Cover Statement
Cover Statement | 3 Months Ended |
Mar. 31, 2022shares | |
Entity Information [Line Items] | |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q1 |
Entity Central Index Key | 0000787250 |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Current Reporting Status | No |
Document Type | 10-Q |
Document Quarterly Report | true |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Document Period End Date | Mar. 31, 2022 |
Document Transition Report | false |
Entity Registrant Name | DPL Inc. |
Entity Incorporation, State or Country Code | OH |
Entity File Number | 1-9052 |
Entity Address, Address Line One | 1065 Woodman Drive |
Entity Address, City or Town | Dayton |
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 Small Business | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 1 |
Subsidiaries [Member] | |
Entity Information [Line Items] | |
Entity Central Index Key | 0000027430 |
Amendment Flag | false |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Registrant Name | THE DAYTON POWER AND LIGHT COMPANY |
Entity Incorporation, State or Country Code | OH |
Entity File Number | 1-2385 |
Entity Address, Address Line One | 1065 Woodman Drive |
Entity Address, City or Town | Dayton |
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 | 31-0258470 |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 41,172,173 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues | $ 199.3 | $ 175.2 |
Operating costs and expenses | ||
Net fuel cost | 0 | 0.4 |
Utilities Operating Expense, Purchased Power | 90.8 | 71.5 |
Operating expenses: | ||
Operation and maintenance | 40.8 | 34.8 |
Depreciation and amortization | 19.5 | 19.1 |
Taxes other than income taxes | 22 | 20.4 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges, excluding Discontinued Operations | (0.6) | 0 |
Costs and Expenses | 172.5 | 146.2 |
Operating income | 26.8 | 29 |
Other expense, net: | ||
Interest expense | (15.5) | (15.6) |
Other income | 0.4 | 0.5 |
Total other expense, net | (15.1) | (15.1) |
Income from continuing operations before income tax | 11.7 | 13.9 |
Income tax benefit from continuing operations | (3.7) | (0.3) |
Net income from continuing operations | 15.4 | 14.2 |
Loss from discontinued operations before income tax | 0 | (0.8) |
Income tax benefit from discontinued operations | 0 | (0.2) |
Net loss from discontinued operations | 0 | (0.6) |
Net income | 15.4 | 13.6 |
Subsidiaries [Member] | ||
Revenues | 197 | 172.8 |
Operating costs and expenses | ||
Net fuel cost | 0 | 0.4 |
Utilities Operating Expense, Purchased Power | 90.5 | 71.2 |
Operating expenses: | ||
Operation and maintenance | 40.2 | 34.6 |
Depreciation and amortization | 19.2 | 18.7 |
Taxes other than income taxes | 21.9 | 20.3 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges, excluding Discontinued Operations | (0.6) | 0 |
Costs and Expenses | 171.2 | 145.2 |
Operating income | 25.8 | 27.6 |
Other expense, net: | ||
Interest expense | (5.9) | (6) |
Other income | (0.3) | (0.1) |
Total other expense, net | (6.2) | (6.1) |
Income from continuing operations before income tax | 19.6 | 21.5 |
Income tax benefit from continuing operations | 2.7 | 3.2 |
Net income | $ 16.9 | $ 18.3 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income | $ 15.4 | $ 13.6 |
Derivative activity: | ||
Reclassification of earnings, net of income tax | (0.1) | (0.2) |
Total change in fair value of derivatives | (0.1) | (0.2) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax | 0.1 | 0.1 |
Pension and postretirement activity: | ||
Reclassification to earnings, net of income tax | 0.2 | 0.5 |
Total change in unfunded pension obligation | 0.2 | 0.5 |
Other comprehensive income | 0.1 | 0.3 |
Net comprehensive income | 15.5 | 13.9 |
Income tax (expense)/benefit on reclassification of earnings related to derivative activity | 0.1 | 0 |
Subsidiaries [Member] | ||
Net income | 16.9 | 18.3 |
Pension and postretirement activity: | ||
Reclassification to earnings, net of income tax | 0.7 | 1 |
Total change in unfunded pension obligation | 0.7 | 1 |
Other comprehensive income | 0.7 | 1 |
Net comprehensive income | 17.6 | 19.3 |
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity | $ (0.2) | $ (0.3) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income tax (expense)/benefit on reclassification of earnings related to derivative activity | $ 0.1 | $ 0 |
Subsidiaries [Member] | ||
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity | $ (0.2) | $ (0.3) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 32.1 | $ 26.6 |
Accounts receivable, net | 73.9 | 71.5 |
Accounts Receivable, Allowance for Credit Loss, Current | 0.2 | 0.3 |
Inventories | 17.4 | 14.4 |
Taxes applicable to subsequent years | 60.9 | 83.1 |
Regulatory assets, current | 19.4 | 24.5 |
Income Taxes Receivable, Current | 6 | 2.7 |
Prepayments and other current assets | 10.5 | 7.6 |
Total current assets | 220.2 | 230.4 |
Property, plant & equipment: | ||
Property, plant & equipment | 2,032.6 | 1,990.4 |
Less: Accumulated depreciation and amortization | (475.3) | (464) |
Property, plant and equipment, net of depreciation | 1,557.3 | 1,526.4 |
Construction work in process | 172.6 | 174.4 |
Total net property, plant & equipment | 1,729.9 | 1,700.8 |
Other non-current assets: | ||
Regulatory assets, non-current | 174.3 | 176.8 |
Intangible assets, net of amortization | 37.3 | 33.7 |
Other non-current assets | 28 | 30.1 |
Total other non-current assets | 239.6 | 240.6 |
Total assets | 2,189.7 | 2,171.8 |
Current liabilities: | ||
Current portion of long-term debt | 140.2 | 65.2 |
Accounts payable | 76.4 | 111 |
Accrued taxes | 87.7 | 85.1 |
Accrued interest | 18.3 | 15.3 |
Security deposits | 20.1 | 15 |
Regulatory liabilities, current | 19.9 | 14.6 |
Other current liabilities | 14.8 | 17.1 |
Total current liabilities | 377.4 | 323.3 |
Non-current liabilities: | ||
Long-term debt | 1,395.8 | 1,395.3 |
Deferred taxes | 189.6 | 187.9 |
Taxes payable | 41 | 83.6 |
Regulatory liabilities, non-current | 226.6 | 229.3 |
Pension, retiree and other benefits | 54.3 | 62.3 |
Other deferred credits | 10.9 | 11.5 |
Total non-current liabilities | 1,918.2 | 1,969.9 |
Commitments and contingencies | ||
Common shareholder's equity: | ||
Common stock | 0 | 0 |
Other paid-in capital | 2,601.3 | 2,601.3 |
Accumulated other comprehensive income | (4.7) | (4.8) |
Retained Earnings (Accumulated Deficit) | (2,702.5) | (2,717.9) |
Total common shareholder's equity | (105.9) | (121.4) |
Total liabilities and shareholder's equity | $ 2,189.7 | $ 2,171.8 |
Common Stock, Shares Authorized | 1,500 | 1,500 |
Common stock, shares issued | 1 | 1 |
Common Stock [Member] | ||
Common shareholder's equity: | ||
Total common shareholder's equity | $ 0 | $ 0 |
Other Additional Capital [Member] | ||
Common shareholder's equity: | ||
Total common shareholder's equity | 2,601.3 | 2,601.3 |
Subsidiaries [Member] | ||
Current assets: | ||
Cash and cash equivalents | 17.9 | 14.4 |
Accounts receivable, net | 73.6 | 71.9 |
Accounts Receivable, Allowance for Credit Loss, Current | 0.2 | 0.3 |
Inventories | 17.4 | 14.4 |
Taxes applicable to subsequent years | 60.8 | 83 |
Regulatory assets, current | 19.4 | 24.5 |
Income Taxes Receivable, Current | 27.3 | 28.1 |
Prepayments and other current assets | 12.8 | 8 |
Total current assets | 229.2 | 244.3 |
Property, plant & equipment: | ||
Property, plant & equipment | 2,600.4 | 2,571.3 |
Less: Accumulated depreciation and amortization | (1,060.7) | (1,062.6) |
Property, plant and equipment, net of depreciation | 1,539.7 | 1,508.7 |
Construction work in process | 168.4 | 170.5 |
Total net property, plant & equipment | 1,708.1 | 1,679.2 |
Other non-current assets: | ||
Regulatory assets, non-current | 174.3 | 176.8 |
Intangible assets, net of amortization | 36 | 32.4 |
Other non-current assets | 28.1 | 29.9 |
Total other non-current assets | 238.4 | 239.1 |
Total assets | 2,175.7 | 2,162.6 |
Current liabilities: | ||
Current portion of long-term debt | 75.2 | 0.2 |
Accounts payable | 75.8 | 111.5 |
Accrued taxes | 88 | 85.1 |
Accrued interest | 5.9 | 2.6 |
Security deposits | 19.9 | 14.9 |
Regulatory liabilities, current | 19.9 | 14.6 |
Other current liabilities | 11.3 | 13 |
Total current liabilities | 296 | 241.9 |
Non-current liabilities: | ||
Long-term debt | 574.1 | 574.1 |
Deferred taxes | 187.6 | 183.4 |
Taxes payable | 40.9 | 83.5 |
Regulatory liabilities, non-current | 226.6 | 229.3 |
Pension, retiree and other benefits | 54.3 | 62.3 |
Other deferred credits | 5.7 | 5.9 |
Total non-current liabilities | 1,089.2 | 1,138.5 |
Commitments and contingencies | ||
Par value common shares (in USD per share) | $ 0.01 | $ 0.01 |
Common shareholder's equity: | ||
Common stock | $ 0.4 | $ 0.4 |
Other paid-in capital | 813.5 | 822.5 |
Accumulated other comprehensive income | (31.1) | (31.8) |
Retained Earnings (Accumulated Deficit) | 7.7 | (8.9) |
Total common shareholder's equity | 790.5 | 782.2 |
Total liabilities and shareholder's equity | $ 2,175.7 | $ 2,162.6 |
Common Stock, Shares, Outstanding | 41,172,173 | 41,172,173 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Subsidiaries [Member] | Common Stock [Member] | ||
Common shareholder's equity: | ||
Total common shareholder's equity | $ 0.4 | |
Subsidiaries [Member] | Other Additional Capital [Member] | ||
Common shareholder's equity: | ||
Total common shareholder's equity | $ 813.5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Common Stock, Shares Authorized | 1,500 | 1,500 |
Common stock, shares issued | 1 | 1 |
Subsidiaries [Member] | ||
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Outstanding | 41,172,173 | 41,172,173 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 15.4 | $ 13.6 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 19.5 | 19.1 |
Deferred income taxes | (0.4) | 3.5 |
Gain (Loss) on Disposition of Business, Including Discontinued Operation | (0.6) | 0 |
Changes in certain assets and liabilities: | ||
Accounts receivable, net | (2.3) | 6 |
Inventories | (3) | (0.3) |
Taxes applicable to subsequent years | 22.3 | 20 |
Deferred regulatory costs, net | 10.4 | (4.8) |
Accounts payable | (15.7) | (1.6) |
Accrued taxes payable / receivable | (43.3) | (40.2) |
Accrued interest | 3 | 2.4 |
Increase (Decrease) in Obligation, Pension and Other Postretirement Benefits | (8) | (10.5) |
Other | 2.5 | (1.7) |
Net Cash Provided by (Used in) Operating Activities | (0.2) | 5.5 |
Cash flows from investing activities: | ||
Capital expenditures | (64.4) | (51.9) |
Payments for (Proceeds from) Removal Costs | (5) | (4.5) |
Other investing activities, net | 0.1 | (0.4) |
Net cash used in investing activities | (69.3) | (56.8) |
Cash flows from financing activities: | ||
Proceeds from Lines of Credit | 95 | 60 |
Repayments of Lines of Credit | (20) | 0 |
Net cash provided by financing activities | 75 | 60 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 5.5 | 8.7 |
Cash, cash equivalents, and restricted cash: | ||
Restricted Cash and Cash Equivalents | 32.2 | 34.2 |
Non-cash financing and investing activities: | ||
Accruals for capital expenditures | 23.7 | 16.3 |
Supplemental cash flow information: | ||
Interest paid, net of amounts capitalized | 11.3 | 12.9 |
Subsidiaries [Member] | ||
Cash flows from operating activities: | ||
Net income | 16.9 | 18.3 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 19.2 | 18.7 |
Deferred income taxes | 2 | 3.2 |
Gain (Loss) on Disposition of Business, Including Discontinued Operation | (0.6) | 0 |
Changes in certain assets and liabilities: | ||
Accounts receivable, net | (1.7) | 5.9 |
Inventories | (3) | (0.3) |
Taxes applicable to subsequent years | 22.3 | 19.7 |
Deferred regulatory costs, net | 10.4 | (4.8) |
Accounts payable | (16.7) | (4.3) |
Accrued taxes payable / receivable | (38.8) | (38.8) |
Accrued interest | 3.3 | 3.2 |
Increase (Decrease) in Obligation, Pension and Other Postretirement Benefits | (8) | (10.5) |
Other | 0.9 | 1 |
Net Cash Provided by (Used in) Operating Activities | 6.2 | 11.3 |
Cash flows from investing activities: | ||
Capital expenditures | (64.2) | (51.6) |
Payments for (Proceeds from) Removal Costs | (5) | (4.5) |
Other investing activities, net | 0.5 | (0.1) |
Net cash used in investing activities | (68.7) | (56.2) |
Cash flows from financing activities: | ||
Payments of Ordinary Dividends, Common Stock | (9) | (10) |
Proceeds from Lines of Credit | 95 | 60 |
Repayments of Lines of Credit | (20) | 0 |
Net cash provided by financing activities | 66 | 50 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 3.5 | 5.1 |
Cash, cash equivalents, and restricted cash: | ||
Restricted Cash and Cash Equivalents | 18 | 16.9 |
Non-cash financing and investing activities: | ||
Accruals for capital expenditures | 23.6 | 16 |
Supplemental cash flow information: | ||
Interest paid, net of amounts capitalized | $ 1.8 | $ 2.7 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Statement) - USD ($) $ in Millions | Total | Subsidiaries [Member] | Common Stock [Member] | Common Stock [Member]Subsidiaries [Member] | Other Additional Capital [Member] | Other Additional Capital [Member]Subsidiaries [Member] | AOCI Attributable to Parent [Member] | AOCI Attributable to Parent [Member]Subsidiaries [Member] | Retained Earnings [Member] | Retained Earnings [Member]Subsidiaries [Member] |
Shares, Issued | 1 | 41,172,173 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (283.5) | $ 616.7 | $ 0 | $ 0.4 | $ 2,468.8 | $ 714.4 | $ (12.3) | $ (42.1) | $ (2,740) | $ (56) |
Other Comprehensive Income (Loss), Net of Tax | 0.3 | 1 | ||||||||
Net income | 13.6 | 18.3 | ||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 13.9 | 19.3 | ||||||||
Net Income (Loss) Attributable to Parent | 18.3 | |||||||||
Dividends, Common Stock, Cash | (10) | |||||||||
Shares, Issued | 1 | 41,172,173 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (269.6) | 636 | $ 0 | $ 0.4 | 2,468.8 | 714.4 | (12) | (41.1) | (2,726.4) | (37.7) |
Shares, Issued | 1 | 41,172,173 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (121.4) | $ 782.2 | $ 0 | 2,601.3 | (4.8) | (2,717.9) | ||||
Common Stock, Shares Authorized | 1,500 | 50,000,000 | ||||||||
Common Stock, Value, Issued | $ 0 | $ 0.4 | ||||||||
Other paid-in capital | 2,601.3 | 822.5 | ||||||||
Accumulated other comprehensive income | (4.8) | (31.8) | ||||||||
Retained Earnings (Accumulated Deficit) | (2,717.9) | $ (8.9) | ||||||||
Par value common shares (in USD per share) | $ 0.01 | |||||||||
Other Comprehensive Income (Loss), Net of Tax | 0.1 | $ 0.7 | 0.7 | |||||||
Net income | 15.4 | 16.9 | ||||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 15.5 | 17.6 | ||||||||
Net Income (Loss) Attributable to Parent | 16.9 | |||||||||
Dividends, Common Stock, Cash | (9) | (9) | ||||||||
Stockholders' Equity, Other | (0.3) | (0.3) | ||||||||
Shares, Issued | 1 | 41,172,173 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (105.9) | $ 790.5 | $ 0 | $ 0.4 | $ 2,601.3 | $ 813.5 | $ (4.7) | $ (31.1) | $ (2,702.5) | $ 7.7 |
Common Stock, Shares Authorized | 1,500 | 50,000,000 | ||||||||
Common Stock, Value, Issued | $ 0 | $ 0.4 | ||||||||
Other paid-in capital | 2,601.3 | 813.5 | ||||||||
Accumulated other comprehensive income | (4.7) | (31.1) | ||||||||
Retained Earnings (Accumulated Deficit) | $ (2,702.5) | $ 7.7 | ||||||||
Par value common shares (in USD per share) | $ 0.01 |
Overview and Summary of Signifi
Overview and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
