Cover Document
Cover Document | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Document Fiscal Year Focus | 2020 |
Document Type | S-4 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Registrant Name | DPL Inc. |
Entity Incorporation, State or Country Code | OH |
Entity Address, State or Province | OH |
Entity Address, Postal Zip Code | 45432 |
City Area Code | 937 |
Local Phone Number | 259-7215 |
Entity Tax Identification Number | 31-1163136 |
Entity Address, Address Description | 1065 Woodman Drive |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0000787250 |
Amendment Flag | false |
Entity Address, City or Town | Dayton |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Line Items] | |
Overview and Summary of Significant Accounting Policies | Overview and Summary of Significant Accounting Policies Description of Business DPL is a diversified regional energy company organized in 1985 under the laws of Ohio. DPL has one reportable segment, the Utility segment. See Note 13 – Business Segments for more information relating to our reportable segment. The terms “we”, “us”, “our” and “ours” are used to refer to DPL and its subsidiaries. On November 28, 2011, DPL was acquired by AES in the Merger and DPL became a wholly-owned subsidiary of AES. Following the merger of DPL and Dolphin Subsidiary II, Inc., DPL became an indirectly wholly-owned subsidiary of AES. DP&L, DPL's wholly-owned subsidiary, is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave consumers the right to choose the electric generation supplier from whom they purchase retail generation service, however transmission and distribution services are still regulated. DP&L has the exclusive right to provide such service to its approximately 531,000 customers located in West Central Ohio. DP&L provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio. DP&L sources all of the generation for its SSO customers through a competitive bid process. DP&L owned interests in the retired power stations of Beckjord and Hutchings until their transfers in 2018 and 2020, respectively, and currently owns numerous transmission facilities. Principal industries located in DP&L’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. DP&L's sales reflect the general economic conditions, seasonal weather patterns of the area and the market price of electricity. DPL’s other primary subsidiaries are MVIC and Miami Valley Lighting. MVIC is our captive insurance company that provides insurance services to DP&L and our other subsidiaries, and Miami Valley Lighting provides street and outdoor lighting services to customers in the Dayton region. In prior periods, AES Ohio Generation was also a primary subsidiary and sold all of its energy and capacity into the wholesale market. In 2020, AES Ohio Generation's only operating asset was an undivided interest in Conesville, which closed in May 2020 and was sold in June 2020. See Note 15 – Discontinued Operations for additional information. DPL's subsidiaries are wholly-owned. DPL also has a wholly-owned business trust, DPL Capital Trust II, formed for the purpose of issuing trust capital securities to investors. DP&L’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, DP&L applies the accounting standards for regulated operations to its electric transmission and distribution businesses and records regulatory assets when incurred costs are expected to be recovered in future customer rates and regulatory liabilities when current cost recoveries in customer rates relate to expected future costs or overcollections of riders. DPL and its subsidiaries employed 631 people (512 full-time) at January 31, 2021, all of which were employed by DP&L. Approximately 58% of all DPL employees are under a collective bargaining agreement that expires on October 31, 2023. Financial Statement Presentation We prepare Consolidated Financial Statements for DPL. DPL’s Consolidated Financial Statements include the accounts of DPL and its wholly-owned subsidiaries except for DPL Capital Trust II which is not consolidated, consistent with the provisions of GAAP. All material intercompany accounts and transactions are eliminated in consolidation. We have evaluated subsequent events through the date this report is issued. Certain amounts from prior periods have been reclassified to conform to the current period presentation. Use of Management Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the revenues and expenses of the periods reported. Actual results could differ from these estimates. Significant items subject to such estimates and judgments include: the carrying value of Property, plant and equipment; unbilled revenues; the valuation of derivative instruments; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; reserves recorded for income tax exposures; litigation; contingencies; the valuation of AROs; and assets and liabilities related to employee benefits. Cash and Cash Equivalents Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents. Restricted Cash Restricted cash includes cash which is restricted as to withdrawal or usage. The nature of the restriction includes an agreement related to cash collected under the DMR, which was restricted to pay debt obligations at DPL and DP&L and position DP&L to modernize and/or maintain its transmission and distribution infrastructure. The following table summarizes cash, cash equivalents and restricted cash amounts reported on the Consolidated Balance Sheets that reconcile to the total of such amounts as shown on the Consolidated Statements of Cash Flows: December 31, $ in millions 2020 2019 Cash and cash equivalents $ 25.4 $ 36.5 Restricted cash 0.1 10.5 Cash, Cash Equivalents and Restricted Cash, End of Period $ 25.5 $ 47.0 Allowance for Credit Losses We establish provisions for uncollectible accounts by using both historical average loss percentages to project future losses and by establishing specific provisions for known credit issues. Amounts are written off when reasonable collections efforts have been exhausted. Inventories Inventories are carried at average cost, net of reserves, and include materials and supplies used for utility operations. Regulatory Accounting As a regulated utility, DP&L applies the provisions of FASC 980 “Regulated Operations”, which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory assets have been included as allowable costs for ratemaking purposes, as authorized by the PUCO or established regulatory practices. Regulatory liabilities generally represent obligations to make refunds or future rate reductions to customers for previous over collections or the deferral of revenues collected for costs that DP&L expects to incur in the future. The deferral of costs (as regulatory assets) is appropriate only when the future recovery of such costs is probable. In assessing probability, we consider such factors as specific orders from the PUCO or FERC, regulatory precedent and the current regulatory environment. To the extent recovery of costs is no longer deemed probable, related regulatory assets would be required to be expensed in current period earnings. Our regulatory assets and liabilities have been created pursuant to a specific order of the PUCO or FERC or established regulatory practices, such as other utilities under the jurisdiction of the PUCO or FERC being granted recovery of similar costs. It is probable, but not certain, that these regulatory assets will be recoverable, subject to PUCO or FERC approval. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 3 – Regulatory Matters for more information. Property, Plant and Equipment New property, plant and equipment additions are stated at cost. For regulated transmission and distribution property, cost includes direct labor and material, allocable overhead expenses and an allowance for funds used during construction (AFUDC). AFUDC represents the cost of borrowed funds and equity used to finance regulated construction projects. Capitalization of AFUDC and interest ceases at either project completion or at the date specified by regulators. AFUDC and capitalized interest was $3.0 million, $3.2 million and $0.5 million in the years ended December 31, 2020, 2019 and 2018, respectively. For substantially all depreciable property, when a unit of property is retired, the original cost of that property less any salvage value is charged to Accumulated depreciation and amortization, consistent with composite depreciation practices. Impairment of Long-lived Assets GAAP requires that we test long-lived assets for impairment when indicators of impairment exist. If an asset is deemed to be impaired, we are required to write down the asset to its fair value with a charge to current earnings. The net book value of our property, plant, and equipment was $1,565.3 million and $1,445.6 million as of December 31, 2020 and 2019, respectively. We do not believe any of these assets are currently impaired. In making this assessment, we consider such factors as: the overall condition and distribution capacity of the assets; the expected ability to recover additional expenditures in the assets; and the anticipated demand and relative pricing of retail electricity in our service territory. Depreciation Depreciation expense is calculated using the straight-line method, which allocates the cost of property over its estimated useful life. For DPL’s transmission and distribution assets, straight-line depreciation is applied monthly on an average composite basis using group rates that approximated 3.8% in 2020, 4.0% in 2019 and 4.3% in 2018. Depreciation expense was $70.0 million, $67.9 million and $69.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. Intangibles Intangibles include software, emission allowances and renewable energy credits. Emission allowances are carried on a first-in, first-out (FIFO) basis for purchased emission allowances. Net gains or losses on the sale of excess emission allowances, representing the difference between the sales proceeds and the cost of emission allowances, are recorded as a component of our fuel costs and are reflected in Operating income when realized. Emission allowances are amortized as they are used in our operations on a FIFO basis. Renewable energy credits are carried on a weighted average cost basis and amortized as they are used or retired. Software is amortized over seven years . Amortization expense was $3.3 million, $4.4 million and $6.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. The estimated amortization expense of this internal-use software over the next five years is $10.7 million ($3.0 million in 2021, $2.2 million in 2022, $2.0 million in 2023, $1.8 million in 2024 and $1.7 million in 2025). Implementation Costs Related to Software as a Service DPL has recorded prepayments for implementation costs related to software as a service in support of utility customer services of $4.1 million and these are recorded within Other Non-current Assets on the accompanying Consolidated Balance Sheets as of December 31, 2020. Debt Issuance Costs Costs incurred in connection with the issuance of long-term debt are deferred and presented as a direct reduction from the face amount of that debt and amortized over the related financing period using the effective interest method. Debt issuance costs related to a line-of-credit or revolving credit facility are deferred and presented as an asset and amortized over the related financing period. Make-whole payments in connection with early debt retirements are classified as cash flows used in financing activities. Financial Instruments Our Master Trust investments in debt and equity financial instruments of publicly traded entities are classified as equity investments. These equity securities are carried at fair value and unrealized gains and losses on these securities are recorded in Other income. As these financial instruments are held to be used for the benefit of employees or former employees participating in employee benefit plans and are not used for general operating purposes, they are classified as non-current in Other non-current assets on the Consolidated Balance Sheets. See Note 5 – Fair Value for additional information. Financial Derivatives All derivatives are recognized as either assets or liabilities in the balance sheets and are measured at fair value. Changes in the fair value are recorded in earnings unless the derivative is designated as a cash flow hedge of a forecasted transaction or it qualifies for the normal purchases and sales exception. We have, in the past, used interest rate hedges to manage the interest rate risk of our variable rate debt. We use cash flow hedge accounting when the hedge or a portion of the hedge is deemed to be highly effective, which results in changes in fair value being recorded within accumulated other comprehensive income / (loss), a component of shareholder’s deficit. We have elected not to offset net derivative positions in the financial statements. Accordingly, we do not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 6 – Derivative Instruments and Hedging Activities for additional information. Insurance and Claims Costs In addition to insurance obtained from third-party providers, MVIC, a wholly-owned captive subsidiary of DPL, provides insurance coverage solely to us and our subsidiaries for workers’ compensation, general liability and property damage on an ongoing basis. Insurance and claims costs associated with MVIC include estimated liabilities of approximately $3.2 million and $4.5 million at December 31, 2020 and 2019, respectively, within Accrued and other current liabilities on the DPL Consolidated Balance Sheets. DPL has estimated liabilities for medical, life, disability and other reserves for claims costs below certain coverage thresholds of third-party providers of approximately $11.1 million and $3.3 million at December 31, 2020 and 2019, respectively, within Accrued and other current liabilities and Other non-current liabilities on the balance sheets. The estimated liabilities for workers’ compensation, medical, life and disability costs at DPL are actuarially determined using certain assumptions. There is uncertainty associated with these loss estimates, and actual results may differ from the estimates. Modification of these loss estimates based on experience and changed circumstances is reflected in the period in which the estimate is re-evaluated. Revenue Recognition Revenues are recognized from retail and wholesale electricity sales and electricity transmission and distribution delivery services. Revenue is recognized upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Energy sales to customers are based on the reading of their meters that occurs on a systematic basis throughout the month. We recognize the revenues on our Consolidated Statements of Operations using an accrual method for retail and other energy sales that have not yet been billed, but where electricity has been consumed. This is termed “unbilled revenues” and is a widely recognized and accepted practice for utilities. At the end of each month, unbilled revenues are determined by the estimation of unbilled energy provided to customers since the date of the last meter reading, estimated line losses, the assignment of unbilled energy provided to customer classes and the average rate per customer class. For additional information, see Note 14 – Revenue. Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities DP&L collects certain excise taxes levied by state or local governments from its customers. DP&L’s excise taxes and certain other taxes are accounted for on a net basis and recorded as a reduction in revenues in the accompanying Consolidated Statements of Operations. The amounts for the years ended December 31, 2020, 2019 and 2018, were $48.1 million, $50.1 million and $51.7 million, respectively. Repairs and Maintenance Costs associated with maintenance activities are recognized at the time the work is performed. These costs, which include labor, materials and supplies and outside services required to maintain equipment and facilities, are capitalized or expensed based on defined units of property. Pension and Postretirement Benefits We recognize in our Consolidated Balance Sheets an asset or liability reflecting the funded status of pension and other postretirement plans with current-year changes from actuarial gains or losses related to our regulated operations, that would otherwise be recognized in AOCL, recorded as a regulatory asset as this can be recovered through future rates. Such changes that are not related to our regulated operations are recognized in AOCL. All plan assets are recorded at fair value. We follow the measurement date provisions of the accounting guidance, which require a year-end measurement date of plan assets and obligations for all defined benefit plans. We account for and disclose pension and postretirement benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postretirement plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost and funding requirements of the plans. Consistent with the requirements of FASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans. See Note 9 – Benefit Plans for more information. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective income tax bases. We establish an allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Our tax positions are evaluated under a more likely than not recognition threshold and measurement analysis before they are recognized for financial statement reporting. Uncertain tax positions have been classified as noncurrent income tax liabilities unless expected to be paid within one year. Our policy for interest and penalties is to recognize interest and penalties as a component of the provision for income taxes in the Consolidated Statement of Operations. Income taxes payable, which are includable in allowable costs for ratemaking purposes in future years, are recorded as regulatory assets or liabilities with a corresponding deferred tax liability or asset. Investment tax credits that reduced federal income taxes in the years they arose have been deferred and are being amortized to income over the useful lives of the properties in accordance with regulatory treatment. See Note 3 – Regulatory Matters for additional information. DPL and its subsidiaries file U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 8 – Income Taxes for additional information. Related Party Transactions In the normal course of business, DPL enters into transactions with related parties. All material intercompany accounts and transactions are eliminated in DPL’s Consolidated Financial Statements. See Note 12 – Related Party Transactions for more information on Related Party Transactions. DPL Capital Trust II DPL has a wholly-owned business trust, DPL Capital Trust II (the Trust), formed for the purpose of issuing trust capital securities to third-party investors. In 2003, DPL deconsolidated the Trust upon adoption of the accounting standards related to variable interest entities and currently treats the Trust as an unconsolidated subsidiary. The Trust holds mandatorily redeemable trust capital securities. The investment in the Trust, which amounts to $0.2 million and $0.2 million at December 31, 2020 and 2019, respectively, is included within Other noncurrent assets on the consolidated balance sheets. DPL also has a note payable to the Trust amounting to $15.6 million and $15.6 million at December 31, 2020 and 2019, respectively, that was established upon the Trust’s deconsolidation in 2003. See Note 7 – Long-term debt for additional information. In addition to the obligations under the note payable mentioned above, DPL also agreed to a security obligation which represents a full and unconditional guarantee of payments to the capital security holders of the Trust. Held-for-sale Businesses A business classified as held-for-sale is reflected on the balance sheet at the lower of its carrying amount or estimated fair value less cost to sell. A loss is recognized if the carrying amount of the business exceeds its estimated fair value less cost to sell. This loss is limited to the carrying value of long-lived assets until the completion of the sale, at which point, any additional loss is recognized. If the fair value of the business subsequently exceeds the carrying amount while the business is still held-for-sale, any impairment expense previously recognized will be reversed up to the lower of the previously recognized expense or the subsequent excess. Assets and liabilities related to a business classified as held-for-sale are segregated in the current balance sheet in the period in which the business is classified as held-for-sale. Assets and liabilities of held-for-sale businesses are classified as current when they are expected to be disposed of within twelve months. Transactions between the business held-for-sale and businesses that are expected to continue to exist after the disposal are not eliminated to appropriately reflect the continuing operations and balances held-for-sale. See Note 15 – Discontinued Operations for further information. Discontinued Operations Discontinued operations reporting occurs only when the disposal of a business or a group of assets represents a strategic shift that has (or will have) a major effect on our operations and financial results. We report financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Prior period amounts in the statement of operations and balance sheet are retrospectively revised to reflect the businesses determined to be discontinued operations. The cash flows of businesses that are determined to be discontinued operations are included within the relevant categories within operating, investing and financing activities on the face of the Consolidated Statements of Cash Flows. Transactions between the businesses determined to be discontinued operations and businesses that are expected to continue to exist after the disposal are not eliminated to appropriately reflect the continuing operations and balances held-for-sale. The results of discontinued operations include any gain or loss recognized on closing or adjustment of the carrying amount to fair value. See Note 15 – Discontinued Operations for further information. New accounting pronouncements The following table provides a brief description of recent accounting pronouncements that had an impact on our consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on our consolidated financial statements. Accounting Standard Description Date of Adoption Effect on the financial statements upon adoption New Accounting Standards Adopted 2016-13, 2018-19, 2019-04, 2019-05, 2019-10, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments See discussion of the ASUs below. January 1, 2020. The adoption of this standard had no material effect on our consolidated financial statements. Adoption of FASC Topic 326, "Financial Instruments - Credit Losses" On January 1, 2020, we adopted ASC 326 Financial Instruments - Credit Losses and its subsequent corresponding updates ("ASC 326"). The new standard updates the impairment model for financial assets measured at amortized cost, known as the Current Expected Credit Loss ("CECL") model. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities are required to use a new forward-looking "expected loss" model that generally results in the earlier recognition of an allowance for credit losses. For available-for-sale debt securities with unrealized losses, entities measure credit losses as it was done under previous GAAP, except that unrealized losses due to credit-related factors are now recognized as an allowance on the balance sheet with a corresponding adjustment to earnings in the income statement. We applied the modified retrospective method of adoption for ASC 326. Under this transition method, we applied the transition provisions starting at the date of adoption. The CECL model primarily impacts the calculation of our expected credit losses in gross customer trade accounts receivable. The adoption of ASC 326 and the application of CECL on our trade accounts receivable did not have a material impact on our Consolidated Financial Statements. New accounting pronouncements issued but not yet effective - The following table provides a brief description of recent accounting pronouncements that could have a material impact on our consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on our consolidated financial statements. Accounting Standard Description Date of Adoption Effect on the financial statements upon adoption New Accounting Standards Issued but Not Yet Effective 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The standard provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform. This standard is effective for a limited period of time (March 12, 2020 - December 21, 2022). Effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
Business Description and Basis of Presentation | DPL is a diversified regional energy company organized in 1985 under the laws of Ohio. DPL has one reportable segment, the Utility segment. See Note 13 – Business Segments for more information relating to our reportable segment. The terms “we”, “us”, “our” and “ours” are used to refer to DPL and its subsidiaries. On November 28, 2011, DPL was acquired by AES in the Merger and DPL became a wholly-owned subsidiary of AES. Following the merger of DPL and Dolphin Subsidiary II, Inc., DPL became an indirectly wholly-owned subsidiary of AES. DP&L, DPL's wholly-owned subsidiary, is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave consumers the right to choose the electric generation supplier from whom they purchase retail generation service, however transmission and distribution services are still regulated. DP&L has the exclusive right to provide such service to its approximately 531,000 customers located in West Central Ohio. DP&L provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio. DP&L sources all of the generation for its SSO customers through a competitive bid process. DP&L owned interests in the retired power stations of Beckjord and Hutchings until their transfers in 2018 and 2020, respectively, and currently owns numerous transmission facilities. Principal industries located in DP&L’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. DP&L's sales reflect the general economic conditions, seasonal weather patterns of the area and the market price of electricity. DPL’s other primary subsidiaries are MVIC and Miami Valley Lighting. MVIC is our captive insurance company that provides insurance services to DP&L and our other subsidiaries, and Miami Valley Lighting provides street and outdoor lighting services to customers in the Dayton region. In prior periods, AES Ohio Generation was also a primary subsidiary and sold all of its energy and capacity into the wholesale market. In 2020, AES Ohio Generation's only operating asset was an undivided interest in Conesville, which closed in May 2020 and was sold in June 2020. See Note 15 – Discontinued Operations for additional information. DPL's subsidiaries are wholly-owned. DPL also has a wholly-owned business trust, DPL Capital Trust II, formed for the purpose of issuing trust capital securities to investors. DP&L’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, DP&L applies the accounting standards for regulated operations to its electric transmission and distribution businesses and records regulatory assets when incurred costs are expected to be recovered in future customer rates and regulatory liabilities when current cost recoveries in customer rates relate to expected future costs or overcollections of riders. DPL and its subsidiaries employed 631 people (512 full-time) at January 31, 2021, all of which were employed by DP&L. Approximately 58% of all DPL employees are under a collective bargaining agreement that expires on October 31, 2023. |
Overview and Summary of Signi_2
Overview and Summary of Significant Accounting Policies (Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Excise Taxes Collected | $ 48.1 | $ 50.1 | $ 51.7 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | $ 660.5 | $ 743.7 | $ 747.3 |
Operating costs and expenses | |||
Net fuel cost | 1.7 | 2.5 | 2.5 |
Utilities Operating Expense, Purchased Power | 230.6 | 251.9 | 302.7 |
Utilities Operating Expense, Maintenance and Operations | 181.6 | 184.2 | 138.3 |
Depreciation and amortization | 73.3 | 72.3 | 76.2 |
Taxes, Miscellaneous | 79.4 | 77.9 | 73.3 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges, excluding Discontinued Operations | (0.1) | 0 | 0 |
Gain (Loss) on Disposition of Business | (4.7) | 0 | (11.7) |
Costs and Expenses | 571.4 | 588.8 | 604.7 |
Operating Income (Loss) | 89.1 | 154.9 | 142.6 |
Other income / (expense), net | |||
Interest expense | (71.3) | (82.2) | (98) |
Loss on early extinguishment of debt | (31.7) | (44.9) | (6.5) |
Other income | 2 | 3.7 | 0.8 |
Other expense, net | (101) | (123.4) | (103.7) |
Income / (loss) from continuing operations before income tax | (11.9) | 31.5 | 38.9 |
Income tax expense / (benefit) from continuing operations | (5.5) | (20.3) | 2.2 |
Net income / (loss) from continuing operations | (6.4) | 51.8 | 36.7 |
Income / (loss) from discontinued operations before income tax | (0.6) | 47.6 | 63.5 |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 6.1 | 20.1 | (1.6) |
Income tax expense from discontinued operations | 0.1 | 14.1 | 28.5 |
Net income from discontinued operations | 5.4 | 53.6 | 33.4 |
Net loss | $ (1) | $ 105.4 | $ 70.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income / (loss) | $ (1) | $ 105.4 | $ 70.1 |
Derivative activity: | |||
Change in derivative fair value, net of income tax benefit/(expense) | 0 | (1) | (0.1) |
Reclassification of earnings, net of income tax benefit/(expense) | (0.9) | (1.1) | (0.8) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives Related to Discontinued Operations, Net of Tax | 0 | (0.4) | 3.2 |
Total change in fair value of derivatives | (0.9) | (2.5) | 2.3 |
Pension and postretirement activity: | |||
Prior service cost for the period, net of income tax benefit/(expense) | 0 | (0.1) | (2.2) |
Net loss for the period, net of income tax benefit/(expense) | (8.8) | (3.4) | 1.7 |
Reclassification to earnings, net of income tax benefit/(expense) | 1 | 0.2 | 0.6 |
Total change in unfunded pension obligation | (7.8) | (3.3) | 0.1 |
Other comprehensive income / (loss) | (8.7) | (5.8) | 2.4 |
Net comprehensive income / (loss) | (9.7) | 99.6 | 72.5 |
Income tax (expense)/benefit on unrealized gains (losses) related to derivative activity | 0 | 0.1 | 0.1 |
Income tax (expense)/benefit on reclassification of earnings related to derivative activity | 0.2 | 0.1 | 0.4 |
Income tax (expense)/benefit on prior service cost related to pension and postretirement activity | 0 | 0 | 0.6 |
Income tax (expense)/benefit on net loss related to pension and postretirement activity | $ 2.6 | $ 0.8 | $ (0.5) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax (expense)/benefit on unrealized gains (losses) related to derivative activity | $ 0 | $ 0.1 | $ 0.1 |
Income tax (expense)/benefit on reclassification of earnings related to derivative activity | 0.2 | 0.1 | 0.4 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives Related to Discontinued Operations, Tax | 0 | (0.4) | (1.2) |
Income tax (expense)/benefit on prior service cost related to pension and postretirement activity | 0 | 0 | 0.6 |
Income tax (expense)/benefit on net loss related to pension and postretirement activity | 2.6 | 0.8 | (0.5) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Transition Asset (Obligation), Reclassification Adjustment from AOCI, Tax | $ (0.3) | $ 0 | $ (0.2) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 25.4 | $ 36.5 |
Restricted cash | 0.1 | 10.5 |
Accounts receivable, net | 69.7 | 67.9 |
Inventories | 8.8 | 10.4 |
Taxes applicable to subsequent years | 78 | 77.5 |
Regulatory Assets, Current | 27.5 | 19.7 |
Income Taxes Receivable, Current | 17.9 | 23.6 |
Prepayments and other current assets | 5.8 | 7.6 |
Assets held for sale - current | 0 | 22.3 |
Total current assets | 233.2 | 276 |
Property, plant and equipment: | ||
Property, plant & equipment | 1,839.3 | 1,701.9 |
Less: Accumulated depreciation and amortization | (415.7) | (362.6) |
Property, plant and equipment, net of depreciation | 1,423.6 | 1,339.3 |
Construction work in process | 141.7 | 106.3 |
Total net property, plant & equipment | 1,565.3 | 1,445.6 |
Other non-current assets: | ||
Regulatory Assets, Noncurrent | 193.6 | 173.8 |
Intangible assets, net of amortization | 19.3 | 19.3 |
Other non-current assets | 24.6 | 20 |
Disposal Group, Including Discontinued Operation, Assets, Noncurrent | 0 | 1.1 |
Total other non-current assets | 237.5 | 214.2 |
Total assets | 2,036 | 1,935.8 |
LIABILITIES AND SHAREHOLDER'S EQUITY | ||
Current portion - long-term debt | 100.2 | 283.8 |
Accounts payable | 84.5 | 72.6 |
Accrued interest | 16 | 11.4 |
Accrued taxes | 83 | 79.3 |
Customer security deposits | 19.4 | 20.7 |
Regulatory Liability, Current | 18 | 27.9 |
Other current liabilities | 21 | 21.2 |
Liabilities held for sale - current | 0 | 9 |
Total current liabilities | 342.1 | 525.9 |
Non-current liabilities: | ||
Long-term debt | 1,393.4 | 1,223.3 |
Deferred taxes | 177.2 | 133.7 |
Taxes payable | 80.4 | 81.1 |
Regulatory Liability, Noncurrent | 218.3 | 243.6 |
Pension, retiree and other benefits | 93.9 | 79.9 |
Other deferred credits | 14.2 | 11.8 |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 0 | 8.4 |
Total non-current liabilities | 1,977.4 | 1,781.8 |
Commitments and contingencies | ||
Common stock, shares outstanding | 1 | 1 |
Common stock, shares authorized | 1,500 | 1,500 |
Common shareholder's equity: | ||
Common stock | $ 0 | $ 0 |
Other paid-in capital | 2,468.8 | 2,370.7 |
Accumulated other comprehensive income/(loss) | (12.3) | (3.6) |
Retained earnings / (deficit) | (2,740) | (2,739) |
Total common shareholder's equity | (283.5) | (371.9) |
Total Liabilities and Shareholder's Equity | $ 2,036 | $ 1,935.8 |
THE DAYTON POWER AND LIGHT COMPANY [Member] | ||
Non-current liabilities: | ||
Common stock, shares outstanding | 41,172,173 | |
Common stock, shares authorized | 50,000,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Common stock, shares authorized | 1,500 | 1,500 |
Common stock, shares outstanding | 1 | 1 |
THE DAYTON POWER AND LIGHT COMPANY [Member] | ||
Common stock, shares authorized | 50,000,000 | |
Common stock, shares outstanding | 41,172,173 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income / (loss) | $ (1) | $ 105.4 | $ 70.1 |
Adjustments to reconcile Net income / (loss) to Net cash from operating activities | |||
Depreciation and amortization | 73.6 | 53.1 | 50.2 |
Amortization of deferred financing costs | 5.7 | 5.6 | 5.5 |
Deferred income taxes | 39.8 | 15.2 | (9.1) |
Loss on early extinguishment of debt | 31.7 | 44.9 | 6.5 |
Impairment of Long-Lived Assets Held-for-use, Including Discontinued Operation | 0 | 3.5 | 2.8 |
Gain (Loss) on Disposition of Business | (1.4) | (20.1) | 13.3 |
