Commission File Number | Registrant, State of Incorporation, Address and Telephone Number | I.R.S. Employer Identification No. | ||
1-9052 | DPL INC. | 31-1163136 | ||
(An Ohio Corporation) | ||||
1065 Woodman Drive Dayton, Ohio 45432 | ||||
1-2385 | THE DAYTON POWER AND LIGHT COMPANY | 31-0258470 | ||
(An Ohio Corporation) | ||||
1065 Woodman Drive Dayton, Ohio 45432 | ||||
DPL Inc. | Yes o | No x |
The Dayton Power and Light Company | Yes o | No x |
DPL Inc. | Yes | No |
The Dayton Power and Light Company | Yes x | No o |
DPL Inc. | Yes | No |
The Dayton Power and Light Company | Yes o | No x |
DPL Inc. | Yes x | No o |
The Dayton Power and Light Company | Yes x | No o |
DPL Inc. | x |
The Dayton Power and Light Company | x |
Large | Non- | Smaller | ||
accelerated | Accelerated | accelerated | reporting | |
filer | filer | filer | company | |
DPL Inc. | o | o | x | o |
The Dayton Power and Light Company | o | o | x | o |
DPL Inc. | Yes o | No x |
The Dayton Power and Light Company | Yes o | No x |
Registrant | Description | Shares Outstanding | ||
DPL Inc. | Common Stock, no par value | 1 | ||
The Dayton Power and Light Company | Common Stock, $0.01 par value | 41,172,173 |
Glossary of Terms | |
Part I | |
Part II | |
Part III | |
Part IV | |
Abbreviation or Acronym | Definition |
AEP Generation | AEP Generation Resources Inc., a subsidiary of American Electric Power Company, Inc. (“AEP”). Columbus Southern Power Company merged into the Ohio Power Company, another subsidiary of AEP, effective December 31, 2011. The Ohio Power generating assets (including jointly-owned units) were transferred into AEP |
AES | The AES Corporation, a global power company, the ultimate parent company of DPL |
AES Ohio Generation | AES Ohio Generation, LLC, |
AFUDC | Allowance for Funds Used During Construction |
AMI | Advanced Metering Infrastructure |
AOCI | Accumulated Other Comprehensive Income |
ARO | Asset Retirement Obligation |
ASU | Accounting Standards Update |
CAA | U.S. Clean Air Act |
Capacity Market | The purpose of the capacity market is to enable PJM to obtain sufficient resources to reliably meet the needs of electric customers within the PJM footprint. PJM procures capacity, through a multi-auction structure, on behalf of the load serving entities to satisfy the load obligations. There are four auctions held for each Delivery Year (running from June 1 through May 31). The Base Residual Auction is held three years in advance of the Delivery Year and there is one Incremental Auction held in each of the subsequent three years. Both DP&L’s and AES Ohio Generation's capacity is located in the “rest of” RTO area of PJM. |
CO2 | Carbon Dioxide |
CP | In 2015, PJM adopted changes to the capacity market known as “Capacity Performance”. The CP program offers the potential for higher capacity revenues, combined with substantially increased penalties for non-performance or under-performance during certain periods identified as “capacity performance hours.” The DP&L and AES Ohio Generation units |
CRES | Competitive Retail Electric Service |
CSAPR | Cross-State Air Pollution Rule |
CWA | U.S. Clean Water Act |
Dark spread | A common metric used to estimate returns over fuel costs of coal-fired |
D.C. Circuit Court | United States Court of Appeals for the District of Columbia Circuit |
DPL | DPL Inc. |
DPLER | DPL Energy Resources, Inc., formerly a wholly-owned subsidiary of DPL which sold competitive electric energy and other energy services, including sales by a wholly-owned subsidiary, MC Squared, which DPLER sold on April 1, 2015. DPLER was sold |
DP&L | The Dayton Power and Light Company, the principal subsidiary of DPL and a public utility which sells, transmits and distributes electricity to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio. DP&L is wholly-owned by DPL |
Dths | Decatherms, unit of heat energy equal to 10 therms. One therm is equal to 100,000 British Thermal Units |
Duke Energy | Affiliates of Duke Energy with which DP&L co-owns |
Dynegy | Dynegy, Inc., the parent of various subsidiaries that, along with AEP Generation and DP&L, co-owns |
GLOSSARY OF TERMS (cont.) | |
Abbreviation or Acronym | Definition |
EBITDA | Earnings before interest, taxes, depreciation and amortization |
EGU | Electric generating unit |
ERISA | The Employee Retirement Income Security Act of 1974 |
ESP | The Electric Security Plan is a cost-based plan that a utility may file with the PUCO to establish SSO rates pursuant to Ohio law |
ESP 1 | ESP approved by PUCO order dated June 24, 2009 |
ESP 2 | ESP approved by PUCO order dated September 4, 2013. The Ohio Supreme Court ruled that it was invalid. DP&L withdrew its ESP 2 on July 27, 2016 and filed an amended application on October 11, 2016. |
ESP 3 | ESP filed with the PUCO by DP&L on February 22, 2016 |
FASB | Financial Accounting Standards Board |
FASC | FASB Accounting Standards Codification |
FERC | Federal Energy Regulatory Commission |
FGD | Flue Gas Desulfurization |
First and Refunding Mortgage | DP&L’s First and Refunding Mortgage, dated October 1, 1935, as amended, with the Bank of New York Mellon as Trustee |
Financial Transmission Rights | |
GAAP | Generally Accepted Accounting Principles in the United States of America |
GHG | Greenhouse gas |
kV | Kilovolts, 1,000 volts |
kWh | Kilowatt hour |
LIBOR | London Inter-Bank Offering Rate |
Master Trust | DP&L established a Master Trust to hold assets that could be used for the benefit of employees participating in employee benefit plans |
MATS | Mercury and Air Toxics Standards |
MC Squared | MC Squared Energy Services, LLC, a retail electricity supplier formerly wholly-owned by DPLER, sold on April 1, 2015 |
Merger | The merger of DPL and Dolphin Sub, Inc. (a wholly-owned subsidiary of AES) in accordance with the terms of an Agreement and Plan of Merger dated April 19, 2011 among DPL, AES and Dolphin Sub, Inc. a wholly-owned subsidiary of AES. On the Merger date, DPL became |
Merger date | November 28, 2011, the date of the closing of the merger of DPL and Dolphin Sub, Inc. |
MRO | Market Rate Option, a market-based plan that a utility may file with PUCO to establish SSO rates pursuant to Ohio law |
MTM | Mark to Market |
MVIC | Miami Valley Insurance Company, a wholly-owned insurance subsidiary of DPL that provides insurance services to DPL and its subsidiaries and, in some cases, insurance services to partner companies relative to jointly-owned facilities operated by DP&L |
MW | Megawatt |
MWh | Megawatt hour |
NAAQS | National Ambient Air Quality Standards |
NAV | Net asset value |
NERC | North American Electric Reliability Corporation |
Non-bypassable | Charges that are assessed to all customers regardless of whom the customer selects as their retail electric generation supplier |
NOV | Notice of Violation |
NOX | Nitrogen Oxide |
NPDES | National Pollutant Discharge Elimination System |
NSR | New Source Review is a preconstruction permitting program regulating new or significantly modified sources of air pollution |
GLOSSARY OF TERMS (cont.) | |
Abbreviation or Acronym | Definition |
NYMEX | New York Mercantile Exchange |
OCC | Ohio Consumers’ Counsel |
OCI | Other Comprehensive Income |
Ohio EPA | Ohio Environmental Protection Agency |
OTC | Over the counter |
OVEC | Ohio Valley Electric Corporation, an electric generating company in which DP&L holds a 4.9% equity interest |
PJM | PJM Interconnection, LLC, an RTO |
PPM | Parts per million |
PRP | Potentially Responsible Party |
PUCO | Public Utilities Commission of Ohio |
ROE | Return on equity |
RPM | The Reliability Pricing Model was PJM’s capacity construct. |
RTO | Regional Transmission Organization |
SB 221 | Ohio Senate Bill 221 is an Ohio electric energy bill that was signed by the Governor on May 1, 2008 and went into effect July 31, 2008. This law required all Ohio distribution utilities to file either an ESP or MRO to be in effect January 1, 2009. The law also contains, among other things, annual targets relating to advanced energy portfolio standards, renewable energy, demand reduction and energy efficiency standards. |
SB 310 | Ohio Senate Bill 310, an Ohio electric energy bill that was passed in May 2014 that required all Ohio utilities to show on each bill the approximate cost of complying with renewable energy, energy efficiency and peak demand requirements. It froze the Ohio renewable and energy efficiency annual targets for two |
SCR | Selective Catalytic Reduction |
SEC | Securities and Exchange Commission |
SEET | Significantly Excessive Earnings Test |
Service Company | AES US Services, LLC, the shared services affiliate providing accounting, finance, and other support services to AES’ U.S. SBU businesses |
SIP | A State Implementation Plan is a plan for complying with the federal CAA, administered by the USEPA. The SIP consists of narrative, rules, technical documentation and agreements that an individual state will use to clean up polluted areas. |
SO2 | Sulfur Dioxide |
SO3 | Sulfur Trioxide |
SSO | Standard Service Offer represents the retail transmission, distribution and generation services offered by |
SSR | Service Stability Rider |
TCRR | Transmission Cost Recovery Rider |
TCRR-N | Transmission Cost Recovery Rider – Nonbypassable |
USEPA | U. S. Environmental Protection Agency |
USF | The Universal Service Fund (USF) is a statewide program which provides qualified low-income customers in Ohio with income-based bills and energy efficiency education programs |
U.S. SBU | U. S. Strategic Business Unit, AES’ reporting unit covering the businesses in the United States, including DPL |
VIE | Variable Interest Entity is an entity in which the investor holds a controlling interest that is not based on the majority of voting rights. |
Item 1 – Business |
Summer Generating Capacity | Coal fired (percent of total) | Combustion Turbines, Diesel Units and Solar (percent of total) | Total | |||||||||
DPL | 2,078 | 68% | 988 | 32% | 3,066 | |||||||
DP&L | 2,078 | 83% | 432 | 17% | 2,510 |
Approximate Summer MW Rating | ||||||||||||
Station | Ownership (1) | Operating Company | Location | DPL Portion (2) | Total | |||||||
Coal Units | ||||||||||||
Killen - Unit 2 | C | DP&L | Wrightsville, OH | 402 | 600 | |||||||
Stuart - Units 1 through 4 ⁽³⁾ | C | DP&L | Aberdeen, OH | 808 | 2,308 | |||||||
Conesville - Unit 4 | C | AEP Generation | Conesville, OH | 129 | 780 | |||||||
Miami Fort - Units 7 & 8 | C | Dynegy | North Bend, OH | 368 | 1,020 | |||||||
Zimmer - Unit 1 | C | Dynegy | Moscow, OH | 371 | 1,320 | |||||||
Sub-total coal | 2,078 | 6,028 | ||||||||||
Solar, Combustion Turbines (CT) or Diesel | ||||||||||||
Hutchings CT Unit 7 | W | DP&L | Miamisburg, OH | 25 | 25 | |||||||
Yankee Units 1 - 7 | W | DP&L | Centerville, OH | 101 | 101 | |||||||
Yankee Solar | W | DP&L | Centerville, OH | 1 | 1 | |||||||
Monument Diesels | W | DP&L | Dayton, OH | 12 | 12 | |||||||
Tait Diesels | W | DP&L | Dayton, OH | 10 | 10 | |||||||
Sidney Diesels | W | DP&L | Sidney, OH | 12 | 12 | |||||||
Tait CT Units 1 - 3 | W | DP&L | Moraine, OH | 256 | 256 | |||||||
Killen CT | C | DP&L | Wrightsville, OH | 12 | 18 | |||||||
Stuart Diesels | C | DP&L | Aberdeen, OH | 3 | 10 | |||||||
Montpelier CT Units 1 - 4 | W | AES Ohio Generation | Poneto, IN | 236 | 236 | |||||||
Tait CT Units 4 - 7 | W | AES Ohio Generation | Moraine, OH | 320 | 320 | |||||||
Sub-total solar, CT or diesel | 988 | 1,001 | ||||||||||
Total approximate summer generating capacity | 3,066 | 7,029 |
(1) | W = Wholly-owned C = Commonly-owned |
(2) | DP&L portion of commonly-owned generating stations |
(3) | On January 10, 2017, a high pressure feedwater heater shell failed on Unit 1 at the J.M. Stuart station. As the damage assessment process is currently ongoing, we cannot determine the impact to operations or capacity at this time. |
Average cost of Fuel Consumed (cents per kWh) | |||||
2016 | 2015 | 2014 | |||
DPL | 2.30 | 2.48 | 2.52 | ||
DP&L | 2.22 | 2.42 | 2.45 |
• | Rules and future rules issued by the USEPA and the Ohio EPA that require substantial reductions in SO2, particulates, mercury, acid gases, NOX, and other air emissions. DP&L has installed emission control technology and is taking other measures to comply with required and anticipated reductions, |
Year ended December 31, 2016 | Year ended December 31, 2015 | Year ended December 31, 2014 | ||||||||||||||||
Electric sales (millions of kWh) | Billed electric customers (end of period) | Electric sales (millions of kWh) | Billed electric customers (end of period) | Electric sales (millions of kWh) | Billed electric customers (end of period) | |||||||||||||
DPL (a) | 16,757 | 519,128 | 14,738 | 516,708 | 14,695 | 515,622 | ||||||||||||
DP&L (b) | 16,158 | 519,128 | 16,424 | 516,708 | 18,613 | 515,622 | ||||||||||||
DPLER (c) | — | — | 5,928 | 124,866 | 9,717 | 260,097 |
(a) | Electric sales excludes 1,976 million kWh and 4,068 million kWh relating to DPLER for the years ended December 31, 2015 and 2014, respectively, and Billed electric customers excludes DPLER customers outside of the DP&L service territory of 14,147 customers and 128,861 customers for the years ended December 31, 2015 and 2014, respectively. |
(b) | Included within this line are 3,952 million kWh and 5,649 million kWh of power that DP&L sold to DPLER within the DP&L service territory for the years ended December 31, 2015 and 2014, respectively. |
(c) | This row includes all customers and sales of DPLER, both within and outside of the DP&L service territory. |
Item 1A – Risk Factors |
Item 1B – Unresolved Staff Comments |
Item 2 – Properties |
Item 3 – Legal Proceedings |
Item 4 – Mine Safety Disclosures |
Item 5 – Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Item 6 – Selected Financial Data |
DPL | ||||||||||||||||||||
$ in millions except per share amounts or as indicated | Year ended December 31, 2016 | Year ended December 31, 2015 | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||
Total electric sales (millions of kWh) | 16,757 | 14,738 | 14,695 | 15,702 | 16,454 | |||||||||||||||
Statements of Operations Data | ||||||||||||||||||||
Revenues | $ | 1,427.3 | $ | 1,612.8 | $ | 1,716.5 | $ | 1,579.0 | $ | 1,668.4 | ||||||||||
Goodwill impairment (a) | $ | — | $ | 317.0 | $ | — | $ | 306.3 | $ | 1,817.2 | ||||||||||
Fixed-asset impairment (b) | $ | 859.0 | $ | — | $ | 11.5 | $ | 26.2 | $ | — | ||||||||||
Operating income / (loss) | $ | (683.9 | ) | $ | (109.9 | ) | $ | 230.7 | $ | (77.4 | ) | $ | (1,559.4 | ) | ||||||
Net income / (loss) from continuing operations | $ | (514.5 | ) | $ | (251.4 | ) | $ | 57.2 | $ | (225.6 | ) | $ | (1,729.8 | ) | ||||||
Net income / (loss) from discontinued operations, net of tax | $ | 29.3 | $ | 12.4 | $ | (131.8 | ) | $ | 3.6 | $ | — | |||||||||
Net income / (loss) | $ | (485.2 | ) | $ | (239.0 | ) | $ | (74.6 | ) | $ | (222.0 | ) | $ | (1,729.8 | ) | |||||
Construction additions | $ | 140.0 | $ | 132.0 | $ | 116.0 | $ | 114.0 | $ | 180.0 | ||||||||||
Balance sheet data (end of period): | ||||||||||||||||||||
Total assets | $ | 2,419.2 | $ | 3,324.7 | $ | 3,559.1 | $ | 3,699.3 | $ | 4,231.4 | ||||||||||
Long-term debt (c) | $ | 1,828.7 | $ | 1,420.5 | $ | 2,120.9 | $ | 2,262.0 | $ | 2,009.1 | ||||||||||
Redeemable preferred stock of subsidiary | $ | — | $ | 18.4 | $ | 18.4 | $ | 18.4 | $ | 18.4 | ||||||||||
Total common shareholder's equity | $ | (587.6 | ) | $ | (80.6 | ) | $ | 148.2 | $ | 239.5 | $ | 426.8 |
DP&L | ||||||||||||||||||||
$ in millions except per share amounts or as indicated | Year ended December 31, 2016 | Year ended December 31, 2015 | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||
Total electric sales (millions of kWh) | 16,158 | 16,424 | 18,613 | 19,423 | 15,606 | |||||||||||||||
Statements of Operations Data | ||||||||||||||||||||
Revenues | $ | 1,365.9 | $ | 1,552.3 | $ | 1,668.3 | $ | 1,551.5 | $ | 1,531.8 | ||||||||||
Fixed-asset impairment (b) | $ | 1,353.5 | $ | — | $ | — | $ | 86.0 | $ | 80.8 | ||||||||||
Operating income | $ | (1,170.1 | ) | $ | 177.8 | $ | 188.8 | $ | 139.9 | $ | 185.0 | |||||||||
Income / (loss) attributable to common stock | $ | (773.4 | ) | $ | 105.5 | $ | 114.1 | $ | 82.7 | $ | 90.3 | |||||||||
Construction additions | $ | 119.0 | $ | 124.0 | $ | 112.0 | $ | 111.0 | $ | 177.0 | ||||||||||
Balance sheet data (end of period): | ||||||||||||||||||||
Total assets | $ | 2,035.1 | $ | 3,359.6 | $ | 3,328.8 | $ | 3,300.4 | $ | 3,457.5 | ||||||||||
Long-term debt (c) | $ | 744.7 | $ | 313.6 | $ | 868.2 | $ | 865.3 | $ | 326.2 | ||||||||||
Redeemable preferred stock | $ | — | $ | 22.9 | $ | 22.9 | $ | 22.9 | $ | 22.9 | ||||||||||
Total common shareholder's equity | $ | 362.3 | $ | 1,212.7 | $ | 1,143.4 | $ | 1,204.0 | $ | 1,299.1 | ||||||||||
Number of shareholders - preferred stock | — | 180 | 186 | 196 | 209 |
(a) | Goodwill impairments of $317.0 million, $306.3 million and $1,817.2 million were recorded in 2015, 2013 and 2012, respectively. The goodwill impairment of $135.8 million in 2014 related to DPLER has been reclassified to discontinued operations. |
(b) | For DPL, fixed-asset impairments of $859.0 million ($558.3 million net of tax), $11.5 million ($7.5 million net of tax) and $26.2 million ($17.0 million net of tax) were recorded in 2016, 2014 and 2013, respectively. For DP&L, fixed-asset impairments of $1,353.5 million ($879.8 million net of tax), $86.0 million ($55.9 million net of tax) and $80.8 million ($51.8 million net of tax) were recorded in 2016, 2013 and 2012, respectively. |
(c) | Excludes current maturities of long-term debt. |
Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations |
◦ | DPL |
▪ | DPL - T&D Segment |
▪ | DPL - Generation Segment |
◦ | DP&L |
▪ | DP&L - T&D Segment |
▪ | DP&L - Generation Segment |
Years ended December 31, | ||||||||||||
$ in millions | 2016 | 2015 | 2014 | |||||||||
Revenues: | ||||||||||||
Retail | $ | 738.7 | $ | 785.2 | $ | 832.5 | ||||||
Wholesale | 477.7 | 598.2 | 685.0 | |||||||||
RTO revenue | 62.4 | 70.1 | 81.9 | |||||||||
RTO capacity revenues | 137.4 | 150.4 | 107.9 | |||||||||
Other revenues | 11.1 | 8.8 | 9.2 | |||||||||
Mark-to-market gains | — | 0.1 | — | |||||||||
Total revenues | 1,427.3 | 1,612.8 | 1,716.5 | |||||||||
Cost of revenues: | ||||||||||||
Cost of Fuel: | ||||||||||||
Fuel | 275.4 | 263.1 | 305.4 | |||||||||
Gains from sale of coal | (6.6 | ) | (3.0 | ) | (1.3 | ) | ||||||
Mark-to-market losses / (gains) | — | (0.3 | ) | 0.4 | ||||||||
Net fuel cost | 268.8 | 259.8 | 304.5 | |||||||||
Purchased power: | ||||||||||||
Purchased power | 322.0 | 336.1 | 323.7 | |||||||||
RTO charges | 78.4 | 97.9 | 154.2 | |||||||||
RTO capacity charges | 21.3 | 122.5 | 107.5 | |||||||||
Mark-to-market losses / (gains) | (4.3 | ) | 6.1 | 2.5 | ||||||||
Net purchased power | 417.4 | 562.6 | 587.9 | |||||||||
Total cost of revenues | 686.2 | 822.4 | 892.4 | |||||||||
Gross margin | $ | 741.1 | $ | 790.4 | $ | 824.1 | ||||||
Operating expenses: | ||||||||||||
Operation and maintenance | 348.1 | 361.3 | 362.4 | |||||||||
Depreciation and amortization | 132.3 | 134.6 | 135.6 | |||||||||
General taxes | 85.7 | 87.0 | 87.8 | |||||||||
Goodwill impairment (Note 7) | — | 317.0 | — | |||||||||
Fixed-asset impairment (Note 15) | 859.0 | — | 11.5 | |||||||||
Other | (0.1 | ) | 0.4 | (3.9 | ) | |||||||
Total operating expenses | 1,425.0 | 900.3 | 593.4 | |||||||||
Operating income / (loss) | (683.9 | ) | (109.9 | ) | 230.7 | |||||||
Other expense, net | ||||||||||||
Investment income | 0.4 | 0.2 | 0.9 | |||||||||
Interest expense | (106.1 | ) | (118.3 | ) | (126.6 | ) | ||||||
Charge for early redemption of debt | (3.1 | ) | (2.1 | ) | (30.9 | ) | ||||||
Other deductions | (0.6 | ) | (1.3 | ) | (1.5 | ) | ||||||
Other expense, net | (109.4 | ) | (121.5 | ) | (158.1 | ) | ||||||
Income / (loss) from continuing operations before income tax (a) | $ | (793.3 | ) | $ | (231.4 | ) | $ | 72.6 |
(a) | For purposes of discussing operating results, we present and discuss Income / (loss) from continuing operations before income tax. This format is useful to investors because it allows analysis and comparability of operating trends and includes the same information that is used by management to make decisions regarding our financial performance. |
Years ended December 31, | ||||||
2016 | 2015 | 2014 | ||||
Heating degree days (a) | 5,034 | 5,163 | 5,950 | |||
Cooling degree days (a) | 1,213 | 1,060 | 977 |
(a) | Heating and cooling degree days are a measure of the relative heating or cooling required for a home or business. The heating degrees in a day are calculated as the difference of the average actual daily temperature below 65 degrees Fahrenheit. For example, if the average temperature on March 20th was 40 degrees Fahrenheit, the heating degrees for that day would be the 25 degree difference between 65 degrees and 40 degrees. In a similar manner, cooling degrees in a day are the difference of the average actual daily temperature in excess of 65 degrees Fahrenheit. |
$ in millions | 2016 vs. 2015 | 2015 vs. 2014 | ||||||
Retail | ||||||||
Rate | $ | (68.7 | ) | $ | (28.7 | ) | ||
Volume | 21.0 | (13.0 | ) | |||||
Other | 1.2 | (5.6 | ) | |||||
Total retail change | (46.5 | ) | (47.3 | ) | ||||
Wholesale | ||||||||
Rate | (124.4 | ) | 4.1 | |||||
Volume | 3.9 | (90.9 | ) | |||||
Total wholesale change | (120.5 | ) | (86.8 | ) | ||||
RTO revenues and RTO capacity revenues | ||||||||
RTO revenues and RTO capacity revenues | (20.7 | ) | 30.7 | |||||
Other | ||||||||
Other | 2.2 | (0.3 | ) | |||||
Total revenue changes | $ | (185.5 | ) | $ | (103.7 | ) |
◦ | Purchased power decreased $14.1 million primarily due to a $55.4 million volume decrease as DP&L no longer purchases power to source DPLER customers due to the sale of DPLER on January 1, 2016. This volume decrease was partially offset by increased purchases as DP&L now sources 100% of SSO load through the competitive bid process in 2016 as opposed to 60% in 2015. DPL purchases power for the SSO load sourced through the competitive bid process and to serve auction load requirements in service territories other than DP&L's. The decrease in volume was also offset by an unfavorable price variance of $41.3 million driven by higher prices in the competitive bid process. |
◦ | RTO charges decreased $19.5 million primarily as a result of no longer having a DP&L retail load obligation as a result of 100% SSO sales being sourced through the competitive auction. RTO charges are incurred by DP&L as a member of PJM and primarily include transmission charges within our network which are incurred and charged to customers in the TCRR-N rider, transmission and congestion losses incurred on DP&L's wholesale revenues, and costs associated with load obligations for retail customers. |
◦ | RTO capacity charges decreased $101.2 million primarily due to DP&L no longer having a retail load requirement in 2016, resulting from the SSO load being 100% sourced through competitive bid in 2016 as opposed to 60% in 2015 and, additionally, from the fact that DP&L did not provide power to DPLER in 2016. The remaining charges primarily relate to serving the load of other parties through their competitive bid process. As noted in the revenue section above, RTO capacity prices are set by an annual auction. |
◦ | Mark-to-market gains increased $10.4 million due to less significant decreases in power prices in 2016, resulting in gains on derivative forward power purchase contracts. |
◦ | Purchased power increased $12.4 million primarily due to a $23.9 million increase as a result of a 6.5% increase in average purchased power price, and also due to increased purchases for our SSO load through the competitive bid process. These increases were partially offset by an $11.5 million volume decrease driven by decreased power purchased to source DPLER customers throughout 2015 due to the sale of MC Squared along with customer switching. The price increase above also includes a partial offset resulting from a $10 million regulatory deferral of OVEC costs that are probable for future recovery. We purchase power for our SSO load sourced through the competitive bid process and to satisfy retail sales volume when generating facilities are not available due to planned and unplanned outages, when market prices are below the marginal costs associated with our generating facilities, or to meet high customer demand. |
◦ | RTO charges decreased $56.3 million as a result of higher transmission and congestion charges incurred in 2014 as well as decreased load obligations as a result of increased SSO sales being sourced through the competitive auction. RTO charges are incurred by DP&L as a member of PJM and primarily include transmission charges within our network which are incurred and charged to customers in the TCRR-N rider, transmission and congestion losses incurred on DP&L's wholesale revenues, and costs associated with load obligations for retail customers. |
◦ | RTO capacity charges increased $15.0 million, driven by a $7.3 million PJM penalty associated with low plant availability in 2015 compared to an approximate $2.4 million penalty recorded in 2014 and higher RTO capacity prices, partially offset by decreased load obligations for retail customers in 2015. As noted above, RTO capacity prices are set by an annual auction. |
◦ | Mark-to-market losses increased $3.6 million. |
$ in millions | 2016 vs. 2015 | |||
Decrease in deferred storm costs as they were recognized in 2015 due to their recovery through customer rates (a) | $ | (17.5 | ) | |
Decrease in generating facilities operating and maintenance expenses | (13.0 | ) | ||
Decrease in expenses due to the reversal of the Economic Development Fund, resulting from the withdrawal of ESP 2 | (3.0 | ) | ||
Decrease in group insurance, associated with the participation in the AES self-insurance plan, and long-term disability expenses | (2.5 | ) | ||
Increase in alternative energy and energy efficiency programs(a) | 13.2 | |||
Increase in uncollectible expenses for the low-income payment program, which is funded by the USF revenue rate rider (a) | 6.2 | |||
Increase in retirement benefits costs | 1.8 | |||
Increase in property insurance | 1.5 | |||
Other, net | 0.1 | |||
Net change in operation and maintenance expense | $ | (13.2 | ) |
(a) | There is corresponding revenue associated with this program resulting in no impact to Net income. |
$ in millions | 2015 vs. 2014 | ||
Decrease in uncollectible expenses for the low-income payment program, which is funded by the USF revenue rate rider (a) | $ | (20.1 | ) |
Increase in deferred storm costs as they were recognized in 2015 due to their recovery through customer rates (a) | 17.5 | ||
Increase in alternative energy and energy efficiency programs (a) | 3.9 | ||
Other, net | (2.4 | ) | |
Net change in operation and maintenance expense | $ | (1.1 | ) |
(a) | There is corresponding revenue associated with this program resulting in no impact to Net income. |
Years ended December 31, | ||||||||||||
$ in millions | 2016 | 2015 | 2014 | |||||||||
T&D | $ | 143.0 | $ | 188.1 | $ | 241.7 | ||||||
Generation | (1,353.9 | ) | (28.7 | ) | (78.0 | ) | ||||||
Other | 417.6 | (390.8 | ) | (91.1 | ) | |||||||
Income / (loss) from continuing operations before income tax | $ | (793.3 | ) | $ | (231.4 | ) | $ | 72.6 |
Years ended December 31, | ||||||||||||
$ in millions | 2016 | 2015 | 2014 | |||||||||
Revenues: | ||||||||||||
Retail | $ | 739.8 | $ | 786.4 | $ | 834.1 | ||||||
Wholesale | 16.1 | 19.7 | 114.2 | |||||||||
RTO revenues | 45.7 | 45.3 | 53.6 | |||||||||
RTO capacity revenues | 6.4 | 5.6 | 19.9 | |||||||||
Total revenues | 808.0 | 857.0 | 1,021.8 | |||||||||
Cost of revenues: | ||||||||||||
Net fuel costs | 5.3 | (9.0 | ) | 21.8 | ||||||||
Purchased power: | ||||||||||||
Purchased power | 258.3 | 238.1 | 283.2 | |||||||||
RTO charges | 58.6 | 60.1 | 73.5 | |||||||||
RTO capacity charges | (0.2 | ) | 19.2 | 30.3 | ||||||||
Net purchased power | 316.7 | 317.4 | 387.0 | |||||||||
Total cost of revenues | 322.0 | 308.4 | 408.8 | |||||||||
Gross margins | 486.0 | 548.6 | 613.0 | |||||||||
Operating expenses: | ||||||||||||
Operation and maintenance | 179.3 | 184.0 | 195.7 | |||||||||
Depreciation and amortization | 71.0 | 71.5 | 75.5 | |||||||||
General taxes | 68.0 | 70.8 | 69.6 | |||||||||
Other | (0.4 | ) | 0.1 | 1.0 | ||||||||
Total operating expenses | 317.9 | 326.4 | 341.8 | |||||||||
Operating income | 168.1 | 222.2 | 271.2 | |||||||||
Other income / (expense), net: | ||||||||||||
Investment income | 0.4 | 0.3 | 0.9 | |||||||||
Interest expense | (24.7 | ) | (28.9 | ) | (29.8 | ) | ||||||
Charge for early redemption of debt | (0.5 | ) | (4.8 | ) | — | |||||||
Other deductions | (0.3 | ) | (0.7 | ) | (0.6 | ) | ||||||
Total other expense, net | (25.1 | ) | (34.1 | ) | (29.5 | ) | ||||||
Income from continuing operations before income taxes (a) | $ | 143.0 | $ | 188.1 | $ | 241.7 |
(a) | For purposes of discussing operating results, we present and discuss Income / (loss) from continuing operations before income tax. This format is useful to investors because it allows analysis and comparability of operating trends and includes the same information that is used by management to make decisions regarding our financial performance. |
◦ | Purchased power increased $20.2 million primarily due to an unfavorable price variance driven by prices in the competitive bid process. DP&L T&D now sources 100% of SSO load through the competitive bid process in 2016 as opposed to 60% in 2015. The T&D segment purchases power for its SSO load. In 2015, the 40% that was not sourced through the competitive bid process was purchased from the Generation segment at PJM market prices. |
◦ | RTO capacity and other charges decreased $20.9 million driven by decreased load obligations for retail customers as DP&L's retail load fully transitioned to market and was fully sourced through the competitive bid process in 2016. RTO charges are incurred by DP&L T&D as a member of PJM and primarily include transmission charges within our network which are incurred and charged to customers in the TCRR-N rider, transmission and congestion losses incurred on DP&L's wholesale revenues, and costs associated with load obligations for retail customers. |
◦ | Purchased power decreased $45.1 million primarily due to decreased retail sales and, therefore, decreased SSO load requirements along with decreased average prices. The T&D segment purchases power for its SSO load. In 2015, the 40% that was not sourced through the competitive bid process was purchased from the Generation segment at PJM market prices. |
◦ | RTO capacity and other charges decreased $24.5 million primarily as a result of the closure of Beckjord and the sale of East Bend in 2014, as the costs associated with these plants were no longer incurred in 2015. In addition, the decrease in these charges was due to decreased load obligations as a result of increased SSO sales being sourced through the competitive auction. RTO charges are incurred by DP&L T&D as a member of PJM and primarily include transmission charges within our network which are incurred and charged to customers in the TCRR-N rider, transmission and congestion losses incurred on DP&L's wholesale revenues, and costs associated with load obligations for retail customers. |
$ in millions | 2016 vs. 2015 | 2015 vs. 2014 | ||||||
Increase / (decrease) in deferred storm costs as they were recognized in 2015 due to their recovery through customer rates (a) | $ | (17.5 | ) | $ | 17.5 | |||
Increase in alternative energy and energy efficiency programs (a) | 13.2 | 4.3 | ||||||
Increase / (decrease) in uncollectible expenses for the low-income payment program, which is funded by the USF revenue rate rider (a) | 6.2 | (20.1 | ) | |||||
Decrease in expenses due to the reversal of the Economic Development Fund, resulting from the withdrawal of ESP 2 | (3.0 | ) | — | |||||
Increase / (decrease) in General taxes | (2.8 | ) | 1.2 | |||||
Decrease in generating facilities operating and maintenance expenses, primarily due the sale of East Bend and closure of Beckjord in 2014 | (2.7 | ) | (14.6 | ) | ||||
Decrease in retirement benefits costs | (1.5 | ) | (0.9 | ) | ||||
Decrease in Depreciation and amortization, primarily due to the sale of East Bend and closure of Beckjord in 2014. | (0.5 | ) | (4.0 | ) | ||||
Other, net | 0.1 | 1.2 | ||||||
Net change in operating expenses | $ | (8.5 | ) | $ | (15.4 | ) |
(a) | There is corresponding revenue associated with this program resulting in no impact to Net income. |
Years ended December 31, | ||||||||||||
$ in millions | 2016 | 2015 | 2014 | |||||||||
Revenues: | ||||||||||||
Retail | $ | 0.3 | $ | 0.4 | $ | 0.1 | ||||||
Wholesale | 463.6 | 786.8 | 678.2 | |||||||||
RTO revenues | 16.7 | 24.8 | 28.3 | |||||||||
RTO capacity revenues | 131.0 | 144.8 | 88.0 | |||||||||
Mark-to-market gains / (losses) | (0.1 | ) | 0.1 | — | ||||||||
Total revenues | 611.5 | 956.9 | 794.6 | |||||||||
Cost of revenues: | ||||||||||||
Cost of fuel: | ||||||||||||
Fuel | 269.8 | 272.1 | 307.6 | |||||||||
Gains from sale of coal | (6.3 | ) | (3.0 | ) | (1.6 | ) | ||||||
Mark-to-market losses / (gains) | — | (0.3 | ) | 0.4 | ||||||||
Net fuel costs | 263.5 | 268.8 | 306.4 | |||||||||
Purchased power: | ||||||||||||
Purchased power | 63.7 | 303.8 | 143.3 | |||||||||
RTO charges | 19.8 | 40.3 | 85.6 | |||||||||
RTO capacity charges | 21.5 | 103.3 | 77.2 | |||||||||
Mark-to-market losses / (gains) | (4.4 | ) | 6.1 | 2.5 | ||||||||
Net purchased power | 100.6 | 453.5 | 308.6 | |||||||||
Total cost of revenues | 364.1 | 722.3 | 615.0 | |||||||||
Gross margins | 247.4 | 234.6 | 179.6 | |||||||||
Operating expenses: | ||||||||||||
Operation and maintenance | 174.7 | 171.3 | 163.3 | |||||||||
Depreciation and amortization | 55.4 | 72.6 | 75.3 | |||||||||
General taxes | 17.6 | 16.0 | 18.1 | |||||||||
Fixed-asset impairment | 1,353.5 | — | — | |||||||||
Other | 0.3 | 0.3 | (4.5 | ) | ||||||||
Total operating expenses | 1,601.5 | 260.2 | 252.2 | |||||||||
Operating loss | (1,354.1 | ) | (25.6 | ) | (72.6 | ) | ||||||
Other income / (expense), net: | ||||||||||||
Interest expense | (0.4 | ) | (2.9 | ) | (5.0 | ) | ||||||
Charge for early redemption of debt | — | (0.2 | ) | — | ||||||||
Other deductions | 0.6 | — | (0.4 | ) | ||||||||
Total other expense, net | 0.2 | (3.1 | ) | (5.4 | ) | |||||||
Loss from continuing operations before income taxes (a) | $ | (1,353.9 | ) | $ | (28.7 | ) | $ | (78.0 | ) |
(a) | For purposes of discussing operating results, we present and discuss Income / (loss) from continuing operations before income tax. This format is useful to investors because it allows analysis and comparability of operating trends and includes the same information that is used by management to make decisions regarding our financial performance. |
◦ | Purchased power decreased $240.1 million primarily due to decreased power purchased to source DPLER customers, as DP&L previously had full requirements sales to DPLER in 2015. We purchase power to source retail load in other service territories and to source DPLER customers in 2015. The generation segment also purchases power to meet contracted Wholesale requirements when generating facilities are not available due to planned and unplanned outages or when market prices are below the marginal costs associated with our generating facilities. |
◦ | RTO charges decreased $20.5 million primarily as a result of no longer having load obligations on sales to DPLER. RTO charges are incurred as a member of PJM and include costs associated with the segment's load obligations and transmission and congestion losses incurred on the segments wholesale revenues. |
◦ | RTO capacity charges decreased $81.8 million primarily due to the segment no longer providing power to DPLER in 2016. The remaining charges primarily relate to serving the load of other parties through their competitive bid process. As noted in the revenue section above, RTO capacity prices are set by an annual auction. |
◦ | Mark-to-market gains increased $10.5 million due to less significant decreases in power prices in 2016 causing gains on derivative forward power purchase contracts. |
◦ | Purchased power increased $160.5 million. However, the Generation segment variance for Wholesale revenue for 2015 compared to 2014 should be analyzed net of the change in purchased power because the netting for the Generation segment is not comparable to the netting in 2015, as discussed in the Wholesale revenue section above. We purchase power to source retail load in other service territories and to source DPLER customers in 2015 and 2014. The generation segment also purchases power to meet contracted Wholesale requirements when generating facilities are not available due to planned and unplanned outages or when market prices are below the marginal costs associated with our generating facilities. |