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 regional energy company organized in 1985 under the laws of Ohio. DPL has one reportable segment, the Utility segment. See Note 9 – Business Segments for more information relating to this reportable segment. The terms “we,” “us,” “our” and “ours” are used to refer to DPL and its subsidiaries. DPL is an indirectly wholly-owned subsidiary of AES. DP&L , a wholly-owned subsidiary of DPL that does business as AES Ohio , is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, retail transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such transmission and distribution services to approximately 535,000 customers located in West Central Ohio. Additionally, AES Ohio provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000-square mile area of West Central Ohio. AES Ohio sources all of the generation for its SSO customers through a competitive bid process. Principal industries located in AES Ohio’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. AES Ohio's sales reflect the general economic conditions, seasonal weather patterns of the area, the market price of electricity and customer energy efficiency initiatives. AES Ohio owns numerous transmission facilities. AES Ohio sells its proportional share of energy and capacity from its investment in OVEC into the wholesale market. DPL’s other primary subsidiaries are MVIC and Miami Valley Lighting. MVIC is our captive insurance company that provides insurance services to AES Ohio 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. AES Ohio Generation retired its only remaining operating asset in May 2020 and sold it in June 2020. See Note 11 – Discontinued Operations for more information. DPL's subsidiaries are all 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. AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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. Financial Statement Presentation DPL’s Condensed 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. Certain immaterial amounts from prior periods have been reclassified to conform to the current period presentation. All material intercompany accounts and transactions are eliminated in consolidation. We have evaluated subsequent events through the date this report is issued. These financial statements have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial statements and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. Therefore, our interim financial statements in this report should be read along with the annual financial statements included in our Form 10-K for the fiscal year ended December 31, 2021. In the opinion of our management, the Condensed Consolidated Financial Statements presented in this report contain all adjustments necessary to fairly state our financial position as of March 31, 2022; our results of operations for the three months ended March 31, 2022 and 2021, our cash flows for the three months ended March 31, 2022 and 2021 and the changes in our equity for the three months ended March 31, 2022 and 2021. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three months ended March 31, 2022 may not be indicative of our results that will be realized for the full year ending December 31, 2022. 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: recognition of revenue including unbilled revenues; the carrying value of property, plant and equipment; the valuation of insurance and claims liabilities; the valuation of allowances for credit losses and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits. Cash, Cash Equivalents and Restricted Cash The following table provides a summary of cash, cash equivalents, and restricted cash amounts reported on the Condensed Consolidated Balance Sheets that reconcile to the total of such amounts as shown on the Condensed Consolidated Statements of Cash Flows: $ in millions March 31, 2022 December 31, 2021 Cash and cash equivalents $ 32.1 $ 26.6 Restricted cash (included in Prepayments and other current assets) 0.1 0.1 Cash, Cash Equivalents, and Restricted Cash, End of Period $ 32.2 $ 26.7 Accounts Receivable and Allowance for Credit Losses Accounts receivable were as follows as of March 31, 2022 and December 31, 2021: March 31, December 31, $ in millions 2022 2021 Accounts receivable, net: Customer receivables $ 47.4 $ 42.3 Unbilled revenue 17.0 19.2 Amounts due from affiliates 3.7 3.1 Due from PJM transmission enhancement settlement 1.7 1.7 Other 4.3 5.5 Allowance for credit losses (0.2) (0.3) Total accounts receivable, net $ 73.9 $ 71.5 The following table is a roll forward of our allowance for credit losses related to the accounts receivable balances for the three months ended March 31, 2022 and 2021: $ in millions Beginning Allowance Balance Current Period Provision Write-offs Charged Against Allowances Recoveries Collected Ending Allowance Balance 2022 $ 0.3 $ (0.1) $ (0.2) $ 0.2 $ 0.2 2021 $ 2.8 $ — $ (0.7) $ 0.2 $ 2.3 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 are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of March 31, 2022. Amounts are written off when reasonable collections efforts have been exhausted. During 2021, the current period provision and allowance for credit losses have decreased due to lower past due customer receivable balances. Inventories Inventories consist of materials and supplies as of March 31, 2022 and December 31, 2021. Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities AES Ohio collects certain excise taxes levied by state or local governments from its customers. These taxes are accounted for on a net basis and not included in revenue. The amounts of such taxes collected for the three months ended March 31, 2022 and 2021 were as follows: Three months ended March 31, $ in millions 2022 2021 Excise taxes collected $ 13.1 $ 12.9 Accumulated other comprehensive loss The amounts reclassified out of Accumulated other comprehensive loss by component during the three months ended March 31, 2022 and 2021 are as follows: Details about Accumulated Other Comprehensive Loss components Affected line item in the Condensed Consolidated Statements of Operations Three months ended March 31, $ in millions 2022 2021 Net gains on cash flow hedges (Note 4): Interest expense $ (0.2) $ (0.2) Income tax expense 0.1 — Net of income taxes (0.1) (0.2) Amortization of defined benefit pension items (Note 7): Other expense 0.3 0.6 Income tax benefit (0.1) (0.1) Net of income taxes 0.2 0.5 Total reclassifications for the period, net of income taxes $ 0.1 $ 0.3 The changes in the components of Accumulated other comprehensive loss during the three months ended March 31, 2022 are as follows: $ in millions Change in cash flow hedges Change in unfunded pension and postretirement benefit obligations Total Balance as of January 1, 2022 $ 12.8 $ (17.6) $ (4.8) Amounts reclassified from AOCL to earnings (0.1) 0.2 0.1 Net current period other comprehensive income / (loss) (0.1) 0.2 0.1 Balance as of March 31, 2022 $ 12.7 $ (17.4) $ (4.7) New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted 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. ASU Number and Name Description Date of Adoption Effect on the financial statements upon adoption 2020-04 and 2021-01, Reference Rate Form (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in these updates provide 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, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts. Effective for all entities as of March 12, 2020 through December 31, 2022 We are implementing the reference rate reform and do not expect these amendments to have a material impact on our consolidated financial statements. See Implementation for further details. |
Subsidiaries [Member] | |
Significant Accounting Policies [Line Items] | |
Overview and Summary of Significant Accounting Policies | Overview and Summary of Significant Accounting Policies Description of Business DP&L , which does business as AES Ohio , is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, retail transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such transmission and distribution services to approximately 535,000 customers located in West Central Ohio. Additionally, AES Ohio provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000-square mile area of West Central Ohio. AES Ohio sources all of the generation for its SSO customers through a competitive bid process. Principal industries located in AES Ohio’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. AES Ohio's sales reflect the general economic conditions, seasonal weather patterns of the area, the market price of electricity and customer energy efficiency initiatives. AES Ohio owns numerous transmission facilities. AES Ohio sells its proportional share of energy and capacity from its investment in OVEC into the wholesale market. AES Ohio has one reportable segment, the Utility segment. In addition to AES Ohio's electric transmission and distribution businesses, the Utility segment includes revenues and costs associated with AES Ohio's investment in OVEC. AES Ohio is a subsidiary of DPL. The terms “we,” “us,” “our” and “ours” are used to refer to AES Ohio . AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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. Financial Statement Presentation AES Ohio does not have any subsidiaries. We have evaluated subsequent events through the date this report is issued. Certain immaterial amounts from prior periods have been reclassified to conform to the current period presentation. These financial statements have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial statements and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. Therefore, our interim financial statements in this report should be read along with the annual financial statements included in our Form 10-K for the fiscal year ended December 31, 2021. In the opinion of our management, the Condensed Financial Statements presented in this report contain all adjustments necessary to fairly state our financial position as of March 31, 2022; our results of operations for the three months ended March 31, 2022 and 2021, our cash flows for the three months ended March 31, 2022 and 2021 and the changes in our equity for the three months ended March 31, 2022 and 2021. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three months ended March 31, 2022 may not be indicative of our results that will be realized for the full year ending December 31, 2022. 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: recognition of revenue including unbilled revenues; the carrying value of property, plant and equipment; the valuation of insurance and claims liabilities; the valuation of allowances for credit losses and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits. Cash, Cash Equivalents and Restricted Cash The following table provides a summary of cash, cash equivalents, and restricted cash amounts reported on the Condensed Balance Sheets that reconcile to the total of such amounts as shown on the Condensed Statements of Cash Flows: $ in millions March 31, 2022 December 31, 2021 Cash and cash equivalents $ 17.9 $ 14.4 Restricted cash (included in Prepayments and other current assets) 0.1 0.1 Cash, Cash Equivalents, and Restricted Cash, End of Period $ 18.0 $ 14.5 Accounts Receivable and Allowance for Credit Losses Accounts receivable were as follows as of March 31, 2022 and December 31, 2021: March 31, December 31, $ in millions 2022 2021 Accounts receivable, net: Customer receivables 46.5 $ 41.6 Unbilled revenue 17.0 19.2 Amounts due from affiliates 4.3 4.4 Due from PJM transmission enhancement settlement 1.7 1.7 Other 4.3 5.3 Allowance for credit losses (0.2) (0.3) Total accounts receivable, net $ 73.6 $ 71.9 The following table is a roll forward of our allowance for credit losses related to the accounts receivable balances for the three months ended March 31, 2022 and 2021: $ in millions Beginning Allowance Balance Current Period Provision Write-offs Charged Against Allowances Recoveries Collected Ending Allowance Balance 2022 $ 0.3 $ (0.1) $ (0.2) $ 0.2 $ 0.2 2021 $ 2.8 $ — $ (0.7) $ 0.2 $ 2.3 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 are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of March 31, 2022. Amounts are written off when reasonable collections efforts have been exhausted. During 2021, the current period provision and allowance for credit losses have decreased due to lower past due customer receivable balances. Inventories Inventories consist of materials and supplies as of March 31, 2022 and December 31, 2021. Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities AES Ohio collects certain excise taxes levied by state or local governments from its customers. These taxes are accounted for on a net basis and not included in revenue. The amounts of such taxes collected for the three months ended March 31, 2022 and 2021 were as follows: Three months ended March 31, $ in millions 2022 2021 Excise taxes collected $ 13.1 $ 12.9 Accumulated other comprehensive loss The amounts reclassified out of Accumulated other comprehensive loss by component during the three months ended March 31, 2022 and 2021 are as follows: Details about Accumulated Other Comprehensive Loss components Affected line item in the Condensed Consolidated Statements of Operations Three months ended March 31, $ in millions 2022 2021 Amortization of defined benefit pension items (Note 6): Other expense 0.9 1.3 Income tax benefit (0.2) (0.3) Net of income taxes 0.7 1.0 Total reclassifications for the period, net of income taxes $ 0.7 $ 1.0 The changes in the components of Accumulated other comprehensive loss during the three months ended March 31, 2022 are as follows: $ in millions Change in Accumulated other comprehensive loss Balance as of January 1, 2022 $ (31.8) Amounts reclassified from AOCL to earnings 0.7 Net current period other comprehensive income 0.7 Balance as of March 31, 2022 $ (31.1) New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted did not have a material impact on our 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 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 financial statements. ASU Number and Name Description Date of Adoption Effect on the financial statements upon adoption 2020-04 and 2021-01, Reference Rate Form (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in these updates provide 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, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts. Effective for all entities as of March 12, 2020 through December 31, 2022 We are implementing the reference rate reform and do not expect these amendments to have a material impact on our financial statements. See Implementation for further details. |
Regulatory Matters (Notes)
Regulatory Matters (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Schedule of Regulatory Assets and Liabilities [Text Block] | Regulatory Matters Distribution Rate Case On November 30, 2020, AES Ohio 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. A hearing on this case was held in January 2022, and the case is pending a commission order. Certain parties that have intervened in the distribution rate case have argued that ESP 1 incorporates a distribution rate freeze. We are unable to predict the outcome of the distribution rate case, but if the PUCO were to impose a rate freeze that precludes AES Ohio’s ability to implement a distribution rate increase during ESP 1, it could have a material adverse effect on our results of operations, financial condition and cash flows. |
Subsidiaries [Member] | |