Gain (Loss) on Disposition of Business | (4.7) | 0 | (11.7) |
Changes in certain assets and liabilities: | |||
Accounts receivable, net | 11.2 | 10.2 | 45.7 |
Inventories | 4.9 | (4.2) | 14.8 |
Taxes applicable to subsequent years | (0.2) | (2.8) | 0.1 |
Deferred regulatory costs, net | (34) | (2.2) | (9.2) |
Accounts payable | (10.1) | 9.7 | (16.3) |
Accrued taxes payable / receivable | 8 | (21.2) | 37.4 |
Accrued interest | 4.6 | (2.9) | (2.1) |
Accrued pension and other post-retirement benefits | (11.8) | (8.8) | (3.4) |
Increase (Decrease) in Other Noncurrent Liabilities | 1.5 | (14.6) | (0.5) |
Other | (8.6) | 9.5 | 0.1 |
Net cash provided by operating activities | 113.9 | 180.3 | 205.9 |
Cash flows from investing activities: | |||
Capital expenditures | (157.3) | (156.5) | (96.1) |
Proceeds from disposal and sale of business interests | 1.6 | 0 | 234.9 |
Payments for Removal Costs | (8.9) | (51) | (14.5) |
Proceeds from Sale of Property, Plant, and Equipment | 5.1 | 0 | 10.6 |
Insurance proceeds | 0 | 0 | 3 |
Payments for (Proceeds from) Removal Costs | (25.5) | (11.6) | (7.5) |
Other investing activities, net | (0.7) | (3.5) | (0.5) |
Net cash provided by / (used in) investing activities | (185.7) | (222.6) | 129.9 |
Cash flows from financing activities: | |||
Deferred financing costs | (7.8) | (9.9) | 0 |
Retirement of debt | (550.8) | (978) | (240.5) |
Proceeds from Contributions from Parent | 98 | 0 | 0 |
Premium paid for early redemption of debt | (0.1) | (0.2) | 0 |
Issuance of long-term debt | 555 | 821.7 | 0 |
Borrowings from revolving credit facilities | 185 | 204 | 30 |
Repayment of borrowings from revolving credit facilities | (229) | (60) | (40) |
Net cash from financing activities | 50.3 | (22.4) | (250.5) |
Net Cash Provided by (Used in) Discontinued Operations | 0 | 0 | 1.5 |
Cash and cash equivalents: | |||
Net increase / (decrease) in cash | (21.5) | (64.7) | 86.8 |
Restricted Cash and Cash Equivalents | 25.5 | 47 | 111.7 |
Supplemental cash flow information: | |||
Interest paid, net of amounts capitalized | 67.8 | 80.8 | 93.7 |
Income taxes paid / (refunded), net | (51.9) | 1.8 | (1.4) |
Non-cash financing and investing activities: | |||
Accruals for capital expenditures | 31.7 | 16.9 | 10.4 |
Non-cash capital contribution | 40 | ||
Non-cash Proceeds from Sale of Business | 0 | 0 | 4.1 |
Accruals from sale of business | 2.2 | $ 0 | $ 0 |
THE DAYTON POWER AND LIGHT COMPANY [Member] | |||
Cash flows from financing activities: | |||
Proceeds from Contributions from Parent | $ 150 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Parenthetical) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Common stock, shares authorized | 1,500 | 1,500 |
THE DAYTON POWER AND LIGHT COMPANY [Member] | ||
Common stock, shares authorized | 50,000,000 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Other Paid-In Capital [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Retained Earnings [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] |
Other Comprehensive Income (Loss), Net of Tax | $ 2.4 | $ (1) | ||||||
Balance at Dec. 31, 2017 | (584.3) | $ 0 | 2,330.4 | $ 0.8 | $ (2,915.5) | |||
Balance (in shares) at Dec. 31, 2017 | 1 | |||||||
Net comprehensive income/ (loss) | 72.5 | |||||||
Net loss | 70.1 | 1 | ||||||
Proceeds from Contributions from Parent | 0 | |||||||
Other | 0.1 | 0.1 | ||||||
Balance at Dec. 31, 2018 | (471.7) | $ 0 | 2,370.5 | 2.2 | (2,844.4) | |||
Balance (in shares) at Dec. 31, 2018 | 1 | |||||||
Non-cash capital contribution | 40 | 40 | ||||||
AOCI reclassed to Retained Earnings before tax | Adjustments for New Accounting Pronouncement [Member] | 1.6 | |||||||
AOCI reclassed to Retained Earnings, net of tax | Adjustments for New Accounting Pronouncement [Member] | 1 | |||||||
Other Comprehensive Income (Loss), Net of Tax | (5.8) | $ (2.5) | ||||||
Net comprehensive income/ (loss) | 99.6 | |||||||
Net loss | 105.4 | |||||||
Proceeds from Contributions from Parent | 0 | |||||||
Other | 0.2 | 0.2 | ||||||
Balance at Dec. 31, 2019 | (371.9) | $ 0 | 2,370.7 | (3.6) | (2,739) | |||
Balance (in shares) at Dec. 31, 2019 | 1 | |||||||
Non-cash capital contribution | 0 | |||||||
Other Comprehensive Income (Loss), Net of Tax | (8.7) | $ (0.9) | ||||||
Net comprehensive income/ (loss) | (9.7) | |||||||
Net loss | (1) | |||||||
Proceeds from Contributions from Parent | (98) | (98) | $ (150) | |||||
Other | 0.1 | 0.1 | ||||||
Balance at Dec. 31, 2020 | $ (283.5) | $ 0 | 2,468.8 | $ (12.3) | $ (2,740) | |||
Balance (in shares) at Dec. 31, 2020 | 1 | |||||||
Non-cash capital contribution | $ 0 |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Financial Information [Line Items] | |
Additional Financial Information Disclosure [Text Block] | Supplemental Financial Information Accounts receivable are as follows at December 31, 2020 and 2019: December 31, $ in millions 2020 2019 Accounts receivable, net Customer receivables $ 48.5 $ 45.7 Unbilled revenue 21.6 19.4 Amounts due from affiliates 0.2 0.3 Due from PJM transmission enhancement settlement (a) 1.7 1.8 Other 0.5 1.1 Allowance for credit losses (2.8) (0.4) Total accounts receivable, net $ 69.7 $ 67.9 (a) See Note 3 – Regulatory Matters for more information. The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the year ended December 31, 2020: $ in millions Beginning Allowance Balance at January 1, 2020 Current Period Provision Write-offs Charged Against Allowances Recoveries Collected Ending Allowance Balance at December 31, 2020 Allowance for credit losses $ 0.4 $ 3.0 $ (2.3) $ 1.7 $ 2.8 The allowance for credit losses primarily relates to utility customer receivables, including unbilled amounts. Expected credit loss estimates are developed by disaggregating customers into those with similar credit risk characteristics and using historical credit loss experience. In addition, we also consider how current and future economic conditions would impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of December 31, 2020. Amounts are written off when reasonable collections efforts have been exhausted. On March 12, 2020, the PUCO issued an emergency order prohibiting electric utilities, including us, from discontinuing electric utility service to customers through September 1, 2020 due to the economic impacts of COVID-19. This order along with the economic impacts of COVID-19 has resulted in an increase in past due customer receivable balances, and thus the current period provision and the allowance for credit losses have increased during 2020. See Note 17 – Risks & Uncertainties for additional discussion of the COVID-19 pandemic. However, as discussed in Note 3 – Regulatory Matters, DP&L’s uncollectible expense is deferred for future collection. Accumulated Other Comprehensive Income / (Loss) The amounts reclassified out of Accumulated Other Comprehensive Income / (Loss) by component during the years ended December 31, 2020, 2019 and 2018 are as follows: Details about Accumulated Other Comprehensive Income / (Loss) Components Affected line item in the Consolidated Statements of Operations Years ended December 31, $ in millions 2020 2019 2018 Gains and losses on cash flow hedges (Note 6): Interest expense (1.1) (1.2) (1.2) Income tax expense 0.2 0.1 0.4 Net of income taxes (0.9) (1.1) (0.8) Loss from discontinued operations — — 4.4 Tax benefit from discontinued operations — (0.4) (1.2) Net of income taxes — (0.4) 3.2 Amortization of defined benefit pension items (Note 9): Other expense 1.3 0.2 0.8 Income tax benefit (0.3) — (0.2) Net of income taxes 1.0 0.2 0.6 Total reclassifications for the period, net of income taxes $ 0.1 $ (1.3) $ 3.0 The changes in the components of Accumulated Other Comprehensive Income / (Loss) during the years ended December 31, 2020 and 2019 are as follows: $ in millions Gains / (losses) on cash flow hedges Change in unfunded pension obligation Total Balance at January 1, 2019 $ 17.0 $ (14.8) $ 2.2 Other comprehensive loss before reclassifications (1.0) (3.5) (4.5) Amounts reclassified from accumulated other comprehensive income / (loss) to earnings (1.5) 0.2 (1.3) Net current period other comprehensive loss (2.5) (3.3) (5.8) Balance at December 31, 2019 14.5 (18.1) (3.6) Other comprehensive loss before reclassifications — (8.8) (8.8) Amounts reclassified from accumulated other comprehensive loss to earnings (0.9) 1.0 0.1 Net current period other comprehensive loss (0.9) (7.8) (8.7) Balance at December 31, 2020 $ 13.6 $ (25.9) $ (12.3) |
Supplemental Financial Information | December 31, $ in millions 2020 2019 Accounts receivable, net Customer receivables $ 48.5 $ 45.7 Unbilled revenue 21.6 19.4 Amounts due from affiliates 0.2 0.3 Due from PJM transmission enhancement settlement (a) 1.7 1.8 Other 0.5 1.1 Allowance for credit losses (2.8) (0.4) Total accounts receivable, net $ 69.7 $ 67.9 |
Regulatory Matters (Notes)
Regulatory Matters (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Regulatory Assets and Liabilities [Text Block] | Regulatory Matters DP&L ESP and SEET Proceedings Ohio law requires utilities to file either an ESP or MRO plan to establish SSO rates. From November 1, 2017 through December 18, 2019, DP&L operated pursuant to an approved ESP plan, which was initially approved on October 20, 2017 (ESP 3). On November 21, 2019, the PUCO issued a supplemental order modifying the ESP 3 Stipulation by, among other matters, removing the DMR, which reduced DPL’s annual revenues by $105.0 million beginning November 29, 2019. As a result, DP&L filed a Notice of Withdrawal of its ESP 3 Application and requested to revert to rates based on its ESP 1. On December 18, 2019, the PUCO approved DP&L’s Notice of Withdrawal and reversion to its ESP 1 rate plan. Among other items, the PUCO Order approving the ESP 1 rate plan includes: • Continuation of DP&L’s Transmission Cost Recovery Rider, Storm Rider and the bypassable standard offer energy rate for DP&L’s customers based on competitive bid auctions; • A placeholder rider to recover grid modernization costs, called the Infrastructure Investment Rider; and • A requirement to conduct both an ESP v. MRO Test and a prospective SEET no later than April 1, 2020. Separate from the ESP process, DP&L filed a petition seeking recovery of ongoing OVEC costs through a Legacy Generation Rider and was granted approval effective January 1, 2020. DP&L filed its ESP v. MRO Test to validate that the ESP is expected to be more favorable in the aggregate than what would be experienced under an MRO, and a prospective SEET, with the PUCO on April 1, 2020. DP&L is also subject to an annual retrospective SEET whereby it must demonstrate its return on equity is not significantly excessive. On October 23, 2020, DP&L entered into a Stipulation and Recommendation (the Settlement) with the staff of the PUCO and various customers, and organizations representing customers of DP&L and certain other parties with respect to, among other matters, DP&L’s applications pending at the PUCO for (i) approval of DP&L’s plan to modernize its distribution grid (the Smart Grid Plan), (ii) findings that DP&L passed the SEET for 2018 and 2019, and (iii) findings that DP&L’s current ESP 1 satisfies the SEET and the more favorable in the aggregate (MFA) regulatory test. The settlement is subject to, and conditioned upon, approval by the PUCO. A hearing was conducted January 11 - 15, 2021 for consideration of this settlement. The settlement would provide, among other items, for the following: • Approval of the Smart Grid Plan outlined in the Smart Grid Plan application filed by DP&L with the PUCO, as modified by the terms of the settlement, including, subject to offsetting operational benefits and certain other conditions, a return on and recovery of up to $249.0 million of Smart Grid Plan Phase 1 capital investments and recovery of operational and maintenance expenses through DP&L’s existing Infrastructure Investment Rider for a term of four years, under an aggregate cap of $267.6 million on the amount of such investments and expenses that is recoverable, and an acknowledgement that DP&L may file a subsequent application with the PUCO within three years seeking approvals for Phase 2 of the Smart Grid Plan; • A commitment by DP&L to invest in a customer information system and supporting technologies during Phase 1 of the Smart Grid Plan, with DP&L recovering a return on and of prudently incurred capital investments and operational and maintenance expenses, including deferred operational and maintenance expense amounts, in a future rate case; • A determination that DP&L’s ESP 1 satisfies the prospective SEET and the MFA regulatory test; • A recommendation by parties to the settlement that the PUCO also finds that DP&L satisfies the retrospective SEET for 2018 and 2019; • A commitment by DP&L to file an application with the PUCO no later than October 1, 2023 for a new electric security plan that does not seek to implement certain non-bypassable charges, including those related to provider of last resort risks, stability, or financial integrity; and • DP&L shareholder funding, in an aggregate amount of approximately $30.0 million over four years, for certain economic development discounts, incentives, and grants to certain commercial and industrial customers, including hospitals and manufacturers, assistance for low-income customers as well as the residents and businesses of the City of Dayton, and promotion of solar and resiliency development within DP&L’s service territory. Certain parties which intervened in the ESP proceedings have filed petitions for rehearing of the recent PUCO ESP orders; some of which seek to eliminate DP&L’s RSC from the ESP 1 rates that are currently in place and others seek to re-implement ESP 3, but without the DMR. We are unable to predict the outcomes of these petitions, but if these result in terms that are more adverse than DP&L's current ESP rate plan, it could have a material adverse effect on our results of operations, financial condition and cash flows. The parties signing the above-referenced Settlement have agreed to withdraw their respective petitions if the Settlement is approved by the PUCO without material modification. Decoupling On January 23, 2021 DP&L filed with the PUCO requesting approval to defer its decoupling costs consistent with the methodology approved in its Distribution Rate Case. If approved, deferral would be effective December 18, 2019 and going forward would reduce impacts of weather, energy efficiency programs and economic changes in customer demand. COVID-19 In response to the PUCO’s COVID-19 emergency orders, DP&L filed an Application on March 23, 2020, requesting waivers of certain rule and tariff requirements and deferral of certain costs and revenues including those related to deposits and reconnection fees, late payment fees, credit card fees; and waived or uncollected amounts associated with putting customers on payment plans. On May 20, 2020, the PUCO approved the application and required DP&L to file a plan outlining the timing and steps it plans to take in an effort to return to normal operations. The authorized deferral of those certain costs and revenues must be offset by COVID-19 related savings. DP&L filed its plan on July 15, 2020 and was approved by the PUCO on August 12, 2020. As a result, DP&L has recorded a $1.2 million regulatory asset as of December 31, 2020. Recovery of these deferrals will be addressed in a future rate proceeding. Distribution Rate Order On September 26, 2018 the PUCO issued the DRO establishing new base distribution rates for DP&L, which became effective October 1, 2018. The DRO approved, without modification, a stipulation and recommendation previously filed by DP&L, along with various intervening parties and the PUCO staff. The DRO established a revenue requirement for DP&L's electric service base distribution rates of $248.0 million. Distribution Rate Case On November 30, 2020, DP&L filed a new distribution rate case with the PUCO. This rate case proposes a revenue increase of $120.8 million per year and incorporates the DIR investments that were planned and approved in the last rate case but not yet included in distribution rates, other distribution investments since September 2015 and investments necessitated by the tornados that occurred on Memorial Day in 2019. The rate case also includes a proposal for increased tree-trimming expenses and certain customer demand-side management programs and recovery of prior-approved regulatory assets for tree trimming, uncollectible expenses and rate case expense. Regulatory Impact of Tax Reform On January 10, 2018 the PUCO initiated a proceeding to consider the impacts of the TCJA to determine the appropriate course of action to pass benefits resulting from the legislation on to ratepayers. The PUCO also directed Ohio utilities to record deferred liabilities for the estimated reduction in federal income tax resulting from the TCJA beginning January 1, 2018. Under the terms of the stipulation in the distribution rate case mentioned above, DP&L filed an application at the PUCO to refund eligible excess accumulated deferred income taxes (ADIT) and any related regulatory liability over a 10-year period with a minimum reversal of $4.0 million per year over the first five years. Excess ADIT related to depreciation life and method differences will be returned to customers in accordance with federal tax law and related regulations. DP&L’s rates were set using the new tax rate as a result of the distribution rate case. Consistent with the DRO requirement, DP&L filed an application on March 1, 2019 and subsequently entered into a stipulation to resolve all remaining TCJA items related to its distribution rates. That stipulation was approved by the PUCO on September 26, 2019. In accordance with terms of that stipulation, DP&L will return a total of $65.1 million ($83.2 million when including taxes associated with the refunds). In connection with this stipulation, we reduced our long-term regulatory liability related to deferred income taxes by $23.4 million in 2019. See Note 8 – Income Taxes for additional information. FERC Proceedings On November 15, 2018 the FERC issued a Notice of Proposed Rulemaking (NOPR) to address amortization of excess accumulated deferred income taxes resulting from the TCJA and their impact on transmission rates. Such notice requires all public utility transmission providers with stated transmission rates under an Open Access Transmission Tariff (OATT) to determine the amount of excess deferred income taxes caused by the TCJA. On March 3, 2020, DP&L filed an application before the FERC seeking to change its existing stated transmission rates to formula transmission rates that would be updated each calendar year. This filing was approved and made effective as of May 3, 2020, subject to possible refunds if the approved rates were modified. An uncontested settlement was filed December 10, 2020, which if approved, would be a reduction from the proposed rate which would require refunds for transmission services provided and billed after May 3, 2020. This settlement provides for an increase of approximately $7.0 million on an annualized basis from the rates in effect prior to the March 3, 2020 filing that was allowed to go into effect May 3, 2020. Among other things, the settlement establishes new depreciation rates for DP&L’s transmission assets and an authorized return on equity of 9.85%, which would rise to 9.99% if the FERC were to approve in a separate ongoing proceeding a return on equity “adder” to recognize DP&L’s continued membership in PJM. The settlement is pending FERC approval which is expected early in the first quarter of 2021. The NOPR, therefore, was addressed and resolved as part of this formula transmission rate proceeding . PJM Transmission Enhancement Settlement On May 31, 2018, the FERC issued an Order on Contested Settlement regarding the cost allocation method for existing and new transmission facilities contained in the PJM Interconnection’s OATT. The FERC order approved the settlement which reduces DP&L’s transmission costs through PJM beginning in August 2018, including credits to reimburse DP&L for amounts overcharged in prior years. DP&L estimates the prior overcharge by PJM to be $40.8 million, of which approximately $32.1 million has been repaid to DP&L through December 31, 2020 and $1.7 million is classified as current in "Accounts receivable, net" and $7.0 million is classified as non-current in "Other non-current assets" on the accompanying Consolidated Balance Sheet. All of the transmission charges and credits impacted by this FERC order are items that are included for full recovery in DP&L’s non-bypassable TCRR. Accordingly, DP&L has also established offsetting regulatory liabilities. While this development will have a temporary cash flow benefit to DP&L, there is no impact to operating income or net income as all credits will be passed to DP&L’s customers through the TCRR, which began in November 2018. Regulatory Assets and Liabilities In accordance with FASC 980, we have recognized total regulatory assets of $221.1 million and $193.5 million at December 31, 2020 and 2019, respectively, and total regulatory liabilities of $236.3 million and $271.5 million at December 31, 2020 and 2019, respectively. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 1 – Overview and Summary of Significant Accounting Policies for accounting policies regarding Regulatory Assets and Liabilities. The following table presents DPL’s Regulatory assets and liabilities: Type of Recovery Amortization Through December 31, $ in millions 2020 2019 Regulatory assets, current: Undercollections to be collected through rate riders A/B 2021 $ 26.8 $ 19.1 Rate case expenses being recovered in base rates B 2021 0.7 0.6 Total regulatory assets, current 27.5 19.7 Regulatory assets, non-current: Pension benefits B Ongoing 94.4 83.9 Unrecovered OVEC charges C Undetermined 28.9 29.1 Regulatory compliance costs B Undetermined 6.3 6.3 Smart grid and AMI costs B Undetermined 8.5 8.5 Unamortized loss on reacquired debt B Various 7.1 10.0 Deferred storm costs A Undetermined 11.5 5.1 Deferred vegetation management and other A/B Undetermined 15.7 12.7 Decoupling deferral C Undetermined 13.8 13.8 Uncollectible deferral C Undetermined 7.4 4.4 Total regulatory assets, non-current 193.6 173.8 Total regulatory assets $ 221.1 $ 193.5 Regulatory liabilities, current: Overcollection of costs to be refunded through rate riders A/B 2021 $ 18.0 $ 27.9 Total regulatory liabilities, current 18.0 27.9 Regulatory liabilities, non-current: Estimated costs of removal - regulated property Not Applicable 138.8 143.6 Deferred income taxes payable through rates Various 61.2 73.6 TCJA regulatory liability B Ongoing 7.2 12.9 PJM transmission enhancement settlement A 2025 7.0 8.9 Postretirement benefits B Ongoing 4.1 4.6 Total regulatory liabilities, non-current 218.3 243.6 Total regulatory liabilities $ 236.3 $ 271.5 A – Recovery of incurred costs plus rate of return. B – Recovery of incurred costs without a rate of return. C – Recovery not yet determined, but recovery is probable of occurring in future rate proceedings. Current regulatory assets and liabilities primarily represent costs that are being recovered per specific rate order; recovery for the remaining costs is probable, but not certain. These costs include: (i) the Energy Efficiency Rider, (ii) the Alternative Energy Rider, (iii) the Legacy Generation Resource Rider, (iv) the Economic Development Rider and the (v) Transmission Cost Recovery Rider. Also included are the current portion of deferred fuel costs and rate case expense costs which do not earn a return and are described in greater detail below. Current regulatory liabilities include the overcollection of competitive bidding energy and auction costs and certain transmission related costs, including the current portion of the PJM transmission enhancement settlement and the TCJA regulatory liability (see above). DP&L is earning a return on $16.3 million of this net current deferral including: (i) the Energy Efficiency Rider, (ii) the Alternative Energy Rider, (iii) the Legacy Generation Resource Rider, (iv) the Economic Development Rider and (v) the Transmission Cost Recovery Rider. These regulatory assets are partially offset by the overcollection of competitive bidding energy and auction costs. Pension benefits represent the qualifying FASC 715 “Compensation - Retirement Benefits” costs of our regulated operations that for ratemaking purposes are deferred for future recovery. We recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory asset represents the regulated portion that would otherwise be charged as a loss to OCI. As per PUCO and FERC precedents, these costs are probable of future rate recovery. Unrecovered OVEC charges includes the portion of charges from OVEC that were not recoverable through DP&L’s Fuel Rider from October 2014 through October 2017. Additionally, it includes net OVEC costs from December 19, 2019 through December 31, 2019. DP&L expects to recover these costs through a future rate proceeding. Beginning on November 1, 2017, through December 18, 2019, current OVEC costs were being recovered through DP&L’s reconciliation rider which was authorized as part of the ESP 3. Beginning January 1, 2020, DP&L began recovering its current net OVEC costs through its Legacy Generation Rider, established pursuant to ORC 4928.148. Regulatory compliance costs represent the long-term portion of the regulatory compliance costs which include the following costs: (i) Consumer Education Campaign, (ii) Retail Settlement System, (iii) Generation Separation, (iv) Bill Format Redesign, (v) Green Pricing Tariff and (vi) Supplier Consolidated Billing. All of these costs except for Generation Separation earn a return. These costs were being recovered over a three-year period that began November 1, 2017 through a rider approved in the ESP 3. That rider was eliminated with the approval of the ESP 1 rate plan, so the balance as of December 18, 2019 remains a regulatory asset for future recovery. Rate case expenses represents costs associated with preparing distribution rate cases. DP&L was granted recovery of these costs for the 2015 case which do not earn a return, as part of the DRO. Recovery of costs for the 2020 case were included in the pending filing. Smart Grid and AMI costs represent costs incurred as a result of studying and developing distribution system upgrades and implementation of AMI. In a PUCO order on January 5, 2011, the PUCO indicated that it expects DP&L to continue to monitor other utilities’ Smart Grid and AMI programs and to explore the potential benefits of investing in Smart Grid and AMI programs and that DP&L will, when appropriate, file new Smart Grid and/or AMI business cases in the future. These costs are included in the October 23, 2020 settlement described above. Unamortized loss on reacquired debt represents losses on long-term debt reacquired or redeemed in prior periods that have been deferred. These deferred losses are being amortized over the lives of the original issues in accordance with the rules of the FERC and the PUCO. Deferred storm costs represent the long-term portion of deferred costs for major storms which occurred during 2018, 2019 and 2020. DP&L plans to file petitions seeking recovery of each calendar year of storm costs in the following calendar year. DP&L plans to file petitions seeking recovery of cash calendar year's storm costs in the following calendar year. Recovery of these costs is probable, but not certain. Vegetation management costs represents costs incurred from outside contractors for tree trimming and other vegetation management services. Calculation terms were agreed to in the stipulation approved in the DRO. The terms were an annual baseline of $10.7 million in 2018 and $15.7 million thereafter. Amounts over the baseline will be deferred subject to an annual deferral maximum of $4.6 million. Annual spending less than the vegetation management baseline amount will result in a reduction to the regulatory asset or creation of a regulatory liability. These costs are included in DP&L's pending distribution rate case application. Decoupling deferral represents the change in the revenue requirement based on a per customer methodology in the stipulation approved in the DRO and includes deferrals through December 18, 2019. These costs were previously recovered through a Decoupling Rider; however, DP&L withdrew its application in the ESP 3 and in doing so, the PUCO ordered on December 18, 2019 in the ESP 1 order, that DP&L no longer has a Decoupling Rider. As described above, DP&L filed a petition seeking authority to record a regulatory asset to accrue revenues that would have otherwise been collected through the Decoupling Rider. Uncollectible deferral represents deferred uncollectible expense associated with the nonpayment of electric service, less the revenues associated with the bypassable uncollectible portion of the standard offer rate. The DRO established that these costs would be recovered in a rider outside of base rates, thus no uncollectible expense is included in base rates. These costs are included in our pending distribution rate case. Estimated costs of removal - regulated property reflect an estimate of amounts collected in customer rates for costs that are expected to be incurred in the future to remove existing transmission and distribution property from service when the property is retired. Deferred income taxes payable through rates represent deferred income tax liabilities recognized from the normalization of flow-through items as the result of taxes previously charged to customers. A deferred income tax asset or liability is created from a difference in income recognition between tax laws and accounting methods. As a regulated utility, DP&L includes in ratemaking the impacts of current income taxes and changes in deferred income tax liabilities or assets. Accordingly, this liability reflects the estimated deferred taxes DP&L expects to return to customers in future periods. TCJA regulatory liability represents the long-term portion of both protected and unprotected excess ADIT for both transmission and distribution portions, grossed up to reflect the revenue requirement. As a part of the DRO, DP&L agreed that savings from the TCJA attributable to distribution facilities, including the excess ADIT and the regulatory liability, constitute amounts that will be returned to customers. As a result of the TCJA and subsequent DRO, DP&L entered into a stipulation to resolve all remaining TCJA items related to its distribution rates, including a proposal to return no less than $4.0 million per year for the first five years unless fully returned in the first five years via a tax savings cost rider for the distribution portion of the balance. On September 26, 2019, an order approved the stipulation in its entirety. PJM Transmission Enhancement Settlement liability represents the Transmission Enhancement Settlement charges for which DP&L is due a refund per FERC Order EL05-121-009 issued on May 31, 2018. The Order states that customers are due a refund for part of these charges which will be received starting August 2018 through 2025. Refunds received will be returned to customers via the transmission cost rider. Postretirement benefits represent the qualifying FASC 715 “Compensation – Retirement Benefits” gains related to our regulated operations that, for ratemaking purposes, are probable of being reflected in future rates. We recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory liability represents the regulated portion that would otherwise be reflected as a gain to OCI. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment | Property, Plant and Equipment The following is a summary of DPL’s Property, plant and equipment with corresponding composite depreciation rates at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 $ in millions Composite Rate Composite Rate Regulated: Transmission $ 273.0 3.2% $ 235.8 3.9% Distribution 1,453.7 4.0% 1,364.2 4.1% General 17.7 7.6% 16.5 9.0% Non-depreciable 65.1 N/A 61.6 N/A Total regulated 1,809.5 1,678.1 Unregulated: Other 24.8 4.5% 19.0 7.6% Non-depreciable 5.0 N/A 4.8 N/A Total unregulated 29.8 23.8 Total property, plant and equipment in service $ 1,839.3 3.8% $ 1,701.9 4.0% In June 2018, DP&L closed on a transmission asset transaction with Duke and AEP, where ownership stakes in certain previously co-owned transmission assets were exchanged to eliminate co-ownership. Each previously co-owned transmission asset became wholly-owned by one of DP&L, Duke or AEP after the transaction. This transaction also resulted in cash proceeds to DP&L of $10.6 million and no gain or loss was recorded on the transaction. AROs We recognized AROs in accordance with GAAP which requires legal obligations associated with the retirement of long-lived assets to be recognized at their fair value at the time those obligations are incurred. Upon initial recognition of a legal liability, costs are capitalized as part of the related long-lived asset and depreciated over the useful life of the related asset. Our legal obligations were associated with the retirement of our long-lived assets, consisting primarily of asbestos abatement and ash disposal facilities. As of December 31, 2020, our generation AROs have all been settled through the sale of our interest in Conesville and the Hutchings Coal Station. See Note 16 – Dispositions for additional information. Estimating the amount and timing of future expenditures of this type requires significant judgment. Previously, management routinely updated these estimates as additional information became available. Changes in the Liability for AROs 2020 2019 Balance as of January 1 $ 4.7 $ 4.7 Settlements (a) (4.7) — Balance as of December 31 $ — $ 4.7 (a) Settlements related to sale of DP&L's Hutchings Coal Station. See Note 16 – Dispositions for more information on the sale of the Hutchings Coal Station. Asset Removal Costs We continue to record costs of removal for our regulated transmission and distribution assets through our depreciation rates and recover those amounts in rates charged to our customers. There are no known legal AROs associated with these assets. We have recorded $138.8 million and $143.6 million in estimated costs of removal at December 31, 2020 and 2019, respectively, as regulatory liabilities for our transmission and distribution property. These amounts represent the excess of the cumulative removal costs recorded through depreciation rates versus the cumulative removal costs actually incurred. See Note 3 – Regulatory Matters for additional information. Changes in the Regulatory Liability for Transmission and Distribution Asset Removal Costs 2020 2019 Balance as of January 1 $ 143.6 $ 139.1 Additions 15.6 14.8 Settlements (20.4) (10.3) Balance as of December 31 $ 138.8 $ 143.6 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Fair Value Measurements | Fair Value The fair values of our financial instruments are based on published sources for pricing when possible. We rely on valuation models only when no other method is available to us. The fair value of our financial instruments represents estimates of possible value that may or may not be realized in the future. The table below presents the fair value and cost of our non-derivative financial instruments at December 31, 2020 and 2019. See Note 6 – Derivative Instruments and Hedging Activities for the fair values of our derivative instruments. December 31, 2020 December 31, 2019 $ in millions Cost Fair Value Cost Fair Value Assets Money market funds $ 0.3 $ 0.3 $ 0.3 $ 0.3 Equity securities 2.1 4.5 2.3 4.2 Debt securities 4.0 4.1 4.0 4.1 Hedge funds — — 0.1 0.1 Tangible assets — — 0.1 0.1 Total assets $ 6.4 $ 8.9 $ 6.8 $ 8.8 Carrying Value Fair Value Carrying Value Fair Value Liabilities Long-term debt $ 1,393.6 $ 1,571.6 $ 1,363.1 $ 1,404.0 Fair Value Hierarchy Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. These inputs are then categorized as: • Level 1 (quoted prices in active markets for identical assets or liabilities); • Level 2 (observable inputs such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active); or • Level 3 (unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability). Valuations of assets and liabilities reflect the value of the instrument including the values associated with counterparty risk. We include our own credit risk and our counterparty’s credit risk in our calculation of fair value using global average default rates based on an annual study conducted by a large rating agency. We did not have any transfers of the fair values of our financial instruments among Level 1, Level 2 or Level 3 of the fair value hierarchy during the years ended December 31, 2020 and 2019. Debt The fair value of debt is based on current public market prices for disclosure purposes only. Unrealized gains or losses are not recognized in the financial statements as debt is presented at the carrying value, net of unamortized premium or discount, in the financial statements. The debt amounts include the current portion payable in the next twelve months and have maturities that range from 2025 to 2061. Master Trust Assets DP&L established a Master Trust to hold assets that could be used for the benefit of employees participating in employee benefit plans and these assets are not used for general operating purposes. ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities” was effective as of January 1, 2018. This ASU requires the change in the fair value of equity instruments to be recorded in income rather than in OCI. Equity Instruments were defined to include all mutual funds, regardless of the underlying investments. Therefore, as of January 1, 2018, AOCI of $1.6 million ($1.0 million net of tax) was reversed to Accumulated Deficit and all future changes to fair value on the Master Trust Assets will be included in income in the period that the changes occur. These assets are primarily comprised of open-ended mutual funds, which are valued using the net asset value per unit. These investments are recorded at fair value within Other non-current assets on the consolidated balance sheets and classified as equity securities. Gains and losses on these assets were not material during the years ended December 31, 2020, 2019 or 2018. The fair value of assets and liabilities at December 31, 2020 and 2019 and the respective category within the fair value hierarchy for DPL was determined as follows: $ in millions Fair Value at December 31, 2020 (a) Fair Value at December 31, 2019 (a) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Master trust assets Money market funds $ 0.3 $ — $ — $ 0.3 $ 0.3 $ — $ — $ 0.3 Equity securities — 4.5 — 4.5 — 4.2 — 4.2 Debt securities — 4.1 — 4.1 — 4.1 — 4.1 Hedge funds — — — — — 0.1 — 0.1 Tangible assets — — — — — 0.1 — 0.1 Total Master trust assets 0.3 8.6 — 8.9 0.3 8.5 — 8.8 Derivative assets Interest rate hedge — — — — — 0.1 — 0.1 Total Derivative assets — — — — — 0.1 — 0.1 Total assets $ 0.3 $ 8.6 $ — $ 8.9 $ 0.3 $ 8.6 $ — $ 8.9 Liabilities Long-term debt $ — $ 1,554.2 $ 17.4 $ 1,571.6 $ — $ 1,386.5 $ 17.5 $ 1,404.0 Total liabilities $ — $ 1,554.2 $ 17.4 $ 1,571.6 $ — $ 1,386.5 $ 17.5 $ 1,404.0 (a) Includes credit valuation adjustment Our financial instruments are valued using the market approach in the following categories: • Level 1 inputs are used for money market accounts that are considered cash equivalents. The fair value is determined by reference to quoted market prices and other relevant information generated by market transactions. • Level 2 inputs are used to value derivatives such as interest rate hedge contracts which are valued using a benchmark interest rate. Other Level 2 assets include open-ended mutual funds in the Master Trust, which are valued using the end of day NAV per unit. • Level 3 inputs such as certain debt balances are considered a Level 3 input because the notes are not publicly traded. Our long-term debt is fair valued for disclosure purposes only. All of the inputs to the fair value of our derivative instruments are from quoted market prices. Our long-term debt is fair valued for disclosure purposes only and most of the fair values are determined using quoted market prices in inactive markets. These fair value inputs are considered Level 2 in the fair value hierarchy. As the Wright-Patterson Air Force Base note is not publicly traded, fair value is assumed to equal carrying value. These fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs. Additional Level 3 disclosures are not presented since our long-term debt is not recorded at fair value. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities In the normal course of business, DPL enters into various financial instruments, including derivative financial instruments. We use derivatives principally to manage the interest rate risk associated with our long-term debt. The derivatives that we use to economically hedge these risks are governed by our risk management policies for forward and futures contracts. Our net positions are continually assessed within our structured hedging programs to determine whether new or offsetting transactions are required. We monitor and value derivative positions monthly as part of our risk management processes. We use published sources for pricing, when possible, to mark positions to market. All of our derivative instruments are used for risk management purposes and are designated as cash flow hedges if they qualify under FASC 815 for accounting purposes. DPL's interest rate swaps were designated as a cash flow hedge and had a combined notional amount of $140.0 million as of December 31, 2019. These swaps settled during 2020 when the related debt was repaid. Cash Flow Hedges As part of our risk management processes, we identify the relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. The fair values of cash flow hedges determined by current public market prices will continue to fluctuate with changes in market prices up to contract expiration. With the adoption of ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted improvements to Accounting for Hedging Activities effective January 1, 2019, we will no longer be required to calculate effectiveness and thus the entire change in the fair value of a hedging instrument will be recorded in other comprehensive income and amounts deferred will be reclassified to earnings in the same income statement line as the hedged item in the period in which it settles. In August 2020, the two interest rate swaps to hedge the variable interest on the $140.0 million variable interest rate tax-exempt First Mortgage Bonds expired, as the associated debt reached maturity. The interest rate swaps had a combined notional amount of $140.0 million and settled monthly based on a one-month LIBOR. The AOCL associated with the swaps was amortized out of AOCL into interest expense over the life of the underlying debt. We had previously entered into interest rate derivative contracts to manage interest rate exposure related to anticipated borrowings of fixed-rate debt. These interest rate derivative contracts were settled in 2013 and we continue to amortize amounts out of AOCL into interest expense. We use the income approach to value the swaps, which consists of forecasting future cash flows based on contractual notional amounts and applicable and available market data as of the valuation date. The most common market data inputs used in the income approach include volatilities, spot and forward benchmark interest rates (LIBOR). Forward rates with the same tenor as the derivative instrument being valued are generally obtained from published sources, with these forward rates being assessed quarterly at a portfolio-level for reasonableness versus comparable published rates. We reclassify gains and losses on the swaps out of AOCL and into earnings in those periods in which hedged interest payments occur. The following tables provide information on gains or losses recognized in AOCL for the cash flow hedges for the periods indicated: Years ended December 31, 2020 2019 2018 $ in millions (net of tax) Interest Rate Power Interest Rate Power Interest Rate Beginning accumulated derivative gain in AOCL $ 14.5 $ 0.4 $ 16.6 $ (2.8) $ 17.5 Net gains / (losses) associated with current period hedging transactions — — (1.0) — (0.1) Net (gains) / losses reclassified to earnings: Interest Expense (0.9) — (1.1) — (0.8) (Income) / loss from discontinued operations before income tax — (0.4) — 3.2 — Ending accumulated derivative gain in AOCL $ 13.6 $ — $ 14.5 $ 0.4 $ 16.6 Portion expected to be reclassified to earnings in the next twelve months $ (0.8) When applicable, DPL has elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivative agreements. As of December 31, 2020 and 2019, DPL did not have any offsetting positions. The following table summarizes the fair value, balance sheet classification and hedging designation of DPL’s interest rate swaps. December 31, $ in millions Hedging Designation Balance sheet classification 2020 2019 Interest rate swap Cash Flow Hedge Prepayments and other current assets $ — $ 0.1 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Instrument [Line Items] | |
Debt Disclosure | Long-term debt Long-term debt $ in millions Interest Rate Maturity December 31, 2020 December 31, 2019 First Mortgage Bonds 3.95% 2049 $ 425.0 $ 425.0 First Mortgage Bonds 3.20% 2040 140.0 — Tax-exempt First Mortgage Bonds - rates from: 1.16% - 2.47% (a) and 2.4% - 3.07% (b) 2020 — 140.0 U.S. Government note 4.20% 2061 17.4 17.5 Unamortized deferred financing costs (5.7) (5.4) Unamortized debt discounts and premiums, net (2.6) (2.7) Total long-term debt at subsidiary 574.1 574.4 Senior unsecured bonds 7.25% 2021 — 380.0 Senior unsecured bonds 4.125% 2025 415.0 — Senior unsecured bonds 4.35% 2029 400.0 400.0 Note to DPL Capital Trust II (c) 8.125% 2031 15.6 15.6 Unamortized deferred financing costs (10.2) (5.9) Unamortized debt discounts and premiums, net (0.9) (1.0) Total long-term debt 1,393.6 1,363.1 Less: current portion (0.2) (139.8) Long-term debt, net of current portion $ 1,393.4 $ 1,223.3 (a) Range of interest rates for the year ended December 31, 2020. (b) Range of interest rates for the year ended December 31, 2019. (c) Note payable to related party. See Note 12 – Related Party Transactions for additional information. At December 31, 2020, maturities of long-term debt are summarized as follows: Due during the years ending December 31, $ in millions 2021 $ 0.2 2022 0.2 2023 0.2 2024 0.2 2025 415.2 Thereafter 997.0 1,413.0 Unamortized discounts and premiums, net (3.5) Deferred financing costs, net (15.9) Total long-term debt $ 1,393.6 Premiums or discounts recognized at the Merger date are amortized over the life of the debt using the effective interest method. Revolving Credit Facilities At December 31, 2020 and December 31, 2019, the DPL revolving credit facility had outstanding borrowings of $80.0 million and $104.0 million, respectively. At December 31, 2020 and December 31, 2019, the DP&L revolving credit facility had outstanding borrowings of $20.0 million and $40.0 million, respectively. Significant Transactions On July 31, 2020, DP&L issued $140.0 million of First Mortgage Bonds and on August 3, 2020 used the proceeds to purchase at par value the $140.0 million of outstanding tax-exempt Ohio Air Quality Development Authority (OAQDA) Collateralized Pollution Control Revenue Refunding Bonds that had been issued in 2015. The new First Mortgage Bonds carry an interest rate of 3.20% and mature on July 31, 2040. The OAQDA Revenue bonds have not been legally cancelled and can be re-issued at the discretion of DP&L at any time. These bonds will be held in trust while we continue to evaluate market conditions and explore suitable long-term financing alternatives. On June 1, 2020 DPL amended its secured revolving credit facility. As a result of the amendment, the borrowing limit was reduced from $125.0 million to $110.0 million, the Total Debt to EBITDA covenant was eliminated, the EBITDA to Interest Expense covenant was reduced from 2.25 to 1.00 to 1.70 to 1.00, increasing to 1.75 to 1.00 as of September 30, 2022 and 2.00 to 1.00 as of December 31, 2022, and a trailing-twelve months minimum EBITDA covenant of $125.0 million was added, increasing to $130.0 million as of September 30, 2022 and $150.0 million as of December 31, 2022. Starting with the quarter ended September 30, 2021, the borrowing limit will be reduced by $5.0 million per quarter should DPL’s Total Debt to EBITDA ratio calculated for the period of four consecutive quarters exceed 7.00 to 1.00. On June 19, 2020 DPL closed a $415.0 million issuance of senior unsecured notes. These notes carry an interest rate of 4.125% and mature on July 1, 2025. Proceeds from the issuance and cash on hand were used to redeem in-full the remaining balance of $380.0 million of DPL's 7.25% senior unsecured notes. These bonds were redeemed at par plus accrued interest and a make-whole premium of $30.8 million on July 20, 2020. On June 19, 2019, DP&L amended and restated its unsecured revolving credit facility. The revolving credit facility has a $175.0 million borrowing limit, with a $75.0 million letter of credit sublimit, a feature that provides DP&L the ability to increase the size of the facility by an additional $100.0 million, a maturity date of June 2024, and a provision that provides DP&L the option to request up to two one-year extensions of the maturity date. On June 19, 2019, DPL amended and restated its secured revolving credit facility. The revolving credit facility has a $125.0 million borrowing limit, with a $75.0 million letter of credit sublimit, a feature that provides DPL the ability to increase the size of the facility by an additional $50.0 million, and a maturity date of June 2023. On June 6, 2019, DP&L closed on a $425.0 million issuance of First Mortgage Bonds due 2049. These new bonds carry an interest rate of 3.95%. The proceeds of this issuance were used to repay in full the outstanding principal of $435.0 million of DP&L's variable rate Term Loan B credit agreement. On April 17, 2019, DPL closed a $400.0 million issuance of senior unsecured notes. These notes carry an interest rate of 4.35% and mature on April 15, 2029. Proceeds from the issuance and cash on hand were used to settle a partial redemption for $400.0 million of DPL's 7.25% senior unsecured notes maturing October 15, 2021, as discussed below. After the redemption, the DPL 7.25% senior notes due in 2021 had an outstanding balance of $380.0 million. On April 8, 2019, DPL issued a Notice of Partial Redemption on the DPL 7.25% Senior Notes due 2021. DPL redeemed $400.0 million of the $780.0 million outstanding principal amount of these notes on May 7, 2019. These bonds were redeemed at par plus accrued interest and a make-whole premium of $41.4 million. On March 4, 2019, DPL issued a Notice of Full Redemption on the DPL 6.75% Senior Notes due 2019. DPL redeemed the remaining $99.0 million outstanding principal amount of these notes on April 4, 2019. These bonds were redeemed at par plus accrued interest and a make-whole premium of $1.5 million with cash on hand. Debt Covenants and Restrictions DPL’s revolving credit agreement has two financial covenants. The first financial covenant, a minimum EBITDA, calculated at the end of each fiscal quarter for the four prior fiscal quarters, of $125.0 million is required, stepping up to $130.0 million on September 30, 2022 and $150.0 million on December 31, 2022. As of December 31, 2020, this financial covenant was in compliance. The second financial covenant is an EBITDA to Interest Expense ratio that is calculated, at the end of each fiscal quarter, by dividing EBITDA for the four prior fiscal quarters by the consolidated interest charges for the same period. The ratio, per the agreement, is to be not less than 1.70 to 1.00, and steps up to 1.75 to 1.00 on September 30, 2022 and 2.00 to 1.00 as of December 31, 2022. As of December 31, 2020, this financial covenant was in compliance. DPL’s secured revolving credit agreement also restricts dividend payments from DPL to AES, such that DPL cannot make dividend payments unless at the time of, and/or as a result of the distribution, (i) DPL’s leverage ratio does not exceed 0.67 to 1.00 and DPL’s interest coverage ratio is not less than 2.50 to 1.00 or, if such ratios are not within the parameters, (ii) DPL’s senior long-term debt rating from two of the three major credit rating agencies is at least investment grade. As a result, as of December 31, 2020, DPL was prohibited from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries). DP&L's unsecured revolving credit facility and Bond Purchase Agreement (financing document entered into in connection with the issuance of DP&L's First Mortgage Bonds, on July 31, 2020) has one financial covenant. The covenant measures Total Debt to Total Capitalization and is calculated, at the end of each fiscal quarter, by dividing total debt at the end of the quarter by total capitalization at the end of the quarter. DP&L’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. This financial covenant was in compliance as of December 31, 2020. DP&L does not have any meaningful restrictions in its debt financing documents prohibiting dividends to its parent, DPL. As of December 31, 2020, DP&L and DPL were in compliance with all debt covenants, including the financial covenants described above. Substantially all property, plant & equipment of DP&L is subject to the lien of the mortgage securing DP&L’s First and Refunding Mortgage. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Line Items] | |
Income Taxes | Income Taxes DPL’s components of income tax expense for both continuing and discontinued operations were as follows: Years ended December 31, $ in millions 2020 2019 2018 Components of tax expense / (benefit) Federal - current $ (45.1) $ (22.0) $ 40.0 State and Local - current (0.1) 0.6 0.4 Total current (45.2) (21.4) 40.4 Federal - deferred 38.7 14.1 (9.6) State and local - deferred 1.1 1.1 (0.1) Total deferred 39.8 15.2 (9.7) Tax expense / (benefit) $ (5.4) $ (6.2) $ 30.7 Effective and Statutory Rate Reconciliation The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to DPL's effective tax rate, as a percentage of total income before taxes for the years ended December 31, 2020, 2019 and 2018: Years ended December 31, 2020 2019 2018 Statutory Federal tax rate 21.0 % 21.0 % 21.0 % State taxes, net of Federal tax benefit (13.1) % 1.4 % 0.1 % AFUDC - equity (23.6) % (0.1) % (0.1) % Depreciation of flow-through differences 94.8 % (28.2) % (4.6) % Amortization of investment tax credits 4.1 % (0.3) % (0.3) % Deferred tax adjustments — % — % 15.5 % Permanent differences — % — % 0.1 % Other, net 1.2 % (0.1) % (1.2) % Effective tax rate 84.4 % (6.3) % 30.5 % Deferred Income Taxes Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and (b) operating loss carryforwards. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. Investment tax credits related to utility property have been deferred and are being amortized over the estimated useful lives of the related property. The components of our deferred taxes are as follows: December 31, $ in millions 2020 2019 Net non-current assets / (liabilities) Depreciation / property basis $ (160.5) $ (118.3) Income taxes recoverable 14.4 17.1 Regulatory assets (21.0) (24.8) Investment tax credit 0.6 0.6 Compensation and employee benefits (1.7) 2.2 Intangibles (0.4) (0.4) Long-term debt (1.3) (2.1) Other (a) (7.3) (8.0) Net non-current liabilities $ (177.2) $ (133.7) (a) The Other caption includes deferred tax assets of $39.0 million in 2020 and $29.0 million in 2019 related to state and local tax net operating loss carryforwards, with related valuation allowances of $39.0 million in 2020 and $29.0 million in 2019. These net operating loss carryforwards expire from 2020 to 2037. U.S. Tax Reform On December 22, 2017, the U.S. enacted the TCJA. The TCJA significantly changed U.S. corporate income tax law. We completed our calculation of the impact of the TCJA in our income tax provision for the year ended December 31, 2018 in accordance with our understanding of the TCJA and guidance available, and as a result recognized $15.5 million of discrete tax expense in the fourth quarter of 2018. Of this total, tax benefits of $1.2 million are included in continuing operations in 2018. These amounts result from the remeasurement of certain deferred tax assets and liabilities as the rates changed from 35% to 21%. The most material deferred taxes to be remeasured related to property, plant and equipment. The remeasurements of deferred tax assets and liabilities related to regulated utility property of $17.0 million at December 31, 2018 was recorded as a regulatory liability and was a non-cash adjustment. Per the terms of DP&L's ESP 3, DPL could not make any tax-sharing payments to AES and AES would forgo collection of the payments during the term of the DMR. In November 2019, the PUCO discontinued the DMR. Consequently, starting in 2020, DPL is no longer subject to this restriction. During the term of the DMR, current and non-current existing tax sharing liabilities with AES were converted into additional equity investment in DPL, per the requirements of the order. The ESP 3 also provided that none of these conversions to equity would be reversed. During the year ended December 31, 2019, we had a current tax benefit and there was no conversion of current tax liabilities in 2019. During the year ended December 31, 2020, DPL received a payment from AES of $52.0 million against its tax receivable balance as part of a $150.0 million payment from AES. See Note 10 – Shareholder's Deficit for additional information. The following table presents the tax expense / (benefit) related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss. Years ended December 31, $ in millions 2020 2019 2018 Tax expense / (benefit) $ (2.6) $ (0.5) $ 0.2 Uncertain Tax Positions We apply the provisions of GAAP relating to the accounting for uncertainty in income taxes. The balance of unrecognized tax benefits was $1.4 million at December 31, 2020 and $3.5 million at December 31, 2019. There was a decrease of $2.1 million in 2020 due to statute of limitation lapses. Of the December 31, 2020 balance of unrecognized tax benefits, $1.4 million is due to uncertainty in the timing of deductibility. The amount anticipated to result in a net decrease to unrecognized tax benefits within 12 months of December 31, 2020 is estimated to be $0.0 million. We recognize interest and penalties related to unrecognized tax benefits in Income tax expense. The amounts accrued and the tax expense / (benefit) recorded were not material for each period presented. DPL is no longer subject to U.S. or state income tax examinations for tax years through 2011, but is open for all subsequent periods. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Benefit Plans | Benefit Plans Defined Contribution Plans DP&L sponsors two defined contribution plans. One is for non-union employees (the management plan) and one is for collective bargaining employees (the union plan). Both plans are qualified under Section 401 of the Internal Revenue Code. Certain non-union and union employees become eligible to participate in their respective plan upon date of hire. Participants may elect to contribute up to 85% of eligible compensation to their plan. Non-union participant contributions are matched 100% on the first 1% of eligible compensation and 50% on the next 5% of eligible compensation and they are fully vested in their employer contributions after 2 years of service. Union participant contributions are matched 150% but are capped at $2,600 for 2020 and they are fully vested in their employer contributions after 3 years of service. All participants are fully vested in their own contributions. We contributed $3.2 million, $3.1 million and $3.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. DP&L matching contributions are paid quarterly, in arrears. Therefore, the contributions by year include the fourth quarter matching contribution that is paid in the following year. DP&L also contributes an annual bonus to the accounts of its union participants. This payment is typically made in January of the following year. Defined Benefit Plans DP&L sponsors a traditional defined benefit pension plan for most of the employees of DPL and its subsidiaries. For collective bargaining employees, the defined benefits are based on a specific dollar amount per year of service. For all other employees (management employees), the traditional defined benefit pension plan is based primarily on compensation and years of service. As of December 31, 2010, this traditional pension plan formula was closed to new management employees. A participant is 100% vested in all amounts credited to his or her account upon the completion of five vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. Employees that transferred from DP&L to the Service Company maintain their previous eligibility to participate in the DP&L pension plan. Almost all management employees beginning employment on or after January 1, 2011 participate in a cash balance pension plan formula. Similar to the traditional pension plan for management employees, the cash balance benefits are based on compensation and years of service. A participant shall become 100% vested in all amounts credited to his or her account upon the completion of three vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. Vested benefits in the cash balance plan are fully portable upon termination of employment. In addition, we have a Supplemental Executive Retirement Plan (SERP) for certain retired key executives. The SERP has an immaterial unfunded liability related to agreements for retirement benefits of certain terminated and retired key executives. We recognize an asset for a plan’s overfunded status and a liability for a plan’s underfunded status and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. For the transmission and distribution areas of our electric business, these amounts are recorded as regulatory assets and liabilities which represent the regulated portion that would otherwise be charged or credited to AOCL. We have historically recorded these costs on the accrual basis, and this is how these costs have been historically recovered through customer rates. This factor, combined with the historical precedents from the PUCO and FERC, make these costs probable of future rate recovery. Postretirement Benefits Qualified employees who retired prior to 1987 and their dependents are eligible for health care and life insurance benefits until their death, while qualified employees who retired after 1987 are eligible for life insurance benefits and partially subsidized health care. The partially subsidized health care is at the election of the employee, who pays most of the cost, and is available only from their retirement until they are covered by Medicare. We have funded a portion of the union-eligible benefits using a Voluntary Employee Beneficiary Association Trust. These postretirement health care benefits and the related unfunded obligation of $9.0 million and $9.6 million at December 31, 2020 and 2019, respectively, were not material to the consolidated financial statements in the periods covered by this report. The following tables set forth the changes in our pension plans' obligations and assets recorded on the Consolidated Balance Sheets at December 31, 2020 and 2019. The amounts presented in the following tables for pension obligations include the collective bargaining plan formula, traditional management plan formula and cash balance plan formula and the SERP in the aggregate and have not been adjusted for $1.4 million, $1.4 million and $1.8 million of costs billed to the Service Company for the years ended December 31, 2020, 2019 and 2018, respectively. $ in millions Years ended December 31, Change in benefit obligation 2020 2019 Benefit obligation at January 1 $ 421.5 $ 386.5 Service cost 3.7 3.7 Interest cost 11.8 14.9 Actuarial loss 52.7 42.1 Benefits paid (40.2) (25.7) Benefit obligation at December 31 449.5 421.5 Change in plan assets Fair value of plan assets at January 1 352.0 312.9 Actual return on plan assets 45.6 57.0 Employer contributions 7.7 7.8 Benefits paid (40.2) (25.7) Fair value of plan assets at December 31 365.1 352.0 Unfunded status of plan $ (84.4) $ (69.5) December 31, Amounts recognized in the Balance sheets 2020 2019 Current liabilities $ (0.2) $ (0.2) Non-current liabilities (84.2) (69.3) Net liability at end of year $ (84.4) $ (69.5) Amounts recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax Components: Prior service cost $ 6.9 $ 7.9 Net actuarial loss 124.0 104.3 Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax $ 130.9 $ 112.2 Recorded as: Regulatory asset $ 92.7 $ 83.7 Accumulated other comprehensive income 38.2 28.5 Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax $ 130.9 $ 112.2 The accumulated benefit obligation for our defined benefit pension plans was $436.4 million and $414.1 million at December 31, 2020 and 2019, respectively. The net periodic benefit cost of the pension plans was: Years ended December 31, $ in millions 2020 2019 2018 Service cost $ 3.7 $ 3.7 $ 6.1 Interest cost 11.8 14.9 13.8 Expected return on assets (18.6) (20.1) (21.2) Amortization of unrecognized: Actuarial loss 1.0 4.2 6.4 Prior service cost 6.1 1.3 0.9 Net periodic benefit cost $ 4.0 $ 4.0 $ 6.0 Rates relevant to each year's expense calculations Discount rate 3.33 % 4.35 % 3.66 % Expected return on plan assets 5.60 % 6.25 % 6.25 % Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities Years ended December 31, $ in millions 2020 2019 2018 Net actuarial loss $ 25.8 $ 5.3 $ 3.4 Plan curtailment (a) — — — Reversal of amortization item: Net actuarial loss (1.0) (4.2) (6.4) Prior service cost (6.1) (1.3) (0.9) Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities $ 18.7 $ (0.2) $ (3.9) Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities $ 22.7 $ 3.8 $ 2.1 Significant Gains and Losses Related to Changes in the Benefit Obligation The actuarial loss of $52.7 million increased the benefit obligation for the year ended December 31, 2020 and an actuarial loss of $42.1 million increased the benefit obligation for the year ended December 31, 2019. The actuarial loss in 2020 and 2019 was primarily due to a decrease in the discount rate. Assumptions Our expected return on plan asset assumptions, used to determine benefit obligations, are based on historical long-term rates of return on investments, which use the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors, such as inflation and interest rates, as well as asset diversification and portfolio rebalancing, are evaluated when long-term capital market assumptions are determined. Peer data and historical returns are reviewed to verify reasonableness and appropriateness. At December 31, 2020, we are decreasing our long-term rate of return assumption to 4.55% for pension plan assets. The rate of return represents our long-term assumptions based on our long-term portfolio mix. Also, at December 31, 2020, we have decreased our assumed discount rate to 2.44% from 3.33% for pension expense to reflect current duration-based yield curve discount rates. A one percent increase in the rate of return assumption for pension would result in a decrease in 2021 pension expense of approximately $3.3 million. A one percent decrease in the rate of return assumption for pension would result in an increase in 2021 pension expense of approximately $3.3 million. A 25-basis point increase in the discount rate for pension would result in a decrease of approximately $0.4 million to 2021 pension expense. A 25-basis point decrease in the discount rate for pension would result in an increase of approximately $0.5 million to 2021 pension expense. In determining the discount rate to use for valuing liabilities, we used a market yield curve on high-quality fixed income investments as of December 31, 2020. We project the expected benefit payments under the plan based on participant data and based on certain assumptions concerning mortality, retirement rates, termination rates, etc. The expected benefit payments for each year are then discounted back to the measurement date using the appropriate spot rate for each half-year from the yield curve, thereby obtaining a present value of all expected future benefit payments using the yield curve. Finally, an equivalent single discount rate is determined which produces a present value equal to the present value determined using the full yield curve. Consistent with the requirements of FASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans. In future periods, differences in the actual return on pension plan assets and assumed return, or changes in the discount rate, will affect the timing of contributions, if any, to the plans. The weighted average assumptions used to determine benefit obligations at December 31, 2020, 2019 and 2018 were: Benefit Obligation Assumptions Pension 2020 2019 2018 Discount rate for obligations 2.44% 3.33% 4.35% Rate of compensation increases 3.21% 3.94% 3.94% Pension Plan Assets Plan assets are invested in multiple asset classes using a de-risking framework designed to manage the Plan's funded status volatility and minimize future cash contributions. Investment strategies and asset allocations are intended to allocate additional assets to the fixed income asset class should the Plan's funded status improve and is therefore broadly described as the Dynamic De-risking Strategy. Investment performance and asset allocation are measured and monitored on an ongoing basis. Plan assets are managed in a balanced portfolio comprised of two major components: return seeking assets and liability hedging assets. The expected role of plan return seeking assets is to provide additional return with associated higher levels of