Exhibit 10(aa)
2003 LONG-TERM INCENTIVE PLAN
The Plan
• | Long-term cash awards are earned based on DPL’s 3-year compound annual growth in Total Return to Shareholders (TRS)(1) relative to the selected S&P Utility Industry Sector Peer Group(2), using the schedule below. |
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• | Annually, at the beginning of each 3-year performance cycle, a target award will be established (in dollars) for each participant. |
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• | Awards are earned at the end of each 3-year performance cycle (except for the initial award - see below). |
Earnings Schedule
DPL TRS as Percentile of Peer Group |
| Proportion of Target Award Earned |
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85th - 100th |
| 150 - 200% |
65th - 85th |
| 100 - 150% |
40th - 65th |
| 1 - 100% |
Less than 40th |
| 0% |
Awards are earned proportionally in each tier. For example, performance at the 50th percentile will result in an award of 40% of Target; performance at the 90th percentile will result in an award of 166 2/3% of Target.
Initial Grant
• | Initial grant will equal 3 times normal indicated target award (to cover first 3-year performance cycle.) |
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• | 1/3 of initial target award eligible to be earned in accordance with above schedule in each of first three years of plan. |
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• | Earnings of awards based on 1-year TRS for the first year of the plan, 2-year TRS for the second year and 3-year TRS for the third year. |
Payout
Cash awards earned will be paid when earned, subject to any deferral election.
Administration
The Plan will be administered by the Compensation and Management Review Committee.
(1)TRS calculated based on stock price appreciation plus re-invested dividends.
(2)See Appendix B for list of companies included in group.
Appendix B: S&P Utility Industry Sector Peer Group
Company Name | Ticker | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total |
AES Corp. (The) | AES | @NA | -2.432 | 11.034 | 27.088 | -68.476 | 58.323 |
AGL Resources Inc | ATG | 13.894 | 1.909 | 6.965 | 6.678 | 13.695 | 5.794 |
Allegheny Energy Inc | AYE | 20.931 | 6.353 | 13.559 | 11.776 | 21.358 | 12.481 |
Allete Inc | ALE | 14.421 | -2.009 | 0.811 | 1.629 | 28.728 | 23.18 |
Alliant Energy Corp | LNT | 17.061 | -0.198 | 2.857 | 1.349 | 13.996 | 8.761 |
Ameren Corp | AEE | 16.753 | 3.423 | 10.563 | 6.118 | 14.074 | 7.338 |
American Electric Power | AEP | 18.266 | 6.029 | 14.657 | 10.639 | 23.428 | 11.027 |
American States Water Co | AWR | 23.262 | 7.832 | 6.85 | 6.372 | 19.673 | 16.546 |