Schedule of Regulatory Assets and Liabilities [Text Block] | Regulatory Matters Distribution Rate Case On November 30, 2020, AES Ohio 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. A hearing on this case was held in January 2022, and the case is pending a commission order. Certain parties that have intervened in the distribution rate case have argued that ESP 1 incorporates a distribution rate freeze. We are unable to predict the outcome of the distribution rate case, but if the PUCO were to impose a rate freeze that precludes AES Ohio’s ability to implement a distribution rate increase during ESP 1, it could have a material adverse effect on our results of operations, financial condition and cash flows. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value | Fair Value The fair value of current financial assets and liabilities, debt service reserves and other deposits approximate their reported carrying amounts. The estimated fair values of our assets and liabilities have been determined using available market information. By virtue of these amounts being estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For further information on our valuation techniques and policies, see Note 4— Fair Value in Item 8. — Financial Statements and Supplementary Data of our Form 10-K. The following table presents the fair value, carrying value and cost of our non-derivative instruments as of March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 $ in millions Cost Fair Value Cost Fair Value Assets Money market funds $ 0.4 $ 0.4 $ 0.4 $ 0.4 Equity securities 1.9 4.5 1.9 5.1 Debt securities 3.7 3.5 3.8 3.9 Total $ 6.0 $ 8.4 $ 6.1 $ 9.4 Carrying Value Fair Value Carrying Value Fair Value Liabilities Long-term debt $ 1,396.0 $ 1,403.7 $ 1,395.5 $ 1,519.7 These financial instruments are not subject to master netting agreements or collateral requirements and, as such, are presented in the Condensed Consolidated Balance Sheets at their gross fair value, except for Long-term debt, which is presented at amortized carrying value. We did not have any transfers of the fair values of our financial instruments between Level 1, Level 2 or Level 3 of the fair value hierarchy during the three months ended March 31, 2022 or 2021. Master Trust Assets AES Ohio 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. 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 Condensed Consolidated Balance Sheets and classified as equity investments. We recorded net unrealized gains / (losses) of $(0.7) million and $0.2 million during the three months ended March 31, 2022 and 2021, respectively. These amounts are included in "Other income" in our Condensed Consolidated Statements of Operations. Long-term 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 long-term debt is presented at carrying value, net of unamortized premium or discount and unamortized deferred financing costs in the financial statements. The long-term debt amounts include the current portion payable in the next twelve months and have maturities that range from 2025 to 2061. The fair value of assets and liabilities as of March 31, 2022 and December 31, 2021 and the respective category within the fair value hierarchy for DPL is as follows: $ in millions Fair value as of March 31, 2022 (a) Fair value as of December 31, 2021 (a) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Master Trust assets Money market funds $ 0.4 $ — $ — $ 0.4 $ 0.4 $ — $ — $ 0.4 Equity securities — 4.5 — 4.5 — 5.1 — 5.1 Debt securities — 3.5 — 3.5 — 3.9 — 3.9 Total assets $ 0.4 $ 8.0 $ — $ 8.4 $ 0.4 $ 9.0 $ — $ 9.4 Liabilities Long-term debt $ — $ 1,386.6 $ 17.1 $ 1,403.7 $ — $ 1,502.5 $ 17.2 $ 1,519.7 Total Liabilities $ — $ 1,386.6 $ 17.1 $ 1,403.7 $ — $ 1,502.5 $ 17.2 $ 1,519.7 (a) Includes credit valuation adjustment |
Subsidiaries [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value | Fair Value The fair value of current financial assets and liabilities, debt service reserves and other deposits approximate their reported carrying amounts. The estimated fair values of our assets and liabilities have been determined using available market information. By virtue of these amounts being estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For further information on our valuation techniques and policies, see Note 4— Fair Value in Item 8. — Financial Statements and Supplementary Data of our Form 10-K. The following table presents the fair value, carrying value and cost of our non-derivative instruments as of March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 $ in millions Cost Fair Value Cost Fair Value Assets Money market funds $ 0.4 $ 0.4 $ 0.4 $ 0.4 Equity securities 1.9 4.5 1.9 5.1 Debt securities 3.7 3.5 3.8 3.9 Total $ 6.0 $ 8.4 $ 6.1 $ 9.4 Carrying Value Fair Value Carrying Value Fair Value Liabilities Long-term debt $ 574.3 $ 582.8 $ 574.3 $ 642.6 These financial instruments are not subject to master netting agreements or collateral requirements and, as such, are presented in the Condensed Balance Sheets at their gross fair value, except for Long-term debt, which is presented at amortized carrying value. We did not have any transfers of the fair values of our financial instruments between Level 1, Level 2 or Level 3 of the fair value hierarchy during the three months ended March 31, 2022 or 2021. Master Trust Assets AES Ohio 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. 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 Condensed Balance Sheets and classified as equity investments. We recorded net unrealized gains / (losses) of $(0.7) million and $0.2 million during the three months ended March 31, 2022 and 2021, respectively. These amounts are included in "Other expense" in our Condensed Statements of Operations. Long-term 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 long-term debt is presented at carrying value, net of unamortized premium or discount and unamortized deferred financing costs in the financial statements. The long- term debt amounts include the current portion payable in the next twelve months and have maturities that range from 2040 to 2061. The fair value of assets and liabilities as of March 31, 2022 and December 31, 2021 and the respective category within the fair value hierarchy for AES Ohio is as follows: $ in millions Fair value as of March 31, 2022 (a) Fair value as of December 31, 2021 (a) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Master Trust assets Money market funds $ 0.4 $ — $ — $ 0.4 $ 0.4 $ — $ — $ 0.4 Equity securities — 4.5 — 4.5 — 5.1 — 5.1 Debt securities — 3.5 — 3.5 — 3.9 — 3.9 Total assets $ 0.4 $ 8.0 $ — $ 8.4 $ 0.4 $ 9.0 $ — $ 9.4 Liabilities Long-term debt $ — $ 565.7 $ 17.1 $ 582.8 $ — $ 625.4 $ 17.2 $ 642.6 Total Liabilities $ — $ 565.7 $ 17.1 $ 582.8 $ — $ 625.4 $ 17.2 $ 642.6 (a) Includes credit valuation adjustment 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, the fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities For further information on our derivative and hedge accounting policies, See Note 1 – Overview and Summary of Significant Accounting Policies – Financial Derivatives and Note 5 - Derivative Instruments and Hedging Activities of Item 8 – Financial Statements and Supplementary Data in our Form 10-K. Cash Flow Hedges We 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. The following tables provide information concerning gains recognized in AOCL for the cash flow hedges for the three months ended March 31, 2022 and 2021: Three months ended March 31, 2022 March 31, 2021 Interest Interest $ in millions (net of tax) Rate Hedge Rate Hedge Beginning accumulated derivative gains in AOCL $ 12.8 $ 13.6 Net gains reclassified to earnings Interest expense (0.1) (0.2) Ending accumulated derivative gains in AOCL $ 12.7 $ 13.4 Portion expected to be reclassified to earnings in the next twelve months $ (0.8) |
Debt Obligations
Debt Obligations | 3 Months Ended |
Mar. 31, 2022 | |
Debt Instrument [Line Items] | |
Long-term Debt | Long-term Debt Long-term debt is as follows: Interest March 31, December 31, $ in millions Rate Maturity 2022 2021 First Mortgage Bonds 3.95% 2049 $ 425.0 $ 425.0 First Mortgage Bonds 3.20% 2040 140.0 140.0 U.S. Government note 4.20% 2061 17.1 17.2 Unamortized deferred financing costs (5.3) (5.4) Unamortized debt discounts, net (2.5) (2.5) Total long-term debt at AES Ohio 574.3 574.3 Senior unsecured bonds 4.125% 2025 415.0 415.0 Senior unsecured bonds 4.35% 2029 400.0 400.0 Note to DPL Capital Trust II (a) 8.125% 2031 15.6 15.6 Unamortized deferred financing costs (8.1) (8.6) Unamortized debt discounts, net (0.8) (0.8) Total long-term debt 1,396.0 1,395.5 Less: current portion (0.2) (0.2) Long-term debt, net of current portion $ 1,395.8 $ 1,395.3 (a) Note payable to related party. Lines of credit As of March 31, 2022 and December 31, 2021, the DPL Credit Agreement had outstanding borrowings of $65.0 million and $65.0 million, respectively. As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings of $75.0 million and $0.0 million, respectively. Significant transactions DPL Inc. agreed to register the 2025 DPL Inc. Senior Unsecured Bonds under the Securities Act by filing an exchange offer registration statement or, under specified circumstances, a shelf registration statement with the SEC pursuant to a Registration Rights Agreement dated June 19, 2020. DPL Inc. filed a registration statement on Form S-4 with respect to the 2025 DPL Inc. Senior Unsecured Bonds with the SEC on March 15, 2021, and this registration statement was declared effective on March 31, 2021. The exchange offer closed on May 5, 2021. Long-term debt covenants and restrictions The DPL 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 March 31, 2022, DPL was in compliance with this financial covenant. 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 March 31, 2022, DPL Inc. was in compliance with this financial covenant. The DPL Credit Agreement also restricts dividend payments from DPL Inc. to AES, such that DPL cannot make dividend payments unless at the time of, and/or as a result of the distribution, (i) DPL Inc.’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 March 31, 2022, DPL Inc. was prohibited from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries). Starting with the quarter ended September 30, 2021, the borrowing limit on the DPL Inc. Credit Agreement will be reduced by $5.0 million per quarter should the Total Debt to EBITDA ratio for the period of four consecutive quarters exceed 7.00 to 1.00. As of March 31, 2022, DPL Inc. exceeded this ratio and the borrowing limit was reduced from $100.0 million to $95.0 million. The AES Ohio Credit Agreement and Bond Purchase Agreement (financing document entered into in connection with the issuance of AES Ohio'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. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. As of March 31, 2022, AES Ohio was in compliance with this financial covenant. As of March 31, 2022, DPL and AES Ohio were in compliance with all debt covenants, including the financial covenants described above. AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc. Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage. |
Subsidiaries [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | Long-term Debt Long-term debt is as follows: Interest March 31, December 31, $ in millions Rate Maturity 2022 2021 First Mortgage Bonds 3.95 % 2049 $ 425.0 $ 425.0 First Mortgage Bonds 3.20 % 2040 140.0 140.0 U.S. Government note 4.20 % 2061 17.1 17.2 Unamortized deferred financing costs (5.3) (5.4) Unamortized debt discounts, net (2.5) (2.5) Total long-term debt 574.3 574.3 Less: current portion (0.2) (0.2) Long-term debt, net of current portion $ 574.1 $ 574.1 Line of credit As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings on its line of credit of $75.0 million and $0.0 million, respectively. Long-term debt covenants and restrictions The AES Ohio Credit Agreement and Bond Purchase Agreement (financing document entered into in connection with the issuance of AES Ohio'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. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. As of March 31, 2022, AES Ohio was in compliance with this financial covenant. As of March 31, 2022, AES Ohio was in compliance with all debt covenants, including the financial covenants described above. AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc. Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Entity Information [Line Items] | |
Income Taxes | Income Taxes DPL's provision for income taxes is based on the estimated annual effective tax rate, plus discrete items. The effective tax rate for the three months ended March 31, 2022 and 2021 was (31.6)% and (3.8)%, respectively. The year-to-date rate is different from the combined federal and state statutory rate of 22.1% primarily due to the flowthrough of the net tax benefit related to the reversal of excess deferred taxes of AES Ohio as a percentage of pre-tax book income. DPL's income tax expense for the three months ended March 31, 2022 was calculated using the estimated annual effective income tax rate for 2022 of (34.8)% on ordinary income. Management estimates the annual effective tax rate based on its forecast of annual pre-tax income or loss. 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. |
Subsidiaries [Member] | |
Entity Information [Line Items] | |
Income Taxes | Income Taxes AES Ohio's provision for income taxes is based on the estimated annual effective tax rate, plus discrete items. The effective tax rate for the three months ended March 31, 2022 and 2021 was 13.8% and 14.9%, respectively. The year-to-date rate is different from the combined federal and state statutory rate of 22.1% primarily due to the flowthrough of the net tax benefit related to the reversal of excess deferred taxes of AES Ohio as a percentage of pre-tax book income. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2022 | |
Subsidiaries [Member] | |
Stockholders' Equity Note Disclosure | Shareholder's Equity Capital Contribution and Returns of Capital During the three months ended March 31, 2022, AES Ohio made return of capital payments to DPL of $9.0 million . AES Ohio made return of capital payments, which were declared in 2020, to DPL of $10.0 million. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2022 | |
Pension [Member] | |
Entity Information [Line Items] | |
Pension and Postretirement Benefits | Benefit Plans AES Ohio sponsors a defined benefit pension plan for the majority of its employees. We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of ERISA and, in addition, make voluntary contributions from time to time. There were $7.5 million and $9.8 million in employer contributions during the three months ended March 31, 2022 and 2021, respectively. The amounts presented in the following tables for pension include the collective bargaining plan formula, the traditional management plan formula, the cash balance plan formula and the SERP, in the aggregate. The pension costs below have not been adjusted for amounts billed to the Service Company for former AES Ohio employees who are now employed by the Service Company or other AES affiliates that are still participants in the AES Ohio plan. The components of net periodic benefit costs other than service costs are included in Other income in the Condensed Consolidated Statements of Operations. The net periodic benefit cost of the pension benefit plans for the three months ended March 31, 2022 and 2021 was: Three months ended March 31, $ in millions 2022 2021 Service cost $ 1.3 $ 1.1 Interest cost 2.4 2.0 Expected return on plan assets (4.0) (3.7) Amortization of unrecognized: Prior service cost 0.2 0.2 Actuarial loss 1.4 2.3 Net periodic benefit cost $ 1.3 $ 1.9 In addition, AES Ohio provides postretirement health care and life insurance benefits to certain retired employees, their spouses and eligible dependents. 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 $8.8 million as of March 31, 2022 and $8.9 million as of December 31, 2021 were not material to the financial statements in the periods covered by this report. |
Subsidiaries [Member] | |
Entity Information [Line Items] | |