risk, while the role of liability hedging assets is to correlate the interest rate of the fixed income investments with that of the Plan's liabilities. Strategic asset allocation guidelines are determined by a Risk/Advisory Committee and approved by a Fiduciary Committee. These allocations consider the plan’s long-term objectives. The long-term target allocations for plan assets are 40% – 50% for return seeking assets and 50% – 60% for liability hedging assets. Return seeking assets include U.S. and international equity, while liability hedging assets include long-duration and high-yield bond funds and emerging market debt funds. The investment approach is to move the Plan to a more de-risked position, if and when the overall funded status of the Plan improves, by periodically rebalancing the allocation of the Plan's investments in growth assets and liability hedging assets in accordance with the committee's glide path. This strategy requires the daily monitoring of the Plan's ratio of assets to liabilities in order to determine whether approved trigger points have been met, requiring the rebalancing of the assets. All plan assets at December 31, 2020 are common collective trusts. With the exception of the cash and cash equivalents, the collective trusts are valued using the net asset value method and are categorized as Level 2 in the fair value hierarchy. The underlying investments are mutual funds, common stock. or debt securities, in alignment with the target asset allocation. The following table summarizes our target pension plan allocation for 2020: Long-Term Percentage of plan assets as of December 31, Asset category (a) 2020 2019 Equity Securities 41% 42% 40% Debt Securities 59% 57% 58% Cash and Cash Equivalents —% 1% 1% Real Estate —% —% 1% The fair values of our pension plan assets at December 31, 2020 by asset category are as follows: $ in millions Market Value at December 31, 2020 Quoted prices Significant Significant Asset category (Level 1) (Level 2) (Level 3) Mutual fund - equities (a) $ 153.8 $ — $ 153.8 $ — Mutual fund - debt (b) 144.6 — 144.6 — Government debt securities (c) 64.8 — 64.8 — Cash and cash equivalents (d) 1.9 1.9 — — Total pension plan assets $ 365.1 $ 1.9 $ 363.2 $ — (a) This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method. (b) This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method. (c) This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method. (d) This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost. The fair values of our pension plan assets at December 31, 2019 by asset category are as follows: $ in millions Market Value at December 31, 2019 Quoted prices Significant Significant Asset category (Level 1) (Level 2) (Level 3) Mutual fund - equities (a) $ 142.9 $ — $ 142.9 $ — Mutual fund - debt (b) 115.6 — 115.6 — Government debt securities (c) 89.1 — 89.1 — Cash and cash equivalents (d) 1.9 1.9 — — Other investments: Core property collective fund (e) 2.5 — 2.5 — Total pension plan assets $ 352.0 $ 1.9 $ 350.1 $ — (a) This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method. (b) This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method. (c) This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method. (d) This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost. (e) This category represents a property fund that invests in commercial real estate. The fair value of the 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. Pension Funding We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and, in addition, make voluntary contributions from time to time. We contributed $7.5 million to the pension plan in each of the years ended December 31, 2020, 2019 and 2018. We expect to make contributions of $0.2 million to our SERP in 2021 to cover benefit payments. We also expect to make contributions of $9.8 million to our pension plan during 2021. Funding for the qualified Defined Benefit Pension Plan is based upon actuarially determined contributions that consider the amount deductible for income tax purposes and the minimum contribution required under ERISA, as amended by the Pension Protection Act of 2006, as well as targeted funding levels necessary to meet certain thresholds. From an ERISA funding perspective, DP&L’s funded target liability percentage was estimated to be 101%. In addition, DP&L must also contribute the normal service cost earned by active participants during the plan year. The funding of normal cost is expected to be approximately $5.3 million in 2021, which includes $2.0 million for plan expenses. Each year thereafter, if the plan’s underfunding increases to more than the present value of the remaining annual installments, the excess is separately amortized over seven years. DP&L’s funding policy for the pension plans is to contribute annually no less than the minimum required by applicable law, and no more than the maximum amount that can be deducted for federal income tax purposes. Benefit payments, which reflect future service, are expected to be paid as follows: Estimated future benefit payments $ in millions due within the following years: Pension 2021 $ 26.4 2022 $ 26.0 2023 $ 25.7 2024 $ 25.3 2025 $ 24.7 2026 - 2030 $ 118.1 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Equity | Shareholder's Deficit Dividend Restrictions DPL’s Amended Articles of Incorporation (the Articles) contain provisions which state that DPL may not make a distribution to its shareholder or make a loan to any of its affiliates (other than its subsidiaries), unless: (a) there exists no Event of Default (as defined in the Articles) and no such Event of Default would result from the making of the distribution or loan; and either (b)(i) at the time of, and/or as a result of, the distribution or loan, DPL’s leverage ratio does not exceed 0.67 to 1.00 and DPL’s interest coverage ratio is not less than 2.50 to 1.00 or, (b)(ii) if such ratios are not within the parameters, DPL’s senior long-term debt rating from one of the three major credit rating agencies is at least investment grade. Further, the restrictions on the payment of distributions to a shareholder and the making of loans to its affiliates (other than subsidiaries) cease to be in effect if the three major credit rating agencies confirm that a lowering of DPL’s senior long-term debt rating below investment grade by the credit rating agencies would not occur without these restrictions. As described above, DPL’s Amended Articles of Incorporation contain restrictions on DPL’s ability to make dividends, distributions and affiliate loans (other than to its subsidiaries), including restrictions on making such dividends, distributions and loans if certain financial ratios exceed specified levels and DPL’s senior long-term debt rating from a rating agency is below investment grade. As of December 31, 2020, DPL did not meet these requirements. As a result, as of December 31, 2020, DPL was prohibited under its Articles of Incorporation from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries). Common Stock Effective on the Merger date, DPL's Amended Articles of Incorporation provided for 1,500 authorized common shares, of which one share is outstanding at December 31, 2020. DP&L has 50,000,000 authorized common shares, of which 41,172,173 are outstanding at December 31, 2020. All common shares are held by DP&L’s parent, DPL. Capital Contributions from AES In DP&L's six-year ESP 3, the PUCO imposed restrictions on DPL making dividend payments to its parent company, AES, during the term of the ESP, as well as on making tax-sharing payments to AES during the term of the DMR. The PUCO also required that existing tax payments owed by DPL to AES, and similar tax payments that accrue during the term of the DMR, be converted into equity investments in DPL. With the November 21, 2019 order from the PUCO that removed the DMR and the subsequent approval of DP&L's ESP 1 rate plan, these requirements were eliminated. See Note 3 – Regulatory Matters for additional information on changes to DP&L's ESP and the removal of the DMR. For the year ended December 31, 2020, DPL received $150.0 million in a cash contribution from AES, which DPL then used to make a $150.0 million equity contribution to DP&L. The contribution at DPL represented an equity contribution of $98.0 million and a payment of $52.0 million against its tax receivable. The proceeds from the equity contribution at DP&L will primarily be used for funding needs to support DP&L's capital expenditure program, mainly new investments in and upgrades to DP&L’s transmission and distribution system. For the year ended December 31, 2019, DPL had a current tax benefit so there was no conversion of current tax liabilities. For the year ended December 31, 2018, AES made capital contributions of $40.0 million by converting the amount owed to it by DPL related to tax-sharing payments for current tax liabilities. See Note 8 – Income Taxes for additional information. |
Contractual Obligations, Commer
Contractual Obligations, Commercial Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Contractual Obligations, Commercial Commitments and Contingencies | Contractual Obligations, Commercial Commitments and Contingencies Guarantees Previously, DPL entered into various agreements with its wholly-owned subsidiary, AES Ohio Generation, providing financial or performance assurance to third parties. These agreements were entered into primarily to support or enhance the creditworthiness otherwise attributed to the subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish this subsidiary's intended commercial purposes. With the completion of our plan to exit generation, AES Ohio Generation currently does not require such assurances to third parties, and existing guarantees will expire in June, 2021. During the year ended December 31, 2020, DPL did not incur any losses related to the guarantees of these obligations and we believe it is unlikely that DPL would be required to perform or incur any losses in the future associated with any of the above guarantees. At December 31, 2020, DPL had $1.9 million of such guarantees on behalf of AES Ohio Generation. There were no outstanding balances for commercial transactions covered by these guarantees at December 31, 2020 or December 31, 2019. Equity Ownership Interest DP&L has a 4.9% equity ownership interest in OVEC which is recorded using the cost method of accounting under GAAP. At December 31, 2020, DP&L could be responsible for the repayment of 4.9%, or $62.6 million, of a $1,276.7 million debt obligation comprised of both fixed and variable rate securities with maturities between 2022 and 2040. OVEC could also seek additional contributions from us to avoid a default in the event that other OVEC members defaulted on their respective OVEC obligations. One of the other OVEC members had filed for bankruptcy protection and the bankruptcy court had approved that member's rejection of the OVEC arrangement and its related obligations. Subsequent to that decision, another entity has assumed that member's ownership interest and all related liabilities. Contractual Obligations and Commercial Commitments We enter into various contractual obligations and other commercial commitments that may affect the liquidity of our operations. At December 31, 2020, these include: Payments due in: $ in millions Total Less than 2 - 3 4 - 5 More than Electricity purchase commitments $ 120.8 $ 86.0 $ 34.8 $ — $ — Purchase orders and other contractual obligations $ 92.5 $ 87.8 $ 4.7 $ — $ — Electricity purchase commitments: DP&L enters into long-term contracts for the purchase of electricity. In general, these contracts are subject to variable quantities or prices and are terminable only in limited circumstances. Purchase orders and other contractual obligations: At December 31, 2020, DPL had various other contractual obligations including contracts to purchase goods and services with various terms and expiration dates. Due to uncertainty regarding the timing and payment of future obligations to the Service Company, and DPL's ability to terminate such obligations upon 90 days' notice, we have excluded such amounts in the contractual obligations table above. This table also does not include regulatory liabilities (see Note 3 – Regulatory Matters) or contingencies (see below). See Note 12 – Related Party Transactions for additional information on charges between related parties and amounts due to or from related parties. Contingencies In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under laws and regulations. We believe the amounts provided in our Consolidated Financial Statements, as prescribed by GAAP, are adequate considering the probable and estimable contingencies. However, there can be no assurances that the actual amounts required to satisfy alleged liabilities from various legal proceedings, claims, tax examinations and other matters, including the matters discussed below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in our Consolidated Financial Statements. As such, costs, if any, that may be incurred in excess of those amounts provided as of December 31, 2020, cannot be reasonably determined. Environmental Matters DPL’s facilities and operations are subject to a wide range of federal, state and local environmental laws, rules and regulations. The environmental issues that may affect us include the following. • The federal CAA and state laws and regulations (including SIPs) which require compliance, obtaining permits and reporting as to air emissions; • Litigation with federal and certain state governments and certain special interest groups regarding whether modifications to or maintenance of certain coal-fired generating stations require additional permitting or pollution control technology, or whether emissions from coal-fired generating stations cause or contribute to global climate changes; • Rules and future rules issued by the USEPA, the Ohio EPA or other authorities that require or will require substantial reductions in SO2, particulates, mercury, acid gases, NOx and other air emissions; • Rules and future rules issued by the USEPA, the Ohio EPA or other authorities that require or will require reporting and reductions of GHGs; • Rules and future rules issued by the USEPA, the Ohio EPA or other authorities associated with the federal Clean Water Act, which prohibits the discharge of pollutants into waters of the United States except pursuant to appropriate permits; and • Solid and hazardous waste laws and regulations, which govern the management and disposal of certain waste. Most of the solid waste created from the combustion of coal and fossil fuels is fly ash and other coal combustion by-products. In addition to imposing continuing compliance obligations, environmental laws, rules and regulations authorize the imposition of substantial penalties for noncompliance, including fines, injunctive relief and other sanctions. In the normal course of business, we have investigatory and remedial activities underway at our facilities to comply, or to determine compliance, with such laws, rules and regulations. We record liabilities for loss contingencies related to environmental matters when a loss is probable of occurring and can be reasonably estimated in accordance with the provisions of GAAP. Accordingly, we have immaterial accruals for loss contingencies for environmental matters. We also have a number of environmental matters for which we have not accrued loss contingencies because the risk of loss is not probable, or a loss cannot be reasonably estimated. We evaluate the potential liability related to environmental matters quarterly and may revise our estimates. Such revisions in the estimates of the potential liabilities could have a material adverse effect on our results of operations, financial condition or cash flows. We have several pending environmental matters associated with our previously-owned and operated coal-fired generation units. We do not expect these matters to have a material adverse impact on our results of operations, financial condition or cash flows. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Related Party Transactions | Related Party Transactions Service Company The Service Company allocates the costs for services provided based on cost drivers designed to result in fair and equitable allocations. This includes ensuring that the regulated utilities served, including DP&L, are not subsidizing costs incurred for the benefit of other businesses. Benefit Plans DPL participates in an agreement with Health and Welfare Benefit Plans LLC, an affiliate of AES, to participate in a group benefits program, including but not limited to, health, dental, vision and life benefits. Health and Welfare Benefit Plans LLC administers the financial aspects of the group insurance program, receives all premium payments from the participating affiliates, and makes all vendor payments. Long-term Compensation Plan During 2020, 2019 and 2018, some of DPL’s non-union employees received benefits under the AES Long-term Compensation Plan, a deferred compensation program. This type of plan is a common employee retention tool used in our industry. Benefits under this plan are granted in the form of performance units payable in cash and AES restricted stock units. Restricted stock units vest ratably over a three-year period. The performance units payable in cash vest at the end of the three-year performance period and are subject to certain AES performance criteria. Total deferred compensation expense recorded during 2020, 2019 and 2018 was $0.1 million, $0.0 million and $0.4 million, respectively, and was included in “Operation and maintenance” on DPL’s Consolidated Statements of Operations. The value of these benefits is being recognized over the 36-month vesting period and a portion is recorded as miscellaneous deferred credits with the remainder recorded as “Paid in capital” on DPL’s Consolidated Balance Sheets in accordance with FASC 718 “Compensation - Stock Compensation.” The following table provides a summary of our related party transactions: Years ended December 31, $ in millions 2020 2019 2018 Transactions with the Service Company Charges for services provided $ 38.8 $ 33.8 $ 41.0 Charges to the Service Company $ 4.2 $ 3.6 $ 4.9 Transactions with other AES affiliates: Payments for health, welfare and benefit plans $ 10.7 $ 11.2 $ 7.9 Consulting and other services $ 0.8 $ 0.7 $ 2.0 Balances with related parties: At December 31, 2020 At December 31, 2019 Net payable to the Service Company $ (14.8) $ (11.0) Net receivable from / (payable to) AES and other AES affiliates (a) $ (1.7) $ 2.0 (a) The December 31, 2019 net receivable amount includes a $5.1 million receivable balance with AES related to the sale of software previously recorded on AES Ohio Generation during the year ended December 31. 2019. There was no gain or loss recorded on the transaction. These $5.1 million of proceeds on the sale were received in 2020. DPL Capital Trust II DPL has a wholly-owned business trust, DPL Capital Trust II (the Trust), formed for the purpose of issuing trust capital securities to third-party investors. Effective in 2003, DPL deconsolidated the Trust upon adoption of the accounting standards related to variable interest entities and currently treats the Trust as a nonconsolidated subsidiary. The Trust holds mandatorily redeemable trust capital securities. The investment in the Trust, which amounted to $0.2 million and $0.2 million at December 31, 2020 and 2019, respectively, is included in Other non-current assets. DPL also has a note payable to the Trust amounting to $15.6 million and $15.6 million at December 31, 2020 and 2019, respectively, that was established upon the Trust’s deconsolidation in 2003. See Note 7 – Long-term debt for additional information. In addition to the obligations under the note payable mentioned above, DPL also agreed to a security obligation which represents a full and unconditional guarantee of payments to the capital security holders of the Trust. Income Taxes AES files federal and state income tax returns which consolidate DPL and its subsidiaries. Under a tax sharing agreement with AES, DPL is responsible for the income taxes associated with its own taxable income and records the provision for income taxes using a separate return method. Effective with the approval of DP&L's ESP 3, through November 21, 2019, DPL was restricted from making tax sharing payments to AES throughout the term of the DMR and amounts that would otherwise have been tax sharing liabilities were converted to deemed capital contributions. With the November 21, 2019 order from the PUCO that removed the DMR, this requirement was eliminated. See Note 8 – Income Taxes for more information. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |
Business Segments | Business Segments DPL manages its business through one reportable operating segment, the Utility segment. The primary segment performance measure is income / (loss) from continuing operations before income tax as management has concluded that this measure best reflects the underlying business performance of DPL and is the most relevant measure considered in DPL’s internal evaluation of the financial performance of its segments. The Utility segment is discussed further below: Utility Segment The Utility segment is comprised primarily of DP&L’s electric transmission and distribution businesses, which distribute electricity to residential, commercial, industrial and governmental customers. DP&L distributes electricity to more than 531,000 retail customers who are located in a 6,000 square mile area of West Central Ohio. DP&L’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, DP&L applies the accounting standards for regulated operations to its electric transmission and distribution businesses and records regulatory assets when incurred costs are expected to be recovered in future customer rates and regulatory liabilities when current cost recoveries in customer rates relate to expected future costs. The Utility segment includes revenues and costs associated with our investment in OVEC and the historical results of DP&L’s Beckjord Station, which was closed in 2014 and transferred to a third party in the first quarter of 2018, and the Hutchings Coal Station, which was closed in 2013 and transferred to a third party in the fourth quarter of 2020. Included within the “Other” column are other businesses that do not meet the GAAP requirements for disclosure as reportable segments as well as certain corporate costs, which include interest expense and loss on early extinguishment of debt on DPL’s long-term debt as well as adjustments related to purchase accounting from the Merger. The accounting policies of the reportable segments are the same as those described in Note 1 – Overview and Summary of Significant Accounting Policies. Intersegment sales, costs of sales and expenses are eliminated in consolidation. Certain shared and corporate costs are allocated between "Other" and the Utility reporting segment. The following tables present financial information for DPL’s reportable business segment: $ in millions Utility Other Adjustments and Eliminations DPL Consolidated Year ended December 31, 2020 Revenues from external customers $ 651.2 $ 9.3 $ — $ 660.5 Intersegment revenues 0.9 3.6 (4.5) — Total revenues $ 652.1 $ 12.9 $ (4.5) $ 660.5 Depreciation and amortization $ 71.8 $ 1.5 $ — $ 73.3 Interest expense $ 24.3 $ 47.0 $ — $ 71.3 Loss on early extinguishment of debt $ — $ 31.7 $ — $ 31.7 Income / (loss) from continuing operations before income tax $ 58.1 $ (70.0) $ — $ (11.9) Cash capital expenditures $ 153.3 $ 4.0 $ — $ 157.3 $ in millions Utility Other Adjustments and Eliminations DPL Consolidated Year ended December 31, 2019 Revenues from external customers $ 734.3 $ 9.4 $ — $ 743.7 Intersegment revenues 1.1 3.2 (4.3) — Total revenues $ 735.4 $ 12.6 $ (4.3) $ 743.7 Depreciation and amortization $ 70.8 $ 1.5 $ — $ 72.3 Interest expense $ 26.0 $ 56.2 $ — $ 82.2 Loss on early extinguishment of debt $ — $ 44.9 $ — $ 44.9 Income / (loss) from continuing operations before income tax $ 124.3 $ (92.8) $ — $ 31.5 Cash capital expenditures $ 155.5 $ 1.0 $ — $ 156.5 $ in millions Utility Other (a) Adjustments and Eliminations DPL Consolidated Year ended December 31, 2018 Revenues from external customers $ 737.8 $ 9.5 $ — $ 747.3 Intersegment revenues 0.9 2.9 (3.8) — Total revenues $ 738.7 $ 12.4 $ (3.8) $ 747.3 Depreciation and amortization $ 74.5 $ 1.7 $ — $ 76.2 Interest expense $ 27.3 $ 70.7 $ — $ 98.0 Loss on early extinguishment of debt $ 0.6 $ 5.9 $ — $ 6.5 Income / (loss) from continuing operations before income tax $ 104.4 $ (65.5) $ — $ 38.9 Cash capital expenditures $ 85.6 $ 10.5 $ — $ 96.1 (a) "Other" includes Cash capital expenditures related to assets of discontinued operations and held-for-sale businesses for the year ended December 31, 2018. Total Assets December 31, 2020 December 31, 2019 December 31, 2018 Utility $ 2,014.7 $ 1,883.2 $ 1,819.6 All Other (a) 21.3 52.6 63.5 DPL Consolidated $ 2,036.0 $ 1,935.8 $ 1,883.1 (a) "All Other" includes Total assets related to the assets of discontinued operations and held-for-sale businesses and Eliminations as of December 31, 2020, 2019 and 2018. "All Other" Total assets as of December 31, 2020 is primarily cash on hand from debt issuances. |
Revenue (Notes)
Revenue (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Text Block] | Revenue Revenue is primarily earned from retail and wholesale electricity sales and electricity transmission and distribution delivery services. Revenue is recognized upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Revenue is recorded net of any taxes assessed on and collected from customers, which are remitted to the governmental authorities. Retail revenue – DP&L energy sales to utility customers are based on the reading of meters at the customer's location that occurs on a systematic basis throughout the month. DP&L sells electricity directly to end-users, such as homes and businesses, and bills customers directly. Performance obligations for retail revenues are satisfied over time as energy is delivered and the same method is used to measure progress, and thus the performance obligation meets the criteria to be considered a series. This includes both the promise to transfer energy and other distribution and/or transmission services. In exchange for the exclusive right to sell or distribute electricity in our service area, DP&L is subject to rate regulation by federal and state regulators. This regulation sets the framework for the prices (“tariffs”) that DP&L is allowed to charge customers for electricity. Since tariffs are approved by the regulator, the price that DP&L has the right to bill corresponds directly with the value to the customer of DP&L's performance completed in each period. Therefore, revenue under these contracts is recognized using an output method measured by the MWhs delivered each month at the approved tariff. In cases where a customer chooses to receive generation services from a CRES provider, the price for generation services is negotiated between the customer and the CRES provider, and DP&L only serves as a billing agent if requested by the CRES provider. As such, DP&L recognizes the consolidated billing arrangement with the CRES provider on a net basis, thereby recording no revenue for the generation component. Retail revenue from these customers would only be related to transmission and distribution charges. Wholesale revenue – DP&L's share of the power produced at OVEC is sold to PJM and these revenues are classified as Wholesale revenues. In PJM, the promise to sell energy as wholesale revenue is separately identifiable from participation in the capacity market and the two products can be transacted independently of one another. Therefore, wholesale revenues are a separate contract with a single performance obligation. Revenue is recorded based on the quantities (MWh) delivered in each hour during each month at the spot price, making the contract effectively “month-to-month”. RTO ancillary revenue – Compensation for use of DP&L’s transmission assets and compensation for various ancillary services are classified as RTO ancillary revenues. As DP&L owns and operates transmission lines in southwest Ohio within PJM, demand charges collected from network customers by PJM are then allocated to the appropriate transmission owners (i.e. DP&L) and recognized as transmission revenues. Transmission revenues have a single performance obligation, as transmission services represent a distinct service. Additionally, as the performance obligation is satisfied over time and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. The price that DP&L, as the transmission operator, has the right to bill (received as a credit from PJM) corresponds directly with the value to the customer of performance completed in each period, as the price paid is the allocation of the tariff rate (as approved by the regulator) charged to network participants. Capacity revenue – DP&L records its share of OVEC capacity revenues as Capacity revenues. The capacity price is set through a competitive auction process established by PJM. Depending on the availability and performance of the OVEC units, there may be additional performance bonuses or penalties, which would be recognized only if it becomes probable that such bonus or penalties will be incurred. RTO capacity revenues have a single performance obligation, as capacity is a distinct good. Additionally, as the performance obligation is satisfied over time and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. The capacity price is set through a competitive auction process established by PJM. DPL's revenue from contracts with customers was $645.0 million, $720.6 million and $715.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. The following table presents our revenue from contracts with customers and other revenue by segment for the years ended December 31, 2020, 2019 and 2018: $ in millions Utility Other Adjustments and Eliminations Total Year ended December 31, 2020 Retail revenue Retail revenue from contracts with customers Residential revenue $ 362.3 $ — $ — $ 362.3 Commercial revenue 114.6 — — 114.6 Industrial revenue 51.2 — — 51.2 Governmental revenue 36.6 — — 36.6 Other (a) 12.7 — — 12.7 Total retail revenue from contracts with customers 577.4 — — 577.4 Other retail revenue (b) 9.0 — — 9.0 Wholesale revenue Wholesale revenue from contracts with customers 11.0 — (0.9) 10.1 RTO ancillary revenue 44.0 — — 44.0 Capacity revenue 4.2 — — 4.2 Miscellaneous revenue Miscellaneous revenue from contracts with customers (c) — 9.3 — 9.3 Miscellaneous revenue 6.5 3.6 (3.6) 6.5 Total revenues $ 652.1 $ 12.9 $ (4.5) $ 660.5 $ in millions Utility Other Adjustments and Eliminations Total Year ended December 31, 2019 Retail revenue Retail revenue from contracts with customers Residential revenue $ 403.5 $ — $ — $ 403.5 Commercial revenue 130.3 — — 130.3 Industrial revenue 55.3 — — 55.3 Governmental revenue 42.4 — — 42.4 Other (a) 13.8 — — 13.8 Total retail revenue from contracts with customers 645.3 — — 645.3 Other retail revenue (b) 22.0 — — 22.0 Wholesale revenue Wholesale revenue from contracts with customers 17.2 — (1.0) 16.2 RTO ancillary revenue 43.5 — — 43.5 Capacity revenue 6.2 — — 6.2 Miscellaneous revenue Miscellaneous revenue from contracts with customers (c) — 9.4 — 9.4 Miscellaneous revenue 1.2 3.2 (3.3) 1.1 Total revenues $ 735.4 $ 12.6 $ (4.3) $ 743.7 $ in millions Utility Other Adjustments and Eliminations Total Year ended December 31, 2018 Retail revenue Retail revenue from contracts with customers Residential revenue $ 404.0 $ — $ — $ 404.0 Commercial revenue 118.9 — — 118.9 Industrial revenue 48.9 — — 48.9 Governmental revenue 40.8 — (1.0) 39.8 Other (a) 13.2 — — 13.2 Total retail revenue from contracts with customers 625.8 — (1.0) 624.8 Other retail revenue (b) 32.1 — — 32.1 Wholesale revenue Wholesale revenue from contracts with customers 29.9 — — 29.9 RTO ancillary revenue 43.1 — — 43.1 Capacity revenue 7.8 0.1 — 7.9 Miscellaneous revenue Miscellaneous revenue from contracts with customers (c) — 9.5 — 9.5 Miscellaneous revenue — 2.8 (2.8) — Total revenues $ 738.7 $ 12.4 $ (3.8) $ 747.3 (a) "Other" primarily includes Wright-Patterson Air Force Base revenues, billing service fees from CRES providers and other miscellaneous retail revenues from contracts with customers. (b) Other retail revenue primarily includes alternative revenue programs not accounted for under FASC 606. (c) Miscellaneous revenue from contracts with customers primarily includes revenues for various services provided by Miami Valley Lighting. The balances of receivables from contracts with customers were $70.1 million and $65.1 million as of December 31, 2020 and 2019, respectively. Payment terms for all receivables from contracts with customers are typically within 30 days. We have elected to apply the optional disclosure exemptions under FASC 606. Therefore, we have no disclosures pertaining to revenue expected to be recognized in any future year related to remaining performance obligations, as we exclude contracts with an original length of one year or less, contracts for which we recognize revenue based on the amount we have the right to invoice for services performed, and variable consideration allocated entirely to a |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Conesville - In May 2020, AEP, the operator of the formerly co-owned Conesville EGU, retired Conesville Unit 4 as planned. On June 5, 2020, DPL and AES Ohio Generation, together with AEP, completed the transfer of their interests in the retired Unit 4, including the associated environmental liabilities, to an unaffiliated third-party purchaser. As a result, DPL recognized a gain on the transfer of $4.5 million for the year ended December 31, 2020. For the transaction, DPL will make quarterly cash expenditures, totaling $4.0 million, through July 2022, of which $1.8 million has been paid through December 31, 2020. The transfer of Conesville Unit 4 was the last step in DPL's plan to exit its AES Ohio Generation business operations. Stuart and Killen – On May 31, 2018, DPL and AES Ohio Generation retired the Stuart Station coal-fired and diesel-fired generating units and the Killen Station coal-fired generating unit and combustion turbine, as planned. On December 20, 2019, DPL and AES Ohio Generation, together with AES Ohio Generation's joint owners in the retired Stuart and Killen generating facilities, completed the transfer of the retired generating facilities, including the associated environmental liabilities, to an unaffiliated third-party purchaser. As a result, DPL made cash expenditures of $51.0 million and recognized a gain on the transfer of $20.0 million for the year ended December 31, 2019. Peaker Assets – On March 27, 2018, DPL and AES Ohio Generation completed the sale transaction of the Peaker assets, which resulted in net proceeds of $234.9 million and a loss on sale of $1.9 million for the year ended December 31, 2018. DPL determined that the transfers of Conesville, Stuart and Killen along with the sales of the Peaker Assets in 2018 and Miami Fort and Zimmer in 2017 constitute the disposal of a group of components, which, as a whole, represent a strategic shift to exit its AES Ohio Generation business. As such, the disposal of this group of components qualifies to be presented as discontinued operations. Therefore, the results of operations, assets and liabilities of this group of components were reported as such in the Consolidated Statements of Operations and Consolidated Balance Sheets for all periods presented. The following table summarizes the major categories of assets and liabilities at the dates indicated: $ in millions December 31, 2019 Accounts receivable, net $ 18.0 Inventories 3.7 Taxes applicable to subsequent years 0.3 Prepayments and other current assets 0.3 Intangible assets, net of amortization 0.1 Other non-current assets 1.0 Total assets of the disposal group classified as assets of discontinued operations and held-for-sale businesses in the balance sheets $ 23.4 Accounts payable $ 5.6 Accrued taxes 0.3 Accrued and other current liabilities 3.1 Deferred income taxes (a) (6.5) Taxes payable 0.3 Asset retirement obligations 8.3 Other non-current liabilities 6.3 Total liabilities of the disposal group classified as liabilities of discontinued operations and held-for-sale businesses in the balance sheets $ 17.4 (a) Deferred income taxes represent the tax asset position of the discontinued group of components, which were netted with liabilities on DPL prior to classification as discontinued operations. The following table summarizes the revenues, operating costs, other expenses and income tax of discontinued operations for the periods indicated: Years ended December 31, $ in millions 2020 2019 2018 Revenues $ 24.2 $ 70.9 $ 187.3 Operating costs and other expenses (24.8) (19.8) (121.0) Fixed-asset impairment — (3.5) (2.8) Income / (loss) from discontinued operations (0.6) 47.6 63.5 Gain / (loss) from disposal of discontinued operations 6.1 20.1 (1.6) Income tax expense from discontinued operations 0.1 14.1 28.5 Net income from discontinued operations $ 5.4 $ 53.6 $ 33.4 Cash flows related to discontinued operations are included in our Consolidated Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $3.2 million, $21.3 million and $35.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. Cash flows from investing activities for discontinued operations were $4.9 million, $(51.0) million and $233.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. Joint Owners' Agreement for Stuart and Killen Pursuant to the Joint Owners' Agreements for Stuart and Killen entered into in December 2019, existing assets and liabilities between the joint owners were settled and resulted in a credit to DPL's operating costs and other expenses of $19.4 million for the year ended December 31, 2019 in the table above. AROs of Discontinued Operations Prior to the transfer of the retired Stuart and Killen generating facilities, the facilities carried ARO liabilities consisting primarily of river intake and discharge structures, coal unloading facilities, landfills and ash disposal facilities. In the first quarter of 2019 and the fourth quarter of 2018, DPL reduced the ARO liability related to the Stuart and Killen ash ponds and landfills by $22.5 million and $27.6 million, respectively, based on updated internal analyses that reduced estimated closure costs associated with these ash ponds and landfills. The remaining ARO liability related to Stuart and Killen was included in the 2019 sale described above. As these plants were no longer in service, the reductions to the ARO liability were recorded as credits to depreciation and amortization expense in the same amounts. The credits to depreciation and amortization expense are included in operating costs and other expenses of discontinued operations for the years ended December 31, 2019 and 2018 in the table above. Hutchings Coal Station – On December 3, 2020, DP&L transferred its interests in the retired Hutchings Coal Station to a third party, including its obligations to remediate the Station and its site, and the transfer occurred on that same date. As a result, DPL recognized a loss on the transfer of $4.7 million and made cash expenditures of $7.0 million, inclusive of cash expenditures for the transfer charges. DPL agreed to pay an additional $2.3 million by December 1, 2021 for the transfer. The Hutchings Coal Station was retired in 2013, and, as such, the income / (loss) from continuing operations before income tax related to the Hutchings Coal Station was immaterial for the years ended December 31, 2020, 2019 and 2018, excluding the loss on transfer noted above. Prior to the transfer, the Hutchings Coal Station was included in the Utility segment. |
