DPL INC. (an Ohio corporation) | THE DAYTON POWER AND LIGHT COMPANY (an Ohio corporation) | |
Commission file number 1-9052 | Commission file number 1-2385 | |
1065 Woodman Drive Dayton, Ohio 45432 | 1065 Woodman Drive Dayton, Ohio 45432 | |
937-259-7215 | 937-259-7215 | |
I.R.S. Employer Identification No. 31-1163136 | I.R.S. Employer Identification No. 31-0258470 |
DPL Inc. | Yes o | No x |
The Dayton Power and Light Company | Yes o | No x |
DPL Inc. | Yes x | No o |
The Dayton Power and Light Company | Yes x | No o |
Large accelerated filer | Accelerated filer | Non- accelerated filer (Do not check if a smaller reporting company) | Smaller reporting company | Emerging growth company | |
DPL Inc. | o | o | x | o | o |
The Dayton Power and Light Company | o | o | x | o | o |
DPL Inc. | o |
The Dayton Power and Light Company | o |
DPL Inc. | Yes o | No x |
The Dayton Power and Light Company | Yes o | No x |
Registrant | Description | Shares Outstanding | ||
DPL Inc. | Common Stock, no par value | 1 | ||
The Dayton Power and Light Company | Common Stock, $0.01 par value | 41,172,173 |
Table of Contents | Page No. | |
Glossary of Terms | ||
Forward-Looking Statements | ||
Part I Financial Information | ||
Item 1 | Financial Statements – DPL Inc. and The Dayton Power and Light Company (Unaudited) | |
DPL Inc. | ||
Condensed Consolidated Statements of Operations | ||
Condensed Consolidated Statements of Comprehensive Income / (Loss) | ||
Condensed Consolidated Balance Sheets | ||
Condensed Consolidated Statements of Cash Flows | ||
Notes to Condensed Consolidated Financial Statements | ||
Note 1 – Overview and Summary of Significant Accounting Policies | ||
Note 2 – Supplemental Financial Information | ||
Note 3 – Regulatory Matters | ||
Note 4 – Property, Plant and Equipment | ||
Note 5 – Fair Value | ||
Note 6 – Derivative Instruments and Hedging Activities | ||
Note 7 – Long-term Debt | ||
Note 8 – Income Taxes | ||
Note 9 – Benefit Plans | ||
Note 10 – Shareholder's Equity | ||
Note 11 – Contractual Obligations, Commercial Commitments and Contingencies | ||
Note 12 – Business Segments | ||
Note 13 – Revenue | ||
Note 14 – Dispositions | ||
Note 15 – Discontinued Operations | ||
The Dayton Power and Light Company | ||
Condensed Statements of Operations | ||
Condensed Statements of Comprehensive Income | ||
Condensed Balance Sheets | ||
Condensed Statements of Cash Flows | ||
Notes to Condensed Financial Statements | ||
Note 1 – Overview and Summary of Significant Accounting Policies | ||
Note 2 – Supplemental Financial Information | ||
Note 3 – Regulatory Matters | ||
Note 4 – Property, Plant and Equipment | ||
Note 5 – Fair Value | ||
Note 6 – Derivative Instruments and Hedging Activities | ||
Note 7 – Long-term Debt | ||
Note 8 – Income Taxes | ||
Note 9 – Benefit Plans | ||
Note 10 – Shareholder’s Equity | ||
Note 11 – Contractual Obligations, Commercial Commitments and Contingencies | ||
Note 12 – Revenue | ||
Note 13 – Generation Separation | ||
Note 14 – Dispositions | ||
Item 2 | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3 | Quantitative and Qualitative Disclosures about Market Risk | |
Item 4 | Controls and Procedures | |
Part II Other Information | ||
Item 1 | Legal Proceedings | |
Item 1A | Risk Factors | |
Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3 | Defaults Upon Senior Securities | |
Item 4 | Mine Safety Disclosures | |
Item 5 | Other Information | |
Item 6 | Exhibits | |
Signatures |
Term | Definition |
2017 ESP | DP&L's ESP, approved October 20, 2017, effective November 1, 2017 |
AEP | Ohio Power Company, doing business as American Electric Power |
AES | The AES Corporation, a global power company and the ultimate parent company of DPL |
AES Ohio Generation | AES Ohio Generation, LLC, a wholly-owned subsidiary of DPL that owns an interest in a coal-fired EGU and previously operated EGUs from which it makes wholesale sales |
AOCI | Accumulated Other Comprehensive Income |
ARO | Asset Retirement Obligation |
ASU | Accounting Standards Update |
Capacity Market | The purpose of the capacity market is to enable PJM to obtain sufficient resources to reliably meet the needs of electric customers within the PJM footprint. PJM procures capacity, through a multi-auction structure, on behalf of the load serving entities to satisfy the load obligations. There are four auctions held for each Delivery Year (running from June 1 through May 31). The Base Residual Auction is held three years in advance of the Delivery Year and there is one Incremental Auction held in each of the subsequent three years. AES Ohio Generation’s capacity is in the “rest of” RTO area of PJM. |