Pension and Postretirement Benefits | Benefit Plans AES Ohio sponsors a defined benefit pension plan for the majority of its employees. We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of ERISA and, in addition, make voluntary contributions from time to time. There were $7.5 million and $9.8 million in employer contributions during the three months ended March 31, 2022 and 2021, respectively. The amounts presented in the following tables for pension include the collective bargaining plan formula, the traditional management plan formula, the cash balance plan formula and the SERP, in the aggregate. The pension costs below have not been adjusted for amounts billed to the Service Company for former AES Ohio employees who are now employed by the Service Company or other AES affiliates or for amounts billed to AES Ohio Generation for former employees that were employed by AES Ohio Generation that are still participants in the AES Ohio plan. The components of net periodic benefit costs other than service costs are included in Other expense in the Condensed Statements of Operations. The net periodic benefit cost of the pension benefit plans for the three months ended March 31, 2022 and 2021 was: Three months ended March 31, $ in millions 2022 2021 Service cost $ 1.3 $ 1.1 Interest cost 2.4 2.0 Expected return on plan assets (4.0) (3.7) Amortization of unrecognized: Prior service cost 0.3 0.3 Actuarial loss 1.9 2.8 Net periodic benefit cost $ 1.9 $ 2.5 In addition, AES Ohio provides postretirement health care and life insurance benefits to certain retired employees, their spouses and eligible dependents. 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 $8.8 million as of March 31, 2022 and $8.9 million as of December 31, 2021 were not material to the financial statements in the periods covered by this report. |
Contractual Obligations, Commer
Contractual Obligations, Commercial Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Entity Information [Line Items] | |
Contractual Obligations, Commercial Commitments and Contingencies | Contractual Obligations, Commercial Commitments and Contingencies Equity Ownership Interest AES Ohio has a 4.9% equity ownership interest in OVEC, which is recorded using the cost method of accounting under GAAP. AES Ohio , along with several non-affiliated energy companies party to an OVEC arrangement, receive and pay for OVEC capacity and energy and are responsible for OVEC debt obligations and other fixed costs in proportion to their power participation ratios under the arrangement, which, for AES Ohio, is the same as its equity ownership interest. As of March 31, 2022, AES Ohio could be responsible for the repayment of 4.9%, or $54.8 million, of $1,118.8 million OVEC debt obligations if they came due, comprised of both fixed and variable rate securities with maturities from 2022 to 2040. OVEC could also seek additional contributions from AES Ohio to avoid a default in the event that other OVEC members defaulted on their respective OVEC obligations. Contingencies In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under various laws and regulations. We believe the amounts provided in our Condensed 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 discussed below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in our Condensed Consolidated Financial Statements. As such, costs, if any, that may be incurred in excess of those amounts provided as of March 31, 2022, cannot be reasonably determined. Environmental Matters DPL’s and AES Ohio’s current and previously-owned facilities and operations are subject to a wide range of federal, state and local environmental regulations and laws. The environmental issues that may affect us include: • The federal CAA and state laws and regulations (including State Implementation Plans) 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, federal, state and local environmental laws 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 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 several 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 and cash flows. We have several pending environmental matters associated with our previously-owned and operated coal-fired generation units. Some of these matters could have a material adverse effect on our results of operations, financial condition and cash flows. |
Subsidiaries [Member] | |
Entity Information [Line Items] | |
Contractual Obligations, Commercial Commitments and Contingencies | Contractual Obligations, Commercial Commitments and Contingencies Equity Ownership Interest AES Ohio has a 4.9% equity ownership interest in OVEC, which is recorded using the cost method of accounting under GAAP. AES Ohio , along with several non-affiliated energy companies party to an OVEC arrangement, receive and pay for OVEC capacity and energy and are responsible for OVEC debt obligations and other fixed costs in proportion to their power participation ratios under the arrangement, which, for AES Ohio, is the same as its equity ownership interest. As of March 31, 2022, AES Ohio could be responsible for the repayment of 4.9%, or $54.8 million, of $1,118.8 million OVEC debt obligations if they came due, comprised of both fixed and variable rate securities with maturities from 2022 to 2040. OVEC could also seek additional contributions from AES Ohio to avoid a default in the event that other OVEC members defaulted on their respective OVEC obligations. Contingencies In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under various laws and regulations. We believe the amounts provided in our Condensed 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 discussed below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in our Condensed Financial Statements. As such, costs, if any, that may be incurred in excess of those amounts provided as of March 31, 2022, cannot be reasonably determined. Environmental Matters AES Ohio’s current and previously-owned facilities and operations are subject to a wide range of federal, state and local environmental regulations and laws. The environmental issues that may affect us include: • The federal CAA and state laws and regulations (including State Implementation Plans) 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. In addition to imposing continuing compliance obligations, federal, state and local environmental laws 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 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 several 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 and cash flows. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2022 | |
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 segment. The Utility segment is discussed further below. Utility Segment The Utility segment is comprised of AES Ohio’s electric transmission and distribution businesses, which distribute electricity to residential, commercial, industrial and governmental customers. AES Ohio distributes electricity to approximately 535,000 retail customers located in a 6,000-square mile area of West Central Ohio. AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio applies the accounting standards for regulated operations to its electric transmission and distribution businesses recording 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. 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 on DPL's long-term debt as well as adjustments related to purchase accounting from the Merger. The accounting policies of the reportable segment are the same as those described in Note 1 – Overview and Summary of Significant Accounting Policies of our 10-K. 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 Utility reportable business segment: $ in millions Utility Other Adjustments and Eliminations DPL Consolidated Three months ended March 31, 2022 Revenues from external customers $ 196.8 $ 2.5 $ — $ 199.3 Intersegment revenues 0.2 0.9 (1.1) — Total revenues $ 197.0 $ 3.4 $ (1.1) $ 199.3 Depreciation and amortization $ 19.2 $ 0.3 $ — $ 19.5 Interest expense $ 5.9 $ 9.6 $ — $ 15.5 Income / (loss) from continuing operations before income tax $ 19.6 $ (7.9) $ — $ 11.7 $ in millions Utility Other Adjustments and Eliminations DPL Consolidated Three months ended March 31, 2021 Revenues from external customers $ 172.6 $ 2.6 $ — $ 175.2 Intersegment revenues 0.2 0.9 (1.1) — Total revenues $ 172.8 $ 3.5 $ (1.1) $ 175.2 Depreciation and amortization $ 18.7 $ 0.4 $ — $ 19.1 Interest expense $ 6.0 $ 9.6 $ — $ 15.6 Income / (loss) from continuing operations before income tax $ 21.5 $ (7.6) $ — $ 13.9 Total Assets March 31, 2022 December 31, 2021 Utility $ 2,175.7 $ 2,162.6 All Other (a) 14.0 9.2 DPL Consolidated $ 2,189.7 $ 2,171.8 |
Revenue (Notes)
Revenue (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
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 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. For further discussion of our Retail, Wholesale, RTO ancillary, and Capacity revenues, see Note 13 — Revenue in Item 8.— Financial Statements and Supplementary Data of our Form 10-K. DPL's revenue from contracts with customers was $197.7 million and $172.1 million for the three months ended March 31, 2022 and 2021, respectively. The following table presents our revenue from contracts with customers and other revenue by segment for the three months ended March 31, 2022 and 2021: $ in millions Utility Other Adjustments and Eliminations Total Three months ended March 31, 2022 Retail revenue Retail revenue from contracts with customers Residential revenue $ 109.9 $ — $ — $ 109.9 Commercial revenue 35.0 — — 35.0 Industrial revenue 16.9 — — 16.9 Governmental revenue 6.1 — — 6.1 Other (a) 2.9 — — 2.9 Total retail revenue from contracts with customers 170.8 — — 170.8 Wholesale revenue Wholesale revenue from contracts with customers 7.7 — (0.2) 7.5 RTO ancillary revenue 15.1 — — 15.1 Capacity revenue 1.8 — — 1.8 Miscellaneous revenue Miscellaneous revenue from contracts with customers (b) — 2.5 — 2.5 Other miscellaneous revenue 1.6 0.9 (0.9) 1.6 Total revenues $ 197.0 $ 3.4 $ (1.1) $ 199.3 Three months ended March 31, 2021 Retail revenue Retail revenue from contracts with customers Residential revenue $ 98.3 $ — $ — $ 98.3 Commercial revenue 27.3 — — 27.3 Industrial revenue 12.3 — — 12.3 Governmental revenue 7.4 — — 7.4 Other (a) 3.7 — — 3.7 Total retail revenue from contracts with customers 149.0 — — 149.0 Wholesale revenue Wholesale revenue from contracts with customers 5.0 — (0.2) 4.8 RTO ancillary revenue 14.8 0.1 — 14.9 Capacity revenue 0.9 — — 0.9 Miscellaneous revenue Miscellaneous revenue from contracts with customers (b) — 2.5 — 2.5 Other miscellaneous revenue 3.1 0.9 (0.9) 3.1 Total revenues $ 172.8 $ 3.5 $ (1.1) $ 175.2 (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) 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 $64.4 million and $61.5 million as of March 31, 2022 and December 31, 2021, respectively. Payment terms for all receivables from contracts with customers are typically within 30 days, though, as a result of COVID-19, AES Ohio began offering expanded payment arrangements for customers. |
Subsidiaries [Member] | |
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 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. For further discussion of our Retail, Wholesale, RTO ancillary, and Capacity revenues, see Note 12 — Revenue in Item 8.— Financial Statements and Supplementary Data of our Form 10-K. AES Ohio's revenue from contracts with customers was $195.4 million and $169.7 million for the three months ended March 31, 2022 and 2021, respectively. The following table presents our revenue from contracts with customers and other revenue for the three months ended March 31, 2022 and 2021: Three months ended March 31, $ in millions 2022 2021 Retail revenue Retail revenue from contracts with customers Residential revenue $ 109.9 $ 98.3 Commercial revenue 35.0 27.3 Industrial revenue 16.9 12.3 Governmental revenue 6.1 7.4 Other (a) 2.9 3.7 Total retail revenue from contracts with customers 170.8 149.0 Wholesale revenue Wholesale revenue from contracts with customers 7.7 5.0 RTO ancillary revenue 15.1 14.8 Capacity revenue 1.8 0.9 Miscellaneous revenue 1.6 3.1 Total revenues $ 197.0 $ 172.8 (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. The balances of receivables from contracts with customers were $63.5 million and $60.8 million as of March 31, 2022 and December 31, 2021, respectively. Payment terms for all receivables from contracts with customers are typically within 30 days, though, as a result of COVID-19, AES Ohio began offering expanded payment arrangements for customers. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
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. For the transaction, DPL will make quarterly cash expenditures, totaling $4.0 million, through July 2022, of which $3.8 million has been paid through March 31, 2022. The transfer of Conesville Unit 4 was the last step in DPL's plan to exit its AES Ohio Generation business operations. DPL determined that the transfer of Conesville and the previous transfers and sales of other AES Ohio Generation assets 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 qualified to be presented as discontinued operations. Therefore, the results of operations of this group of components have been reported as such in the Condensed Consolidated Statements of Operations for the period indicated below. The following table summarizes the revenues, operating costs, other expenses and income tax of discontinued operations for the period indicated: Three months ended March 31, $ in millions 2021 Revenues $ 0.9 Operating costs and other expenses (1.7) Loss from discontinued operations before income tax (0.8) Income tax expense / (benefit) from discontinued operations (0.2) Net income / (loss) from discontinued operations $ (0.6) Cash flows related to discontinued operations are included in our Condensed Consolidated Statements of Cash Flows. For the three months ended March 31, 2021, cash flows from operating activities for discontinued operations and cash flows from investing activities for discontinued operations were $(0.2) million and $(0.4) million, respectively. |
Risk & Uncertainties (Notes)
Risk & Uncertainties (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Unusual Risk or Uncertainty [Line Items] | |
Risks and Uncertainties [Text Block] | Risks and Uncertainties COVID-19 Pandemic The COVID-19 pandemic has impacted global economic activity, including electricity and energy consumption, and caused significant volatility in financial markets. Social distancing measures designed to slow the spread of the virus, such as business closures and operations limitations, impact energy demand within our service territory. We continue to take 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. The 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. |
Subsidiaries [Member] | |
Unusual Risk or Uncertainty [Line Items] | |
Risks and Uncertainties [Text Block] | Risks and Uncertainties COVID-19 Pandemic The COVID-19 pandemic has impacted global economic activity, including electricity and energy consumption, and caused significant volatility in financial markets. Social distancing measures designed to slow the spread of the virus, such as business closures and operations limitations, impact energy demand within our service territory. We continue to take 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. The 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2022 | |
Significant Accounting Policies [Line Items] | |
Inventory, Policy | Inventories Inventories consist of materials and supplies as of March 31, 2022 and December 31, 2021. |