Dispositions (Notes)
Dispositions (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations | Discontinued Operations Conesville - In May 2020, AEP, the operator of the formerly co-owned Conesville EGU, retired Conesville Unit 4 as planned. On June 5, 2020, DPL and AES Ohio Generation, together with AEP, completed the transfer of their interests in the retired Unit 4, including the associated environmental liabilities, to an unaffiliated third-party purchaser. As a result, DPL recognized a gain on the transfer of $4.5 million for the year ended December 31, 2020. For the transaction, DPL will make quarterly cash expenditures, totaling $4.0 million, through July 2022, of which $1.8 million has been paid through December 31, 2020. The transfer of Conesville Unit 4 was the last step in DPL's plan to exit its AES Ohio Generation business operations. Stuart and Killen – On May 31, 2018, DPL and AES Ohio Generation retired the Stuart Station coal-fired and diesel-fired generating units and the Killen Station coal-fired generating unit and combustion turbine, as planned. On December 20, 2019, DPL and AES Ohio Generation, together with AES Ohio Generation's joint owners in the retired Stuart and Killen generating facilities, completed the transfer of the retired generating facilities, including the associated environmental liabilities, to an unaffiliated third-party purchaser. As a result, DPL made cash expenditures of $51.0 million and recognized a gain on the transfer of $20.0 million for the year ended December 31, 2019. Peaker Assets – On March 27, 2018, DPL and AES Ohio Generation completed the sale transaction of the Peaker assets, which resulted in net proceeds of $234.9 million and a loss on sale of $1.9 million for the year ended December 31, 2018. DPL determined that the transfers of Conesville, Stuart and Killen along with the sales of the Peaker Assets in 2018 and Miami Fort and Zimmer in 2017 constitute the disposal of a group of components, which, as a whole, represent a strategic shift to exit its AES Ohio Generation business. As such, the disposal of this group of components qualifies to be presented as discontinued operations. Therefore, the results of operations, assets and liabilities of this group of components were reported as such in the Consolidated Statements of Operations and Consolidated Balance Sheets for all periods presented. The following table summarizes the major categories of assets and liabilities at the dates indicated: $ in millions December 31, 2019 Accounts receivable, net $ 18.0 Inventories 3.7 Taxes applicable to subsequent years 0.3 Prepayments and other current assets 0.3 Intangible assets, net of amortization 0.1 Other non-current assets 1.0 Total assets of the disposal group classified as assets of discontinued operations and held-for-sale businesses in the balance sheets $ 23.4 Accounts payable $ 5.6 Accrued taxes 0.3 Accrued and other current liabilities 3.1 Deferred income taxes (a) (6.5) Taxes payable 0.3 Asset retirement obligations 8.3 Other non-current liabilities 6.3 Total liabilities of the disposal group classified as liabilities of discontinued operations and held-for-sale businesses in the balance sheets $ 17.4 (a) Deferred income taxes represent the tax asset position of the discontinued group of components, which were netted with liabilities on DPL prior to classification as discontinued operations. The following table summarizes the revenues, operating costs, other expenses and income tax of discontinued operations for the periods indicated: Years ended December 31, $ in millions 2020 2019 2018 Revenues $ 24.2 $ 70.9 $ 187.3 Operating costs and other expenses (24.8) (19.8) (121.0) Fixed-asset impairment — (3.5) (2.8) Income / (loss) from discontinued operations (0.6) 47.6 63.5 Gain / (loss) from disposal of discontinued operations 6.1 20.1 (1.6) Income tax expense from discontinued operations 0.1 14.1 28.5 Net income from discontinued operations $ 5.4 $ 53.6 $ 33.4 Cash flows related to discontinued operations are included in our Consolidated Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $3.2 million, $21.3 million and $35.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. Cash flows from investing activities for discontinued operations were $4.9 million, $(51.0) million and $233.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. Joint Owners' Agreement for Stuart and Killen Pursuant to the Joint Owners' Agreements for Stuart and Killen entered into in December 2019, existing assets and liabilities between the joint owners were settled and resulted in a credit to DPL's operating costs and other expenses of $19.4 million for the year ended December 31, 2019 in the table above. AROs of Discontinued Operations Prior to the transfer of the retired Stuart and Killen generating facilities, the facilities carried ARO liabilities consisting primarily of river intake and discharge structures, coal unloading facilities, landfills and ash disposal facilities. In the first quarter of 2019 and the fourth quarter of 2018, DPL reduced the ARO liability related to the Stuart and Killen ash ponds and landfills by $22.5 million and $27.6 million, respectively, based on updated internal analyses that reduced estimated closure costs associated with these ash ponds and landfills. The remaining ARO liability related to Stuart and Killen was included in the 2019 sale described above. As these plants were no longer in service, the reductions to the ARO liability were recorded as credits to depreciation and amortization expense in the same amounts. The credits to depreciation and amortization expense are included in operating costs and other expenses of discontinued operations for the years ended December 31, 2019 and 2018 in the table above. Hutchings Coal Station – On December 3, 2020, DP&L transferred its interests in the retired Hutchings Coal Station to a third party, including its obligations to remediate the Station and its site, and the transfer occurred on that same date. As a result, DPL recognized a loss on the transfer of $4.7 million and made cash expenditures of $7.0 million, inclusive of cash expenditures for the transfer charges. DPL agreed to pay an additional $2.3 million by December 1, 2021 for the transfer. The Hutchings Coal Station was retired in 2013, and, as such, the income / (loss) from continuing operations before income tax related to the Hutchings Coal Station was immaterial for the years ended December 31, 2020, 2019 and 2018, excluding the loss on transfer noted above. Prior to the transfer, the Hutchings Coal Station was included in the Utility segment. |
Schedule II Valuation And Quali
Schedule II Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Schedule II Valuation And Qualifying Accounts | Schedule II DPL Inc. VALUATION AND QUALIFYING ACCOUNTS For each of the three years in the period ended December 31, 2020 $ in millions Description Balance at Additions Deductions - Balance at Year ended December 31, 2020 Deducted from accounts receivable - Provision for uncollectible accounts $ 0.4 $ 3.0 $ 0.6 $ 2.8 Deducted from deferred tax assets - Valuation allowance for deferred tax assets (a) $ 29.0 $ 11.0 $ 1.0 $ 39.0 Year ended December 31, 2019 Deducted from accounts receivable - Provision for uncollectible accounts $ 0.9 $ 3.0 $ 3.5 $ 0.4 Deducted from deferred tax assets - Valuation allowance for deferred tax assets (a) $ 29.9 $ 2.2 $ 3.1 $ 29.0 Year ended December 31, 2018 Deducted from accounts receivable - Provision for uncollectible accounts $ 1.1 $ 3.4 $ 3.6 $ 0.9 Deducted from deferred tax assets - Valuation allowance for deferred tax assets (a) $ 36.3 $ 1.7 $ 8.1 $ 29.9 (a) Balances and activity for valuation allowances for deferred tax assets include amounts presented within both the "Deferred income taxes" line and the "Non-current liabilities of discontinued operations and held-for-sale businesses" line on DPL’s Consolidated Balance Sheets. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | Risks & Uncertainties COVID-19 Pandemic The COVID-19 pandemic has severely impacted global economic activity, including electricity and energy consumption, and caused significant volatility and negative pressure in financial markets. The global impact of the outbreak has been rapidly evolving and many countries, including the United States, have reacted by instituting quarantines, mandating business and school closures and social distancing measures as well as restricting travel. The State of Ohio has implemented, among other things, stay-at-home and other social distancing measures to slow the spread of the virus, which has impacted energy demand within our service territory, though the stay-at-home restrictions have now been lifted in our service territory. On March 12, 2020, the PUCO also issued an emergency order prohibiting electric utilities, including us, from discontinuing electric utility service to customers. This prohibition ended for DP&L on September 1, 2020. We are taking a variety of measures in response to the spread of COVID-19 to ensure our ability to transmit, distribute and sell electric energy, ensure the health and safety of our employees, contractors, customers and communities and provide essential services to the communities in which we operate. In addition to the impacts to demand within our service territory, we also have incurred and expect to continue to incur expenses relating to COVID-19, and such expenses may include those that relate to events outside of our control. As the economic impact of the COVID-19 pandemic started to materialize in Ohio in the second half of March 2020 and continued for the duration of 2020, the COVID-19 pandemic primarily impacted our retail sales demand as shown by the changes in weather-normalized volumes of kWh sold compared to the weather-normalized volumes for the same periods in 2019: For the three month periods ended For the year ended Customer class March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 December 31, 2020 Commercial (3.2)% (11.0)% (2.3)% (5.0)% (5.3)% Industrial (1.5)% (19.9)% 0.9% 1.1% (5.0)% Residential 0.3% 8.5% 11.0% (0.9)% 4.2% As noted above, we also have incurred, and expect to continue to incur, expenses relating to COVID-19; however, see Note 3 – Regulatory Matters for a discussion of regulatory measures, which partially mitigate the impact of these expenses. The ultimate magnitude and duration of the COVID-19 pandemic is unknown at this time and may have material and adverse effects on our results of operations, financial condition and cash flows in future periods. |
Overview and Summary of Signi_3
Overview and Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies [Line Items] | |
Property, Plant and Equipment, Impairment | GAAP requires that we test long-lived assets for impairment when indicators of impairment exist. If an asset is deemed to be impaired, we are required to write down the asset to its fair value with a charge to current earnings. The net book value of our property, plant, and equipment was $1,565.3 million and $1,445.6 million as of December 31, 2020 and 2019, respectively. We do not believe any of these assets are currently impaired. In making this assessment, we consider such factors as: the overall condition and distribution capacity of the assets; the expected ability to recover additional expenditures in the assets; and the anticipated demand and relative pricing of retail electricity in our service territory. |
Debt, Policy [Policy Text Block] | Costs incurred in connection with the issuance of long-term debt are deferred and presented as a direct reduction from the face amount of that debt and amortized over the related financing period using the effective interest method. Debt issuance costs related to a line-of-credit or revolving credit facility are deferred and presented as an asset and amortized over the related financing period. Make-whole payments in connection with early debt retirements are classified as cash flows used in financing activities. |
Financial Statement Presentation | We prepare Consolidated Financial Statements for DPL. DPL’s Consolidated Financial Statements include the accounts of DPL and its wholly-owned subsidiaries except for DPL Capital Trust II which is not consolidated, consistent with the provisions of GAAP. All material intercompany accounts and transactions are eliminated in consolidation. We have evaluated subsequent events through the date this report is issued. |
Reclassifications | Certain amounts from prior periods have been reclassified to conform to the current period presentation. |
Discontinued Operations, Policy [Policy Text Block] | Discontinued operations reporting occurs only when the disposal of a business or a group of assets represents a strategic shift that has (or will have) a major effect on our operations and financial results. We report financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Prior period amounts in the statement of operations and balance sheet are retrospectively revised to reflect the businesses determined to be discontinued operations. The cash flows of businesses that are determined to be discontinued operations are included within the relevant categories within operating, investing and financing activities on the face of the Consolidated Statements of Cash Flows. Transactions between the businesses determined to be discontinued operations and businesses that are expected to continue to exist after the disposal are not eliminated to appropriately reflect the continuing operations and balances held-for-sale. The results of discontinued operations include any gain or loss recognized on closing or adjustment of the carrying amount to fair value. See Note 15 – Discontinued Operations for further information. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the revenues and expenses of the periods reported. Actual results could differ from these estimates. Significant items subject to such estimates and judgments include: the carrying value of Property, plant and equipment; unbilled revenues; the valuation of derivative instruments; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; reserves recorded for income tax exposures; litigation; contingencies; the valuation of AROs; and assets and liabilities related to employee benefits. |
Revenue Recognition | Revenues are recognized from retail and wholesale electricity sales and electricity transmission and distribution delivery services. Revenue is recognized upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Energy sales to customers are based on the reading of their meters that occurs on a systematic basis throughout the month. We recognize the revenues on our Consolidated Statements of Operations using an accrual method for retail and other energy sales that have not yet been billed, but where electricity has been consumed. This is termed “unbilled revenues” and is a widely recognized and accepted practice for utilities. At the end of each month, unbilled revenues are determined by the estimation of unbilled energy provided to customers since the date of the last meter reading, estimated line losses, the assignment of unbilled energy provided to customer classes and the average rate per customer class. For additional information, see Note 14 – Revenue. |
Receivables | We establish provisions for uncollectible accounts by using both historical average loss percentages to project future losses and by establishing specific provisions for known credit issues. Amounts are written off when reasonable collections efforts have been exhausted. |
Property, Plant and Equipment | New property, plant and equipment additions are stated at cost. For regulated transmission and distribution property, cost includes direct labor and material, allocable overhead expenses and an allowance for funds used during construction (AFUDC). AFUDC represents the cost of borrowed funds and equity used to finance regulated construction projects. Capitalization of AFUDC and interest ceases at either project completion or at the date specified by regulators. AFUDC and capitalized interest was $3.0 million, $3.2 million and $0.5 million in the years ended December 31, 2020, 2019 and 2018, respectively. For substantially all depreciable property, when a unit of property is retired, the original cost of that property less any salvage value is charged to Accumulated depreciation and amortization, consistent with composite depreciation practices. |
Repairs and Maintenance | Costs associated with maintenance activities are recognized at the time the work is performed. These costs, which include labor, materials and supplies and outside services required to maintain equipment and facilities, are capitalized or expensed based on defined units of property. |
Depreciation - Change in Estimate | Depreciation expense is calculated using the straight-line method, which allocates the cost of property over its estimated useful life. For DPL’s transmission and distribution assets, straight-line depreciation is applied monthly on an average composite basis using group rates that approximated 3.8% in 2020, 4.0% in 2019 and 4.3% in 2018. Depreciation expense was $70.0 million, $67.9 million and $69.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. |
Regulatory Accounting | As a regulated utility, DP&L applies the provisions of FASC 980 “Regulated Operations”, which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory assets have been included as allowable costs for ratemaking purposes, as authorized by the PUCO or established regulatory practices. Regulatory liabilities generally represent obligations to make refunds or future rate reductions to customers for previous over collections or the deferral of revenues collected for costs that DP&L expects to incur in the future. The deferral of costs (as regulatory assets) is appropriate only when the future recovery of such costs is probable. In assessing probability, we consider such factors as specific orders from the PUCO or FERC, regulatory precedent and the current regulatory environment. To the extent recovery of costs is no longer deemed probable, related regulatory assets would be required to be expensed in current period earnings. Our regulatory assets and liabilities have been created pursuant to a specific order of the PUCO or FERC or established regulatory practices, such as other utilities under the jurisdiction of the PUCO or FERC being granted recovery of similar costs. It is probable, but not certain, that these regulatory assets will be recoverable, subject to PUCO or FERC approval. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 3 – Regulatory Matters for more information. |
Inventories | Inventories are carried at average cost, net of reserves, and include materials and supplies used for utility operations. |
Intangibles | Intangibles include software, emission allowances and renewable energy credits. Emission allowances are carried on a first-in, first-out (FIFO) basis for purchased emission allowances. Net gains or losses on the sale of excess emission allowances, representing the difference between the sales proceeds and the cost of emission allowances, are recorded as a component of our fuel costs and are reflected in Operating income when realized. Emission allowances are amortized as they are used in our operations on a FIFO basis. Renewable energy credits are carried on a weighted average cost basis and amortized as they are used or retired. Software is amortized over seven years . Amortization expense was $3.3 million, $4.4 million and $6.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. The estimated amortization expense of this internal-use software over the next five years is $10.7 million ($3.0 million in 2021, $2.2 million in 2022, $2.0 million in 2023, $1.8 million in 2024 and $1.7 million in 2025). |
Income Taxes | Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective income tax bases. We establish an allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Our tax positions are evaluated under a more likely than not recognition threshold and measurement analysis before they are recognized for financial statement reporting. Uncertain tax positions have been classified as noncurrent income tax liabilities unless expected to be paid within one year. Our policy for interest and penalties is to recognize interest and penalties as a component of the provision for income taxes in the Consolidated Statement of Operations. Income taxes payable, which are includable in allowable costs for ratemaking purposes in future years, are recorded as regulatory assets or liabilities with a corresponding deferred tax liability or asset. Investment tax credits that reduced federal income taxes in the years they arose have been deferred and are being amortized to income over the useful lives of the properties in accordance with regulatory treatment. See Note 3 – Regulatory Matters for additional information. DPL and its subsidiaries file U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 8 – Income Taxes for additional information. |
Financial Instruments | Our Master Trust investments in debt and equity financial instruments of publicly traded entities are classified as equity investments. These equity securities are carried at fair value and unrealized gains and losses on these securities are recorded in Other income. As these financial instruments are held to be used for the benefit of employees or former employees participating in employee benefit plans and are not used for general operating purposes, they are classified as non-current in Other non-current assets on the Consolidated Balance Sheets. See |
Assets and liabilities held-for-sale, policy [Policy Text Block] | A business classified as held-for-sale is reflected on the balance sheet at the lower of its carrying amount or estimated fair value less cost to sell. A loss is recognized if the carrying amount of the business exceeds its estimated fair value less cost to sell. This loss is limited to the carrying value of long-lived assets until the completion of the sale, at which point, any additional loss is recognized. If the fair value of the business subsequently exceeds the carrying amount while the business is still held-for-sale, any impairment expense previously recognized will be reversed up to the lower of the previously recognized expense or the subsequent excess. Assets and liabilities related to a business classified as held-for-sale are segregated in the current balance sheet in the period in which the business is classified as held-for-sale. Assets and liabilities of held-for-sale businesses are classified as current when they are expected to be disposed of within twelve months. Transactions between the business held-for-sale and businesses that are expected to continue to exist after the disposal are not eliminated to |
Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities | DP&L collects certain excise taxes levied by state or local governments from its customers. DP&L’s excise taxes and certain other taxes are accounted for on a net basis and recorded as a reduction in revenues in the accompanying Consolidated Statements of Operations. The amounts for the years ended December 31, 2020, 2019 and 2018, were $48.1 million, $50.1 million and $51.7 million, respectively. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents. Restricted Cash Restricted cash includes cash which is restricted as to withdrawal or usage. The nature of the restriction includes an agreement related to cash collected under the DMR, which was restricted to pay debt obligations at DPL and DP&L and position DP&L to modernize and/or maintain its transmission and distribution infrastructure. |
Financial Derivatives | Financial Derivatives All derivatives are recognized as either assets or liabilities in the balance sheets and are measured at fair value. Changes in the fair value are recorded in earnings unless the derivative is designated as a cash flow hedge of a forecasted transaction or it qualifies for the normal purchases and sales exception. We have, in the past, used interest rate hedges to manage the interest rate risk of our variable rate debt. We use cash flow hedge accounting when the hedge or a portion of the hedge is deemed to be highly effective, which results in changes in fair value being recorded within accumulated other comprehensive income / (loss), a component of shareholder’s deficit. We have elected not to offset net derivative positions in the financial statements. Accordingly, we do not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 6 – Derivative Instruments and Hedging Activities for additional information. |
Insurance and Claims Costs | Insurance and Claims Costs In addition to insurance obtained from third-party providers, MVIC, a wholly-owned captive subsidiary of DPL, provides insurance coverage solely to us and our subsidiaries for workers’ compensation, general liability and property damage on an ongoing basis. Insurance and claims costs associated with MVIC include estimated liabilities of approximately $3.2 million and $4.5 million at December 31, 2020 and 2019, respectively, within Accrued and other current liabilities on the DPL Consolidated Balance Sheets. DPL has estimated liabilities for medical, life, disability and other reserves for claims costs below certain coverage thresholds of third-party providers of approximately $11.1 million and $3.3 million at December 31, 2020 and 2019, respectively, within Accrued and other current liabilities and Other non-current liabilities on the balance sheets. The estimated liabilities for workers’ compensation, medical, life and disability costs at DPL are actuarially determined using certain assumptions. There is uncertainty associated with these loss estimates, and actual results may differ from the estimates. Modification of these loss estimates based on experience and changed circumstances is reflected in the period in which the estimate is re-evaluated. |
Pension and Postretirement Benefits | We recognize in our Consolidated Balance Sheets an asset or liability reflecting the funded status of pension and other postretirement plans with current-year changes from actuarial gains or losses related to our regulated operations, that would otherwise be recognized in AOCL, recorded as a regulatory asset as this can be recovered through future rates. Such changes that are not related to our regulated operations are recognized in AOCL. All plan assets are recorded at fair value. We follow the measurement date provisions of the accounting guidance, which require a year-end measurement date of plan assets and obligations for all defined benefit plans. We account for and disclose pension and postretirement benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postretirement plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost and funding requirements of the plans. Consistent with the requirements of FASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans. See Note 9 – Benefit Plans for more information. |
Related Party Transactions | In the normal course of business, DPL enters into transactions with related parties. All material intercompany accounts and transactions are eliminated in DPL’s Consolidated Financial Statements. See Note 12 – Related Party Transactions for more information on Related Party Transactions. |
Recently Issued Accounting Standards | New accounting pronouncements The following table provides a brief description of recent accounting pronouncements that had an impact on our consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on our consolidated financial statements. Accounting Standard Description Date of Adoption Effect on the financial statements upon adoption New Accounting Standards Adopted 2016-13, 2018-19, 2019-04, 2019-05, 2019-10, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments See discussion of the ASUs below. January 1, 2020. The adoption of this standard had no material effect on our consolidated financial statements. Adoption of FASC Topic 326, "Financial Instruments - Credit Losses" On January 1, 2020, we adopted ASC 326 Financial Instruments - Credit Losses and its subsequent corresponding updates ("ASC 326"). The new standard updates the impairment model for financial assets measured at amortized cost, known as the Current Expected Credit Loss ("CECL") model. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities are required to use a new forward-looking "expected loss" model that generally results in the earlier recognition of an allowance for credit losses. For available-for-sale debt securities with unrealized losses, entities measure credit losses as it was done under previous GAAP, except that unrealized losses due to credit-related factors are now recognized as an allowance on the balance sheet with a corresponding adjustment to earnings in the income statement. We applied the modified retrospective method of adoption for ASC 326. Under this transition method, we applied the transition provisions starting at the date of adoption. The CECL model primarily impacts the calculation of our expected credit losses in gross customer trade accounts receivable. The adoption of ASC 326 and the application of CECL on our trade accounts receivable did not have a material impact on our Consolidated Financial Statements. New accounting pronouncements issued but not yet effective - The following table provides a brief description of recent accounting pronouncements that could have a material impact on our consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on our consolidated financial statements. Accounting Standard Description Date of Adoption Effect on the financial statements upon adoption New Accounting Standards Issued but Not Yet Effective 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The standard provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform. This standard is effective for a limited period of time (March 12, 2020 - December 21, 2022). Effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | DPL has a wholly-owned business trust, DPL Capital Trust II (the Trust), formed for the purpose of issuing trust capital securities to third-party investors. In 2003, DPL deconsolidated the Trust upon adoption of the accounting standards related to variable interest entities and currently treats the Trust as an unconsolidated subsidiary. The Trust holds mandatorily redeemable trust capital securities. The investment in the Trust, which amounts to $0.2 million and $0.2 million at December 31, 2020 and 2019, respectively, is included within Other noncurrent assets on the consolidated balance sheets. DPL also has a note payable to the Trust amounting to $15.6 million and $15.6 million at December 31, 2020 and 2019, respectively, that was established upon the Trust’s deconsolidation in 2003. See Note 7 – Long-term debt for additional information. In addition to the obligations under the note payable mentioned above, DPL also agreed to a security obligation which represents a full and unconditional guarantee of payments to the capital security holders of the Trust. |