CCR | Coal combustion residuals |
Conesville | AES Ohio Generation's interest in Unit 4 at the Conesville EGU |
CRES | Competitive Retail Electric Service |
DRO | Distribution Rate Order, the order issued by the PUCO on September 26, 2018 establishing new base distribution rates for DP&L, which became effective October 1, 2018 |
DMR | Distribution Modernization Rider |
DPL | DPL Inc. |
DP&L | The Dayton Power and Light Company, the principal subsidiary of DPL and a public utility that delivers electricity to residential, commercial, industrial and governmental customers in a 6,000-square mile area of West Central Ohio |
Duke | Duke Energy Ohio, Inc. |
EBITDA | Earnings before interest, taxes, depreciation and amortization. EBITDA also excludes the Fixed-asset impairment |
EGU | Electric Generating Unit |
ERISA | The Employee Retirement Income Security Act of 1974 |
ESP | The Electric Security Plan is a plan that a utility must file with the PUCO to establish SSO rates pursuant to Ohio law |
FASB | Financial Accounting Standards Board |
FASC | FASB Accounting Standards Codification |
FERC | Federal Energy Regulatory Commission |
Form 10-K | DPL’s and DP&L’s combined Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which was filed on February 26, 2018 |
First and Refunding Mortgage | DP&L’s First and Refunding Mortgage, dated October 1, 1935, as amended, with the Bank of New York Mellon as Trustee |
GAAP | Generally Accepted Accounting Principles in the United States of America |
Generation Separation | The transfer on October 1, 2017 to AES Ohio Generation of the DP&L-owned generating facilities and related liabilities pursuant to an asset contribution agreement with a subsidiary that was then merged into AES Ohio Generation |
kV | Kilovolt, 1,000 volts |
kWh | Kilowatt-hours |
LIBOR | London Inter-Bank Offering Rate |
Master Trust | DP&L established a Master Trust to hold assets that could be used for the benefit of employees participating in employee benefit plans |
Merger | The merger of DPL and Dolphin Sub, Inc., a wholly-owned subsidiary of AES. On November 28, 2011, DPL became a wholly-owned subsidiary of AES. |
Miami Valley Lighting | Miami Valley Lighting, LLC is a wholly-owned subsidiary of DPL established in 1985 to provide street and outdoor lighting services to customers in the Dayton region. Miami Valley Lighting serves businesses, communities and neighborhoods in West Central Ohio with over 70,000 lighting solutions for more than 190 businesses and 180 local governments. |
MVIC | Miami Valley Insurance Company, a wholly-owned insurance subsidiary of DPL that provides insurance services to DPL and its subsidiaries and, in some cases, insurance services to partner companies related to the jointly-owned facility operated by AES Ohio Generation |
MW | Megawatt |
MWh | Megawatt-hour |
NAV | Net asset value |
NERC | North American Electric Reliability Corporation |
NPDES | National Pollutant Discharge Elimination System |
Ohio EPA | Ohio Environmental Protection Agency |
OVEC | Ohio Valley Electric Corporation, an electric generating company in which DP&L holds a 4.9% equity interest |
GLOSSARY OF TERMS (cont.) | |
Term | Definition |
Peaker assets | The generation and related assets for the 586.0 MW Tait combustion turbine and diesel generation facility, the 236.0 MW Montpelier combustion turbine generation facility, the 101.5 MW Yankee combustion turbine generation and solar facility, the 25.0 MW Hutchings combustion turbine generation facility, the 12.0 MW Monument diesel generation facility, and the 12.0 MW Sidney diesel generation facility that were sold on March 27, 2018 |
PJM | PJM Interconnection, LLC, an RTO |
PUCO | Public Utilities Commission of Ohio |
RTO | Regional Transmission Organization |
SEC | Securities and Exchange Commission |
SERP | Supplemental Executive Retirement Plan |
Service Company | AES US Services, LLC, the shared services affiliate providing accounting, finance, and other support services to AES’ U.S. and Utilities SBU businesses |
