DPL Inc.’s (DPL) unregulated subsidiary, DPL Energy Resources, will build a 60 kilowatt (kW) solar array at the Mound Advanced Technology Center in Miamisburg, a former Department of Energy Weapons site. Along with the company’s other solar installation on Yankee road, this project will help DPL meet the goals of Ohio’s energy legislation, which includes targets for generating electricity with renewable sources such as solar, wind and biofuels.
After completion, the facility will generate enough power to provide electricity for five homes and will cost approximately $400,000. Melink Corporation of Cincinnati is the general contractor of the project, and the solar installation, which will be situated on a hillside at Mound, is expected to be completed by this summer.
Dayton, Ohio-based DPL Inc. sells electricity through its principal subsidiary Dayton Power and Light Company. DPL owns approximately 900MW of natural gas and diesel peaking generation capacity, and 2,800MW of coal-fired generation capacity. DP&L is an electric utility with more than 500,000 residential, commercial, industrial, and governmental customers in its 6,000 square-mile service area in west-central Ohio.
The other subsidiaries of DPL Inc. are DPL Energy, LLC (DPLE) and DPL Energy Resources, Inc. (DPLER). DPLE operates merchant peaking generation facilities and DPLER markets wholesale power generated by DPL’s power plants. In fiscal 2009, the company was nominated by Forbes as one of the 100 most trustworthy companies based on accounting and governance practices.
DPL’s consistent performance across its solid base of stable utility operations, higher rates, regulatory approval for recovery of fuel cost, strong balance sheet, an above industry average dividend yield and a relatively cheap earnings-based valuation support our bullish outlook for DPL.
We reiterate our market Outperform recommendation on the stock, which reflects our view that it will trade at a premium compared to peers like PNM Resources Inc. (PNM) and Avista Corporation (AVA).
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