Overview and Summary of Signi_4
Overview and Summary of Significant Accounting Policies Overview and Summary of Significant Accounting Polices (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | The following table summarizes cash, cash equivalents and restricted cash amounts reported on the Consolidated Balance Sheets that reconcile to the total of such amounts as shown on the Consolidated Statements of Cash Flows: December 31, $ in millions 2020 2019 Cash and cash equivalents $ 25.4 $ 36.5 Restricted cash 0.1 10.5 Cash, Cash Equivalents and Restricted Cash, End of Period $ 25.5 $ 47.0 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Financial Information [Line Items] | |
Accounts Receivable, Allowance for Credit Loss | The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the year ended December 31, 2020: $ in millions Beginning Allowance Balance at January 1, 2020 Current Period Provision Write-offs Charged Against Allowances Recoveries Collected Ending Allowance Balance at December 31, 2020 Allowance for credit losses $ 0.4 $ 3.0 $ (2.3) $ 1.7 $ 2.8 |
Supplemental Financial Information | December 31, $ in millions 2020 2019 Accounts receivable, net Customer receivables $ 48.5 $ 45.7 Unbilled revenue 21.6 19.4 Amounts due from affiliates 0.2 0.3 Due from PJM transmission enhancement settlement (a) 1.7 1.8 Other 0.5 1.1 Allowance for credit losses (2.8) (0.4) Total accounts receivable, net $ 69.7 $ 67.9 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The amounts reclassified out of Accumulated Other Comprehensive Income / (Loss) by component during the years ended December 31, 2020, 2019 and 2018 are as follows: Details about Accumulated Other Comprehensive Income / (Loss) Components Affected line item in the Consolidated Statements of Operations Years ended December 31, $ in millions 2020 2019 2018 Gains and losses on cash flow hedges (Note 6): Interest expense (1.1) (1.2) (1.2) Income tax expense 0.2 0.1 0.4 Net of income taxes (0.9) (1.1) (0.8) Loss from discontinued operations — — 4.4 Tax benefit from discontinued operations — (0.4) (1.2) Net of income taxes — (0.4) 3.2 Amortization of defined benefit pension items (Note 9): Other expense 1.3 0.2 0.8 Income tax benefit (0.3) — (0.2) Net of income taxes 1.0 0.2 0.6 Total reclassifications for the period, net of income taxes $ 0.1 $ (1.3) $ 3.0 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in the components of Accumulated Other Comprehensive Income / (Loss) during the years ended December 31, 2020 and 2019 are as follows: $ in millions Gains / (losses) on cash flow hedges Change in unfunded pension obligation Total Balance at January 1, 2019 $ 17.0 $ (14.8) $ 2.2 Other comprehensive loss before reclassifications (1.0) (3.5) (4.5) Amounts reclassified from accumulated other comprehensive income / (loss) to earnings (1.5) 0.2 (1.3) Net current period other comprehensive loss (2.5) (3.3) (5.8) Balance at December 31, 2019 14.5 (18.1) (3.6) Other comprehensive loss before reclassifications — (8.8) (8.8) Amounts reclassified from accumulated other comprehensive loss to earnings (0.9) 1.0 0.1 Net current period other comprehensive loss (0.9) (7.8) (8.7) Balance at December 31, 2020 $ 13.6 $ (25.9) $ (12.3) |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of Regulatory Assets and Liabilities [Table Text Block] | The following table presents DPL’s Regulatory assets and liabilities: Type of Recovery Amortization Through December 31, $ in millions 2020 2019 Regulatory assets, current: Undercollections to be collected through rate riders A/B 2021 $ 26.8 $ 19.1 Rate case expenses being recovered in base rates B 2021 0.7 0.6 Total regulatory assets, current 27.5 19.7 Regulatory assets, non-current: Pension benefits B Ongoing 94.4 83.9 Unrecovered OVEC charges C Undetermined 28.9 29.1 Regulatory compliance costs B Undetermined 6.3 6.3 Smart grid and AMI costs B Undetermined 8.5 8.5 Unamortized loss on reacquired debt B Various 7.1 10.0 Deferred storm costs A Undetermined 11.5 5.1 Deferred vegetation management and other A/B Undetermined 15.7 12.7 Decoupling deferral C Undetermined 13.8 13.8 Uncollectible deferral C Undetermined 7.4 4.4 Total regulatory assets, non-current 193.6 173.8 Total regulatory assets $ 221.1 $ 193.5 Regulatory liabilities, current: Overcollection of costs to be refunded through rate riders A/B 2021 $ 18.0 $ 27.9 Total regulatory liabilities, current 18.0 27.9 Regulatory liabilities, non-current: Estimated costs of removal - regulated property Not Applicable 138.8 143.6 Deferred income taxes payable through rates Various 61.2 73.6 TCJA regulatory liability B Ongoing 7.2 12.9 PJM transmission enhancement settlement A 2025 7.0 8.9 Postretirement benefits B Ongoing 4.1 4.6 Total regulatory liabilities, non-current 218.3 243.6 Total regulatory liabilities $ 236.3 $ 271.5 A – Recovery of incurred costs plus rate of return. B – Recovery of incurred costs without a rate of return. C – Recovery not yet determined, but recovery is probable of occurring in future rate proceedings. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |
Summary of Property, Plant, and Equipment | The following is a summary of DPL’s Property, plant and equipment with corresponding composite depreciation rates at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 $ in millions Composite Rate Composite Rate Regulated: Transmission $ 273.0 3.2% $ 235.8 3.9% Distribution 1,453.7 4.0% 1,364.2 4.1% General 17.7 7.6% 16.5 9.0% Non-depreciable 65.1 N/A 61.6 N/A Total regulated 1,809.5 1,678.1 Unregulated: Other 24.8 4.5% 19.0 7.6% Non-depreciable 5.0 N/A 4.8 N/A Total unregulated 29.8 23.8 Total property, plant and equipment in service $ 1,839.3 3.8% $ 1,701.9 4.0% |
Changes in the Liability for Generation AROs | Changes in the Liability for AROs 2020 2019 Balance as of January 1 $ 4.7 $ 4.7 Settlements (a) (4.7) — Balance as of December 31 $ — $ 4.7 (a) Settlements related to sale of DP&L's Hutchings Coal Station. See Note 16 – Dispositions for more information on the sale of the Hutchings Coal Station. |
Changes in the Liability for Transmission and Distribution Asset Removal Costs | Changes in the Regulatory Liability for Transmission and Distribution Asset Removal Costs 2020 2019 Balance as of January 1 $ 143.6 $ 139.1 Additions 15.6 14.8 Settlements (20.4) (10.3) Balance as of December 31 $ 138.8 $ 143.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Fair Value and Cost of Non-Derivative Instruments | The table below presents the fair value and cost of our non-derivative financial instruments at December 31, 2020 and 2019. See Note 6 – Derivative Instruments and Hedging Activities for the fair values of our derivative instruments. December 31, 2020 December 31, 2019 $ in millions Cost Fair Value Cost Fair Value Assets Money market funds $ 0.3 $ 0.3 $ 0.3 $ 0.3 Equity securities 2.1 4.5 2.3 4.2 Debt securities 4.0 4.1 4.0 4.1 Hedge funds — — 0.1 0.1 Tangible assets — — 0.1 0.1 Total assets $ 6.4 $ 8.9 $ 6.8 $ 8.8 Carrying Value Fair Value Carrying Value Fair Value Liabilities Long-term debt $ 1,393.6 $ 1,571.6 $ 1,363.1 $ 1,404.0 |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The fair value of assets and liabilities at December 31, 2020 and 2019 and the respective category within the fair value hierarchy for DPL was determined as follows: $ in millions Fair Value at December 31, 2020 (a) Fair Value at December 31, 2019 (a) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Master trust assets Money market funds $ 0.3 $ — $ — $ 0.3 $ 0.3 $ — $ — $ 0.3 Equity securities — 4.5 — 4.5 — 4.2 — 4.2 Debt securities — 4.1 — 4.1 — 4.1 — 4.1 Hedge funds — — — — — 0.1 — 0.1 Tangible assets — — — — — 0.1 — 0.1 Total Master trust assets 0.3 8.6 — 8.9 0.3 8.5 — 8.8 Derivative assets Interest rate hedge — — — — — 0.1 — 0.1 Total Derivative assets — — — — — 0.1 — 0.1 Total assets $ 0.3 $ 8.6 $ — $ 8.9 $ 0.3 $ 8.6 $ — $ 8.9 Liabilities Long-term debt $ — $ 1,554.2 $ 17.4 $ 1,571.6 $ — $ 1,386.5 $ 17.5 $ 1,404.0 Total liabilities $ — $ 1,554.2 $ 17.4 $ 1,571.6 $ — $ 1,386.5 $ 17.5 $ 1,404.0 (a) Includes credit valuation adjustment |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Our financial instruments are valued using the market approach in the following categories: • Level 1 inputs are used for money market accounts that are considered cash equivalents. The fair value is determined by reference to quoted market prices and other relevant information generated by market transactions. • Level 2 inputs are used to value derivatives such as interest rate hedge contracts which are valued using a benchmark interest rate. Other Level 2 assets include open-ended mutual funds in the Master Trust, which are valued using the end of day NAV per unit. • Level 3 inputs such as certain debt balances are considered a Level 3 input because the notes are not publicly traded. Our long-term debt is fair valued for disclosure purposes only. All of the inputs to the fair value of our derivative instruments are from quoted market prices. Our long-term debt is fair valued for disclosure purposes only and most of the fair values are determined using quoted market prices in inactive markets. These fair value inputs are considered Level 2 in the fair value hierarchy. As the Wright-Patterson Air Force Base note is not publicly traded, fair value is assumed to equal carrying value. These fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs. Additional Level 3 disclosures are not presented since our long-term debt is not recorded at fair value. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Gains or Losses Recognized in AOCI for the Cash Flow Hedges | The following tables provide information on gains or losses recognized in AOCL for the cash flow hedges for the periods indicated: Years ended December 31, 2020 2019 2018 $ in millions (net of tax) Interest Rate Power Interest Rate Power Interest Rate Beginning accumulated derivative gain in AOCL $ 14.5 $ 0.4 $ 16.6 $ (2.8) $ 17.5 Net gains / (losses) associated with current period hedging transactions — — (1.0) — (0.1) Net (gains) / losses reclassified to earnings: Interest Expense (0.9) — (1.1) — (0.8) (Income) / loss from discontinued operations before income tax — (0.4) — 3.2 — Ending accumulated derivative gain in AOCL $ 13.6 $ — $ 14.5 $ 0.4 $ 16.6 Portion expected to be reclassified to earnings in the next twelve months $ (0.8) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table summarizes the fair value, balance sheet classification and hedging designation of DPL’s interest rate swaps. December 31, $ in millions Hedging Designation Balance sheet classification 2020 2019 Interest rate swap Cash Flow Hedge Prepayments and other current assets $ — $ 0.1 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Instrument [Line Items] | |
Long-term Debt | Long-term debt $ in millions Interest Rate Maturity December 31, 2020 December 31, 2019 First Mortgage Bonds 3.95% 2049 $ 425.0 $ 425.0 First Mortgage Bonds 3.20% 2040 140.0 — Tax-exempt First Mortgage Bonds - rates from: 1.16% - 2.47% (a) and 2.4% - 3.07% (b) 2020 — 140.0 U.S. Government note 4.20% 2061 17.4 17.5 Unamortized deferred financing costs (5.7) (5.4) Unamortized debt discounts and premiums, net (2.6) (2.7) Total long-term debt at subsidiary 574.1 574.4 Senior unsecured bonds 7.25% 2021 — 380.0 Senior unsecured bonds 4.125% 2025 415.0 — Senior unsecured bonds 4.35% 2029 400.0 400.0 Note to DPL Capital Trust II (c) 8.125% 2031 15.6 15.6 Unamortized deferred financing costs (10.2) (5.9) Unamortized debt discounts and premiums, net (0.9) (1.0) Total long-term debt 1,393.6 1,363.1 Less: current portion (0.2) (139.8) Long-term debt, net of current portion $ 1,393.4 $ 1,223.3 (a) Range of interest rates for the year ended December 31, 2020. (b) Range of interest rates for the year ended December 31, 2019. (c) Note payable to related party. See Note 12 – Related Party Transactions for additional information. |
Long-term Debt Maturities | At December 31, 2020, maturities of long-term debt are summarized as follows: Due during the years ending December 31, $ in millions 2021 $ 0.2 2022 0.2 2023 0.2 2024 0.2 2025 415.2 Thereafter 997.0 1,413.0 Unamortized discounts and premiums, net (3.5) Deferred financing costs, net (15.9) Total long-term debt $ 1,393.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Line Items] | |
Components of Income Tax Expense | DPL’s components of income tax expense for both continuing and discontinued operations were as follows: Years ended December 31, $ in millions 2020 2019 2018 Components of tax expense / (benefit) Federal - current $ (45.1) $ (22.0) $ 40.0 State and Local - current (0.1) 0.6 0.4 Total current (45.2) (21.4) 40.4 Federal - deferred 38.7 14.1 (9.6) State and local - deferred 1.1 1.1 (0.1) Total deferred 39.8 15.2 (9.7) Tax expense / (benefit) $ (5.4) $ (6.2) $ 30.7 |
Schedule of Effective Income Tax Rate Reconciliation | The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to DPL's effective tax rate, as a percentage of total income before taxes for the years ended December 31, 2020, 2019 and 2018: Years ended December 31, 2020 2019 2018 Statutory Federal tax rate 21.0 % 21.0 % 21.0 % State taxes, net of Federal tax benefit (13.1) % 1.4 % 0.1 % AFUDC - equity (23.6) % (0.1) % (0.1) % Depreciation of flow-through differences 94.8 % (28.2) % (4.6) % Amortization of investment tax credits 4.1 % (0.3) % (0.3) % Deferred tax adjustments — % — % 15.5 % Permanent differences — % — % 0.1 % Other, net 1.2 % (0.1) % (1.2) % Effective tax rate 84.4 % (6.3) % 30.5 % |
Components of Deferred Tax Assets and Liabilities | The components of our deferred taxes are as follows: December 31, $ in millions 2020 2019 Net non-current assets / (liabilities) Depreciation / property basis $ (160.5) $ (118.3) Income taxes recoverable 14.4 17.1 Regulatory assets (21.0) (24.8) Investment tax credit 0.6 0.6 Compensation and employee benefits (1.7) 2.2 Intangibles (0.4) (0.4) Long-term debt (1.3) (2.1) Other (a) (7.3) (8.0) Net non-current liabilities $ (177.2) $ (133.7) (a) The Other caption includes deferred tax assets of $39.0 million in 2020 and $29.0 million in 2019 related to state and local tax net operating loss carryforwards, with related valuation allowances of $39.0 million in 2020 and $29.0 million in 2019. These net operating loss carryforwards expire from 2020 to 2037. |
Schedule of Tax Expense Benefit That Were Credited To Accumulated Other Comprehensive Loss (Text Block) | The following table presents the tax expense / (benefit) related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss. Years ended December 31, $ in millions 2020 2019 2018 Tax expense / (benefit) $ (2.6) $ (0.5) $ 0.2 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Pension And Postretirement Benefit Plans' Obligations And Assets | The following tables set forth the changes in our pension plans' obligations and assets recorded on the Consolidated Balance Sheets at December 31, 2020 and 2019. The amounts presented in the following tables for pension obligations include the collective bargaining plan formula, traditional management plan formula and cash balance plan formula and the SERP in the aggregate and have not been adjusted for $1.4 million, $1.4 million and $1.8 million of costs billed to the Service Company for the years ended December 31, 2020, 2019 and 2018, respectively. $ in millions Years ended December 31, Change in benefit obligation 2020 2019 Benefit obligation at January 1 $ 421.5 $ 386.5 Service cost 3.7 3.7 Interest cost 11.8 14.9 Actuarial loss 52.7 42.1 Benefits paid (40.2) (25.7) Benefit obligation at December 31 449.5 421.5 Change in plan assets Fair value of plan assets at January 1 352.0 312.9 Actual return on plan assets 45.6 57.0 Employer contributions 7.7 7.8 Benefits paid (40.2) (25.7) Fair value of plan assets at December 31 365.1 352.0 Unfunded status of plan $ (84.4) $ (69.5) December 31, Amounts recognized in the Balance sheets 2020 2019 Current liabilities $ (0.2) $ (0.2) Non-current liabilities (84.2) (69.3) Net liability at end of year $ (84.4) $ (69.5) Amounts recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax Components: Prior service cost $ 6.9 $ 7.9 Net actuarial loss 124.0 104.3 Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax $ 130.9 $ 112.2 Recorded as: Regulatory asset $ 92.7 $ 83.7 Accumulated other comprehensive income 38.2 28.5 Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax $ 130.9 $ 112.2 |
Schedule of Net Periodic Benefit Cost / (Income) | The net periodic benefit cost of the pension plans was: Years ended December 31, $ in millions 2020 2019 2018 Service cost $ 3.7 $ 3.7 $ 6.1 Interest cost 11.8 14.9 13.8 Expected return on assets (18.6) (20.1) (21.2) Amortization of unrecognized: Actuarial loss 1.0 4.2 6.4 Prior service cost 6.1 1.3 0.9 Net periodic benefit cost $ 4.0 $ 4.0 $ 6.0 Rates relevant to each year's expense calculations Discount rate 3.33 % 4.35 % 3.66 % Expected return on plan assets 5.60 % 6.25 % 6.25 % |
Schedule of Allocation of Plan Assets | The following table summarizes our target pension plan allocation for 2020: Long-Term Percentage of plan assets as of December 31, Asset category (a) 2020 2019 Equity Securities 41% 42% 40% Debt Securities 59% 57% 58% Cash and Cash Equivalents —% 1% 1% Real Estate —% —% 1% |
Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets And Regulatory Liabilities | Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities Years ended December 31, $ in millions 2020 2019 2018 Net actuarial loss $ 25.8 $ 5.3 $ 3.4 Plan curtailment (a) — — — Reversal of amortization item: Net actuarial loss (1.0) (4.2) (6.4) Prior service cost (6.1) (1.3) (0.9) Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities $ 18.7 $ (0.2) $ (3.9) Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities $ 22.7 $ 3.8 $ 2.1 |
Weighted Average Assumptions Used to Determine Benefit Obligations | The weighted average assumptions used to determine benefit obligations at December 31, 2020, 2019 and 2018 were: Benefit Obligation Assumptions Pension 2020 2019 2018 Discount rate for obligations 2.44% 3.33% 4.35% Rate of compensation increases 3.21% 3.94% 3.94% |
Estimated Future Benefit Payments and Medicare Part D Reimbursements | Benefit payments, which reflect future service, are expected to be paid as follows: Estimated future benefit payments $ in millions due within the following years: Pension 2021 $ 26.4 2022 $ 26.0 2023 $ 25.7 2024 $ 25.3 2025 $ 24.7 2026 - 2030 $ 118.1 |
Pension [Member] | |
Pension And Postretirement Benefit Plans' Obligations And Assets | The following tables set forth the changes in our pension plans' obligations and assets recorded on the Consolidated Balance Sheets at December 31, 2020 and 2019. The amounts presented in the following tables for pension obligations include the collective bargaining plan formula, traditional management plan formula and cash balance plan formula and the SERP in the aggregate and have not been adjusted for $1.4 million, $1.4 million and $1.8 million of costs billed to the Service Company for the years ended December 31, 2020, 2019 and 2018, respectively. $ in millions Years ended December 31, Change in benefit obligation 2020 2019 Benefit obligation at January 1 $ 421.5 $ 386.5 Service cost 3.7 3.7 Interest cost 11.8 14.9 Actuarial loss 52.7 42.1 Benefits paid (40.2) (25.7) Benefit obligation at December 31 449.5 421.5 Change in plan assets Fair value of plan assets at January 1 352.0 312.9 Actual return on plan assets 45.6 57.0 Employer contributions 7.7 7.8 Benefits paid (40.2) (25.7) Fair value of plan assets at December 31 365.1 352.0 Unfunded status of plan $ (84.4) $ (69.5) December 31, Amounts recognized in the Balance sheets 2020 2019 Current liabilities $ (0.2) $ (0.2) Non-current liabilities (84.2) (69.3) Net liability at end of year $ (84.4) $ (69.5) Amounts recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax Components: Prior service cost $ 6.9 $ 7.9 Net actuarial loss 124.0 104.3 Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax $ 130.9 $ 112.2 Recorded as: Regulatory asset $ 92.7 $ 83.7 Accumulated other comprehensive income 38.2 28.5 Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax $ 130.9 $ 112.2 |
Fair Value Measurements for Plan Assets | The fair values of our pension plan assets at December 31, 2020 by asset category are as follows: $ in millions Market Value at December 31, 2020 Quoted prices Significant Significant Asset category (Level 1) (Level 2) (Level 3) Mutual fund - equities (a) $ 153.8 $ — $ 153.8 $ — Mutual fund - debt (b) 144.6 — 144.6 — Government debt securities (c) 64.8 — 64.8 — Cash and cash equivalents (d) 1.9 1.9 — — Total pension plan assets $ 365.1 $ 1.9 $ 363.2 $ — (a) This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method. (b) This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method. (c) This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method. (d) This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost. The fair values of our pension plan assets at December 31, 2019 by asset category are as follows: $ in millions Market Value at December 31, 2019 Quoted prices Significant Significant Asset category (Level 1) (Level 2) (Level 3) Mutual fund - equities (a) $ 142.9 $ — $ 142.9 $ — Mutual fund - debt (b) 115.6 — 115.6 — Government debt securities (c) 89.1 — 89.1 — Cash and cash equivalents (d) 1.9 1.9 — — Other investments: Core property collective fund (e) 2.5 — 2.5 — Total pension plan assets $ 352.0 $ 1.9 $ 350.1 $ — (a) This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method. (b) This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method. (c) This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method. (d) This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost. (e) This category represents a property fund that invests in commercial real estate. The fair value of the 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. |
Contractual Obligations, Comm_2
Contractual Obligations, Commercial Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule Of Contractual Obligations And Commercial Commitments | We enter into various contractual obligations and other commercial commitments that may affect the liquidity of our operations. At December 31, 2020, these include: Payments due in: $ in millions Total Less than 2 - 3 4 - 5 More than Electricity purchase commitments $ 120.8 $ 86.0 $ 34.8 $ — $ — Purchase orders and other contractual obligations $ 92.5 $ 87.8 $ 4.7 $ — $ — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Entity Information [Line Items] | |
Schedule of Related Party Transactions [Table Text Block] | The following table provides a summary of our related party transactions: Years ended December 31, $ in millions 2020 2019 2018 Transactions with the Service Company Charges for services provided $ 38.8 $ 33.8 $ 41.0 Charges to the Service Company $ 4.2 $ 3.6 $ 4.9 Transactions with other AES affiliates: Payments for health, welfare and benefit plans $ 10.7 $ 11.2 $ 7.9 Consulting and other services $ 0.8 $ 0.7 $ 2.0 Balances with related parties: At December 31, 2020 At December 31, 2019 Net payable to the Service Company $ (14.8) $ (11.0) Net receivable from / (payable to) AES and other AES affiliates (a) $ (1.7) $ 2.0 (a) The December 31, 2019 net receivable amount includes a $5.1 million receivable balance with AES related to the sale of software previously recorded on AES Ohio Generation during the year ended December 31. 2019. There was no gain or loss recorded on the transaction. These $5.1 million of proceeds on the sale were received in 2020. |
Business Segments Business Segm
Business Segments Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables present financial information for DPL’s reportable business segment: $ in millions Utility Other Adjustments and Eliminations DPL Consolidated Year ended December 31, 2020 Revenues from external customers $ 651.2 $ 9.3 $ — $ 660.5 Intersegment revenues 0.9 3.6 (4.5) — Total revenues $ 652.1 $ 12.9 $ (4.5) $ 660.5 Depreciation and amortization $ 71.8 $ 1.5 $ — $ 73.3 Interest expense $ 24.3 $ 47.0 $ — $ 71.3 Loss on early extinguishment of debt $ — $ 31.7 $ — $ 31.7 Income / (loss) from continuing operations before income tax $ 58.1 $ (70.0) $ — $ (11.9) Cash capital expenditures $ 153.3 $ 4.0 $ — $ 157.3 $ in millions Utility Other Adjustments and Eliminations DPL Consolidated Year ended December 31, 2019 Revenues from external customers $ 734.3 $ 9.4 $ — $ 743.7 Intersegment revenues 1.1 3.2 (4.3) — Total revenues $ 735.4 $ 12.6 $ (4.3) $ 743.7 Depreciation and amortization $ 70.8 $ 1.5 $ — $ 72.3 Interest expense $ 26.0 $ 56.2 $ — $ 82.2 Loss on early extinguishment of debt $ — $ 44.9 $ — $ 44.9 Income / (loss) from continuing operations before income tax $ 124.3 $ (92.8) $ — $ 31.5 Cash capital expenditures $ 155.5 $ 1.0 $ — $ 156.5 $ in millions Utility Other (a) Adjustments and Eliminations DPL Consolidated Year ended December 31, 2018 Revenues from external customers $ 737.8 $ 9.5 $ — $ 747.3 Intersegment revenues 0.9 2.9 (3.8) — Total revenues $ 738.7 $ 12.4 $ (3.8) $ 747.3 Depreciation and amortization $ 74.5 $ 1.7 $ — $ 76.2 Interest expense $ 27.3 $ 70.7 $ — $ 98.0 Loss on early extinguishment of debt $ 0.6 $ 5.9 $ — $ 6.5 Income / (loss) from continuing operations before income tax $ 104.4 $ (65.5) $ — $ 38.9 Cash capital expenditures $ 85.6 $ 10.5 $ — $ 96.1 (a) "Other" includes Cash capital expenditures related to assets of discontinued operations and held-for-sale businesses for the year ended December 31, 2018. Total Assets December 31, 2020 December 31, 2019 December 31, 2018 Utility $ 2,014.7 $ 1,883.2 $ 1,819.6 All Other (a) 21.3 52.6 63.5 DPL Consolidated $ 2,036.0 $ 1,935.8 $ 1,883.1 (a) "All Other" includes Total assets related to the assets of discontinued operations and held-for-sale businesses and Eliminations as of December 31, 2020, 2019 and 2018. "All Other" Total assets as of December 31, 2020 is primarily cash on hand from debt issuances. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disaggregation of Revenue [Table Text Block] | DPL's revenue from contracts with customers was $645.0 million, $720.6 million and $715.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. The following table presents our revenue from contracts with customers and other revenue by segment for the years ended December 31, 2020, 2019 and 2018: $ in millions Utility Other Adjustments and Eliminations Total Year ended December 31, 2020 Retail revenue Retail revenue from contracts with customers Residential revenue $ 362.3 $ — $ — $ 362.3 Commercial revenue 114.6 — — 114.6 Industrial revenue 51.2 — — 51.2 Governmental revenue 36.6 — — 36.6 Other (a) 12.7 — — 12.7 Total retail revenue from contracts with customers 577.4 — — 577.4 Other retail revenue (b) 9.0 — — 9.0 Wholesale revenue Wholesale revenue from contracts with customers 11.0 — (0.9) 10.1 RTO ancillary revenue 44.0 — — 44.0 Capacity revenue 4.2 — — 4.2 Miscellaneous revenue Miscellaneous revenue from contracts with customers (c) — 9.3 — 9.3 Miscellaneous revenue 6.5 3.6 (3.6) 6.5 Total revenues $ 652.1 $ 12.9 $ (4.5) $ 660.5 $ in millions Utility Other Adjustments and Eliminations Total Year ended December 31, 2019 Retail revenue Retail revenue from contracts with customers Residential revenue $ 403.5 $ — $ — $ 403.5 Commercial revenue 130.3 — — 130.3 Industrial revenue 55.3 — — 55.3 Governmental revenue 42.4 — — 42.4 Other (a) 13.8 — — 13.8 Total retail revenue from contracts with customers 645.3 — — 645.3 Other retail revenue (b) 22.0 — — 22.0 Wholesale revenue Wholesale revenue from contracts with customers 17.2 — (1.0) 16.2 RTO ancillary revenue 43.5 — — 43.5 Capacity revenue 6.2 — — 6.2 Miscellaneous revenue Miscellaneous revenue from contracts with customers (c) — 9.4 — 9.4 Miscellaneous revenue 1.2 3.2 (3.3) 1.1 Total revenues $ 735.4 $ 12.6 $ (4.3) $ 743.7 $ in millions Utility Other Adjustments and Eliminations Total Year ended December 31, 2018 Retail revenue Retail revenue from contracts with customers Residential revenue $ 404.0 $ — $ — $ 404.0 Commercial revenue 118.9 — — 118.9 Industrial revenue 48.9 — — 48.9 Governmental revenue 40.8 — (1.0) 39.8 Other (a) 13.2 — — 13.2 Total retail revenue from contracts with customers 625.8 — (1.0) 624.8 Other retail revenue (b) 32.1 — — 32.1 Wholesale revenue Wholesale revenue from contracts with customers 29.9 — — 29.9 RTO ancillary revenue 43.1 — — 43.1 Capacity revenue 7.8 0.1 — 7.9 Miscellaneous revenue Miscellaneous revenue from contracts with customers (c) — 9.5 — 9.5 Miscellaneous revenue — 2.8 (2.8) — Total revenues $ 738.7 $ 12.4 $ (3.8) $ 747.3 (a) "Other" primarily includes Wright-Patterson Air Force Base revenues, billing service fees from CRES providers and other miscellaneous retail revenues from contracts with customers. (b) Other retail revenue primarily includes alternative revenue programs not accounted for under FASC 606. (c) Miscellaneous revenue from contracts with customers primarily includes revenues for various services provided by Miami Valley Lighting. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summary of Balance Sheet and Profit and Loss Information for Discontinued Operations | The following table summarizes the major categories of assets and liabilities at the dates indicated: $ in millions December 31, 2019 Accounts receivable, net $ 18.0 Inventories 3.7 Taxes applicable to subsequent years 0.3 Prepayments and other current assets 0.3 Intangible assets, net of amortization 0.1 Other non-current assets 1.0 Total assets of the disposal group classified as assets of discontinued operations and held-for-sale businesses in the balance sheets $ 23.4 Accounts payable $ 5.6 Accrued taxes 0.3 Accrued and other current liabilities 3.1 Deferred income taxes (a) (6.5) Taxes payable 0.3 Asset retirement obligations 8.3 Other non-current liabilities 6.3 Total liabilities of the disposal group classified as liabilities of discontinued operations and held-for-sale businesses in the balance sheets $ 17.4 (a) Deferred income taxes represent the tax asset position of the discontinued group of components, which were netted with liabilities on DPL prior to classification as discontinued operations. The following table summarizes the revenues, operating costs, other expenses and income tax of discontinued operations for the periods indicated: Years ended December 31, $ in millions 2020 2019 2018 Revenues $ 24.2 $ 70.9 $ 187.3 Operating costs and other expenses (24.8) (19.8) (121.0) Fixed-asset impairment — (3.5) (2.8) Income / (loss) from discontinued operations (0.6) 47.6 63.5 Gain / (loss) from disposal of discontinued operations 6.1 20.1 (1.6) Income tax expense from discontinued operations 0.1 14.1 28.5 Net income from discontinued operations $ 5.4 $ 53.6 $ 33.4 |
Risks and Uncertainties (Tables
Risks and Uncertainties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Unusual Risks and Uncertainties | As the economic impact of the COVID-19 pandemic started to materialize in Ohio in the second half of March 2020 and continued for the duration of 2020, the COVID-19 pandemic primarily impacted our retail sales demand as shown by the changes in weather-normalized volumes of kWh sold compared to the weather-normalized volumes for the same periods in 2019: For the three month periods ended For the year ended Customer class March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 December 31, 2020 Commercial (3.2)% (11.0)% (2.3)% (5.0)% (5.3)% Industrial (1.5)% (19.9)% 0.9% 1.1% (5.0)% Residential 0.3% 8.5% 11.0% (0.9)% 4.2% |
Overview and Summary of Signi_5
Overview and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | Jan. 31, 2020 | Jan. 01, 2018USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)mi²segmentcustomer | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 31, 2021employee | Dec. 31, 2017USD ($) |
Significant Accounting Policies [Line Items] | ||||||||
Other Investments | $ 0.2 | $ 0.2 | ||||||
Cash and Cash Equivalents, at Carrying Value | 25.4 | 36.5 | ||||||
Restricted Cash and Cash Equivalents, Current | 0.1 | 10.5 | ||||||
Capitalized Software, estimated amortization expense for year after next | $ 2.2 | |||||||
Number of reportable segments | segment | 1 | |||||||
Service area, square miles | mi² | 6,000 | |||||||
Capitalized interest for unregulated generation property | $ 3 | $ 3.2 | $ 0.5 | |||||
Straight-line depreciation average annual composite basis (percent) | 3.80% | 4.00% | 4.30% | |||||
Depreciation and amortization | $ 73.3 | $ 72.3 | $ 76.2 | |||||
Insurance and claims costs | 3.2 | 4.5 | ||||||
Insurance costs below coverage thresholds of third-party providers | 11.1 | 3.3 | ||||||
Employees under collective bargaining agreement (percent) | 58.00% | |||||||
Capitalized Computer Software, Amortization | 3.3 | 4.4 | 6.5 | |||||
Capitalized Software, estimated amortization over remaining useful life | 10.7 | |||||||
Capitalized Software, estimated amortization expense for next twelve months | 3 | |||||||
Capitalized Software, estimated amortization expense for three years in the future | 2 | |||||||
Capitalized Software, estimated amortization expense for four years in the future | 1.8 | |||||||
Capitalized Software, estimated amortization expense for five years in the future | 1.7 | |||||||
AOCI reclassed to Retained Earnings before tax | $ 1.6 | |||||||
AOCI reclassed to Retained Earnings, net of tax | $ 1 | |||||||
Restricted Cash and Cash Equivalents | 25.5 | 47 | 111.7 | $ 24.9 | ||||
Carrying Value | 1,565.3 | 1,445.6 | ||||||
Other Assets, Noncurrent | 24.6 | 20 | ||||||
Prepaid Implementation Costs for Software as a Service | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Other Assets, Noncurrent | $ 4.1 | |||||||
THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Approximate number of retail customers | customer | 531,000 | |||||||
Service area, square miles | mi² | 6,000 | |||||||
Note to DPL Capital Trust II Maturing in 2031 - 8.125% [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Note payable to trust | $ 15.6 | 15.6 | ||||||
Subsequent Event [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Entity number of employees | employee | 631 | |||||||