SSO | Standard Service Offer represents the regulated rates, authorized by the PUCO, charged to DP&L retail customers that take retail generation service from DP&L within DP&L’s service territory |
TCJA | The Tax Cuts and Jobs Act of 2017, signed on December 22, 2017 |
TCRR | Transmission Cost Recovery Rider |
U.S. | United States of America |
USEPA | U.S. Environmental Protection Agency |
USF | The Universal Service Fund is a statewide program which provides qualified low-income customers in Ohio with income-based bills and energy efficiency education programs |
U.S. and Utilities SBU | U.S. and Utilities Strategic Business Unit, AES’ reporting unit covering the businesses in the United States, including DPL |
Utility segment | DPL's Utility segment is made up of DP&L’s electric transmission and distribution businesses, which distribute electricity to residential, commercial, industrial and governmental customers |
• | growth in our service territory and changes in demand and demographic patterns; |
• | impacts of weather on retail sales and wholesale prices; |
• | purchased power costs and availability, including impacts of renewable energy generation, natural gas prices and other market factors on wholesale prices; |
• | weather-related damage to our electrical system; |
• | performance of our suppliers; |
• | transmission and distribution system reliability and capacity; |
• | regulatory actions, including, but not limited to, the review of our basic rates and charges by the PUCO; |
• | federal and state legislation and regulations; |
• | changes in our credit ratings or the credit ratings of AES; |
• | fluctuations in the value of pension plan assets, fluctuations in pension plan expenses and our ability to fund defined benefit pension plans; |
▪ | changes in financial or regulatory accounting policies; |
▪ | environmental matters, including costs of compliance with current and future environmental laws and requirements; |
▪ | interest rates and the use of interest rate hedges, inflation rates and other costs of capital; |
▪ | the availability of capital; |
▪ | the ability of subsidiaries to pay dividends or distributions to DPL; |
▪ | level of creditworthiness of counterparties to contracts and transactions; |
▪ | labor strikes or other workforce factors, including the ability to attract and retain key personnel; |
▪ | facility or equipment maintenance, repairs and capital expenditures; |
▪ | significant delays or unanticipated cost increases associated with construction projects; |
▪ | the availability and cost of funds to finance working capital and capital needs, particularly during periods when the time lag between incurring costs and recovery is long and the costs are material; |
▪ | local economic conditions; |
▪ | costs and effects of legal and administrative proceedings, audits, settlements, investigations and claims and the ultimate disposition of litigation; |
▪ | industry restructuring, deregulation and competition; |
▪ | issues related to our participation in PJM, including the cost associated with membership, allocation of costs, costs associated with transmission expansion, the recovery of costs incurred, and the risk of default of other PJM participants; |
▪ | changes in tax laws and the effects of our strategies to reduce tax payments; |
▪ | product development, technology changes, and changes in prices of products and technologies; |
▪ | cyberattacks and information security breaches; |
▪ | catastrophic events such as fires, explosions, terrorist acts, acts of war, pandemic events, or natural disasters such as floods, earthquakes, tornadoes, severe winds, ice or snow storms, droughts, or other similar occurrences; and |
▪ | the risks and other factors discussed in this report and other DPL and DP&L filings with the SEC. |
Part I – Financial Information |
Item 1 – Financial Statements |
DPL INC. | ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
$ in millions | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | $ | 207.7 | $ | 191.7 | $ | 591.5 | $ | 561.7 | ||||||||
Cost of revenues: | ||||||||||||||||
Net fuel cost | 4.6 | 3.3 | 12.7 | 7.6 | ||||||||||||
Net purchased power cost | 83.6 | 74.7 | 238.9 | 222.8 | ||||||||||||
Total cost of revenues | 88.2 | 78.0 | 251.6 | 230.4 | ||||||||||||
Gross margin | 119.5 | 113.7 | 339.9 | 331.3 | ||||||||||||
Operating expenses: | ||||||||||||||||
Operation and maintenance | 37.3 | 47.7 | 118.3 | 144.1 | ||||||||||||
