL is included in its Annual Report on Form 10-K for the year ended December 31, 2010 and DPL's notice of annual meeting and proxy statement for its most recent annual meeting, which previously were filed with the Securities and Exchange Commission on February 18, 2011 and March 18, 2011, respectively. Other information regarding the participants in the solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the Securities and Exchange Commission in connection with the proposed transaction.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
SOURCE: DPL Inc.

DPL Inc.Investor Relations Contact

Craig Jackson, VP & Treasurer, 937-259-7033

News Media Contact

DPL Medialine, 937-224-5940

e-mail communications@dplinc.com

Munster will tap landfill gases to produce electricity; Will project use NIPSCO’s proposed feed-in tariff pending IURC approval?

Editor's Note: We assume that the Town of Munster hopes to sell the electricity from this landfill to methane project to NIPSCO under their soon to be approved feed-in tariff program currently awaiting approval by the Indiana Utility Regulatory Commission (IURC). Indiana Distributed Energy Advocates (IDEA) was a party to the Settlement Agreement reached with NIPSCO. A Joint proposed order supporting the Settlement Agreement was filed May 13, 2011. The IURC agenda for this week's conference scheduled for Wednesday, June 29 at 2:00 pm does not list the NIPSCO order in Cause No. 43922. Maybe next week? Keep reading and watching this blog for details! Laura Ann Arnold

Original story: http://www.nwitimes.com/news/local/lake/munster/article_48acb866-2601-5965-8b14-ede408ff122b.html

By Lu Ann Franklin, Times Correspondent | Posted: Monday, June 27, 2011 10:30 am

MUNSTER | Two projects to collect the methane gas emitted by the former landfill along Calumet Avenue and turn it into electricity will begin this summer at Centennial Park.

The first phase of the project will modify the current gas wells that collect the methane and other gases produced by the decomposition of landfill material. This includes repairs to the gas vault and collection system on the north end of the park.

The Munster Town Council awarded work for the well modification to Olthoff Inc. of Chicago Heights for a bid of nearly $194,000. An industrial/commercial contractor, Olthoff is not related to the local residential construction company, said Tom DeGiulio, Munster town manager.

The second phase of the $3.4 million project will be constructed by Energy Systems Group of Newburgh, Ind., to more efficiently collect the gas to power a new turbine. The turbine produces electricity that will be sold to NIPSCO.

Expected to be completed next spring, the project includes moving the flare south, building housing for the turbines and putting up screening to shield the mechanics.

Munster has been operating turbines that convert the gas to electricity for several years, but they are not efficient and are beginning to need repairs, Town Engineer James Mandon said.

This larger turbine project will generate more electricity.

Munster will operate the new system, half of which is being funded by a U.S. Department of Energy grant.

Tax increment financing district money will float a loan for Munster's half of the cost until NIPSCO revenues start to arrive.

"Conservative estimates are that the gas will last 17 to 19 more years," DeGiulio said. "We're anticipating that it will last more than 25 years."

However, the odor produced by the decomposition still will linger, Mandon said, because it leaks from the landfill cells despite plastic liners that encapsulate the material.

Journal & Courier: Businesses urged to buy into Tippecanoe wind farm project

Posted by Laura Arnold / June 26, 2011 / Posted in Uncategorized / No Comments

by Max Showalter , Lafayette Journal & Courier, Thursday, June 23, 2011, www.jconline.com

The installation of wind turbines could start next April in northern Tippecanoe County as part of a project that combines electricity generation with research and tourism.

Nearly a dozen large energy users in Greater Lafayette got an update Wednesday on Purdue Energy Park, which is expected to generate 100 megawatts of power from 61 turbines placed on property owned by Purdue University and 19 adjacent landowners.

While negotiations continue with Indiana power companies to purchase the output of the turbines, plans also are being made to build a research and development and welcome and innovation center on the site.

"This is a first in the country, taking 100 megawatts of wind and combining it with a research facility," said Scott Zigmond, vice president of sales and marketing with Performance Services, which will own and operate the facility.