American Water Works Inc | AWK | 28.174 | 4.454 | 16.829 | 15.58 | 31.301 | 24.158 |
Aquila Inc | ILA | 22.816 | 3.316 | 8.19 | 0.701 | 20.698 | 14.072 |
Atmos Energy Corp | ATO | 29.083 | 13.964 | 14.515 | 9.734 | 16.932 | 18.442 |
Avista Corp | AVA | 16.093 | 1.12 | 7.363 | 7.489 | 29.587 | 9.69 |
Black Hills Corp | BKH | 9.041 | -3.172 | 2.2 | 13.757 | 24.616 | 22.784 |
Calpine Corp | CPN | @NA | @NA | @NA | @NA | @NA | @NA |
Cascade Natural Gas Corp | CGC | 20.718 | 4.364 | 7.094 | 1.95 | 11.448 | 9.637 |
Central Vermont Pub Serv | CV | 12.622 | -9.807 | -12.783 | -10.991 | 11.153 | -1.611 |
CH Energy Group Inc | CHG | 14.582 | 4.192 | 7.184 | 8.791 | 26.901 | 20.443 |
Cinergy Corp | CIN | 19.212 | 2.401 | 14.557 | 13.812 | 24.797 | 9.676 |
Cleco Corp | CNL | 17.815 | 4.086 | 9.987 | 10.18 | 18.534 | 14.724 |
CMS Energy Corp | CMS | -1.015 | 10.742 | 21.356 | 14.08 | 28.708 | 21.251 |
Consolidated Edison Inc | ED | 18.245 | 2.981 | 5.896 | 3.962 | 25.157 | 26.012 |
Constellation Energy Grp Inc | CEG | 17.948 | 5.355 | 13.58 | 8.25 | 22.469 | 8.571 |
Dominion Resources Inc | D | 20.555 | 4.429 | 8.04 | 1.197 | 13.159 | 11.334 |
DOE Inc | DQE | 17.174 | 4.054 | 18.443 | 13.565 | 26.847 | 17.524 |
DTE Energy Co | DTE | 8.457 | -2.728 | 9.023 | 10.072 | 17.539 | 14.466 |
Company Name | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total | S & P | @ desc(spmix) |
AES Corp. (The) | 47.592 | 33.426 | -11.624 | @NA | 10 | S&P 500 |
AGL Resources Inc | 0.073 | 7.92 | 6.702 | @NA | 91 | S&P MidCap 400 |
Allegheny Energy Inc | 1.593 | 20.313 | 6.835 | @NA | 10 | S&P 500 |
Allete Inc | 13.399 | 10.189 | 10.19 | @NA | 91 | S&P MidCap 400 |
Alliant Energy Corp | 6.259 | 5.607 | 4.916 | @NA | 91 | S&P MidCap 400 |
Ameren Corp | 1.157 | 9.283 | 6.525 | @NA | 10 | S&P 500 |
American Electric Power | -2.547 | 2.637 | 3.559 | @NA | 10 | S&P 500 |
American States Water Co | 24.215 | 18.915 | 13.227 | @NA | 92 | S&P SmallCap 600 |
American Water Works Inc | 4.111 | 5.732 | 10.858 | @NA | 91 | S&P MidCap 400 |
Aquila Inc | 8.329 | 12 | 6.06 | @NA | 91 | S&P MidCap 400 |
Atmos Energy Corp | 5.16 | -1.655 | -4.224 | 1.583 | 92 | S&P SmallCap 600 |
Avista Corp | -1.439 | -2.261 | -9.291 | @NA | 92 | S&P SmallCap 600 |
Black Hills Corp | 10.721 | 29.45 | 12.978 | @NA | 91 | S&P MidCap 400 |
Calpine Corp | 85.664 | 189.389 | 74.566 | @NA | 10 | S&P 500 |
Cascade Natural Gas Corp | 9.189 | 7.603 | 15.628 | 8.79 | 92 | S&P SmallCap 600 |
Central Vermont Pub Serv | 3.04 | -0.18 | 25.487 | @NA | 92 | S&P SmallCap 600 |
CH Energy Group Inc | 7.696 | 6.553 | 4.791 | @NA | 92 | S&P SmallCap 600 |
Cinergy Corp | -5.428 | 3.082 | 5.308 | @NA | 10 | S&P 500 |