◦ | RTO charges decreased $45.3 million as a result of higher transmission and congestion charges incurred in 2014 due to severe weather and decreased DPLER load obligations in 2015. RTO charges are incurred as a member of PJM and include costs associated with the segment's load obligations. |
◦ | RTO capacity charges increased $26.1 million driven by a $7.3 million PJM penalty associated with low plant availability in 2015 compared to an approximate $2.4 million penalty recorded in 2014 and higher RTO capacity prices, partially offset by decreased DPLER load obligations in 2015. As noted above, RTO capacity prices are set by an annual auction. |
◦ | Mark-to-market losses decreased $3.6 million. |
$ in millions | 2016 vs. 2015 | 2015 vs. 2014 | ||||||
Fixed-asset impairment in 2016 (a) | $ | 1,353.5 | $ | — | ||||
Decrease in Depreciation and amortization (b) | (17.2 | ) | (2.7 | ) | ||||
Increase / (decrease) in generating facilities operating and maintenance expenses | (12.0 | ) | 13.6 | |||||
Increase / (decrease) in insurance and claims reserve due to insurance proceeds received from MVIC in 2015 | 6.5 | (4.2 | ) | |||||
Increase / (decrease) in retirement benefits costs | 4.3 | (1.8 | ) | |||||
Increase in legal and other consulting fees | 2.4 | 3.0 | ||||||
Increase / (decrease) in General taxes | 1.6 | (2.1 | ) | |||||
Other, net | 2.2 | 2.2 | ||||||
Net change in operating expenses | $ | 1,341.3 | $ | 8.0 |
(a) | As the purchase accounting adjustments were not pushed down to DP&L, DPL's Generation segment's fixed-asset impairments, without the effect of the purchase accounting adjustments, were $1,353.5 million during the year ended December 31, 2016. In the second quarter of 2016, DP&L recorded an $857.1 million fixed asset impairment, as DP&L performed a long-lived asset impairment test and determined that the carrying amounts of the asset groups of Killen and certain DP&L peaking generating facilities were not recoverable. In the fourth quarter of 2016, DP&L recorded an additional $496.4 million fixed asset impairment as DP&L performed a long-lived asset impairment analysis for the Killen, Stuart, Miami Fort, Zimmer and Conesville coal-fired facility asset groups, as well as the Hutchings gas-fired peaking plant asset group and determined that their carrying amounts were not recoverable. For more information on these impairments, see Note 14 – Fixed-asset Impairment of Notes to DP&L's Consolidated Financial Statements. The difference between the impairment recorded on DPL and the impairment recorded on DP&L represents the difference between the carrying value of the assets prior to the impairments. |
(b) | During the year ended December 31, 2016, Depreciation and amortization expense decreased $17.2 million compared to the prior year. The decrease was primarily due to the fixed asset impairment in Q2 of 2016, which reduced depreciation expense due to the lower asset values. |
Years ended December 31, | ||||||||||||
$ in millions | 2016 | 2015 | 2014 | |||||||||
Revenues: | ||||||||||||
Retail | $ | 740.0 | $ | 786.7 | $ | 834.2 | ||||||
Wholesale | 453.9 | 576.2 | 666.0 | |||||||||
RTO revenues | 58.2 | 65.7 | 77.6 | |||||||||
RTO capacity revenues | 113.9 | 123.6 | 90.5 | |||||||||
Mark-to-market gains / (losses) | (0.1 | ) | 0.1 | — | ||||||||
Total revenues | 1,365.9 | 1,552.3 | 1,668.3 | |||||||||
Cost of revenues: | ||||||||||||
Cost of fuel: | ||||||||||||
Fuel | 255.5 | 248.0 | 315.8 | |||||||||
Gains from sale of coal | (6.6 | ) | (3.1 | ) | (1.3 | ) | ||||||
Mark-to-market losses / (gains) | — | (0.2 | ) | 0.4 | ||||||||
Net fuel costs | 248.9 | 244.7 | 314.9 | |||||||||
Purchased power: | ||||||||||||
Purchased power | 321.2 | 336.5 | 322.9 | |||||||||
RTO charges | 77.2 | 94.1 | 150.4 | |||||||||
RTO capacity charges | 20.0 | 119.1 | 106.7 | |||||||||
Mark-to-market losses / (gains) | (4.3 | ) | 6.0 | 2.4 | ||||||||
Net purchased power | 414.1 | 555.7 | 582.4 | |||||||||
Total cost of revenues | 663.0 | 800.4 | 897.3 | |||||||||
Gross margins | 702.9 | 751.9 | 771.0 | |||||||||
Operating expenses: | ||||||||||||
Operation and maintenance | 343.2 | 350.5 | 355.2 | |||||||||
Depreciation and amortization | 120.3 | 138.2 | 144.8 | |||||||||
General taxes | 83.8 | 85.0 | 85.7 | |||||||||
Gain on termination of contract | (27.7 | ) | — | — | ||||||||
Fixed-asset impairment | 1,353.5 | — | — | |||||||||
Other | (0.1 | ) | 0.4 | (3.5 | ) | |||||||
Total operating expenses | 1,873.0 | 574.1 | 582.2 | |||||||||
Operating income / (loss) | (1,170.1 | ) | 177.8 | 188.8 | ||||||||
Other income / (expense), net | ||||||||||||
Investment income | 0.4 | 0.3 | 0.9 | |||||||||
Interest expense | (24.5 | ) | (30.9 | ) | (33.9 | ) | ||||||
Charge for early redemption of debt | (0.5 | ) | (5.0 | ) | — | |||||||
Other deductions | (0.4 | ) | (0.7 | ) | (1.1 | ) | ||||||
Other expense, net | (25.0 | ) | (36.3 | ) | (34.1 | ) | ||||||
Income / (loss) from operations before income tax (a) | $ | (1,195.1 | ) | $ | 141.5 | $ | 154.7 |
(a) | For purposes of discussing operating results, we present and discuss Income / (loss) from operations before income tax. This format is useful to investors because it allows analysis and comparability of operating trends and includes the same information that is used by management to make decisions regarding our financial performance. |
$ in millions | 2016 vs. 2015 | 2015 vs. 2014 | ||||||
Retail | ||||||||
Rate | $ | (69.4 | ) | $ | (28.7 | ) | ||
Volume | 20.2 | (13.0 | ) | |||||
Other | 2.5 | (5.8 | ) | |||||
Total retail change | (46.7 | ) | (47.5 | ) | ||||
Wholesale | ||||||||
Rate | (111.9 | ) | 5.8 | |||||
Volume | (10.4 | ) | (95.6 | ) | ||||
Total wholesale change | (122.3 | ) | (89.8 | ) | ||||
RTO revenues and RTO capacity revenues | ||||||||
RTO revenues and RTO capacity revenues | (17.2 | ) | 21.2 | |||||
Other | ||||||||
Unrealized MTM | (0.2 | ) | 0.1 | |||||
Total revenues change | $ | (186.4 | ) | $ | (116.0 | ) |
◦ | Purchased power decreased $15.3 million primarily due to a $55.7 million volume decrease largely attributable to the fact that DP&L no longer purchases power to source DPLER customers due to the DPLER contract termination associated with the sale of DPLER by DPL on January 1, 2016. The decrease in volume due to the sale of DPLER was partially offset by increased purchases as DP&L now sources 100% of SSO load through the competitive bid process in 2016 as opposed to 60% in 2015. DP&L purchases power for the SSO load sourced through the competitive bid process and to serve auction load requirements in service territories other than DP&L's. The decrease in volume was also partially offset by an unfavorable price variance of $40.4 million driven by prices in the competitive bid process. |
◦ | RTO charges decreased $16.9 million primarily as a result of no longer having a DP&L retail load obligation as a result of 100% SSO sales being sourced through the competitive auction. RTO charges are incurred by DP&L as a member of PJM and primarily include transmission charges within our network which are incurred and charged to customers in the TCRR-N rider, transmission and congestion losses incurred on DP&L's wholesale revenues, and costs associated with load obligations for retail customers. |
◦ | RTO capacity and other costs decreased $99.1 million primarily due to DP&L no longer having a retail load requirement in 2016, resulting from the SSO load being 100% sourced through competitive bid in 2016 as opposed to 60% in 2015 and resulting from the fact that DP&L no longer provides power to DPLER in 2016. The remaining charges primarily relate to serving the load of other parties through their competitive bid process. As noted in the revenue section above, RTO capacity prices are set by an annual auction. |
◦ | Mark-to-market gains increased $10.3 million due to less significant decreases in power prices in 2016, causing gains on derivative forward power purchase contracts. |
◦ | Purchased power costs increased $13.6 million, primarily due to a $24.3 million price increase, partially offset by a $10.7 million volume decrease. We purchase power for our SSO load sourced through the competitive bid process and to satisfy retail sales volume when generating facilities are not available due to planned and unplanned outages, when market prices are below the marginal costs associated with our generating facilities, or to meet high customer demand. The increase above includes a partial offset resulting from a $10 million regulatory deferral of OVEC costs that are probable for future recovery. |
◦ | RTO charges decreased $56.3 million as a result of higher transmission and congestion charges incurred in 2014 due to severe weather and decreased load obligations in 2015. RTO charges are incurred as a member of PJM and include costs associated with DP&L’s load obligations for retail customers. |
◦ | RTO capacity and other costs increased $12.4 million driven by a $7.3 million PJM penalty associated with low plant availability in 2015 and higher RTO capacity prices, partially offset by decreased load obligations for retail customers in 2015. As noted above, RTO capacity prices are set by an annual auction. |
◦ | Mark-to-market losses increased $3.6 million. |
$ in millions | 2016 vs. 2015 | |||
Decrease in deferred storm costs as they were all recognized in 2015 due to their recovery through customer rates (a) | $ | (17.5 | ) | |
Decrease in generating facilities operating and maintenance expenses | (12.2 | ) | ||
Decrease in expenses due to the reversal of the Economic Development Fund, resulting from the withdrawal of ESP 2 | (3.0 | ) | ||
Increase in alternative energy and energy efficiency programs(a) | 13.2 | |||
Increase in uncollectible expenses for the low-income payment program, which is funded by the USF revenue rate rider (a) | 6.2 | |||
Increase in retirement benefits | 2.9 | |||
Increase in property insurance | 1.6 | |||
Other, net | 1.5 | |||
Net change in operation and maintenance expense | $ | (7.3 | ) |
(a) | There is corresponding revenue associated with this program resulting in no impact to Net income. |
$ in millions | 2015 vs. 2014 | |||
Decrease in uncollectible expenses for the low-income payment program, which is funded by the USF revenue rate rider (a) | $ | (20.1 | ) | |
Decrease in generating facilities operating and maintenance expenses | (5.7 | ) | ||
Increase in deferred storm costs as they were recognized in 2015 due to their recovery through customer rates (a) | 17.5 | |||
Increase in alternative energy and energy efficiency programs (a) | 3.9 | |||
Other, net | (0.3 | ) | ||
Net change in operation and maintenance expense | $ | (4.7 | ) |
(a) | There is corresponding revenue associated with this program resulting in no impact to Net income. |
Years ended December 31, | ||||||||||||
$ in millions | 2016 | 2015 | 2014 | |||||||||
T&D | $ | 143.6 | $ | 189.0 | $ | 242.6 | ||||||
Generation | (1,338.7 | ) | (47.5 | ) | (87.9 | ) | ||||||
Income / (loss) from operations before income tax | $ | (1,195.1 | ) | $ | 141.5 | $ | 154.7 |
Years ended December 31, | ||||||||||||
$ in millions | 2016 | 2015 | 2014 | |||||||||
Revenues: | ||||||||||||
Retail | $ | 0.2 | $ | 0.3 | $ | 0.1 | ||||||
Wholesale | 437.8 | 762.8 | 657.1 | |||||||||
RTO revenues | 12.5 | 20.4 | 24.0 | |||||||||
RTO capacity revenues | 107.5 | 118.0 | 70.6 | |||||||||
Mark-to-market gains / (losses) | (0.1 | ) | 0.1 | — | ||||||||
Total revenues | 557.9 | 901.6 | 751.8 | |||||||||
Cost of revenues: | ||||||||||||
Cost of fuel: | ||||||||||||
Fuel | 249.9 | 257.0 | 294.3 | |||||||||
Gains from sale of coal | (6.3 | ) | (3.1 | ) | (1.6 | ) | ||||||
Mark-to-market losses / (gains) | — | (0.2 | ) | 0.4 | ||||||||
Net fuel costs | 243.6 | 253.7 | 293.1 | |||||||||
Purchased power: | ||||||||||||
Purchased power | 62.9 | 302.2 | 140.1 | |||||||||
RTO charges | 18.6 | 36.5 | 81.8 | |||||||||
RTO capacity charges | 20.2 | 99.9 | 76.4 | |||||||||
Mark-to-market losses / (gains) | (4.3 | ) | 6.0 | 2.4 | ||||||||
Net purchased power | 97.4 | 444.6 | 300.7 | |||||||||
Total cost of revenues | 341.0 | 698.3 | 593.8 | |||||||||
Gross margins | 216.9 | 203.3 | 158.0 | |||||||||
Operating expenses: | ||||||||||||
Operation and maintenance | 163.9 | 166.5 | 159.5 | |||||||||
Depreciation and amortization | 49.3 | 66.7 | 69.3 | |||||||||
General taxes | 15.8 | 14.2 | 16.1 | |||||||||
Gain on termination of contract | (27.7 | ) | — | — | ||||||||
Fixed-asset impairment | 1,353.5 | — | — | |||||||||
Other | 0.3 | 0.3 | (4.5 | ) | ||||||||
Total operating expenses | 1,555.1 | 247.7 | 240.4 | |||||||||
Operating income | (1,338.2 | ) | (44.4 | ) | (82.4 | ) | ||||||
Other income / (expense), net: | ||||||||||||
Interest expense | (0.5 | ) | (2.9 | ) | (5.0 | ) | ||||||
Other deductions | — | (0.2 | ) | (0.5 | ) | |||||||
Total other expense, net | (0.5 | ) | (3.1 | ) | (5.5 | ) | ||||||
Income / (loss) from operations before income tax (a) | $ | (1,338.7 | ) | $ | (47.5 | ) | $ | (87.9 | ) |
(a) | For purposes of discussing operating results, we present and discuss Income / (loss) operations before income tax. This format is useful to investors because it allows analysis and comparability of operating trends and includes the same information that is used by management to make decisions regarding our financial performance. |
◦ | Purchased power decreased $239.3 million primarily due to decreased power purchased to source DPLER customers, as DP&L previously had full requirements sales to DPLER in 2015. We purchase power to source retail load in other service territories and to source DPLER customers in 2015. The generation segment also purchases power to meet contracted Wholesale requirements when generating facilities are not available due to planned and unplanned outages or when market prices are below the marginal costs associated with our generating facilities. |
◦ | RTO charges decreased $17.9 million primarily as a result of no longer having load obligations on sales to DPLER. RTO charges are incurred as a member of PJM and include costs associated with the segment's load obligations and transmission and congestion losses incurred on the segments wholesale revenues. |
◦ | RTO capacity charges decreased $79.7 million primarily due to the segment no longer providing power to DPLER in 2016. The remaining charges primarily relate to serving the load of other parties through their competitive bid process. As noted in the revenue section above, RTO capacity prices are set by an annual auction. |
◦ | Mark-to-market losses (gains) increased $10.3 million due to less significant decreases in power prices in 2016 causing gains on derivative forward power purchase contracts. |
◦ | Purchased power increased $162.1 million. However, the Generation segment variance for Wholesale revenue for 2015 compared to 2014 should analyzed net of the change in purchased power because the netting for the Generation segment is not comparable to the netting in 2015, as discussed in the Wholesale revenue section above. We purchase power to source retail load in other service territories and to source DPLER customers in 2015 and 2014. The generation segment also purchases power to meet contracted Wholesale requirements when generating facilities are not available due to planned and unplanned outages or when market prices are below the marginal costs associated with our generating facilities. |
◦ | RTO charges decreased $45.3 million as a result of higher transmission and congestion charges incurred in 2014 due to severe weather and decreased DPLER load obligations in 2015. RTO charges are incurred as a member of PJM and include costs associated with the segment's load obligations. |
◦ | RTO capacity charges increased $23.5 million driven by a $7.3 million PJM penalty associated with low plant availability in 2015 compared to an approximate $2.4 million penalty recorded in 2014 and higher RTO capacity prices, partially offset by decreased DPLER load obligations in 2015. As noted above, RTO capacity prices are set by an annual auction. |
◦ | Mark-to-market losses increased $3.6 million. |
$ in millions | 2016 vs. 2015 | 2015 vs. 2014 | ||||||
Fixed-asset impairment in 2016 (a) | $ | 1,353.5 | $ | — | ||||
Gain on termination of contract | (27.7 | ) | — | |||||
Decrease in Depreciation and amortization (b) | (17.4 | ) | (2.6 | ) | ||||
Increase / (decrease) in generating facilities operating and maintenance expenses | (11.2 | ) | 7.6 | |||||
Increase / (decrease) in retirement benefits costs | 4.3 | (1.8 | ) | |||||
Increase in legal and other consulting fees | 2.4 | 2.9 | ||||||
Increase / (decrease) in General taxes | 1.6 | (1.9 | ) | |||||
Other, net | 1.9 | 3.1 | ||||||
Net change in operating expenses | $ | 1,307.4 | $ | 7.3 |
(a) | During the year ended December 31, 2016, DP&L recorded an impairment of fixed-assets of $1,353.5 million. In the second quarter of 2016, DP&L recorded an $857.1 million fixed asset impairment, as DP&L performed a long-lived asset impairment test and determined that the carrying amounts of the asset groups of Stuart, Killen and Zimmer were not recoverable. In the fourth quarter of 2016, DP&L recorded an additional $496.4 million fixed asset impairment as DP&L performed a long-lived asset impairment analysis for the Killen, Stuart, Miami Fort, Zimmer and Conesville coal-fired facility asset groups, as well as the Hutchings gas-fired peaking plant asset group and determined that their carrying amounts were not recoverable. For more information on these impairments, see Note 14 – Fixed-asset Impairment of Notes to DP&L's Consolidated Financial Statements. |
(b) | During the year ended December 31, 2016, Depreciation and amortization expense decreased $17.4 million compared to the prior year. The decrease was primarily due to the fixed asset impairment in Q2 of 2016, which reduced depreciation expense due to the lower asset values. |
DPL | Years ended December 31, | |||||||||||
$ in millions | 2016 | 2015 | 2014 | |||||||||
Net cash provided by operating activities | $ | 267.1 | $ | 308.5 | $ | 244.1 | ||||||
Net cash used in investing activities | (77.8 | ) | (136.7 | ) | (112.6 | ) | ||||||
Net cash used in financing activities | (167.1 | ) | (156.4 | ) | (167.7 | ) | ||||||
Net increase / (decrease) in cash | 22.2 | 15.4 | (36.2 | ) | ||||||||
Balance at beginning of period | 32.4 | 17.0 | 53.2 | |||||||||
Cash and cash equivalents at end of period | $ | 54.6 | $ | 32.4 | $ | 17.0 |
For the years ended December 31, | $ change | |||||||||||||||||||
$ in millions | 2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||||
Net loss | $ | (485.2 | ) | $ | (239.0 | ) | $ | (74.6 | ) | $ | (246.2 | ) | $ | (164.4 | ) | |||||
Depreciation and amortization | 138.0 | 143.6 | 147.6 | (5.6 | ) | (4.0 | ) | |||||||||||||
Impairment expenses | 859.0 | 317.0 | 147.3 | 542.0 | 169.7 | |||||||||||||||
Charge for early redemption of debt | 3.1 | 2.1 | 30.9 | 1.0 | (28.8 | ) | ||||||||||||||
Other adjustments to Net loss | (359.7 | ) | (10.9 | ) | 16.8 | (348.8 | ) | (27.7 | ) | |||||||||||
Net loss, adjusted for non-cash items | 155.2 | 212.8 | 268.0 | (57.6 | ) | (55.2 | ) | |||||||||||||
Net change in operating assets and liabilities | 111.9 | 95.7 | (23.9 | ) | 16.2 | 119.6 | ||||||||||||||
Net cash provided by operating activities | $ | 267.1 | $ | 308.5 | $ | 244.1 | $ | (41.4 | ) | $ | 64.4 |
$ in millions | $ Change | ||
Increase from inventory primarily due to lower coal purchases in 2016 | $ | 41.0 | |
Decrease from accounts receivable primarily due to timing of collections | (19.2 | ) | |
Other | (5.6 | ) | |
Total increase in cash from changes in operating assets and liabilities | $ | 16.2 |
$ in millions | $ Change | ||
Increase from Accounts receivable primarily due to the settlement of a receivable balance related to the sale of MC Squared in 2015 and timing of collections. | $ | 42.9 | |
Increase from Other current and deferred liabilities primarily related to a one-time payment in 2014 to terminate an unfavorable coal contract | 30.2 | ||
Increase from Accrued taxes payable is primarily due to an increase in accrued federal income tax expense year over year. | 23.1 | ||
Increase from Deferred regulatory costs, net is primarily due to collection of deferred storm costs in 2015. | 16.4 | ||
Other | 7.0 | ||
Total increase in cash from changes in operating assets and liabilities | $ | 119.6 |
DP&L | Years ended December 31, | |||||||||||
$ in millions | 2016 | 2015 | 2014 | |||||||||
Net cash provided by operating activities | $ | 264.8 | $ | 256.7 | $ | 251.7 | ||||||
Net cash used in investing activities | (133.4 | ) | (122.5 | ) | (108.5 | ) | ||||||
Net cash used in financing activities | (135.2 | ) | (134.2 | ) | (160.7 | ) | ||||||
Net increase / (decrease) in cash | (3.8 | ) | — | (17.5 | ) | |||||||
Balance at beginning of period | 5.4 | 5.4 | 22.9 | |||||||||
Cash and cash equivalents at end of period | $ | 1.6 | $ | 5.4 | $ | 5.4 |
For the years ended December 31, | $ change | |||||||||||||||||||
$ in millions | 2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||||
Net income / (loss) | $ | (772.7 | ) | $ | 106.4 | $ | 115.0 | $ | (879.1 | ) | $ | (8.6 | ) | |||||||
Depreciation and amortization | 123.2 | 141.1 | 147.9 | (17.9 | ) | (6.8 | ) | |||||||||||||
Impairment expenses | 1,353.5 | — | — | 1,353.5 | — | |||||||||||||||
Other adjustments to Net income / (loss) | (481.7 | ) | (13.1 | ) | 6.1 | (468.6 | ) | (19.2 | ) | |||||||||||
Net income / (loss), adjusted for non-cash items | 222.3 | 234.4 | 269.0 | (12.1 | ) | (34.6 | ) | |||||||||||||
Net change in operating assets and liabilities | 42.5 | 22.3 | (17.3 | ) | 20.2 | 39.6 | ||||||||||||||
Net cash provided by operating activities | $ | 264.8 | $ | 256.7 | $ | 251.7 | $ | 8.1 | $ | 5.0 |
$ in millions | $ Change | ||
Increase from inventory primarily due to lower coal purchases compared to prior year | $ | 41.3 | |
Decrease from accounts receivable primarily due to timing of collections | (38.4 | ) | |
Increase from accounts payable due to timing of payments | 21.8 | ||
Other | (4.5 | ) | |
Total increase in cash from changes in operating assets and liabilities | $ | 20.2 |
$ in millions | $ Change | ||
Increase from accounts receivable due to timing of collections | $ | 35.8 | |
Increase from Deferred regulatory costs, net is primarily due to collection of deferred storm costs in 2015. | 16.4 | ||
Increase from inventory primarily due to lower coal purchases compared to prior year | 15.5 | ||
Decrease from accounts payable due to timing of payments | (38.2 | ) | |
Other | 10.1 | ||
Total increase in cash from changes in operating assets and liabilities | $ | 39.6 |
$ in millions | Type | Maturity | Commitment | Amounts available as of December 31, 2016 | ||||||||
DPL | Revolving | July 2020 | $ | 205.0 | $ | 203.3 | ||||||
DP&L | Revolving | July 2020 | 175.0 | 173.6 | ||||||||
$ | 380.0 | $ | 376.9 |
Actual | Projected | |||||||||||||||||||||||
$ in millions | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||
DPL | $ | 116 | $ | 132 | $ | 140 | $ | 172 | $ | 174 | $ | 139 | ||||||||||||
DP&L | $ | 112 | $ | 124 | $ | 119 | $ | 125 | $ | 91 | $ | 90 |
DPL | DP&L | Outlook | Effective or Affirmed | ||||
Fitch Ratings | BB(a) / BB-(b) | BBB (c) | Negative | July 2016 | |||
Moody's Investors Service, Inc. | Ba3 (b) | Baa2 (c) | Negative | August 2016 | |||
Standard & Poor's Financial Services LLC | BB (b) | BBB- (c) | Negative | November 2016 |
DPL | DP&L | Outlook | Effective or Affirmed | ||||
Fitch Ratings | B+ | BB+ | Negative | July 2016 | |||
Moody's Investors Service, Inc. | Ba3 | Baa3 | Negative | August 2016 | |||
Standard & Poor's Financial Services LLC | BB | BB | Negative | November 2016 |
(a) | Rating relates to DPL’s Senior secured debt. |
(b) | Rating relates to DPL's Senior unsecured debt. |
(c) | Rating relates to DP&L’s Senior secured debt. |
Payments due in: | ||||||||||||||||||||
$ in millions | Total | Less than 1 year | 2 - 3 years | 4 - 5 years | More than 5 years | |||||||||||||||
DPL: | ||||||||||||||||||||
Long-term debt | $ | 1,883.6 | $ | 29.7 | $ | 259.2 | $ | 1,039.2 | $ | 555.5 | ||||||||||
Interest payments | 575.8 | 102.5 | 198.8 | 152.6 | 121.9 | |||||||||||||||
Pension and postretirement payments | 285.2 | 27.0 | 55.2 | 56.4 | 146.6 | |||||||||||||||
Coal and limestone contracts (a) | 284.3 | 230.3 | 54.0 | — | — | |||||||||||||||
Purchase orders and other contractual obligations | 109.8 | 43.1 | 33.6 | 33.1 | — | |||||||||||||||
Total contractual obligations | $ | 3,138.7 | $ | 432.6 | $ | 600.8 | $ | 1,281.3 | $ | 824.0 |
Payments due in: | ||||||||||||||||||||
$ in millions | Total | Less than 1 year | 2 - 3 years | 4 - 5 years | More than 5 years | |||||||||||||||
DP&L: | ||||||||||||||||||||
Long-term debt | $ | 763.0 | $ | 4.7 | $ | 9.2 | $ | 209.1 | $ | 540.0 | ||||||||||
Interest payments | 239.1 | 27.4 | 54.2 | 47.8 | 109.7 | |||||||||||||||
Pension and postretirement payments | 285.2 | 27.0 | 55.2 | 56.4 | 146.6 | |||||||||||||||
Coal and limestone contracts (a) | 284.3 | 230.3 | 54.0 | — | — | |||||||||||||||
Purchase orders and other contractual obligations | 109.8 | 43.1 | 33.6 | 33.1 | — | |||||||||||||||
Total contractual obligations | $ | 1,681.4 | $ | 332.5 | $ | 206.2 | $ | 346.4 | $ | 796.3 |
(a) | Total at DP&L operated units. |
Item 7A – Quantitative and Qualitative Disclosures about Market Risk |
$ in millions | DPL | DP&L | ||||||
Effect of 10% change in price per MWh | $ | 24.6 | $ | 19.2 |
($/MW-day) | PJM Delivery Year | |||||||||||||||||||
2015/16 | 2016/17 | 2017/18 | 2018/19 | 2019/20 | ||||||||||||||||
Capacity clearing price | $ | 136 | $ | 134 | $ | 152 | $ | 165 | $ | 100 |
Calendar Year | ||||||||||||||||||||
($/MW-day) | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||
Computed average capacity price | $ | 132 | $ | 135 | $ | 145 | $ | 159 | $ | 127 |
$ in millions | DPL | DP&L | ||||||
Effect of $10/MW-day change in capacity auction pricing | $ | 5.9 | $ | 4.9 |
$ in millions | DPL | DP&L | ||||||
Effect of 10% change in fuel and purchased power | $ | 44.6 | $ | 43.1 |
DPL | Years ending December 31, | Principal amount at December 31, | Fair value at December 31, | |||||||||||||||||||||||||||||
$ in millions | 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | 2016 | 2016 | ||||||||||||||||||||||||
Long-term debt (a) | ||||||||||||||||||||||||||||||||
Variable-rate debt | $ | 29.5 | $ | 29.5 | $ | 29.5 | $ | 54.6 | $ | 4.5 | $ | 422.4 | $ | 570.0 | $ | 570.0 | ||||||||||||||||
Average interest rate | 3.2 | % | 3.2 | % | 3.2 | % | 3.1 | % | 4.0 | % | 4.0 | % | ||||||||||||||||||||
Fixed-rate debt (b) | $ | 0.1 | $ | 0.1 | $ | 200.2 | $ | 200.2 | $ | 780.2 | $ | 132.8 | 1,313.6 | 1,337.7 | ||||||||||||||||||
Average interest rate | 4.2 | % | 3.2 | % | 6.7 | % | 2.0 | % | 7.2 | % | 5.1 | % | ||||||||||||||||||||
Total | $ | 1,883.6 | $ | 1,907.7 |
(a) | Amounts exclude immaterial capital lease obligations |
(b) | Fixed-rate debt includes $200.0 million DP&L Tax-exempt First Mortgage Bonds that have been hedged, per discussion above. See Note 6 – Derivative Instruments and Hedging Activities |
DP&L | Years ending December 31, | Principal amount at December 31, | Fair value at December 31, | |||||||||||||||||||||||||||||
$ in millions | 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | 2016 | 2016 | ||||||||||||||||||||||||
Long-term debt (a) | ||||||||||||||||||||||||||||||||
Variable-rate debt | $ | 4.5 | $ | 4.5 | $ | 4.5 | $ | 4.5 | $ | 4.5 | $ | 422.5 | $ | 445.0 | $ | 445.0 | ||||||||||||||||
Average interest rate | 4.0 | % | 4.0 | % | 4.0 | % | 4.0 | % | 4.0 | % | 4.0 | % | ||||||||||||||||||||
Fixed-rate debt (b) | $ | 0.1 | $ | 0.1 | $ | 0.2 | $ | 200.2 | $ | 0.2 | $ | 117.2 | 318.0 | 318.5 | ||||||||||||||||||
Average interest rate | 4.2 | % | 4.2 | % | 4.2 | % | 2.0 | % | 4.2 | % | 4.7 | % | ||||||||||||||||||||
Total | $ | 763.0 | $ | 763.5 |
(a) | Amounts exclude immaterial capital lease obligations |
(b) | Fixed-rate debt includes $200.0 million DP&L Tax-exempt First Mortgage Bonds that have been hedged, per discussion above. See Note 6 – Derivative Instruments and Hedging Activities |
DPL | ||||||||||||||||||||||||
$ in millions | Principal amount at December 31, 2016 | Fair value at December 31, 2016 | One Percent Interest Rate Risk | Principal amount at December 31, 2015 | Fair value at December 31, 2015 | One Percent Interest Rate Risk | ||||||||||||||||||
Long-term debt (a) | ||||||||||||||||||||||||
Variable-rate debt | $ | 570.0 | $ | 570.0 | $ | 5.7 | $ | 325.0 | $ | 325.0 | $ | 3.3 | ||||||||||||
Fixed-rate debt (b) | 1,313.6 | 1,337.7 | 13.4 | 1,684.4 | 1,650.3 | 16.5 | ||||||||||||||||||
Total | $ | 1,883.6 | $ | 1,907.7 | $ | 19.1 | $ | 2,009.4 | $ | 1,975.3 | $ | 19.8 |
(a) | Amounts exclude immaterial capital lease obligations |
(b) | Fixed-rate debt includes $200.0 million DP&L Tax-exempt First Mortgage Bonds that have been hedged, per discussion above. See Note 6 – Derivative Instruments and Hedging Activities |
DP&L | ||||||||||||||||||||||||
$ in millions | Principal amount at December 31, 2016 | Fair value at December 31, 2016 | One Percent Interest Rate Risk | Principal amount at December 31, 2015 | Fair value at December 31, 2015 | One Percent Interest Rate Risk | ||||||||||||||||||
Long-term debt (a) | ||||||||||||||||||||||||
Variable-rate debt | $ | 445.0 | $ | 445.0 | $ | 4.5 | $ | 200.0 | $ | 200.0 | $ | 2.0 | ||||||||||||
Fixed-rate debt (b) | 318.0 | 318.5 | 3.2 | 562.9 | 564.2 | 5.6 | ||||||||||||||||||
Total | $ | 763.0 | $ | 763.5 | $ | 7.7 | $ | 762.9 | $ | 764.2 | $ | 7.6 |
(a) | Amounts exclude immaterial capital lease obligations |
(b) | Fixed-rate debt includes $200.0 million DP&L Tax-exempt First Mortgage Bonds that have been hedged, per discussion above. See Note 6 – Derivative Instruments and Hedging Activities |
Item 8 – Financial Statements and Supplementary Data |
DPL INC. | CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||
Revenues | $ | 1,612.8 | $ | 1,716.5 | $ | 1,579.0 | $ | 1,427.3 | $ | 1,612.8 | $ | 1,716.5 | ||||||||||||
Cost of revenues: | ||||||||||||||||||||||||
Fuel | 259.8 | 304.5 | 366.7 | 268.8 | 259.8 | 304.5 | ||||||||||||||||||
Purchased power | 562.6 | 587.9 | 383.0 | 417.4 | 562.6 | 587.9 | ||||||||||||||||||
Total cost of revenues | 822.4 | 892.4 | 749.7 | 686.2 | 822.4 | 892.4 | ||||||||||||||||||
Gross margin | 790.4 | 824.1 | 829.3 | 741.1 | 790.4 | 824.1 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Operation and maintenance | 361.3 | 362.4 | 365.7 | 348.1 | 361.3 | 362.4 | ||||||||||||||||||
Depreciation and amortization | 134.6 | 135.6 | 129.2 | 132.3 | 134.6 | 135.6 | ||||||||||||||||||
General taxes | 87.0 | 87.8 | 76.8 | 85.7 | 87.0 | 87.8 | ||||||||||||||||||
Goodwill impairment | 317.0 | — | 306.3 | |||||||||||||||||||||
Fixed-asset impairment | — | 11.5 | 26.2 | |||||||||||||||||||||
Goodwill impairment (Note 7) | — | 317.0 | — | |||||||||||||||||||||
Fixed-asset impairment (Note 15) | 859.0 | — | 11.5 | |||||||||||||||||||||
Other | 0.4 | (3.9 | ) | 2.5 | (0.1 | ) | 0.4 | (3.9 | ) | |||||||||||||||
Total operating expenses | 900.3 | 593.4 | 906.7 | 1,425.0 | 900.3 | 593.4 | ||||||||||||||||||
Operating income / (loss) | (109.9 | ) | 230.7 | (77.4 | ) | (683.9 | ) | (109.9 | ) | 230.7 | ||||||||||||||
Other income / (expense), net | ||||||||||||||||||||||||
Investment income | 0.2 | 0.9 | 1.4 | 0.4 | 0.2 | 0.9 | ||||||||||||||||||
Interest expense | (118.3 | ) | (126.6 | ) | (124.0 | ) | (106.1 | ) | (118.3 | ) | (126.6 | ) | ||||||||||||
Charge for early redemption of debt | (2.1 | ) | (30.9 | ) | (2.8 | ) | (3.1 | ) | (2.1 | ) | (30.9 | ) | ||||||||||||
Other deductions | (1.3 | ) | (1.5 | ) | (3.0 | ) | (0.6 | ) | (1.3 | ) | (1.5 | ) | ||||||||||||
Other expense, net | (121.5 | ) | (158.1 | ) | (128.4 | ) | (109.4 | ) | (121.5 | ) | (158.1 | ) | ||||||||||||
Earnings (loss) from continuing operations before income tax | (231.4 | ) | 72.6 | (205.8 | ) | |||||||||||||||||||
Income / (loss) from continuing operations before income tax | (793.3 | ) | (231.4 | ) | 72.6 | |||||||||||||||||||
Income tax expense from continuing operations | 20.0 | 15.4 | 19.8 | |||||||||||||||||||||
Income tax expense / (benefit) from continuing operations | (278.8 | ) | 20.0 | 15.4 | ||||||||||||||||||||
Net income / (loss) from continuing operations | (251.4 | ) | 57.2 | (225.6 | ) | (514.5 | ) | (251.4 | ) | 57.2 | ||||||||||||||
Discontinued operations (Note 16) | ||||||||||||||||||||||||
Income / (loss) from discontinued operations | 11.4 | (129.2 | ) | 6.0 | (0.7 | ) | 11.4 | (129.2 | ) | |||||||||||||||
Gain from disposal of discontinued operations | 49.2 | — | — | |||||||||||||||||||||
Income tax expense / (benefit) | (1.0 | ) | 2.6 | 2.4 | 19.2 | (1.0 | ) | 2.6 | ||||||||||||||||
Discontinued operations | 12.4 | (131.8 | ) | 3.6 | ||||||||||||||||||||
Net income / (loss) from discontinued operations | 29.3 | 12.4 | (131.8 | ) | ||||||||||||||||||||
Net loss | $ | (239.0 | ) | $ | (74.6 | ) | $ | (222.0 | ) | $ | (485.2 | ) | $ | (239.0 | ) | $ | (74.6 | ) |
DPL INC. | ||||||||||||||||||||||||
STATEMENTS OF COMPREHENSIVE LOSS | ||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||
Net loss | $ | (239.0 | ) | $ | (74.6 | ) | $ | (222.0 | ) | $ | (485.2 | ) | $ | (239.0 | ) | $ | (74.6 | ) | ||||||
Available-for-sale securities activity: | ||||||||||||||||||||||||
Change in fair value of available-for-sale securities, net of income tax benefit / (expense) of $0.1, $0.2 and $0.6 for each respective period | (0.1 | ) | (0.3 | ) | (1.2 | ) | ||||||||||||||||||
Reclassification to earnings, net of income tax benefit / (expense) of $0.0, ($0.2) and ($0.7) for each respective period | — | 0.2 | 1.4 | |||||||||||||||||||||
Change in fair value of available-for-sale securities, net of income tax benefit / (expense) of ($0.1), $0.1 and $0.2 for each respective period | 0.2 | (0.1 | ) | (0.3 | ) | |||||||||||||||||||
Reclassification to earnings, net of income tax benefit / (expense) of $0.0, $0.0 and ($0.2) for each respective period | — | — | 0.2 | |||||||||||||||||||||
Total change in fair value of available-for-sale securities | (0.1 | ) | (0.1 | ) | 0.2 | 0.2 | (0.1 | ) | (0.1 | ) | ||||||||||||||
Derivative activity: | ||||||||||||||||||||||||
Change in derivative fair value, net of income tax benefit / (expense) of ($10.3), $10.3 and ($10.6) for each respective period | 18.2 | (19.0 | ) | 19.7 | ||||||||||||||||||||
Reclassification to earnings, net of income tax benefit / (expense) of $5.4, ($9.5) and ($2.3) for each respective period | (10.0 | ) | 16.9 | 3.4 | ||||||||||||||||||||
Change in derivative fair value, net of income tax benefit / (expense) of ($8.8), ($10.3) and $10.3 for each respective period | 16.1 | 18.2 | (19.0 | ) | ||||||||||||||||||||
Reclassification to earnings, net of income tax benefit / (expense) of $16.7, $5.4 and ($9.5) for each respective period | (29.7 | ) | (10.0 | ) | 16.9 | |||||||||||||||||||
Total change in fair value of derivatives | 8.2 | (2.1 | ) | 23.1 | (13.6 | ) | 8.2 | (2.1 | ) | |||||||||||||||
Pension and postretirement activity: | ||||||||||||||||||||||||
Prior service cost for the period, net of income tax benefit / (expense) of $0.0, $1.3 and $0.0 for each respective period | — | (2.2 | ) | — | ||||||||||||||||||||
Net gain / (loss) for the period, net of income tax benefit / (expense) of ($1.2), $7.1 and ($2.7) for each respective period | 1.6 | (12.7 | ) | 4.9 | ||||||||||||||||||||
Reclassification to earnings, net of income tax benefit / (expense) of ($0.2), $0.0 and $0.3 for each respective period | 0.2 | — | 0.3 | |||||||||||||||||||||
Total change in unfunded pension and postretirement | 1.8 | (14.9 | ) | 5.2 | ||||||||||||||||||||
Prior service cost for the period, net of income tax benefit / (expense) of $0.0, $0.0 and $1.3 for each respective period | — | — | (2.2 | ) | ||||||||||||||||||||
Net gain / (loss) for the period, net of income tax benefit / (expense) of $2.4, ($1.2) and $7.1 for each respective period | (4.7 | ) | 1.6 | (12.7 | ) | |||||||||||||||||||
Reclassification to earnings, net of income tax benefit / (expense) of ($0.6), ($0.2) and $0.0 for each respective period | 1.0 | 0.2 | — | |||||||||||||||||||||
Total change in unfunded pension and postretirement obligations | (3.7 | ) | 1.8 | (14.9 | ) | |||||||||||||||||||
Other comprehensive income / (loss) | 9.9 | (17.1 | ) | 28.5 | (17.1 | ) | 9.9 | (17.1 | ) | |||||||||||||||
Net comprehensive loss | $ | (229.1 | ) | $ | (91.7 | ) | $ | (193.5 | ) | $ | (502.3 | ) | $ | (229.1 | ) | $ | (91.7 | ) |
DPL INC. | CONSOLIDATED BALANCE SHEETS | |||||||||||||||
$ in millions | December 31, 2015 | December 31, 2014 | December 31, 2016 | December 31, 2015 | ||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 32.4 | $ | 17.0 | $ | 54.6 | $ | 32.4 | ||||||||