Entity Number of Full Time Employees | employee | 512 | |||||||
Electric Generation, Transmission and Distribution Equipment [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Depreciation and amortization | 70 | 67.9 | 69.7 | |||||
Pension [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Service cost | 3.7 | 3.7 | 6.1 | |||||
Interest cost | $ 11.8 | $ 14.9 | 13.8 | |||||
Pension [Member] | Forecast [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Service cost | $ 5.3 | |||||||
Adjustments for New Accounting Pronouncement [Member] | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
AOCI reclassed to Retained Earnings before tax | 1.6 | |||||||
AOCI reclassed to Retained Earnings, net of tax | $ 1 |
Supplemental Financial Inform_3
Supplemental Financial Information (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other income | $ (101) | $ (123.4) | $ (103.7) | |
AOCI reclassed to Retained Earnings before tax | $ 1.6 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (3.6) | 2.2 | ||
Other comprehensive loss before reclassifications | (8.8) | (4.5) | ||
Amounts reclassified from accumulated other comprehensive income / (loss) to earnings | 0.1 | (1.3) | ||
Other comprehensive income / (loss) | (8.7) | (5.8) | 2.4 | |
Balance, end of period | (12.3) | (3.6) | 2.2 | |
AOCI reclassed to Retained Earnings, net of tax | $ 1 | |||
Income Tax Expense (Benefit) | (5.5) | (20.3) | 2.2 | |
Interest and Debt Expense | 71.3 | 82.2 | 98 | |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | (0.6) | 47.6 | 63.5 | |
Income tax expense from discontinued operations | 0.1 | 14.1 | 28.5 | |
Revenues | 660.5 | 743.7 | 747.3 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | 14.5 | 17 | ||
Other comprehensive loss before reclassifications | 0 | (1) | ||
Amounts reclassified from accumulated other comprehensive income / (loss) to earnings | (0.9) | (1.5) | ||
Other comprehensive income / (loss) | (0.9) | (2.5) | ||
Balance, end of period | 13.6 | 14.5 | 17 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (18.1) | (14.8) | ||
Other comprehensive loss before reclassifications | (8.8) | (3.5) | ||
Amounts reclassified from accumulated other comprehensive income / (loss) to earnings | 1 | 0.2 | ||
Other comprehensive income / (loss) | (7.8) | (3.3) | ||
Balance, end of period | (25.9) | (18.1) | (14.8) | |
Adjustments for New Accounting Pronouncement [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
AOCI reclassed to Retained Earnings before tax | 1.6 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
AOCI reclassed to Retained Earnings, net of tax | 1 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Net income (loss) | 0.1 | (1.3) | 3 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Income Tax Expense (Benefit) | (0.2) | (0.1) | (0.4) | |
Net income (loss) | (0.9) | (1.1) | (0.8) | |
Interest and Debt Expense | 1.1 | 1.2 | 1.2 | |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 0 | 0 | 4.4 | |
Income tax expense from discontinued operations | 0 | 0.4 | 1.2 | |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | (0.4) | 3.2 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other income | 1.3 | 0.2 | 0.8 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Income Tax Expense (Benefit) | 0.3 | 0 | 0.2 | |
Net income (loss) | $ 1 | $ 0.2 | $ 0.6 |
Supplemental Financial Inform_4
Supplemental Financial Information (Supplemental Financial Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 01, 2018 | |
Supplemental Financial Information [Line Items] | ||||
Gain (Loss) on Sale of Assets and Asset Impairment Charges, excluding Discontinued Operations | $ (0.1) | $ 0 | $ 0 | |
Unbilled revenue | 21.6 | 19.4 | ||
Customer receivables | 48.5 | 45.7 | ||
Amounts due from partners in jointly owned stations | 0.2 | 0.3 | ||
Due from PJM transmission settlement | 1.7 | 1.8 | $ 40.8 | |
Other | 0.5 | 1.1 | ||
Provision for uncollectible accounts | (2.8) | (0.4) | ||
Total accounts receivable, net | 69.7 | 67.9 | ||
Accounts Receivable, Credit Loss Expense (Reversal) | 3 | |||
Accounts Receivable, Allowance for Credit Loss, Writeoff | (2.3) | |||
Total inventories, at average cost | 8.8 | 10.4 | ||
Assets held for sale - current | 0 | 22.3 | ||
Gain (Loss) on Disposition of Business | 4.7 | 0 | $ 11.7 | |
Accounts Receivable, Allowance for Credit Loss, Recovery | 1.7 | |||
Accounts Receivable, Allowance for Credit Loss, Current | 2.8 | 0.4 | ||
Other comprehensive loss before reclassifications | (8.8) | (4.5) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Supplemental Financial Information [Line Items] | ||||
Other comprehensive loss before reclassifications | $ 0 | $ (1) |
Supplemental Financial Inform_5
Supplemental Financial Information (Reclassification out of ACOI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other income | $ (101) | $ (123.4) | $ (103.7) |
Interest expense | (71.3) | (82.2) | (98) |
Tax expense (benefit) | 5.5 | 20.3 | (2.2) |
Income / (loss) from discontinued operations before income tax | (0.6) | 47.6 | 63.5 |
Income tax expense from discontinued operations | (0.1) | (14.1) | (28.5) |
Accumulated other comprehensive income/(loss) | (12.3) | (3.6) | 2.2 |
Other comprehensive loss before reclassifications | (8.8) | (4.5) | |
Amounts reclassified from accumulated other comprehensive income / (loss) to earnings | 0.1 | (1.3) | |
Other Comprehensive Income (Loss), Net of Tax | (8.7) | (5.8) | 2.4 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Accumulated other comprehensive income/(loss) | 13.6 | 14.5 | 17 |
Other comprehensive loss before reclassifications | 0 | (1) | |
Amounts reclassified from accumulated other comprehensive income / (loss) to earnings | (0.9) | (1.5) | |
Other Comprehensive Income (Loss), Net of Tax | (0.9) | (2.5) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Accumulated other comprehensive income/(loss) | (25.9) | (18.1) | (14.8) |
Other comprehensive loss before reclassifications | (8.8) | (3.5) | |
Amounts reclassified from accumulated other comprehensive income / (loss) to earnings | 1 | 0.2 | |
Other Comprehensive Income (Loss), Net of Tax | (7.8) | (3.3) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net income (loss) | 0.1 | (1.3) | 3 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest expense | (1.1) | (1.2) | (1.2) |
Tax expense (benefit) | 0.2 | 0.1 | 0.4 |
Income / (loss) from discontinued operations before income tax | 0 | 0 | 4.4 |
Income tax expense from discontinued operations | 0 | (0.4) | (1.2) |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | (0.4) | 3.2 |
Net income (loss) | (0.9) | (1.1) | (0.8) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other income | 1.3 | 0.2 | 0.8 |
Tax expense (benefit) | (0.3) | 0 | (0.2) |
Net income (loss) | $ 1 | $ 0.2 | $ 0.6 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Millions | Nov. 30, 2020 | Oct. 01, 2018 | Oct. 20, 2017 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2019 | Aug. 01, 2018 |
Regulatory assets earning a return | $ 16.3 | ||||||
DRO revenue requirement | $ 248 | ||||||
Regulatory Assets, Noncurrent | 193.6 | $ 173.8 | |||||
Regulatory Assets, Current | 27.5 | 19.7 | |||||
Regulatory Assets | 221.1 | 193.5 | |||||
Regulatory Liability, Noncurrent | 218.3 | 243.6 | |||||
Regulatory Liability, Current | 18 | 27.9 | |||||
Regulatory Liabilities | 236.3 | 271.5 | |||||
Distribution Investment Rider | $ 120.8 | ||||||
TCJA Yearly Refund to Customers Per DRO | 4 | ||||||
DRO Vegetation Management Cost Baseline | $ 10.7 | ||||||
DRO Vegetation Management Cost Deferral Cap | 4.6 | ||||||
Distribution Modernization Rider | $ 105 | ||||||
RSC Rider | $ 79 | ||||||
Return on Equity SEET Threshold | 9.85% | ||||||
Due from PJM transmission settlement | $ 1.7 | 1.8 | $ 40.8 | ||||
PJM transmission enhancement repayment amount | $ 32.1 | ||||||
Tax rate after Tax Cuts and Jobs Act of 2017 | 21.00% | ||||||
Refund of eligible excess ADIT and any related regulatory liability as required by the PUCO | $ 65.1 | ||||||
Refund of eligible excess ADIT and any related regulatory liability as required by the PUCO, including taxes | 83.2 | ||||||
Reduction of Long-term regulatory liability related to deferred income taxes | 23.4 | ||||||
Recovery of Smart Grid Plan Phase 1 capital investments | 249 | ||||||
Aggregate cap of recoverable Smart Grid Plan investments and expenses | 267.6 | ||||||
DP&L shareholder funding under Smart Grid Plan | 30 | ||||||
Proposed annual increase in transmission rates to reflect effects on TCJA | $ 7 | ||||||
Proposed Increased Return on Equity SEET Threshold | 9.99% | ||||||
Vegetation Management and Other [Member] | |||||||
Regulatory Assets, Noncurrent | $ 15.7 | ||||||
Undercollections to be collected [Member] | |||||||
Regulatory Assets Type of Recovery | A/B | ||||||
Regulatory Assets, Current | $ 26.8 | 19.1 | |||||
Amounts being recovered through base rates [Member] | |||||||
Regulatory Assets Type of Recovery | B | ||||||
Regulatory Assets, Current | $ 0.7 | 0.6 | |||||
Pension Costs [Member] | |||||||
Regulatory Assets Type of Recovery | B | ||||||
Regulatory Current Asset, End Date for Recovery | Ongoing | ||||||
Regulatory Assets, Noncurrent | $ 94.4 | 83.9 | |||||
Unrecovered OVEC Charges [Member] | |||||||
Regulatory Assets Type of Recovery | C | ||||||
Regulatory Current Asset, End Date for Recovery | Undetermined | ||||||
Regulatory Assets, Noncurrent | $ 28.9 | 29.1 | |||||
Deferred Regulatory Compliance Costs [Member] | |||||||
Regulatory Assets Type of Recovery | B | ||||||
Regulatory Current Asset, End Date for Recovery | Undetermined | ||||||
Regulatory Assets, Noncurrent | $ 6.3 | 6.3 | |||||
Ccem Smart Grid And Advanced Metering Infrastructure Cost [Member] | |||||||
Regulatory Assets Type of Recovery | B | ||||||
Regulatory Current Asset, End Date for Recovery | Undetermined | ||||||
Regulatory Assets, Noncurrent | $ 8.5 | 8.5 | |||||
Loss on Reacquired Debt [Member] | |||||||
Regulatory Assets Type of Recovery | B | ||||||
Regulatory Current Asset, End Date for Recovery | Various | ||||||
Regulatory Assets, Noncurrent | $ 7.1 | 10 | |||||
Storm Costs [Member] | |||||||
Regulatory Assets Type of Recovery | A | ||||||
Regulatory Current Asset, End Date for Recovery | Undetermined | ||||||
Regulatory Assets, Noncurrent | $ 11.5 | 5.1 | |||||
Vegetation Management [Member] | |||||||
Regulatory Assets Type of Recovery | A/B | ||||||
Regulatory Current Asset, End Date for Recovery | Undetermined | ||||||
Regulatory Assets, Noncurrent | 12.7 | ||||||
Decoupling Deferral and Other [Member] [Domain] | |||||||
Regulatory Assets Type of Recovery | C | ||||||
Regulatory Current Asset, End Date for Recovery | Undetermined | ||||||
Regulatory Assets, Noncurrent | $ 13.8 | 13.8 | |||||
Uncollectible Receivables [Member] | |||||||
Regulatory Current Asset, End Date for Recovery | Undetermined | ||||||
Uncollectible and Other [Member] [Domain] | |||||||
Regulatory Assets Type of Recovery | C | ||||||
Regulatory Assets, Noncurrent | $ 7.4 | 4.4 | |||||
COVID-19 Deferral [Member] | |||||||
Regulatory Assets, Noncurrent | 1.2 | ||||||
Subsidiaries [Member] | |||||||
TCJA Yearly Refund to Customers Per DRO | $ 4 | ||||||
Postretirement Benefit Costs [Member] | |||||||
Regulatory Liabilities Type of Recovery | B | ||||||
Regulatory Liability, Amortization Through | Ongoing | ||||||
Regulatory Liability, Noncurrent | $ 4.1 | 4.6 | |||||
PJM transmission enhancement settlement repayment amount [Member] | |||||||
Regulatory Liabilities Type of Recovery | A | ||||||
Regulatory Liability, Noncurrent | $ 7 | 8.9 | |||||
Deferred Income Tax Charge [Member] | |||||||
Regulatory Liability, Amortization Through | Various | ||||||
Regulatory Liability, Noncurrent | $ 61.2 | 73.6 | |||||
TCJA Regulatory Liability [Member] [Domain] | |||||||
Regulatory Liabilities Type of Recovery | B | ||||||
Regulatory Liability, Amortization Through | Ongoing | ||||||
Regulatory Liability, Noncurrent | $ 7.2 | 12.9 | |||||
Removal Costs [Member] | |||||||
Regulatory Liability, Amortization Through | Not Applicable | ||||||
Regulatory Liability, Noncurrent | $ 138.8 | 143.6 | |||||
Overcollection of costs to be refunded [Member] | |||||||
Regulatory Liabilities Type of Recovery | A/B | ||||||
Regulatory Liability, Noncurrent | $ 18 | $ 27.9 | |||||
Forecast [Member] | |||||||
DRO Vegetation Management Cost Baseline | 15.7 | ||||||
Long-term [Member] | |||||||
Due from PJM transmission settlement | 7 | ||||||
Short-term [Member] | |||||||
Due from PJM transmission settlement | $ 1.7 |
Regulatory Matters (Details)_2
Regulatory Matters (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Proposed Increased Return on Equity SEET Threshold | 9.99% |
Property, Plant and Equipment_2
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Jointly Owned Utility Plant Interests [Line Items] | |||
Proceeds from Sale of Property, Plant, and Equipment | $ 5.1 | $ 0 | $ 10.6 |
Estimated costs of removal | 138.8 | 143.6 | 139.1 |
Property, Plant and Equipment [Line Items] | |||
Proceeds from Sale of Property, Plant, and Equipment | $ 5.1 | $ 0 | $ 10.6 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Changes in the Liability for Transmission and Distribution Asset Removal Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in Liability for Transmission and Distribution Asset Removal Costs [Roll Forward] | ||
Balance at January 1 | $ 143.6 | $ 139.1 |
Additions | 15.6 | 14.8 |
Settlements | (20.4) | (10.3) |
Balance at December 31 | $ 138.8 | $ 143.6 |
Property, Plant and Equipment w
Property, Plant and Equipment with Corresponding Depreciation Rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment in service | $ 1,839.3 | $ 1,701.9 | |
Total property, plant and equipment in service, Composite Rate | 3.80% | 4.00% | 4.30% |
Regulated Operation [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Transmission | $ 273 | $ 235.8 | |
Distribution | 1,453.7 | 1,364.2 | |
General | 17.7 | 16.5 | |
Non-depreciable | 65.1 | 61.6 | |
Total property, plant and equipment in service | $ 1,809.5 | $ 1,678.1 | |
Transmission, Composite Rate | 3.20% | 3.90% | |
Distribution, Composite Rate | 4.00% | 4.10% | |
General, Composite Rate | 7.60% | 9.00% | |
Unregulated Operation [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Non-depreciable | $ 5 | $ 4.8 | |
Total property, plant and equipment in service | 29.8 | 23.8 | |
Other | $ 24.8 | $ 19 | |
Other, Composite Rate | 4.50% | 7.60% |
Property, Plant and Equipment_4
Property, Plant and Equipment (Changes in the Liability for Generation of AROs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Balance at January 1 | $ 4.7 | $ 4.7 |
Settlements | (4.7) | 0 |
Balance at December 31 | $ 0 | $ 4.7 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value and Cost of Non-Derivative Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Carrying Value [Member] | ||
Total Assets | $ 6.4 | $ 6.8 |
Carrying Value [Member] | Money Market Funds [Member] | ||
Total Master Trust Assets, Cost | 0.3 | 0.3 |
Carrying Value [Member] | Equity Securities [Member] | ||
Total Master Trust Assets, Cost | 2.1 | 2.3 |
Carrying Value [Member] | Debt Securities [Member] | ||
Total Master Trust Assets, Cost | 4 | 4 |
Carrying Value [Member] | Hedge Funds [Member] | ||
Total Master Trust Assets, Cost | 0 | 0.1 |
Carrying Value [Member] | Tangible Assets [Member] | ||
Total Master Trust Assets, Cost | 0 | 0.1 |
Carrying Value [Member] | Debt [Member] | ||
Long-term Debt | 1,393.6 | 1,363.1 |
Fair Value [Member] | ||
Total Master Trust Assets, Fair Value | 8.9 | 8.8 |
Total Assets | 8.9 | 8.8 |
Fair Value [Member] | Money Market Funds [Member] | ||
Total Master Trust Assets, Fair Value | 0.3 | 0.3 |
Fair Value [Member] | Equity Securities [Member] | ||
Total Master Trust Assets, Fair Value | 4.5 | 4.2 |
Fair Value [Member] | Debt Securities [Member] | ||
Total Master Trust Assets, Fair Value | 4.1 | 4.1 |
Fair Value [Member] | Hedge Funds [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0.1 |
Fair Value [Member] | Tangible Assets [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0.1 |
Fair Value [Member] | Debt [Member] | ||
Debt, Fair Value | $ 1,571.6 | $ 1,404 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Millions | Jan. 01, 2018USD ($) |
AOCI reclassed to Retained Earnings before tax | $ 1.6 |
AOCI reclassed to Retained Earnings, net of tax | $ 1 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 1,565.3 | $ 1,445.6 |
Fair Value Measurements (Fair_3
Fair Value Measurements (Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Inputs, Level 1 [Member] | ||
Total Master Trust Assets, Fair Value | $ 0.3 | $ 0.3 |
Total Derivative Assets | 0 | 0 |
Total Assets | 0.3 | 0.3 |
Total Liabilities | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Interest Rate Contract [Member] | ||
Total Derivative Assets | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Total Master Trust Assets, Fair Value | 8.6 | 8.5 |
Total Derivative Assets | 0 | 0.1 |
Total Assets | 8.6 | 8.6 |
Total Liabilities | 1,554.2 | 1,386.5 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Contract [Member] | ||
Total Derivative Assets | 0 | 0.1 |
Fair Value, Inputs, Level 3 [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0 |
Total Derivative Assets | 0 | 0 |
Total Assets | 0 | 0 |
Total Liabilities | 17.4 | 17.5 |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Contract [Member] | ||
Total Derivative Assets | 0 | 0 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Total Master Trust Assets, Fair Value | 4.5 | 4.2 |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0 |
Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0 |
Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Total Master Trust Assets, Fair Value | 4.1 | 4.1 |
Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Total Master Trust Assets, Fair Value | 0.3 | 0.3 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0 |
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0 |
Hedge Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0 |
Hedge Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0.1 |
Hedge Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0 |
Tangible Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0 |
Tangible Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0.1 |
Tangible Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0 |
Debt [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Debt Instrument, Fair Value Disclosure | 0 | 0 |
Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Debt Instrument, Fair Value Disclosure | 1,554.2 | 1,386.5 |
Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Debt Instrument, Fair Value Disclosure | 17.4 | 17.5 |
Fair Value [Member] | ||
Total Master Trust Assets, Fair Value | 8.9 | 8.8 |
Total Derivative Assets | 0 | 0.1 |
Total Assets | 8.9 | 8.9 |
Total Liabilities | 1,571.6 | 1,404 |
Fair Value [Member] | Interest Rate Contract [Member] | ||
Total Derivative Assets | 0 | 0.1 |
Fair Value [Member] | Equity Securities [Member] | ||
Total Master Trust Assets, Fair Value | 4.5 | 4.2 |
Fair Value [Member] | Debt Securities [Member] | ||
Total Master Trust Assets, Fair Value | 4.1 | 4.1 |
Fair Value [Member] | Money Market Funds [Member] | ||
Total Master Trust Assets, Fair Value | 0.3 | 0.3 |
Fair Value [Member] | Hedge Funds [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0.1 |
Fair Value [Member] | Tangible Assets [Member] | ||
Total Master Trust Assets, Fair Value | 0 | 0.1 |
Fair Value [Member] | Debt [Member] | ||
Debt Instrument, Fair Value Disclosure | $ 1,571.6 | $ 1,404 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Gains or Losses Recognized in AOCI for the Cash Flow Hedges) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Forward Contract Power [Member] | |||
Beginning accumulated derivative gain / (loss) in AOCI | $ 0 | $ 0.4 | $ (2.8) |
Net gains / (losses) associated with current period hedging transactions | 0 | 0 | |
Ending accumulated derivative gain / (loss) in AOCI | 0 | 0.4 | |
Interest Rate Contract [Member] | |||
Beginning accumulated derivative gain / (loss) in AOCI | 14.5 | 16.6 | 17.5 |
Net gains / (losses) associated with current period hedging transactions | 0 | (1) | (0.1) |
Ending accumulated derivative gain / (loss) in AOCI | 13.6 | 14.5 | 16.6 |
Portion expected to be reclassified to earnings in the next twelve months | (0.8) | ||
Interest Expense [Member] | Forward Contract Power [Member] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0 | 0 | |
Interest Expense [Member] | Interest Rate Contract [Member] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (0.9) | (1.1) | (0.8) |
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Forward Contract Power [Member] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (0.4) | 3.2 | |
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Interest Rate Contract [Member] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 0 | $ 0 | $ 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Narrative) (Details) | Dec. 31, 2019USD ($)Number_of_interest_rate_swaps |
THE DAYTON POWER AND LIGHT COMPANY [Member] | |
Number of Interest Rate Swaps | Number_of_interest_rate_swaps | 2 |
Tax-exempt First Mortgage Bonds - rates from: 2.49% - 2.93% (a) and 1.29% - 1.42% (b) | |
Long-term Debt, Gross | $ 140,000,000 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |
Derivative, Notional Amount, Purchase (Sales), Net | $ 140,000,000 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Fair Value and Balance Sheet Location (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Other Current Assets [Member] | ||
Derivative Asset, Fair Value | $ 0 | $ 0.1 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities (Outstanding Derivative Instruments) (Details) | Dec. 31, 2019USD ($) |
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |
Derivative, Notional Amount, Purchase (Sales), Net | $ 140,000,000 |
Debt (Long-term Debt) (Details)
Debt (Long-term Debt) (Details) $ in Millions | Dec. 31, 2022USD ($) | Sep. 30, 2022USD ($) | Jun. 01, 2020 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | May 07, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Long-Term Debt, Maturity, Year One | $ 0.2 | |||||
Unamortized Deferred Financing Costs | (10.2) | $ (5.9) | ||||
Debt Instrument, Unamortized Discount (Premium), Net | (0.9) | (1) | ||||
Total long-term debt at subsidiary | 574.1 | 574.4 | ||||
Less: current portion | (0.2) | (139.8) | ||||
Long-term debt, net of current portion | 1,393.4 | 1,223.3 | ||||
Long-Term Debt, Maturity, Year Two | 0.2 | |||||
Long-Term Debt, Maturity, Year Three | 0.2 | |||||
Long-Term Debt, Maturity, Year Four | 0.2 | |||||
Long-Term Debt, Maturity, Year Five | 415.2 | |||||
Long-Term Debt, Maturity, after Year Five | 997 | |||||
Total Maturities Before Unamortized Adjustments | 1,413 | |||||
Unamortized adjustments to market value from purchase accounting | 3.5 | |||||
Unamortized Deferred Financing Costs, Consolidated | (15.9) | |||||
Long Term Debt Maturities Repayments Of Principal, Total | 1,393.6 | |||||
Long-term Line of Credit | $ 80 | 104 | ||||
Debt Covenant, Interest Coverage Ratio, Minimum | 2.25 | 1.70 | ||||
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum | $ 125 | |||||
Line of Credit Facility, quarterly borrowing limit reduction | 5 | |||||
Forecast [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Covenant, Interest Coverage Ratio, Minimum | 2 | 1.75 | ||||
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum | $ 150 | $ 130 | ||||
THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized Deferred Financing Costs (Subsidiary) | (5.7) | (5.4) | ||||
Debt Instrument, Unamortized Discount (Premium), Net | (2.6) | (2.7) | ||||
Long-term Line of Credit | 20 | 40 | ||||
3.95% Senior Notes due 2049 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 425 | |||||
Debt instrument interest percentage | 3.95% | |||||
Ten Year Senior Unsecured Bonds At 435 Maturing At April 15 2029 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest percentage | 4.35% | |||||
Tax-exempt First Mortgage Bonds - rates from: 2.49% - 2.93% (a) and 1.29% - 1.42% (b) | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | 140 | |||||
Two Point Four Nine to Two Point Nine Three and One Point Two Nine to One Point Four Two Bonds Maturing In Two Thousand Twenty [Member] [Domain] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 0 | 140 | ||||
U.S. Government note maturing in 2061 - 4.20% [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 17.4 | 17.5 | ||||
U.S. Government note maturing in 2061 - 4.20% [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest percentage | 4.20% | |||||
Five Year Senior Unsecured Notes At6.75 Maturing October152019 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest percentage | 7.25% | |||||
Senior Unsecured Bonds at 7.25% maturing in 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 380 | $ 780 | ||||
Debt instrument interest percentage | 7.25% | 7.25% | ||||
4.35% Senior Notes due 2029 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 400 | $ 400 | ||||
Note to DPL Capital Trust II Maturing in 2031 - 8.125% [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 15.6 | 15.6 | ||||
Debt instrument interest percentage | 8.125% | |||||
Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt and Lease Obligation, Including Current Maturities | $ 1,393.6 | $ 1,363.1 |
Debt (Long-term Debt Maturities
Debt (Long-term Debt Maturities) (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 03, 2020USD ($) | May 07, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | $ 80 | $ 104 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 110 | 125 | |||
Proceeds from Issuance of Long-term Debt | 555 | 821.7 | $ 0 | ||
Unamortized Deferred Financing Costs, Consolidated | (15.9) | ||||
Current portion - long-term debt | 0.2 | ||||
Long-Term Debt, Maturity, Year Two | 0.2 | ||||
2018 | 0.2 | ||||
2019 | 0.2 | ||||
2020 | 415.2 | ||||
Thereafter | 997 | ||||
Total Maturities | 1,413 | ||||
Total long-term debt | 1,393.6 | ||||
Unamortized Deferred Financing Costs | (10.2) | (5.9) | |||
Current portion - long-term debt | 0.2 | 139.8 | |||
Long-term Debt, Excluding Current Maturities | 1,393.4 | 1,223.3 | |||
Letter Of Credit Sublimit | 75 | ||||
Line of Credit Facility, Additional Borrowing Capacity | 50 | ||||
THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 20 | 40 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 175 | ||||
Unamortized Deferred Financing Costs (Subsidiary) | (5.7) | $ (5.4) | |||
Letter Of Credit Sublimit | 75 | ||||
Line of Credit Facility, Additional Borrowing Capacity | 100 | ||||
3.95% Senior Notes due 2049 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Long-term Debt | $ 425 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | ||||
Extinguishment of Debt, Amount | $ 435 | ||||
Long-term Debt, Gross | 425 | ||||
Ten Year Senior Unsecured Bonds At 435 Maturing At April 15 2029 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Long-term Debt | $ 400 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | ||||
Senior Unsecured Bonds at 7.25% maturing in 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | |||
Extinguishment of Debt, Amount | $ 400 | ||||
Make Whole Premium | 41.4 | ||||
Long-term Debt, Gross | $ 380 | $ 780 | |||
Senior Unsecured Notes At 6.80 Maturing On October 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||||
Extinguishment of Debt, Amount | $ 99 | ||||
Make Whole Premium | 1.5 | ||||
One Point One Three To One Point One Seven Bonds Maturing In August Two Thousand Twenty [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | 140 | ||||
Four Point Two Zero Percentage Of U S Government Note Maturing In February Two Thousand Sixty One [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 17.4 | 17.5 | |||
Four Point Two Zero Percentage Of U S Government Note Maturing In February Two Thousand Sixty One [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | ||||
Variable Rate Notes Backed by Term Loan and First Mortgage Bonds [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 140 | ||||
Revolving Credit Facility [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Covenant, Total Debt to Total Capitalization Ratio, Maximum | 0.67 | ||||
Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt and Lease Obligation, Including Current Maturities | $ 1,393.6 | $ 1,363.1 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) $ in Millions | Dec. 31, 2022USD ($) | Sep. 30, 2022USD ($) | Jun. 01, 2020USD ($) | Dec. 31, 2020USD ($)debt_covenantfiscal_quarter | Dec. 31, 2019USD ($)Number_of_interest_rate_swaps | Dec. 31, 2018USD ($) | Aug. 03, 2020USD ($) | May 07, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||
Current portion - long-term debt | $ 0.2 | |||||||
Unamortized adjustments to market value from purchase accounting | 3.5 | |||||||
Letter Of Credit Sublimit | $ 75 | |||||||
Line of Credit Facility, Additional Borrowing Capacity | 50 | |||||||
Issuance of long-term debt | 555 | 821.7 | $ 0 | |||||
Unamortized Deferred Financing Costs | (10.2) | (5.9) | ||||||
Current portion - long-term debt | $ 0.2 | 139.8 | ||||||
Debt Covenant, Leverage Ratio, Maximum | 0.67 | |||||||
Debt Covenant, Interest Coverage Ratio, Minimum | 2.25 | 1.70 | ||||||
Debt Instrument, Unamortized Discount (Premium), Net | $ 0.9 | 1 | ||||||
Total Long-term Debt At Subsidiary With Purchase Accounting Adjustments | 574.1 | 574.4 | ||||||
Long-term Debt, Excluding Current Maturities | 1,393.4 | 1,223.3 | ||||||
Long-Term Debt, Maturity, Year Two | 0.2 | |||||||
Long-term Line of Credit | 80 | 104 | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 125 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 110 | 125 | ||||||
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum | $ 125 | |||||||
Debt Instrument, Debt Covenant, Total Debt to EBITDA Ratio | 7 | |||||||
Phase 2 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum | $ 150 | |||||||
Phase 1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum | $ 130 | |||||||
Forecast [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Covenant, Interest Coverage Ratio, Minimum | 2 | 1.75 | ||||||
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum | $ 150 | $ 130 | ||||||
THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Letter Of Credit Sublimit | $ 75 | |||||||
Line of Credit Facility, Additional Borrowing Capacity | 100 | |||||||
Unamortized Deferred Financing Costs (Subsidiary) | (5.7) | (5.4) | ||||||
Debt Instrument, Unamortized Discount (Premium), Net | 2.6 | 2.7 | ||||||
Long-term Line of Credit | 20 | $ 40 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 175 | |||||||
Number of Interest Rate Swaps | Number_of_interest_rate_swaps | 2 | |||||||
3.95% Senior Notes due 2049 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Issuance of long-term debt | 425 | |||||||
Long-term Debt, Gross | 425 | |||||||
Extinguishment of Debt, Amount | $ 435 | |||||||
Debt instrument interest percentage | 3.95% | |||||||
Senior Unsecured Notes At 6.80 Maturing On October 2019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Make Whole Premium | $ 1.5 | |||||||
Extinguishment of Debt, Amount | $ 99 | |||||||
Debt instrument interest percentage | 6.75% | |||||||
U.S. Government note maturing in 2061 - 4.20% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 17.4 | $ 17.5 | ||||||
U.S. Government note maturing in 2061 - 4.20% [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest percentage | 4.20% | |||||||
Five Year Senior Unsecured Notes At6.75 Maturing October152019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest percentage | 7.25% | |||||||
DPL Revolving Credit Agreement and Term Loan Maturing July 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of financial covenants | debt_covenant | 2 | |||||||
Number of prior quarters included in debt to EBITDA ratio | fiscal_quarter | 4 | |||||||
Debt Covenant, Interest Coverage Ratio, Minimum | 2.50 | |||||||
Senior Unsecured Bonds at 7.25% maturing in 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | 380 | $ 780 | ||||||
Make Whole Premium | 41.4 | |||||||
Extinguishment of Debt, Amount | $ 400 | |||||||
Debt instrument interest percentage | 7.25% | 7.25% | ||||||
Note to DPL Capital Trust II Maturing in 2031 - 8.125% [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 15.6 | $ 15.6 | ||||||
Debt instrument interest percentage | 8.125% | |||||||
Variable Rate Notes Backed by Term Loan and First Mortgage Bonds [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 140 | |||||||
One Point One Three To One Point One Seven Bonds Maturing In August Two Thousand Twenty [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | 140 | |||||||
3.20% First Mortgage Bonds due 2040 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Issuance of long-term debt | $ 140 | |||||||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum (Deprecated 2016-01-31) | 3.20% | |||||||
Revolving Credit Facility [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Covenant, Total Debt to Total Capitalization Ratio, Maximum | 0.67 | |||||||
4.125% Senior Notes due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Issuance of long-term debt | $ 415 | |||||||
Debt instrument interest percentage | 4.125% | |||||||
3.2% Senior Notes due 2049 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 140 | |||||||
Debt instrument interest percentage | 3.20% | |||||||
Ten Year Senior Unsecured Notes At725 Maturing At October152025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest percentage | 4.125% | |||||||
Five Year Senior Unsecured Notes At 4125 Maturing on July12025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 415 | 0 | ||||||
Make Whole Premium | 30.8 | |||||||
Extinguishment of Debt, Amount | 380 | |||||||
Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt and Lease Obligation, Including Current Maturities | $ 1,393.6 | $ 1,363.1 | ||||||
Minimum [Member] | One Point One Six To Two Point Four Seven Bonds Maturing In August Two Thousand Twenty | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest percentage | 1.16% | |||||||
Minimum [Member] | Two Point Four To Three Point Zero Seven Bonds Maturing In August Two Thousand Twenty | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest percentage | 2.40% | |||||||
Maximum [Member] | One Point One Six To Two Point Four Seven Bonds Maturing In August Two Thousand Twenty | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest percentage | 2.47% | |||||||
Maximum [Member] | Two Point Four To Three Point Zero Seven Bonds Maturing In August Two Thousand Twenty | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest percentage | 3.07% |
Regulatory Matters (Details)__3
Regulatory Matters (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
3.2% Senior Notes due 2049 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | |
Long-term Debt, Gross | $ 140 | |
Tax-exempt First Mortgage Bonds - rates from: 2.49% - 2.93% (a) and 1.29% - 1.42% (b) | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 140 | |