Description of Business | Description of Business DPL is a regional energy company organized in 1985 under the laws of Ohio. DPL has one reportable segment, the Utility segment. See Note 9 – Business Segments for more information relating to this reportable segment. The terms “we,” “us,” “our” and “ours” are used to refer to DPL and its subsidiaries. DPL is an indirectly wholly-owned subsidiary of AES. DP&L , a wholly-owned subsidiary of DPL that does business as AES Ohio , is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, retail transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such transmission and distribution services to approximately 535,000 customers located in West Central Ohio. Additionally, AES Ohio provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000-square mile area of West Central Ohio. AES Ohio sources all of the generation for its SSO customers through a competitive bid process. Principal industries located in AES Ohio’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. AES Ohio's sales reflect the general economic conditions, seasonal weather patterns of the area, the market price of electricity and customer energy efficiency initiatives. AES Ohio owns numerous transmission facilities. AES Ohio sells its proportional share of energy and capacity from its investment in OVEC into the wholesale market. DPL’s other primary subsidiaries are MVIC and Miami Valley Lighting. MVIC is our captive insurance company that provides insurance services to AES Ohio 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. AES Ohio Generation retired its only remaining operating asset in May 2020 and sold it in June 2020. See Note 11 – Discontinued Operations for more information. DPL's subsidiaries are all 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. AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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. |
Financial Statement Presentation | Financial Statement Presentation DPL’s Condensed 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. Certain immaterial amounts from prior periods have been reclassified to conform to the current period presentation. All material intercompany accounts and transactions are eliminated in consolidation. We have evaluated subsequent events through the date this report is issued. These financial statements have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial statements and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. Therefore, our interim financial statements in this report should be read along with the annual financial statements included in our Form 10-K for the fiscal year ended December 31, 2021. In the opinion of our management, the Condensed Consolidated Financial Statements presented in this report contain all adjustments necessary to fairly state our financial position as of March 31, 2022; our results of operations for the three months ended March 31, 2022 and 2021, our cash flows for the three months ended March 31, 2022 and 2021 and the changes in our equity for the three months ended March 31, 2022 and 2021. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three months ended March 31, 2022 may not be indicative of our results that will be realized for the full year ending December 31, 2022. 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: recognition of revenue including unbilled revenues; the carrying value of property, plant and equipment; the valuation of insurance and claims liabilities; the valuation of allowances for credit losses and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits. |
Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities | AES Ohio collects certain excise taxes levied by state or local governments from its customers. These taxes are accounted for on a net basis and not included in revenue. The amounts of such taxes collected for the three months ended March 31, 2022 and 2021 were as follows: Three months ended March 31, $ in millions 2022 2021 Excise taxes collected $ 13.1 $ 12.9 |
Recently Issued Accounting Standards | New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted 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. ASU Number and Name Description Date of Adoption Effect on the financial statements upon adoption 2020-04 and 2021-01, Reference Rate Form (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in these updates provide 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, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts. Effective for all entities as of March 12, 2020 through December 31, 2022 We are implementing the reference rate reform and do not expect these amendments to have a material impact on our consolidated financial statements. See Implementation for further details. |
Subsidiaries [Member] | |
Significant Accounting Policies [Line Items] | |
Description of Business | Description of Business DP&L , which does business as AES Ohio , is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, retail transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such transmission and distribution services to approximately 535,000 customers located in West Central Ohio. Additionally, AES Ohio provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000-square mile area of West Central Ohio. AES Ohio sources all of the generation for its SSO customers through a competitive bid process. Principal industries located in AES Ohio’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. AES Ohio's sales reflect the general economic conditions, seasonal weather patterns of the area, the market price of electricity and customer energy efficiency initiatives. AES Ohio owns numerous transmission facilities. AES Ohio sells its proportional share of energy and capacity from its investment in OVEC into the wholesale market. AES Ohio has one reportable segment, the Utility segment. In addition to AES Ohio's electric transmission and distribution businesses, the Utility segment includes revenues and costs associated with AES Ohio's investment in OVEC. AES Ohio is a subsidiary of DPL. The terms “we,” “us,” “our” and “ours” are used to refer to AES Ohio . AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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. |
Financial Statement Presentation | Financial Statement Presentation AES Ohio does not have any subsidiaries. We have evaluated subsequent events through the date this report is issued. Certain immaterial amounts from prior periods have been reclassified to conform to the current period presentation. These financial statements have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial statements and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. Therefore, our interim financial statements in this report should be read along with the annual financial statements included in our Form 10-K for the fiscal year ended December 31, 2021. In the opinion of our management, the Condensed Financial Statements presented in this report contain all adjustments necessary to fairly state our financial position as of March 31, 2022; our results of operations for the three months ended March 31, 2022 and 2021, our cash flows for the three months ended March 31, 2022 and 2021 and the changes in our equity for the three months ended March 31, 2022 and 2021. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three months ended March 31, 2022 may not be indicative of our results that will be realized for the full year ending December 31, 2022. 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: recognition of revenue including unbilled revenues; the carrying value of property, plant and equipment; the valuation of insurance and claims liabilities; the valuation of allowances for credit losses and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits. |
Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities | AES Ohio collects certain excise taxes levied by state or local governments from its customers. These taxes are accounted for on a net basis and not included in revenue. The amounts of such taxes collected for the three months ended March 31, 2022 and 2021 were as follows: Three months ended March 31, $ in millions 2022 2021 Excise taxes collected $ 13.1 $ 12.9 |
Recently Issued Accounting Standards | New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted did not have a material impact on our financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transaction [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the components of Accumulated other comprehensive loss during the three months ended March 31, 2022 are as follows: $ in millions Change in cash flow hedges Change in unfunded pension and postretirement benefit obligations Total Balance as of January 1, 2022 $ 12.8 $ (17.6) $ (4.8) Amounts reclassified from AOCL to earnings (0.1) 0.2 0.1 Net current period other comprehensive income / (loss) (0.1) 0.2 0.1 Balance as of March 31, 2022 $ 12.7 $ (17.4) $ (4.7) |
Reclassification out of Accumulated Other Comprehensive Income | The amounts reclassified out of Accumulated other comprehensive loss by component during the three months ended March 31, 2022 and 2021 are as follows: Details about Accumulated Other Comprehensive Loss components Affected line item in the Condensed Consolidated Statements of Operations Three months ended March 31, $ in millions 2022 2021 Net gains on cash flow hedges (Note 4): Interest expense $ (0.2) $ (0.2) Income tax expense 0.1 — Net of income taxes (0.1) (0.2) Amortization of defined benefit pension items (Note 7): Other expense 0.3 0.6 Income tax benefit (0.1) (0.1) Net of income taxes 0.2 0.5 Total reclassifications for the period, net of income taxes $ 0.1 $ 0.3 |
Schedule of Supplemental Financial Information | Accounts receivable were as follows as of March 31, 2022 and December 31, 2021: March 31, December 31, $ in millions 2022 2021 Accounts receivable, net: Customer receivables $ 47.4 $ 42.3 Unbilled revenue 17.0 19.2 Amounts due from affiliates 3.7 3.1 Due from PJM transmission enhancement settlement 1.7 1.7 Other 4.3 5.5 Allowance for credit losses (0.2) (0.3) Total accounts receivable, net $ 73.9 $ 71.5 |
Accounts Receivable, Allowance for Credit Loss | The following table is a roll forward of our allowance for credit losses related to the accounts receivable balances for the three months ended March 31, 2022 and 2021: $ in millions Beginning Allowance Balance Current Period Provision Write-offs Charged Against Allowances Recoveries Collected Ending Allowance Balance 2022 $ 0.3 $ (0.1) $ (0.2) $ 0.2 $ 0.2 2021 $ 2.8 $ — $ (0.7) $ 0.2 $ 2.3 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 are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of March 31, 2022. Amounts are written off when reasonable collections efforts have been exhausted. During 2021, the current period provision and allowance for credit losses have decreased due to lower past due customer receivable balances. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted 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. ASU Number and Name Description Date of Adoption Effect on the financial statements upon adoption 2020-04 and 2021-01, Reference Rate Form (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in these updates provide 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, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts. Effective for all entities as of March 12, 2020 through December 31, 2022 We are implementing the reference rate reform and do not expect these amendments to have a material impact on our consolidated financial statements. See Implementation for further details. |
Schedule of Cash and Cash Equivalents [Table Text Block] | The following table provides a summary of cash, cash equivalents, and restricted cash amounts reported on the Condensed Consolidated Balance Sheets that reconcile to the total of such amounts as shown on the Condensed Consolidated Statements of Cash Flows: $ in millions March 31, 2022 December 31, 2021 Cash and cash equivalents $ 32.1 $ 26.6 Restricted cash (included in Prepayments and other current assets) 0.1 0.1 Cash, Cash Equivalents, and Restricted Cash, End of Period $ 32.2 $ 26.7 |
Schedule of New Accounting Pronouncements | 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. ASU Number and Name Description Date of Adoption Effect on the financial statements upon adoption 2020-04 and 2021-01, Reference Rate Form (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in these updates provide 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, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts. Effective for all entities as of March 12, 2020 through December 31, 2022 We are implementing the reference rate reform and do not expect these amendments to have a material impact on our consolidated financial statements. See Implementation for further details. |
Subsidiaries [Member] | |
Related Party Transaction [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the components of Accumulated other comprehensive loss during the three months ended March 31, 2022 are as follows: $ in millions Change in Accumulated other comprehensive loss Balance as of January 1, 2022 $ (31.8) Amounts reclassified from AOCL to earnings 0.7 Net current period other comprehensive income 0.7 Balance as of March 31, 2022 $ (31.1) |
Reclassification out of Accumulated Other Comprehensive Income | The amounts reclassified out of Accumulated other comprehensive loss by component during the three months ended March 31, 2022 and 2021 are as follows: Details about Accumulated Other Comprehensive Loss components Affected line item in the Condensed Consolidated Statements of Operations Three months ended March 31, $ in millions 2022 2021 Amortization of defined benefit pension items (Note 6): Other expense 0.9 1.3 Income tax benefit (0.2) (0.3) Net of income taxes 0.7 1.0 Total reclassifications for the period, net of income taxes $ 0.7 $ 1.0 |
Schedule of Supplemental Financial Information | Accounts receivable were as follows as of March 31, 2022 and December 31, 2021: March 31, December 31, $ in millions 2022 2021 Accounts receivable, net: Customer receivables 46.5 $ 41.6 Unbilled revenue 17.0 19.2 Amounts due from affiliates 4.3 4.4 Due from PJM transmission enhancement settlement 1.7 1.7 Other 4.3 5.3 Allowance for credit losses (0.2) (0.3) Total accounts receivable, net $ 73.6 $ 71.9 |
Accounts Receivable, Allowance for Credit Loss | The following table is a roll forward of our allowance for credit losses related to the accounts receivable balances for the three months ended March 31, 2022 and 2021: $ in millions Beginning Allowance Balance Current Period Provision Write-offs Charged Against Allowances Recoveries Collected Ending Allowance Balance 2022 $ 0.3 $ (0.1) $ (0.2) $ 0.2 $ 0.2 2021 $ 2.8 $ — $ (0.7) $ 0.2 $ 2.3 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 are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of March 31, 2022. Amounts are written off when reasonable collections efforts have been exhausted. During 2021, the current period provision and allowance for credit losses have decreased due to lower past due customer receivable balances. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted did not have a material impact on our financial statements. |
Schedule of Cash and Cash Equivalents [Table Text Block] | The following table provides a summary of cash, cash equivalents, and restricted cash amounts reported on the Condensed Balance Sheets that reconcile to the total of such amounts as shown on the Condensed Statements of Cash Flows: $ in millions March 31, 2022 December 31, 2021 Cash and cash equivalents $ 17.9 $ 14.4 Restricted cash (included in Prepayments and other current assets) 0.1 0.1 Cash, Cash Equivalents, and Restricted Cash, End of Period $ 18.0 $ 14.5 |