Restricted cash | 92.7 | 16.8 | 29.0 | 92.7 | ||||||||||||
Accounts receivable, net (Note 2) | 120.9 | 136.5 | 135.1 | 120.9 | ||||||||||||
Inventories (Note 2) | 109.1 | 100.2 | 77.2 | 109.1 | ||||||||||||
Taxes applicable to subsequent years | 81.2 | 77.8 | 81.0 | 81.2 | ||||||||||||
Regulatory assets, current (Note 3) | 14.4 | 44.2 | 0.1 | 14.4 | ||||||||||||
Other prepayments and current assets | 46.6 | 38.9 | 31.8 | 44.5 | ||||||||||||
Assets held for sale - current (Note 16) | 62.2 | 67.3 | — | 62.2 | ||||||||||||
Total current assets | 559.5 | 498.7 | 408.8 | 557.4 | ||||||||||||
Property, plant and equipment: | ||||||||||||||||
Property, plant and equipment | 2,909.0 | 2,754.1 | 1,985.6 | 2,850.7 | ||||||||||||
Less: Accumulated depreciation and amortization | (432.3 | ) | (317.9 | ) | (334.8 | ) | (397.0 | ) | ||||||||
2,476.7 | 2,436.2 | 1,650.8 | 2,453.7 | |||||||||||||
Construction work in process | 85.0 | 76.4 | 116.4 | 83.5 | ||||||||||||
Total net property, plant and equipment | 2,561.7 | 2,512.6 | 1,767.2 | 2,537.2 | ||||||||||||
Other non-current assets: | ||||||||||||||||
Regulatory assets, non-current (Note 3) | 179.9 | 167.5 | 203.9 | 179.9 | ||||||||||||
Goodwill (Note 7) | — | 317.0 | ||||||||||||||
Intangible assets, net of amortization (Note 7) | 5.0 | 7.8 | ||||||||||||||
Intangible assets, net of amortization | 22.7 | 29.5 | ||||||||||||||
Other deferred assets | 34.7 | 39.7 | 16.6 | 20.7 | ||||||||||||
Assets held for sale - non-current (Note 16) | — | 34.5 | ||||||||||||||
Total other non-current assets | 219.6 | 566.5 | 243.2 | 230.1 | ||||||||||||
Total Assets | $ | 3,340.8 | $ | 3,577.8 | $ | 2,419.2 | $ | 3,324.7 | ||||||||
LIABILITIES AND SHAREHOLDER'S EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Current portion - long-term debt (Note 8) | $ | 574.9 | $ | 20.1 | $ | 29.7 | $ | 572.8 | ||||||||
Accounts payable | 97.5 | 94.4 | 113.9 | 97.5 | ||||||||||||
Accrued taxes | 142.4 | 102.6 | 185.1 | 142.4 | ||||||||||||
Accrued interest | 21.4 | 27.2 | 17.7 | 21.4 | ||||||||||||
Customer security deposits | 15.2 | 14.4 | 15.2 | 15.2 | ||||||||||||
Regulatory liabilities, current (Note 3) | 24.4 | 4.4 | 33.7 | 24.4 | ||||||||||||
Insurance and claims costs | 5.9 | 6.4 | 5.4 | 5.9 | ||||||||||||
Other current liabilities | 54.5 | 46.3 | 50.2 | 54.5 | ||||||||||||
Deposit received on sale of DPLER (Note 16) | 75.5 | — | — | 75.5 | ||||||||||||
Liabilities held for sale - current (Note 16) | 1.6 | 17.1 | — | 1.6 | ||||||||||||
Total current liabilities | 1,013.3 | 332.9 | 450.9 | 1,011.2 | ||||||||||||
Non-current liabilities: | ||||||||||||||||
Long-term debt (Note 8) | 1,434.5 | 2,139.6 | 1,828.7 | 1,420.5 | ||||||||||||
Deferred taxes (Note 9) | 568.7 | 587.3 | 252.4 | 568.7 | ||||||||||||
Taxes payable | 84.1 | 80.7 | 84.6 | 84.1 | ||||||||||||
Regulatory liabilities, non-current (Note 3) | 127.0 | 124.1 | 130.4 | 127.0 | ||||||||||||
Pension, retiree and other benefits (Note 10) | 87.1 | 95.9 | 101.6 | 87.1 | ||||||||||||
Asset retirement obligations | 138.8 | 65.9 | ||||||||||||||
Other deferred credits | 88.3 | 50.5 | 19.4 | 22.4 | ||||||||||||
Liabilities held for sale - non-current (Note 16) | — | 0.2 | ||||||||||||||
Total non-current liabilities | 2,389.7 | 3,078.3 | 2,555.9 | 2,375.7 | ||||||||||||
Redeemable preferred stock of subsidiary (Note 11) | 18.4 | 18.4 | — | 18.4 | ||||||||||||
Commitments and contingencies (Note 12) | ||||||||||||||||
Common shareholder's equity: | ||||||||||||||||
Common stock: | ||||||||||||||||
1,500 shares authorized; 1 share issued and outstanding | ||||||||||||||||
at December 31, 2015 and 2014 | — | — | ||||||||||||||
at December 31, 2016 and 2015 | — | — | ||||||||||||||
Other paid-in capital | 2,237.7 | 2,237.4 | 2,233.0 | 2,237.7 | ||||||||||||
Accumulated other comprehensive income | 17.4 | 7.5 | 0.3 | 17.4 | ||||||||||||
Retained earnings / (deficit) | (2,335.7 | ) | (2,096.7 | ) | ||||||||||||
Accumulated deficit | (2,820.9 | ) | (2,335.7 | ) | ||||||||||||
Total common shareholder's equity | (80.6 | ) | 148.2 | (587.6 | ) | (80.6 | ) | |||||||||
Total Liabilities and Shareholder's Equity | $ | 3,340.8 | $ | 3,577.8 | $ | 2,419.2 | $ | 3,324.7 |
DPL INC. | CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net loss | $ | (239.0 | ) | $ | (74.6 | ) | $ | (222.0 | ) | $ | (485.2 | ) | $ | (239.0 | ) | $ | (74.6 | ) | ||||||
Adjustments to reconcile Net loss to Net cash from operating activities | ||||||||||||||||||||||||
Depreciation and amortization | 138.8 | 139.8 | 132.9 | 132.3 | 138.8 | 139.8 | ||||||||||||||||||
Amortization of intangibles | — | 1.2 | 7.1 | — | — | 1.2 | ||||||||||||||||||
Amortization of debt market value adjustments | (1.1 | ) | 0.3 | (14.4 | ) | 0.1 | (1.1 | ) | 0.3 | |||||||||||||||
Amortization of deferred financing costs | 5.9 | 6.3 | 5.0 | 5.6 | 5.9 | 6.3 | ||||||||||||||||||
Unrealized loss on derivatives | 5.8 | 3.0 | 5.9 | |||||||||||||||||||||
Unrealized (gain) / loss on derivatives | (4.3 | ) | 5.8 | 3.0 | ||||||||||||||||||||
Deferred income taxes | (17.1 | ) | 17.7 | 24.0 | (306.2 | ) | (17.1 | ) | 17.7 | |||||||||||||||
Charge for early redemption of debt | 2.1 | 30.9 | 2.8 | 3.1 | 2.1 | 30.9 | ||||||||||||||||||
Goodwill impairment (a) | 317.0 | 135.8 | 306.3 | — | 317.0 | 135.8 | ||||||||||||||||||
Fixed-asset impairment | — | 11.5 | 26.2 | 859.0 | — | 11.5 | ||||||||||||||||||
Loss / (Gain) on asset disposal | 0.4 | (3.9 | ) | 2.5 | (49.2 | ) | 0.4 | (3.9 | ) | |||||||||||||||
Changes in certain assets and liabilities: | ||||||||||||||||||||||||
Accounts receivable | 43.4 | 0.5 | 7.4 | 24.2 | 43.4 | 0.5 | ||||||||||||||||||
Inventories | (9.0 | ) | (24.9 | ) | 27.4 | 32.0 | (9.0 | ) | (24.9 | ) | ||||||||||||||
Prepaid taxes | (1.3 | ) | (0.9 | ) | 0.7 | 0.2 | (1.3 | ) | (0.9 | ) | ||||||||||||||
Taxes applicable to subsequent years | (3.4 | ) | (7.1 | ) | (1.4 | ) | 0.2 | (3.4 | ) | (7.1 | ) | |||||||||||||
Deferred regulatory costs, net | 21.8 | 5.4 | 7.6 | 4.1 | 21.8 | 5.4 | ||||||||||||||||||
Accounts payable | (5.1 | ) | 32.1 | (5.8 | ) | 16.5 | (5.1 | ) | 32.1 | |||||||||||||||
Accrued taxes payable | 43.8 | 20.7 | (5.5 | ) | 45.1 | 43.8 | 20.7 | |||||||||||||||||
Accrued interest payable | (5.7 | ) | (1.3 | ) | (3.3 | ) | (3.7 | ) | (5.7 | ) | (1.3 | ) | ||||||||||||
Other current and deferred liabilities | (10.4 | ) | (40.6 | ) | 1.5 | (4.0 | ) | (10.4 | ) | (40.6 | ) | |||||||||||||
Pension, retiree and other benefits | (0.7 | ) | 19.1 | 1.8 | 8.6 | (0.7 | ) | 19.1 | ||||||||||||||||
Unamortized investment tax credit | (0.5 | ) | (0.5 | ) | (0.5 | ) | (0.4 | ) | (0.5 | ) | (0.5 | ) | ||||||||||||
Insurance and claims costs | (0.5 | ) | (0.2 | ) | (4.8 | ) | (0.5 | ) | (0.5 | ) | (0.2 | ) | ||||||||||||
Other | 23.3 | (26.2 | ) | 1.4 | (10.4 | ) | 23.3 | (26.2 | ) | |||||||||||||||
Net cash from operating activities | 308.5 | 244.1 | 302.8 | |||||||||||||||||||||
Net cash provided by operating activities | 267.1 | 308.5 | 244.1 | |||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Capital expenditures | (137.2 | ) | (118.1 | ) | (124.4 | ) | (148.5 | ) | (137.2 | ) | (118.1 | ) | ||||||||||||
Proceeds from sale of property | 1.3 | 10.7 | 0.8 | |||||||||||||||||||||
Proceeds from sale of business | 75.5 | 1.3 | 10.7 | |||||||||||||||||||||
Insurance proceeds | — | 0.3 | 7.6 | 6.3 | — | 0.3 | ||||||||||||||||||
Purchase of renewable energy credits | (0.8 | ) | (3.5 | ) | (3.9 | ) | (0.4 | ) | (0.8 | ) | (3.5 | ) | ||||||||||||
Decrease / (increase) in restricted cash | (0.4 | ) | (3.3 | ) | (2.8 | ) | ||||||||||||||||||
Increase in restricted cash | (11.8 | ) | (0.4 | ) | (3.3 | ) | ||||||||||||||||||
Other investing activities, net | 0.4 | 1.3 | (1.2 | ) | 1.1 | 0.4 | 1.3 | |||||||||||||||||
Net cash from investing activities | (136.7 | ) | (112.6 | ) | (123.9 | ) | ||||||||||||||||||
Net cash used in investing activities | (77.8 | ) | (136.7 | ) | (112.6 | ) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Deferred financing costs | (6.9 | ) | (3.6 | ) | (15.3 | ) | ||||||||||||||||||
Payments of deferred financing costs | (8.6 | ) | (6.9 | ) | (3.6 | ) | ||||||||||||||||||
Redemption of preferred stock | (23.5 | ) | — | — | ||||||||||||||||||||
Retirement of debt | (474.5 | ) | (335.0 | ) | (945.1 | ) | (577.8 | ) | (474.5 | ) | (335.0 | ) | ||||||||||||
Premium paid for early redemption of debt | — | (29.1 | ) | (2.4 | ) | — | — | (29.1 | ) | |||||||||||||||
Issuance of long-term debt | 325.0 | 200.0 | 645.0 | |||||||||||||||||||||
Issuance of long-term debt, net of discount | 442.8 | 325.0 | 200.0 | |||||||||||||||||||||
Borrowings from revolving credit facilities | 80.0 | 190.0 | 50.0 | 15.0 | 80.0 | 190.0 | ||||||||||||||||||
Repayment of borrowings from revolving credit facilities | (80.0 | ) | (190.0 | ) | (50.0 | ) | (15.0 | ) | (80.0 | ) | (190.0 | ) | ||||||||||||
Net cash from financing activities | (156.4 | ) | (167.7 | ) | (317.8 | ) | ||||||||||||||||||
Net cash used in financing activities | (167.1 | ) | (156.4 | ) | (167.7 | ) | ||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||
Net increase / (decrease) in cash | 15.4 | (36.2 | ) | (138.9 | ) | 22.2 | 15.4 | (36.2 | ) | |||||||||||||||
Balance at beginning of period | 17.0 | 53.2 | 192.1 | 32.4 | 17.0 | 53.2 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | 32.4 | $ | 17.0 | $ | 53.2 | $ | 54.6 | $ | 32.4 | $ | 17.0 | ||||||||||||
Supplemental cash flow information: | ||||||||||||||||||||||||
Interest paid, net of amounts capitalized | $ | 111.6 | $ | 117.3 | $ | 137.5 | $ | 103.8 | $ | 111.6 | $ | 117.3 | ||||||||||||
Income taxes paid / (refunded), net | $ | 0.8 | $ | 0.7 | $ | (5.2 | ) | $ | 0.3 | $ | 0.8 | $ | 0.7 | |||||||||||
Non-cash financing and investing activities: | ||||||||||||||||||||||||
Accruals for capital expenditures | $ | 18.6 | $ | 16.3 | $ | 14.7 | $ | 16.2 | $ | 18.6 | $ | 16.3 |
(a) | Goodwill impairment of $135.8 million in 2014 has been reclassified to Discontinued operations in the Consolidated Statement of Operations. |
DPL INC. | CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY | |||||||||||||||||||||||||||||||||
Common Stock (a) | Common Stock (a) | |||||||||||||||||||||||||||||||||
$ in millions (except Outstanding Shares) | Outstanding Shares | Amount | Other Paid-in Capital | Accumulated Other Comprehensive Income / (Loss) | Retained Earnings/ (Deficit) | Total | Outstanding Shares | Amount | Other Paid-in Capital | Accumulated Other Comprehensive Income / (Loss) | Accumulated deficit | Total | ||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||||||||||||||
Beginning balance | 1 | $ | — | $ | 2,236.7 | $ | (3.9 | ) | $ | (1,806.0 | ) | $ | 426.8 | 1 | $ | — | $ | 2,237.0 | $ | 24.6 | $ | (2,022.1 | ) | $ | 239.5 | |||||||||
Net comprehensive loss | 28.5 | (222.0 | ) | (193.5 | ) | |||||||||||||||||||||||||||||
Common stock dividends | — | — | ||||||||||||||||||||||||||||||||
Other (b) | 0.3 | 5.9 | 6.2 | |||||||||||||||||||||||||||||||
Ending balance | 1 | — | 2,237.0 | 24.6 | (2,022.1 | ) | 239.5 | |||||||||||||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||||||||||||||
Net comprehensive loss | (17.1 | ) | (74.6 | ) | (91.7 | ) | (17.1 | ) | (74.6 | ) | (91.7 | ) | ||||||||||||||||||||||
Other | 0.4 | — | 0.4 | 0.4 | — | — | 0.4 | |||||||||||||||||||||||||||
Ending balance | 1 | — | 2,237.4 | 7.5 | (2,096.7 | ) | 148.2 | 1 | — | 2,237.4 | 7.5 | (2,096.7 | ) | 148.2 | ||||||||||||||||||||
Year ended December 31, 2015 | ||||||||||||||||||||||||||||||||||
Net comprehensive loss | 9.9 | (239.0 | ) | (229.1 | ) | 9.9 | (239.0 | ) | (229.1 | ) | ||||||||||||||||||||||||
Other | 0.3 | 0.3 | 0.3 | — | — | 0.3 | ||||||||||||||||||||||||||||
Ending balance | 1 | $ | — | $ | 2,237.7 | $ | 17.4 | $ | (2,335.7 | ) | $ | (80.6 | ) | 1 | — | 2,237.7 | 17.4 | (2,335.7 | ) | (80.6 | ) | |||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||||||||||||||
Net comprehensive loss | (17.1 | ) | (485.2 | ) | (502.3 | ) | ||||||||||||||||||||||||||||
Other (b) | (4.7 | ) | — | — | (4.7 | ) | ||||||||||||||||||||||||||||
Ending balance | 1 | $ | — | $ | 2,233.0 | $ | 0.3 | $ | (2,820.9 | ) | $ | (587.6 | ) |
(a) | 1,500 shares authorized |
(b) | $ |
$ in millions | Expected 2016 Service Cost | Expected 2016 Interest Cost | 2016 Service Cost | 2016 Interest Cost | ||||||||||||||||||||||||||||||||||||||||||||
Disaggregated rate approach | Aggregate rate approach | Impact of change | Disaggregated rate approach | Aggregate rate approach | Impact of change | Disaggregated rate approach | Aggregate rate approach | Impact of change | Disaggregated rate approach | Aggregate rate approach | Impact of change | |||||||||||||||||||||||||||||||||||||
Total Pension | $ | 5.7 | $ | 6.1 | $ | (0.4 | ) | $ | 14.8 | $ | 17.9 | $ | (3.1 | ) | $ | 5.7 | $ | 6.1 | $ | (0.4 | ) | $ | 14.7 | $ | 17.9 | $ | (3.2 | ) | ||||||||||||||||||||
Total Postretirement Benefits | $ | 0.2 | $ | 0.2 | $ | — | $ | 0.6 | $ | 0.7 | $ | (0.1 | ) | 0.2 | 0.2 | — | 0.6 | 0.7 | (0.1 | ) | ||||||||||||||||||||||||||||
Total | $ | 5.9 | $ | 6.3 | $ | (0.4 | ) | $ | 15.4 | $ | 18.6 | $ | (3.2 | ) | $ | 5.9 | $ | 6.3 | $ | (0.4 | ) | $ | 15.3 | $ | 18.6 | $ | (3.3 | ) |
Accounting Standard | Description | Date of Adoption | Effect on the financial statements upon adoption |
New Accounting Standards Adopted | |||
2016-19 - Technical Corrections and Improvements | This standard clarifies guidance that affects the implementation of ASU 2015-05. It clarifies that the license of internal-use software shall be accounted for as the acquisition of an intangible asset. Transition method: retrospective. The adoption of the new guidance did not have an impact on net income, net assets or net equity. | December 31, 2016 | Capitalized software of $59.9 million and its corresponding amortization of $35.3 million previously classified within property, plant and equipment were reclassified to intangibles as of December 31, 2015. |
2015-15, Interest - Imputation of Interest (Subtopic 835-30) | Given the absence of authoritative guidance within ASU 2015-03, this standard clarifies that the SEC Staff would not object to an entity presenting debt issuance costs related to line-of-credit arrangements as an asset that is subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Transition method: retrospective. | January 1, 2016 | Deferred financing costs related to lines-of-credit of approximately $3.1 million recorded within Other deferred assets were not reclassified. |
Accounting Standard | Description | Date of Adoption | Effect on the financial statements upon adoption |
2015-03, Interest - Imputation of Interest (Subtopic 835-30) | The standard simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the standard. Transition method: retrospective. | January 1, 2016 | Deferred financing costs of approximately $2.1 million previously classified within Other prepayments and current assets and $14.0 million previously classified within Other deferred assets were reclassified to reduce the related debt liabilities. |
2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis | The standard makes targeted amendments to the current consolidation guidance and ends the deferral granted to investment companies from applying the VIE guidance. The standard amends the evaluation of whether (1) fees paid to a decision-maker or service providers represent a variable interest, (2) a limited partnership or similar entity has the characteristics of a VIE and (3) a reporting entity is the primary beneficiary of a VIE. Transition method: retrospective. | January 1, 2016 | There were no changes to the consolidation conclusions. |
2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40) | The standard requires management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. There are required disclosures if substantial doubt is identified including documentation of principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans), management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern. | December 31, 2016 | Adoption of this standard had no impact on our consolidated financial statements. |
New Accounting Standards Issued But Not Yet Effective | |||
2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment | This standard simplifies the accounting for goodwill impairment by removing the requirement to calculate the implied fair value. Instead, it requires that an entity records an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. | January 1, 2020. Early adoption is permitted as of January 1, 2017. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business | This standard provides guidance to assist the entities with evaluating when a set of transferred assets and activities is a business. | January 1, 2018. Early adoption is permitted | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
2016-18, Statement of Cash Flows (Topic 320): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) | This standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Transition method: retrospective. | January 1, 2018 Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
2016-17, Consolidation (Topic 810): Interest Held Through Related Parties That are Under Common Control | States that businesses deciding whether they are primary beneficiaries can consider indirect interests held through related parties that are under common control on a proportionate basis as opposed to in their entirety. | January 1, 2017 Early adoption is permitted. | Transition is retrospective to all relevant prior periods beginning with the fiscal year in which ASU 2015-02 was initially applied. |
2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory | This standard requires that an entity recognizes the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Transition method: modified retrospective. | January 1, 2018. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
Accounting Standard | Description | Date of Adoption | Effect on the financial statements upon adoption |
2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) | This standard provides specific guidance on how certain cash transactions are presented and classified in the statement of cash flows. Transition method: retrospective. | January 1, 2018. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. We do not anticipate a material effect on our consolidated financial statements. |
2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | The standard updates the impairment model for financial assets measured at amortized cost to an expected loss model rather than an incurred loss model. It also allows for the presentation of credit losses on available-for-sale debt securities as an allowance rather than a write down. Transition method: various. | January 1, 2020. Early adoption is permitted only as of January 1, 2019. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. No transition method has been selected yet. |
2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting | Removes some of the Emerging Issues Task Force (EITF) guidance for revenue recognition and hedge accounting from U.S. GAAP to reflect announcements the SEC staff made to the task force in March. | January 1, 2018. Earlier application is permitted only as of January 1, 2017. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting | The standard simplifies the following aspects of accounting for share-based payment awards: accounting for income taxes, classification of excess tax benefits on the statement of cash flows, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities and classification of employee taxes paid on statement of cash flows when an employer withholds shares for tax-withholding purposes. Transition method: The recording of excess tax benefits and tax deficiencies arising from vesting or settlement will be applied prospectively. The elimination of the requirement that excess tax benefits be realized before they are recognized will be adopted on a modified retrospective basis with a cumulative adjustment to the opening balance sheet. | January 1, 2017. Early adoption is permitted. | The primary effect of adoption will be the recognition of excess tax benefits in our provision for income taxes in the period when the awards vest or are settled, rather than in paid-in-capital in the period when the excess tax benefits are realized. We will continue to estimate the number of awards that are expected to vest in our determination of the related periodic compensation cost. |
2016-06, Derivatives and Hedging (Topic 815) - Contingent Put and Call Options in Debt Instruments | This standard clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. When a call (put) option is contingently exercisable, an entity no longer has to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. Transition method: a modified retrospective basis to existing debt instruments as of the effective date. | January 1, 2017. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard, but do not anticipate a material impact on our consolidated financial statements. |
2016-05, Derivatives and Hedging (Topic 815) - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships | The standard clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not require de-designation of that hedging relationship provided that all other hedge accounting criteria (including those in paragraphs 815-20-35-14 through 35-18) continue to be met. Transition method: prospective or a modified retrospective basis. | January 1, 2017. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard, but do not anticipate a material impact on our consolidated financial statements. No transition method has been selected yet. |
Accounting Standard | Description | Date of Adoption | Effect on the financial statements upon adoption |
2016-02, Leases (Topic 842) | The standard creates Topic 842, Leases which supersedes Topic 840, Leases, and introduces a lessee model that brings substantially all leases onto the balance sheet while retaining most of the principles of the existing lessor model in U.S. GAAP and aligning many of those principles with Topic 606, Revenue from Contracts with Customers. Transition method: modified retrospective approach with certain practical expedients. | January 1, 2019. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
2016-01, Financial Instruments - Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities | The standard significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. Also, it amends certain disclosure requirements associated with the fair value of financial instruments. Transition: cumulative effect in Retained Earnings as of adoption or prospectively for equity investments without readily determinable fair value. | January 1, 2018. Limited early adoption permitted. | We are currently evaluating the impact of adopting the standard, but do not anticipate a material impact on our consolidated financial statements. |
2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory | The standard replaces the current lower of cost or market test with a lower of cost or net realizable value test. Transition method: prospectively. | January 1, 2017. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
2014-09, 2015-14, 2016-08, 2016-10, 2016-12, 2016-20, Revenue from Contracts with Customers (Topic 606), | See discussion of the ASU below. | January 1, 2018. Earlier application is permitted only as of January 1, 2017. | We will adopt the standards on January 1, 2018; and we are currently evaluating the effect of their adoption on our consolidated financial statements. |
December 31, | December 31, | |||||||||||||||
$ in millions | 2015 | 2014 | 2016 | 2015 | ||||||||||||
Accounts receivable, net | ||||||||||||||||
Unbilled revenue | $ | 43.3 | $ | 49.1 | $ | 43.0 | $ | 43.3 | ||||||||
Customer receivables | 56.4 | 70.1 | 73.9 | 56.4 | ||||||||||||
Amounts due from partners in jointly-owned stations | 16.0 | 15.2 | 12.7 | 16.0 | ||||||||||||
Other | 6.0 | 3.0 | 6.7 | 6.0 | ||||||||||||
Provisions for uncollectible accounts | (0.8 | ) | (0.9 | ) | (1.2 | ) | (0.8 | ) | ||||||||
Total accounts receivable, net | $ | 120.9 | $ | 136.5 | $ | 135.1 | $ | 120.9 | ||||||||
Inventories | ||||||||||||||||
Fuel and limestone | $ | 72.2 | $ | 65.3 | $ | 38.9 | $ | 72.2 | ||||||||
Plant materials and supplies | 34.9 | 33.5 | 36.6 | 34.9 | ||||||||||||
Other | 2.0 | 1.4 | 1.7 | 2.0 | ||||||||||||
Total inventories, at average cost | $ | 109.1 | $ | 100.2 | $ | 77.2 | $ | 109.1 |
Details about Accumulated Other Comprehensive Income / (Loss) Components | Affected line item in the Consolidated Statements of Operations | Years ended December 31, | Affected line item in the Consolidated Statements of Operations | Years ended December 31, | ||||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Gains and losses on Available-for-sale securities activity (Note 5): | Gains and losses on Available-for-sale securities activity (Note 5): | Gains and losses on Available-for-sale securities activity (Note 5): | ||||||||||||||||||||||||||
Other income / (deductions) | $ | — | $ | 0.4 | $ | 2.1 | Other income | $ | — | $ | — | $ | 0.4 | |||||||||||||||
Tax expense | — | (0.2 | ) | (0.7 | ) | Tax expense | — | — | (0.2 | ) | ||||||||||||||||||
Net of income taxes | — | 0.2 | 1.4 | Net of income taxes | — | — | 0.2 | |||||||||||||||||||||
Gains and losses on cash flow hedges (Note 6): | Gains and losses on cash flow hedges (Note 6): | Gains and losses on cash flow hedges (Note 6): | ||||||||||||||||||||||||||
Interest Expense | (1.1 | ) | (1.3 | ) | — | Interest Expense | (1.0 | ) | (1.1 | ) | (1.3 | ) | ||||||||||||||||
Revenue | (18.7 | ) | 28.4 | 2.2 | Revenue | (55.3 | ) | (18.7 | ) | 28.4 | ||||||||||||||||||
Purchased power | 4.4 | (0.7 | ) | 3.5 | Purchased power | 9.9 | 4.4 | (0.7 | ) | |||||||||||||||||||
Total before income taxes | (15.4 | ) | 26.4 | 5.7 | Total before income taxes | (46.4 | ) | (15.4 | ) | 26.4 | ||||||||||||||||||
Tax benefit / (expense) | 5.4 | (9.5 | ) | (2.3 | ) | Tax benefit / (expense) | 16.7 | 5.4 | (9.5 | ) | ||||||||||||||||||
Net of income taxes | (10.0 | ) | 16.9 | 3.4 | Net of income taxes | (29.7 | ) | (10.0 | ) | 16.9 | ||||||||||||||||||
Amortization of defined benefit pension items (Note 10): | Amortization of defined benefit pension items (Note 10): | Amortization of defined benefit pension items (Note 10): | ||||||||||||||||||||||||||
Operations and maintenance | 0.4 | — | — | Operations and maintenance | 1.6 | 0.4 | — | |||||||||||||||||||||
Tax expense | (0.2 | ) | — | 0.3 | Tax expense | (0.6 | ) | (0.2 | ) | — | ||||||||||||||||||
Net of income taxes | 0.2 | — | 0.3 | Net of income taxes | 1.0 | 0.2 | — | |||||||||||||||||||||
Total reclassifications for the period, net of income taxes | Total reclassifications for the period, net of income taxes | $ | (9.8 | ) | $ | 17.1 | $ | 5.1 | Total reclassifications for the period, net of income taxes | $ | (28.7 | ) | $ | (9.8 | ) | $ | 17.1 |
$ in millions | Gains / (losses) on available-for-sale securities | Gains / (losses) on cash flow hedges | Change in unfunded pension obligation | Total | Gains / (losses) on available-for-sale securities | Gains / (losses) on cash flow hedges | Change in unfunded pension obligation | Total | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 0.6 | $ | 20.6 | $ | 3.4 | $ | 24.6 | ||||||||||||||||||||||||
Other comprehensive loss before reclassifications | (0.3 | ) | (19.0 | ) | (14.9 | ) | (34.2 | ) | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | 0.2 | 16.9 | — | 17.1 | ||||||||||||||||||||||||||||
Net current period other comprehensive loss | (0.1 | ) | (2.1 | ) | (14.9 | ) | (17.1 | ) | ||||||||||||||||||||||||
Balance at December 31, 2014 | 0.5 | 18.5 | (11.5 | ) | 7.5 | $ | 0.5 | $ | 18.5 | $ | (11.5 | ) | $ | 7.5 | ||||||||||||||||||
Other comprehensive income / (loss) before reclassifications | (0.1 | ) | 18.2 | 1.6 | 19.7 | (0.1 | ) | 18.2 | 1.6 | 19.7 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | — | (10.0 | ) | 0.2 | (9.8 | ) | — | (10.0 | ) | 0.2 | (9.8 | ) | ||||||||||||||||||||
Net current period other comprehensive income / (loss) | (0.1 | ) | 8.2 | 1.8 | 9.9 | (0.1 | ) | 8.2 | 1.8 | 9.9 | ||||||||||||||||||||||
Balance at December 31, 2015 | $ | 0.4 | $ | 26.7 | $ | (9.7 | ) | $ | 17.4 | 0.4 | 26.7 | (9.7 | ) | 17.4 | ||||||||||||||||||
Other comprehensive income / (loss) before reclassifications | 0.2 | 16.1 | (4.7 | ) | 11.6 | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | — | (29.7 | ) | 1.0 | (28.7 | ) | ||||||||||||||||||||||||||
Net current period other comprehensive income / (loss) | 0.2 | (13.6 | ) | (3.7 | ) | (17.1 | ) | |||||||||||||||||||||||||
Balance at December 31, 2016 | $ | 0.6 | $ | 13.1 | $ | (13.4 | ) | $ | 0.3 |
December 31, | December 31, | |||||||||||||||||||||||
$ in millions | Type of Recovery | Amortization Through | 2015 | 2014 | Type of Recovery | Amortization Through | 2016 | 2015 | ||||||||||||||||
Regulatory assets, current: | ||||||||||||||||||||||||
Fuel and purchased power recovery costs | A | 2016 | $ | 13.9 | $ | 16.3 | A | 2016 | $ | — | $ | 13.9 | ||||||||||||
Economic development costs | A | 2016 | 0.5 | 2.1 | A | 2017 | 0.1 | 0.5 | ||||||||||||||||
Deferred storm costs | B | 2015 | — | 22.3 | ||||||||||||||||||||
Energy efficiency program | A | 2016 | — | 1.8 | ||||||||||||||||||||
Other miscellaneous | A | 2016 | — | 1.7 | ||||||||||||||||||||
Total regulatory assets, current | 14.4 | 44.2 | 0.1 | 14.4 | ||||||||||||||||||||
Regulatory assets, non-current: | ||||||||||||||||||||||||
Pension benefits | B | Ongoing | $ | 91.6 | $ | 99.6 | B | Ongoing | 97.6 | 91.6 | ||||||||||||||
Deferred recoverable income taxes | B/C | Ongoing | 36.4 | 43.1 | B/C | Ongoing | 35.9 | 36.4 | ||||||||||||||||
Unrecovered OVEC charges | D | Undetermined | 21.0 | 10.5 | ||||||||||||||||||||
Fuel costs | B | Undetermined | 12.7 | — | B | Undetermined | 15.4 | 12.7 | ||||||||||||||||
Unrecovered OVEC charges | D | Undetermined | 10.5 | — | ||||||||||||||||||||
Unamortized loss on reacquired debt | B | Various | 9.0 | 9.9 | B | Various | 8.0 | 9.0 | ||||||||||||||||
Smart grid and advanced metering infrastructure costs | D | Undetermined | 7.3 | 6.6 | D | Undetermined | 7.3 | 7.3 | ||||||||||||||||
Rate case costs | D | Undetermined | 6.3 | 1.9 | ||||||||||||||||||||
Generation separation costs | D | Undetermined | 3.9 | 1.6 | D | Undetermined | 5.7 | 3.9 | ||||||||||||||||
Retail settlement system costs | D | Undetermined | 3.1 | 3.1 | D | Undetermined | 3.1 | 3.1 | ||||||||||||||||
Consumer education campaign | D | Undetermined | 3.0 | 3.0 | D | Undetermined | 3.0 | 3.0 | ||||||||||||||||
Rate case costs | D | Undetermined | 1.9 | — | ||||||||||||||||||||
Other miscellaneous | D | Undetermined | 0.5 | 0.6 | D | Undetermined | 0.6 | 0.5 | ||||||||||||||||
Total regulatory assets, non-current | 179.9 | 167.5 | 203.9 | 179.9 | ||||||||||||||||||||
Total regulatory assets | $ | 194.3 | $ | 211.7 | $ | 204.0 | $ | 194.3 | ||||||||||||||||
Regulatory liabilities, current: | ||||||||||||||||||||||||
Competitive bidding | $ | 16.1 | $ | 9.1 | ||||||||||||||||||||
Energy efficiency program | $ | 9.2 | $ | — | 14.1 | 9.2 | ||||||||||||||||||
Competitive bidding | 9.1 | — | ||||||||||||||||||||||
Transmission costs | 3.7 | 2.9 | 3.3 | 3.7 | ||||||||||||||||||||
Reconciliation rider | 2.1 | — | — | 2.1 | ||||||||||||||||||||
Other miscellaneous | 0.3 | 1.5 | 0.2 | 0.3 | ||||||||||||||||||||
Total regulatory liabilities, current | 24.4 | 4.4 | 33.7 | 24.4 | ||||||||||||||||||||
Regulatory liabilities, non-current: | ||||||||||||||||||||||||
Estimated costs of removal - regulated property | $ | 121.8 | $ | 119.3 | 126.5 | 121.8 | ||||||||||||||||||
Postretirement benefits | 5.2 | 4.8 | 3.9 | 5.2 | ||||||||||||||||||||
Total regulatory liabilities, non-current | 127.0 | 124.1 | 130.4 | 127.0 | ||||||||||||||||||||
Total regulatory liabilities | $ | 151.4 | $ | 128.5 | $ | 164.1 | $ | 151.4 |
December 31, | December 31, | |||||||||||||||||||||||
$ in millions | 2015 | Composite Rate | 2014 | Composite Rate | 2016 | Composite Rate | 2015 | Composite Rate | ||||||||||||||||
Regulated: | ||||||||||||||||||||||||
Transmission | $ | 239.4 | 3.9% | $ | 227.5 | 4.1% | $ | 247.3 | 3.9% | $ | 239.4 | 3.9% | ||||||||||||
Distribution | 1,085.7 | 5.0% | 1,011.7 | 5.4% | 1,141.1 | 4.7% | 1,085.7 | 5.0% | ||||||||||||||||
General | 65.9 | 12.4% | 62.5 | 12.4% | 13.7 | 7.4% | 13.9 | 7.2% | ||||||||||||||||
Non-depreciable | 62.5 | N/A | 61.6 | N/A | 63.5 | N/A | 62.5 | N/A | ||||||||||||||||
Total regulated | 1,453.5 | 1,363.3 | 1,465.6 | 1,401.5 | ||||||||||||||||||||
Unregulated: | ||||||||||||||||||||||||
Production / Generation | 1,418.7 | 4.2% | 1,354.9 | 5.4% | 483.2 | 11.7% | 1,413.1 | 4.2% | ||||||||||||||||
Other | 17.0 | 8.1% | 16.1 | 5.5% | 17.0 | 8.0% | 16.3 | 12.1% | ||||||||||||||||
Non-depreciable | 19.8 | N/A | 19.8 | N/A | 19.8 | N/A | 19.8 | N/A | ||||||||||||||||
Total unregulated | 1,455.5 | 1,390.8 | 520.0 | 1,449.2 | ||||||||||||||||||||
Total property, plant and equipment in service | $ | 2,909.0 | 4.6% | $ | 2,754.1 | 5.3% | $ | 1,985.6 | 6.1% | $ | 2,850.7 | 4.4% |
DP&L Share | DPL Carrying Value | DP&L Share | DPL Carrying Value | |||||||||||||||||||||||||||||||
Ownership (%) | Summer Production Capacity (MW) | Gross Plant In Service ($ in millions) | Accumulated Depreciation ($ in millions) | Construction Work in Process ($ in millions) | Ownership (%) | Summer Production Capacity (MW) | Gross Plant In Service ($ in millions) | Accumulated Depreciation ($ in millions) | Construction Work in Process ($ in millions) | |||||||||||||||||||||||||
Jointly-owned production units | ||||||||||||||||||||||||||||||||||
Conesville - Unit 4 | 16.5 | 129 | $ | 26 | $ | 4 | $ | 1 | 16.5 | 129 | $ | — | $ | — | $ | — | ||||||||||||||||||
Killen - Unit 2 | 67.0 | 402 | 342 | 29 | 2 | 67.0 | 402 | 34 | — | 2 | ||||||||||||||||||||||||
Miami Fort - Units 7 and 8 | 36.0 | 368 | 219 | 32 | 6 | 36.0 | 368 | 27 | — | 7 | ||||||||||||||||||||||||
Stuart - Units 1 through 4 | 35.0 | 808 | 236 | 19 | 18 | 35.0 | 808 | 24 | — | 23 | ||||||||||||||||||||||||
Zimmer - Unit 1 | 28.1 | 371 | 188 | 44 | 12 | 28.1 | 371 | 7 | — | 9 | ||||||||||||||||||||||||
Transmission (at varying percentages) | 43 | 8 | — | 43 | 10 | — | ||||||||||||||||||||||||||||
Total | 2,078 | $ | 1,054 | $ | 136 | $ | 39 | 2,078 | $ | 135 | $ | 10 | $ | 41 |
$ in millions | ||||||
Balance at December 31, 2013 | $ | 24.4 | ||||
Calendar 2014 | ||||||
Additions | 3.6 | |||||
Accretion expense | 0.9 | |||||
Settlements | (2.0 | ) | ||||
Balance at December 31, 2014 | 26.9 | $ | 26.9 | |||
Calendar 2015 | ||||||
Additions | 40.3 | 40.3 | ||||
Accretion expense | 1.9 | 1.9 | ||||
Settlements | (3.2 | ) | (3.2 | ) | ||
Balance at December 31, 2015 | $ | 65.9 | 65.9 | |||
Calendar 2016 | ||||||
Additions | 70.2 | |||||
Accretion expense | 2.7 | |||||
Settlements | — | |||||
Balance at December 31, 2016 | $ | 138.8 |
$ in millions | ||||||
Balance at December 31, 2013 | $ | 115.0 | ||||
Calendar 2014 | ||||||
Additions | 19.6 | |||||
Settlements | (15.3 | ) | ||||
Balance at December 31, 2014 | 119.3 | $ | 119.3 | |||
Calendar 2015 | ||||||
Additions | 24.3 | 24.3 | ||||
Settlements | (21.8 | ) | (21.8 | ) | ||
Balance at December 31, 2015 | $ | 121.8 | 121.8 | |||
Calendar 2016 | ||||||
Additions | 11.7 | |||||
Settlements | (7.0 | ) | ||||
Balance at December 31, 2016 | $ | 126.5 |
December 31, 2015 | December 31, 2014 | December 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||
$ in millions | Carrying Value | Fair Value | Carrying Value | Fair Value | Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Money market funds | $ | 0.2 | $ | 0.2 | $ | 0.1 | $ | 0.1 | $ | 0.4 | $ | 0.4 | $ | 0.2 | $ | 0.2 | ||||||||||||||||
Equity securities | 3.0 | 3.8 | 2.7 | 3.7 | 2.4 | 3.4 | 3.0 | 3.8 | ||||||||||||||||||||||||
Debt securities | 4.4 | 4.3 | 4.7 | 4.7 | 4.4 | 4.4 | 4.4 | 4.3 | ||||||||||||||||||||||||
Hedge Funds | 0.4 | 0.4 | 0.8 | 0.8 | ||||||||||||||||||||||||||||
Real Estate | 0.3 | 0.3 | 0.4 | 0.4 | ||||||||||||||||||||||||||||
Hedge funds | — | 0.1 | 0.4 | 0.4 | ||||||||||||||||||||||||||||
Real estate | 0.3 | 0.3 | 0.3 | 0.3 | ||||||||||||||||||||||||||||
Tangible assets | 0.1 | 0.1 | — | — | ||||||||||||||||||||||||||||
Total assets | $ | 8.3 | $ | 9.0 | $ | 8.7 | $ | 9.7 | $ | 7.6 | $ | 8.7 | $ | 8.3 | $ | 9.0 | ||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debt | $ | 2,009.4 | $ | 1,975.3 | $ | 2,159.7 | $ | 2,204.8 | $ | 1,858.4 | $ | 1,907.7 | $ | 1,993.3 | $ | 1,975.3 |
Assets and Liabilities at Fair Value | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
$ in millions | Fair Value at December 31, 2016 (a) | Based on Quoted Prices in Active Markets | Other observable inputs | Unobservable inputs | ||||||||||||
Assets | ||||||||||||||||
Master trust assets | ||||||||||||||||