Depreciation and amortization | 19.7 | 19.8 | 58.8 | 56.9 | ||||||||||||
General taxes | 19.0 | 19.3 | 54.5 | 58.5 | ||||||||||||
Other, net (Note 2): | 1.6 | (0.4 | ) | 14.6 | (0.4 | ) | ||||||||||
Total operating expenses | 77.6 | 86.4 | 246.2 | 259.1 | ||||||||||||
Operating income | 41.9 | 27.3 | 93.7 | 72.2 | ||||||||||||
Other income / (expense), net | ||||||||||||||||
Interest expense | (22.6 | ) | (27.8 | ) | (74.4 | ) | (82.7 | ) | ||||||||
Charge for early redemption of debt | — | (3.0 | ) | (6.4 | ) | (3.3 | ) | |||||||||
Other income | 0.5 | 0.8 | 0.8 | 1.0 | ||||||||||||
Total other expense, net | (22.1 | ) | (30.0 | ) | (80.0 | ) | (85.0 | ) | ||||||||
Income / (loss) from continuing operations before income tax | 19.8 | (2.7 | ) | 13.7 | (12.8 | ) | ||||||||||
Income tax expense / (benefit) from continuing operations | 3.1 | (1.7 | ) | 1.5 | (5.0 | ) | ||||||||||
Net income / (loss) from continuing operations | 16.7 | (1.0 | ) | 12.2 | (7.8 | ) | ||||||||||
Discontinued operations (Note 15): | ||||||||||||||||
Income / (loss) from discontinued operations before income tax | 5.0 | 30.8 | 36.7 | (33.6 | ) | |||||||||||
Gain / (loss) from disposal of discontinued operations | 0.3 | — | (1.6 | ) | — | |||||||||||
Income tax expense / (benefit) from discontinued operations | 1.0 | 7.9 | 5.9 | (12.1 | ) | |||||||||||
Net income / (loss) from discontinued operations | 4.3 | 22.9 | 29.2 | (21.5 | ) | |||||||||||
Net income / (loss) | $ | 21.0 | $ | 21.9 | $ | 41.4 | $ | (29.3 | ) |
DPL INC. | ||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income / (Loss) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
$ in millions | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income / (loss) | $ | 21.0 | $ | 21.9 | $ | 41.4 | $ | (29.3 | ) | |||||||
Equity securities activity: | ||||||||||||||||
Change in fair value of equity securities, net of income tax expense of $0.0, $(0.1), $0.0 and $(0.2) for each respective period | — | 0.1 | — | 0.4 | ||||||||||||
Reclassification to earnings, net of income tax expense of $0.0 for each respective period | — | — | — | (0.1 | ) | |||||||||||
Reclassification to Retained earnings, net of income tax benefit of $0.0, $0.0, $0.6 and $0.0 for each respective period | — | — | (1.0 | ) | — | |||||||||||
Total change in fair value of equity securities | — | 0.1 | (1.0 | ) | 0.3 | |||||||||||
Derivative activity: | ||||||||||||||||
Change in derivative fair value, net of income tax expense of $0.0, $(0.8), $(0.2) and $(6.6) for each respective period | 0.1 | 1.4 | 0.4 | 12.1 | ||||||||||||
Reclassification to earnings, net of income tax benefit of $0.1, $0.1, $0.3 and $0.3 for each respective period | (0.2 | ) | (0.1 | ) | (0.6 | ) | (0.5 | ) | ||||||||
Reclassification of earnings related to discontinued operations, net of Income tax benefit / (expense) of $0.0, $1.2, $(1.5) and $3.0 for each respective period | — | (2.3 | ) | 2.8 | (5.5 | ) | ||||||||||
Total change in fair value of derivatives | (0.1 | ) | (1.0 | ) | 2.6 | 6.1 | ||||||||||
Pension and postretirement activity: | ||||||||||||||||
Prior service cost for the period, net of income tax benefit of $0.0, $0.0, $0.0 and $0.2 for each respective period | — | — | — | (0.3 | ) | |||||||||||
Net loss for period, net of income tax benefit of $0.0, $0.0, $0.0 and $0.7 for each respective period | — | — | — | (1.2 | ) | |||||||||||
Reclassification to earnings, net of income tax expense of $(0.1), $0.0, $(0.1) and $(0.5) for each respective period | 0.1 | — | 0.4 | 0.9 | ||||||||||||
Total pension and postretirement adjustments | 0.1 | — | 0.4 | (0.6 | ) | |||||||||||
Other comprehensive income / (loss) | — | (0.9 | ) | 2.0 | 5.8 | |||||||||||
Net comprehensive income / (loss) | $ | 21.0 | $ | 21.0 | $ | 43.4 | $ | (23.5 | ) |
DPL INC. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
$ in millions | September 30, 2018 | December 31, 2017 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 65.4 | $ | 24.5 | ||||
Restricted cash | 22.0 | 0.4 | ||||||
Accounts receivable, net (Note 2) | 95.5 | 64.6 | ||||||
Inventories (Note 2) | 10.7 | 12.7 | ||||||
Taxes applicable to subsequent years | 17.1 | 71.3 | ||||||
Regulatory assets, current | 34.0 | 23.9 | ||||||
Other prepayments and current assets | 11.5 | 12.6 | ||||||
Current assets of discontinued operations and held-for-sale businesses | 9.5 | 315.6 | ||||||
Total current assets | 265.7 | 525.6 | ||||||