Schedule of New Accounting Pronouncements | 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 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 financial statements. ASU Number and Name Description Date of Adoption Effect on the financial statements upon adoption 2020-04 and 2021-01, Reference Rate Form (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in these updates provide 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, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts. Effective for all entities as of March 12, 2020 through December 31, 2022 We are implementing the reference rate reform and do not expect these amendments to have a material impact on our financial statements. See Implementation for further details. |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value and Cost Of Non-Derivative Instruments | The following table presents the fair value, carrying value and cost of our non-derivative instruments as of March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 $ in millions Cost Fair Value Cost Fair Value Assets Money market funds $ 0.4 $ 0.4 $ 0.4 $ 0.4 Equity securities 1.9 4.5 1.9 5.1 Debt securities 3.7 3.5 3.8 3.9 Total $ 6.0 $ 8.4 $ 6.1 $ 9.4 Carrying Value Fair Value Carrying Value Fair Value Liabilities Long-term debt $ 1,396.0 $ 1,403.7 $ 1,395.5 $ 1,519.7 |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The fair value of assets and liabilities as of March 31, 2022 and December 31, 2021 and the respective category within the fair value hierarchy for DPL is as follows: $ in millions Fair value as of March 31, 2022 (a) Fair value as of December 31, 2021 (a) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Master Trust assets Money market funds $ 0.4 $ — $ — $ 0.4 $ 0.4 $ — $ — $ 0.4 Equity securities — 4.5 — 4.5 — 5.1 — 5.1 Debt securities — 3.5 — 3.5 — 3.9 — 3.9 Total assets $ 0.4 $ 8.0 $ — $ 8.4 $ 0.4 $ 9.0 $ — $ 9.4 Liabilities Long-term debt $ — $ 1,386.6 $ 17.1 $ 1,403.7 $ — $ 1,502.5 $ 17.2 $ 1,519.7 Total Liabilities $ — $ 1,386.6 $ 17.1 $ 1,403.7 $ — $ 1,502.5 $ 17.2 $ 1,519.7 (a) Includes credit valuation adjustment |
Subsidiaries [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value and Cost Of Non-Derivative Instruments | The following table presents the fair value, carrying value and cost of our non-derivative instruments as of March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 $ in millions Cost Fair Value Cost Fair Value Assets Money market funds $ 0.4 $ 0.4 $ 0.4 $ 0.4 Equity securities 1.9 4.5 1.9 5.1 Debt securities 3.7 3.5 3.8 3.9 Total $ 6.0 $ 8.4 $ 6.1 $ 9.4 Carrying Value Fair Value Carrying Value Fair Value Liabilities Long-term debt $ 574.3 $ 582.8 $ 574.3 $ 642.6 |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The fair value of assets and liabilities as of March 31, 2022 and December 31, 2021 and the respective category within the fair value hierarchy for AES Ohio is as follows: $ in millions Fair value as of March 31, 2022 (a) Fair value as of December 31, 2021 (a) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Master Trust assets Money market funds $ 0.4 $ — $ — $ 0.4 $ 0.4 $ — $ — $ 0.4 Equity securities — 4.5 — 4.5 — 5.1 — 5.1 Debt securities — 3.5 — 3.5 — 3.9 — 3.9 Total assets $ 0.4 $ 8.0 $ — $ 8.4 $ 0.4 $ 9.0 $ — $ 9.4 Liabilities Long-term debt $ — $ 565.7 $ 17.1 $ 582.8 $ — $ 625.4 $ 17.2 $ 642.6 Total Liabilities $ — $ 565.7 $ 17.1 $ 582.8 $ — $ 625.4 $ 17.2 $ 642.6 (a) Includes credit valuation adjustment |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Gains or Losses Recognized in AOCI for the Cash Flow Hedges | The following tables provide information concerning gains recognized in AOCL for the cash flow hedges for the three months ended March 31, 2022 and 2021: Three months ended March 31, 2022 March 31, 2021 Interest Interest $ in millions (net of tax) Rate Hedge Rate Hedge Beginning accumulated derivative gains in AOCL $ 12.8 $ 13.6 Net gains reclassified to earnings Interest expense (0.1) (0.2) Ending accumulated derivative gains in AOCL $ 12.7 $ 13.4 Portion expected to be reclassified to earnings in the next twelve months $ (0.8) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Instrument [Line Items] | |
Long-term Debt | Long-term Debt Long-term debt is as follows: Interest March 31, December 31, $ in millions Rate Maturity 2022 2021 First Mortgage Bonds 3.95% 2049 $ 425.0 $ 425.0 First Mortgage Bonds 3.20% 2040 140.0 140.0 U.S. Government note 4.20% 2061 17.1 17.2 Unamortized deferred financing costs (5.3) (5.4) Unamortized debt discounts, net (2.5) (2.5) Total long-term debt at AES Ohio 574.3 574.3 Senior unsecured bonds 4.125% 2025 415.0 415.0 Senior unsecured bonds 4.35% 2029 400.0 400.0 Note to DPL Capital Trust II (a) 8.125% 2031 15.6 15.6 Unamortized deferred financing costs (8.1) (8.6) Unamortized debt discounts, net (0.8) (0.8) Total long-term debt 1,396.0 1,395.5 Less: current portion (0.2) (0.2) Long-term debt, net of current portion $ 1,395.8 $ 1,395.3 (a) Note payable to related party. Lines of credit As of March 31, 2022 and December 31, 2021, the DPL Credit Agreement had outstanding borrowings of $65.0 million and $65.0 million, respectively. As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings of $75.0 million and $0.0 million, respectively. Significant transactions DPL Inc. agreed to register the 2025 DPL Inc. Senior Unsecured Bonds under the Securities Act by filing an exchange offer registration statement or, under specified circumstances, a shelf registration statement with the SEC pursuant to a Registration Rights Agreement dated June 19, 2020. DPL Inc. filed a registration statement on Form S-4 with respect to the 2025 DPL Inc. Senior Unsecured Bonds with the SEC on March 15, 2021, and this registration statement was declared effective on March 31, 2021. The exchange offer closed on May 5, 2021. Long-term debt covenants and restrictions The DPL 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 March 31, 2022, DPL was in compliance with this financial covenant. 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 March 31, 2022, DPL Inc. was in compliance with this financial covenant. The DPL Credit Agreement also restricts dividend payments from DPL Inc. to AES, such that DPL cannot make dividend payments unless at the time of, and/or as a result of the distribution, (i) DPL Inc.’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 March 31, 2022, DPL Inc. was prohibited from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries). Starting with the quarter ended September 30, 2021, the borrowing limit on the DPL Inc. Credit Agreement will be reduced by $5.0 million per quarter should the Total Debt to EBITDA ratio for the period of four consecutive quarters exceed 7.00 to 1.00. As of March 31, 2022, DPL Inc. exceeded this ratio and the borrowing limit was reduced from $100.0 million to $95.0 million. The AES Ohio Credit Agreement and Bond Purchase Agreement (financing document entered into in connection with the issuance of AES Ohio'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. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. As of March 31, 2022, AES Ohio was in compliance with this financial covenant. As of March 31, 2022, DPL and AES Ohio were in compliance with all debt covenants, including the financial covenants described above. AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc. Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage. |
Schedule of Long-term Debt Instruments | Long-term debt is as follows: Interest March 31, December 31, $ in millions Rate Maturity 2022 2021 First Mortgage Bonds 3.95% 2049 $ 425.0 $ 425.0 First Mortgage Bonds 3.20% 2040 140.0 140.0 U.S. Government note 4.20% 2061 17.1 17.2 Unamortized deferred financing costs (5.3) (5.4) Unamortized debt discounts, net (2.5) (2.5) Total long-term debt at AES Ohio 574.3 574.3 Senior unsecured bonds 4.125% 2025 415.0 415.0 Senior unsecured bonds 4.35% 2029 400.0 400.0 Note to DPL Capital Trust II (a) 8.125% 2031 15.6 15.6 Unamortized deferred financing costs (8.1) (8.6) Unamortized debt discounts, net (0.8) (0.8) Total long-term debt 1,396.0 1,395.5 Less: current portion (0.2) (0.2) Long-term debt, net of current portion $ 1,395.8 $ 1,395.3 (a) Note payable to related party. |
Subsidiaries [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt | Long-term Debt Long-term debt is as follows: Interest March 31, December 31, $ in millions Rate Maturity 2022 2021 First Mortgage Bonds 3.95 % 2049 $ 425.0 $ 425.0 First Mortgage Bonds 3.20 % 2040 140.0 140.0 U.S. Government note 4.20 % 2061 17.1 17.2 Unamortized deferred financing costs (5.3) (5.4) Unamortized debt discounts, net (2.5) (2.5) Total long-term debt 574.3 574.3 Less: current portion (0.2) (0.2) Long-term debt, net of current portion $ 574.1 $ 574.1 Line of credit As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings on its line of credit of $75.0 million and $0.0 million, respectively. Long-term debt covenants and restrictions The AES Ohio Credit Agreement and Bond Purchase Agreement (financing document entered into in connection with the issuance of AES Ohio'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. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. As of March 31, 2022, AES Ohio was in compliance with this financial covenant. As of March 31, 2022, AES Ohio was in compliance with all debt covenants, including the financial covenants described above. AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc. Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage. |
Schedule of Long-term Debt Instruments | Long-term debt is as follows: Interest March 31, December 31, $ in millions Rate Maturity 2022 2021 First Mortgage Bonds 3.95 % 2049 $ 425.0 $ 425.0 First Mortgage Bonds 3.20 % 2040 140.0 140.0 U.S. Government note 4.20 % 2061 17.1 17.2 Unamortized deferred financing costs (5.3) (5.4) Unamortized debt discounts, net (2.5) (2.5) Total long-term debt 574.3 574.3 Less: current portion (0.2) (0.2) Long-term debt, net of current portion $ 574.1 $ 574.1 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Entity Information [Line Items] | |
Schedule of Net Periodic Benefit Cost / (Income) | The net periodic benefit cost of the pension benefit plans for the three months ended March 31, 2022 and 2021 was: Three months ended March 31, $ in millions 2022 2021 Service cost $ 1.3 $ 1.1 Interest cost 2.4 2.0 Expected return on plan assets (4.0) (3.7) Amortization of unrecognized: Prior service cost 0.2 0.2 Actuarial loss 1.4 2.3 Net periodic benefit cost $ 1.3 $ 1.9 |
Subsidiaries [Member] | |
Entity Information [Line Items] | |
Schedule of Net Periodic Benefit Cost / (Income) | The net periodic benefit cost of the pension benefit plans for the three months ended March 31, 2022 and 2021 was: Three months ended March 31, $ in millions 2022 2021 Service cost $ 1.3 $ 1.1 Interest cost 2.4 2.0 Expected return on plan assets (4.0) (3.7) Amortization of unrecognized: Prior service cost 0.3 0.3 Actuarial loss 1.9 2.8 Net periodic benefit cost $ 1.9 $ 2.5 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | |
Financial Reporting for Reportable Business Segments | The following tables present financial information for DPL’s Utility reportable business segment: $ in millions Utility Other Adjustments and Eliminations DPL Consolidated Three months ended March 31, 2022 Revenues from external customers $ 196.8 $ 2.5 $ — $ 199.3 Intersegment revenues 0.2 0.9 (1.1) — Total revenues $ 197.0 $ 3.4 $ (1.1) $ 199.3 Depreciation and amortization $ 19.2 $ 0.3 $ — $ 19.5 Interest expense $ 5.9 $ 9.6 $ — $ 15.5 Income / (loss) from continuing operations before income tax $ 19.6 $ (7.9) $ — $ 11.7 $ in millions Utility Other Adjustments and Eliminations DPL Consolidated Three months ended March 31, 2021 Revenues from external customers $ 172.6 $ 2.6 $ — $ 175.2 Intersegment revenues 0.2 0.9 (1.1) — Total revenues $ 172.8 $ 3.5 $ (1.1) $ 175.2 Depreciation and amortization $ 18.7 $ 0.4 $ — $ 19.1 Interest expense $ 6.0 $ 9.6 $ — $ 15.6 Income / (loss) from continuing operations before income tax $ 21.5 $ (7.6) $ — $ 13.9 Total Assets March 31, 2022 December 31, 2021 Utility $ 2,175.7 $ 2,162.6 All Other (a) 14.0 9.2 DPL Consolidated $ 2,189.7 $ 2,171.8 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Disaggregation of Revenue [Table Text Block] | The following table presents our revenue from contracts with customers and other revenue by segment for the three months ended March 31, 2022 and 2021: $ in millions Utility Other Adjustments and Eliminations Total Three months ended March 31, 2022 Retail revenue Retail revenue from contracts with customers Residential revenue $ 109.9 $ — $ — $ 109.9 Commercial revenue 35.0 — — 35.0 Industrial revenue 16.9 — — 16.9 Governmental revenue 6.1 — — 6.1 Other (a) 2.9 — — 2.9 Total retail revenue from contracts with customers 170.8 — — 170.8 Wholesale revenue Wholesale revenue from contracts with customers 7.7 — (0.2) 7.5 RTO ancillary revenue 15.1 — — 15.1 Capacity revenue 1.8 — — 1.8 Miscellaneous revenue Miscellaneous revenue from contracts with customers (b) — 2.5 — 2.5 Other miscellaneous revenue 1.6 0.9 (0.9) 1.6 Total revenues $ 197.0 $ 3.4 $ (1.1) $ 199.3 Three months ended March 31, 2021 Retail revenue Retail revenue from contracts with customers Residential revenue $ 98.3 $ — $ — $ 98.3 Commercial revenue 27.3 — — 27.3 Industrial revenue 12.3 — — 12.3 Governmental revenue 7.4 — — 7.4 Other (a) 3.7 — — 3.7 Total retail revenue from contracts with customers 149.0 — — 149.0 Wholesale revenue Wholesale revenue from contracts with customers 5.0 — (0.2) 4.8 RTO ancillary revenue 14.8 0.1 — 14.9 Capacity revenue 0.9 — — 0.9 Miscellaneous revenue Miscellaneous revenue from contracts with customers (b) — 2.5 — 2.5 Other miscellaneous revenue 3.1 0.9 (0.9) 3.1 Total revenues $ 172.8 $ 3.5 $ (1.1) $ 175.2 (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) Miscellaneous revenue from contracts with customers primarily includes revenues for various services provided by Miami Valley Lighting. |
Subsidiaries [Member] | |
Disaggregation of Revenue [Table Text Block] | The following table presents our revenue from contracts with customers and other revenue for the three months ended March 31, 2022 and 2021: Three months ended March 31, $ in millions 2022 2021 Retail revenue Retail revenue from contracts with customers Residential revenue $ 109.9 $ 98.3 Commercial revenue 35.0 27.3 Industrial revenue 16.9 12.3 Governmental revenue 6.1 7.4 Other (a) 2.9 3.7 Total retail revenue from contracts with customers 170.8 149.0 Wholesale revenue Wholesale revenue from contracts with customers 7.7 5.0 RTO ancillary revenue 15.1 14.8 Capacity revenue 1.8 0.9 Miscellaneous revenue 1.6 3.1 Total revenues $ 197.0 $ 172.8 (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. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table summarizes the revenues, operating costs, other expenses and income tax of discontinued operations for the period indicated: Three months ended March 31, $ in millions 2021 Revenues $ 0.9 Operating costs and other expenses (1.7) Loss from discontinued operations before income tax (0.8) Income tax expense / (benefit) from discontinued operations (0.2) Net income / (loss) from discontinued operations $ (0.6) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022USD ($)mi²customersegment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Cash and Cash Equivalents, at Carrying Value | $ 32.1 | $ 26.6 | ||
Restricted Cash | 0.1 | 0.1 | ||
Excise taxes collected | 13.1 | $ 12.9 | ||
Restricted Cash and Cash Equivalents | 32.2 | 34.2 | 26.7 | $ 25.5 |
Customer receivables | 47.4 | 42.3 | ||
Unbilled Revenue | 17 | 19.2 | ||
Amounts due from partners in jointly owned stations | 3.7 | 3.1 | ||
Due from PJM transmission settlement | 1.7 | 1.7 | ||
Other | 4.3 | 5.5 | ||
Accounts Receivable, Allowance for Credit Loss | (0.2) | (0.3) | ||
Accounts receivable, net | 73.9 | 71.5 | ||
Accounts Receivable, Allowance for Credit Loss, Current | 0.2 | 2.3 | 0.3 | 2.8 |