Money market funds | $ | 0.4 | $ | 0.4 | $ | — | $ | — | ||||||||
Equity securities | 3.4 | — | 3.4 | — | ||||||||||||
Debt securities | 4.4 | — | 4.4 | — | ||||||||||||
Hedge funds | 0.1 | — | 0.1 | — | ||||||||||||
Real estate | 0.3 | — | 0.3 | — | ||||||||||||
Tangible assets | 0.1 | — | 0.1 | — | ||||||||||||
Total Master trust assets | 8.7 | 0.4 | 8.3 | — | ||||||||||||
Derivative assets | ||||||||||||||||
Forward power contracts | 19.5 | — | 19.5 | — | ||||||||||||
Interest rate hedge | 1.2 | — | 1.2 | — | ||||||||||||
FTRs | 0.1 | — | — | 0.1 | ||||||||||||
Total Derivative assets | 20.8 | — | 20.7 | 0.1 | ||||||||||||
Total assets | $ | 29.5 | $ | 0.4 | $ | 29.0 | $ | 0.1 | ||||||||
Liabilities | ||||||||||||||||
FTRs | $ | — | $ | — | $ | — | $ | — | ||||||||
Interest rate hedge | 0.7 | — | 0.7 | — | ||||||||||||
Forward power contracts | 28.5 | — | 26.0 | 2.5 | ||||||||||||
Total derivative liabilities | 29.2 | — | 26.7 | 2.5 | ||||||||||||
Long-term debt | 1,907.7 | — | 1,889.7 | 18.0 | ||||||||||||
Total liabilities | $ | 1,936.9 | $ | — | $ | 1,916.4 | $ | 20.5 |
(a) | Includes credit valuation adjustment. |
Assets and Liabilities at Fair Value | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
$ in millions | Fair Value at December 31, 2015 (a) | Based on Quoted Prices in Active Markets | Other observable inputs | Unobservable inputs | ||||||||||||
Assets | ||||||||||||||||
Master trust assets | ||||||||||||||||
Money market funds | $ | 0.2 | $ | 0.2 | $ | — | $ | — | ||||||||
Equity securities | 3.8 | — | 3.8 | — | ||||||||||||
Debt securities | 4.3 | — | 4.3 | — | ||||||||||||
Hedge Funds | 0.4 | — | 0.4 | — | ||||||||||||
Real Estate | 0.3 | — | 0.3 | — | ||||||||||||
Total Master trust assets | 9.0 | 0.2 | 8.8 | — | ||||||||||||
Derivative assets | ||||||||||||||||
Forward power contracts | 30.5 | — | 30.5 | — | ||||||||||||
FTRs | 0.2 | — | — | 0.2 | ||||||||||||
Total Derivative assets | $ | 30.7 | $ | — | $ | 30.5 | $ | 0.2 | ||||||||
Total assets | $ | 39.7 | $ | 0.2 | $ | 39.3 | $ | 0.2 | ||||||||
Liabilities | ||||||||||||||||
FTRs | 0.5 | $ | — | $ | — | $ | 0.5 | |||||||||
Forward power contracts | 27.0 | — | 23.9 | 3.1 | ||||||||||||
Total derivative liabilities | 27.5 | — | 23.9 | 3.6 | ||||||||||||
Long-term debt | 1,975.3 | — | 1,957.2 | 18.1 | ||||||||||||
Total liabilities | $ | 2,002.8 | $ | — | $ | 1,981.1 | $ | 21.7 |
Assets and Liabilities at Fair Value | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
$ in millions | Fair Value at December 31, 2014 (a) | Based on Quoted Prices in Active Markets | Other observable inputs | Unobservable inputs | Fair Value at December 31, 2015 (a) | Based on Quoted Prices in Active Markets | Other observable inputs | Unobservable inputs | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Master trust assets | ||||||||||||||||||||||||||||||||
Money market funds | $ | 0.1 | $ | 0.1 | $ | — | $ | — | $ | 0.2 | $ | 0.2 | $ | — | $ | — | ||||||||||||||||
Equity securities | 3.7 | 3.7 | — | — | 3.8 | — | 3.8 | — | ||||||||||||||||||||||||
Debt securities | 4.7 | 4.7 | — | — | 4.3 | — | 4.3 | — | ||||||||||||||||||||||||
Hedge Funds | 0.8 | — | 0.8 | — | ||||||||||||||||||||||||||||
Real Estate | 0.4 | 0.4 | — | — | ||||||||||||||||||||||||||||
Hedge funds | 0.4 | — | 0.4 | — | ||||||||||||||||||||||||||||
Real estate | 0.3 | — | 0.3 | — | ||||||||||||||||||||||||||||
Total Master trust assets | 9.7 | 8.9 | 0.8 | — | 9.0 | 0.2 | 8.8 | — | ||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||
Forward power contracts | 14.9 | — | 13.7 | 1.2 | 30.5 | — | 30.5 | — | ||||||||||||||||||||||||
FTRs | 0.2 | — | — | 0.2 | ||||||||||||||||||||||||||||
Total derivative assets | 14.9 | — | 13.7 | 1.2 | 30.7 | — | 30.5 | 0.2 | ||||||||||||||||||||||||
Total assets | $ | 24.6 | $ | 8.9 | $ | 14.5 | $ | 1.2 | $ | 39.7 | $ | 0.2 | $ | 39.3 | $ | 0.2 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
FTRs | $ | 0.6 | $ | — | $ | — | $ | 0.6 | $ | 0.5 | $ | — | $ | — | $ | 0.5 | ||||||||||||||||
Heating oil futures | 0.4 | 0.4 | — | — | ||||||||||||||||||||||||||||
Natural gas futures | 0.1 | 0.1 | — | — | ||||||||||||||||||||||||||||
Forward power contracts | 11.1 | — | 11.1 | — | 27.0 | — | 23.9 | 3.1 | ||||||||||||||||||||||||
Total derivative liabilities | 12.2 | 0.5 | 11.1 | 0.6 | 27.5 | — | 23.9 | 3.6 | ||||||||||||||||||||||||
Long-term debt | 2,204.8 | — | 2,186.6 | 18.2 | 1,975.3 | — | 1,957.2 | 18.1 | ||||||||||||||||||||||||
Total liabilities | $ | 2,217.0 | $ | 0.5 | $ | 2,197.7 | $ | 18.8 | $ | 2,002.8 | $ | — | $ | 1,981.1 | $ | 21.7 |
(a) | Includes credit valuation adjustment. |
$ in millions | Year ended December 31, 2015 | |||||||||||||||||||
Carrying | Fair Value | Gross | ||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Loss | ||||||||||||||||
Goodwill (b) | ||||||||||||||||||||
DP&L reporting unit | $ | 317.0 | $ | — | $ | — | $ | — | $ | 317.0 |
$ in millions | Year ended December 31, 2014 | |||||||||||||||||||
Carrying | Fair Value | Gross | ||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Loss | ||||||||||||||||
Assets | ||||||||||||||||||||
Long-lived assets held and used (a) | ||||||||||||||||||||
DP&L (East Bend) | $ | 14.2 | $ | — | $ | — | $ | 2.7 | $ | 11.5 | ||||||||||
Goodwill (b) | ||||||||||||||||||||
DPLER Reporting unit | $ | 135.8 | $ | — | $ | — | $ | — | $ | 135.8 |
$ in millions | Year ended December 31, 2013 | |||||||||||||||||||
Carrying | Fair Value | Gross | ||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Loss | ||||||||||||||||
Assets | ||||||||||||||||||||
Long-lived assets held and used (a) | ||||||||||||||||||||
DP&L (Conesville) | $ | 26.2 | $ | — | $ | — | $ | — | $ | 26.2 | ||||||||||
Goodwill (b) | ||||||||||||||||||||
DP&L Reporting unit | $ | 623.3 | $ | — | $ | — | $ | 317.0 | $ | 306.3 |
Measurement | Carrying | Fair Value | Gross | |||||||||||||||||||
$ in millions | Date | Amount | Level 1 | Level 2 | Level 3 | Loss | ||||||||||||||||
Long-lived assets (a) | ||||||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||
Killen | December 31, 2016 | $ | 118.2 | $ | — | $ | — | $ | 42.8 | $ | 75.4 | |||||||||||
Stuart | December 31, 2016 | $ | 285.9 | $ | — | $ | — | $ | 57.4 | 228.5 | ||||||||||||
Miami Fort | December 31, 2016 | $ | 185.9 | $ | — | $ | — | $ | 36.5 | 149.4 | ||||||||||||
Zimmer | December 31, 2016 | $ | 168.4 | $ | — | $ | — | $ | 23.7 | 144.7 | ||||||||||||
Conesville | December 31, 2016 | $ | 25.0 | $ | — | $ | — | $ | 1.1 | 23.9 | ||||||||||||
Hutchings peaking facilities | December 31, 2016 | $ | 3.2 | $ | — | $ | — | $ | 1.6 | 1.6 | ||||||||||||
Killen | June 30, 2016 | $ | 315.1 | $ | — | $ | — | $ | 84.3 | 230.8 | ||||||||||||
Certain peaking facilities | June 30, 2016 | $ | 9.9 | $ | — | $ | — | $ | 5.2 | 4.7 | ||||||||||||
Total impairment loss | $ | 859.0 | ||||||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||
East Bend | March 31, 2014 | $ | 14.2 | $ | — | $ | — | $ | 2.7 | $ | 11.5 | |||||||||||
Goodwill (b) | ||||||||||||||||||||||
Year ended December 31, 2015 | ||||||||||||||||||||||
DP&L reporting unit | December 31, 2015 | $ | 317.0 | $ | — | $ | — | $ | — | $ | 317.0 | |||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||
DPLER Reporting unit | June 30, 2014 | $ | 135.8 | $ | — | $ | — | $ | — | $ | 135.8 |
(a) | See Note 15 – Fixed-asset Impairment for further information |
(b) | See Note 7 – Goodwill |
$ in millions | Measurement date | Fair value | Valuation technique | Unobservable input | Range (weighted average) | |||||||
Long-lived assets held and used: | ||||||||||||
Year ended December 31, 2016 | ||||||||||||
Killen | December 31, 2016 | $ | 42.8 | Discounted cash flow | Annual revenue growth | -14.2% to 2.9% (-8.0%) | ||||||
Annual pre-tax operating margin | -56.6% to 42.4% (-15.5%) | |||||||||||
Weighted-average cost of capital | 10.0% | |||||||||||
Stuart | December 31, 2016 | $ | 57.4 | Discounted cash flow | Annual revenue growth | -11.9% to 1.1% (-4.7%) | ||||||
Annual pre-tax operating margin | -61.4% to 75.1% (8.0%) | |||||||||||
Weighted-average cost of capital | 10.0% | |||||||||||
Miami Fort | December 31, 2016 | $ | 36.5 | Market value | Indicative offer price | |||||||
Zimmer | December 31, 2016 | $ | 23.7 | Market value | Indicative offer price | |||||||
Conesville | December 31, 2016 | $ | 1.1 | Discounted cash flow | Annual revenue growth | -19.3% to 10.9% (0.6%) | ||||||
Annual pre-tax operating margin | -54.3% to 99.4% (20.2%) | |||||||||||
Weighted-average cost of capital | N/A | |||||||||||
Hutchings peaking facilities | December 31, 2016 | $ | 1.6 | Discounted cash flow | Annual revenue growth | -19.5% to 25.9% (-0.7%) | ||||||
Annual pre-tax operating margin | -40.3% to 63.1% (12.1%) | |||||||||||
Weighted-average cost of capital | 7.0% | |||||||||||
Killen | June 30, 2016 | $ | 84.3 | Discounted cash flow | Annual revenue growth | -11.0% to 13.0% (2.0%) | ||||||
Annual pre-tax operating margin | -50.0% to 67.0% (6.0%) | |||||||||||
Weighted-average cost of capital | 11.0% | |||||||||||
Certain peaking facilities | June 30, 2016 | $ | 5.2 | Discounted cash flow | Annual revenue growth | -22.0% to 17.0% (-3.0%) | ||||||
Annual pre-tax operating margin | -29.0% to 24.0% (-4.0%) | |||||||||||
Weighted-average cost of capital | 7.0% |
Commodity | Accounting Treatment | Unit | Purchases (in thousands) | Sales (in thousands) | Net Purchases/ (Sales) (in thousands) | ||||||||
FTRs | Not designated | MWh | 2.3 | — | 2.3 | ||||||||
Natural Gas | Not designated | Dths | 1,590.0 | — | 1,590.0 | ||||||||
Forward Power Contracts | Designated | MWh | 342.9 | (9,974.5 | ) | (9,631.6 | ) | ||||||
Forward Power Contracts | Not designated | MWh | 2,568.3 | (2,020.9 | ) | 547.4 | |||||||
Interest Rate Swaps | Designated | USD | 200,000.0 | — | 200,000.0 |
Commodity | Accounting Treatment | Unit | Purchases (in thousands) | Sales (in thousands) | Net Purchases/ (Sales) (in thousands) | ||||||||
FTRs | Not designated | MWh | 10.2 | — | 10.2 | ||||||||
Forward Power Contracts | Designated | MWh | 1,676.7 | (7,795.8 | ) | (6,119.1 | ) | ||||||
Forward Power Contracts | Not designated | MWh | 5,049.9 | (1,663.0 | ) | 3,386.9 |
Commodity | Accounting Treatment | Unit | Purchases (in thousands) | Sales (in thousands) | Net Purchases/ (Sales) (in thousands) | ||||||||
FTRs | Not designated | MWh | 10.5 | — | 10.5 | ||||||||
Heating Oil Futures | Not designated | Gallons | 378.0 | — | 378.0 | ||||||||
Natural Gas Futures | Not designated | Dths | 200.0 | — | 200.0 | ||||||||
Forward Power Contracts | Designated | MWh | 175.0 | (2,991.0 | ) | (2,816.0 | ) | ||||||
Forward Power Contracts | Not designated | MWh | 1,725.2 | (2,707.8 | ) | (982.6 | ) |
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||
$ in millions (net of tax) | Power | Interest Rate Hedges | Power | Interest Rate Hedges | Power | Interest Rate Hedges | Power | Interest Rate Hedges | Power | Interest Rate Hedges | Power | Interest Rate Hedges | ||||||||||||||||||||||||||||||||||||
Beginning accumulated derivative gain / (loss) in AOCI | $ | 0.2 | $ | 18.3 | $ | 1.4 | $ | 19.2 | $ | (3.0 | ) | $ | 0.5 | |||||||||||||||||||||||||||||||||||
Beginning accumulated derivative gain in AOCI | $ | 9.2 | $ | 17.5 | $ | 0.2 | $ | 18.3 | $ | 1.4 | $ | 19.2 | ||||||||||||||||||||||||||||||||||||
Net gains / (losses) associated with current period hedging transactions | 18.2 | — | (19.0 | ) | — | 1.0 | 18.7 | 15.7 | 0.4 | 18.2 | — | (19.0 | ) | — | ||||||||||||||||||||||||||||||||||
Net gains / (losses) reclassified to earnings: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense | — | (0.8 | ) | — | (0.9 | ) | — | — | — | (0.5 | ) | — | (0.8 | ) | — | (0.9 | ) | |||||||||||||||||||||||||||||||
Revenues | (12.0 | ) | — | 18.3 | — | 2.1 | — | (35.6 | ) | — | (12.0 | ) | — | 18.3 | — | |||||||||||||||||||||||||||||||||
Purchased Power | 2.8 | — | (0.5 | ) | — | 1.3 | — | 6.4 | — | 2.8 | — | (0.5 | ) | — | ||||||||||||||||||||||||||||||||||
Ending accumulated derivative gain in AOCI | $ | 9.2 | $ | 17.5 | $ | 0.2 | $ | 18.3 | $ | 1.4 | $ | 19.2 | ||||||||||||||||||||||||||||||||||||
Ending accumulated derivative gain / (loss) in AOCI | $ | (4.3 | ) | $ | 17.4 | $ | 9.2 | $ | 17.5 | $ | 0.2 | $ | 18.3 | |||||||||||||||||||||||||||||||||||
Net gains / (losses) associated with the ineffective portion of the hedging transaction | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 0.8 | ||||||||||||||||||||||||||||||||||||
Net gains or losses associated with the ineffective portion of the hedging transactions were immaterial in the periods presented. | Net gains or losses associated with the ineffective portion of the hedging transactions were immaterial in the periods presented. | |||||||||||||||||||||||||||||||||||||||||||||||
Portion expected to be reclassified to earnings in the next twelve months (a) | $ | 5.9 | $ | (0.8 | ) | $ | (3.5 | ) | $ | (0.5 | ) | |||||||||||||||||||||||||||||||||||||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 36 | — | 15 | 44 |
(a) | The actual amounts that we reclassify from AOCI to earnings related to power can differ from the estimate above due to market price changes. |
Year ended December 31, 2015 | Year ended December 31, 2016 | |||||||||||||||||||||||||||||||||||||||
$ in millions | Heating Oil | FTRs | Power | Natural Gas | Total | Heating Oil | FTRs | Power | Natural Gas | Total | Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Change in unrealized loss | $ | 0.4 | $ | 0.3 | $ | (6.4 | ) | $ | 0.1 | $ | (5.6 | ) | ||||||||||||||||||||||||||||
Change in unrealized gain / (loss) | $ | — | $ | 0.3 | $ | 4.0 | $ | — | $ | 4.3 | ||||||||||||||||||||||||||||||
Realized gain / (loss) | (0.3 | ) | (0.2 | ) | (9.8 | ) | (0.1 | ) | (10.4 | ) | — | (0.6 | ) | (7.2 | ) | 2.6 | (5.2 | ) | ||||||||||||||||||||||
Total | $ | 0.1 | $ | 0.1 | $ | (16.2 | ) | $ | — | $ | (16.0 | ) | $ | — | $ | (0.3 | ) | $ | (3.2 | ) | $ | 2.6 | $ | (0.9 | ) | Recorded on Balance Sheet: | ||||||||||||||
Regulatory asset | $ | 0.1 | $ | — | $ | — | $ | — | $ | 0.1 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Recorded in Income Statement: gain / (loss) | ||||||||||||||||||||||||||||||||||||||||
Recorded in Statement of Operations: gain / (loss) | Recorded in Statement of Operations: gain / (loss) | |||||||||||||||||||||||||||||||||||||||
Revenue | — | — | (17.3 | ) | — | (17.3 | ) | |||||||||||||||||||||||||||||||||
Purchased Power | — | 0.1 | (43.6 | ) | — | (43.5 | ) | — | (0.3 | ) | 14.1 | 2.6 | 16.4 | |||||||||||||||||||||||||||
Revenue | — | — | 27.4 | — | 27.4 | |||||||||||||||||||||||||||||||||||
Total | $ | 0.1 | $ | 0.1 | $ | (16.2 | ) | $ | — | $ | (16.0 | ) | $ | — | $ | (0.3 | ) | $ | (3.2 | ) | $ | 2.6 | $ | (0.9 | ) |
Year ended December 31, 2014 | Year ended December 31, 2015 | |||||||||||||||||||||||||||||||||||||||
$ in millions | Heating Oil | FTRs | Power | Natural Gas | Total | Heating Oil | FTRs | Power | Natural Gas | Total | Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Change in unrealized gain | $ | (0.6 | ) | $ | (0.8 | ) | $ | (1.5 | ) | $ | (0.1 | ) | $ | (3.0 | ) | |||||||||||||||||||||||||
Realized gain | (0.1 | ) | 0.7 | (3.6 | ) | (0.1 | ) | (3.1 | ) | |||||||||||||||||||||||||||||||
Change in unrealized gain / (loss) | $ | 0.4 | $ | 0.3 | $ | (6.4 | ) | $ | 0.1 | $ | (5.6 | ) | ||||||||||||||||||||||||||||
Realized gain / (loss) | (0.3 | ) | (0.2 | ) | (9.8 | ) | (0.1 | ) | (10.4 | ) | ||||||||||||||||||||||||||||||
Total | $ | (0.7 | ) | $ | (0.1 | ) | $ | (5.1 | ) | $ | (0.2 | ) | $ | (6.1 | ) | $ | 0.1 | $ | 0.1 | $ | (16.2 | ) | $ | — | $ | (16.0 | ) | Recorded on Balance Sheet: | ||||||||||||
Regulatory asset | $ | (0.1 | ) | $ | — | $ | — | $ | — | $ | (0.1 | ) | $ | 0.1 | $ | — | $ | — | $ | — | $ | 0.1 | ||||||||||||||||||
Recorded in Income Statement: gain / (loss) | ||||||||||||||||||||||||||||||||||||||||
Recorded in Statement of Operations: gain / (loss) | Recorded in Statement of Operations: gain / (loss) | |||||||||||||||||||||||||||||||||||||||
Revenue | — | — | 27.4 | — | 27.4 | |||||||||||||||||||||||||||||||||||
Purchased Power | — | (0.1 | ) | (5.1 | ) | (0.2 | ) | (5.4 | ) | — | 0.1 | (43.6 | ) | — | (43.5 | ) | ||||||||||||||||||||||||
Fuel | (0.6 | ) | — | — | — | (0.6 | ) | |||||||||||||||||||||||||||||||||
Total | $ | (0.7 | ) | $ | (0.1 | ) | $ | (5.1 | ) | $ | (0.2 | ) | $ | (6.1 | ) | $ | 0.1 | $ | 0.1 | $ | (16.2 | ) | $ | — | $ | (16.0 | ) |
Year ended December 31, 2013 | Year ended December 31, 2014 | |||||||||||||||||||||||||||||||||||
$ in millions | Heating Oil | FTRs | Power | Total | Heating Oil | FTRs | Power | Natural Gas | Total | Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||
Change in unrealized gain / (loss) | $ | — | $ | 0.3 | $ | 0.6 | $ | 0.9 | $ | (0.6 | ) | $ | (0.8 | ) | $ | (1.5 | ) | $ | (0.1 | ) | $ | (3.0 | ) | |||||||||||||
Realized gain / (loss) | 0.1 | 1.2 | 1.1 | 2.4 | (0.1 | ) | 0.7 | (3.6 | ) | (0.1 | ) | (3.1 | ) | |||||||||||||||||||||||
Total | $ | 0.1 | $ | 1.5 | $ | 1.7 | $ | 3.3 | $ | (0.7 | ) | $ | (0.1 | ) | $ | (5.1 | ) | $ | (0.2 | ) | $ | (6.1 | ) | |||||||||||||
Recorded in Income Statement: gain / (loss) | ||||||||||||||||||||||||||||||||||||
Revenue | — | — | — | — | ||||||||||||||||||||||||||||||||
Recorded on Balance Sheet | Recorded on Balance Sheet | |||||||||||||||||||||||||||||||||||
Regulatory asset | $ | (0.1 | ) | $ | — | $ | — | $ | — | $ | (0.1 | ) | ||||||||||||||||||||||||
Recorded in Statement of Operations: gain / (loss) | Recorded in Statement of Operations: gain / (loss) | |||||||||||||||||||||||||||||||||||
Fuel | (0.6 | ) | — | — | — | (0.6 | ) | |||||||||||||||||||||||||||||
Purchased Power | — | 1.5 | 1.7 | 3.2 | — | (0.1 | ) | (5.1 | ) | (0.2 | ) | (5.4 | ) | |||||||||||||||||||||||
Fuel | 0.1 | — | — | 0.1 | ||||||||||||||||||||||||||||||||
O&M | — | — | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 0.1 | $ | 1.5 | $ | 1.7 | $ | 3.3 | $ | (0.7 | ) | $ | (0.1 | ) | $ | (5.1 | ) | $ | (0.2 | ) | $ | (6.1 | ) |
Fair Values of Derivative Instruments | ||||||||||||||||||
December 31, 2016 | ||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Consolidated Balance Sheets (a) | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | |||||||||||||
Assets | ||||||||||||||||||
Short-term derivative positions (presented in Other current assets) | ||||||||||||||||||
Forward power contracts | Designated | $ | 11.0 | $ | (10.5 | ) | $ | — | $ | 0.5 | ||||||||
Forward power contracts | Not designated | 6.0 | (4.7 | ) | — | 1.3 | ||||||||||||
FTRs | Not designated | 0.1 | — | — | 0.1 | |||||||||||||
Long-term derivative positions (presented in Other deferred assets) | ||||||||||||||||||
Interest Rate Swaps | Designated | 1.2 | — | — | 1.2 | |||||||||||||
Forward power contracts | Designated | 0.6 | (0.6 | ) | — | — | ||||||||||||
Forward power contracts | Not designated | 1.9 | (1.0 | ) | — | 0.9 | ||||||||||||
Total assets | $ | 20.8 | $ | (16.8 | ) | $ | — | $ | 4.0 | |||||||||
Liabilities | ||||||||||||||||||
Short-term derivative positions (presented in Other current liabilities) | ||||||||||||||||||
Interest Rate Swaps | Designated | $ | 0.7 | $ | — | $ | — | $ | 0.7 | |||||||||
Forward power contracts | Designated | $ | 16.4 | $ | (10.5 | ) | $ | (5.5 | ) | $ | 0.4 | |||||||
Forward power contracts | Not designated | 7.7 | (4.7 | ) | — | 3.0 | ||||||||||||
FTRs | Not designated | — | — | — | — | |||||||||||||
Long-term derivative positions (presented in Other deferred liabilities) | ||||||||||||||||||
Forward power contracts | Designated | 2.4 | (0.6 | ) | (0.8 | ) | 1.0 | |||||||||||
Forward power contracts | Not designated | 2.0 | (1.0 | ) | — | 1.0 | ||||||||||||
Total liabilities | $ | 29.2 | $ | (16.8 | ) | $ | (6.3 | ) | $ | 6.1 |
(a) | Includes credit valuation adjustment. |
Fair Values of Derivative Instruments | ||||||||||||||||||
December 31, 2015 | ||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Consolidated Balance Sheets (a) | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | |||||||||||||
Assets | ||||||||||||||||||
Short-term derivative positions (presented in Other current assets) | ||||||||||||||||||
Forward power contracts | Designated | $ | 16.2 | $ | (7.1 | ) | $ | — | $ | 9.1 | ||||||||
Forward power contracts | Not designated | 7.3 | (5.5 | ) | — | 1.8 | ||||||||||||
FTRs | Not designated | 0.2 | (0.2 | ) | — | — | ||||||||||||
Long-term derivative positions (presented in Other deferred assets) | ||||||||||||||||||
Forward power contracts | Designated | 3.0 | (2.4 | ) | — | 0.6 | ||||||||||||
Forward power contracts | Not designated | 4.0 | (2.7 | ) | — | 1.3 | ||||||||||||
Total assets | $ | 30.7 | $ | (17.9 | ) | $ | — | $ | 12.8 | |||||||||
Liabilities | ||||||||||||||||||
Short-term derivative positions (presented in Other current liabilities) | ||||||||||||||||||
Forward power contracts | Designated | $ | 7.1 | $ | (7.1 | ) | $ | — | $ | — | ||||||||
Forward power contracts | Not designated | 14.5 | (5.5 | ) | (8.0 | ) | 1.0 | |||||||||||
FTRs | Not designated | 0.5 | (0.2 | ) | — | 0.3 | ||||||||||||
Long-term derivative positions (presented in Other deferred liabilities) | ||||||||||||||||||
Forward power contracts | Designated | 2.7 | (2.4 | ) | — | 0.3 | ||||||||||||
Forward power contracts | Not designated | 2.7 | (2.7 | ) | — | — | ||||||||||||
Total liabilities | $ | 27.5 | $ | (17.9 | ) | $ | (8.0 | ) | $ | 1.6 |
(a) | Includes credit valuation adjustment. |
Fair Values of Derivative Instruments | ||||||||||||||||||
December 31, 2014 | ||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Consolidated Balance Sheets (a) | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | |||||||||||||
Assets | ||||||||||||||||||
Short-term derivative positions (presented in Other current assets) | ||||||||||||||||||
Forward power contracts | Designated | $ | 5.6 | $ | (2.0 | ) | $ | — | $ | 3.6 | ||||||||
Forward power contracts | Not designated | 5.5 | (3.4 | ) | — | 2.1 | ||||||||||||
Long-term derivative positions (presented in Other deferred assets) | ||||||||||||||||||
Forward power contracts | Designated | 0.3 | (0.3 | ) | — | — | ||||||||||||
Forward power contracts | Not designated | 3.5 | (0.9 | ) | — | 2.6 | ||||||||||||
Total assets | $ | 14.9 | $ | (6.6 | ) | $ | — | $ | 8.3 | |||||||||
Liabilities | ||||||||||||||||||
Short-term derivative positions (presented in Other current liabilities) | ||||||||||||||||||
Forward power contracts | Designated | $ | 2.1 | $ | (2.0 | ) | $ | — | $ | 0.1 | ||||||||
Forward power contracts | Not designated | 7.5 | (3.4 | ) | (4.1 | ) | — | |||||||||||
FTRs | Not designated | 0.6 | — | — | 0.6 | |||||||||||||
Heating Oil Futures | Not designated | 0.4 | — | (0.4 | ) | — | ||||||||||||
Natural Gas | Not designated | 0.1 | — | (0.1 | ) | — | ||||||||||||
Long-term derivative positions (presented in Other deferred liabilities) | ||||||||||||||||||
Forward power contracts | Designated | 0.6 | (0.3 | ) | (0.3 | ) | — | |||||||||||
Forward power contracts | Not designated | 0.9 | (0.9 | ) | — | — | ||||||||||||
Total liabilities | $ | 12.2 | $ | (6.6 | ) | $ | (4.9 | ) | $ | 0.7 |
$ in millions | DP&L Reporting Unit | DPLER Reporting Unit | Total | DP&L Reporting Unit | ||||||||||||
Balance at December 31, 2013 | ||||||||||||||||
Goodwill | $ | 2,440.5 | $ | 135.8 | $ | 2,576.3 | ||||||||||
Accumulated impairment losses | (2,123.5 | ) | — | (2,123.5 | ) | |||||||||||
Net balance at December 31, 2013 | $ | 317.0 | $ | 135.8 | $ | 452.8 | ||||||||||
Goodwill impairments during 2014 | $ | — | $ | (135.8 | ) | $ | (135.8 | ) | ||||||||
Balance at December 31, 2014 | ||||||||||||||||
Goodwill | $ | 2,440.5 | $ | 135.8 | $ | 2,576.3 | $ | 2,440.5 | ||||||||
Accumulated impairment losses | (2,123.5 | ) | (135.8 | ) | (2,259.3 | ) | (2,123.5 | ) | ||||||||
Net balance at December 31, 2014 | $ | 317.0 | $ | — | $ | 317.0 | $ | 317.0 | ||||||||
Goodwill impairments during 2015 | $ | (317.0 | ) | $ | — | $ | (317.0 | ) | $ | (317.0 | ) | |||||
Balance at December 31, 2015 | ||||||||||||||||
Goodwill | $ | 2,440.5 | $ | 135.8 | $ | 2,576.3 | $ | 2,440.5 | ||||||||
Accumulated impairment losses | (2,440.5 | ) | (135.8 | ) | (2,576.3 | ) | (2,440.5 | ) | ||||||||
Net balance at December 31, 2015 | $ | — | $ | — | $ | — | $ | — |
Long-term debt | ||||||||||||||||||||||||
$ in millions | Interest Rate | Maturity | December 31, 2015 | December 31, 2014 | Interest Rate | Maturity | December 31, 2016 | December 31, 2015 | ||||||||||||||||
First mortgage bonds | 1.875% | 2016 | $ | 445.0 | $ | 445.0 | ||||||||||||||||||
Pollution control series | 4.7% | 2028 | — | 35.3 | ||||||||||||||||||||
Pollution control series | 4.8% | 2034 | — | 179.1 | ||||||||||||||||||||
Pollution control series | 4.8% | 2036 | 100.0 | 100.0 | ||||||||||||||||||||
Pollution control series - rates from: 0.02% - 0.12% and 0.04% - 0.15% (a) | 2040 | — | 100.0 | |||||||||||||||||||||
Pollution control series - rates from: 1.13% - 1.17% | 2020 | 200.0 | — | |||||||||||||||||||||
Term loan - rates from: 4.00% - 4.01% (a) | 2022 | $ | 445.0 | $ | — | |||||||||||||||||||
First Mortgage Bonds | 1.875% | — | 445.0 | |||||||||||||||||||||
Tax-exempt First Mortgage Bonds | 4.8% | 2036 | 100.0 | 100.0 | ||||||||||||||||||||
Tax-exempt First Mortgage Bonds - rates from: 1.29% - 1.42% (a) and 1.13% - 1.17% (b) | 2020 | 200.0 | 200.0 | |||||||||||||||||||||
U.S. Government note | 4.2% | 2061 | 18.1 | 18.2 | 4.2% | 2061 | 18.0 | 18.1 | ||||||||||||||||
Capital leases | 0.4 | — | ||||||||||||||||||||||
Unamortized deferred financing costs | (10.7 | ) | (5.0 | ) | ||||||||||||||||||||
Unamortized debt discounts and premiums, net | (3.6 | ) | (2.8 | ) | (5.5 | ) | (3.6 | ) | ||||||||||||||||
Total long-term debt at subsidiary | 759.5 | 874.8 | 747.2 | 754.5 | ||||||||||||||||||||
Bank term loan - rates from: 2.44% - 2.67% and 2.41% - 2.44% (a) | 2020 | 125.0 | 160.0 | |||||||||||||||||||||
Bank term loan - rates from: 2.67% - 3.02% (a) and 2.44% - 2.67% (b) | 2020 | 125.0 | 125.0 | |||||||||||||||||||||
Senior unsecured bonds | 6.5% | 2016 | 130.0 | 130.0 | 6.5% | — | 130.0 | |||||||||||||||||
Senior unsecured bonds | 6.75% | 2019 | 200.0 | 200.0 | 6.75% | 2019 | 200.0 | 200.0 | ||||||||||||||||
Senior unsecured bonds | 7.25% | 2021 | 780.0 | 780.0 | 7.25% | 2021 | 780.0 | 780.0 | ||||||||||||||||
Note to DPL Capital Trust II | 8.125% | 2031 | 15.6 | 15.6 | 8.125% | 2031 | 15.6 | 15.6 | ||||||||||||||||
Unamortized deferred financing costs | (8.8 | ) | (11.1 | ) | ||||||||||||||||||||
Unamortized debt discounts and premiums, net | (0.7 | ) | (0.7 | ) | (0.6 | ) | (0.7 | ) | ||||||||||||||||
Subtotal | $ | 2,009.4 | $ | 2,159.7 | 1,858.4 | 1,993.3 | ||||||||||||||||||
Less: current portion | (574.9 | ) | (20.1 | ) | (29.7 | ) | (572.8 | ) | ||||||||||||||||
Total | 1,434.5 | 2,139.6 | $ | 1,828.7 | $ | 1,420.5 |
(a) | Range of interest rates for the |
(b) | Range of interest rates for the year ended December 31, 2015. |
(c) | Note payable to related party. See Note 13 – Related Party Transactions for additional information. |
Due within the years ending December 31, | ||||||
Due during the years ending December 31, | ||||||
$ in millions | ||||||
2016 | $ | 575.1 | ||||
2017 | 25.1 | $ | 29.7 | |||
2018 | 25.1 | 29.6 | ||||
2019 | 225.2 | 229.6 | ||||
2020 | 250.2 | 254.6 | ||||
2021 | 784.6 | |||||
Thereafter | 913.0 | 555.5 | ||||
2,013.7 | 1,883.6 | |||||
Unamortized discounts and premiums, net | (4.3 | ) | (6.1 | ) | ||
Total long-term debt | $ | 2,009.4 | $ | 1,877.5 |
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||
Computation of tax expense | ||||||||||||||||||||||||
Computation of tax expense / (benefit) | ||||||||||||||||||||||||
Federal income tax expense / (benefit)(a) | $ | (81.0 | ) | $ | 25.4 | $ | (71.7 | ) | $ | (277.6 | ) | $ | (81.0 | ) | $ | 25.4 | ||||||||
Increases (decreases) in tax resulting from: | ||||||||||||||||||||||||
State income taxes, net of federal effect | (0.1 | ) | 0.8 | 1.1 | (1.0 | ) | (0.1 | ) | 0.8 | |||||||||||||||
Depreciation of AFUDC - Equity | (3.5 | ) | (3.4 | ) | (3.2 | ) | 2.7 | (3.5 | ) | (3.4 | ) | |||||||||||||
Investment tax credit amortized | (0.5 | ) | (0.5 | ) | (0.5 | ) | (0.4 | ) | (0.5 | ) | (0.5 | ) | ||||||||||||
Section 199 - domestic production deduction | (4.1 | ) | (1.1 | ) | (4.1 | ) | (4.5 | ) | (4.1 | ) | (1.1 | ) | ||||||||||||
Non-deductible goodwill impairment | 111.0 | — | 107.2 | — | 111.0 | — | ||||||||||||||||||
Accrual (settlement) for open tax years | — | (6.6 | ) | (8.8 | ) | 2.2 | — | (6.6 | ) | |||||||||||||||
Other, net (b) | (1.8 | ) | 0.8 | (0.2 | ) | (0.2 | ) | (1.8 | ) | 0.8 | ||||||||||||||
Total tax expense | $ | 20.0 | $ | 15.4 | $ | 19.8 | ||||||||||||||||||
Tax expense / (benefit) | $ | (278.8 | ) | $ | 20.0 | $ | 15.4 | |||||||||||||||||
Components of tax expense | ||||||||||||||||||||||||
Components of tax expense / (benefit) | ||||||||||||||||||||||||
Federal - current | $ | 30.1 | $ | (5.2 | ) | $ | (2.5 | ) | $ | 14.7 | $ | 30.1 | $ | (5.2 | ) | |||||||||
State and Local - current | 0.8 | 0.4 | — | 0.6 | 0.8 | 0.4 | ||||||||||||||||||
Total current | 30.9 | (4.8 | ) | (2.5 | ) | 15.3 | 30.9 | (4.8 | ) | |||||||||||||||
Federal - deferred | (9.9 | ) | 19.6 | 20.6 | (290.2 | ) | (9.9 | ) | 19.6 | |||||||||||||||
State and local - deferred | (1.0 | ) | 0.6 | 1.7 | (3.9 | ) | (1.0 | ) | 0.6 | |||||||||||||||
Total deferred | (10.9 | ) | 20.2 | 22.3 | (294.1 | ) | (10.9 | ) | 20.2 | |||||||||||||||
Total tax expense | $ | 20.0 | $ | 15.4 | $ | 19.8 | ||||||||||||||||||
Tax expense / (benefit) | $ | (278.8 | ) | $ | 20.0 | $ | 15.4 |
(a) | The statutory tax rate of 35% was applied to pre-tax earnings. |
(b) | Includes expense of $(0.3) million, $0.2 million and $0.4 million in the years ended December 31, 2016, 2015, and 2014, respectively, of income tax related to adjustments from prior years. |
Years ended December 31, | Years ended December 31, | |||||||||||||||||
2015 | 2014 | 2013 | 2016 | 2015 | 2014 | |||||||||||||
Statutory Federal tax rate | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | ||||||
State taxes, net of Federal tax benefit | 0.1 | % | 1.1 | % | (0.6 | )% | 0.1 | % | 0.1 | % | 1.1 | % | ||||||
AFUDC - Equity | 1.5 | % | (4.7 | )% | 1.5 | % | (0.3 | )% | 1.5 | % | (4.7 | )% | ||||||
Amortization of investment tax credits | 0.2 | % | (0.7 | )% | 0.2 | % | — | % | 0.2 | % | (0.7 | )% | ||||||
Section 199 - domestic production deduction | 1.8 | % | (1.6 | )% | 2.0 | % | 0.6 | % | 1.8 | % | (1.6 | )% | ||||||
Non-deductible goodwill impairment | (48.0 | )% | — | % | (52.1 | )% | — | % | (48.0 | )% | — | % | ||||||
Other, net | 0.8 | % | (7.9 | )% | 4.3 | % | (0.3 | )% | 0.8 | % | (7.9 | )% | ||||||
Effective tax rate | (8.6 | )% | 21.2 | % | (9.7 | )% | 35.1 | % | (8.6 | )% | 21.2 | % |
Components of Deferred Tax Assets and Liabilities | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
$ in millions | 2015 | 2014 | 2016 | 2015 | ||||||||||||
Net non-current Assets / (Liabilities) | ||||||||||||||||
Net non-current assets / (liabilities) | ||||||||||||||||
Depreciation / property basis | $ | (539.8 | ) | $ | (548.2 | ) | $ | (255.3 | ) | $ | (539.8 | ) | ||||
Income taxes recoverable | (12.0 | ) | (14.8 | ) | (11.9 | ) | (12.0 | ) | ||||||||
Regulatory assets | (10.6 | ) | (18.0 | ) | (7.8 | ) | (10.6 | ) | ||||||||
Investment tax credit | 0.7 | 1.5 | 0.5 | 0.7 | ||||||||||||
Compensation and employee benefits | 3.1 | 3.2 | 5.5 | 3.1 | ||||||||||||
Intangibles | (8.4 | ) | (7.0 | ) | (1.5 | ) | (8.4 | ) | ||||||||
Long-term debt | (1.1 | ) | (1.5 | ) | (0.7 | ) | (1.1 | ) | ||||||||
Other | (0.6 | ) | (2.5 | ) | 18.8 | (0.6 | ) | |||||||||
Net non-current liabilities | $ | (568.7 | ) | $ | (587.3 | ) | $ | (252.4 | ) | $ | (568.7 | ) | ||||
Net current Assets / (Liabilities) (d) | ||||||||||||||||
Other | $ | — | $ | 1.1 | ||||||||||||
Net current assets / (liabilities) | $ | — | $ | 1.1 |
(a) | The |
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||
Tax expense / (benefit) | $ | 6.3 | $ | (9.1 | ) | $ | 15.4 | $ | (9.6 | ) | $ | 6.3 | $ | (9.1 | ) |
$ in millions | ||||||
Balance at December 31, 2013 | $ | 8.8 | ||||
Calendar 2014 | ||||||
Tax positions taken during prior period | 2.8 | |||||
Lapse of Statute of Limitations | (8.6 | ) | ||||
Balance at December 31, 2014 | 3.0 | $ | 3.0 | |||
Calendar 2015 | ||||||
Tax positions taken during prior period | — | — | ||||
Lapse of Statute of Limitations | — | — | ||||
Balance at December 31, 2015 | $ | 3.0 | 3.0 | |||
Calendar 2016 | ||||||
Tax positions taken during prior period | 2.2 | |||||
Lapse of Statute of Limitations | (1.5 | ) | ||||
Balance at December 31, 2016 | $ | 3.7 |
$ in millions | Pension | |||||||
Years ended December 31, | ||||||||
2015 | 2014 | |||||||
Change in benefit obligation | ||||||||
Benefit obligation at January 1 | $ | 443.8 | $ | 370.5 | ||||
Service cost | 7.1 | 5.9 | ||||||
Interest cost | 17.3 | 17.5 | ||||||
Plan amendments | — | 6.8 | ||||||
Actuarial (gain) / loss | (34.5 | ) | 67.3 | |||||
Benefits paid | (22.9 | ) | (24.2 | ) | ||||
Benefit obligation at December 31 | 410.8 | 443.8 | ||||||
Change in plan assets | ||||||||
Fair value of plan assets at January 1 | 371.7 | 349.1 | ||||||
Actual return on plan assets | (8.8 | ) | 46.4 | |||||
Contributions to plan assets | 5.4 | 0.4 | ||||||
Benefits paid | (22.9 | ) | (24.2 | ) | ||||
Fair value of plan assets at December 31 | 345.4 | 371.7 | ||||||
Funded status of plan | $ | (65.4 | ) | $ | (72.1 | ) | ||
December 31, | ||||||||
Amounts recognized in the Balance sheets | 2015 | 2014 | ||||||
Current liabilities | $ | (0.4 | ) | $ | (0.4 | ) | ||
Non-current liabilities | (65.0 | ) | (71.7 | ) | ||||
Net liability at December 31, | $ | (65.4 | ) | $ | (72.1 | ) | ||
Amounts recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | ||||||||
Components: | ||||||||
Prior service cost | $ | 12.0 | $ | 14.1 | ||||
Net actuarial loss | 94.7 | 103.4 | ||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | 106.7 | $ | 117.5 | ||||
Recorded as: | ||||||||
Regulatory asset | $ | 91.1 | $ | 99.0 | ||||
Regulatory liability | — | — | ||||||
Accumulated other comprehensive income | 15.6 | 18.5 | ||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | 106.7 | $ | 117.5 |
$ in millions | Postretirement | Pension | ||||||||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||
2015 | 2014 | 2016 | 2015 | |||||||||||||
Change in benefit obligation | ||||||||||||||||
Benefit obligation at beginning of period | $ | 19.6 | $ | 19.7 | ||||||||||||
Benefit obligation at January 1 | $ | 410.8 | $ | 443.8 | ||||||||||||
Service cost | 0.2 | 0.2 | 5.7 | 7.1 | ||||||||||||
Interest cost | 0.6 | 0.8 | 14.7 | 17.3 | ||||||||||||
Plan curtailment | 2.5 | — | ||||||||||||||
Actuarial (gain) / loss | (1.1 | ) | 0.2 | 9.0 | (34.5 | ) | ||||||||||
Benefits paid | (1.5 | ) | (1.3 | ) | (23.1 | ) | (22.9 | ) | ||||||||
Benefit obligation at end of period | 17.8 | 19.6 | ||||||||||||||
Benefit obligation at December 31 | 419.6 | 410.8 | ||||||||||||||
Change in plan assets | ||||||||||||||||
Fair value of plan assets at beginning of period | 3.3 | 3.7 | ||||||||||||||
Contributions to plan assets | 1.0 | 0.9 | ||||||||||||||
Fair value of plan assets at January 1 | 345.4 | 371.7 | ||||||||||||||
Actual return on plan assets | 13.3 | (8.8 | ) | |||||||||||||
Employer contributions | 5.4 | 5.4 | ||||||||||||||
Benefits paid | (1.5 | ) | (1.3 | ) | (23.1 | ) | (22.9 | ) | ||||||||
Fair value of plan assets at end of period | 2.8 | 3.3 | ||||||||||||||
Fair value of plan assets at December 31 | 341.0 | 345.4 | ||||||||||||||
Funded status of plan | $ | (15.0 | ) | $ | (16.3 | ) | ||||||||||
Unfunded status of plan | $ | (78.6 | ) | $ | (65.4 | ) | ||||||||||
December 31, | ||||||||||||||||
2015 | 2014 | December 31, | ||||||||||||||
Amounts recognized in the Balance sheets | 2016 | 2015 | ||||||||||||||
Current liabilities | $ | (0.4 | ) | $ | (0.5 | ) | $ | (0.4 | ) | $ | (0.4 | ) | ||||
Non-current liabilities | (14.6 | ) | (15.8 | ) | (78.2 | ) | (65.0 | ) | ||||||||
Net liability at December 31, | $ | (15.0 | ) | $ | (16.3 | ) | $ | (78.6 | ) | $ | (65.4 | ) | ||||
Amounts recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | ||||||||||||||||
Components: | ||||||||||||||||
Prior service cost | $ | 0.3 | $ | 0.4 | $ | 8.8 | $ | 12.0 | ||||||||
Net actuarial gain | (5.5 | ) | (5.0 | ) | ||||||||||||
Net actuarial loss | 108.9 | 94.7 | ||||||||||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | (5.2 | ) | $ | (4.6 | ) | $ | 117.7 | $ | 106.7 | ||||||
Recorded as: | ||||||||||||||||
Regulatory asset | $ | 0.3 | $ | 0.4 | $ | 97.1 | $ | 91.1 | ||||||||
Regulatory liability | (5.1 | ) | (4.8 | ) | ||||||||||||
Accumulated other comprehensive income | (0.4 | ) | (0.2 | ) | 20.6 | 15.6 | ||||||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | (5.2 | ) | $ | (4.6 | ) | $ | 117.7 | $ | 106.7 |