Property, plant & equipment: | ||||||||
Property, plant & equipment | 1,586.5 | 1,542.4 | ||||||
Less: Accumulated depreciation and amortization | (297.1 | ) | (269.1 | ) | ||||
1,289.4 | 1,273.3 | |||||||
Construction work in process | 31.3 | 46.5 | ||||||
Total net property, plant & equipment | 1,320.7 | 1,319.8 | ||||||
Other non-current assets: | ||||||||
Regulatory assets, non-current | 150.6 | 163.2 | ||||||
Intangible assets, net of amortization | 16.6 | 18.8 | ||||||
Other deferred assets | 23.9 | 13.8 | ||||||
Non-current assets of discontinued operations and held-for-sale businesses | 8.0 | 8.0 | ||||||
Total other non-current assets | 199.1 | 203.8 | ||||||
Total assets | $ | 1,785.5 | $ | 2,049.2 | ||||
LIABILITIES AND SHAREHOLDER'S DEFICIT | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt (Note 7) | $ | 4.6 | $ | 4.6 | ||||
Short-term debt | — | 10.0 | ||||||
Accounts payable | 46.9 | 48.9 | ||||||
Accrued taxes | 74.9 | 77.3 | ||||||
Accrued interest | 30.1 | 16.4 | ||||||
Customer security deposits | 20.5 | 21.8 | ||||||
Regulatory liabilities, current | 36.1 | 14.8 | ||||||
Other current liabilities | 14.0 | 16.2 | ||||||
Current liabilities of discontinued operations and held-for-sale businesses | 19.9 | 66.9 | ||||||
Total current liabilities | 247.0 | 276.9 | ||||||
Non-current liabilities: | ||||||||
Long-term debt (Note 7) | 1,471.4 | 1,700.2 | ||||||
Deferred taxes | 110.6 | 128.6 | ||||||
Taxes payable | 3.5 | 74.8 | ||||||
Regulatory liabilities, non-current | 239.7 | 221.2 | ||||||
Pension, retiree and other benefits | 82.7 | 90.3 | ||||||
Asset retirement obligations | 13.5 | 15.1 | ||||||
Other deferred credits | 8.0 | 8.5 | ||||||
Non-current liabilities of discontinued operations and held-for-sale businesses | 118.6 | 117.9 | ||||||
Total non-current liabilities | 2,048.0 | 2,356.6 | ||||||
Commitments and contingencies (Note 11) | ||||||||
Common shareholder's deficit | ||||||||
Common stock: | ||||||||
1,500 shares authorized; 1 share issued and outstanding at September 30, 2018 and December 31, 2017 | — | — | ||||||
Other paid-in capital | 2,360.8 | 2,330.4 | ||||||
Accumulated other comprehensive income | 2.8 | 0.8 | ||||||
Accumulated deficit | (2,873.1 | ) | (2,915.5 | ) | ||||
Total common shareholder's deficit | (509.5 | ) | (584.3 | ) | ||||
Total liabilities and shareholder's deficit | $ | 1,785.5 | $ | 2,049.2 |
DPL INC. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
Nine months ended September 30, | ||||||||
$ in millions | 2018 | 2017 | ||||||
Cash flows from operating activities: | ||||||||
Net income / (loss) | $ | 41.4 | $ | (29.3 | ) | |||
Adjustments to reconcile net income / (loss) to net cash from operating activities: | ||||||||
Depreciation and amortization | 62.4 | 81.8 | ||||||
Charge for early redemption of debt | 6.4 | 3.3 | ||||||
Deferred income taxes | (17.8 | ) | (3.5 | ) | ||||
Fixed-asset impairment | 2.8 | 66.4 | ||||||
Loss on disposal and sale of business, net | 13.2 | — | ||||||
Loss / (gain) on asset disposal, net | (0.6 | ) | 15.9 | |||||
Changes in certain assets and liabilities: | ||||||||
Accounts receivable, net | 34.4 | 15.8 | ||||||
Inventories | 14.7 | 9.5 | ||||||
Taxes applicable to subsequent years | 57.7 | 61.4 | ||||||
Deferred regulatory costs, net | (4.1 | ) | (6.5 | ) | ||||
Accounts payable | (17.4 | ) | (46.4 | ) | ||||
Accrued taxes | (47.1 | ) | (93.5 | ) | ||||
Accrued interest | 13.4 | 8.8 | ||||||
Customer security deposits | (1.3 | ) | 1.1 | |||||
Pension, retiree and other benefits | (4.0 | ) | 3.8 | |||||
Other | (1.2 | ) | (6.9 | ) | ||||
Net cash provided by operating activities | 152.9 | 81.7 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (75.8 | ) | (95.6 | ) | ||||
Proceeds from disposal and sale of business | 234.9 | — | ||||||
Payments on disposal and sale of business | (14.5 | ) | — | |||||
Proceeds from sale of property | 10.6 | — | ||||||
Insurance proceeds | 2.8 | 12.6 | ||||||
Other investing activities, net | (0.5 | ) | 0.2 | |||||
Net cash provided by / (used in) investing activities | 157.5 | (82.8 | ) | |||||
Cash flows from financing activities: | ||||||||
Repayment of long-term debt | (239.4 | ) | (122.1 | ) | ||||
Borrowings from revolving credit facilities | 30.0 | 80.0 | ||||||
Repayment of borrowings from revolving credit facilities | (40.0 | ) | (15.0 | ) | ||||
Net cash used in financing activities | (249.4 | ) | (57.1 | ) | ||||
