DPL IncorporatedDPL

Morningstar Rating

Stock Research and Analysis

by Travis Miller

Recent legislative developments in Ohio appear set to reregulate DPL's revenue stream, ending a decade of regulatory uncertainty. By 2013, the company's earnings profile should look more like the traditional utility model. This should reduce uncertainty Read more

Bulls Say

A major recapitalization since 2005 has made the company more financially sound.

Favorable regulation should raise rates and keep competitors out of DPL's service area, at least through 2010.

For now, the company's cheap coal-fired generation keeps power prices low, customers happy, and its market share safe.

A legal settlement reached with former executives in May 2007 removes one distraction and should reduce legal costs.

Coal hedges through 2010 at prices lower than $50 per ton have given DPL a significant cost advantage in the current market environment. Read more

Bears Say

Population growth is nonexistent, and long-term rate structures are uncertain in DPL's service area, leading to little long-term growth.

Rate regulation after 2012, when the current "market development period" expires, is highly uncertain.

DPL's reliance on coal-fired generation could become a major liability if carbon legislation passes.

Struggles in automaking and related industries could have a substantial effect on DPL if factories reduce power consumption. Read more

Strategy

After several years of letting operating costs run rampant, management is focused on improving power plant efficiency and improving operational performance of its regulated power delivery segment. Recent Read more

Management

DPL shook off a significant distraction when it reached a $25 million settlement with former executives regarding deferred compensation in May 2007. Even though that management team left in 2004 and most of the company executives and board members in Read more

Profile

Utility holding company DPL's major subsidiaries are the Dayton Power & Light Company and DPL Energy. DP&L is a regulated utility providing electric service to more Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

How One Utility Outshines
Watch more