Net Periodic Benefit Cost - Pension | ||||||||||||
Years ended December 31, | ||||||||||||
$ in millions | 2015 | 2014 | 2013 | |||||||||
Service cost | $ | 7.1 | $ | 5.9 | $ | 7.2 | ||||||
Interest cost | 17.3 | 17.5 | 15.6 | |||||||||
Expected return on assets (a) | (22.6 | ) | (22.9 | ) | (23.3 | ) | ||||||
Amortization of unrecognized: | ||||||||||||
Actuarial gain | 5.8 | 3.4 | 4.9 | |||||||||
Prior service cost | 2.0 | 1.5 | 1.5 | |||||||||
Net periodic benefit cost | $ | 9.6 | $ | 5.4 | $ | 5.9 |
Net Periodic Benefit Cost - Postretirement | ||||||||||||||||||||||||
Net Periodic Benefit Cost | ||||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 5.7 | $ | 7.1 | $ | 5.9 | ||||||||||||
Interest cost | 0.6 | 0.8 | 0.8 | 14.7 | 17.3 | 17.5 | ||||||||||||||||||
Expected return on assets | (0.1 | ) | (0.2 | ) | (0.1 | ) | (22.8 | ) | (22.6 | ) | (22.9 | ) | ||||||||||||
Plan curtailment | 3.8 | — | — | |||||||||||||||||||||
Amortization of unrecognized: | ||||||||||||||||||||||||
Actuarial loss | (0.6 | ) | (0.6 | ) | (0.5 | ) | 4.3 | 5.8 | 3.4 | |||||||||||||||
Prior service cost | 0.1 | — | — | 1.8 | 2.0 | 1.5 | ||||||||||||||||||
Net periodic benefit cost | $ | 0.2 | $ | 0.2 | $ | 0.4 | $ | 7.5 | $ | 9.6 | $ | 5.4 | ||||||||||||
Rates relevant to each year's expense calculations | ||||||||||||||||||||||||
Discount rate | 4.49 | % | 4.02 | % | 4.86 | % | ||||||||||||||||||
Expected return on plan assets | 6.50 | % | 6.50 | % | 6.75 | % |
Pension | ||||||||||||
Years ended December 31, | ||||||||||||
$ in millions | 2015 | 2014 | 2013 | |||||||||
Net actuarial loss / (gain) | $ | (3.0 | ) | $ | 43.8 | $ | (12.0 | ) | ||||
Prior service cost | — | 6.8 | — | |||||||||
Reversal of amortization item: | ||||||||||||
Net actuarial loss | (5.8 | ) | (3.4 | ) | (4.9 | ) | ||||||
Prior service cost | (2.0 | ) | (1.5 | ) | (1.5 | ) | ||||||
Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | (10.8 | ) | $ | 45.7 | $ | (18.4 | ) | ||||
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | (1.2 | ) | $ | 51.1 | $ | (12.5 | ) |
Postretirement | ||||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||
Net actuarial loss / (gain) | $ | (1.1 | ) | $ | 0.4 | $ | (2.0 | ) | $ | 20.9 | $ | (3.0 | ) | $ | 43.8 | |||||||||
Prior service cost | — | — | 6.8 | |||||||||||||||||||||
Plan curtailment | (3.8 | ) | — | — | ||||||||||||||||||||
Reversal of amortization item: | ||||||||||||||||||||||||
Net actuarial gain | 0.6 | 0.6 | 0.5 | |||||||||||||||||||||
Net actuarial loss | (4.3 | ) | (5.8 | ) | (3.4 | ) | ||||||||||||||||||
Prior service cost | $ | (0.1 | ) | $ | — | $ | — | (1.8 | ) | (2.0 | ) | (1.5 | ) | |||||||||||
Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | (0.6 | ) | $ | 1.0 | $ | (1.5 | ) | $ | 11.0 | $ | (10.8 | ) | $ | 45.7 | |||||||||
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | (0.4 | ) | $ | 1.2 | $ | (1.1 | ) | $ | 18.5 | $ | (1.2 | ) | $ | 51.1 |
$ in millions | Pension | Postretirement | Pension | |||||||||
Actuarial gain / (loss) | $ | 4.3 | $ | (0.6 | ) | |||||||
Actuarial loss | $ | 5.8 | ||||||||||
Prior service cost | $ | 1.9 | $ | 0.1 | $ | 1.4 |
Benefit Obligation Assumptions | Pension | Postretirement | ||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||
Discount rate for obligations | 4.49% | 4.02% | 4.86% | 4.10% | 3.71% | 4.58% | ||||||
Rate of compensation increases | 3.94% | 3.94% | 3.94% | N/A | N/A | N/A |
Net Periodic Benefit Cost / (Income) Assumptions | Pension | Postretirement | ||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||
Discount rate | 4.02% | 4.86% | 4.04% | 3.81% | 4.51% | 4.58% | ||||||
Expected rate of return on plan assets | 6.50% | 6.75% | 6.75% | 4.50% | 6.00% | 6.00% | ||||||
Rate of compensation increases | 3.94% | 3.94% | 3.94% | N/A | N/A | N/A |
Health Care Cost Assumptions | Expense | Benefit Obligation | ||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||
Pre - age 65 | ||||||||||||
Current health care cost trend rate | 6.97% | 7.75% | 8.00% | 6.85% | 6.97% | 7.75% | ||||||
Year trend reaches ultimate | 2029 | 2023 | 2019 | 2036 | 2029 | 2023 | ||||||
Post - age 65 | ||||||||||||
Current health care cost trend rate | 6.97% | 6.75% | 7.50% | 6.85% | 6.97% | 6.75% | ||||||
Year trend reaches ultimate | 2029 | 2021 | 2018 | 2036 | 2029 | 2021 | ||||||
Ultimate health care cost trend rate | 4.50% | 5.00% | 5.00% | 4.50% | 4.50% | 5.00% |
Effect of change in health care cost trend rate | ||||||||
$ in millions | One-percent increase | One-percent decrease | ||||||
Service cost plus interest cost | $ | 0.1 | $ | — | ||||
Benefit obligation | $ | 0.8 | $ | (0.7 | ) |
Benefit Obligation Assumptions | Pension | |||||
2016 | 2015 | 2014 | ||||
Discount rate for obligations | 4.28% | 4.49% | 4.02% | |||
Rate of compensation increases | 3.94% | 3.94% | 3.94% |
Percentage of plan assets as of December 31, | Long-Term Mid-Point Target Allocation | Percentage of plan assets as of December 31, | ||||||||||
Asset category | Long-Term Mid-Point Target Allocation | 2015 | 2014 | 2016 | 2015 | |||||||
Equity Securities | 28% | 17% | 18% | 38% | 37% | 17% | ||||||
Debt Securities | 72% | 67% | 69% | 56% | 53% | 67% | ||||||
Real Estate | —% | 9% | 7% | �� | 6% | 10% | 9% | |||||
Other | —% | 7% | 6% | —% | —% | 7% |
Fair Value Measurements for Pension Plan Assets at December 31, 2015 | ||||||||||||||||
Asset Category $ in millions | Market Value at December 31, 2015 | Quoted prices in active markets for identical assets | Significant observable inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Equity securities (a) | ||||||||||||||||
Small/Mid cap equity | $ | 9.2 | $ | 9.2 | $ | — | $ | — | ||||||||
Large cap equity | 20.2 | 20.2 | — | — | ||||||||||||
International equity | 18.2 | 18.2 | — | — | ||||||||||||
Emerging markets equity | 2.7 | 2.7 | — | — | ||||||||||||
SIIT dynamic equity | 10.0 | 10.0 | — | — | ||||||||||||
Total equity securities | 60.3 | 60.3 | — | — | ||||||||||||
Debt securities (b) | ||||||||||||||||
Emerging markets debt | 6.3 | 6.3 | — | — | ||||||||||||
High yield bond | 6.3 | 6.3 | — | — | ||||||||||||
Long duration fund | 219.5 | 219.5 | — | — | ||||||||||||
Total debt securities | 232.1 | 232.1 | — | — | ||||||||||||
Other investments (c) | ||||||||||||||||
Core property collective fund | 30.2 | — | 30.2 | — | ||||||||||||
Common collective fund | 22.8 | — | 22.8 | — | ||||||||||||
Total other investments | 53.0 | — | 53.0 | — | ||||||||||||
Total pension plan assets | $ | 345.4 | $ | 292.4 | $ | 53.0 | $ | — |
Fair Value Measurements for Pension Plan Assets at December 31, 2016 | ||||||||||||||||
Asset Category $ in millions | Market Value at December 31, 2016 | Quoted prices in active markets for identical assets | Significant observable inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Mutual funds: | ||||||||||||||||
U.S. equities (a) | $ | 81.4 | $ | 81.4 | $ | — | $ | — | ||||||||
International equities (a) | 44.4 | 44.4 | — | — | ||||||||||||
Fixed income (b) | 151.1 | 151.1 | — | — | ||||||||||||
Fixed income securities: | ||||||||||||||||
U.S. Treasury securities | 31.0 | 31.0 | — | — | ||||||||||||
Other investments: | ||||||||||||||||
Core property collective fund (c) | 33.1 | — | 33.1 | — | ||||||||||||
Total pension plan assets | $ | 341.0 | $ | 307.9 | $ | 33.1 | $ | — |
(a) | This category includes investments in equity securities of large, small and medium sized U.S. companies and equity securities of foreign companies including those in developing countries. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. |
(b) | This category includes investments in investment-grade fixed-income instruments, U.S. dollar-denominated debt securities of emerging market issuers and high yield fixed-income securities that are rated below investment grade. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. |
(c) | This category represents a property fund that invests in commercial real |
Fair Value Measurements for Pension Plan Assets at December 31, 2014 | ||||||||||||||||
Asset Category $ in millions | Market Value at December 31, 2014 | Quoted prices in active markets for identical assets | Significant observable inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Equity securities (a) | ||||||||||||||||
Small/Mid cap equity | $ | 10.6 | $ | 10.6 | $ | — | $ | — | ||||||||
Large cap equity | 22.2 | 22.2 | — | — | ||||||||||||
International equity | 18.2 | 18.2 | — | — | ||||||||||||
Emerging markets equity | 2.8 | 2.8 | — | — | ||||||||||||
SIIT dynamic equity | 11.6 | 11.6 | — | — | ||||||||||||
Total equity securities | 65.4 | 65.4 | — | — | ||||||||||||
Debt securities (b) | ||||||||||||||||
Emerging markets debt | 6.0 | 6.0 | — | — | ||||||||||||
High yield bond | 6.5 | 6.5 | — | — | ||||||||||||
Long duration fund | 242.7 | 242.7 | — | — | ||||||||||||
Total debt securities | 255.2 | 255.2 | — | — | ||||||||||||
Cash and cash equivalents (c) | ||||||||||||||||
Cash | 1.6 | 1.6 | — | — | ||||||||||||
Other investments (d) | ||||||||||||||||
Core property collective fund | 26.3 | — | 26.3 | — | ||||||||||||
Common collective fund | 23.2 | — | 23.2 | — | ||||||||||||
Total other investments | 49.5 | — | 49.5 | — | ||||||||||||
Total pension plan assets | $ | 371.7 | $ | 322.2 | $ | 49.5 | $ | — |
Fair Value Measurements for Pension Plan Assets at December 31, 2015 | ||||||||||||||||
Asset Category $ in millions | Market Value at December 31, 2015 | Quoted prices in active markets for identical assets | Significant observable inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Mutual funds: | ||||||||||||||||
U.S. equities (a) | $ | 39.4 | $ | 39.4 | $ | — | $ | — | ||||||||
International equities (a) | 20.9 | 20.9 | — | — | ||||||||||||
Fixed income (b) | 232.1 | 232.1 | — | — | ||||||||||||
Other investments: (c) | ||||||||||||||||
Core property collective fund | 30.2 | — | 30.2 | — | ||||||||||||
Common collective fund | 22.8 | — | 22.8 | — | ||||||||||||
Total pension plan assets | $ | 345.4 | $ | 292.4 | $ | 53.0 | $ | — |
(a) | This category includes investments in equity securities of large, small and medium sized U.S. companies and equity securities of foreign companies including those in developing countries. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. |
(b) | This category includes investments in investment-grade fixed-income instruments, U.S. dollar-denominated debt securities of emerging market issuers and high yield fixed-income securities that are rated below investment grade. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. |
(c) |
This category represents a property fund that invests in commercial real estate and a hedge fund of funds made up of 30+ different hedge fund managers diversified over eight different hedge strategies. The fair value of the hedge fund is valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. |
Fair Value Measurements for Other Postemployment Benefit Plan Assets at December 31, 2015 | ||||||||||||||||
Asset Category $ in millions | Market Value at December 31, 2015 | Quoted prices in active markets for identical assets | Significant observable inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
JP Morgan Core Bond Fund (a) | $ | 2.8 | $ | 2.8 | $ | — | $ | — |
Fair Value Measurements for Other Postemployment Benefit Plan Assets at December 31, 2014 | ||||||||||||||||
Asset Category $ in millions | Market Value at December 31, 2014 | Quoted prices in active markets for identical assets | Significant observable inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
JP Morgan Core Bond Fund (a) | $ | 3.3 | $ | 3.3 | $ | — | $ | — |
Estimated future benefit payments and Medicare Part D reimbursements | ||||||||||||
Estimated future benefit payments | ||||||||||||
$ in millions due within the following years: | Pension | Postretirement | Pension | |||||||||
2016 | $ | 24.6 | $ | 1.7 | ||||||||
2017 | $ | 25.2 | $ | 1.6 | $ | 25.0 | ||||||
2018 | $ | 25.8 | $ | 1.5 | $ | 25.5 | ||||||
2019 | $ | 26.3 | $ | 1.4 | $ | 26.0 | ||||||
2020 | $ | 26.7 | $ | 1.4 | $ | 26.4 | ||||||
2021 - 2025 | $ | 134.8 | $ | 5.7 | ||||||||
2021 | $ | 26.7 | ||||||||||
2022 - 2026 | $ | 139.6 |
December 31, 2015 and 2014 | Carrying Value (a) ($ in millions) | Carrying Value (b) ($ in millions) | ||||||||||||||||||||||||||||||||
Preferred Stock Rate | Redemption price ($ per share) | Shares Outstanding | December 31, 2015 | December 31, 2014 | Preferred Stock Rate | Redemption price ($ per share) | Shares Outstanding (a) | December 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||
DP&L Series A | 3.75% | $ | 102.50 | 93,280 | $ | 7.4 | $ | 7.4 | 3.75% | $ | 102.50 | 93,280 | $ | — | $ | 7.4 | ||||||||||||||||||
DP&L Series B | 3.75% | $ | 103.00 | 69,398 | 5.6 | 5.6 | 3.75% | $ | 103.00 | 69,398 | — | 5.6 | ||||||||||||||||||||||
DP&L Series C | 3.90% | $ | 101.00 | 65,830 | 5.4 | 5.4 | 3.90% | $ | 101.00 | 65,830 | — | 5.4 | ||||||||||||||||||||||
Total | 228,508 | $ | 18.4 | $ | 18.4 | 228,508 | $ | — | $ | 18.4 |
(a) | DP&L's preferred stock was redeemed in October 2016. See below for more information. |
(b) | Carrying value is fair value at the Merger date plus cumulative accrued dividends, of which there were none at December 31, |
Payments due in: | Payments due in: | ||||||||||||||||||||||||||||||||||
$ in millions | Total | Less than 1 year | 2 - 3 years | 4 - 5 years | More than 5 years | Total | Less than 1 year | 2 - 3 years | 4 - 5 years | More than 5 years | |||||||||||||||||||||||||
DPL: | |||||||||||||||||||||||||||||||||||
Coal contracts (a) | 374.2 | 186.9 | 187.3 | — | — | ||||||||||||||||||||||||||||||
Coal and limestone contracts (a) | $ | 284.3 | $ | 230.3 | $ | 54.0 | $ | — | $ | — | |||||||||||||||||||||||||
Purchase orders and other contractual obligations | 83.8 | 24.4 | 30.0 | 29.4 | — | $ | 109.8 | $ | 43.1 | $ | 33.6 | $ | 33.1 | $ | — |
(a) | Total at DP&L operated units. |
• | Rules and future rules issued by the USEPA and the Ohio EPA that require substantial reductions in SO2, particulates, mercury, acid gases, NOX, and other air emissions. DP&L has installed emission control technology and is taking other measures to comply with required and anticipated reductions, |
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||
$ in millions | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||
Transactions with the Service Company | ||||||||||||||||||||
Charges for services provided | $ | 36.0 | $ | 35.8 | $ | 42.8 | $ | 36.0 | $ | 35.8 | ||||||||||
Charges to the Service Company | $ | 6.2 | $ | 2.4 | $ | 4.6 | $ | 6.2 | $ | 2.4 | ||||||||||
Transactions with other AES affiliates: | ||||||||||||||||||||
Payments for health, welfare and benefit plans | $ | 9.6 | $ | 15.5 | $ | 17.8 | ||||||||||||||
Transactions with the Service Company: | At December 31, 2015 | At December 31, 2014 | ||||||||||||||||||
Balances with related parties: | At December 31, 2016 | At December 31, 2015 | ||||||||||||||||||
Net payable to the Service Company | $ | (0.5 | ) | $ | (4.7 | ) | $ | (2.0 | ) | $ | (0.5 | ) | ||||||||
Net prepayment with / (payable) to other AES affiliates | $ | (2.5 | ) | $ | 0.1 |
$ in millions | Utility | Other | Adjustments and Eliminations | DPL Consolidated | ||||||||||||
Year ended December 31, 2015 | ||||||||||||||||
Revenues from external customers | $ | 1,550.8 | $ | 62.0 | $ | — | $ | 1,612.8 | ||||||||
Intersegment revenues | 1.5 | 4.2 | (5.7 | ) | — | |||||||||||
Total revenues | 1,552.3 | 66.2 | (5.7 | ) | 1,612.8 | |||||||||||
Fuel | 244.7 | 15.1 | — | 259.8 | ||||||||||||
Purchased power | 555.7 | 8.9 | (2.0 | ) | 562.6 | |||||||||||
Gross margin (a) | $ | 751.9 | $ | 42.2 | $ | (3.7 | ) | $ | 790.4 | |||||||
Depreciation and amortization | $ | 138.2 | $ | (3.6 | ) | $ | — | $ | 134.6 | |||||||
Goodwill impairment (Note 7) | $ | — | $ | 317.0 | $ | — | $ | 317.0 | ||||||||
Fixed asset impairment | $ | — | $ | — | $ | — | $ | — | ||||||||
Interest expense | $ | 30.9 | $ | 87.6 | $ | (0.2 | ) | $ | 118.3 | |||||||
Income tax expense / (benefit) | $ | 35.1 | $ | (15.1 | ) | $ | — | $ | 20.0 | |||||||
Net income / (loss) from continuing operations | $ | 106.4 | $ | (357.8 | ) | $ | — | $ | (251.4 | ) | ||||||
Discontinued operations, net of tax | $ | — | $ | 12.4 | $ | — | $ | 12.4 | ||||||||
Net income / (loss) | $ | 106.4 | $ | (345.4 | ) | $ | — | $ | (239.0 | ) | ||||||
Cash capital expenditures | $ | 127.0 | $ | 10.2 | $ | — | $ | 137.2 | ||||||||
Total assets (end of year) (b) | $ | 3,365.8 | $ | 1,314.4 | $ | (1,339.4 | ) | $ | 3,340.8 |
$ in millions | T&D | Generation | Other | Adjustments and Eliminations | DPL Consolidated | |||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||
Revenues from external customers | $ | 806.7 | $ | 611.5 | $ | 9.1 | $ | — | $ | 1,427.3 | ||||||||||
Intersegment revenues | 1.3 | — | 5.7 | (7.0 | ) | — | ||||||||||||||
Total revenues | $ | 808.0 | $ | 611.5 | $ | 14.8 | $ | (7.0 | ) | $ | 1,427.3 | |||||||||
Depreciation and amortization | $ | 71.0 | $ | 55.4 | $ | 5.9 | $ | — | $ | 132.3 | ||||||||||
Fixed-asset impairment (Note 15) | $ | — | $ | 1,353.5 | $ | (494.5 | ) | $ | — | $ | 859.0 | |||||||||
Interest expense | $ | 24.7 | $ | 0.4 | $ | 81.3 | $ | (0.3 | ) | $ | 106.1 | |||||||||
Income / (loss) from continuing operations before income tax | $ | 143.0 | $ | (1,353.9 | ) | $ | 417.6 | $ | — | $ | (793.3 | ) | ||||||||
Cash capital expenditures | $ | 83.4 | $ | 64.2 | $ | 0.9 | $ | — | $ | 148.5 | ||||||||||
Total assets (end of year) | $ | 1,710.5 | $ | 472.3 | $ | 673.6 | $ | (437.2 | ) | $ | 2,419.2 |
$ in millions | T&D | Generation | Other | Adjustments and Eliminations | DPL Consolidated | |||||||||||||||
Year ended December 31, 2015 | ||||||||||||||||||||
Revenues from external customers (b) | $ | 855.5 | $ | 770.3 | $ | 6.7 | $ | (19.7 | ) | $ | 1,612.8 | |||||||||
Intersegment revenues | 1.5 | 186.6 | 4.2 | (192.3 | ) | — | ||||||||||||||
Total revenues | $ | 857.0 | $ | 956.9 | $ | 10.9 | $ | (212.0 | ) | $ | 1,612.8 | |||||||||
Depreciation and amortization | $ | 71.5 | $ | 72.6 | $ | (9.5 | ) | $ | — | $ | 134.6 | |||||||||
Goodwill impairment (Note 7) | $ | — | $ | — | $ | 317.0 | $ | — | $ | 317.0 | ||||||||||
Interest expense | $ | 28.9 | $ | 2.9 | $ | 86.8 | $ | (0.3 | ) | $ | 118.3 | |||||||||
Income / (loss) from continuing operations before income tax | $ | 188.1 | $ | (28.7 | ) | $ | (390.8 | ) | $ | — | $ | (231.4 | ) | |||||||
Cash capital expenditures | $ | 98.3 | $ | 35.2 | $ | 3.7 | $ | — | $ | 137.2 | ||||||||||
Total assets (end of year) (a) | $ | 1,688.8 | $ | 1,805.0 | $ | 1,170.3 | $ | (1,339.4 | ) | $ | 3,324.7 |
(a) |
Includes assets held for sale related to the sale of DPLER. |
(b) | Wholesale revenue for the T&D segment in 2015 includes OVEC revenue of $19.7 million that was previously netted in purchased power. The impact of this netting adjustment is included in the Adjustments and Eliminations column in the table above but has no impact on consolidated revenues or Income / (loss) from continuing operations before income tax. |
$ in millions | Utility | Competitive Retail | Other | Adjustments and Eliminations | DPL Consolidated | |||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||
Revenues from external customers | $ | 1,181.2 | $ | 533.6 | $ | 48.2 | $ | — | $ | 1,763.0 | ||||||||||
Intersegment revenues | 487.1 | — | 5.5 | (492.6 | ) | — | ||||||||||||||
Total revenues | 1,668.3 | 533.6 | 53.7 | (492.6 | ) | 1,763.0 | ||||||||||||||
Fuel | 314.9 | — | (10.4 | ) | — | 304.5 | ||||||||||||||
Purchased power | 582.4 | 491.8 | 7.5 | (489.1 | ) | 592.6 | ||||||||||||||
Amortization of intangibles | — | — | 1.2 | — | 1.2 | |||||||||||||||
Gross margin (a) | $ | 771.0 | $ | 41.8 | $ | 55.4 | $ | (3.5 | ) | $ | 864.7 | |||||||||
Depreciation and amortization | $ | 144.8 | $ | 0.8 | $ | (5.8 | ) | $ | — | $ | 139.8 | |||||||||
Goodwill impairment (Note 7) | $ | — | $ | — | $ | 135.8 | $ | — | $ | 135.8 | ||||||||||
Fixed asset impairment | $ | — | $ | — | $ | 11.5 | $ | — | $ | 11.5 | ||||||||||
Interest expense | $ | 33.9 | $ | 0.5 | $ | 92.9 | $ | (0.7 | ) | $ | 126.6 | |||||||||
Income tax expense / (benefit) | $ | 39.7 | $ | 2.0 | $ | (23.5 | ) | $ | — | $ | 18.2 | |||||||||
Net income / (loss) | $ | 115.0 | $ | 3.2 | $ | (192.8 | ) | $ | — | $ | (74.6 | ) | ||||||||
Cash capital expenditures | $ | 114.2 | $ | 2.5 | $ | 1.4 | $ | — | $ | 118.1 | ||||||||||
Total assets (end of year) | $ | 3,338.7 | $ | 94.9 | $ | 1,440.1 | $ | (1,295.9 | ) | $ | 3,577.8 |
$ in millions | T&D | Generation | Other | Adjustments and Eliminations | DPL Consolidated | |||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||
Revenues from external customers (b) | $ | 1,020.1 | $ | 721.8 | $ | 7.1 | $ | (32.5 | ) | $ | 1,716.5 | |||||||||
Intersegment revenues | 1.7 | 72.8 | 3.8 | (78.3 | ) | — | ||||||||||||||
Total revenues | $ | 1,021.8 | $ | 794.6 | $ | 10.9 | $ | (110.8 | ) | $ | 1,716.5 | |||||||||
Depreciation and amortization | $ | 75.5 | $ | 75.3 | $ | (15.2 | ) | $ | — | $ | 135.6 | |||||||||
Fixed asset impairment (Note 15) | $ | — | $ | — | $ | 11.5 | $ | — | $ | 11.5 | ||||||||||
Interest expense | $ | 29.8 | $ | 5.0 | $ | 92.5 | $ | (0.7 | ) | $ | 126.6 | |||||||||
Income / (loss) from continuing operations before income tax | $ | 241.7 | $ | (78.0 | ) | $ | (91.1 | ) | $ | — | $ | 72.6 | ||||||||
Cash capital expenditures | $ | 100.4 | $ | 14.5 | $ | 3.2 | $ | — | $ | 118.1 | ||||||||||
Total assets (end of year) (a) | $ | 1,686.1 | $ | 1,771.4 | $ | 1,397.5 | $ | (1,295.9 | ) | $ | 3,559.1 |
(a) |
$ in millions | Utility | Competitive Retail | Other | Adjustments and Eliminations | DPL Consolidated | |||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Revenues from external customers | $ | 1,098.2 | $ | 511.6 | $ | 27.1 | $ | — | $ | 1,636.9 | ||||||||||
Intersegment revenues | 453.3 | — | 4.0 | (457.3 | ) | — | ||||||||||||||
Total revenues | 1,551.5 | 511.6 | 31.1 | (457.3 | ) | 1,636.9 | ||||||||||||||
Fuel | 362.5 | — | 4.2 | — | 366.7 | |||||||||||||||
Purchased power | 381.9 | 459.7 | 1.1 | (453.7 | ) | 389.0 | ||||||||||||||
Amortization of intangibles | — | — | 7.1 | — | 7.1 | |||||||||||||||
Gross margin (a) | $ | 807.1 | $ | 51.9 | $ | 18.7 | $ | (3.6 | ) | $ | 874.1 | |||||||||
Depreciation and amortization | $ | 140.2 | $ | 0.6 | $ | (7.9 | ) | $ | — | $ | 132.9 | |||||||||
Goodwill impairment (Note 7) | $ | — | $ | — | $ | 306.3 | $ | — | $ | 306.3 | ||||||||||
Fixed asset impairment | $ | 86.0 | $ | — | $ | (59.8 | ) | $ | — | $ | 26.2 | |||||||||
Interest expense | $ | 37.2 | $ | 0.5 | $ | 86.9 | $ | (0.6 | ) | $ | 124.0 | |||||||||
Income tax expense / (benefit) | $ | 18.6 | $ | 4.2 | $ | (0.5 | ) | $ | — | $ | 22.3 | |||||||||
Net income / (loss) | $ | 83.6 | $ | 6.6 | $ | (312.2 | ) | $ | — | $ | (222.0 | ) | ||||||||
$ | — | |||||||||||||||||||
Cash capital expenditures | $ | 122.1 | $ | — | $ | 2.3 | $ | — | $ | 124.4 | ||||||||||
Total assets (end of year) | $ | 3,313.1 | $ | 105.0 | $ | 1,675.8 | $ | (1,372.4 | ) | $ | 3,721.5 |
Years ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
East Bend (DP&L) | $ | — | $ | 11.5 | $ | — | ||||||
Conesville (DP&L) | — | — | 26.2 | |||||||||
Total fixed-asset impairment expense | $ | — | $ | 11.5 | $ | 26.2 |
Years ended December 31, | ||||||||||||||
Measurement Date | 2016 | 2015 | 2014 | |||||||||||
Killen | December 31, 2016 | $ | 75.4 | $ | — | $ | — | |||||||
Stuart | December 31, 2016 | 228.5 | — | — | ||||||||||
Miami Fort | December 31, 2016 | 149.4 | — | — | ||||||||||
Zimmer | December 31, 2016 | 144.7 | — | — | ||||||||||
Conesville | December 31, 2016 | 23.9 | — | — | ||||||||||
Hutchings peaking facilities | December 31, 2016 | 1.6 | — | — | ||||||||||
Killen | June 30, 2016 | 230.8 | — | — | ||||||||||
Certain peaking facilities | June 30, 2016 | 4.7 | — | — | ||||||||||
East Bend | March 31, 2014 | — | — | 11.5 | ||||||||||
Total impairment loss | $ | 859.0 | $ | — | $ | 11.5 |
$ in millions | December 31, | December 31, | ||||||||||||||||||||||
2015 | 2014 | 2015 | ||||||||||||||||||||||
Accounts receivable, net | $ | 31.0 | $ | 64.4 | $ | 31.0 | ||||||||||||||||||
Property, plant & equipment, net | 4.6 | 4.9 | 1.1 | |||||||||||||||||||||
Intangible assets, net | 24.6 | 29.6 | 28.1 | |||||||||||||||||||||
Other assets | 2.0 | 2.9 | 2.0 | |||||||||||||||||||||
Total assets of the disposal group classified as held for sale in the balance sheets | $ | 62.2 | $ | 101.8 | $ | 62.2 | ||||||||||||||||||
Accounts payable | $ | 0.8 | $ | 14.8 | $ | 0.8 | ||||||||||||||||||
Other liabilities | 0.8 | 2.5 | 0.8 | |||||||||||||||||||||
Total liabilities of the disposal group classified as held for sale in the balance sheets | $ | 1.6 | $ | 17.3 | $ | 1.6 | ||||||||||||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2016 | 2015 | 2014 | |||||||||||||||||||
Revenues | $ | 340.9 | $ | 533.6 | $ | 511.6 | $ | — | $ | 340.9 | $ | 533.6 | ||||||||||||
Cost of revenues | (307.0 | ) | (493.0 | ) | (466.8 | ) | — | (307.0 | ) | (493.0 | ) | |||||||||||||
Operating expenses | (22.5 | ) | (34.0 | ) | (38.8 | ) | (0.7 | ) | (22.5 | ) | (34.0 | ) | ||||||||||||
Goodwill impairment | — | (135.8 | ) | — | — | — | (135.8 | ) | ||||||||||||||||
Profit / (loss) of discontinued operations before income taxes | 11.4 | (129.2 | ) | 6.0 | (0.7 | ) | 11.4 | (129.2 | ) | |||||||||||||||
Income tax benefit / (expense) | (1.0 | ) | 2.6 | 2.4 | ||||||||||||||||||||
Gain from disposal of discontinued operations | 49.2 | — | — | |||||||||||||||||||||
Income tax expense / (benefit) | 19.2 | (1.0 | ) | 2.6 | ||||||||||||||||||||
Income / (loss) on discontinued operations | $ | 12.4 | $ | (131.8 | ) | $ | 3.6 | $ | 29.3 | $ | 12.4 | $ | (131.8 | ) |
THE DAYTON POWER AND LIGHT COMPANY | ||||||||||||
STATEMENTS OF OPERATIONS | ||||||||||||
Years ended December 31, | ||||||||||||
$ in millions | 2015 | 2014 | 2013 | |||||||||
Revenues | $ | 1,552.3 | $ | 1,668.3 | $ | 1,551.5 | ||||||
Cost of revenues: | ||||||||||||
Fuel | 244.7 | 314.9 | 362.5 | |||||||||
Purchased power | 555.7 | 582.4 | 381.9 | |||||||||
Total cost of revenues | 800.4 | 897.3 | 744.4 | |||||||||
Gross margin | 751.9 | 771.0 | 807.1 | |||||||||
Operating expenses: | ||||||||||||
Operation and maintenance | 350.5 | 355.2 | 364.2 | |||||||||
Depreciation and amortization | 138.2 | 144.8 | 140.2 | |||||||||
General taxes | 85.0 | 85.7 | 74.3 | |||||||||
Fixed asset impairment | — | — | 86.0 | |||||||||
Other | 0.4 | (3.5 | ) | 2.5 | ||||||||
Total operating expenses | 574.1 | 582.2 | 667.2 | |||||||||
Operating income | 177.8 | 188.8 | 139.9 | |||||||||
Other income / (expense), net | ||||||||||||
Investment income | 0.3 | 0.9 | 2.0 | |||||||||
Interest expense | (30.9 | ) | (33.9 | ) | (37.2 | ) | ||||||
Charge for early redemption of debt | (5.0 | ) | — | — | ||||||||
Other deductions | (0.7 | ) | (1.1 | ) | (2.5 | ) | ||||||
Other expense, net | (36.3 | ) | (34.1 | ) | (37.7 | ) | ||||||
Earnings from operations before income tax | 141.5 | 154.7 | 102.2 | |||||||||
Income tax expense | 35.1 | 39.7 | 18.6 | |||||||||
Net income | 106.4 | 115.0 | 83.6 | |||||||||
Dividends on preferred stock | 0.9 | 0.9 | 0.9 | |||||||||
Earnings attributable to common stock | $ | 105.5 | $ | 114.1 | $ | 82.7 |
THE DAYTON POWER AND LIGHT COMPANY | ||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||
Years ended December 31, | ||||||||||||
$ in millions | 2015 | 2014 | 2013 | |||||||||
Net income | $ | 106.4 | $ | 115.0 | $ | 83.6 | ||||||
Available-for-sale securities activity: | ||||||||||||
Change in fair value of available-for-sale securities, net of income tax benefit / (expense) of $0.1, $0.2 and $0.9 for each respective period | (0.2 | ) | (0.3 | ) | (1.6 | ) | ||||||
Reclassification to earnings, net of income tax benefit / (expense) of $0.0, ($0.2) and ($0.7) for each respective period | — | 0.2 | 1.4 | |||||||||
Total change in fair value of available-for-sale securities | (0.2 | ) | (0.1 | ) | (0.2 | ) | ||||||
Derivative activity: | ||||||||||||
Change in derivative fair value, net of income tax benefit / (expense) of ($10.3), $10.5 and ($0.6) for each respective period | 18.2 | (18.8 | ) | 1.0 | ||||||||
Reclassification of earnings, net of income tax benefit / (expense) of $5.6, ($11.5) and ($2.5) for each respective period | (9.8 | ) | 15.4 | 2.6 | ||||||||
Total change in fair value of derivatives | 8.4 | (3.4 | ) | 3.6 | ||||||||
Pension and postretirement activity: | ||||||||||||
Prior service cost for the period, net of income tax benefit / (expense) of $0.0, $1.3 and ($0.2) for each respective period | — | (2.3 | ) | 0.5 | ||||||||
Net loss for the period, net of income tax benefit / (expense) of ($1.0), $7.2 and ($1.9) for each respective period | 1.7 | (12.5 | ) | 4.3 | ||||||||
Reclassification to earnings, net of income tax benefit / (expense) of ($1.9), ($1.5) and ($1.9) for each respective period | 3.7 | 2.7 | 3.8 | |||||||||
Total change in unfunded pension and postretirement obligation | 5.4 | (12.1 | ) | 8.6 | ||||||||
Other comprehensive income / (loss) | 13.6 | (15.6 | ) | 12.0 | ||||||||
Net comprehensive income | $ | 120.0 | $ | 99.4 | $ | 95.6 |
THE DAYTON POWER AND LIGHT COMPANY | ||||||||||||
STATEMENTS OF OPERATIONS | ||||||||||||
Years ended December 31, | ||||||||||||
$ in millions | 2016 | 2015 | 2014 | |||||||||
Revenues | $ | 1,365.9 | $ | 1,552.3 | $ | 1,668.3 | ||||||
Cost of revenues: | ||||||||||||
Fuel | 248.9 | 244.7 | 314.9 | |||||||||
Purchased power | 414.1 | 555.7 | 582.4 | |||||||||
Total cost of revenues | 663.0 | 800.4 | 897.3 | |||||||||
Gross margin | 702.9 | 751.9 | 771.0 | |||||||||
Operating expenses: | ||||||||||||
Operation and maintenance | 343.2 | 350.5 | 355.2 | |||||||||
Depreciation and amortization | 120.3 | 138.2 | 144.8 | |||||||||
General taxes | 83.8 | 85.0 | 85.7 | |||||||||
Gain on termination of contract | (27.7 | ) | — | — | ||||||||
Fixed-asset impairment | 1,353.5 | — | — | |||||||||
Other | (0.1 | ) | 0.4 | (3.5 | ) | |||||||
Total operating expenses | 1,873.0 | 574.1 | 582.2 | |||||||||
Operating income / (loss) | (1,170.1 | ) | 177.8 | 188.8 | ||||||||
Other income / (expense), net | ||||||||||||
Investment income | 0.4 | 0.3 | 0.9 | |||||||||
Interest expense | (24.5 | ) | (30.9 | ) | (33.9 | ) | ||||||
Charge for early redemption of debt | (0.5 | ) | (5.0 | ) | — | |||||||
Other deductions | (0.4 | ) | (0.7 | ) | (1.1 | ) | ||||||
Other expense, net | (25.0 | ) | (36.3 | ) | (34.1 | ) | ||||||
Income / (loss) from operations before income tax | (1,195.1 | ) | 141.5 | 154.7 | ||||||||
Income tax expense / (benefit) | (422.4 | ) | 35.1 | 39.7 | ||||||||
Net income / (loss) | (772.7 | ) | 106.4 | 115.0 | ||||||||
Dividends on preferred stock | 0.7 | 0.9 | 0.9 | |||||||||
Income / (loss) attributable to common stock | $ | (773.4 | ) | $ | 105.5 | $ | 114.1 |
THE DAYTON POWER AND LIGHT COMPANY | ||||||||
BALANCE SHEETS | ||||||||
$ in millions | December 31, 2015 | December 31, 2014 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 5.4 | $ | 5.4 | ||||
Restricted cash | 44.8 | 16.7 | ||||||
Accounts receivable, net (Note 2) | 119.5 | 152.7 | ||||||
Inventories (Note 2) | 108.0 | 99.0 | ||||||
Taxes applicable to subsequent years | 79.2 | 75.4 | ||||||
Regulatory assets, current (Note 3) | 14.4 | 44.2 | ||||||
Other prepayments and current assets | 48.1 | 41.1 | ||||||
Total current assets | 419.4 | 434.5 | ||||||
Property, plant and equipment: | ||||||||
Property, plant and equipment | 5,244.7 | 5,120.7 | ||||||
Less: Accumulated depreciation and amortization | (2,584.0 | ) | (2,495.7 | ) | ||||
2,660.7 | 2,625.0 | |||||||
Construction work in process | 78.0 | 75.4 | ||||||
Total net property, plant and equipment | 2,738.7 | 2,700.4 | ||||||
Other non-current assets: | ||||||||
Regulatory assets, non-current (Note 3) | 179.9 | 167.5 | ||||||
Intangible assets, net of amortization (Note 1) | 5.0 | 7.8 | ||||||
Other deferred assets | 22.8 | 28.5 | ||||||
Total other non-current assets | 207.7 | 203.8 | ||||||
Total Assets | $ | 3,365.8 | $ | 3,338.7 | ||||
LIABILITIES AND SHAREHOLDER'S EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion - long-term debt (Note 7) | $ | 444.9 | $ | 0.1 | ||||
Short-term debt | 35.0 | — | ||||||
Accounts payable | 94.1 | 104.8 | ||||||
Accrued taxes | 86.2 | 82.6 | ||||||
Accrued interest | 4.1 | 9.8 | ||||||
Customer security deposits | 15.1 | 34.5 | ||||||
Regulatory liabilities, current (Note 3) | 24.4 | 4.4 | ||||||
Other current liabilities | 51.0 | 44.8 | ||||||
Advance on contract termination | 27.7 | — | ||||||
Total current liabilities | 782.5 | 281.0 | ||||||
Non-current liabilities: | ||||||||
Long-term debt (Note 7) | 318.0 | 877.0 | ||||||
Deferred taxes (Note 8) | 631.2 | 650.0 | ||||||
Taxes payable | 82.1 | 78.4 | ||||||
Regulatory liabilities, non-current (Note 3) | 127.0 | 124.1 | ||||||
Pension, retiree and other benefits (Note 9) | 87.1 | 95.9 | ||||||
Unamortized investment tax credit | 20.0 | 22.4 | ||||||
Other deferred credits | 82.3 | 43.6 | ||||||
Total non-current liabilities | 1,347.7 | 1,891.4 | ||||||
Redeemable preferred stock of subsidiary (Note 10) | 22.9 | 22.9 | ||||||
Commitments and contingencies (Note 11) | ||||||||
Common shareholder's equity: | ||||||||
Common stock, par value of $0.01 per share | 0.4 | 0.4 | ||||||
250,000,000 shares authorized, 41,172,173 shares issued and outstanding | ||||||||
Other paid-in capital | 803.7 | 803.5 | ||||||
Accumulated other comprehensive loss | (28.7 | ) | (42.3 | ) | ||||
Retained earnings | 437.3 | 381.8 | ||||||
Total common shareholder's equity | 1,212.7 | 1,143.4 | ||||||
Total Liabilities and Shareholder's Equity | $ | 3,365.8 | $ | 3,338.7 |
THE DAYTON POWER AND LIGHT COMPANY | ||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) | ||||||||||||
Years ended December 31, | ||||||||||||
$ in millions | 2016 | 2015 | 2014 | |||||||||
Net income / (loss) | $ | (772.7 | ) | $ | 106.4 | $ | 115.0 | |||||
Available-for-sale securities activity: | ||||||||||||
Change in fair value of available-for-sale securities, net of income tax benefit / (expense) of ($0.1), $0.1 and $0.2 for each respective period | 0.2 | (0.2 | ) | (0.3 | ) | |||||||
Reclassification to earnings, net of income tax benefit / (expense) of $0.0, $0.0 and ($0.2) for each respective period | — | — | 0.2 | |||||||||
Total change in fair value of available-for-sale securities | 0.2 | (0.2 | ) | (0.1 | ) | |||||||
Derivative activity: | ||||||||||||
Change in derivative fair value, net of income tax benefit / (expense) of ($8.7), ($10.3) and $10.5 for each respective period | 16.1 | 18.2 | (18.8 | ) | ||||||||
Reclassification to earnings, net of income tax benefit / (expense) of $16.4, $5.6 and ($11.5) for each respective period | (30.0 | ) | (9.8 | ) | 15.4 | |||||||
Total change in fair value of derivatives | (13.9 | ) | 8.4 | (3.4 | ) | |||||||
Pension and postretirement activity: | ||||||||||||
Prior service cost for the period, net of income tax benefit / (expense) of $0.0, $0.0 and $1.3 for each respective period | (0.1 | ) | — | (2.3 | ) | |||||||
Net gain / (loss) for the period, net of income tax benefit / (expense) of $1.1, ($1.0) and $7.2 for each respective period | (5.9 | ) | 1.7 | (12.5 | ) | |||||||
Reclassification to earnings, net of income tax benefit / (expense) of ($1.8), ($1.9) and ($1.5) for each respective period | 5.9 | 3.7 | 2.7 | |||||||||
Total change in unfunded pension and postretirement obligations | (0.1 | ) | 5.4 | (12.1 | ) | |||||||
Other comprehensive income / (loss) | (13.8 | ) | 13.6 | (15.6 | ) | |||||||
Net comprehensive income / (loss) | $ | (786.5 | ) | $ | 120.0 | $ | 99.4 |
THE DAYTON POWER AND LIGHT COMPANY | ||||||||||||
STATEMENTS OF CASH FLOWS | ||||||||||||
Years ended December 31, | ||||||||||||
$ in millions | 2015 | 2014 | 2013 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 106.4 | $ | 115.0 | $ | 83.6 | ||||||
Adjustments to reconcile Net income (loss) to Net cash from operating activities | ||||||||||||
Depreciation and amortization | 138.2 | 144.8 | 140.2 | |||||||||
Amortization of deferred financing costs | 2.9 | 3.1 | 1.5 | |||||||||
Unrealized loss (gain) on derivatives | 5.7 | 2.1 | 1.3 | |||||||||
Deferred income taxes | (19.2 | ) | 7.5 | (16.8 | ) | |||||||
Fixed-asset impairment | — | — | 86.0 | |||||||||
Loss / (Gain) on asset disposal | 0.4 | (3.5 | ) | 2.5 | ||||||||
Changes in certain assets and liabilities: | ||||||||||||
Accounts receivable | 28.7 | (7.1 | ) | 15.0 | ||||||||
Inventories | (9.1 | ) | (24.6 | ) | 27.2 | |||||||
Prepaid taxes | (1.3 | ) | (1.1 | ) | 0.4 | |||||||
Taxes applicable to subsequent years | (3.7 | ) | (6.9 | ) | (1.8 | ) | ||||||
Deferred regulatory costs, net | 21.8 | 5.4 | 7.8 | |||||||||
Accounts payable | (5.8 | ) | 32.4 | (5.9 | ) | |||||||
Accrued taxes payable | 7.3 | 9.0 | (9.1 | ) | ||||||||
Accrued interest payable | (5.7 | ) | 0.1 | (3.4 | ) | |||||||