"We plan on making this a destination for tourists and a place for kids to learn. This is unmatched when it comes to the research piece."

Creating approximately 200 construction jobs and long-term employment for about eight people, the wind farm is expected to be operational by Dec. 31, 2012.

A portion of it will be on 1,600 acres that encompass Purdue's Animal Science Research and Education Center west of county roads 600 North and 450 West.

Zigmond urged his audience to contact their energy suppliers to urge them to buy into Purdue Energy Park.

"We would like four or five (energy) companies to take 25 or 30 megawatts each," Zigmond said. "If Indiana utility companies are not on board, we'll go outside the state. We don't want to do that, but we need to get this project up and going.

"We have excellent transmission capability locally. We have all our wind assessments completed. We're ready to go. It's just a matter of selling (electricity) to someone."

Jody Hamilton, director of economic development with Greater Lafayette Commerce, said she and others in the organization have been working with the Carmel-based company on the alternative energy proposal.

"Performance Services came to us as a first stop," Hamilton said. "We got the county commissioners involved and the mayors involved to make this a really great project."

For wind research purposes, two of the 61 turbines planned for the wind farm will be larger and have the capacity to generate 2.75 megawatts.

Sound and flicker effects of wind turbines could be studied, along with learning how turbines impact agriculture.

"We believe this is a win, just because of the research," said Gregory Napier, assistant director of real estate and physical facilities with the Purdue Research Foundation. "There are research dollars available -- $20 (million) to $30 million annually to be had. Seven jobs are created for every million dollars of research, at a minimum. We believe we have a great relationship with utilities.

"The educational opportunities, the community benefits, the welcome and innovation center. It will be good for our local economy."

Performance Services, Inc. is a member of Indiana Distributed Energy Advocates.

InsideINdianaBusiness: Indiana Lands 500 Solar Jobs; Solar Inverter Manufacturer Fronius USA LLC to Move to Portage, IN

Posted by Laura Arnold / June 26, 2011 / Posted in Uncategorized / 1 Comments

Editor's Note: Indiana Distributed Energy Advocates would like to extend a warm welcome to Fronius USA, LLC.

So you may be asking, what is a solar inverter? Wikipedia states: A solar inverter or PV inverter is a critical component in a solar energy system. It performs the conversion of the variable DC output of the Photovoltaic (PV) modules into a utility freqeuncy AC current that can be fed into the commercial electrical grid or used by a local, off-grid electrical network. For more information see: http://en.wikipedia.org/wiki/Solar_inverter

Laura Ann Arnold

InsideINdianaBusiness.com Report

Northwest Indiana Forum President Mark Maassel says the Fronius announcement is a reflection of Indiana's pro-business climate.

Economic development officials say a decision by a solar company to move its North American headquarters from Michigan to Portage amounts to the biggest jobs announcement so far this year in northwest Indiana. Fronius USA LLC says it plans to create up to 512 jobs in Portage by 2016. The company produces solar inverters. The deal marks the 1,000th new business establishment or expansion completed by the Indiana Economic Development Corporation since it launched in 2005.

June 23, 2011

News Release

PORTAGE, Ind. – Governor Mitch Daniels joined executives from Fronius USA, LLC, the fourth-largest solar inverter producer in the world, today to announce that the company will relocate its North American headquarters here from Michigan, creating up to 512 new jobs by 2016.

The Austrian company will invest more than $26.64 million to lease and equip 400,000 square-feet of space in Portage to assemble and manufacture its products for the North American market. Through this new facility, Fronius plans to develop its current manufacturing capacities to meet the global demand for solar electronic inverters and welding technology.

“We’re excited to bring new jobs anywhere in Indiana, but we’re particularly excited Fronius has chosen northwest Indiana,” said Daniels. “Fronius is well-established, fast-growing and at the top of their field, exactly the kind of company we’ve rebuilt the Indiana business climate to attract.”

Fronius’ relocation marks the 1,000th new business establishment or expansion the Indiana Economic Development Corporation, the state’s lead economic development agency, has completed since its inception in 2005.