Decrease in cash and restricted cash of discontinued operations and held-for-sale businesses | 1.5 | 27.0 | ||||||
Cash, cash equivalents, and restricted cash: | ||||||||
Net change | 62.5 | (31.2 | ) | |||||
Balance at beginning of period | 24.9 | 54.6 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 87.4 | $ | 23.4 | ||||
Supplemental cash flow information: | ||||||||
Interest paid, net of amounts capitalized | $ | 55.2 | $ | 69.0 | ||||
Income taxes paid / (refunded), net | $ | (2.0 | ) | $ | — | |||
Non-cash financing and investing activities: | ||||||||
Accruals for capital expenditures | $ | 7.6 | $ | 9.2 | ||||
Non-cash proceeds from sale of business | $ | 4.1 | $ | — | ||||
Non-cash capital contribution (Note 10) | $ | 30.2 | $ | — |
$ in millions | September 30, 2018 | December 31, 2017 | ||||||
Cash and cash equivalents | $ | 65.4 | $ | 24.5 | ||||
Restricted cash | 22.0 | 0.4 | ||||||
Cash, Cash Equivalents, and Restricted Cash, End of Period | $ | 87.4 | $ | 24.9 |
ASU Number and Name | Description | Date of Adoption | Effect on the financial statements upon adoption |
2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost | This standard changes the presentation of non-service costs associated with defined benefit plans and updates the guidance so that only the service cost component will be eligible for capitalization. Transition method: retrospective for presentation of non-service cost and prospective for the change in capitalization. | January 1, 2018 | The adoption of this standard resulted in a $(1.6) million reclassification of non-service pension and other postretirement benefit costs (credits) from Operating expense to Other income / (expense) - net for the nine months ended September 30, 2017. |
2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) | This standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Transition method: retrospective. | January 1, 2018 | The adoption of this standard resulted in a $27.0 million decrease in investing activities for the nine months ended September 30, 2017. |
2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities | The standard significantly revises an entity’s accounting related to (1) classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosures of financial instruments. Transition method: modified retrospective. Prospective for equity investments without readily determinable fair value. | January 1, 2018 | We adopted this standard January 1, 2018. At that date, we transferred $1.6 million ($1.0 million net of tax) of unrealized gains from AOCI to Retained Earnings. |
2014-09, 2015-14, 2016-08, 2016-10, 2016-12, 2016-20, 2017-05, 2017-13 Revenue from Contracts with Customers (Topic 606) | See "Adoption of FASC Topic 606, Revenue from Contracts with Customers" below. | January 1, 2018 | See impact upon adoption of the standard below. |
ASU Number and Name | Description | Date of Adoption | Effect on the financial statements upon adoption |
2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract | This standard aligns the accounting for implementation costs incurred for a cloud computing arrangement that is a service with the requirement for capitalizing implementation costs associated with developing or obtaining internal-use software. Transition method: retrospective or prospective. | January 1, 2020. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
2018-02, Income Statement — Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from AOCI | This amendment allows a reclassification of the stranded tax effects resulting from the implementation of the Tax Cuts and Jobs Act from AOCI to retained earnings. Because this amendment only relates to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. | January 1, 2019. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