Accounts Receivable, Credit Loss Expense (Reversal) | (0.1) | 0 | ||
Accounts Receivable, Allowance for Credit Loss, Writeoff | (0.2) | (0.7) | ||
Accounts Receivable, Allowance for Credit Loss, Recovery | 0.2 | 0.2 | ||
Interest and Debt Expense | (15.5) | (15.6) | ||
Income Tax Expense (Benefit) | 3.7 | 0.3 | ||
Net income | 15.4 | 13.6 | ||
Nonoperating Income (Expense) | (15.1) | (15.1) | ||
Income tax benefit from discontinued operations | 0 | (0.2) | ||
Accumulated other comprehensive income | (4.7) | (4.8) | ||
Other Comprehensive Income (Loss), Net of Tax | 0.1 | 0.3 | ||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (0.1) | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (0.1) | (0.2) | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Transition Asset (Obligation), Reclassification Adjustment from AOCI, after Tax | 0.2 | 0.5 | ||
Income tax (expense)/benefit on reclassification of earnings related to derivative activity | 0.1 | 0 | ||
Contract with Customer, Asset, before Allowance for Credit Loss | 64.4 | 61.5 | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Accumulated other comprehensive income | 12.7 | 12.8 | ||
Other Comprehensive Income (Loss), Net of Tax | (0.1) | |||
Change in unfunded pension obligation [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Accumulated other comprehensive income | (17.4) | (17.6) | ||
Other Comprehensive Income (Loss), Net of Tax | 0.2 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Net income | 0.1 | 0.3 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Interest and Debt Expense | (0.2) | (0.2) | ||
Income Tax Expense (Benefit) | 0 | |||
Net income | (0.2) | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Change in unfunded pension obligation [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Income Tax Expense (Benefit) | (0.1) | |||
Net income | 0.5 | |||
Nonoperating Income (Expense) | $ 0.3 | 0.6 | ||
Subsidiaries [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Cash and Cash Equivalents, at Carrying Value | $ 17.9 | 14.4 | ||
Restricted Cash | $ 0.1 | 0.1 | ||
Approximate number of retail customers | customer | 535,000 | |||
Service area, square miles | mi² | 6,000 | |||
Number of Operating Segments | segment | 1 | |||
Excise taxes collected | $ 13.1 | 12.9 | ||
Restricted Cash and Cash Equivalents | 18 | 16.9 | 14.5 | 11.8 |
Customer receivables | 46.5 | 41.6 | ||
Unbilled Revenue | 17 | 19.2 | ||
Amounts due from partners in jointly owned stations | 4.3 | 4.4 | ||
Due from PJM transmission settlement | 1.7 | 1.7 | ||
Other | 4.3 | 5.3 | ||
Accounts Receivable, Allowance for Credit Loss | (0.2) | (0.3) | ||
Accounts receivable, net | 73.6 | 71.9 | ||
Accounts Receivable, Allowance for Credit Loss, Current | 0.2 | 2.3 | 0.3 | $ 2.8 |
Accounts Receivable, Credit Loss Expense (Reversal) | (0.1) | 0 | ||
Accounts Receivable, Allowance for Credit Loss, Writeoff | 0.2 | 0.7 | ||
Interest and Debt Expense | (5.9) | (6) | ||
Income Tax Expense (Benefit) | (2.7) | (3.2) | ||
Net income | 16.9 | 18.3 | ||
Nonoperating Income (Expense) | (6.2) | (6.1) | ||
Accumulated other comprehensive income | (31.1) | (31.8) | ||
Other Comprehensive Income (Loss), Net of Tax | 0.7 | 1 | ||
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | (0.7) | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Transition Asset (Obligation), Reclassification Adjustment from AOCI, after Tax | 0.7 | 1 | ||
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity | (0.2) | (0.3) | ||
Contract with Customer, Asset, before Allowance for Credit Loss | 63.5 | $ 60.8 | ||
Subsidiaries [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Net income | 0.7 | 1 | ||
Subsidiaries [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Change in unfunded pension obligation [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Income Tax Expense (Benefit) | (0.3) | |||
Net income | 0.7 | 1 | ||
Nonoperating Income (Expense) | $ 0.9 | $ 1.3 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Millions | Nov. 30, 2020 | Mar. 31, 2022 |
Schedule of Regulatory Assets and Liabilities [Text Block] | Regulatory Matters Distribution Rate Case On November 30, 2020, AES Ohio 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. A hearing on this case was held in January 2022, and the case is pending a commission order. Certain parties that have intervened in the distribution rate case have argued that ESP 1 incorporates a distribution rate freeze. We are unable to predict the outcome of the distribution rate case, but if the PUCO were to impose a rate freeze that precludes AES Ohio’s ability to implement a distribution rate increase during ESP 1, it could have a material adverse effect on our results of operations, financial condition and cash flows. | |
Subsidiaries [Member] | ||
Distribution Investment Rider | $ 120.8 | |
Schedule of Regulatory Assets and Liabilities [Text Block] | Regulatory Matters Distribution Rate Case On November 30, 2020, AES Ohio filed a new distribution rate case with the PUCO. This rate case proposes a revenue increase of $120.8 million per year and incorporates the DIR investments that were planned and approved in the last rate case but not yet included in distribution rates, other distribution investments since September 2015 and investments necessitated by the tornados that occurred on Memorial Day in 2019. The rate case also includes a proposal for increased tree-trimming expenses and certain customer demand-side management programs and recovery of prior-approved regulatory assets for tree trimming, uncollectible expenses and rate case expense. A hearing on this case was held in January 2022, and the case is pending a commission order. Certain parties that have intervened in the distribution rate case have argued that ESP 1 incorporates a distribution rate freeze. We are unable to predict the outcome of the distribution rate case, but if the PUCO were to impose a rate freeze that precludes AES Ohio’s ability to implement a distribution rate increase during ESP 1, it could have a material adverse effect on our results of operations, financial condition and cash flows. |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Unrealized Gain (Loss) on Investments | $ (0.7) | $ 0.2 |
Subsidiaries [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Unrealized Gain (Loss) on Investments | $ (0.7) | $ 0.2 |
Fair Value (Fair Value and Cost
Fair Value (Fair Value and Cost of Non-Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Long-term Debt | $ 1,396 | $ 1,395.5 |
Subsidiaries [Member] | ||
Long-term Debt | 574.3 | 574.3 |
Cost [Member] | ||
Total Assets | 6 | 6.1 |
Cost [Member] | Subsidiaries [Member] | ||
Total Assets | 6 | 6.1 |
Fair Value [Member] | ||
Total Assets | 8.4 | 9.4 |
Fair Value [Member] | Subsidiaries [Member] | ||
Total Assets | 8.4 | 9.4 |
Money Market Funds [Member] | Cost [Member] | ||
6000000 | 0.4 | 0.4 |
Money Market Funds [Member] | Cost [Member] | Subsidiaries [Member] | ||
6000000 | 0.4 | 0.4 |
Money Market Funds [Member] | Fair Value [Member] | ||
Investments, Fair Value Disclosure | 0.4 | 0.4 |
Money Market Funds [Member] | Fair Value [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 0.4 | 0.4 |
Equity Securities [Member] | Cost [Member] | ||
6000000 | 1.9 | 1.9 |
Equity Securities [Member] | Cost [Member] | Subsidiaries [Member] | ||
6000000 | 1.9 | 1.9 |
Equity Securities [Member] | Fair Value [Member] | ||
Investments, Fair Value Disclosure | 4.5 | 5.1 |
Equity Securities [Member] | Fair Value [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 4.5 | 5.1 |
Debt Securities [Member] | Cost [Member] | ||
6000000 | 3.7 | 3.8 |
Debt Securities [Member] | Cost [Member] | Subsidiaries [Member] | ||
6000000 | 3.7 | 3.8 |
Debt Securities [Member] | Fair Value [Member] | ||
Investments, Fair Value Disclosure | 3.5 | 3.9 |
Debt Securities [Member] | Fair Value [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 3.5 | 3.9 |
Debt [Member] | Fair Value [Member] | ||
Debt, Fair Value | 1,403.7 | 1,519.7 |
Debt [Member] | Fair Value [Member] | Subsidiaries [Member] | ||
Debt, Fair Value | $ 582.8 | $ 642.6 |
Fair Value (Fair Value of Asset
Fair Value (Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Level 1 [Member] | ||
Total Assets | $ 0.4 | $ 0.4 |
Total Liabilities | 0 | 0 |
Level 1 [Member] | Subsidiaries [Member] | ||
Total Assets | 0.4 | 0.4 |
Total Liabilities | 0 | 0 |
Level 2 [Member] | ||
Total Assets | 8 | 9 |
Total Liabilities | 1,386.6 | 1,502.5 |
Level 2 [Member] | Subsidiaries [Member] | ||
Total Assets | 8 | 9 |
Total Liabilities | 565.7 | 625.4 |
Level 3 [Member] | ||
Total Assets | 0 | 0 |
Total Liabilities | 17.1 | 17.2 |
Level 3 [Member] | Subsidiaries [Member] | ||
Total Assets | 0 | 0 |
Total Liabilities | 17.1 | 17.2 |
Fair Value [Member] | ||
Total Assets | 8.4 | 9.4 |
Total Liabilities | 1,403.7 | 1,519.7 |
Fair Value [Member] | Subsidiaries [Member] | ||
Total Assets | 8.4 | 9.4 |
Total Liabilities | 582.8 | 642.6 |
Money Market Funds [Member] | Level 1 [Member] | ||
Investments, Fair Value Disclosure | 0.4 | 0.4 |
Money Market Funds [Member] | Level 1 [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 0.4 | 0.4 |
Money Market Funds [Member] | Level 2 [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Money Market Funds [Member] | Level 2 [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Money Market Funds [Member] | Level 3 [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Money Market Funds [Member] | Level 3 [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Money Market Funds [Member] | Fair Value [Member] | ||
Investments, Fair Value Disclosure | 0.4 | 0.4 |
Money Market Funds [Member] | Fair Value [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 0.4 | 0.4 |
Equity Securities [Member] | Level 1 [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Equity Securities [Member] | Level 1 [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Equity Securities [Member] | Level 2 [Member] | ||
Investments, Fair Value Disclosure | 4.5 | 5.1 |
Equity Securities [Member] | Level 2 [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 4.5 | 5.1 |
Equity Securities [Member] | Level 3 [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Equity Securities [Member] | Level 3 [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Equity Securities [Member] | Fair Value [Member] | ||
Investments, Fair Value Disclosure | 4.5 | 5.1 |
Equity Securities [Member] | Fair Value [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 4.5 | 5.1 |
Debt Securities [Member] | Level 1 [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Debt Securities [Member] | Level 1 [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Debt Securities [Member] | Level 2 [Member] | ||
Investments, Fair Value Disclosure | 3.5 | 3.9 |
Debt Securities [Member] | Level 2 [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 3.5 | 3.9 |
Debt Securities [Member] | Level 3 [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Debt Securities [Member] | Level 3 [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 0 | 0 |
Debt Securities [Member] | Fair Value [Member] | ||
Investments, Fair Value Disclosure | 3.5 | 3.9 |
Debt Securities [Member] | Fair Value [Member] | Subsidiaries [Member] | ||
Investments, Fair Value Disclosure | 3.5 | 3.9 |
Debt [Member] | Level 1 [Member] | ||
Debt | 0 | 0 |
Debt [Member] | Level 1 [Member] | Subsidiaries [Member] | ||
Debt | 0 | 0 |
Debt [Member] | Level 2 [Member] | ||
Debt | 1,386.6 | 1,502.5 |
Debt [Member] | Level 2 [Member] | Subsidiaries [Member] | ||
Debt | 565.7 | 625.4 |
Debt [Member] | Level 3 [Member] | ||
Debt | 17.1 | 17.2 |
Debt [Member] | Level 3 [Member] | Subsidiaries [Member] | ||
Debt | 17.1 | 17.2 |
Debt [Member] | Fair Value [Member] | ||
Debt | 1,403.7 | 1,519.7 |
Debt [Member] | Fair Value [Member] | Subsidiaries [Member] | ||
Debt | $ 582.8 | $ 642.6 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Interest Rate Contract [Member] | ||||
Derivative [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ 12.7 | $ 12.8 | $ 13.4 | $ 13.6 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Gains or Losses Recognized in AOCI for the Cash Flow Hedges) (Details) - Interest Rate Contract [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2022 | |
Accumulated Derivative Gain/Loss in AOCI [Roll Forward] | ||
Beginning accumulated derivative gain / (loss) in AOCI | $ 13.6 | |
Ending accumulated derivative gain / (loss) in AOCI | 13.4 | |
Portion expected to be reclassified to earnings in the next twelve months | $ (0.8) | |
Interest Expense [Member] | ||
Accumulated Derivative Gain/Loss in AOCI [Roll Forward] | ||
Net gains losses reclassified to earnings | $ (0.2) |
Debt (Narrative) (Details)
Debt (Narrative) (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022USD ($)fiscal_quarterdebt_covenant | Dec. 31, 2022USD ($) | Sep. 30, 2022USD ($) | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | ||||
Long-term Line of Credit | $ 65 | $ 65 | ||
Debt Covenant, Leverage Ratio, Maximum | 0.67 | |||
Debt Covenant, Interest Coverage Ratio, Minimum | 1.70 | |||
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum | $ 125 | |||
Less: current portion | (0.2) | (0.2) | ||
Debt Instrument, Unamortized Discount (Premium), Net | (0.8) | (0.8) | ||
Debt Instrument, Debt Covenant, Total Debt to EBITDA, Borrowing Limit | 100 | |||
Debt Instrument, Debt Covenant, Total Debt to EBITDA, New Borrowing Limit | 95 | |||
Debt Instrument, Debt Covenant, Total Debt to EBITDA, Borrowing Limit Quarterly 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 | ||
Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Line of Credit | 75 | 0 | ||
Less: current portion | (0.2) | (0.2) | ||
Deferred Finance Costs, Net, Including Acquisition Adjustments | (5.3) | (5.4) | ||
Debt Instrument, Unamortized Discount (Premium), Net | (2.5) | (2.5) | ||
3.95% Senior Notes due 2049 [Member] | Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 425 | 425 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.95% | |||
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 EBITDA to interest calculation | fiscal_quarter | 4 | |||
Debt Covenant, Interest Coverage Ratio, Minimum | 2.50 | |||
Revolving Credit Facility [Member] | Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Covenant, Debt to EBITDA Ratio, Maximum | 7 | |||
Debt Covenant, Total Debt to Total Capitalization Ratio, Maximum | 0.67 | |||
3.25% First Mortgage Bonds due 2040 [Member] | Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 140 | 140 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.20% | |||
U.S. Government note maturing in February 2061 - 4.20% [Member] | Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 17.1 | $ 17.2 | ||
Debt instrument interest percentage | 4.20% |
Debt (Long-term Debt) (Details)
Debt (Long-term Debt) (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022USD ($) | Dec. 31, 2022USD ($) | Sep. 30, 2022USD ($) | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | ||||
Unamortized deferred finance costs | $ (8.1) | $ (8.6) | ||
Unamortized debt discounts, net | (0.8) | (0.8) | ||
Total long-term debt | 1,396 | 1,395.5 | ||
Less: current portion | (0.2) | (0.2) | ||
Long-term debt | 1,395.8 | 1,395.3 | ||
Long-term Line of Credit | $ 65 | 65 | ||
Debt Covenant, Interest Coverage Ratio, Minimum | 1.70 | |||
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum | $ 125 | |||