Cleco Corp | 10.897 | 25.107 | 13.613 | @NA | 91 | S&P MidCap 400 |
CMS Energy Corp | 0.734 | -6.352 | -16.517 | @NA | 10 | S&P 500 |
Consolidated Edison Inc | 11.66 | 3.425 | -3.153 | @NA | 10 | S&P 500 |
Constellation Energy Grp Inc | 8.657 | 15.535 | -1.082 | @NA | 10 | S&P 500 |
Dominion Resources Inc | 7.201 | 23.314 | 14.469 | @NA | 10 | S&P 500 |
DOE Inc | 10.502 | 1.659 | -20.381 | @NA | 91 | S&P MidCap 400 |
DTE Energy Co | 5.145 | 9.83 | 4.72 | @NA | 10 | S&P 500 |
Appendix B: S&P Utility Industry Sector Peer Group Continued
Company Name | Ticker | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total |
Duke Energy Corp | DUK | 17.271 | 8.013 | 14.788 | 7.91 | 18.592 | 15.318 |
Dynegy Inc | DYN | @NA | @NA | @NA | 26.113 | 19.011 | 7.56 |
Edison International | EIX | 8.458 | -8.514 | -1.264 | 6.382 | 29.509 | 22.373 |
EI Paso Corp | EP | @NA | @NA | 1.224 | 16.356 | 34.243 | 37.891 |
EI Paso Electric Co | EE | -11.489 | -38.554 | -47.688 | 34.24 | 108.046 | 195.241 |
Energen Corp | EGN | 17.25 | 13.254 | 11.769 | 4.127 | 22.099 | 25.439 |
Energy East Corp | EAS | 13.692 | -6.681 | -0.783 | -4.883 | 30.839 | 36.737 |
Entergy Corp | ETR | 22.899 | -4.665 | 2.126 | -1.946 | 19.002 | 8.719 |
Exelon Corp | EXC | 25.273 | 3.497 | 10.803 | 0.189 | 6.821 | 18.534 |
First Energy Corp | FE | 17.827 | 3.672 | 7.768 | 7.468 | 24.199 | 18.629 |
FPL Group Inc | FPL | 18.419 | 4.694 | 14.705 | 10.671 | 24.083 | 14.167 |
Great Plains Energy Inc | GXP | 16.535 | 6.171 | 11.875 | 14.516 | 14.829 | 10.229 |
Green Mountain Power Corp | GMP | 19.464 | 4.712 | 1.495 | -0.583 | -5.872 | -21.943 |
Hawallan Electric Inds | HE | 10.865 | 2.163 | 8.278 | 7.298 | 15.518 | 8.155 |
IDACORP Inc | IDA | 13.036 | 0.05 | 10.277 | 8.014 | 24.794 | 12.91 |
Keyspan Corp | KSE | 17.965 | 13.037 | 8.59 | 8.452 | 16.39 | 6.82 |
Kinder Morgan Inc | KMI | 23.774 | 14.751 | 20.366 | 19.36 | 35.622 | 10.53 |
Laclede Group Inc | LG | 26.158 | 12.558 | 9.329 | 5.042 | 11.058 | 9.65 |
MDU Resources Group Inc | MDU | 22.156 | 9.027 | 9.876 | 8.721 | 26.549 | 30.984 |
Mlranl Corp | MIR | @NA | @NA | @NA | @NA | @NA | @NA |
National Fuel Gas Co | NFG | 21.566 | 12.703 | 8.689 | 5.645 | 19.372 | 22.796 |
New Jersey Resources | NJR | 25.914 | 9.146 | 11.673 | 4.894 | 22.023 | 16.92 |
Nicor Inc | GAS | 13.757 | 4.951 | 8.372 | 13.72 | 28.241 | 19.954 |
Nisource Inc | NI | 26.304 | 9.93 | 18.303 | 11.491 | 23.923 | 21.666 |
Northeast Utilities | NU | 13.942 | 4.282 | 4.415 | -11.062 | -12.962 | -9.585 |
Company Name | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total | S & P | @ desc(spmix) |
Duke Energy Corp | 6.956 | 19.78 | 10.66 | @NA | 10 | S&P 500 |