2017-12, Derivatives and Hedging (Topic 815): Targeted improvements to Accounting for Hedging Activities | The standard updates the hedge accounting model to expand the ability to hedge nonfinancial and financial risk components, reduce complexity, and ease certain documentation and assessment requirements. When facts and circumstances are the same as at the previous quantitative test, a subsequent quantitative effectiveness test is not required. The standard also eliminates the requirement to separately measure and report hedge ineffectiveness. For cash flow hedges, this means that the entire change in the fair value of a hedging instrument will be recorded in other comprehensive income and amounts deferred will be reclassified to earnings in the same income statement line as the hedged item. Transition method: modified retrospective with the cumulative effect adjustment recorded to the opening balance of retained earnings as of the initial application date. Prospective for presentation and disclosures. | January 1, 2019. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities | This standard shortens the period of amortization for the premium on certain callable debt securities to the earliest call date. Transition method: modified retrospective. | January 1, 2019. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | The standard updates the impairment model for financial assets measured at amortized cost. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking "expected loss" model that generally will result in the earlier recognition of allowance for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses as it is done today, except that the losses will be recognized as an allowance rather than a reduction in the amortized cost of the securities. Transition method: various. | January 1, 2020. Early adoption is permitted only as of January 1, 2019. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. |
2016-02, 2018-01, 2018-10, 2018-11 Leases (Topic 842) | See "2016-02, 2018-01, 2018-10, 2018-11, Leases (Topic 842)" below. | January 1, 2019. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our consolidated financial statements. See below for the evaluation of the impact of its adoption. |
September 30, | December 31, | |||||||
$ in millions | 2018 | 2017 | ||||||
Accounts receivable, net: | ||||||||
Unbilled revenue | $ | 11.0 | $ | 18.0 | ||||
Customer receivables | 60.4 | 45.2 | ||||||
Due from PJM transmission enhancement settlement (a) | 21.7 | — | ||||||
Other | 3.5 | 2.5 | ||||||
Provision for uncollectible accounts | (1.1 | ) | (1.1 | ) | ||||
Total accounts receivable, net | $ | 95.5 | $ | 64.6 | ||||
Inventories, at average cost: | ||||||||
Fuel and limestone | $ | 2.0 | $ | 4.1 | ||||
Materials and supplies | 8.1 | 8.1 | ||||||
Other | 0.6 | 0.5 | ||||||
Total inventories, at average cost | $ | 10.7 | $ | 12.7 |
Details about Accumulated Other Comprehensive Income / (Loss) components | Affected line item in the Condensed Consolidated Statements of Operations | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
$ in millions | 2018 | 2017 | 2018 | 2017 | ||||||||||||||
Gains and losses on equity securities (Note 5): | ||||||||||||||||||
Other income | $ | — | $ | — | $ | — | $ | (0.1 | ) | |||||||||
Retained earnings | — | — | (1.6 | ) | — | |||||||||||||
Tax benefit | — | — | 0.6 | — | ||||||||||||||
Net of income taxes | — | — | (1.0 | ) | (0.1 | ) | ||||||||||||
Gains and losses on cash flow hedges (Note 6): | ||||||||||||||||||
Interest expense | (0.3 | ) | (0.2 | ) | (0.9 | ) | (0.8 | ) | ||||||||||
Tax benefit | 0.1 | 0.1 | 0.3 | 0.3 | ||||||||||||||
Net of income taxes | (0.2 | ) | (0.1 | ) | (0.6 | ) | (0.5 | ) | ||||||||||
Gain / (loss) from discontinued operations | — | (3.5 | ) | 4.3 | (8.5 | ) | ||||||||||||
Tax benefit / (expense) from discontinued operations | — | 1.2 | (1.5 | ) | 3.0 | |||||||||||||
Net of income taxes | — | (2.3 | ) | 2.8 | (5.5 | ) | ||||||||||||
Amortization of defined benefit pension items (Note 9): | ||||||||||||||||||
Other income | 0.2 | — | 0.5 | 1.4 | ||||||||||||||
Tax expense | (0.1 | ) | — | (0.1 | ) | (0.5 | ) | |||||||||||
Net of income taxes | 0.1 | — | 0.4 | 0.9 | ||||||||||||||
Total reclassifications for the period, net of income taxes | $ | (0.1 | ) | $ | (2.4 | ) | $ | 1.6 | $ | (5.2 | ) |
$ in millions | Gains / (losses) on equity securities | Gains / (losses) on cash flow hedges | Change in unfunded pension obligation | Total | ||||||||||||
Balance at January 1, 2018 | $ | 1.0 | $ | 14.7 | $ | (14.9 | ) | $ | 0.8 | |||||||
Other comprehensive income before reclassifications | — | 0.4 | — | 0.4 | ||||||||||||
Amounts reclassified from AOCI to earnings | — | 2.2 | 0.4 | 2.6 | ||||||||||||
Amounts reclassified from AOCI to Retained earnings | (1.0 | ) | — | — | (1.0 | ) | ||||||||||
Net current period other comprehensive income / (loss) | (1.0 | ) | 2.6 | 0.4 | 2.0 | |||||||||||