Other current and deferred liabilities | (9.3 | ) | (18.1 | ) | 5.9 | |||||||
Pension, retiree and other benefits | (0.7 | ) | 19.1 | 1.8 | ||||||||
Unamortized investment tax credit | (2.4 | ) | (2.5 | ) | (2.5 | ) | ||||||
Other | 2.5 | (23.0 | ) | 1.6 | ||||||||
Net cash from operating activities | 256.7 | 251.7 | 335.3 | |||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | (127.0 | ) | (114.2 | ) | (122.1 | ) | ||||||
Decrease / (increase) in restricted cash | (0.3 | ) | (3.7 | ) | (2.3 | ) | ||||||
Purchase of renewable energy credits | (0.8 | ) | (3.5 | ) | (3.9 | ) | ||||||
Proceeds from sale of property | — | 10.7 | 0.8 | |||||||||
Insurance proceeds | 5.2 | 0.9 | 14.2 | |||||||||
Other investing activities, net | 0.4 | 1.3 | (1.2 | ) | ||||||||
Net cash from investing activities | (122.5 | ) | (108.5 | ) | (114.5 | ) | ||||||
Cash flows from financing activities | ||||||||||||
Dividends paid on common stock to parent | (50.0 | ) | (159.0 | ) | (190.0 | ) | ||||||
Dividends paid on preferred stock | (0.9 | ) | (0.9 | ) | (0.9 | ) | ||||||
Retirement of long-term debt | (314.4 | ) | (0.1 | ) | (470.1 | ) | ||||||
Issuance of long-term debt | 200.0 | — | 445.0 | |||||||||
Deferred financing costs | (3.9 | ) | (0.7 | ) | (10.4 | ) | ||||||
Borrowings from revolving credit facilities | 50.0 | — | — | |||||||||
Repayment of borrowings from revolving credit facilities | (50.0 | ) | — | — | ||||||||
Borrowings from related party | 35.0 | 15.0 | — | |||||||||
Repayment of borrowings from related party | — | (15.0 | ) | — | ||||||||
Net cash from financing activities | (134.2 | ) | (160.7 | ) | (226.4 | ) | ||||||
Cash and cash equivalents: | ||||||||||||
Net increase / (decrease) in cash | — | (17.5 | ) | (5.6 | ) | |||||||
Balance at beginning of period | 5.4 | 22.9 | 28.5 | |||||||||
Cash and cash equivalents at end of period | $ | 5.4 | $ | 5.4 | $ | 22.9 | ||||||
Supplemental cash flow information: | ||||||||||||
Interest paid, net of amounts capitalized | $ | 27.5 | $ | 26.6 | $ | 41.5 | ||||||
Income taxes (refunded) / paid, net | $ | 0.8 | $ | 0.7 | $ | (20.3 | ) | |||||
Non-cash financing and investing activities: | ||||||||||||
Accruals for capital expenditures | $ | 16.9 | $ | 16.3 | $ | 14.7 |
THE DAYTON POWER AND LIGHT COMPANY | ||||||||
BALANCE SHEETS | ||||||||
$ in millions | December 31, 2016 | December 31, 2015 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1.6 | $ | 5.4 | ||||
Restricted cash | 29.0 | 44.8 | ||||||
Accounts receivable, net (Note 2) | 134.6 | 119.5 | ||||||
Inventories (Note 2) | 75.8 | 108.0 | ||||||
Taxes applicable to subsequent years | 79.2 | 79.2 | ||||||
Regulatory assets, current (Note 3) | 0.1 | 14.4 | ||||||
Other prepayments and current assets | 32.4 | 46.3 | ||||||
Total current assets | 352.7 | 417.6 | ||||||
Property, plant and equipment: | ||||||||
Property, plant and equipment | 2,398.6 | 5,172.3 | ||||||
Less: Accumulated depreciation and amortization | (1,047.9 | ) | (2,534.8 | ) | ||||
1,350.7 | 2,637.5 | |||||||
Construction work in process | 89.9 | 76.5 | ||||||
Total net property, plant and equipment | 1,440.6 | 2,714.0 | ||||||
Other non-current assets: | ||||||||
Regulatory assets, non-current (Note 3) | 203.9 | 179.9 | ||||||
Intangible assets, net of amortization | 23.0 | 29.7 | ||||||
Other deferred assets | 14.9 | 18.4 | ||||||
Total other non-current assets | 241.8 | 228.0 | ||||||
Total Assets | $ | 2,035.1 | $ | 3,359.6 | ||||
LIABILITIES AND SHAREHOLDER'S EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion - long-term debt (Note 7) | $ | 4.7 | $ | 443.1 | ||||
Short-term debt | 5.0 | 35.0 | ||||||
Accounts payable | 110.5 | 94.1 | ||||||
Accrued taxes | 75.7 | 86.2 | ||||||
Accrued interest | 2.1 | 4.1 | ||||||
Customer security deposits | 15.2 | 15.1 | ||||||
Regulatory liabilities, current (Note 3) | 33.7 | 24.4 | ||||||
Other current liabilities | 48.3 | 51.0 | ||||||
Advance on contract termination | — | 27.7 | ||||||
Total current liabilities | 295.2 | 780.7 | ||||||
Non-current liabilities: | ||||||||
Long-term debt (Note 7) | 744.7 | 313.6 | ||||||
Deferred taxes (Note 8) | 146.3 | 631.2 | ||||||
Taxes payable | 84.1 | 82.1 | ||||||
Regulatory liabilities, non-current (Note 3) | 130.4 | 127.0 | ||||||
Pension, retiree and other benefits (Note 9) | 101.6 | 87.1 | ||||||
Unamortized investment tax credit | 17.7 | 20.0 | ||||||
Asset retirement obligations | 135.2 | 62.1 | ||||||
Other deferred credits | 17.6 | 20.2 | ||||||
Total non-current liabilities | 1,377.6 | 1,343.3 | ||||||
Redeemable preferred stock of subsidiary (Note 10) | — | 22.9 | ||||||
Commitments and contingencies (Note 11) | ||||||||
Common shareholder's equity: | ||||||||
Common stock, par value of $0.01 per share | 0.4 | 0.4 | ||||||
250,000,000 shares authorized, 41,172,173 shares issued and outstanding | ||||||||
Other paid-in capital | 810.7 | 803.7 | ||||||
Accumulated other comprehensive loss | (42.5 | ) | (28.7 | ) | ||||
Retained earnings / (accumulated deficit) | (406.3 | ) | 437.3 | |||||
Total common shareholder's equity | 362.3 | 1,212.7 | ||||||
Total Liabilities and Shareholder's Equity | $ | 2,035.1 | $ | 3,359.6 |
THE DAYTON POWER AND LIGHT COMPANY | |||||||||||||||||||||||
STATEMENTS OF SHAREHOLDER'S EQUITY | |||||||||||||||||||||||
Common Stock (a) | |||||||||||||||||||||||
$ in millions (except Outstanding Shares) | Outstanding Shares | Amount | Other Paid-in Capital | Accumulated Other Comprehensive Income / (Loss) | Retained Earnings | Total | |||||||||||||||||
Beginning balance | 41,172,173 | $ | 0.4 | $ | 803.3 | $ | (38.7 | ) | $ | 534.1 | $ | 1,299.1 | |||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||
Net comprehensive income | 12.0 | 83.6 | 95.6 | ||||||||||||||||||||
Common stock dividends | (190.0 | ) | (190.0 | ) | |||||||||||||||||||
Preferred stock dividends | (0.9 | ) | (0.9 | ) | |||||||||||||||||||
Other | 0.2 | — | 0.2 | ||||||||||||||||||||
Ending balance | 41,172,173 | 0.4 | 803.5 | (26.7 | ) | 426.8 | 1,204.0 | ||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||
Net comprehensive income | (15.6 | ) | 115.0 | 99.4 | |||||||||||||||||||
Common stock dividends | (159.0 | ) | (159.0 | ) | |||||||||||||||||||
Preferred stock dividends | (0.9 | ) | (0.9 | ) | |||||||||||||||||||
Other | (0.1 | ) | (0.1 | ) | |||||||||||||||||||
Ending balance | 41,172,173 | 0.4 | 803.5 | (42.3 | ) | 381.8 | 1,143.4 | ||||||||||||||||
Year ended December 31, 2015 | |||||||||||||||||||||||
Net comprehensive income | 13.6 | 106.4 | 120.0 | ||||||||||||||||||||
Common stock dividends | (50.0 | ) | (50.0 | ) | |||||||||||||||||||
Preferred stock dividends | (0.9 | ) | (0.9 | ) | |||||||||||||||||||
Other | 0.2 | 0.2 | |||||||||||||||||||||
Ending balance | 41,172,173 | $ | 0.4 | $ | 803.7 | $ | (28.7 | ) | $ | 437.3 | $ | 1,212.7 |
THE DAYTON POWER AND LIGHT COMPANY | ||||||||||||
STATEMENTS OF CASH FLOWS | ||||||||||||
Years ended December 31, | ||||||||||||
$ in millions | 2016 | 2015 | 2014 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net income / (loss) | $ | (772.7 | ) | $ | 106.4 | $ | 115.0 | |||||
Adjustments to reconcile Net income (loss) to Net cash from operating activities | ||||||||||||
Depreciation and amortization | 120.3 | 138.2 | 144.8 | |||||||||
Amortization of deferred financing costs | 2.9 | 2.9 | 3.1 | |||||||||
Unrealized loss (gain) on derivatives | (4.2 | ) | 5.7 | 2.1 | ||||||||
Deferred income taxes | (477.5 | ) | (19.2 | ) | 7.5 | |||||||
Fixed-asset impairment | 1,353.5 | — | — | |||||||||
Loss / (Gain) on asset disposal | — | 0.4 | (3.5 | ) | ||||||||
Changes in certain assets and liabilities: | ||||||||||||
Accounts receivable | (9.7 | ) | 28.7 | (7.1 | ) | |||||||
Inventories | 32.2 | (9.1 | ) | (24.6 | ) | |||||||
Prepaid taxes | 2.7 | (1.3 | ) | (1.1 | ) | |||||||
Taxes applicable to subsequent years | — | (3.7 | ) | (6.9 | ) | |||||||
Deferred regulatory costs, net | 4.1 | 21.8 | 5.4 | |||||||||
Accounts payable | 16.0 | (5.8 | ) | 32.4 | ||||||||
Accrued taxes payable | (10.5 | ) | 7.3 | 9.0 | ||||||||
Accrued interest payable | (2.0 | ) | (5.7 | ) | 0.1 | |||||||
Other current and deferred liabilities | (1.8 | ) | (9.3 | ) | (18.1 | ) | ||||||
Pension, retiree and other benefits | 8.6 | (0.7 | ) | 19.1 | ||||||||
Unamortized investment tax credit | (2.3 | ) | (2.4 | ) | (2.5 | ) | ||||||
Other | 5.2 | 2.5 | (23.0 | ) | ||||||||
Net cash provided by operating activities | 264.8 | 256.7 | 251.7 | |||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | (128.3 | ) | (127.0 | ) | (114.2 | ) | ||||||
Increase in restricted cash | (11.9 | ) | (0.3 | ) | (3.7 | ) | ||||||
Purchase of renewable energy credits | (0.4 | ) | (0.8 | ) | (3.5 | ) | ||||||
Proceeds from sale of property | — | — | 10.7 | |||||||||
Insurance proceeds | 6.1 | 5.2 | 0.9 | |||||||||
Other investing activities, net | 1.1 | 0.4 | 1.3 | |||||||||
Net cash used in investing activities | (133.4 | ) | (122.5 | ) | (108.5 | ) | ||||||
Cash flows from financing activities | ||||||||||||
Dividends paid on common stock to parent | (70.0 | ) | (50.0 | ) | (159.0 | ) | ||||||
Dividends paid on preferred stock | (0.7 | ) | (0.9 | ) | (0.9 | ) | ||||||
Retirement of long-term debt | (445.3 | ) | (314.4 | ) | (0.1 | ) | ||||||
Issuance of long-term debt | 442.8 | 200.0 | — | |||||||||
Deferred financing costs | (8.5 | ) | (3.9 | ) | (0.7 | ) | ||||||
Redemption on preferred stock | (23.5 | ) | — | — | ||||||||
Borrowings from revolving credit facilities | — | 50.0 | — | |||||||||
Repayment of borrowings from revolving credit facilities | — | (50.0 | ) | — | ||||||||
Borrowings from related party | 10.0 | 35.0 | 15.0 | |||||||||
Repayment of borrowings from related party | (40.0 | ) | — | (15.0 | ) | |||||||
Net cash used in financing activities | (135.2 | ) | (134.2 | ) | (160.7 | ) | ||||||
Cash and cash equivalents: | ||||||||||||
Net increase / (decrease) in cash | (3.8 | ) | — | (17.5 | ) | |||||||
Balance at beginning of period | 5.4 | 5.4 | 22.9 | |||||||||
Cash and cash equivalents at end of period | $ | 1.6 | $ | 5.4 | $ | 5.4 | ||||||
Supplemental cash flow information: | ||||||||||||
Interest paid, net of amounts capitalized | $ | 21.4 | $ | 27.5 | $ | 26.6 | ||||||
Income taxes (refunded) / paid, net | $ | 0.3 | $ | 0.8 | $ | 0.7 | ||||||
Non-cash financing and investing activities: | ||||||||||||
Accruals for capital expenditures | $ | 14.8 | $ | 16.9 | $ | 16.3 | ||||||
Equity contribution to settle liability | $ | 7.5 | $ | — | $ | — |
THE DAYTON POWER AND LIGHT COMPANY | |||||||||||||||||||||||
STATEMENTS OF SHAREHOLDER'S EQUITY | |||||||||||||||||||||||
Common Stock (a) | |||||||||||||||||||||||
$ in millions (except Outstanding Shares) | Outstanding Shares | Amount | Other Paid-in Capital | Accumulated Other Comprehensive Income / (Loss) | Retained Earnings / Accumulated Deficit | Total | |||||||||||||||||
Beginning balance | 41,172,173 | $ | 0.4 | $ | 803.5 | $ | (26.7 | ) | $ | 426.8 | $ | 1,204.0 | |||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||
Net comprehensive income | (15.6 | ) | 115.0 | 99.4 | |||||||||||||||||||
Common stock dividends | (159.0 | ) | (159.0 | ) | |||||||||||||||||||
Preferred stock dividends | (0.9 | ) | (0.9 | ) | |||||||||||||||||||
Other | (0.1 | ) | (0.1 | ) | |||||||||||||||||||
Ending balance | 41,172,173 | 0.4 | 803.5 | (42.3 | ) | 381.8 | 1,143.4 | ||||||||||||||||
Year ended December 31, 2015 | |||||||||||||||||||||||
Net comprehensive income | 13.6 | 106.4 | 120.0 | ||||||||||||||||||||
Common stock dividends | (50.0 | ) | (50.0 | ) | |||||||||||||||||||
Preferred stock dividends | (0.9 | ) | (0.9 | ) | |||||||||||||||||||
Other | 0.2 | 0.2 | |||||||||||||||||||||
Ending balance | 41,172,173 | 0.4 | 803.7 | (28.7 | ) | 437.3 | 1,212.7 | ||||||||||||||||
Year ended December 31, 2016 | |||||||||||||||||||||||
Net comprehensive loss | (13.8 | ) | (772.7 | ) | (786.5 | ) | |||||||||||||||||
Common stock dividends | (70.0 | ) | (70.0 | ) | |||||||||||||||||||
Preferred stock dividends | (0.7 | ) | (0.7 | ) | |||||||||||||||||||
Other | 7.0 | (0.2 | ) | 6.8 | |||||||||||||||||||
Ending balance | 41,172,173 | $ | 0.4 | $ | 810.7 | $ | (42.5 | ) | $ | (406.3 | ) | $ | 362.3 |
(a) | $0.01 par value, 250,000,000 shares authorized. |
$ in millions | Expected 2016 Service Cost | Expected 2016 Interest Cost | 2016 Service Cost | 2016 Interest Cost | ||||||||||||||||||||||||||||||||||||||||||||
Disaggregated rate approach | Aggregate rate approach | Impact of change | Disaggregated rate approach | Aggregate rate approach | Impact of change | Disaggregated rate approach | Aggregate rate approach | Impact of change | Disaggregated rate approach | Aggregate rate approach | Impact of change | |||||||||||||||||||||||||||||||||||||
Total Pension | $ | 5.7 | $ | 6.1 | $ | (0.4 | ) | $ | 14.8 | $ | 17.9 | $ | (3.1 | ) | $ | 5.7 | $ | 6.1 | $ | (0.4 | ) | $ | 14.7 | $ | 17.9 | $ | (3.2 | ) | ||||||||||||||||||||
Total Postretirement Benefits | $ | 0.2 | $ | 0.2 | $ | — | $ | 0.6 | $ | 0.7 | $ | (0.1 | ) | 0.2 | 0.2 | — | 0.6 | 0.7 | (0.1 | ) | ||||||||||||||||||||||||||||
Total | $ | 5.9 | $ | 6.3 | $ | (0.4 | ) | $ | 15.4 | $ | 18.6 | $ | (3.2 | ) | $ | 5.9 | $ | 6.3 | $ | (0.4 | ) | $ | 15.3 | $ | 18.6 | $ | (3.3 | ) |
Accounting Standard | Description | Date of Adoption | Effect on the financial statements upon adoption |
New Accounting Standards Adopted | |||
2016-19 - Technical Corrections and Improvements | This standard clarifies guidance that affects the implementation of ASU 2015-05. It clarifies that the license of internal-use software shall be accounted for as the acquisition of an intangible asset. Transition method: retrospective. The adoption of the new guidance did not have an impact on net income, net assets or net equity. | December 31, 2016 | Capitalized software of $78.5 million and its corresponding amortization of $56.4 million previously classified within property, plant and equipment were reclassified to intangibles as of December 31, 2016. |
2015-15, Interest - Imputation of Interest (Subtopic 835-30) | Given the absence of authoritative guidance within ASU 2015-03, this standard clarifies that the SEC Staff would not object to an entity presenting debt issuance costs related to line-of-credit arrangements as an asset that is subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Transition method: retrospective. | January 1, 2016 | Deferred financing costs related to lines-of-credit of approximately $0.7 million recorded within Other deferred assets were not reclassified. |
2015-03, Interest - Imputation of Interest (Subtopic 835-30) | The standard simplifies the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the standard. Transition method: retrospective. | January 1, 2016 | Deferred financing costs of approximately $1.8 million previously classified within Other prepayments and current assets and $4.5 million previously classified within Other deferred assets were reclassified to reduce the related debt liabilities. |
2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis | The standard makes targeted amendments to the current consolidation guidance and ends the deferral granted to investment companies from applying the VIE guidance. The standard amends the evaluation of whether (1) fees paid to a decision-maker or service providers represent a variable interest, (2) a limited partnership or similar entity has the characteristics of a VIE and (3) a reporting entity is the primary beneficiary of a VIE. Transition method: retrospective. | January 1, 2016 | There were no changes to the consolidation conclusions. |
2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40) | The standard requires management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. There are required disclosures if substantial doubt is identified including documentation of principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans), management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern. | December 31, 2016 | Adoption of this standard had no impact on our financial statements. |
Accounting Standard | Description | Date of Adoption | Effect on the financial statements upon adoption |
New Accounting Standards Issued But Not Yet Effective | |||
2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment | This standard simplifies the accounting for goodwill impairment by removing the requirement to calculate the implied fair value. Instead, it requires that an entity records an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. | January 1, 2020. Early adoption is permitted as of January 1, 2017. | We are currently evaluating the impact of adopting the standard on our financial statements. |
2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business | This standard provides guidance to assist the entities with evaluating when a set of transferred assets and activities is a business. | January 1, 2018. Early adoption is permitted | We are currently evaluating the impact of adopting the standard on our financial statements. |
2016-18, Statement of Cash Flows (Topic 320): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) | This standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Transition method: retrospective. | January 1, 2018 Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our financial statements. |
2016-17, Consolidation (Topic 810): Interest Held Through Related Parties That are Under Common Control | States that businesses deciding whether they are primary beneficiaries can consider indirect interests held through related parties that are under common control on a proportionate basis as opposed to in their entirety. | January 1, 2017 Early adoption is permitted. | Transition is retrospective to all relevant prior periods beginning with the fiscal year in which ASU 2015-02 was initially applied. |
2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory | This standard requires that an entity recognizes the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Transition method: modified retrospective. | January 1, 2018. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our financial statements. |
2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Receipts and Cash Payments (a consensus of the Emerging Issues Task Force) | This standard provides specific guidance on how certain cash transactions are presented and classified in the statement of cash flows. Transition method: retrospective. | January 1, 2018. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our financial statements. We do not anticipate a material effect on our financial statements. |
2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | The standard updates the impairment model for financial assets measured at amortized cost to an expected loss model rather than an incurred loss model. It also allows for the presentation of credit losses on available-for-sale debt securities as an allowance rather than a write down. Transition method: various. | January 1, 2020. Early adoption is permitted only as of January 1, 2019. | We are currently evaluating the impact of adopting the standard on our financial statements. No transition method has been selected yet. |
2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting | Removes some of the Emerging Issues Task Force (EITF) guidance for revenue recognition and hedge accounting from U.S. GAAP to reflect announcements the SEC staff made to the task force in March. | January 1, 2018. Earlier application is permitted only as of January 1, 2017. | We are currently evaluating the impact of adopting the standard on our financial statements. |
Accounting Standard | Description | Date of Adoption | Effect on the financial statements upon adoption |
2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting | The standard simplifies the following aspects of accounting for share-based payment awards: accounting for income taxes, classification of excess tax benefits on the statement of cash flows, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities and classification of employee taxes paid on statement of cash flows when an employer withholds shares for tax-withholding purposes. Transition method: The recording of excess tax benefits and tax deficiencies arising from vesting or settlement will be applied prospectively. The elimination of the requirement that excess tax benefits be realized before they are recognized will be adopted on a modified retrospective basis with a cumulative adjustment to the opening balance sheet. | January 1, 2017. Early adoption is permitted. | The primary effect of adoption will be the recognition of excess tax benefits in our provision for income taxes in the period when the awards vest or are settled, rather than in paid-in-capital in the period when the excess tax benefits are realized. We will continue to estimate the number of awards that are expected to vest in our determination of the related periodic compensation cost. |
2016-06, Derivatives and Hedging (Topic 815) - Contingent Put and Call Options in Debt Instruments | This standard clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. When a call (put) option is contingently exercisable, an entity no longer has to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. Transition method: a modified retrospective basis to existing debt instruments as of the effective date. | January 1, 2017. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard, but do not anticipate a material impact on our financial statements. |
2016-05, Derivatives and Hedging (Topic 815) - Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships | The standard clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not require de-designation of that hedging relationship provided that all other hedge accounting criteria (including those in paragraphs 815-20-35-14 through 35-18) continue to be met. Transition method: prospective or a modified retrospective basis. | January 1, 2017. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard, but do not anticipate a material impact on our financial statements. No transition method has been selected yet. |
2016-02, Leases (Topic 842) | The standard creates Topic 842, Leases which supersedes Topic 840, Leases, and introduces a lessee model that brings substantially all leases onto the balance sheet while retaining most of the principles of the existing lessor model in U.S. GAAP and aligning many of those principles with Topic 606, Revenue from Contracts with Customers. Transition method: modified retrospective approach with certain practical expedients. | January 1, 2019. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our financial statements. |
2016-01, Financial Instruments - Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities | The standard significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. Also, it amends certain disclosure requirements associated with the fair value of financial instruments. Transition: cumulative effect in Retained Earnings as of adoption or prospectively for equity investments without readily determinable fair value. | January 1, 2018. Limited early adoption permitted. | We are currently evaluating the impact of adopting the standard, but do not anticipate a material impact on our financial statements. |
2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory | The standard replaces the current lower of cost or market test with a lower of cost or net realizable value test. Transition method: prospectively. | January 1, 2017. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our financial statements. |
2014-09, 2015-14, 2016-08, 2016-10, 2016-12, 2016-20, Revenue from Contracts with Customers (Topic 606), | See discussion of the ASU below. | January 1, 2018. Earlier application is permitted only as of January 1, 2017. | We will adopt the standards on January 1, 2018; and we are currently evaluating the effect of their adoption on our financial statements. |
December 31, | December 31, | |||||||||||||||
$ in millions | 2015 | 2014 | 2016 | 2015 | ||||||||||||
Accounts receivable, net | ||||||||||||||||
Unbilled revenue | $ | 43.3 | $ | 49.0 | $ | 43.0 | $ | 43.3 | ||||||||
Customer receivables | 54.1 | 68.7 | 71.2 | 54.1 | ||||||||||||
Amounts due from partners in jointly-owned stations | 16.0 | 15.2 | 12.7 | 16.0 | ||||||||||||
Other | 6.9 | 20.7 | 8.9 | 6.9 | ||||||||||||
Provisions for uncollectible accounts | (0.8 | ) | (0.9 | ) | (1.2 | ) | (0.8 | ) | ||||||||
Total accounts receivable, net | $ | 119.5 | $ | 152.7 | $ | 134.6 | $ | 119.5 | ||||||||
Inventories | ||||||||||||||||
Fuel and limestone | $ | 72.2 | $ | 65.3 | $ | 38.8 | $ | 72.2 | ||||||||
Plant materials and supplies | 33.7 | 32.3 | 35.3 | 33.7 | ||||||||||||
Other | 2.1 | 1.4 | 1.7 | 2.1 | ||||||||||||
Total inventories, at average cost | $ | 108.0 | $ | 99.0 | $ | 75.8 | $ | 108.0 |
Details about Accumulated Other Comprehensive Income / (Loss) Components | Affected line item in the Statements of Operations | Years ended December 31, | Affected line item in the Statements of Operations | Years ended December 31, | ||||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||||||
Gains and losses on Available-for-sale securities activity (Note 5): | Gains and losses on Available-for-sale securities activity (Note 5): | Gains and losses on Available-for-sale securities activity (Note 5): | ||||||||||||||||||||||||||
Other income / (deductions) | $ | — | $ | 0.4 | $ | 2.1 | Other income | $ | — | $ | — | $ | 0.4 | |||||||||||||||
Tax expense | — | (0.2 | ) | (0.7 | ) | Tax expense | — | — | (0.2 | ) | ||||||||||||||||||
Net of income taxes | — | 0.2 | 1.4 | Net of income taxes | — | — | 0.2 | |||||||||||||||||||||
Gains and losses on cash flow hedges (Note 6): | Gains and losses on cash flow hedges (Note 6): | Gains and losses on cash flow hedges (Note 6): | ||||||||||||||||||||||||||
Interest expense | (1.1 | ) | (1.1 | ) | (2.1 | ) | Interest expense | (1.0 | ) | (1.1 | ) | (1.1 | ) | |||||||||||||||
Revenue | (18.7 | ) | 28.4 | 2.2 | Revenue | (55.3 | ) | (18.7 | ) | 28.4 | ||||||||||||||||||
Purchased power | 4.4 | (0.4 | ) | 5.0 | Purchased power | 9.9 | 4.4 | (0.4 | ) | |||||||||||||||||||
Total before income taxes | (15.4 | ) | 26.9 | 5.1 | Total before income taxes | (46.4 | ) | (15.4 | ) | 26.9 | ||||||||||||||||||
Tax expense | 5.6 | (11.5 | ) | (2.5 | ) | Tax benefit / (expense) | 16.4 | 5.6 | (11.5 | ) | ||||||||||||||||||
Net of income taxes | (9.8 | ) | 15.4 | 2.6 | Net of income taxes | (30.0 | ) | (9.8 | ) | 15.4 | ||||||||||||||||||
Amortization of defined benefit pension items (Note 9): | Amortization of defined benefit pension items (Note 9): | Amortization of defined benefit pension items (Note 9): | ||||||||||||||||||||||||||
Reclassification to Other income / (deductions) | 5.6 | 4.1 | 5.7 | Operation and maintenance | 7.7 | 5.6 | 4.1 | |||||||||||||||||||||
Tax benefit | (1.9 | ) | (1.4 | ) | (1.9 | ) | Tax expense | (1.8 | ) | (1.9 | ) | (1.4 | ) | |||||||||||||||
Net of income taxes | 3.7 | 2.7 | 3.8 | Net of income taxes | 5.9 | 3.7 | 2.7 | |||||||||||||||||||||
Total reclassifications for the period, net of income taxes | Total reclassifications for the period, net of income taxes | $ | (6.1 | ) | $ | 18.3 | $ | 7.8 | Total reclassifications for the period, net of income taxes | $ | (24.1 | ) | $ | (6.1 | ) | $ | 18.3 |
$ in millions | Gains / (losses) on available-for-sale securities | Gains / (losses) on cash flow hedges | Change in unfunded pension obligation | Total | Gains / (losses) on available-for-sale securities | Gains / (losses) on cash flow hedges | Change in unfunded pension obligation | Total | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 0.8 | $ | 6.2 | $ | (33.7 | ) | $ | (26.7 | ) | ||||||||||||||||||||||
Other comprehensive loss before reclassifications | (0.3 | ) | (18.8 | ) | (14.8 | ) | (33.9 | ) | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 0.2 | 15.4 | 2.7 | 18.3 | ||||||||||||||||||||||||||||
Net current period other comprehensive loss | (0.1 | ) | (3.4 | ) | (12.1 | ) | (15.6 | ) | ||||||||||||||||||||||||
Balance at December 31, 2014 | 0.7 | 2.8 | (45.8 | ) | (42.3 | ) | $ | 0.7 | $ | 2.8 | $ | (45.8 | ) | $ | (42.3 | ) | ||||||||||||||||
Other comprehensive income / (loss) before reclassifications | (0.2 | ) | 18.2 | 1.7 | 19.7 | (0.2 | ) | 18.2 | 1.7 | 19.7 | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | — | (9.8 | ) | 3.7 | (6.1 | ) | — | (9.8 | ) | 3.7 | (6.1 | ) | ||||||||||||||||||||
Net current period other comprehensive income / (loss) | (0.2 | ) | 8.4 | 5.4 | 13.6 | (0.2 | ) | 8.4 | 5.4 | 13.6 | ||||||||||||||||||||||
Balance at December 31, 2015 | $ | 0.5 | $ | 11.2 | $ | (40.4 | ) | $ | (28.7 | ) | 0.5 | 11.2 | (40.4 | ) | (28.7 | ) | ||||||||||||||||
Other comprehensive income / (loss) before reclassifications | 0.2 | 16.1 | (6.0 | ) | 10.3 | |||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | — | (30.0 | ) | 5.9 | (24.1 | ) | ||||||||||||||||||||||||||
Net current period other comprehensive income / (loss) | 0.2 | (13.9 | ) | (0.1 | ) | (13.8 | ) | |||||||||||||||||||||||||
Balance at December 31, 2016 | $ | 0.7 | $ | (2.7 | ) | $ | (40.5 | ) | $ | (42.5 | ) |
December 31, | December 31, | |||||||||||||||||||||||
$ in millions | Type of Recovery | Amortization Through | 2015 | 2014 | Type of Recovery | Amortization Through | 2016 | 2015 | ||||||||||||||||
Regulatory assets, current: | ||||||||||||||||||||||||
Fuel and purchased power recovery costs | A | 2016 | $ | 13.9 | $ | 16.3 | A | 2016 | $ | — | $ | 13.9 | ||||||||||||
Economic development costs | A | 2016 | 0.5 | 2.1 | A | 2017 | 0.1 | 0.5 | ||||||||||||||||
Deferred storm costs | B | 2015 | — | 22.3 | ||||||||||||||||||||
Energy efficiency program | A | 2016 | — | 1.8 | ||||||||||||||||||||
Other miscellaneous | A | 2016 | — | 1.7 | ||||||||||||||||||||
Total regulatory assets, current | $ | 14.4 | $ | 44.2 | 0.1 | 14.4 | ||||||||||||||||||
Regulatory assets, non-current: | ||||||||||||||||||||||||
Pension benefits | B | Ongoing | $ | 91.6 | $ | 99.6 | B | Ongoing | 97.6 | 91.6 | ||||||||||||||
Deferred recoverable income taxes | B/C | Ongoing | 36.4 | 43.1 | B/C | Ongoing | 35.9 | 36.4 | ||||||||||||||||
Unrecovered OVEC charges | D | Undetermined | 21.0 | 10.5 | ||||||||||||||||||||
Fuel costs | B | Undetermined | 12.7 | — | B | Undetermined | 15.4 | 12.7 | ||||||||||||||||
Unrecovered OVEC charges | D | Undetermined | 10.5 | — | ||||||||||||||||||||
Unamortized loss on reacquired debt | B | Various | 9.0 | 9.9 | B | Various | 8.0 | 9.0 | ||||||||||||||||
Smart grid and advanced metering infrastructure costs | D | Undetermined | 7.3 | 6.6 | D | Undetermined | 7.3 | 7.3 | ||||||||||||||||
Rate case costs | D | Undetermined | 6.3 | 1.9 | ||||||||||||||||||||
Generation separation costs | Undetermined | 3.9 | 1.6 | D | Undetermined | 5.7 | 3.9 | |||||||||||||||||
Retail settlement system costs | D | Undetermined | 3.1 | 3.1 | D | Undetermined | 3.1 | 3.1 | ||||||||||||||||
Consumer education campaign | D | Undetermined | 3.0 | 3.0 | D | Undetermined | 3.0 | 3.0 | ||||||||||||||||
Rate case costs | D | Undetermined | 1.9 | — | ||||||||||||||||||||
Other miscellaneous | D | Undetermined | 0.5 | 0.6 | D | Undetermined | 0.6 | 0.5 | ||||||||||||||||
Total regulatory assets, non-current | $ | 179.9 | $ | 167.5 | 203.9 | 179.9 | ||||||||||||||||||
Total regulatory assets | $ | 194.3 | $ | 211.7 | $ | 204.0 | $ | 194.3 | ||||||||||||||||
Regulatory liabilities, current: | ||||||||||||||||||||||||
Competitive bidding | $ | 16.1 | $ | 9.1 | ||||||||||||||||||||
Energy efficiency program | $ | 9.2 | $ | — | 14.1 | 9.2 | ||||||||||||||||||
Competitive bidding | 9.1 | — | ||||||||||||||||||||||
Transmission costs | 3.7 | 2.9 | 3.3 | 3.7 | ||||||||||||||||||||
Reconciliation rider | 2.1 | — | — | 2.1 | ||||||||||||||||||||
Other miscellaneous | 0.3 | 1.5 | 0.2 | 0.3 | ||||||||||||||||||||
Total regulatory liabilities, current | $ | 24.4 | $ | 4.4 | 33.7 | 24.4 | ||||||||||||||||||
Regulatory liabilities, non-current: | ||||||||||||||||||||||||
Estimated costs of removal - regulated property | $ | 121.8 | $ | 119.3 | 126.5 | 121.8 | ||||||||||||||||||
Postretirement benefits | 5.2 | 4.8 | 3.9 | 5.2 | ||||||||||||||||||||
Total regulatory liabilities, non-current | $ | 127.0 | $ | 124.1 | 130.4 | 127.0 | ||||||||||||||||||
Total regulatory liabilities | $ | 151.4 | $ | 128.5 | $ | 164.1 | $ | 151.4 |
December 31, | December 31, | |||||||||||||||||||||||
$ in millions | 2015 | Composite Rate | 2014 | Composite Rate | 2016 | Composite Rate | 2015 | Composite Rate | ||||||||||||||||
Regulated: | ||||||||||||||||||||||||
Transmission | $ | 413.7 | 2.3% | $ | 402.4 | 2.3% | $ | 421.1 | 2.3% | $ | 413.7 | 2.3% | ||||||||||||
Distribution | 1,639.7 | 3.3% | 1,568.0 | 3.5% | 1,693.5 | 3.2% | 1,639.7 | 3.3% | ||||||||||||||||
General | 96.9 | 8.4% | 116.1 | 6.7% | 31.6 | 3.2% | 31.6 | 3.2% | ||||||||||||||||
Non-depreciable | 62.5 | N/A | 61.6 | N/A | 63.5 | N/A | 62.5 | N/A | ||||||||||||||||
Total regulated | 2,212.8 | 2,148.1 | 2,209.7 | 2,147.5 | ||||||||||||||||||||
Unregulated: | ||||||||||||||||||||||||
Production / Generation | 3,016.8 | 2.1% | 2,957.7 | 2.4% | 173.9 | 26.2% | 3,009.8 | 2.1% | ||||||||||||||||
Non-depreciable | 15.1 | N/A | 14.9 | N/A | 15.0 | N/A | 15.0 | N/A | ||||||||||||||||
Total unregulated | 3,031.9 | 2,972.6 | 188.9 | 3,024.8 | ||||||||||||||||||||
Total property, plant and equipment in service | $ | 5,244.7 | 2.6% | $ | 5,120.7 | 2.8% | $ | 2,398.6 | 4.6% | $ | 5,172.3 | 2.5% |
DP&L Share | DP&L Carrying Value | DP&L Share | DP&L Carrying Value | |||||||||||||||||||||||||||||||
Ownership % | Summer Production Capacity (MW) | Gross Plant In Service ($ in millions) | Accumulated Depreciation ($ in millions) | Construction Work in Process ($ in millions) | Ownership % | Summer Production Capacity (MW) | Gross Plant In Service ($ in millions) | Accumulated Depreciation ($ in millions) | Construction Work in Process ($ in millions) | |||||||||||||||||||||||||
Jointly-owned production units | ||||||||||||||||||||||||||||||||||
Conesville - Unit 4 | 16.5 | 129 | $ | 27 | $ | 8 | $ | 1 | 16.5 | 129 | $ | — | $ | — | $ | — | ||||||||||||||||||
Killen - Unit 2 | 67.0 | 402 | 655 | 326 | 2 | 67.0 | 402 | 34 | — | 2 | ||||||||||||||||||||||||
Miami Fort - Units 7 and 8 | 36.0 | 368 | 366 | 171 | 6 | 36.0 | 368 | 27 | — | 7 | ||||||||||||||||||||||||
Stuart - Units 1 through 4 | 35.0 | 808 | 772 | 338 | 18 | 35.0 | 808 | 24 | — | 23 | ||||||||||||||||||||||||
Zimmer - Unit 1 | 28.1 | 371 | 1,104 | 690 | 12 | 28.1 | 371 | 7 | — | 9 | ||||||||||||||||||||||||
Transmission (at varying percentages) | 99 | 64 | — | 99 | 66 | — | ||||||||||||||||||||||||||||
Total | 2,078 | $ | 3,023 | $ | 1,597 | $ | 39 | 2,078 | $ | 191 | $ | 66 | $ | 41 |
$ in millions | ||||||
Balance at December 31, 2013 | $ | 19.9 | ||||
Calendar 2014 | ||||||
Additions | 3.6 | |||||
Accretion expense | 1.1 | |||||
Settlements | (1.7 | ) | ||||
Balance at December 31, 2014 | 22.9 | $ | 22.9 | |||
Calendar 2015 | ||||||
Additions | 40.3 | 40.3 | ||||
Accretion expense | 2.1 | 2.1 | ||||
Settlements | (3.2 | ) | (3.2 | ) | ||
Balance at December 31, 2015 | $ | 62.1 | 62.1 | |||
Calendar 2016 | ||||||
Additions | 70.2 | |||||
Accretion expense | 2.9 | |||||
Settlements | — | |||||
Balance at December 31, 2016 | $ | 135.2 |
$ in millions | ||||||
Balance at December 31, 2013 | $ | 115.0 | ||||
Calendar 2014 | ||||||
Additions | 19.6 | |||||
Settlements | (15.3 | ) | ||||
Balance at December 31, 2014 | 119.3 | $ | 119.3 | |||
Calendar 2015 | ||||||
Additions | 24.3 | 24.3 | ||||
Settlements | (21.8 | ) | (21.8 | ) | ||
Balance at December 31, 2015 | $ | 121.8 | 121.8 | |||
Calendar 2016 | ||||||
Additions | 11.7 | |||||
Settlements | (7.0 | ) | ||||
Balance at December 31, 2016 | $ | 126.5 |
December 31, 2015 | December 31, 2014 | December 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||
$ in millions | Carrying Value | Fair Value | Carrying Value | Fair Value | Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Money market funds | $ | 0.2 | $ | 0.2 | $ | 0.1 | $ | 0.1 | $ | 0.4 | $ | 0.4 | $ | 0.2 | $ | 0.2 | ||||||||||||||||
Equity securities | 3.0 | 3.8 | 2.7 | 3.7 | 2.4 | 3.4 | 3.0 | 3.8 | ||||||||||||||||||||||||
Debt securities | 4.4 | 4.3 | 4.7 | 4.7 | 4.4 | 4.4 | 4.4 | 4.3 | ||||||||||||||||||||||||
Hedge Funds | 0.4 | 0.4 | 0.8 | 0.8 | ||||||||||||||||||||||||||||
Real Estate | 0.3 | 0.3 | 0.4 | 0.4 | ||||||||||||||||||||||||||||
Hedge funds | — | 0.1 | 0.4 | 0.4 | ||||||||||||||||||||||||||||
Real estate | 0.3 | 0.3 | 0.3 | 0.3 | ||||||||||||||||||||||||||||
Tangible assets | 0.1 | 0.1 | — | — | ||||||||||||||||||||||||||||
Total assets | $ | 8.3 | $ | 9.0 | $ | 8.7 | $ | 9.7 | $ | 7.6 | $ | 8.7 | $ | 8.3 | $ | 9.0 | ||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Debt | $ | 762.9 | $ | 764.2 | $ | 877.1 | $ | 882.5 | $ | 749.4 | $ | 763.5 | $ | 756.7 | $ | 764.2 |