Dynegy Inc | 1.812 | 64.815 | 48.428 | @NA | 10 | S&P 500 |
Edison International | 13.658 | -13.559 | -16.273 | @NA | 10 | S&P 500 |
EI Paso Corp | 18.059 | 31.742 | 10.6 | @NA | 10 | S&P 500 |
EI Paso Electric Co | 14.716 | 21.762 | 18.337 | @NA | 92 | S&P SmallCap 600 |
Energen Corp | 23.488 | 22.892 | 9.16 | @NA | 92 | S&P SmallCap 600 |
Energy East Corp | 29.85 | 7.479 | -8.779 | @NA | 91 | S&P MidCap 400 |
Entergy Corp | 3.122 | 17.424 | 12.139 | @NA | 10 | S&P 500 |
Exelon Corp | 16.581 | 46.6 | 7.554 | @NA | 10 | S&P 500 |
First Energy Corp | 5.673 | 8.729 | 8.162 | @NA | 10 | S&P 500 |
FPL Group Inc | 1.359 | 10.813 | 1.109 | @NA | 10 | S&P 500 |
Great Plains Energy Inc | -2.562 | 3.855 | 1.216 | @NA | 91 | S&P MidCap 400 |
Green Mountain Power Corp | -27.486 | -6.071 | 27.572 | @NA | 92 | S&P SmallCap 600 |
Hawallan Electric Inds | -0.728 | 3.947 | 7.367 | @NA | 91 | S&P MidCap 400 |
IDACORP Inc | 0.848 | 15.353 | 9.432 | @NA | 91 | S&P MidCap 400 |
Keyspan Corp | -3.576 | 11.129 | 10.026 | @NA | 10 | S&P 500 |
Kinder Morgan Inc | -5.681 | 15.691 | 33.977 | @NA | 10 | S&P 500 |
Laclede Group Inc | 3.482 | 1.921 | 7.507 | 6.915 | 92 | S&P SmallCap 600 |
MDU Resources Group Inc | 13.404 | 19.508 | 5.813 | @NA | 91 | S&P MidCap 400 |
Mlranl Corp | @NA | @NA | @NA | @NA | 10 | S&P 500 |
National Fuel Gas Co | 13.074 | 12.731 | 3.259 | -1.688 | 91 | S&P MidCap 400 |
New Jersey Resources | 17.999 | 12.64 | 12.108 | 11.689 | 92 | S&P SmallCap 600 |
Nicor Inc | 0.725 | 5.072 | 4.071 | @NA | 10 | S&P 500 |
Nisource Inc | 0.554 | 12.294 | -4.552 | @NA | 10 | S&P 500 |
Northeast Utilities | 17.253 | 28.069 | 4.9 | @NA | 91 | S&P MidCap 400 |
Appendix B: S&P Utility Industry Sector Peer Group Continued
Company Name | Ticker | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total |
Northwest Natural Gas Co | NWN | 16.353 | 6.545 | 10.875 | 7.336 | 22.6 | 10.781 |
Northwestern Corp | NOR | 18.659 | 7.11 | 6.113 | 12.681 | 27.28 | 30.299 |
NSTAR | NST | 21.955 | 5.353 | 9.193 | 3.743 | 24.994 | 19.06 |
NUI Corp | NUI | 38.664 | 11.318 | -5.148 | -7.855 | 14.608 | 16.53 |
Duke Energy Corp | DUK | 17.271 | 8.318 | 14.788 | 7.91 | 18.532 | 15.318 |
Dynergy Inc | DYN | @NA | @NA | @NA | 26.113 | 19.011 | 7.56 |
OGE Energy Corp | OGE | 5.531 | -1.934 | 16.463 | 11.944 | 26.338 | 17.169 |
Oneok Inc | OKE | 25.121 | 15.432 | 15.071 | 14.513 | 27.69 | 15.784 |
Peoples Energy Corp | PGL | 18.73 | 6.929 | 2.14 | 8.873 | 19.632 | 15.32 |
Pepco Holdings Inc | POM | 16.688 | -3.319 | 11.027 | 6.34 | 20.138 | 6.875 |
PG&E Corp | PCG | 18.416 | -3.29 | 1.584 | -9.136 | 14.807 | 9.363 |