Long-term Debt | Long-term Debt Long-term debt is as follows: Interest March 31, December 31, $ in millions Rate Maturity 2022 2021 First Mortgage Bonds 3.95% 2049 $ 425.0 $ 425.0 First Mortgage Bonds 3.20% 2040 140.0 140.0 U.S. Government note 4.20% 2061 17.1 17.2 Unamortized deferred financing costs (5.3) (5.4) Unamortized debt discounts, net (2.5) (2.5) Total long-term debt at AES Ohio 574.3 574.3 Senior unsecured bonds 4.125% 2025 415.0 415.0 Senior unsecured bonds 4.35% 2029 400.0 400.0 Note to DPL Capital Trust II (a) 8.125% 2031 15.6 15.6 Unamortized deferred financing costs (8.1) (8.6) Unamortized debt discounts, net (0.8) (0.8) Total long-term debt 1,396.0 1,395.5 Less: current portion (0.2) (0.2) Long-term debt, net of current portion $ 1,395.8 $ 1,395.3 (a) Note payable to related party. Lines of credit As of March 31, 2022 and December 31, 2021, the DPL Credit Agreement had outstanding borrowings of $65.0 million and $65.0 million, respectively. As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings of $75.0 million and $0.0 million, respectively. Significant transactions DPL Inc. agreed to register the 2025 DPL Inc. Senior Unsecured Bonds under the Securities Act by filing an exchange offer registration statement or, under specified circumstances, a shelf registration statement with the SEC pursuant to a Registration Rights Agreement dated June 19, 2020. DPL Inc. filed a registration statement on Form S-4 with respect to the 2025 DPL Inc. Senior Unsecured Bonds with the SEC on March 15, 2021, and this registration statement was declared effective on March 31, 2021. The exchange offer closed on May 5, 2021. Long-term debt covenants and restrictions The DPL 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 March 31, 2022, DPL was in compliance with this financial covenant. 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 March 31, 2022, DPL Inc. was in compliance with this financial covenant. The DPL Credit Agreement also restricts dividend payments from DPL Inc. to AES, such that DPL cannot make dividend payments unless at the time of, and/or as a result of the distribution, (i) DPL Inc.’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 March 31, 2022, DPL Inc. was prohibited from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries). Starting with the quarter ended September 30, 2021, the borrowing limit on the DPL Inc. Credit Agreement will be reduced by $5.0 million per quarter should the Total Debt to EBITDA ratio for the period of four consecutive quarters exceed 7.00 to 1.00. As of March 31, 2022, DPL Inc. exceeded this ratio and the borrowing limit was reduced from $100.0 million to $95.0 million. The AES Ohio Credit Agreement and Bond Purchase Agreement (financing document entered into in connection with the issuance of AES Ohio'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. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. As of March 31, 2022, AES Ohio was in compliance with this financial covenant. As of March 31, 2022, DPL and AES Ohio were in compliance with all debt covenants, including the financial covenants described above. AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc. Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage. | |||
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 | ||
Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Unamortized deferred finance costs | $ (5.3) | (5.4) | ||
Unamortized debt discounts, net | (2.5) | (2.5) | ||
Total long-term debt at subsidiary | 574.3 | 574.3 | ||
Total long-term debt | 574.3 | 574.3 | ||
Less: current portion | (0.2) | (0.2) | ||
Long-term debt | 574.1 | 574.1 | ||
Long-term Line of Credit | $ 75 | 0 | ||
Long-term Debt | Long-term Debt Long-term debt is as follows: Interest March 31, December 31, $ in millions Rate Maturity 2022 2021 First Mortgage Bonds 3.95 % 2049 $ 425.0 $ 425.0 First Mortgage Bonds 3.20 % 2040 140.0 140.0 U.S. Government note 4.20 % 2061 17.1 17.2 Unamortized deferred financing costs (5.3) (5.4) Unamortized debt discounts, net (2.5) (2.5) Total long-term debt 574.3 574.3 Less: current portion (0.2) (0.2) Long-term debt, net of current portion $ 574.1 $ 574.1 Line of credit As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings on its line of credit of $75.0 million and $0.0 million, respectively. Long-term debt covenants and restrictions The AES Ohio Credit Agreement and Bond Purchase Agreement (financing document entered into in connection with the issuance of AES Ohio'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. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. As of March 31, 2022, AES Ohio was in compliance with this financial covenant. As of March 31, 2022, AES Ohio was in compliance with all debt covenants, including the financial covenants described above. AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc. Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage. | |||
3.95% Senior Notes due 2049 [Member] | Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.95% | |||
Long-term Debt, Gross | $ 425 | 425 | ||
DPL Revolving Credit Agreement and Term Loan Maturing July 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Covenant, Interest Coverage Ratio, Minimum | 2.50 | |||
U.S. Government note maturing in February 2061 - 4.20% [Member] | Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest percentage | 4.20% | |||
Long-term Debt, Gross | $ 17.1 | 17.2 | ||
4.35% Senior Notes due 2029 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest percentage | 4.35% | |||
Long-term Debt, Gross | $ 400 | 400 | ||
Note to DPL Capital Trust II Maturing in September 2031 - 8.125% [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest percentage | 8.125% | |||
Long-term Debt, Gross | $ 15.6 | 15.6 | ||
4.13% Senior Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest percentage | 4.125% | |||
Long-term Debt, Gross | $ 415 | 415 | ||
3.25% First Mortgage Bonds due 2040 [Member] | Subsidiaries [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 3.20% | |||
Long-term Debt, Gross | $ 140 | $ 140 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Entity Information [Line Items] | ||
Estimated annual effective income tax rate | (34.80%) | |
Effective Income Tax Rate Reconciliation, Including Discontinued Operations, Percent | (31.60%) | (3.80%) |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 22.10% | |
Subsidiaries [Member] | ||
Entity Information [Line Items] | ||
Effective income tax rates | 14.90% | |
Effective Income Tax Rate Reconciliation, Including Discontinued Operations, Percent | 13.80% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 22.10% |
Benefit Plans (Net Periodic Ben
Benefit Plans (Net Periodic Benefit Cost (Income)) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Pension [Member] | |||
Contributions by employer | $ 7.5 | $ 9.8 | |
Service cost | 1.3 | 1.1 | |
Interest cost | 2.4 | 2 | |
Expected return on assets | (4) | (3.7) | |
Prior service cost | 0.2 | 0.2 | |
Actuarial loss / (gain) | 1.4 | 2.3 | |
Net periodic benefit cost | 1.3 | 1.9 | |
Postretirement [Member] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 8.8 | $ 8.9 | |
Subsidiaries [Member] | Pension [Member] | |||
Contributions by employer | 7.5 | 9.8 | |
Service cost | 1.3 | 1.1 | |
Interest cost | 2.4 | 2 | |
Expected return on assets | (4) | (3.7) | |
Prior service cost | 0.3 | 0.3 | |
Actuarial loss / (gain) | 1.9 | 2.8 | |
Net periodic benefit cost | 1.9 | $ 2.5 | |
Subsidiaries [Member] | Postretirement [Member] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 8.8 | $ 8.9 |
Benefit Plans (Estimated Future
Benefit Plans (Estimated Future Benefit Payments and Medicare Part D Reimbursements) (Details) - Postretirement [Member] - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 8.8 | $ 8.9 |
Subsidiaries [Member] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 8.8 | $ 8.9 |
Contractual Obligations, Comm_2
Contractual Obligations, Commercial Commitments and Contingencies (Narrative) (Details) - Subsidiaries [Member] $ in Millions | Mar. 31, 2022USD ($) |
Debt Obligation on 4.9% Equity Ownership [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Equity ownership interest | 4.90% |
Equity ownership interest aggregate cost | $ 54.8 |
Electric Generation Company [Member] | |
Public Utility, Property, Plant and Equipment [Line Items] | |
Debt obligation | $ 1,118.8 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)mi²segmentcustomer | Dec. 31, 2021USD ($) | |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,189.7 | $ 2,171.8 |
Subsidiaries [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of Operating Segments | segment | 1 | |
Approximate number of retail customers | customer | 535,000 | |
Service area, square miles | mi² | 6,000 | |
Total assets | $ 2,175.7 | 2,162.6 |
Operating Segments [Member] | Utility [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,162.6 | |
Corporate, Non-Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 14 | $ 9.2 |
Business Segments (Segment Fina
Business Segments (Segment Financial Information) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
External customer revenues | $ 199.3 | $ 175.2 | |
Intersegment revenues | 0 | 0 | |
Total revenues | 199.3 | 175.2 | |
Depreciation and amortization | 19.5 | 19.1 | |
Interest expense | 15.5 | 15.6 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 11.7 | 13.9 | |
Total assets | 2,189.7 | $ 2,171.8 | |
Operating Segments [Member] | Utility [Member] | |||
Segment Reporting Information [Line Items] | |||
External customer revenues | 196.8 | 172.6 | |
Intersegment revenues | 0.2 | 0.2 | |
Total revenues | 197 | 172.8 | |
Depreciation and amortization | 19.2 | 18.7 | |
Interest expense | 5.9 | 6 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 19.6 | 21.5 | |
Total assets | 2,162.6 | ||
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
External customer revenues | 2.5 | 2.6 | |
Intersegment revenues | 0.9 | 0.9 | |
Total revenues | 3.4 | 3.5 | |
Depreciation and amortization | 0.3 | 0.4 | |
Interest expense | 9.6 | 9.6 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (7.9) | (7.6) | |
Total assets | 14 | 9.2 | |
Adjustments and Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
External customer revenues | 0 | 0 | |
Intersegment revenues | (1.1) | (1.1) | |
Total revenues | (1.1) | (1.1) | |
Depreciation and amortization | 0 | 0 | |
Interest expense | 0 | 0 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 0 | 0 | |
Subsidiaries [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 19.2 | 18.7 | |
Interest expense | 5.9 | 6 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 19.6 | $ 21.5 | |
Total assets | $ 2,175.7 | $ 2,162.6 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 197.7 | $ 172.1 | |
RTO Revenue | 15.1 | 14.9 | |
RTO Capacity Revenue | 1.8 | 0.9 | |
Revenues | 199.3 | 175.2 | |
Contract with Customer, Asset, before Allowance for Credit Loss | 64.4 | $ 61.5 | |
Subsidiaries [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 195.4 | 169.7 | |
RTO Revenue | 15.1 | 14.8 | |
RTO Capacity Revenue | 1.8 | 0.9 | |
Revenues | 197 | 172.8 | |
Contract with Customer, Asset, before Allowance for Credit Loss | 63.5 | $ 60.8 | |
Utility [Member] | |||
RTO Revenue | 15.1 | 14.8 | |
RTO Capacity Revenue | 1.8 | 0.9 | |
Revenues | 197 | 172.8 | |
Corporate and Other | |||
RTO Revenue | 0 | 0.1 | |
RTO Capacity Revenue | 0 | 0 | |
Revenues | 3.4 | 3.5 | |
Adjustments and Eliminations | |||
RTO Revenue | 0 | 0 | |
RTO Capacity Revenue | 0 | 0 | |
Revenues | (1.1) | (1.1) | |
Other Revenues [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2.5 | 2.5 | |
Other non-606 revenue | 1.6 | 3.1 | |
Other Revenues [Member] | Subsidiaries [Member] | |||
Other non-606 revenue | 1.6 | 3.1 | |
Other Revenues [Member] | Utility [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Other non-606 revenue | 1.6 | 3.1 | |
Other Revenues [Member] | Corporate and Other | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2.5 | 2.5 | |
Other non-606 revenue | 0.9 | 0.9 | |
Other Revenues [Member] | Adjustments and Eliminations | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Other non-606 revenue | (0.9) | (0.9) | |
Wholesale Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 7.5 | 4.8 | |
Wholesale Revenue [Member] | Subsidiaries [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 7.7 | 5 | |
Wholesale Revenue [Member] | Utility [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 7.7 | 5 | |
Wholesale Revenue [Member] | Corporate and Other | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Wholesale Revenue [Member] | Adjustments and Eliminations | |||
Revenue from Contract with Customer, Excluding Assessed Tax | (0.2) | (0.2) | |
Retail Revenue [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 170.8 | 149 | |
Retail Revenue [Member] | Residential Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 109.9 | 98.3 | |
Retail Revenue [Member] | Commercial Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 35 | 27.3 | |
Retail Revenue [Member] | Industrial Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 16.9 | 12.3 | |
Retail Revenue [Member] | Governmental Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 6.1 | 7.4 | |
Retail Revenue [Member] | Other Revenues [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2.9 | 3.7 | |
Retail Revenue [Member] | Utility [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 170.8 | 149 | |
Retail Revenue [Member] | Utility [Member] | Residential Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 109.9 | 98.3 | |
Retail Revenue [Member] | Utility [Member] | Commercial Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 35 | 27.3 | |
Retail Revenue [Member] | Utility [Member] | Industrial Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 16.9 | 12.3 | |
Retail Revenue [Member] | Utility [Member] | Governmental Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 6.1 | 7.4 | |
Retail Revenue [Member] | Utility [Member] | Other Revenues [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 2.9 | 3.7 | |
Retail Revenue [Member] | Corporate and Other | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Retail Revenue [Member] | Corporate and Other | Residential Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Retail Revenue [Member] | Corporate and Other | Commercial Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Retail Revenue [Member] | Corporate and Other | Industrial Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Retail Revenue [Member] | Corporate and Other | Governmental Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Retail Revenue [Member] | Corporate and Other | Other Revenues [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Retail Revenue [Member] | Adjustments and Eliminations | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Retail Revenue [Member] | Adjustments and Eliminations | Residential Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Retail Revenue [Member] | Adjustments and Eliminations | Commercial Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Retail Revenue [Member] | Adjustments and Eliminations | Industrial Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Retail Revenue [Member] | Adjustments and Eliminations | Governmental Revenue | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | |
Retail Revenue [Member] | Adjustments and Eliminations | Other Revenues [Member] | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | $ 0 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Revenue | $ 0.9 | |
Disposal Group, Including Discontinued Operation, Operating and Other Expenses | (1.7) | |
Loss from discontinued operations before income taxes | $ 0 | (0.8) |
Income tax benefit from discontinued operations | 0 | (0.2) |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | (0.6) |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | (0.2) | |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | (0.4) | |
Cash flows from investing activities for discontinued operations | $ (0.4) | |
Conesville [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Payments for Removal Costs | 3.8 | |
Conesville [Member] | Forecast [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Payments for Removal Costs | $ 4 |