Assets and Liabilities at Fair Value | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
$ in millions | Fair Value at December 31, 2016 (a) | Based on Quoted Prices in Active Markets | Other observable inputs | Unobservable inputs | ||||||||||||
Assets | ||||||||||||||||
Master trust assets | ||||||||||||||||
Money market funds | $ | 0.4 | $ | 0.4 | $ | — | $ | — | ||||||||
Equity securities | 3.4 | — | 3.4 | — | ||||||||||||
Debt securities | 4.4 | — | 4.4 | — | ||||||||||||
Hedge funds | 0.1 | — | 0.1 | — | ||||||||||||
Real estate | 0.3 | — | 0.3 | — | ||||||||||||
Tangible assets | 0.1 | — | 0.1 | — | ||||||||||||
Total Master trust assets | 8.7 | 0.4 | 8.3 | — | ||||||||||||
Derivative assets | ||||||||||||||||
FTRs | 0.1 | — | — | 0.1 | ||||||||||||
Interest rate hedge | 1.2 | — | 1.2 | — | ||||||||||||
Forward power contracts | 19.5 | — | 19.5 | — | ||||||||||||
Total derivative assets | 20.8 | — | 20.7 | 0.1 | ||||||||||||
Total assets | $ | 29.5 | $ | 0.4 | $ | 29.0 | $ | 0.1 | ||||||||
Liabilities | ||||||||||||||||
FTRs | $ | — | $ | — | $ | — | $ | — | ||||||||
Interest rate hedge | 0.7 | — | 0.7 | — | ||||||||||||
Forward power contracts | 28.5 | — | 26.0 | 2.5 | ||||||||||||
Total derivative liabilities | 29.2 | — | 26.7 | 2.5 | ||||||||||||
Long-term debt | 763.5 | — | 745.5 | 18.0 | ||||||||||||
Total liabilities | $ | 792.7 | $ | — | $ | 772.2 | $ | 20.5 |
(a) | Includes credit valuation adjustment. |
Assets and Liabilities at Fair Value | ||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
$ in millions | Fair Value at December 31, 2015 (a) | Based on Quoted Prices in Active Markets | Other observable inputs | Unobservable inputs | ||||||||||||
Assets | ||||||||||||||||
Master trust assets | ||||||||||||||||
Money market funds | $ | 0.2 | $ | 0.2 | $ | — | $ | — | ||||||||
Equity securities | 3.8 | — | 3.8 | — | ||||||||||||
Debt securities | 4.3 | — | 4.3 | — | ||||||||||||
Hedge Funds | 0.4 | — | 0.4 | — | ||||||||||||
Real Estate | 0.3 | — | 0.3 | — | ||||||||||||
Total Master trust assets | 9.0 | 0.2 | 8.8 | — | ||||||||||||
Derivative assets | ||||||||||||||||
FTRs | 0.2 | — | — | 0.2 | ||||||||||||
Forward power contracts | 30.6 | — | 30.6 | — | ||||||||||||
Total derivative assets | 30.8 | — | 30.6 | 0.2 | ||||||||||||
Total assets | $ | 39.8 | $ | 0.2 | $ | 39.4 | $ | 0.2 | ||||||||
Liabilities | ||||||||||||||||
FTRs | $ | 0.5 | $ | — | $ | — | $ | 0.5 | ||||||||
Forward power contracts | 27.0 | — | 23.9 | 3.1 | ||||||||||||
Total derivative liabilities | 27.5 | — | 23.9 | 3.6 | ||||||||||||
Long-term debt | 764.2 | — | 746.1 | 18.1 | ||||||||||||
Total liabilities | $ | 791.7 | $ | — | $ | 770.0 | $ | 21.7 |
Assets and Liabilities at Fair Value | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
$ in millions | Fair Value at December 31, 2014 (a) | Based on Quoted Prices in Active Markets | Other observable inputs | Unobservable inputs | Fair Value at December 31, 2015 (a) | Based on Quoted Prices in Active Markets | Other observable inputs | Unobservable inputs | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Master trust assets | ||||||||||||||||||||||||||||||||
Money market funds | $ | 0.1 | $ | 0.1 | $ | — | $ | — | $ | 0.2 | $ | 0.2 | $ | — | $ | — | ||||||||||||||||
Equity securities | 3.7 | 3.7 | — | — | 3.8 | — | 3.8 | — | ||||||||||||||||||||||||
Debt securities | 4.7 | 4.7 | — | — | 4.3 | — | 4.3 | — | ||||||||||||||||||||||||
Hedge Funds | 0.8 | — | 0.8 | — | ||||||||||||||||||||||||||||
Real Estate | 0.4 | 0.4 | — | — | ||||||||||||||||||||||||||||
Hedge funds | 0.4 | — | 0.4 | — | ||||||||||||||||||||||||||||
Real estate | 0.3 | — | 0.3 | — | ||||||||||||||||||||||||||||
Total Master trust assets | 9.7 | 8.9 | 0.8 | — | 9.0 | 0.2 | 8.8 | — | ||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||
FTRs | 0.2 | — | — | 0.2 | ||||||||||||||||||||||||||||
Forward power contracts | 15.1 | — | 13.9 | 1.2 | 30.6 | — | 30.6 | — | ||||||||||||||||||||||||
Total derivative assets | 15.1 | — | 13.9 | 1.2 | 30.8 | — | 30.6 | 0.2 | ||||||||||||||||||||||||
Total assets | $ | 24.8 | $ | 8.9 | $ | 14.7 | $ | 1.2 | $ | 39.8 | $ | 0.2 | $ | 39.4 | $ | 0.2 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
FTRs | $ | 0.5 | $ | — | $ | — | $ | 0.5 | ||||||||||||||||||||||||
Forward power contracts | $ | 11.2 | $ | — | $ | 11.2 | $ | — | 27.0 | — | 23.9 | 3.1 | ||||||||||||||||||||
FTRS | 0.6 | — | — | 0.6 | ||||||||||||||||||||||||||||
Heating Oil Futures | 0.4 | 0.4 | — | — | ||||||||||||||||||||||||||||
Natural Gas Futures | 0.1 | 0.1 | — | — | ||||||||||||||||||||||||||||
Total derivative liabilities | 12.3 | 0.5 | 11.2 | 0.6 | 27.5 | — | 23.9 | 3.6 | ||||||||||||||||||||||||
Long-term debt | 882.5 | — | 864.3 | 18.2 | 764.2 | — | 746.1 | 18.1 | ||||||||||||||||||||||||
Total liabilities | $ | 894.8 | $ | 0.5 | $ | 875.5 | $ | 18.8 | $ | 791.7 | $ | — | $ | 770.0 | $ | 21.7 |
(a) | Includes credit valuation adjustment. |
$ in millions | Year ended December 31, 2013 | |||||||||||||||||||
Carrying | Fair Value | Gross | ||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Loss | ||||||||||||||||
Assets | ||||||||||||||||||||
Long-lived assets held and used (a) | ||||||||||||||||||||
Conesville | $ | 30.0 | $ | — | $ | — | $ | 20.0 | $ | 10.0 | ||||||||||
East Bend | $ | 76.0 | $ | — | $ | — | $ | — | $ | 76.0 |
Measurement | Carrying | Fair Value | Gross | |||||||||||||||||||
$ in millions | Date | Amount | Level 1 | Level 2 | Level 3 | Loss | ||||||||||||||||
Long-lived assets (a) | ||||||||||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||||
Killen | December 31, 2016 | $ | 118.1 | $ | — | $ | — | $ | 42.8 | $ | 75.3 | |||||||||||
Stuart | December 31, 2016 | $ | 207.3 | $ | — | $ | — | $ | 57.4 | 149.9 | ||||||||||||
Miami Fort | December 31, 2016 | $ | 194.2 | $ | — | $ | — | $ | 36.5 | 157.7 | ||||||||||||
Zimmer | December 31, 2016 | $ | 115.0 | $ | — | $ | — | $ | 23.7 | 91.3 | ||||||||||||
Conesville | December 31, 2016 | $ | 21.9 | $ | — | $ | — | $ | 1.1 | 20.8 | ||||||||||||
Hutchings peaking facilities | December 31, 2016 | $ | 3.0 | $ | — | $ | — | $ | 1.6 | 1.4 | ||||||||||||
Stuart | June 30, 2016 | $ | 456.4 | $ | — | $ | — | $ | 164.4 | 292.0 | ||||||||||||
Killen | June 30, 2016 | $ | 330.5 | $ | — | $ | — | $ | 84.3 | 246.2 | ||||||||||||
Zimmer | June 30, 2016 | $ | 429.9 | $ | — | $ | — | $ | 111.0 | 318.9 | ||||||||||||
Total impairment loss | $ | 1,353.5 |
(a) | See Note |
$ in millions | Measurement date | Fair value | Valuation technique | Unobservable input | Range (weighted average) | |||||||
Long-lived assets held and used: | ||||||||||||
Year ended December 31, 2016 | ||||||||||||
Killen | December 31, 2016 | $ | 42.8 | Discounted cash flow | Annual revenue growth | -14.2% to 2.9% (-8.0%) | ||||||
Annual pre-tax operating margin | -56.6% to 42.4% (-15.5%) | |||||||||||
Weighted-average cost of capital | 10.0% | |||||||||||
$ in millions | Measurement date | Fair value | Valuation technique | Unobservable input | Range (weighted average) | |||||||
Long-lived assets held and used: | ||||||||||||
Year ended December 31, 2016 | ||||||||||||
Stuart | December 31, 2016 | $ | 57.4 | Discounted cash flow | Annual revenue growth | -11.9% to 1.1% (-4.7%) | ||||||
Annual pre-tax operating margin | -61.4% to 75.1% (8.0%) | |||||||||||
�� | Weighted-average cost of capital | 10.0% | ||||||||||
Miami Fort | December 31, 2016 | $ | 36.5 | Market value | Indicative offer price | |||||||
Zimmer | December 31, 2016 | $ | 23.7 | Market value | Indicative offer price | |||||||
Conesville | December 31, 2016 | $ | 1.1 | Discounted cash flow | Annual revenue growth | -19.3% to 10.9% (0.6%) | ||||||
Annual pre-tax operating margin | -54.3% to 99.4% (20.2%) | |||||||||||
Weighted-average cost of capital | N/A | |||||||||||
Hutchings peaking facilities | December 31, 2016 | $ | 1.6 | Discounted cash flow | Annual revenue growth | -19.5% to 25.9% (-0.7%) | ||||||
Annual pre-tax operating margin | -40.3% to 63.1% (12.1%) | |||||||||||
Weighted-average cost of capital | 7.0% | |||||||||||
Stuart | June 30, 2016 | $ | 164.4 | Discounted cash flow | Annual revenue growth | -9.0% to 10.0% (2.0%) | ||||||
Annual pre-tax operating margin | -29.0% to 52.0% (5.0%) | |||||||||||
Weighted-average cost of capital | 9.0% | |||||||||||
Killen | June 30, 2016 | $ | 84.3 | Discounted cash flow | Annual revenue growth | -11.0% to 13.0% (2.0%) | ||||||
Annual pre-tax operating margin | -50.0% to 67.0% (6.0%) | |||||||||||
Weighted-average cost of capital | 11.0% | |||||||||||
Zimmer | June 30, 2016 | $ | 111.0 | Discounted cash flow | Annual revenue growth | -14.0% to 13.0% (1.0%) | ||||||
Annual pre-tax operating margin | -46.0% to 80.0% (4.0%) | |||||||||||
Weighted-average cost of capital | 9.0% |
Commodity | Accounting Treatment | Unit | Purchases (in thousands) | Sales (in thousands) | Net Purchases/ (Sales) (in thousands) | ||||||||
FTRs | Not designated | MWh | 2.3 | — | 2.3 | ||||||||
Natural Gas | Not designated | Dths | 1,590.0 | — | 1,590.0 | ||||||||
Forward Power Contracts | Designated | MWh | 342.9 | (9,974.5 | ) | (9,631.6 | ) | ||||||
Forward Power Contracts | Not designated | MWh | 2,568.3 | (2,037.5 | ) | 530.8 | |||||||
Interest Rate Swaps | Designated | USD | 200,000.0 | — | 200,000.0 |
Commodity | Accounting Treatment | Unit | Purchases (in thousands) | Sales (in thousands) | Net Purchases/ (Sales) (in thousands) | ||||||||
FTRs | Not designated | MWh | 10.2 | — | 10.2 | ||||||||
Forward Power Contracts | Designated | MWh | 1,676.7 | (7,795.8 | ) | (6,119.1 | ) | ||||||
Forward Power Contracts | Not designated | MWh | 5,049.9 | (1,665.7 | ) | 3,384.2 |
Commodity | Accounting Treatment | Unit | Purchases (in thousands) | Sales (in thousands) | Net Purchases/ (Sales) (in thousands) | ||||||||
FTRs | Not designated | MWh | 10.5 | — | 10.5 | ||||||||
Heating Oil Futures | Not designated | Gallons | 378.0 | — | 378.0 | ||||||||
Natural Gas | Not designated | Dths | 200.0 | 200.0 | |||||||||
Forward Power Contracts | Designated | MWh | 175.0 | (2,991.0 | ) | (2,816.0 | ) | ||||||
Forward Power Contracts | Not designated | MWh | 1,725.2 | (2,804.0 | ) | (1,078.8 | ) |
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2015 | 2014 | 2014 | 2013 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||||||||||||
$ in millions (net of tax) | Power | Interest Rate Hedge | Power | Interest Rate Hedge | Power | Interest Rate Hedge | Power | Interest Rate Hedges | Power | Interest Rate Hedges | Power | Interest Rate Hedges | ||||||||||||||||||||||||||||||||||||
Beginning accumulated derivative gain / (loss) in AOCI | $ | 0.2 | $ | 2.6 | $ | 1.0 | $ | 5.2 | $ | (4.7 | ) | $ | 7.3 | |||||||||||||||||||||||||||||||||||
Beginning accumulated derivative gain in AOCI | $ | 9.2 | $ | 2.0 | $ | 0.2 | $ | 2.6 | $ | 1.0 | $ | 5.2 | ||||||||||||||||||||||||||||||||||||
Net gains / (losses) associated with current period hedging transactions | 18.2 | — | (18.8 | ) | — | 1.0 | — | 15.7 | 0.4 | 18.2 | — | (18.8 | ) | — | ||||||||||||||||||||||||||||||||||
Net gains / (losses) reclassified to earnings: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense | — | (0.6 | ) | — | (2.6 | ) | — | (2.1 | ) | — | (0.8 | ) | — | (0.6 | ) | — | (2.6 | ) | ||||||||||||||||||||||||||||||
Revenues | (12.0 | ) | — | 18.2 | — | 1.4 | — | (35.6 | ) | — | (12.0 | ) | — | 18.2 | — | |||||||||||||||||||||||||||||||||
Purchased Power | 2.8 | — | (0.2 | ) | — | 3.3 | — | 6.4 | — | 2.8 | — | (0.2 | ) | — | ||||||||||||||||||||||||||||||||||
Ending accumulated derivative gain in AOCI | $ | 9.2 | $ | 2.0 | $ | 0.2 | $ | 2.6 | $ | 1.0 | $ | 5.2 | ||||||||||||||||||||||||||||||||||||
Ending accumulated derivative gain / (loss) in AOCI | $ | (4.3 | ) | $ | 1.6 | $ | 9.2 | $ | 2.0 | $ | 0.2 | $ | 2.6 | |||||||||||||||||||||||||||||||||||
Net gains or losses associated with the ineffective portion of the hedging transactions were immaterial in the periods presented. | ||||||||||||||||||||||||||||||||||||||||||||||||
Portion expected to be reclassified to earnings in the next twelve months (a) | $ | 5.9 | $ | (0.6 | ) | $ | (3.5 | ) | $ | (0.8 | ) | |||||||||||||||||||||||||||||||||||||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 36 | — | 15 | 44 |
(a) | The actual amounts that we reclassify from AOCI to earnings related to power can differ from the estimate above due to market price changes. |
Year ended December 31, 2015 | Year ended December 31, 2016 | |||||||||||||||||||||||||||||||||||||||
$ in millions | Heating Oil | FTRs | Power | Natural Gas | Total | Heating Oil | FTRs | Power | Natural Gas | Total | Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Change in unrealized loss | $ | 0.4 | $ | 0.3 | $ | (6.3 | ) | $ | 0.1 | $ | (5.5 | ) | ||||||||||||||||||||||||||||
Change in unrealized gain / (loss) | $ | — | $ | 0.3 | $ | 3.9 | $ | — | $ | 4.2 | ||||||||||||||||||||||||||||||
Realized gain / (loss) | (0.3 | ) | (0.2 | ) | (9.9 | ) | (0.1 | ) | (10.5 | ) | — | (0.6 | ) | (7.9 | ) | 2.6 | (5.9 | ) | ||||||||||||||||||||||
Total | $ | 0.1 | $ | 0.1 | $ | (16.2 | ) | $ | — | $ | (16.0 | ) | $ | — | $ | (0.3 | ) | $ | (4.0 | ) | $ | 2.6 | $ | (1.7 | ) | |||||||||||||||
Recorded on Balance Sheet: | ||||||||||||||||||||||||||||||||||||||||
Regulatory asset | $ | 0.1 | $ | — | $ | — | $ | — | $ | 0.1 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Recorded in Income Statement: gain / (loss) | ||||||||||||||||||||||||||||||||||||||||
Recorded in Statement of Operations: gain / (loss) | Recorded in Statement of Operations: gain / (loss) | |||||||||||||||||||||||||||||||||||||||
Revenue | — | — | 27.4 | — | 27.4 | — | — | (18.1 | ) | — | (18.1 | ) | ||||||||||||||||||||||||||||
Purchased Power | — | 0.1 | (43.6 | ) | — | (43.5 | ) | — | (0.3 | ) | 14.1 | 2.6 | 16.4 | |||||||||||||||||||||||||||
Fuel | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total | $ | 0.1 | $ | 0.1 | $ | (16.2 | ) | $ | — | $ | (16.0 | ) | $ | — | $ | (0.3 | ) | $ | (4.0 | ) | $ | 2.6 | $ | (1.7 | ) |
Year ended December 31, 2014 | Year ended December 31, 2015 | |||||||||||||||||||||||||||||||||||||||
$ in millions | Heating Oil | FTRs | Power | Natural Gas | Total | Heating Oil | FTRs | Power | Natural Gas | Total | ||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||||||||
Change in unrealized gain / (loss) | $ | (0.6 | ) | $ | (0.8 | ) | $ | (1.5 | ) | $ | (0.1 | ) | $ | (3.0 | ) | $ | 0.4 | $ | 0.3 | $ | (6.3 | ) | $ | 0.1 | $ | (5.5 | ) | |||||||||||||
Realized gain / (loss) | (0.1 | ) | 0.7 | (3.0 | ) | (0.1 | ) | (2.5 | ) | (0.3 | ) | (0.2 | ) | (9.9 | ) | (0.1 | ) | (10.5 | ) | |||||||||||||||||||||
Total | $ | (0.7 | ) | $ | (0.1 | ) | $ | (4.5 | ) | $ | (0.2 | ) | $ | (5.5 | ) | $ | 0.1 | $ | 0.1 | $ | (16.2 | ) | $ | — | $ | (16.0 | ) | |||||||||||||
Recorded on Balance Sheet: | ||||||||||||||||||||||||||||||||||||||||
Regulatory asset | $ | (0.1 | ) | $ | — | $ | — | $ | — | $ | (0.1 | ) | $ | 0.1 | $ | — | $ | — | $ | — | $ | 0.1 | ||||||||||||||||||
Recorded in Income Statement: gain / (loss) | ||||||||||||||||||||||||||||||||||||||||
Recorded in Statement of Operations: gain / (loss) | Recorded in Statement of Operations: gain / (loss) | |||||||||||||||||||||||||||||||||||||||
Revenue | $ | — | $ | — | $ | 0.7 | $ | — | $ | 0.7 | — | — | 27.4 | — | 27.4 | |||||||||||||||||||||||||
Purchased Power | — | (0.1 | ) | (5.2 | ) | (0.2 | ) | (5.5 | ) | — | 0.1 | (43.6 | ) | — | (43.5 | ) | ||||||||||||||||||||||||
Fuel | (0.6 | ) | — | — | — | (0.6 | ) | |||||||||||||||||||||||||||||||||
Total | $ | (0.7 | ) | $ | (0.1 | ) | $ | (4.5 | ) | $ | (0.2 | ) | $ | (5.5 | ) | $ | 0.1 | $ | 0.1 | $ | (16.2 | ) | $ | — | $ | (16.0 | ) |
Year ended December 31, 2013 | Year ended December 31, 2014 | |||||||||||||||||||||||||||||||||||||||
$ in millions | NYMEX Coal | Heating Oil | FTRs | Power | Total | Heating Oil | FTRs | Power | Natural Gas | Total | ||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||||||||||||||
Change in unrealized gain / (loss) | $ | — | $ | — | $ | 0.3 | $ | (1.2 | ) | $ | (0.9 | ) | ||||||||||||||||||||||||||||
Change in unrealized loss | $ | (0.6 | ) | $ | (0.8 | ) | $ | (1.5 | ) | $ | (0.1 | ) | $ | (3.0 | ) | |||||||||||||||||||||||||
Realized gain / (loss) | — | 0.1 | 1.2 | 1.6 | 2.9 | (0.1 | ) | 0.7 | (3.0 | ) | (0.1 | ) | (2.5 | ) | ||||||||||||||||||||||||||
Total | $ | — | $ | 0.1 | $ | 1.5 | $ | 0.4 | $ | 2.0 | $ | (0.7 | ) | $ | (0.1 | ) | $ | (4.5 | ) | $ | (0.2 | ) | $ | (5.5 | ) | |||||||||||||||
Recorded on Balance Sheet: | ||||||||||||||||||||||||||||||||||||||||
Partners' share of gain | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||
Regulatory (asset) / liability | — | — | — | — | — | $ | (0.1 | ) | $ | — | $ | — | $ | — | $ | (0.1 | ) | |||||||||||||||||||||||
Recorded in Income Statement: gain / (loss) | ||||||||||||||||||||||||||||||||||||||||
Recorded in Statement of Operations: gain / (loss) | Recorded in Statement of Operations: gain / (loss) | |||||||||||||||||||||||||||||||||||||||
Revenue | — | — | — | 0.2 | 0.2 | — | — | 0.7 | — | 0.7 | ||||||||||||||||||||||||||||||
Fuel | (0.6 | ) | — | — | — | (0.6 | ) | |||||||||||||||||||||||||||||||||
Purchased Power | — | — | 1.5 | 0.2 | 1.7 | — | (0.1 | ) | (5.2 | ) | (0.2 | ) | (5.5 | ) | ||||||||||||||||||||||||||
Fuel | — | 0.1 | — | — | 0.1 | |||||||||||||||||||||||||||||||||||
O&M | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total | $ | — | $ | 0.1 | $ | 1.5 | $ | 0.4 | $ | 2.0 | $ | (0.7 | ) | $ | (0.1 | ) | $ | (4.5 | ) | $ | (0.2 | ) | $ | (5.5 | ) |
Fair Values of Derivative Instruments | ||||||||||||||||||||||||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||||||||||
December 31, 2016 | December 31, 2016 | |||||||||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Balance Sheets | Gross Amounts Not Offset in the Balance Sheets | |||||||||||||||||||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Balance Sheets | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | Hedging Designation | Gross Fair Value as presented in the Balance Sheets | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Short-term derivative positions (presented in Other current assets) | Short-term derivative positions (presented in Other current assets) | Short-term derivative positions (presented in Other current assets) | ||||||||||||||||||||||||||||||||||
Forward power contracts | Designated | $ | 16.2 | $ | (7.1 | ) | $ | — | $ | 9.1 | Designated | $ | 11.0 | $ | (10.5 | ) | $ | — | $ | 0.5 | ||||||||||||||||
Forward power contracts | Not designated | 7.4 | (5.5 | ) | — | 1.9 | Not designated | 6.0 | (4.7 | ) | — | 1.3 | ||||||||||||||||||||||||
FTRs | 0.2 | (0.2 | ) | — | — | Not designated | 0.1 | — | — | 0.1 | ||||||||||||||||||||||||||
Long-term derivative positions (presented in Other deferred assets) | Long-term derivative positions (presented in Other deferred assets) | Long-term derivative positions (presented in Other deferred assets) | ||||||||||||||||||||||||||||||||||
Forward power contracts | Designated | 3.0 | (2.4 | ) | — | 0.6 | Designated | 0.6 | (0.6 | ) | — | — | ||||||||||||||||||||||||
Interest Rate Swaps | Designated | 1.2 | — | — | 1.2 | |||||||||||||||||||||||||||||||
Forward power contracts | Not designated | 4.0 | (2.7 | ) | — | 1.3 | Not designated | 1.9 | (1.0 | ) | — | 0.9 | ||||||||||||||||||||||||
Total assets | $ | 30.8 | $ | (17.9 | ) | $ | — | $ | 12.9 | $ | 20.8 | $ | (16.8 | ) | $ | — | $ | 4.0 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Short-term derivative positions (presented in Other current liabilities) | Short-term derivative positions (presented in Other current liabilities) | Short-term derivative positions (presented in Other current liabilities) | ||||||||||||||||||||||||||||||||||
Forward power contracts | Designated | $ | 7.1 | $ | (7.1 | ) | $ | — | $ | — | Designated | $ | 16.4 | $ | (10.5 | ) | $ | (5.5 | ) | $ | 0.4 | |||||||||||||||
Interest Rate Swaps | Designated | 0.7 | — | — | 0.7 | |||||||||||||||||||||||||||||||
Forward power contracts | Not designated | 14.5 | (5.5 | ) | (8.0 | ) | 1.0 | Not designated | 7.7 | (4.7 | ) | — | 3.0 | |||||||||||||||||||||||
FTRs | Not designated | 0.5 | (0.2 | ) | — | 0.3 | Not designated | — | — | — | — | |||||||||||||||||||||||||
Long-term derivative positions (presented in Other deferred liabilities) | Long-term derivative positions (presented in Other deferred liabilities) | Long-term derivative positions (presented in Other deferred liabilities) | ||||||||||||||||||||||||||||||||||
Forward power contracts | Designated | 2.7 | (2.4 | ) | — | 0.3 | Designated | 2.4 | (0.6 | ) | (0.8 | ) | 1.0 | |||||||||||||||||||||||
Forward power contracts | Not designated | 2.7 | (2.7 | ) | — | — | Not designated | 2.0 | (1.0 | ) | — | 1.0 | ||||||||||||||||||||||||
Total liabilities | $ | 27.5 | $ | (17.9 | ) | $ | (8.0 | ) | $ | 1.6 | $ | 29.2 | $ | (16.8 | ) | $ | (6.3 | ) | $ | 6.1 |
(a) | Includes credit valuation adjustment. |
Fair Values of Derivative Instruments | ||||||||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||||||
December 31, 2015 | December 31, 2015 | |||||||||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Balance Sheets | Gross Amounts Not Offset in the Balance Sheets | |||||||||||||||||||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Balance Sheets | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | Hedging Designation | Gross Fair Value as presented in the Balance Sheets | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | ||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||
Short-term derivative positions (presented in Other current assets) | Short-term derivative positions (presented in Other current assets) | Short-term derivative positions (presented in Other current assets) | ||||||||||||||||||||||||||||||||||
Forward power contracts | Designated | $ | 5.6 | $ | (2.0 | ) | $ | — | $ | 3.6 | Designated | $ | 16.2 | $ | (7.1 | ) | $ | — | $ | 9.1 | ||||||||||||||||
Forward power contracts | Not designated | 5.6 | (3.4 | ) | — | 2.2 | Not designated | 7.4 | (5.5 | ) | — | 1.9 | ||||||||||||||||||||||||
FTRs | Not designated | — | — | — | — | Not designated | 0.2 | (0.2 | ) | — | — | |||||||||||||||||||||||||
Heating oil futures | Not designated | — | — | — | — | |||||||||||||||||||||||||||||||
Long-term derivative positions (presented in Other deferred assets) | Long-term derivative positions (presented in Other deferred assets) | Long-term derivative positions (presented in Other deferred assets) | ||||||||||||||||||||||||||||||||||
Forward power contracts | Designated | 0.3 | (0.3 | ) | — | — | Designated | 3.0 | (2.4 | ) | — | 0.6 | ||||||||||||||||||||||||
Forward power contracts | Not designated | 3.6 | (0.9 | ) | — | 2.7 | Not designated | 4.0 | (2.7 | ) | — | 1.3 | ||||||||||||||||||||||||
Total assets | $ | 15.1 | $ | (6.6 | ) | $ | — | $ | 8.5 | $ | 30.8 | $ | (17.9 | ) | $ | — | $ | 12.9 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||
Short-term derivative positions (presented in Other current liabilities) | Short-term derivative positions (presented in Other current liabilities) | Short-term derivative positions (presented in Other current liabilities) | ||||||||||||||||||||||||||||||||||
Forward power contracts | Designated | $ | 2.1 | $ | (2.0 | ) | $ | — | 0.1 | Designated | $ | 7.1 | $ | (7.1 | ) | $ | — | $ | — | |||||||||||||||||
Forward power contracts | Not designated | 7.5 | (3.4 | ) | (4.1 | ) | — | Not designated | 14.5 | (5.5 | ) | (8.0 | ) | 1.0 | ||||||||||||||||||||||
FTRs | Not designated | 0.6 | — | — | 0.6 | Not designated | 0.5 | (0.2 | ) | — | 0.3 | |||||||||||||||||||||||||
Heating oil futures | Not designated | 0.4 | — | (0.4 | ) | — | ||||||||||||||||||||||||||||||
Natural gas futures | Not designated | 0.1 | — | (0.1 | ) | — | ||||||||||||||||||||||||||||||
Long-term derivative positions (presented in Other deferred liabilities) | Long-term derivative positions (presented in Other deferred liabilities) | Long-term derivative positions (presented in Other deferred liabilities) | ||||||||||||||||||||||||||||||||||
Forward power contracts | Designated | 0.6 | (0.3 | ) | (0.3 | ) | — | Designated | 2.7 | (2.4 | ) | — | 0.3 | |||||||||||||||||||||||
Forward power contracts | Not designated | 1.0 | (0.9 | ) | — | 0.1 | Not designated | 2.7 | (2.7 | ) | — | — | ||||||||||||||||||||||||
Total liabilities | $ | 12.3 | $ | (6.6 | ) | $ | (4.9 | ) | $ | 0.8 | $ | 27.5 | $ | (17.9 | ) | $ | (8.0 | ) | $ | 1.6 |
(a) | Includes credit valuation adjustment. |
Long-term debt | ||||||||||||||||||||||||
$ in millions | Interest Rate | Maturity | December 31, 2015 | December 31, 2014 | Interest Rate | Maturity | December 31, 2016 | December 31, 2015 | ||||||||||||||||
First mortgage bonds | 1.875% | 2016 | $ | 445.0 | $ | 445.0 | ||||||||||||||||||
Pollution control series | 4.7% | 2028 | — | 35.3 | ||||||||||||||||||||
Pollution control series | 4.8% | 2034 | — | 179.1 | ||||||||||||||||||||
Pollution control series | 4.8% | 2036 | 100.0 | 100.0 | ||||||||||||||||||||
Pollution control series - rates from: 0.02% - 0.12% and 0.04% - 0.15% (a) | 2040 | — | 100.0 | |||||||||||||||||||||
Pollution control series - rates from: 1.13% - 1.17% | 2020 | 200.0 | — | |||||||||||||||||||||
Term loan - rates from: 4.00% - 4.01% (a) | 2022 | $ | 445.0 | $ | — | |||||||||||||||||||
First Mortgage Bonds | 1.875% | — | 445.0 | |||||||||||||||||||||
Tax-exempt First Mortgage Bonds | 4.8% | 2036 | 100.0 | 100.0 | ||||||||||||||||||||
Tax-exempt First Mortgage Bonds - rates from: 1.29% - 1.42% (a) and 1.13% - 1.17% (b) | 2020 | 200.0 | 200.0 | |||||||||||||||||||||
U.S. Government note | 4.2% | 2061 | 18.1 | 18.2 | 4.2% | 2061 | 18.0 | 18.1 | ||||||||||||||||
Capital leases | 0.4 | — | ||||||||||||||||||||||
Unamortized deferred financing costs | (11.8 | ) | (6.2 | ) | ||||||||||||||||||||
Unamortized debt discount | (0.2 | ) | (0.5 | ) | (2.2 | ) | (0.2 | ) | ||||||||||||||||
Subtotal | 762.9 | 877.1 | 749.4 | 756.7 | ||||||||||||||||||||
Less: current portion | (444.9 | ) | (0.1 | ) | (4.7 | ) | (443.1 | ) | ||||||||||||||||
Total | $ | 318.0 | $ | 877.0 | $ | 744.7 | $ | 313.6 |
(a) | Range of interest rates for the year ended December 31, 2016. |
(b) | Range of interest rates for the year ended December 31, 2015. |
Due within the twelve months ending December 31, | ||||||
Due during the years ending December 31, | ||||||
$ in millions | ||||||
2016 | $ | 445.1 | ||||
2017 | 0.1 | $ | 4.7 | |||
2018 | 0.1 | 4.6 | ||||
2019 | 0.2 | 4.6 | ||||
2020 | 200.2 | 204.6 | ||||
2021 | 4.5 | |||||
Thereafter | 117.4 | 540.0 | ||||
763.1 | 763.0 | |||||
Unamortized discount | (0.2 | ) | ||||
Unamortized discounts and premiums, net | (2.2 | ) | ||||
Total long-term debt | $ | 762.9 | $ | 760.8 |
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||
Computation of tax expense | ||||||||||||||||||||||||
Federal income tax expense (a) | $ | 49.3 | $ | 53.8 | $ | 35.5 | ||||||||||||||||||
Computation of tax expense / (benefit) | ||||||||||||||||||||||||
Federal income tax expense / (benefit) (a) | $ | (418.5 | ) | $ | 49.3 | $ | 53.8 | |||||||||||||||||
Increases (decreases) in tax resulting from: | ||||||||||||||||||||||||
State income taxes, net of federal effect | 0.4 | 1.2 | 0.3 | (5.0 | ) | 0.4 | 1.2 | |||||||||||||||||
Depreciation of AFUDC - Equity | (2.8 | ) | (2.7 | ) | (2.5 | ) | 3.3 | (2.8 | ) | (2.7 | ) | |||||||||||||
Investment tax credit amortized | (2.4 | ) | (2.5 | ) | (2.5 | ) | (2.3 | ) | (2.4 | ) | (2.5 | ) | ||||||||||||
Section 199 - domestic production deduction | (6.1 | ) | (4.6 | ) | (4.1 | ) | (5.3 | ) | (6.1 | ) | (4.6 | ) | ||||||||||||
Accrual (settlement) for open tax years | — | (6.6 | ) | (8.8 | ) | 3.4 | — | (6.6 | ) | |||||||||||||||
Other, net (b) | (3.3 | ) | 1.1 | 0.7 | 2.0 | (3.3 | ) | 1.1 | ||||||||||||||||
Total tax expense | $ | 35.1 | $ | 39.7 | $ | 18.6 | ||||||||||||||||||
Tax expense / (benefit) | $ | (422.4 | ) | $ | 35.1 | $ | 39.7 | |||||||||||||||||
Components of Tax Expense | ||||||||||||||||||||||||
Components of tax expense / (benefit) | ||||||||||||||||||||||||
Federal - current | $ | 55.8 | $ | 34.1 | $ | 38.6 | $ | 51.6 | $ | 55.8 | $ | 34.1 | ||||||||||||
State and Local - current | 0.8 | 0.5 | (0.1 | ) | 0.6 | 0.8 | 0.5 | |||||||||||||||||
Total current | 56.6 | 34.6 | 38.5 | 52.2 | 56.6 | 34.6 | ||||||||||||||||||
Federal - deferred | (21.0 | ) | 4.1 | (20.4 | ) | (466.3 | ) | (21.0 | ) | 4.1 | ||||||||||||||
State and local - deferred | (0.5 | ) | 1.0 | 0.5 | (8.3 | ) | (0.5 | ) | 1.0 | |||||||||||||||
Total deferred | (21.5 | ) | 5.1 | (19.9 | ) | (474.6 | ) | (21.5 | ) | 5.1 | ||||||||||||||
Total tax expense | $ | 35.1 | $ | 39.7 | $ | 18.6 | ||||||||||||||||||
Tax expense / (benefit) | $ | (422.4 | ) | $ | 35.1 | $ | 39.7 |
(a) | The statutory tax rate of 35% was applied to pre-tax earnings. |
(b) | Includes expense of $2.9 million, expense of $0.4 million and benefit of $0.7 million in the years ended December 31, 2016, 2015 and 2014, respectively, of income tax related to adjustments from prior years. |
Years ended December 31, | Years ended December 31, | |||||||||||||||||
2015 | 2014 | 2013 | 2016 | 2015 | 2014 | |||||||||||||
Statutory Federal tax rate | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | 35.0 | % | ||||||
State taxes, net of Federal tax benefit | 0.3 | % | 0.8 | % | 0.3 | % | 0.4 | % | 0.3 | % | 0.8 | % | ||||||
AFUDC - Equity | (2.0 | )% | (1.7 | )% | (2.4 | )% | (0.3 | )% | (2.0 | )% | (1.7 | )% | ||||||
Amortization of investment tax credits | (1.7 | )% | (1.6 | )% | (2.4 | )% | 0.2 | % | (1.7 | )% | (1.6 | )% | ||||||
Section 199 - domestic production deduction | (4.3 | )% | (3.0 | )% | (4.0 | )% | 0.4 | % | (4.3 | )% | (3.0 | )% | ||||||
Other - net | (2.5 | )% | (3.8 | )% | (8.3 | )% | (0.4 | )% | (2.5 | )% | (3.8 | )% | ||||||
Effective tax rate | 24.8 | % | 25.7 | % | 18.2 | % | 35.3 | % | 24.8 | % | 25.7 | % |
Components of Deferred Tax Assets and Liabilities | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
$ in millions | 2015 | 2014 | 2016 | 2015 | ||||||||||||
Net non-current Assets / (Liabilities) | ||||||||||||||||
Depreciation / property basis | $ | (608.8 | ) | $ | (618.8 | ) | $ | (129.8 | ) | $ | (608.8 | ) | ||||
Income taxes recoverable | (12.0 | ) | (14.8 | ) | (11.9 | ) | (12.0 | ) | ||||||||
Regulatory assets | (11.5 | ) | (18.0 | ) | (9.1 | ) | (11.5 | ) | ||||||||
Investment tax credit | 7.0 | 8.6 | 6.3 | 7.0 | ||||||||||||
Compensation and employee benefits | 3.6 | 5.2 | 1.1 | 3.6 | ||||||||||||
Other | (9.5 | ) | (12.2 | ) | (2.9 | ) | (9.5 | ) | ||||||||
Net non-current liabilities | $ | (631.2 | ) | $ | (650.0 | ) | $ | (146.3 | ) | $ | (631.2 | ) | ||||
Net current Assets / (Liabilities) (c) | ||||||||||||||||
Other | $ | — | $ | 0.5 | ||||||||||||
Net current assets / (liabilities) | $ | — | $ | 0.5 |
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||
Tax expense / (benefit) | $ | 7.5 | $ | (6.0 | ) | $ | 7.0 | $ | (7.0 | ) | $ | 7.5 | $ | (6.0 | ) |
$ in millions | ||||||
Balance at December 31, 2013 | $ | 8.8 | ||||
Calendar 2014 | ||||||
Tax positions taken during prior period | 2.8 | |||||
Lapse of Statute of Limitations | (8.6 | ) | ||||
Settlement with taxing authorities | — | |||||
Balance at December 31, 2014 | 3.0 | $ | 3.0 | |||
Calendar 2015 | ||||||
Tax positions taken during prior period | — | — | ||||
Lapse of Statute of Limitations | — | — | ||||
Balance at December 31, 2015 | $ | 3.0 | 3.0 | |||
Calendar 2016 | ||||||
Tax positions taken during prior period | 3.4 | |||||
Lapse of Statute of Limitations | (1.5 | ) | ||||
Balance at December 31, 2016 | $ | 4.9 |
$ in millions | Pension | |||||||
Years ended December 31, | ||||||||
2015 | 2014 | |||||||
Change in benefit obligation | ||||||||
Benefit obligation at beginning of period | $ | 443.8 | $ | 370.5 | ||||
Service cost | 7.1 | 5.9 | ||||||
Interest cost | 17.3 | 17.5 | ||||||
Plan amendments | — | 6.8 | ||||||
Actuarial (gain) / loss | (34.5 | ) | 67.3 | |||||
Benefits paid | (22.9 | ) | (24.2 | ) | ||||
Benefit obligation at end of period | 410.8 | 443.8 | ||||||
Change in plan assets | ||||||||
Fair value of plan assets at beginning of period | 371.7 | 349.1 | ||||||
Actual return on plan assets | (8.8 | ) | 46.4 | |||||
Contributions to plan assets | 5.4 | 0.4 | ||||||
Benefits paid | (22.9 | ) | (24.2 | ) | ||||
Fair value of plan assets at end of period | 345.4 | 371.7 | ||||||
Funded status of plan | $ | (65.4 | ) | $ | (72.1 | ) | ||
December 31, | ||||||||
2015 | 2014 | |||||||
Amounts recognized in the Balance sheets | ||||||||
Current liabilities | $ | (0.4 | ) | $ | (0.4 | ) | ||
Non-current liabilities | (65.0 | ) | (71.7 | ) | ||||
Net liability at Year ended December 31, | $ | (65.4 | ) | $ | (72.1 | ) | ||
Amounts recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | ||||||||
Components: | ||||||||
Prior service cost | $ | 17.0 | $ | 20.3 | ||||
Net actuarial loss / (gain) | 139.7 | 152.5 | ||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | 156.7 | $ | 172.8 | ||||
Recorded as: | ||||||||
Regulatory asset | $ | 91.1 | $ | 99.0 | ||||
Regulatory liability | — | — | ||||||
Accumulated other comprehensive income | 65.6 | 73.8 | ||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | 156.7 | $ | 172.8 |
$ in millions | Postretirement | Pension | ||||||||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||
2015 | 2014 | 2016 | 2015 | |||||||||||||
Change in benefit obligation | ||||||||||||||||
Benefit obligation at beginning of period | $ | 19.6 | $ | 19.7 | ||||||||||||
Benefit obligation at January 1 | $ | 410.8 | $ | 443.8 | ||||||||||||
Service cost | 0.2 | 0.2 | 5.7 | 7.1 | ||||||||||||
Interest cost | 0.6 | 0.8 | 14.7 | 17.3 | ||||||||||||
Plan curtailment | 2.5 | — | ||||||||||||||
Actuarial (gain) / loss | (1.1 | ) | 0.2 | 9.0 | (34.5 | ) | ||||||||||
Benefits paid | (1.5 | ) | (1.3 | ) | (23.1 | ) | (22.9 | ) | ||||||||
Benefit obligation at end of period | 17.8 | 19.6 | ||||||||||||||
Benefit obligation at December 31 | 419.6 | 410.8 | ||||||||||||||
Change in plan assets | ||||||||||||||||
Fair value of plan assets at beginning of period | 3.3 | 3.7 | ||||||||||||||
Contributions to plan assets | 1.0 | 0.9 | ||||||||||||||
Fair value of plan assets at January 1 | 345.4 | 371.7 | ||||||||||||||
Actual return on plan assets | 13.3 | (8.8 | ) | |||||||||||||
Employer contributions | 5.4 | 5.4 | ||||||||||||||
Benefits paid | (1.5 | ) | (1.3 | ) | (23.1 | ) | (22.9 | ) | ||||||||
Fair value of plan assets at end of period | 2.8 | 3.3 | ||||||||||||||
Fair value of plan assets at December 31 | 341.0 | 345.4 | ||||||||||||||
Funded status of plan | $ | (15.0 | ) | $ | (16.3 | ) | $ | (78.6 | ) | $ | (65.4 | ) | ||||
December 31, | ||||||||||||||||
2015 | 2014 | December 31, | ||||||||||||||
Amounts recognized in the Balance sheets | 2016 | 2015 | ||||||||||||||
Current liabilities | $ | (0.4 | ) | $ | (0.5 | ) | $ | (0.4 | ) | $ | (0.4 | ) | ||||
Non-current liabilities | (14.6 | ) | (15.8 | ) | (78.2 | ) | (65.0 | ) | ||||||||
Net liability at Year ended December 31, | $ | (15.0 | ) | $ | (16.3 | ) | ||||||||||
Net liability | $ | (78.6 | ) | $ | (65.4 | ) | ||||||||||
Amounts recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | ||||||||||||||||
Components: | ||||||||||||||||
Prior service cost | $ | 0.5 | $ | 0.6 | $ | 10.8 | $ | 17.0 | ||||||||
Net actuarial loss / (gain) | (6.2 | ) | (5.8 | ) | ||||||||||||
Net actuarial loss | 150.9 | 139.7 | ||||||||||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | (5.7 | ) | $ | (5.2 | ) | $ | 161.7 | $ | 156.7 | ||||||
Recorded as: | ||||||||||||||||
Regulatory asset | $ | 0.3 | $ | — | $ | 97.1 | $ | 91.1 | ||||||||
Regulatory liability | (5.1 | ) | (4.5 | ) | ||||||||||||
Accumulated other comprehensive income | (0.9 | ) | (0.7 | ) | 64.6 | 65.6 | ||||||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | (5.7 | ) | $ | (5.2 | ) | $ | 161.7 | $ | 156.7 |
Net Periodic Benefit Cost - Pension | ||||||||||||
Years ended December 31, | ||||||||||||
$ in millions | 2015 | 2014 | 2013 | |||||||||
Service cost | $ | 7.1 | $ | 5.9 | $ | 7.2 | ||||||
Interest cost | 17.3 | 17.5 | 15.6 | |||||||||
Expected return on assets (a) | (22.6 | ) | (22.9 | ) | (23.6 | ) | ||||||
Amortization of unrecognized: | ||||||||||||
Actuarial gain | 9.8 | 6.4 | 9.3 | |||||||||
Prior service cost | 3.3 | 2.8 | 2.8 | |||||||||
Net periodic benefit cost | $ | 14.9 | $ | 9.7 | $ | 11.3 |
Net Periodic Benefit Cost - Postretirement | ||||||||||||||||||||||||
Net Periodic Benefit Cost | ||||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 5.7 | $ | 7.1 | $ | 5.9 | ||||||||||||
Interest cost | 0.6 | 0.8 | 0.8 | 14.7 | 17.3 | 17.5 | ||||||||||||||||||
Expected return on assets | (0.1 | ) | (0.2 | ) | (0.2 | ) | (22.8 | ) | (22.6 | ) | (22.9 | ) | ||||||||||||