Philadephia Suburban Corp | PSC | 22.669 | 11.488 | 15.765 | 24.294 | 41.346 | 47.312 |
Piedmonl Natural Gas Co | PNY | 28.797 | 15.598 | 8.846 | 3.981 | 17.39 | 21.771 |
Pinnacle Wast Capital | PNW | 31.172 | 5.91 | 15.576 | 16.831 | 34.096 | 17.645 |
PNM Resources Inc | PNM | 10.337 | 9.886 | 12.511 | 21.154 | 24.504 | 8.153 |
PPL Corp | PPL | 13.998 | -4.147 | 4.363 | 2.326 | 16.424 | 10.961 |
Progress Energy Inc | PGN | 15.469 | 5.375 | 13.876 | 12.849 | 23.198 | 16.499 |
Public Service Entrp | PEG | 14.599 | 3.96 | 7.253 | 2.445 | 14.831 | 17.421 |
Puget Energy Inc | PSD | 14.774 | -2.193 | 2.843 | 7.362 | 23.709 | 14.214 |
Questar Corp | STR | 27.453 | 13.026 | 12.471 | 7.509 | 21.661 | 8.541 |
Reliant Energy Inc | REI | 16.942 | 0.027 | 9.615 | 5.876 | 22.65 | 18.836 |
Scana Corp | SCG | 20.102 | 4.641 | 19.193 | 8.724 | 19.053 | 9.741 |
Sempra Energy | SRE | -11.723 | -3.708 | 20.482 | 14.593 | 27.277 | 16.528 |
Slerra Pacific Resources | SRP | 11.376 | 9.377 | 5.355 | 2.246 | 17.962 | 13.032 |
Southern Co. | SO | 24.3 | 11.513 | 14.869 | 6.72 | 15.326 | 11.638 |
Company Name | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total | S & P | @ desc(spmix) |
Northwest Natural Gas Co | 1.781 | -0.219 | 4.888 | @NA | 92 | S&P SmallCap 600 |
Northwestern Corp | 14.027 | 4.786 | -2.619 | @NA | 92 | S&P SmallCap 600 |
NSTAR | 21.039 | 9.35 | 8.048 | @NA | 91 | S&P MidCap 400 |
NUI Corp | 13.834 | 13.046 | -0.076 | -0.562 | 92 | S&P SmallCap 600 |
Duke Energy Corp | 6.956 | 19.78 | 10.66 | @NA | 10 | S&P 500 |
Dynergy Inc | 1.812 | 64.815 | 48.428 | @NA | 10 | S&P 500 |
OGE Energy Corp | 2.383 | 1.992 | -1.543 | @NA | 91 | S&P MidCap 400 |
Oneok Inc | 8.328 | 10.32 | 3.537 | @NA | 91 | S&P MidCap 400 |
Peoples Energy Corp | 6.578 | 1.532 | 9.249 | 4.246 | 10 | S&P 500 |
Pepco Holdings Inc | 2.8 | 5.284 | 1.066 | @NA | 91 | S&P MidCap 400 |
PG&E Corp | 3.59 | -8.913 | 12.325 | @NA | 10 | S&P 500 |
Philadephia Suburban Corp | 15.261 | 15.028 | 9.197 | @NA | 92 | S&P SmallCap 600 |
Piedmonl Natural Gas Co | 13.991 | 7.407 | 1.565 | @NA | 92 | S&P SmallCap 600 |
Pinnacle Wast Capital | 2.02 | 7.537 | 3.2 | @NA | 10 | S&P 500 |
PNM Resources Inc | -2.568 | 8.435 | 15.261 | @NA | 91 | S&P MidCap 400 |
PPL Corp | 5.637 | 29.038 | 11.434 | @NA | 10 | S&P 500 |
Progress Energy Inc | -1.099 | 10.63 | 3.869 | @NA | 10 | S&P 500 |
Public Service Entrp | 15.701 | 21.903 | 7.434 | @NA | 10 | S&P 500 |
Puget Energy Inc | 0.07 | 4.83 | -0.218 | @NA | 91 | S&P MidCap 400 |
Questar Corp | -3.285 | 14.394 | 12.578 | @NA | 91 | S&P MidCap 400 |
Reliant Energy Inc | 6.384 | 23.75 | -1.344 | @NA | 10 | S&P 500 |
Scana Corp | 5.686 | 4.559 | -0.186 | @NA | 91 | S&P MidCap 400 |