Established in Brighton, Mich. in 2002, the family-owned, international company has been engaged in solar electronics since 1992, in particular the development and production of photovoltaic inverters for both grid-connected and independent power supplies.

“Indiana has a great business climate with a perfect infrastructure for us, including a good network of suppliers and skilled employees,” said Wolfgang Niedrist, managing director for U.S. sales at Fronius. “We can’t wait to get to know the people of Indiana even better as we move into the community.”

Fronius, which currently employs more than 4,200 employees globally, has already started hiring human resource and finance associates for its Portage headquarters. It plans to expand its procurement and production workforce to coincide with the completion of facility improvements next summer.

The Indiana Economic Development Corporation offered Fronius USA, LLC up to $4.25 million in performance-based tax credits based on the company's job creation plans. The city of Portage will consider additional property tax abatement at the request of the Portage Redevelopment Commission and the Portage Economic Development Corporation.

“We have worked closely with IEDC and the company representatives for many months through the recruitment process. It has been this partnership and open communication that has proven successful in having Fronius choose to locate in the city of Portage,” said Portage Mayor Olga Velazquez. “We are extremely pleased to share the good news with our residents. Fronius will bring an entirely new high tech industry to Portage and northwestern Indiana. The skilled jobs created will keep our young people near home.”

Fronius’ establishment in Indiana comes on the heels of two recent announcements from companies also relocating to Indiana from Michigan. Earlier this month, Spartan Motors, Inc. announced its plans to relocate parts of its operations to Wakarusa from Michigan, creating up to 60 jobs by the second half of 2012. In May, Molded Foam, LLC announced its acquisition of a Michigan firm and intentions to relocate operations to Indiana, creating up to 45 jobs in Elkhart County by 2014.

About Fronius USA, LLC

Fronius USA, LLC is a world technology leader in the fields of battery charging systems, welding technology and solar electronics. Founded in 1945, Fronius has production sites in Austria, Canada, the Czech Republic and Ukraine, plus 13 sales subsidiaries all over the world. This Austrian company owns 737 active patents and generated a total turnover of 499 million Euros in financial year 2010. For more information, visit www.fronius.com.

About IEDC
Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Mitch Roob serves as the chief executive officer of the IEDC. For more information about IEDC, visit www.iedc.in.gov.

Source: Indiana Economic Development Corporation

IURC Approves IPL’s Second Feed-in Tariff Contract Under Rate REP With GSA Emmett Bean Solar PV Project 6/16/2011

Posted by Laura Arnold / June 21, 2011 / Posted in IPL Rate REP, Uncategorized / No Comments

The Indiana Utility Regulatory Commission (IURC) approved only the second Indianapolis Power and Light (IPL) feed-in tariff (FIT) under Rate REP since the three year pilot program became effective March 30, 2010.

The first Rate REP contract was last summer with the Time Factory for a 50 kW wind turbine.

See IPL 30 Day Filing_Rate REP_Time Factory_06.24.10[1]

The IURC order in Cause No. 43623 provides that all Rate REP contracts must be filed under the Commission's thirty (30) day filing procedure. The IURC 30-day filing No. 2856 was received on May 13, 2011.

The approved contract was for a Solar PV system with a nameplate capacity of 2.012 MW. The system was installed at the General Services Administration (GSA) Major General Emmett J. Bean Federal Center at 8899 E. 56th Street, Indianapolis, IN 46249.

The Rate REP contract was signed for GSA on 4/21/2011 by Shanta Maldonado, Contracting Officer, GSA and on 5/2/2011 by William H. Henley, VP Corporate Affairs, IPL.

IPL 30 Day Filing_ Rate REP_ GSA_2856_051311_approved 16June2011

The terms and conditions of IPL's Rate REP are the subject of a new case currently pending before the IURC in Cause No. 44018. Indiana Distributed Energy Advocates (IDEA) is an intervenor is this proceeding and will be filing testimony by June 30, 2011. For more information on this new proceeding and the proposed changes to Rate REP, please contact Laura Arnold at (317) 635-1701 or laura.arnold@indianadg.org.