Plan curtailment | 5.7 | — | — | |||||||||||||||||||||
Amortization of unrecognized: | ||||||||||||||||||||||||
Actuarial loss | (0.6 | ) | (0.8 | ) | (0.7 | ) | 7.2 | 9.8 | 6.4 | |||||||||||||||
Prior service cost | 0.1 | 0.1 | 0.1 | 3.0 | 3.3 | 2.8 | ||||||||||||||||||
Net periodic benefit cost | $ | 0.2 | $ | 0.1 | $ | 0.2 | $ | 13.5 | $ | 14.9 | $ | 9.7 | ||||||||||||
Rates relevant to each year's expense calculations | ||||||||||||||||||||||||
Discount rate | 4.49 | % | 4.02 | % | 4.86 | % | ||||||||||||||||||
Expected return on plan assets | 6.50 | % | 6.50 | % | 6.75 | % |
Pension | ||||||||||||
Years ended December 31, | ||||||||||||
$ in millions | 2015 | 2014 | 2013 | |||||||||
Net actuarial loss / (gain) | $ | (3.0 | ) | $ | 43.8 | $ | (11.7 | ) | ||||
Prior service cost | — | 6.8 | — | |||||||||
Reversal of amortization item: | ||||||||||||
Net actuarial loss | (9.8 | ) | (6.4 | ) | (9.3 | ) | ||||||
Prior service cost | (3.3 | ) | (2.8 | ) | (2.8 | ) | ||||||
Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | (16.1 | ) | $ | 41.4 | $ | (23.8 | ) | ||||
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | (1.2 | ) | $ | 51.1 | $ | (12.5 | ) |
Postretirement | ||||||||||||||||||||||||
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||
Net actuarial loss / (gain) | $ | (1.1 | ) | $ | 0.4 | $ | (1.9 | ) | $ | 20.9 | $ | (3.0 | ) | $ | 43.8 | |||||||||
Prior service cost | — | — | 6.8 | |||||||||||||||||||||
Plan curtailment | (5.7 | ) | — | — | ||||||||||||||||||||
Reversal of amortization item: | ||||||||||||||||||||||||
Net actuarial gain | 0.6 | 0.8 | 0.7 | |||||||||||||||||||||
Prior service credit | (0.1 | ) | (0.1 | ) | (0.1 | ) | ||||||||||||||||||
Net actuarial loss | (7.2 | ) | (9.8 | ) | (6.4 | ) | ||||||||||||||||||
Prior service cost | (3.0 | ) | (3.3 | ) | (2.8 | ) | ||||||||||||||||||
Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | (0.6 | ) | $ | 1.1 | $ | (1.3 | ) | $ | 5.0 | $ | (16.1 | ) | $ | 41.4 | |||||||||
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | (0.4 | ) | $ | 1.2 | $ | (1.1 | ) | $ | 18.5 | $ | (1.2 | ) | $ | 51.1 |
$ in millions | Pension | Postretirement | Pension | |||||||||
Actuarial gain / (loss) | $ | 7.2 | $ | (0.8 | ) | |||||||
Actuarial loss | $ | 9.7 | ||||||||||
Prior service cost | $ | 3.1 | $ | 0.1 | $ | 1.9 |
Benefit Obligation Assumptions | Pension | Postretirement | ||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||
Discount rate for obligations | 4.49% | 4.02% | 4.86% | 4.10% | 3.71% | 4.58% | ||||||
Rate of compensation increases | 3.94% | 3.94% | 3.94% | N/A | N/A | N/A |
Net Periodic Benefit Cost / (Income) Assumptions | Pension | Postretirement | ||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||
Discount rate | 4.02% | 4.86% | 4.04% | 3.81% | 4.51% | 4.58% | ||||||
Expected rate of return on plan assets | 6.50% | 6.75% | 6.75% | 4.50% | 6.00% | 6.00% | ||||||
Rate of compensation increases | 3.94% | 3.94% | 3.94% | N/A | N/A | N/A |
Health Care Cost Assumptions | Expense | Benefit Obligation | ||||||||||
2015 | 2014 | 2013 | 2015 | 2014 | 2013 | |||||||
Pre - age 65 | ||||||||||||
Current health care cost trend rate | 6.97% | 7.75% | 8.00% | 6.85% | 6.97% | 7.75% | ||||||
Year trend reaches ultimate | 2029 | 2023 | 2019 | 2036 | 2029 | 2023 | ||||||
Post - age 65 | ||||||||||||
Current health care cost trend rate | 6.97% | 6.75% | 7.50% | 6.85% | 6.97% | 6.75% | ||||||
Year trend reaches ultimate | 2029 | 2021 | 2018 | 2036 | 2029 | 2021 | ||||||
Ultimate health care cost trend rate | 4.50% | 5.00% | 5.00% | 4.50% | 4.50% | 5.00% |
Effect of change in health care cost trend rate | ||||||||
$ in millions | One-percent increase | One-percent decrease | ||||||
Service cost plus interest cost | $ | 0.1 | $ | — | ||||
Benefit obligation | $ | 1.1 | $ | (0.7 | ) |
Benefit Obligation Assumptions | Pension | |||||
2016 | 2015 | 2014 | ||||
Discount rate for obligations | 4.28% | 4.49% | 4.02% | |||
Rate of compensation increases | 3.94% | 3.94% | 3.94% |
Percentage of plan assets as of December 31, | Long-Term Mid-Point Target Allocation | Percentage of plan assets as of December 31, | ||||||||||
Asset Category | Long-Term Mid-Point Target Allocation | 2015 | 2014 | 2016 | 2015 | |||||||
Equity Securities | 28% | 17% | 18% | 38% | 37% | 17% | ||||||
Debt Securities | 72% | 67% | 69% | 56% | 53% | 67% | ||||||
Real Estate | —% | 9% | 7% | 6% | 10% | 9% | ||||||
Other | —% | 7% | 6% | —% | —% | 7% |
Fair Value Measurements for Pension Plan Assets at December 31, 2015 | ||||||||||||||||
Asset Category $ in millions | Market Value at December 31, 2015 | Quoted prices in active markets for identical assets | Significant observable inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Equity securities (a) | ||||||||||||||||
Small/Mid cap equity | $ | 9.2 | $ | 9.2 | $ | — | $ | — | ||||||||
Large cap equity | 20.2 | 20.2 | — | — | ||||||||||||
International equity | 18.2 | 18.2 | — | — | ||||||||||||
Emerging markets equity | 2.7 | 2.7 | — | — | ||||||||||||
SIIT dynamic equity | 10.0 | 10.0 | — | — | ||||||||||||
Total equity securities | 60.3 | 60.3 | — | — | ||||||||||||
Debt Securities (b) | ||||||||||||||||
Emerging markets debt | 6.3 | 6.3 | — | — | ||||||||||||
High yield bond | 6.3 | 6.3 | — | — | ||||||||||||
Long duration fund | 219.5 | 219.5 | — | — | ||||||||||||
Total debt securities | 232.1 | 232.1 | — | — | ||||||||||||
Other investments (c) | ||||||||||||||||
Core property collective fund | 30.2 | — | 30.2 | — | ||||||||||||
Common collective fund | 22.8 | — | 22.8 | — | ||||||||||||
Total other investments | 53.0 | — | 53.0 | — | ||||||||||||
Total pension plan assets | $ | 345.4 | $ | 292.4 | $ | 53.0 | $ | — |
Fair Value Measurements for Pension Plan Assets at December 31, 2016 | ||||||||||||||||
Asset Category $ in millions | Market Value at December 31, 2016 | Quoted prices in active markets for identical assets | Significant observable inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Mutual funds: | ||||||||||||||||
U.S. equities (a) | $ | 81.4 | $ | 81.4 | $ | — | $ | — | ||||||||
International equities (a) | 44.4 | 44.4 | — | — | ||||||||||||
Fixed income (b) | 151.1 | 151.1 | — | — | ||||||||||||
Fixed income securities | ||||||||||||||||
U.S. Treasury securities | 31.0 | 31.0 | — | — | ||||||||||||
Other investments: | ||||||||||||||||
Core property collective fund (c) | 33.1 | — | 33.1 | — | ||||||||||||
Total pension plan assets | $ | 341.0 | $ | 307.9 | $ | 33.1 | $ | — |
(a) | This category includes investments in equity securities of large, small and medium sized U.S. companies and equity securities of foreign companies including those in developing countries. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. |
(b) | This category includes investments in investment-grade fixed-income instruments, U.S. dollar-denominated debt securities of emerging market issuers and high yield fixed-income securities that are rated below investment grade. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. |
(c) | This category represents a property fund that invests in commercial real |
Fair Value Measurements for Pension Plan Assets at December 31, 2014 | ||||||||||||||||
Asset Category $ in millions | Market Value at December 31, 2014 | Quoted prices in active markets for identical assets | Significant observable inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Equity securities (a) | ||||||||||||||||
Small/Mid cap equity | $ | 10.6 | $ | 10.6 | $ | — | $ | — | ||||||||
Large cap equity | 22.2 | 22.2 | — | — | ||||||||||||
International equity | 18.2 | 18.2 | — | — | ||||||||||||
Emerging markets equity | 2.8 | 2.8 | — | — | ||||||||||||
SIIT dynamic equity | 11.6 | 11.6 | — | — | ||||||||||||
Total equity securities | 65.4 | 65.4 | — | — | ||||||||||||
Debt Securities (b) | ||||||||||||||||
Emerging markets debt | 6.0 | 6.0 | — | — | ||||||||||||
High yield bond | 6.5 | 6.5 | — | — | ||||||||||||
Long duration fund | 242.7 | 242.7 | — | — | ||||||||||||
Total debt securities | 255.2 | 255.2 | — | — | ||||||||||||
Cash and cash equivalents (c) | ||||||||||||||||
Cash | 1.6 | 1.6 | — | — | ||||||||||||
Other investments (d) | ||||||||||||||||
Core property collective fund | 26.3 | — | 26.3 | — | ||||||||||||
Common collective fund | 23.2 | — | 23.2 | — | ||||||||||||
Total other investments | 49.5 | — | 49.5 | — | ||||||||||||
Total pension plan assets | $ | 371.7 | $ | 322.2 | $ | 49.5 | $ | — |
Fair Value Measurements for Pension Plan Assets at December 31, 2015 | ||||||||||||||||
Asset Category $ in millions | Market Value at December 31, 2015 | Quoted prices in active markets for identical assets | Significant observable inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
Mutual funds: | ||||||||||||||||
U.S. equities (a) | $ | 39.4 | $ | 39.4 | $ | — | $ | — | ||||||||
International equities (a) | 20.9 | 20.9 | — | — | ||||||||||||
Fixed income (b) | 232.1 | 232.1 | — | — | ||||||||||||
Other investments: (c) | ||||||||||||||||
Core property collective fund | 30.2 | — | 30.2 | — | ||||||||||||
Common collective fund | 22.8 | — | 22.8 | — | ||||||||||||
Total pension plan assets | $ | 345.4 | $ | 292.4 | $ | 53.0 | $ | — |
(a) | This category includes investments in equity securities of large, small and medium sized U.S. companies and equity securities of foreign companies including those in developing countries. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. |
(b) | This category includes investments in investment-grade fixed-income instruments, U.S. dollar-denominated debt securities of emerging market issuers and high yield fixed-income securities that are rated below investment grade. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. |
(c) |
This category represents a property fund that invests in commercial real estate and a hedge fund of funds made up of 30+ different hedge fund managers diversified over eight different hedge strategies. The fair value of the hedge fund is valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. |
Fair Value Measurements for Other Postemployment Benefit Plan Assets at December 31, 2015 | ||||||||||||||||
Asset Category $ in millions | Fair Value at December 31, 2015 (a) | Quoted prices in active markets for identical assets | Significant observable inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
JP Morgan Core Bond Fund (a) | $ | 2.8 | $ | 2.8 | $ | — | $ | — |
Fair Value Measurements for Other Postemployment Benefit Plan Assets at December 31, 2014 | ||||||||||||||||
Asset Category $ in millions | Fair Value at December 31, 2014 (a) | Quoted prices in active markets for identical assets | Significant observable inputs | Significant unobservable inputs | ||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||
JP Morgan Core Bond Fund (a) | $ | 3.2 | $ | 3.2 | $ | — | $ | — |
Estimated future benefit payments and Medicare Part D reimbursements | ||||||||||||
Estimated future benefit payments | ||||||||||||
$ in millions due within the following years: | Pension | Postretirement | Pension | |||||||||
2016 | $ | 24.6 | $ | 1.7 | ||||||||
2017 | $ | 25.2 | $ | 1.6 | $ | 25.0 | ||||||
2018 | $ | 25.8 | $ | 1.5 | $ | 25.5 | ||||||
2019 | $ | 26.3 | $ | 1.4 | $ | 26.0 | ||||||
2020 | $ | 26.7 | $ | 1.4 | $ | 26.4 | ||||||
2021 - 2025 | $ | 134.8 | $ | 5.7 | ||||||||
2021 | $ | 26.7 | ||||||||||
2022 - 2026 | $ | 139.6 |
December 31, 2015 and 2014 | Par Value ($ in millions) | Par Value ($ in millions) | ||||||||||||||||||||||||||||||||
Preferred Stock Rate | Redemption price ($ per share) | Shares Outstanding | December 31, 2015 | December 31, 2014 | Preferred Stock Rate | Redemption price ($ per share) | Shares Outstanding (a) | December 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||
DP&L Series A | 3.75% | $ | 102.50 | 93,280 | $ | 9.3 | $ | 9.3 | 3.75% | $ | 102.50 | 93,280 | $ | — | $ | 9.3 | ||||||||||||||||||
DP&L Series B | 3.75% | $ | 103.00 | 69,398 | 7.0 | 7.0 | 3.75% | $ | 103.00 | 69,398 | — | 7.0 | ||||||||||||||||||||||
DP&L Series C | 3.90% | $ | 101.00 | 65,830 | 6.6 | 6.6 | 3.90% | $ | 101.00 | 65,830 | — | 6.6 | ||||||||||||||||||||||
Total | 228,508 | $ | 22.9 | $ | 22.9 | 228,508 | $ | — | $ | 22.9 |
(a) | DP&L's preferred stock was redeemed in October 2016. See below for more information. |
Payments due in: | Payments due in: | ||||||||||||||||||||||||||||||||||
$ in millions | Total | Less than 1 year | 2 - 3 years | 4 - 5 years | More than 5 years | Total | Less than 1 year | 2 - 3 years | 4 - 5 years | More than 5 years | |||||||||||||||||||||||||
DP&L: | |||||||||||||||||||||||||||||||||||
Coal contracts (a) | 374.2 | 186.9 | 187.3 | — | — | ||||||||||||||||||||||||||||||
Coal and limestone contracts (a) | $ | 284.3 | $ | 230.3 | $ | 54.0 | $ | — | $ | — | |||||||||||||||||||||||||
Purchase orders and other contractual obligations | 83.8 | 24.4 | 30.0 | 29.4 | — | $ | 109.8 | $ | 43.1 | $ | 33.6 | $ | 33.1 | $ | — |
(a) | Total at DP&L operated units. |
• | Rules and future rules issued by the USEPA and the Ohio EPA that require substantial reductions in SO2, particulates, mercury, acid gases, NOX, and other air emissions. DP&L has installed emission control technology and is taking other measures to comply with required and anticipated reductions, |
Years ended December 31, | Years ended December 31, | |||||||||||||||||||||||
$ in millions | 2015 | 2014 | 2013 | 2016 | 2015 | 2014 | ||||||||||||||||||
DP&L revenues: | ||||||||||||||||||||||||
Sales to DPLER (including MC Squared) (a) | $ | 303.3 | $ | 487.1 | $ | 453.9 | $ | — | $ | 303.3 | $ | 487.1 | ||||||||||||
DP&L Operation & Maintenance Expenses: | ||||||||||||||||||||||||
Premiums paid for insurance services provided by MVIC (b) | $ | (3.2 | ) | $ | (2.9 | ) | $ | (2.9 | ) | $ | (3.4 | ) | $ | (3.2 | ) | $ | (2.9 | ) | ||||||
Expense recoveries for services provided to DPLER (c) | $ | 2.4 | $ | 2.2 | $ | 5.2 | $ | — | $ | 2.4 | $ | 2.2 | ||||||||||||
Transactions with the Service Company: | ||||||||||||||||||||||||
Charges for services provided | $ | 30.9 | $ | 30.5 | $ | — | $ | 38.7 | $ | 30.9 | $ | 30.5 | ||||||||||||
Charges to the Service Company | $ | 6.1 | $ | 2.3 | $ | — | $ | 4.5 | $ | 6.1 | $ | 2.3 | ||||||||||||
Transactions with other AES affiliates: | ||||||||||||||||||||||||
Payments for health, welfare and benefit plans | $ | 9.4 | $ | 14.8 | $ | 17.1 | ||||||||||||||||||
Balances with related parties: | At December 31, 2015 | At December 31, 2014 | At December 31, 2016 | At December 31, 2015 | ||||||||||||||||||||
Net payable to the Service Company | $ | (0.5 | ) | $ | (4.7 | ) | $ | (2.0 | ) | $ | (0.5 | ) | ||||||||||||
Short-term loan with DPL Inc. | $ | 35.0 | $ | — | ||||||||||||||||||||
Deposits received from DPLER (d) | $ | — | $ | 20.1 | ||||||||||||||||||||
Short-term loan with DPL | $ | 5.0 | $ | 35.0 | ||||||||||||||||||||
Net prepayment with / (payable) to other AES affiliates | $ | (2.5 | ) | $ | 0.1 |
(a) | DP&L sold power to DPLER and MC Squared to satisfy the electric requirements of their retail customers. The revenue dollars associated with sales to DPLER and MC Squared are recorded as wholesale revenues in DP&L’s Financial Statements. These agreements were terminated on the sale of DPLER on January 1, 2016. |
(b) | MVIC, a wholly-owned captive insurance subsidiary of DPL, provides insurance coverage to DP&L and other DPL subsidiaries for workers’ compensation, general liability, property damages and directors’ and officers’ liability. These amounts represent insurance premiums paid by DP&L to MVIC. |
(c) | In the normal course of business DP&L |
Years ended December 31, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
East Bend | $ | — | $ | — | $ | 76.0 | ||||||
Conesville | — | — | 10.0 | |||||||||
Total fixed-asset impairment expense | $ | — | $ | — | $ | 86.0 |
$ in millions | T&D | Generation | Adjustments and Eliminations | DP&L Total | ||||||||||||
Year ended December 31, 2016 | ||||||||||||||||
Revenues from external customers | $ | 808.0 | $ | 557.9 | $ | — | $ | 1,365.9 | ||||||||
Intersegment revenues | — | — | — | — | ||||||||||||
Total revenues | $ | 808.0 | $ | 557.9 | $ | — | $ | 1,365.9 | ||||||||
Depreciation and amortization | $ | 71.0 | $ | 49.3 | $ | — | $ | 120.3 | ||||||||
Fixed-asset impairment (Note 14) | $ | — | $ | 1,353.5 | $ | — | $ | 1,353.5 | ||||||||
Interest expense | $ | 24.0 | $ | 0.5 | $ | — | $ | 24.5 | ||||||||
Income / (loss) from operations before income tax | $ | 143.6 | $ | (1,338.7 | ) | $ | — | $ | (1,195.1 | ) | ||||||
Cash capital expenditures | $ | 83.4 | $ | 44.9 | $ | — | $ | 128.3 | ||||||||
Total assets (end of year) | $ | 1,710.5 | $ | 324.6 | $ | — | $ | 2,035.1 |
$ in millions | T&D | Generation | Adjustments and Eliminations | DP&L Total | ||||||||||||
Year ended December 31, 2015 | ||||||||||||||||
Revenues from external customers (a) | $ | 857.0 | $ | 715.0 | $ | (19.7 | ) | $ | 1,552.3 | |||||||
Intersegment revenues | — | 186.6 | (186.6 | ) | — | |||||||||||
Total revenues | $ | 857.0 | $ | 901.6 | $ | (206.3 | ) | $ | 1,552.3 | |||||||
Depreciation and amortization | $ | 71.5 | $ | 66.7 | $ | — | $ | 138.2 | ||||||||
Interest expense | $ | 28.0 | $ | 2.9 | $ | — | $ | 30.9 | ||||||||
Income / (loss) from operations before income tax | $ | 189.0 | $ | (47.5 | ) | $ | — | $ | 141.5 | |||||||
Cash capital expenditures | $ | 98.3 | $ | 28.7 | $ | — | $ | 127.0 | ||||||||
Total assets (end of year) | $ | 1,688.8 | $ | 1,670.8 | $ | — | $ | 3,359.6 |
(a) | Wholesale revenue for the T&D segment in 2015 includes OVEC revenue of $19.7 million that was previously netted in purchased power. The impact of this netting adjustment is included in the Adjustments and Eliminations column in the table above but has no impact on consolidated revenues or Income / (loss) from continuing operations before income tax. |
$ in millions | T&D | Generation | Adjustments and Eliminations | DP&L Total | ||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Revenues from external customers (a) | $ | 1,021.8 | $ | 679.0 | $ | (32.5 | ) | $ | 1,668.3 | |||||||
Intersegment revenues | — | 72.8 | (72.8 | ) | — | |||||||||||
Total revenues | $ | 1,021.8 | $ | 751.8 | $ | (105.3 | ) | $ | 1,668.3 | |||||||
Depreciation and amortization | $ | 75.5 | $ | 69.3 | $ | — | $ | 144.8 | ||||||||
Interest expense | $ | 28.9 | $ | 5.0 | $ | — | $ | 33.9 | ||||||||
Income / (loss) from operations before income tax | $ | 242.6 | $ | (87.9 | ) | $ | — | $ | 154.7 | |||||||
Cash capital expenditures | $ | 100.4 | $ | 13.8 | $ | — | $ | 114.2 | ||||||||
Total assets (end of year) | $ | 1,686.1 | $ | 1,642.7 | $ | — | $ | 3,328.8 |
(a) | Wholesale revenue for 2014 was not restated for the impact of netting between wholesale revenue and purchased power for the Generation segment because it was impracticable to restate. This impacts the Generation revenue as well as the revenue in the Adjustments and Eliminations column in the table above but has no impact on consolidated revenues or Income / (loss) from continuing operations before income tax. In addition, wholesale revenue for the T&D segment in 2014 includes OVEC revenue of $32.5 million that was previously netted in purchased power. The impact of this netting adjustment is included in the Adjustments and Eliminations column in the table above but has no impact on consolidated revenues or Income / (loss) from continuing operations before income tax. |
Years ended December 31, | ||||||||||||||
Measurement Date | 2016 | 2015 | 2014 | |||||||||||
Killen | December 31, 2016 | $ | 75.3 | $ | — | $ | — | |||||||
Stuart | December 31, 2016 | 149.9 | — | — | ||||||||||
Miami Fort | December 31, 2016 | 157.7 | — | — | ||||||||||
Zimmer | December 31, 2016 | 91.3 | — | — | ||||||||||
Conesville | December 31, 2016 | 20.8 | — | — | ||||||||||
Hutchings peaking facilities | December 31, 2016 | 1.4 | — | — | ||||||||||
Stuart | June 30, 2016 | 292.0 | — | — | ||||||||||
Killen | June 30, 2016 | 246.2 | — | — | ||||||||||
Zimmer | June 30, 2016 | 318.9 | — | — | ||||||||||
Total impairment loss | $ | 1,353.5 | $ | — | $ | — |
Fees billed | ||||||||
Years ended December 31, | ||||||||
2016 | 2015 | |||||||
Audit fees (a) | $ | 1,849,450 | $ | 1,649,045 | ||||
Audit-related Fees (b) | 112,900 | 145,450 | ||||||
Tax Fees | — | — | ||||||
All Other Fees | — | — | ||||||
Total | $ | 1,962,350 | $ | 1,794,495 |
(a) | Audit fees relate to professional services rendered for the audit of our annual financial statements and the reviews of our quarterly financial statements and other services that are normally provided in connection with regulatory filing or engagements and services rendered under an agreed upon procedure engagement related to environmental studies. |
(b) | Audit-related fees relate to services rendered to us for assurance and related services. |
The following documents are filed as part of this report: | |
1. Financial Statements | |
DPL – Report of Independent Registered Public Accounting Firms | |
DPL – Consolidated Statements of Operations for each of the three years in the period ended December 31, | |
DPL – Consolidated Statements of Other Comprehensive Loss for each of the three years in the period ended December 31, | |
DPL – Consolidated Balance Sheets at December 31, | |
DPL – Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, | |
DPL – Consolidated | |
DPL – Notes to Consolidated Financial Statements | |
DP&L – Report of Independent Registered Public Accounting Firm | |
DP&L – Statements of Operations for each of the three years in the period ended December 31, | |
DP&L – | |
DP&L – Balance Sheets at December 31, | |
DP&L – Statements of Cash Flows for each of the three years in the period ended December 31, | |
DP&L – | |
DP&L – Notes to Financial Statements | |
2. Financial Statement Schedules | |
Schedule II – Valuation and Qualifying Accounts for each of the three years in the period ended December 31, 2016 | |
The information required to be submitted in Schedules I, III, IV and V is omitted as not applicable or not required under rules of Regulation S-X. |
DPL | DP&L | Exhibit Number | Exhibit | Location |
X | 2(a) | Agreement and Plan of Merger, dated as of April 19, 2011, by and among DPL Inc., The AES Corporation and Dolphin Sub, Inc. | Exhibit 2.1 to Report on Form 8-K filed April 20, 2011 (File No. 1-9052) | |
X | 3(a) | Amended Articles of Incorporation of DPL Inc., as amended through January 6, 2012 | Exhibit 3(a) to Report on Form 10-K for the year ended December 31, 2011 (File No. 1-2385) | |
X | 3(b) | Amended Regulations of DPL Inc., as amended through November 28, 2011 | Exhibit 3.2 to Report on Form 8-K filed November 28, 2011 (File No. 1-9052) | |
X | 3(c) | Amended Articles of Incorporation of The Dayton Power and Light Company, as of January 4, 1991 | Exhibit 3(b) to Report on Form 10-K/A for the year ended December 31, 1991 (File No. 1-2385) | |
X | 3(d) | Regulations of The Dayton Power and Light Company, as of April 9, 1981 | Exhibit 3(a) to Report on Form 8-K filed on May 3, 2004 (File No. 1-2385) | |
X | X | 4(a) | Composite Indenture dated as of October 1, 1935, between The Dayton Power and Light Company and Irving Trust Company, Trustee with all amendments through the Twenty-Ninth Supplemental Indenture | Exhibit 4(a) to Report on Form 10-K for the year ended December 31, 1985 (File No. 1-2385) |
X | X | 4(b) | Forty-First Supplemental Indenture dated as of February 1, 1999, between The Dayton Power and Light Company and The Bank of New York, Trustee | Exhibit 4(m) to Report on Form 10-K for the year ended December 31, 1998 (File No. 1-2385) |
X | X | 4(c) | Forty-Second Supplemental Indenture dated as of September 1, 2003, between The Dayton Power and Light Company and The Bank of New York, Trustee | Exhibit 4(r) to Report on Form 10-K for the year ended December 31, 2003 (File No. 1-9052) |
X | X | 4(d) | Forty-Third Supplemental Indenture dated as of August 1, 2005, between The Dayton Power and Light Company and The Bank of New York, Trustee | Exhibit 4.4 to Report on Form 8-K filed August 24, 2005 (File No. 1-2385) |
X | 4(e) | Indenture dated as of August 31, 2001 between DPL Inc. and The Bank of New York, Trustee | Exhibit 4(a) to Registration Statement No. 333-74630 | |
X | 4(f) | First Supplemental Indenture dated as of August 31, 2001 between DPL Inc. and The Bank of New York, as Trustee | Exhibit 4(b) to Registration Statement No. 333-74630 | |
X | 4(g) | Amended and Restated Trust Agreement dated as of August 31, 2001 among DPL Inc., The Bank of New York, The Bank of New York (Delaware), the administrative trustees named therein, and several Holders as defined therein | Exhibit 4(c) to Registration Statement No. 333-74630 | |
X | X | 4(h) | Exhibit |
DPL | DP&L | Exhibit Number | Exhibit | Location |
X | X | 4(i) | Forty-Fourth Supplemental Indenture dated as of September 1, 2006 between the Bank of New York, Trustee and The Dayton Power and Light Company | Exhibit 4.2 to Report on Form 8-K filed September 19, 2006 (File No. 1-2385) |
X | 4(j) | Indenture, dated October 3, 2011, between Dolphin Subsidiary II, Inc. and Wells Fargo Bank, National Association | Exhibit 4.1 to Report on Form 8-K filed October 5, 2011 by The AES Corporation (File No. 1-12291) | |
X | Supplemental Indenture, dated as of November 28, 2011, between DPL Inc. and Wells Fargo Bank, National Association | Exhibit 4(k) to Report on Form 10-K for the year ended December 31, 2011 (File No. 1-2385) | ||
X | ||||
Indenture, dated October 6, 2014, between DPL Inc. and U.S. Bank National Association. | Exhibit 4.1 to Report on Form 8-K filed October 10, 2014 (File No. 1-9052) | |||
X | ||||
X | Loan Agreement, dated August 1, 2015, between the Ohio Air Quality Development Authority and The Dayton Power and Light Company, relating to the 2015 Series A | Exhibit 4.1 to Report on Form 8-K filed August 6, 2015 (File No. 1-2385) | ||
X | X | Loan Agreement, dated August 1, 2015, between the Ohio Air Quality Development Authority and The Dayton Power and Light Company, relating to the 2015 Series B | Exhibit 4.2 to Report on Form 8-K filed August 6, 2015 (File No. 1-2385) | |
X | X | Forty-Eighth Supplemental Indenture dated as of August 1, 2015 between The Bank of New York Mellon, Trustee and The Dayton Power and Light Company | Exhibit 4.3 to Report on Form 8-K filed August 6, 2015 (File No. 1-2385) | |
X | X | Forty-Ninth Supplemental Indenture dated as of August 1, 2015 between The Bank of New York Mellon, Trustee and The Dayton Power and Light Company | Exhibit 4.4 to Report on Form 8-K filed August 6, 2015 (File No. 1-2385) |
X | X | Bond Purchase and Covenants Agreement, dated as of August | Exhibit 4.5 to Report on Form 8-K filed August 6, 2015 (File No. 1-2385) | |
X | X | 4(r) | Amendment dated as of February 21, 2017 to Bond Purchase and Covenants Agreement by and among The Dayton Power and Light Company, SunTrust Bank, as Administrative Agent, and several lenders from time to time party thereto, dated as of August 1, 2015 | Filed herewith as Exhibit 4(r) |
X | X | 4(s) | Fiftieth Supplemental Indenture, dated as of August 1, 2016, by and between The Dayton Power and Light Company and The Bank of New York Mellon, Trustee | Exhibit 4.3 to Report on Form 8-K filed August 30, 2016 (File No. 1-2385) |
DPL | DP&L | Exhibit Number | Exhibit | Location |
X | 10(a) | Credit Agreement, dated as of July 31, 2015, among DPL Inc., U.S. Bank National Association, as Administrative Agent, Collateral Agent, Swing Line Lender and an L/C Issuer, PNC Bank, National Association, as Syndication Agent and an L/C Issuer, Bank of America, N.A., as Documentation Agent and an L/C Issuer, and the other lenders party to the Credit Agreement | Exhibit 10.1 to Report on Form 8-K filed August 6, 2015 (File No. 1-9052) | |
X | 10(b) | Guaranty Agreement, dated as of July 31, 2015, between DPL Energy, LLC and U.S. Bank National Association, as Administrative Agent | Exhibit 10.2 to Report on Form 8-K filed August 6, 2015 (File No. 1-2385) | |
X | 10(c) | Pledge Agreement, dated as of July 31, 2015, between DPL Inc. and U.S. Bank National Association, as Collateral Agent | Exhibit 10.3 to Report on Form 8-K filed August 6, 2015 (File No. 1-2385) | |
X | 10(d) | Open-end Mortgage, Security Agreement, Assignment of Leases and Rents, and Fixture Filing, dated as of July 31, 2015, made by DPL Energy LLC to U.S. Bank National Association, as Collateral Agent and Mortgagee | Exhibit 10.4 to Report on Form 8-K filed August 6, 2015 (File No. 1-2385) | |
X | X | 10(e) | Credit Agreement, dated as of July 31, 2015, among The Dayton Power and Light Company, PNC Bank, National Association, as Administrative Agent, Swing Line Lender and an L/C Issuer, Fifth Third Bank, as Syndication Agent and an L/C Issuer, Bank of America, N.A., as Documentation Agent and an L/C Issuer, and the other lenders party to the Credit Agreement | Exhibit 10.5 to Report on Form 8-K filed August 6, 2015 (File No. 1-2385) |
X | X | 10(f) | Amendment dated as of February 21, 2017 to Credit Agreement by and among The Dayton Power and Light Company, PNC Bank, National Association, as Administrative Agent, Swing Line Lender and an L/C Issuer, Fifth Third Bank, as Syndication Agent and an L/C Issuer, Bank of America, N.A., as Documentation Agent and an L/C Issuer, and the other lenders party to the Credit Agreement, dated as of July 31, 2015 | Filed herewith as Exhibit 10(f) |
X | 10(g) | Open-End Leasehold Mortgage, Security Agreement, Assignment of Leases and Rents, and Fixture Filing from DPL Energy, LLC to U.S. Bank National Association, dated as of October 29, 2015 | Exhibit 10(a) to Report on Form 10-Q for the quarter ended September 30, 2015 (File No. 1-9052) |
DPL | DP&L | Exhibit Number | Exhibit | Location |
X | X | 10(h) | Credit Agreement, dated August 24, 2016, among The Dayton Power and Light Company, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, Morgan Stanley Senior Funding, Inc., as a lender and BMO Capital Markets Corp., Fifth Third Securities, The Huntington National Bank, PNC Capital Markets LLC, RBC Capital Markets, LLC, Regions Capital Markets, a division of Regions Bank, and SunTrust Robinson Humphrey, Inc., as managing agents | Exhibit 4.1 to Report on Form 8-K filed August 30, 2016 (File No. 1-2385) |
X | X | 10(i) | Pledge and Security Agreement, dated as of August 24, 2016, between The Dayton Power and Light Company and JPMorgan Chase Bank, N.A., as collateral agent | Exhibit 4.2 to Report on Form 8-K filed August 30, 2016 (File No. 1-2385) |
X | X | 10(j) | Stipulation and Recommendation dated January 30, 2017 | Exhibit 10.1 to Report on Form 8-K filed February 3, 2017 (File No. 1-2385) |
X | 31(a) | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith as Exhibit 31(a) | |
X | 31(b) | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith as Exhibit 31(b) | |
X | 31(c) | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith as Exhibit 31(c) | |
X | 31(d) | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith as Exhibit 31(d) | |
X | 32(a) | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith as Exhibit 32(a) |
X | 32(b) | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith as Exhibit 32(b) | |
X | 32(c) | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith as Exhibit 32(c) | |
X | 32(d) | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith as Exhibit 32(d) | |
X | X | 101.INS | XBRL Instance | Furnished herewith as Exhibit 101.INS |
X | X | 101.SCH | XBRL Taxonomy Extension Schema | Furnished herewith as Exhibit 101.SCH |
X | X | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase | Furnished herewith as Exhibit 101.CAL |
X | X | 101.DEF | XBRL Taxonomy Extension Definition Linkbase | Furnished herewith as Exhibit 101.DEF |
X | X | 101.LAB | XBRL Taxonomy Extension Label Linkbase | Furnished herewith as Exhibit 101.LAB |
X | X | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase | Furnished herewith as Exhibit 101.PRE |
DPL Inc. | |
/s/ Kenneth J. Zagzebski | |
Kenneth J. Zagzebski | |
President and Chief Executive Officer | |
(principal executive officer) | |
The Dayton Power and Light Company | |
/s/ Thomas A. Raga | |
Thomas A. Raga | |
President and Chief Executive Officer | |
(principal executive officer) |
/s/ Brian A. Miller | Director and Chairman | February 24, 2017 | |
Brian A. Miller | |||
/s/ Elizabeth Hackenson | Director | February 24, 2017 | |
Elizabeth Hackenson | |||
/s/ Michael S. Mizell | Director | February 24, 2017 | |
Michael S. Mizell | |||
/s/ Kazi K. Hasan | Director | February 24, 2017 | |
Kazi K. Hasan | |||
/s/ Mary Stawikey | Director | February 24, 2017 | |
Mary Stawikey | |||
/s/ Kenneth J. Zagzebski | Director, President and Chief Executive Officer | February 24, 2017 | |
Kenneth J. Zagzebski | (principal executive officer) | ||
/s/ Craig L. Jackson | Chief Financial Officer | February 24, 2017 | |
Craig L. Jackson | (principal financial officer) | ||
/s/ Kurt A. Tornquist | Controller | February 24, 2017 | |
Kurt A. Tornquist | (principal accounting officer) |
/s/ Brian A. Miller | Director and Chairman | February 24, 2017 | |
Brian A. Miller | |||
/s/ Kenneth J. Zagzebski | Director | February 24, 2017 | |
Kenneth J. Zagzebski | |||
/s/ Elizabeth Hackenson | Director | February 24, 2017 | |
Elizabeth Hackenson | |||
/s/ Michael S. Mizell | Director | February 24, 2017 | |
Michael S. Mizell | |||
/s/ Kazi K. Hasan | Director | February 24, 2017 | |
Kazi K. Hasan | |||
/s/ Paul L. Freedman | Director | February 24, 2017 | |
Paul L. Freedman | |||
/s/ Tish D. Mendoza | Director | February 24, 2017 | |
Tish D. Mendoza | |||
/s/ Thomas A. Raga | Director, President and Chief Executive Officer | February 24, 2017 | |
Thomas A. Raga | (principal executive officer) | ||
/s/ Craig L. Jackson | Director, Vice President and Chief Financial Officer | February 24, 2017 | |
Craig L. Jackson | (principal financial officer) | ||
/s/ Kurt A. Tornquist | Controller | February 24, 2017 | |
Kurt A. Tornquist | (principal accounting officer) |
DPL Inc. | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
For each of the three years ended December 31, 2016 | ||||||||||||||||
$ in thousands | ||||||||||||||||
Description | Balance at Beginning of Period | Additions | Deductions (a) | Balance at End of Period | ||||||||||||
Year ended December 31, 2016 | ||||||||||||||||
Deducted from accounts receivable - | ||||||||||||||||
Provision for uncollectible accounts (b) | $ | 835 | $ | 4,113 | $ | 3,789 | $ | 1,159 | ||||||||
Deducted from deferred tax assets - | ||||||||||||||||
Valuation allowance for deferred tax assets | $ | 17,246 | $ | — | $ | 13,921 | $ | 3,325 | ||||||||
Year ended December 31, 2015 | ||||||||||||||||
Deducted from accounts receivable - | ||||||||||||||||
Provision for uncollectible accounts (b) | $ | 898 | $ | 3,766 | $ | 3,829 | $ | 835 | ||||||||
Deducted from deferred tax assets - | ||||||||||||||||
Valuation allowance for deferred tax assets | $ | 18,900 | $ | 1,626 | $ | 3,280 | $ | 17,246 | ||||||||
Year ended December 31, 2014 | ||||||||||||||||
Deducted from accounts receivable - | ||||||||||||||||
Provision for uncollectible accounts (b) | $ | 909 | $ | 4,011 | $ | 4,022 | $ | 898 | ||||||||
Deducted from deferred tax assets - | ||||||||||||||||
Valuation allowance for deferred tax assets | $ | 13,721 | $ | 5,179 | $ | — | $ | 18,900 |
(a) | Amounts written off, net of recoveries of accounts previously written off | ||||||||
(b) | Provision for uncollectible accounts related to Company's held-for-sale business as detailed below were excluded from the table above and were included in "Assets held for sale - current" in the consolidated balance sheets. | ||||||||
For the years ended, December 31 | |||||||||
2015 | 2014 | ||||||||
Beginning balance | $ | 369 | $ | 251 | |||||
Additions | 2,035 | 3,633 | |||||||
Deductions | 2,291 | 3,515 | |||||||
Ending balance | $ | 113 | $ | 369 |
THE DAYTON POWER AND LIGHT COMPANY | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
For each of the three years ended December 31, 2016 | ||||||||||||||||
$ in thousands | ||||||||||||||||
Description | Balance at Beginning of Period | Additions | Deductions (a) | Balance at End of Period | ||||||||||||
Year ended December 31, 2016 | ||||||||||||||||
Deducted from accounts receivable - | ||||||||||||||||
Provision for uncollectible accounts | $ | 835 | $ | 4,113 | $ | 3,789 | $ | 1,159 | ||||||||
Year ended December 31, 2015 | ||||||||||||||||
Deducted from accounts receivable - | ||||||||||||||||
Provision for uncollectible accounts | $ | 897 | $ | 3,766 | $ | 3,828 | $ | 835 | ||||||||
Year ended December 31, 2014 | ||||||||||||||||
Deducted from accounts receivable - | ||||||||||||||||
Provision for uncollectible accounts | $ | 909 | $ | 4,011 | $ | 4,023 | $ | 897 |
(a) | Amounts written off, net of recoveries of accounts previously written off. |