Sempra Energy | 1.195 | 4.009 | 4.67 | @NA | 10 | S&P 500 |
Slerra Pacific Resources | 0.326 | -10.714 | -12.495 | @NA | 91 | S&P MidCap 400 |
Southern Co. | 6.811 | 14.329 | 17.378 | @NA | 10 | S&P 500 |
Appendix B: S&P Utility Industry Sector Peer Group Continued
Company Name | Ticker | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total |
Southern Union Co | SUG | 26.307 | 31.203 | 27.145 | 36.261 | 24.026 | 40.039 |
Southwest Gas Corp | SWX | 13.498 | 15.289 | 13.887 | 11.594 | 15.095 | 19.814 |
Southwestern Energy Co | SWN | 21.954 | 14.007 | 0.99 | -4.047 | -2.967 | -14.466 |
TECO Energy Inc | TE | 15.358 | 3.597 | 12.211 | 7.118 | 16.911 | 8.128 |
TXU Corp | TXU | 13.784 | -1.055 | 7.017 | 5.638 | 16.081 | 10.085 |
UGI Corp | UGI | 22.907 | 3.905 | 5.811 | 5.421 | 21.273 | 10.293 |
UIL Holdings Corp | UIL | 16.339 | -2.252 | 4.146 | -0.095 | 25.939 | 19.891 |
Unisource Energy Corp | UNS | -15.462 | -12.642 | 9.139 | -3.083 | 6.511 | -5.993 |
Vectren Corp | VVC | 24.948 | 8.884 | 8.597 | 6.567 | 20.121 | 18.288 |
Westar Energy Inc | WR | 26.533 | 6.861 | 8.488 | 2.602 | 22.068 | 6.156 |
WGL Holding Inc | WGL | 22.836 | 7.726 | 8.578 | 4.737 | 18.988 | 17.414 |
Williams Cos Inc | WMB | 28.356 | 13.261 | 34.773 | 36.11 | 54.533 | 31.774 |
Wisconsin Energy Corp | WEC | 14.89 | 4.801 | 10.46 | 4.653 | 9.424 | 6.637 |
WPS Resources Corp | WPS | 19.295 | 4.056 | 8.508 | 0.637 | 15.177 | 7.743 |
Xcel Energy Inc | XEL | 14.849 | 6.838 | 10.631 | 8.344 | 16.299 | 10.057 |
Company Name | 3 Year Total | 3 Year Total | 3 Year Total | 3 Year Total | S & P | @ desc(spmix) |
Southern Union Co | 19.738 | 8.018 | 3.178 | -1.693 | 92 | S&P SmallCap 600 |
Southwest Gas Corp | 10.212 | 9.417 | -2.117 | @NA | 92 | S&P SmallCap 600 |
Southwestern Energy Co | -22.382 | -4.606 | 13.323 | @NA | 92 | S&P SmallCap 600 |
TECO Energy Inc | -3.582 | 10.684 | 3.171 | @NA | 10 | S&P 500 |
TXU Corp | 1.08 | 8.495 | 6.545 | @NA | 10 | S&P 500 |
UGI Corp | 5.911 | 2.222 | 12.778 | 23.537 | 92 | S&P SmallCap 600 |
UIL Holdings Corp | 26.175 | 9.108 | 6.187 | @NA | 92 | S&P SmallCap 600 |
Unisource Energy Corp | -12.148 | 1.982 | 12.036 | @NA | 92 | S&P SmallCap 600 |
Vectren Corp | 7.722 | 5.901 | 3.939 | @NA | 91 | S&P MidCap 400 |
Westar Energy Inc | -12.172 | -10.151 | -13.172 | @NA | 91 | S&P MidCap 400 |
WGL Holding Inc | 12.471 | 6.497 | 3.782 | 0.503 | 91 | S&P MidCap 400 |
Williams Cos Inc | 20.014 | 13.794 | -2.33 | @NA | 10 | S&P 500 |
Wisconsin Energy Corp | -5.088 | -1.893 | -5.348 | @NA | 91 | S&P MidCap 400 |
WPS Resources Corp | 2.348 | 9.882 | 8.168 | @NA | 91 | S&P MidCap 400 |
Xcel Energy Inc | 0.32 | 6.03 | 6.145 | @NA | 10 | S&P 500 |