In exchange, Dayton said it would urge the Public Utilities Commission of Ohio to approve the proposed $3.5 billion merger of AES, a Fortune 200 company, and DPL, the parent of DP&L, which provides electricity to about 500,000 residential and commercial customers in western Ohio.
The agreement stipulates that:
• For three years after the merger, the companies won’t implement layoffs that would reduce the DPL-DP&L workforce to less than 90 percent of its total the day before the merger closes, excluding corporate officers and senior management officials who are covered by change-of-corporate control agreements. DPL/DP&L currently has about 1,500 employees.
• If the total payroll tax revenue Dayton receives between Jan. 1, 2012, and Dec, 31, 2016, is less than $3 million, AES will be required to make up the shortfall. Although Dayton doesn’t disclose how much each taxpayer pays, the $3 million is considered representative of five years’ worth of city payroll tax revenues from DPL/DP&L.
• Through Dec. 31, 2017, the companies will discuss with Dayton any plans they might have to relocate DP&L’s headquarters at least 180 days before any such move occurs. The agreement grants the city an option to buy the DP&L headquarters property on Woodman Drive if it become available on or before Dec. 31, 2017. When it announced the proposed merger in April, AES originally pledged to keep DP&L’s headquarters here for two years.
Lawyers for the city, AES and DPL negotiated the agreement during the past two to three weeks, Danish said. The negotiations resulted from a proceeding before the PUCO and the agreement is subject to the commission’s approval, DPL and AES said in a joint statement.
On Wednesday, the Dayton City Commission approved the agreement and authorized the city manager to carry it out. Lawyers for the parties were working Friday to sign and file it with the PUCO, Danish, DPL and AES said.
“DP&L has always had a good relationship with the city of Dayton, and both AES and DP&L look forward to the continuation of that relationship,” the companies said.
Shareholders will vote on the proposed $3.5 billion merger on Sept. 23. State and federal regulators must approve the merger as well.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.
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