One Point One Six To Two Point Four Seven Bonds Maturing In August Two Thousand Twenty | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.47% | |
One Point One Six To Two Point Four Seven Bonds Maturing In August Two Thousand Twenty | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.16% | |
Two Point Four To Three Point Zero Seven Bonds Maturing In August Two Thousand Twenty | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.07% | |
Two Point Four To Three Point Zero Seven Bonds Maturing In August Two Thousand Twenty | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.40% | |
THE DAYTON POWER AND LIGHT COMPANY [Member] | 3.95% Senior Notes due 2049 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.95% | |
Long-term Debt, Gross | $ 425 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | |
Income Taxes [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards | $ 39 | $ 29 | ||
Deferred tax assets related to state and local tax net operating loss carryforwards, net of related valuation allowances | $ 39 | 29 | ||
Tax Cuts and Jobs Act of 2017, change in income tax expense (benefit) | $ 15.5 | |||
Tax rate before change due to Tax Cuts and Jobs Act of 2017 | 35.00% | |||
Tax rate after Tax Cuts and Jobs Act of 2017 | 21.00% | |||
Non-cash capital contribution | $ 40 | |||
Change in deferred tax regulatory asset/liability due to TCJA | 17 | |||
Unrecognized Tax Benefits Due To Uncertainity In Timing Of Deductibility | $ 1.4 | |||
Unrecognized Tax Benefits | 1.4 | 3.5 | ||
Decrease in Unrecognized Tax Benefits Due To Uncertainty In Timing of Deductibility | 2.1 | |||
Forecast [Member] | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits anticipated to result in a decrease of unrecognized tax benefits with 12 months of the balance sheet date, minimum | $ 0 | |||
Other Paid-In Capital [Member] | ||||
Income Taxes [Line Items] | ||||
Non-cash capital contribution | $ 0 | $ 0 | $ 40 |
Income Taxes (Effective and Sta
Income Taxes (Effective and Statutory Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Entity Information [Line Items] | |||
Non-cash capital contribution | $ 40 | ||
Statutory Federal tax rate | 21.00% | 21.00% | 21.00% |
State taxes, net of Federal tax benefit | (13.10%) | 1.40% | 0.10% |
Depreciation of flow-through differences | (23.60%) | (0.10%) | (0.10%) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Depreciation and Amortization, Percent | 94.80% | (28.20%) | (4.60%) |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | 4.10% | (0.30%) | (0.30%) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 0.00% | 0.00% | 15.50% |
Effective Income Tax Rate Reconciliation, Permanent Difference, Percent | 0.00% | 0.00% | 0.10% |
Other, net | 1.20% | (0.10%) | (1.20%) |
Effective tax rate | 84.40% | (6.30%) | 30.50% |
Income Taxes (Tax or Benefit cr
Income Taxes (Tax or Benefit credited to AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Tax expense/ (benefit) | $ (2.6) | $ (0.5) | $ 0.2 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Effective Income Tax Rate Reconciliation, deferred tax adjustment percent | 0.00% | 0.00% | 15.50% |
Depreciation / property basis | $ (160.5) | $ (118.3) | |
Income taxes recoverable | 14.4 | 17.1 | |
Deferred Tax Liabilities, Regulatory Assets and Liabilities | (21) | (24.8) | |
Investment tax credit | 0.6 | 0.6 | |
Compensation and employee benefits | (1.7) | 2.2 | |
Intangibles | (0.4) | (0.4) | |
Long-term debt | (1.3) | (2.1) | |
Other | (7.3) | (8) | |
Net non-current liabilities | $ (177.2) | (133.7) | |
Deferred Tax Liabilities, net Non-current Including Discontinued Operations | $ 133.7 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | ||
Unrecognized Tax Benefits Due To Uncertainity In Timing Of Deductibility | $ 1.4 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | 3.5 | |
Balance at end of year | 1.4 | |
Decrease in Unrecognized Tax Benefits Due To Uncertainty In Timing of Deductibility | $ 2.1 | |
Forecast [Member] | ||
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits anticipated to result in a decrease of unrecognized tax benefits with 12 months of the balance sheet date, minimum | $ 0 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
Tax Cuts and Jobs Act of 2017, change in income tax expense (benefit) | $ 15.5 | ||
Change in deferred tax regulatory asset/liability due to TCJA | 17 | ||
Federal - Current | $ (45.1) | $ (22) | 40 |
State and Local - Current | (0.1) | 0.6 | 0.4 |
Total Current | (45.2) | (21.4) | 40.4 |
Federal - Deferred | 38.7 | 14.1 | (9.6) |
State and Local - Deferred | 1.1 | 1.1 | (0.1) |
Total Deferred | 39.8 | 15.2 | (9.7) |
Income Tax Expense (Benefit), Continuing Operations, Discontinued Operations | $ (5.4) | $ (6.2) | $ 30.7 |
Tax rate before change due to Tax Cuts and Jobs Act of 2017 | 35.00% | ||
Tax rate after Tax Cuts and Jobs Act of 2017 | 21.00% | ||
Continuing Operations [Member] | |||
Income Taxes [Line Items] | |||
Tax Cuts and Jobs Act of 2017, change in income tax expense (benefit) | $ (1.2) |
Benefit Plans (Weighted Average
Benefit Plans (Weighted Average Assumptions Used to Determine Benefit Obligations) (Details) - Pension [Member] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for obligations | 2.44% | 3.33% | 4.35% |
Rate of compensation increases | 3.21% | 3.94% | 3.94% |
Benefit Plans (Pension and Post
Benefit Plans (Pension and Postretirement Benefit Plans' Obligations and Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Noncurrent liabilities | $ (93.9) | $ (79.9) | |
Postretirement [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 9 | 9.6 | |
Pension [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1 | 421.5 | 386.5 | |
Service cost | 3.7 | 3.7 | $ 6.1 |
Interest cost | 11.8 | 14.9 | 13.8 |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 52.7 | 42.1 | |
Benefit obligation at December 31 | 449.5 | 421.5 | 386.5 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1 | 352 | 312.9 | |
Actual return / (loss) on plan assets | 45.6 | 57 | |
Contributions to plan assets | 7.7 | 7.8 | |
Fair value of plan assets at December 31 | 365.1 | 352 | $ 312.9 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (84.4) | (69.5) | |
Current liabilities | (0.2) | (0.2) | |
Noncurrent liabilities | (84.2) | (69.3) | |
Net asset / (liability) at December 31 | (84.4) | (69.5) | |
Prior service cost | 6.9 | 7.9 | |
Net actuarial loss | 124 | 104.3 | |
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | 130.9 | 112.2 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 40.2 | 25.7 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 40.2 | 25.7 | |
Regulatory Asset [Member] | Pension [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | 92.7 | 83.7 | |
Accumulated Other Comprehensive Income/(Loss) [Member] | Pension [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | $ 38.2 | $ 28.5 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Amount Billed to Service Company | $ 1,400,000 | $ 1,400,000 | $ 1,800,000 | |
Defined contribution plan, maximum annual contributions per employee (percent) | 85.00% | |||
Employer contributions to defined contribution plan | $ 3,200,000 | 3,100,000 | 3,700,000 | |
Accumulated benefit obligation for our defined benefit pension plans | $ 436,400,000 | 414,100,000 | ||
Defined Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan employee vested percentage | 100.00% | |||
Defined benefit plan, percent forfeited if terminated, other than by death or disability, prior to full vesting (percent) | 100.00% | |||
Cash Balance Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan employee vested percentage | 100.00% | |||
Defined benefit plan, percent forfeited if terminated, other than by death or disability, prior to full vesting (percent) | 100.00% | |||
Pension [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | $ 52,700,000 | 42,100,000 | ||
Payment for Pension Benefits | $ 7,500,000 | $ 7,500,000 | $ 7,500,000 | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.60% | 6.25% | 6.25% | |
Discount rate for obligations | 2.44% | 3.33% | 4.35% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.33% | 4.35% | 3.66% | |
Defined Benefit Plan, Plan Assets, Amount | $ 365,100,000 | $ 352,000,000 | $ 312,900,000 | |
Service cost | 3,700,000 | 3,700,000 | 6,100,000 | |
Interest cost | 11,800,000 | 14,900,000 | $ 13,800,000 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (84,400,000) | (69,500,000) | ||
Defined benefit plan, amortization period for underfunding excess | 7 years | |||
Postretirement [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 9,000,000 | $ 9,600,000 | ||
SERP [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Target Allocation Percentage | 101.00% | |||
Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 41.00% | |||
Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 4.55% | |||
Increase in pension cost due to change in return on assets | $ 3,300,000 | |||
Decrease in pension cost due to change in return on assets | (3,300,000) | |||
Decrease in pension cost due to change in discount rate | (400,000) | |||
Increase in pension cost due to change in discount rate | 500,000 | |||
Forecast [Member] | Pension [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Payment for Pension Benefits | 9,800,000 | |||
Service cost | 5,300,000 | |||
Defined Benefit Plan, Plan Assets, Administration Expense | 2,000,000 | |||
Forecast [Member] | SERP [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated contribution to the defined benefit plans next year | $ 200,000 | |||
Increase in Expected Rate of Return [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Change in Expected rate of return on plan assets | 1.00% | |||
Decrease in Expected Rate of Return [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Change in Expected rate of return on plan assets | 1.00% | |||
Expected Increase in Discount Rate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Change in discount rate for plan assets | 25.00% | |||
Expected Decrease in Discount Rate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Change in discount rate for plan assets | 25.00% | |||
Non-union Participant [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, period after which participant is fully vested in employer contributions | 2 years | |||
Non-union Participant [Member] | First 1% of Eligible Compensation [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution (percent) | 100.00% | |||
Defined contribution plan, employer matching contribution, percent of employees' gross pay (percent) | 1.00% | |||
Non-union Participant [Member] | Next 5% of Eligible Compensation [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution (percent) | 50.00% | |||
Defined contribution plan, employer matching contribution, percent of employees' gross pay (percent) | 5.00% | |||
Union Participant [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution, percent of employees' gross pay (percent) | 150.00% | |||
Defined contribution plan, period after which participant is fully vested in employer contributions | 3 years | |||
Defined contribution plan, employer matching contribution cap | $ 2,600 | |||
Minimum [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 40.00% | |||
Minimum [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50.00% | |||
Maximum [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 50.00% | |||
Maximum [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 60.00% |
Benefit Plans (Net Periodic Ben
Benefit Plans (Net Periodic Benefit Cost (Income)) (Details) - Pension [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Service cost | $ 3.7 | $ 3.7 | $ 6.1 |
Interest cost | 11.8 | 14.9 | 13.8 |
Expected return on assets | (18.6) | (20.1) | (21.2) |
Actuarial gain / (loss) | 1 | 4.2 | 6.4 |
Prior service cost | 6.1 | 1.3 | 0.9 |
Net Periodic benefit cost / (income) before adjustments | $ 4 | $ 4 | $ 6 |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.33% | 4.35% | 3.66% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.60% | 6.25% | 6.25% |
Benefit Plans (Weighted Avera_2
Benefit Plans (Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Income)) (Details) - Pension [Member] | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.33% | 4.35% | 3.66% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 5.60% | 6.25% | 6.25% |
Benefit Plans (Estimated Future
Benefit Plans (Estimated Future Benefit Payments and Medicare Part D Reimbursements) (Details) - Pension [Member] $ in Millions | Dec. 31, 2020USD ($) |
2016 | $ 26.4 |
2017 | 26 |
2018 | 25.7 |
2019 | 25.3 |
2020 | 24.7 |
2021 - 2025 | $ 118.1 |
Benefit Plans (Fair Value Measu
Benefit Plans (Fair Value Measurements for Pension Plan Assets) (Details) - Pension [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total Pension Plan Assets | $ 365.1 | $ 352 | $ 312.9 |
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Pension Plan Assets | 1.9 | 1.9 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Pension Plan Assets | 363.2 | 350.1 | |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Pension Plan Assets | 0 | 0 | |
U.S. Equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 153.8 | 142.9 | |
U.S. Equities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 0 | 0 | |
U.S. Equities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 153.8 | 142.9 | |
U.S. Equities [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 0 | 0 | |
Mutual Fund - Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 144.6 | 115.6 | |
Mutual Fund - Debt | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 0 | 0 | |
Mutual Fund - Debt | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 144.6 | 115.6 | |
Mutual Fund - Debt | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 0 | 0 | |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 1.9 | 1.9 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 1.9 | 1.9 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 0 | 0 | |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 0 | 0 | |
US Government Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 64.8 | 89.1 | |
US Government Debt Securities | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 0 | 0 | |
US Government Debt Securities | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 64.8 | 89.1 | |
US Government Debt Securities | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | $ 0 | 0 | |
Core Property Collective Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 2.5 | ||
Core Property Collective Fund [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 0 | ||
Core Property Collective Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 2.5 | ||
Core Property Collective Fund [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | $ 0 |
Benefit Plans (Other Changes in
Benefit Plans (Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets And Regulatory Liabilities) (Details) - Pension [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net actuarial (gain) / loss | $ 25.8 | $ 5.3 | $ 3.4 |
Defined Benefit Plan, Accumulated Other Comprehensive Income, Plan Curtailments | 0 | 0 | 0 |
Reversal of amortization item, Net actuarial (gain) / loss | (1) | (4.2) | (6.4) |
Reversal of amortization item, Prior service cost / (credit) | (6.1) | (1.3) | (0.9) |
Total recognized in Accumulated other comprehensive income, Regulatory assets and Regulatory liabilities | 18.7 | (0.2) | (3.9) |
Total recognized in net periodic benefit cost and Accumulated other comprehensive income, Regulatory assets and Regulatory liabilities | $ 22.7 | $ 3.8 | $ 2.1 |
Benefit Plans (Defined Benefits
Benefit Plans (Defined Benefits Plan Assets, Target Allocations) (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Equity Securities [Member] | ||
Target Allocation | 41.00% | |
Percentage of plan assets | 42.00% | 40.00% |
Debt Securities [Member] | ||
Target Allocation | 59.00% | |
Percentage of plan assets | 57.00% | 58.00% |
Cash and Cash Equivalents [Member] | ||
Target Allocation | 0.00% | |
Percentage of plan assets | 1.00% | 1.00% |
Real Estate [Member] | ||
Target Allocation | 0.00% | |
Percentage of plan assets | 0.00% | 1.00% |
Equity (Narrative) (Details)
Equity (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | |
Class of Stock [Line Items] | |||
Maximum leverage ratio to allow distribution to shareholder | 0.67 | ||
Minimum coverage ratio to allow distribution to shareholder | 2.50 | ||
Retained earnings / (deficit) | $ (2,740) | $ (2,739) | |
Common stock, shares authorized | shares | 1,500 | 1,500 | |
Common stock, shares outstanding | shares | 1 | 1 | |
Accounts Payable, Related Parties, Current | $ 14.8 | $ 11 | |
Non-cash capital contribution | $ 40 | ||
Proceeds from Contributions from Parent | (98) | 0 | 0 |
Cash Contribution from Parent Company | 150 | ||
Payment against tax receivable balance from Parent | $ 52 | ||
THE DAYTON POWER AND LIGHT COMPANY [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | shares | 50,000,000 | ||
Common stock, shares outstanding | shares | 41,172,173 | ||
Proceeds from Contributions from Parent | $ (150) | ||
Other Paid-In Capital [Member] | |||
Class of Stock [Line Items] | |||
Non-cash capital contribution | 0 | $ 0 | $ 40 |
Proceeds from Contributions from Parent | $ (98) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Schedule of Related Party Transactions | The following table provides a summary of our related party transactions: Years ended December 31, $ in millions 2020 2019 2018 Transactions with the Service Company Charges for services provided $ 38.8 $ 33.8 $ 41.0 Charges to the Service Company $ 4.2 $ 3.6 $ 4.9 Transactions with other AES affiliates: Payments for health, welfare and benefit plans $ 10.7 $ 11.2 $ 7.9 Consulting and other services $ 0.8 $ 0.7 $ 2.0 Balances with related parties: At December 31, 2020 At December 31, 2019 Net payable to the Service Company $ (14.8) $ (11.0) Net receivable from / (payable to) AES and other AES affiliates (a) $ (1.7) $ 2.0 (a) The December 31, 2019 net receivable amount includes a $5.1 million receivable balance with AES related to the sale of software previously recorded on AES Ohio Generation during the year ended December 31. 2019. There was no gain or loss recorded on the transaction. These $5.1 million of proceeds on the sale were received in 2020. | ||
Other Investments | $ 0.2 | $ 0.2 | |
Deferred Compensation Arrangement with Individual, Compensation Expense | 0.1 | 0 | $ 0.4 |
Sales to related party | 4.2 | 3.6 | 4.9 |
Charges for Services Provided | 38.8 | 33.8 | 41 |
Net payable to the Service Company | (14.8) | (11) | |
Due to Affiliate | (1.7) | 2 | |
Proceeds from Sale of Property, Plant, and Equipment | 5.1 | 0 | 10.6 |
Other comprehensive loss before reclassifications | (8.8) | (4.5) | |
Amounts reclassified from accumulated other comprehensive income / (loss) to earnings | 0.1 | (1.3) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Related Party Transaction [Line Items] | |||
Other comprehensive loss before reclassifications | (8.8) | (3.5) | |
Amounts reclassified from accumulated other comprehensive income / (loss) to earnings | 1 | 0.2 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Related Party Transaction [Line Items] | |||
Other comprehensive loss before reclassifications | 0 | (1) | |
Amounts reclassified from accumulated other comprehensive income / (loss) to earnings | (0.9) | (1.5) | |
Note to DPL Capital Trust II Maturing in 2031 - 8.125% [Member] | |||
Related Party Transaction [Line Items] | |||
Note payable to trust | 15.6 | 15.6 | |
Receivable from sale of software to AES [Member] | |||
Related Party Transaction [Line Items] | |||
Amounts due from affiliates | 5.1 | ||
Charges for health, welfare and benefit plans [Member] | Subsidiary of Common Parent [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 10.7 | 11.2 | 7.9 |
Consulting Services [Member] | Subsidiary of Common Parent [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 0.8 | $ 0.7 | $ 2 |
Business Segments (Segment Fina
Business Segments (Segment Financial Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
External customer revenues | $ 660.5 | $ 743.7 | $ 747.3 |
Intersegment revenues | 0 | 0 | 0 |
Total revenues | 660.5 | 743.7 | 747.3 |
Fuel Costs | 1.7 | 2.5 | 2.5 |
Depreciation and amortization | 73.3 | 72.3 | 76.2 |
Interest expense | 71.3 | 82.2 | 98 |
Gain (Loss) on Extinguishment of Debt | 31.7 | 44.9 | 6.5 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (11.9) | 31.5 | 38.9 |
Net loss from continuing operations | (6.4) | 51.8 | 36.7 |
Discontinued operations, net of tax | 5.4 | 53.6 | 33.4 |
Cash capital expenditures | 157.3 | 156.5 | 96.1 |
Total assets (end of year) | 2,036 | 1,935.8 | 1,883.1 |
Operating Segments [Member] | Utility [Member] | |||
Segment Reporting Information [Line Items] | |||
External customer revenues | 651.2 | 734.3 | 737.8 |
Intersegment revenues | 0.9 | 1.1 | 0.9 |
Total revenues | 652.1 | 735.4 | 738.7 |
Depreciation and amortization | 71.8 | 70.8 | 74.5 |
Interest expense | 24.3 | 26 | 27.3 |
Gain (Loss) on Extinguishment of Debt | 0 | 0 | 0.6 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 58.1 | 124.3 | 104.4 |
Cash capital expenditures | 153.3 | 155.5 | 85.6 |
Total assets (end of year) | 2,014.7 | 1,883.2 | 1,819.6 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
External customer revenues | 9.3 | 9.4 | 9.5 |
Intersegment revenues | 3.6 | 3.2 | 2.9 |
Total revenues | 12.9 | 12.6 | 12.4 |
Depreciation and amortization | 1.5 | 1.5 | 1.7 |
Interest expense | 47 | 56.2 | 70.7 |
Gain (Loss) on Extinguishment of Debt | 31.7 | 44.9 | 5.9 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (70) | (92.8) | (65.5) |
Cash capital expenditures | 4 | 1 | 10.5 |
Total assets (end of year) | 21.3 | 52.6 | 63.5 |
Consolidation, Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
External customer revenues | 0 | 0 | 0 |
Intersegment revenues | (4.5) | (4.3) | (3.8) |
Total revenues | (4.5) | (4.3) | (3.8) |
Depreciation and amortization | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Gain (Loss) on Extinguishment of Debt | 0 | 0 | 0 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 0 | 0 | 0 |
Cash capital expenditures | $ 0 | $ 0 | $ 0 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020mi²segmentcustomer | |
Segment Reporting Information [Line Items] | |
Service area, square miles | 6,000 |
THE DAYTON POWER AND LIGHT COMPANY [Member] | |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | segment | 1 |
Approximate number of retail customers | customer | 531,000 |
Service area, square miles | 6,000 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 645 | $ 720.6 | $ 715.2 |
Revenues | 660.5 | 743.7 | 747.3 |
RTO Revenue | 44 | 43.5 | 43.1 |
RTO Capacity Revenue | 4.2 | 6.2 | 7.9 |
Contract with Customer, Asset, before Allowance for Credit Loss | 70.1 | 65.1 | |
Five Year Senior Unsecured Notes At 4125 Maturing on July12025 | |||
Make Whole Premium | 30.8 | ||
Extinguishment of Debt, Amount | 380 | ||
Utility [Member] | |||
Revenues | 652.1 | 735.4 | 738.7 |
RTO Revenue | 44 | 43.5 | 43.1 |
RTO Capacity Revenue | 4.2 | 6.2 | 7.8 |
Corporate, Non-Segment [Member] | |||
Revenues | 12.9 | 12.6 | 12.4 |
RTO Revenue | 0 | 0 | 0 |
RTO Capacity Revenue | 0 | 0 | 0.1 |
Consolidation, Eliminations [Member] | |||
Revenues | (4.5) | (4.3) | (3.8) |
RTO Revenue | 0 | 0 | 0 |
RTO Capacity Revenue | 0 | 0 | 0 |
Wholesale Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 10.1 | 16.2 | 29.9 |
Wholesale Revenue [Member] | Utility [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 11 | 17.2 | 29.9 |
Wholesale Revenue [Member] | Corporate, Non-Segment [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Wholesale Revenue [Member] | Consolidation, Eliminations [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (0.9) | (1) | 0 |
Other Revenues [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 9.3 | 9.4 | 9.5 |
Other non-606 revenue | 6.5 | 1.1 | 0 |
Other Revenues [Member] | Utility [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Other non-606 revenue | 6.5 | 1.2 | 0 |
Other Revenues [Member] | Corporate, Non-Segment [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 9.3 | 9.4 | 9.5 |
Other non-606 revenue | 3.6 | 3.2 | 2.8 |
Other Revenues [Member] | Consolidation, Eliminations [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Other non-606 revenue | (3.6) | (3.3) | (2.8) |
Retail Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 577.4 | 645.3 | 624.8 |
Other non-606 revenue | 9 | 22 | 32.1 |
Retail Revenue [Member] | Residential Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 362.3 | 403.5 | 404 |
Retail Revenue [Member] | Commercial Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 114.6 | 130.3 | 118.9 |
Retail Revenue [Member] | Industrial Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 51.2 | 55.3 | 48.9 |
Retail Revenue [Member] | Governmental Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 36.6 | 42.4 | 39.8 |
Retail Revenue [Member] | Other Revenues [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 12.7 | 13.8 | 13.2 |
Retail Revenue [Member] | Utility [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 577.4 | 645.3 | 625.8 |
Other non-606 revenue | 9 | 22 | 32.1 |
Retail Revenue [Member] | Utility [Member] | Residential Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 362.3 | 403.5 | 404 |
Retail Revenue [Member] | Utility [Member] | Commercial Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 114.6 | 130.3 | 118.9 |
Retail Revenue [Member] | Utility [Member] | Industrial Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 51.2 | 55.3 | 48.9 |
Retail Revenue [Member] | Utility [Member] | Governmental Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 36.6 | 42.4 | 40.8 |
Retail Revenue [Member] | Utility [Member] | Other Revenues [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 12.7 | 13.8 | 13.2 |
Retail Revenue [Member] | Corporate, Non-Segment [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Other non-606 revenue | 0 | 0 | 0 |
Retail Revenue [Member] | Corporate, Non-Segment [Member] | Residential Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Retail Revenue [Member] | Corporate, Non-Segment [Member] | Commercial Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Retail Revenue [Member] | Corporate, Non-Segment [Member] | Industrial Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Retail Revenue [Member] | Corporate, Non-Segment [Member] | Governmental Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Retail Revenue [Member] | Corporate, Non-Segment [Member] | Other Revenues [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Retail Revenue [Member] | Consolidation, Eliminations [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | (1) |
Other non-606 revenue | 0 | 0 | 0 |
Retail Revenue [Member] | Consolidation, Eliminations [Member] | Residential Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Retail Revenue [Member] | Consolidation, Eliminations [Member] | Commercial Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Retail Revenue [Member] | Consolidation, Eliminations [Member] | Industrial Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 |
Retail Revenue [Member] | Consolidation, Eliminations [Member] | Governmental Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | (1) |
Retail Revenue [Member] | Consolidation, Eliminations [Member] | Other Revenues [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | $ 0 | $ 0 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property, Plant and Equipment, Additions | $ 8.9 | $ 51 | $ 14.5 |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 6.1 | 20.1 | (1.6) |
Proceeds from disposal and sale of business interests | 1.6 | 0 | 234.9 |
Accounts receivable, net | 18 | ||
Intangible assets, net | 0.1 | ||
Total assets of the disposal group classified as held for sale in the balance sheets | 23.4 | ||
Accounts payable | 5.6 | ||
Total liabilities of the disposal group classified as held for sale in the balance sheets | 17.4 | ||
Revenues | 24.2 | 70.9 | 187.3 |
Cost of revenues | (24.8) | (19.8) | (121) |
Income / (loss) from discontinued operations before income tax | (0.6) | 47.6 | 63.5 |
Income tax expense from discontinued operations | 0.1 | 14.1 | 28.5 |
Net income from discontinued operations | 5.4 | 53.6 | 33.4 |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 3.2 | 21.3 | 35 |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | 4.9 | (51) | 233.6 |
Settlement of Joint Operating Agreement | (19.4) | ||
Disposal Group, Including Discontinued Operation, Inventory | 3.7 | ||
Disposal Group, Including Discontinued Operation, Other Assets, Current | 0.3 | ||
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 1 | ||
Disposal Group, Including Discontinued Operation, Accrued Income Tax Payable | 0.3 | ||
Disposal Group, Including Discontinued Operation, Other Liabilities, Current | 3.1 | ||
Disposal Group, Including Discontinued Operation, Other Liabilities, Noncurrent | 6.3 | ||
Disposal Group, Including Discontinued Operation, Fixed-Asset Impairment | 0 | (3.5) | (2.8) |
Disposal Group, Including Discontinued Operation, Asset Retirement Obligation, Revision of Estimate | 22.5 | 27.6 | |
Disposal Group, Including Discontinued Operation, Taxes Applicable to Subsequent Years | 0.3 | ||
Disposal Group, Including Discontinued Operation, Deferred Tax Assets | (6.5) | ||
Disposal Group, Including Discontinued Operation, Accrued Property Taxes | 0.3 | ||
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 8.3 | ||
Stuart and Killen [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property, Plant and Equipment, Additions | 51 | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ (20) | ||
AES Ohio Generation peakers [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | (1.9) | ||
Proceeds from disposal and sale of business interests | $ 234.9 | ||
Conesville [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property, Plant and Equipment, Additions | 1.8 | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 4.5 | ||
Forecast [Member] | Conesville [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property, Plant and Equipment, Additions | $ 4 |
Dispositions (Details)
Dispositions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ (11.9) | $ 31.5 | $ 38.9 |
Payments for Removal Costs | 8.9 | $ 51 | 14.5 |
Beckjord [Member] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (11.7) | ||
Payments for Removal Costs | $ 14.5 | ||
Hutchings | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 4.7 | ||
Payments for Removal Costs | 7 | ||
Payments for Removal Costs, Additional Payments | $ 2.3 |
Schedule II Valuation And Qua_2
Schedule II Valuation And Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Provision for Uncollectible Accounts [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 0.4 | $ 0.9 | $ 1.1 |
Additions | 3 | 3 | 3.4 |
Deductions | 0.6 | 3.5 | 3.6 |
Balance at End of Period | 2.8 | 0.4 | 0.9 |
Valuation Allowance For Deferred Tax Assets [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 29 | 29.9 | 36.3 |
Additions | 11 | 2.2 | 1.7 |
Deductions | 1 | 3.1 | 8.1 |
Balance at End of Period | $ 39 | $ 29 | $ 29.9 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | |
Unusual Risk or Uncertainty [Line Items] | |||||
Unusual Risks and Uncertainties | As the economic impact of the COVID-19 pandemic started to materialize in Ohio in the second half of March 2020 and continued for the duration of 2020, the COVID-19 pandemic primarily impacted our retail sales demand as shown by the changes in weather-normalized volumes of kWh sold compared to the weather-normalized volumes for the same periods in 2019: For the three month periods ended For the year ended Customer class March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 December 31, 2020 Commercial (3.2)% (11.0)% (2.3)% (5.0)% (5.3)% Industrial (1.5)% (19.9)% 0.9% 1.1% (5.0)% Residential 0.3% 8.5% 11.0% (0.9)% 4.2% | ||||
Risks and Uncertainties | Risks & Uncertainties COVID-19 Pandemic The COVID-19 pandemic has severely impacted global economic activity, including electricity and energy consumption, and caused significant volatility and negative pressure in financial markets. The global impact of the outbreak has been rapidly evolving and many countries, including the United States, have reacted by instituting quarantines, mandating business and school closures and social distancing measures as well as restricting travel. The State of Ohio has implemented, among other things, stay-at-home and other social distancing measures to slow the spread of the virus, which has impacted energy demand within our service territory, though the stay-at-home restrictions have now been lifted in our service territory. On March 12, 2020, the PUCO also issued an emergency order prohibiting electric utilities, including us, from discontinuing electric utility service to customers. This prohibition ended for DP&L on September 1, 2020. We are taking a variety of measures in response to the spread of COVID-19 to ensure our ability to transmit, distribute and sell electric energy, ensure the health and safety of our employees, contractors, customers and communities and provide essential services to the communities in which we operate. In addition to the impacts to demand within our service territory, we also have incurred and expect to continue to incur expenses relating to COVID-19, and such expenses may include those that relate to events outside of our control. As the economic impact of the COVID-19 pandemic started to materialize in Ohio in the second half of March 2020 and continued for the duration of 2020, the COVID-19 pandemic primarily impacted our retail sales demand as shown by the changes in weather-normalized volumes of kWh sold compared to the weather-normalized volumes for the same periods in 2019: For the three month periods ended For the year ended Customer class March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 December 31, 2020 Commercial (3.2)% (11.0)% (2.3)% (5.0)% (5.3)% Industrial (1.5)% (19.9)% 0.9% 1.1% (5.0)% Residential 0.3% 8.5% 11.0% (0.9)% 4.2% As noted above, we also have incurred, and expect to continue to incur, expenses relating to COVID-19; however, see Note 3 – Regulatory Matters for a discussion of regulatory measures, which partially mitigate the impact of these expenses. The ultimate magnitude and duration of the COVID-19 pandemic is unknown at this time and may have material and adverse effects on our results of operations, financial condition and cash flows in future periods. | ||||
Commercial [Member] | |||||
Unusual Risk or Uncertainty [Line Items] | |||||
Percentage Increase/Decrease in weather-normalized volumes of kWh sold | (5.00%) | (2.30%) | (11.00%) | (3.20%) | (5.30%) |
Industrial [Member] | |||||
Unusual Risk or Uncertainty [Line Items] | |||||
Percentage Increase/Decrease in weather-normalized volumes of kWh sold | 1.10% | 0.90% | (19.90%) | (1.50%) | (5.00%) |
Residential [Member] | |||||
Unusual Risk or Uncertainty [Line Items] | |||||
Percentage Increase/Decrease in weather-normalized volumes of kWh sold | (0.90%) | 11.00% | 8.50% | 0.30% | 4.20% |