Balance at September 30, 2018 | $ | — | $ | 17.3 | $ | (14.5 | ) | $ | 2.8 |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
$ in millions | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Loss on disposal and sale of businesses | $ | — | $ | — | $ | 11.7 | $ | — | ||||||||
Fixed-asset impairment | 1.6 | — | 2.8 | — | ||||||||||||
Other | — | (0.4 | ) | 0.1 | (0.4 | ) | ||||||||||
Net other expense / (income) | $ | 1.6 | $ | (0.4 | ) | $ | 14.6 | $ | (0.4 | ) |
$ in millions | ||||
Balance at January 1, 2018 | $ | 15.1 | ||
Revisions to cash flow and timing estimates | 1.6 | |||
Accretion expense | 0.2 | |||
Settlements | (3.4 | ) | ||
Balance at September 30, 2018 | $ | 13.5 |
September 30, 2018 | December 31, 2017 | |||||||||||||||
$ in millions | Cost | Fair Value | Cost | Fair Value | ||||||||||||
Assets | ||||||||||||||||
Money market funds | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 0.3 | ||||||||
Equity securities | 2.4 | 4.1 | 2.5 | 4.2 | ||||||||||||
Debt securities | 4.1 | 4.0 | 4.3 | 4.3 | ||||||||||||
Hedge funds | 0.2 | 0.2 | 0.1 | 0.2 | ||||||||||||
Tangible assets | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
Total Assets | $ | 7.1 | $ | 8.7 | $ | 7.3 | $ | 9.1 | ||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Liabilities | ||||||||||||||||
Long-term debt | $ | 1,476.0 | $ | 1,560.1 | $ | 1,704.8 | $ | 1,819.3 |
$ in millions | Fair value at September 30, 2018 (a) | Fair value at December 31, 2017 (a) | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Master Trust assets | ||||||||||||||||||||||||||||||||
Money market funds | $ | 0.3 | $ | — | $ | — | $ | 0.3 | $ | 0.3 | $ | — | $ | — | $ | 0.3 | ||||||||||||||||
Equity securities | — | 4.1 | — | 4.1 | — | 4.2 | — | 4.2 | ||||||||||||||||||||||||
Debt securities | — | 4.0 | — | 4.0 | — | 4.3 | — | 4.3 | ||||||||||||||||||||||||
Hedge funds | — | 0.2 | — | 0.2 | — | 0.2 | — | 0.2 | ||||||||||||||||||||||||
Tangible assets | — | 0.1 | — | 0.1 | — | 0.1 | — | 0.1 | ||||||||||||||||||||||||
Total Master Trust assets | 0.3 | 8.4 | — | 8.7 | 0.3 | 8.8 | — | 9.1 | ||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||
Interest rate hedges | — | 2.2 | — | 2.2 | — | 1.8 | — | 1.8 | ||||||||||||||||||||||||
Total Derivative assets | — | 2.2 | — | 2.2 | — | 1.8 | — | 1.8 | ||||||||||||||||||||||||
Total Assets | $ | 0.3 | $ | 10.6 | $ | — | $ | 10.9 | $ | 0.3 | $ | 10.6 | $ | — | $ | 10.9 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 1,542.4 | $ | 17.7 | $ | 1,560.1 | $ | — | $ | 1,801.5 | $ | 17.8 | $ | 1,819.3 | ||||||||||||||||
Total Liabilities | $ | — | $ | 1,542.4 | $ | 17.7 | $ | 1,560.1 | $ | — | $ | 1,801.5 | $ | 17.8 | $ | 1,819.3 |
(a) | Includes credit valuation adjustment |
• | Level 1 inputs are used for money market accounts that are considered cash equivalents. The fair value is determined by reference to quoted market prices and other relevant information generated by market transactions. |
• | Level 2 inputs are used to value derivatives such as interest rate hedge contracts which are valued using a benchmark interest rate. Other Level 2 assets include open-ended mutual funds in the Master Trust, which are valued using the end of day NAV per unit. |
• | Level 3 inputs such as certain debt balances are considered a Level 3 input because the notes are not publicly traded. Our long-term debt is fair valued for disclosure purposes only. |
Three months ended | Three months ended | |||||||||||||||
September 30, 2018 | September 30, 2017 | |||||||||||||||
Interest | Interest | |||||||||||||||
$ in millions (net of tax) | Power | Rate Hedge | Power | Rate Hedge | ||||||||||||
Beginning accumulated derivative gains in AOCI | $ | — | $ | 17.4 | $ | 3.0 | $ | 17.2 | ||||||||
Net gains associated with current period hedging transactions | — | 0.1 | 1.3 | 0.1 | ||||||||||||
Net losses reclassified to earnings | ||||||||||||||||
Interest expense | — | (0.2 | ) | — | (0.2 | ) | ||||||||||
Loss from discontinued operations | — | — | (2.2 | ) | — | |||||||||||
Ending accumulated derivative gains in AOCI | $ | — | $ | 17.3 | $ | 2.1 | $ | 17.1 | ||||||||
Nine months ended | Nine months ended | |||||||||||||||
September 30, 2018 | September 30, 2017 | |||||||||||||||
Interest | Interest | |||||||||||||||
$ in millions (net of tax) | Power | Rate Hedge | Power | Rate Hedge | ||||||||||||
Beginning accumulated derivative gains / (losses) in AOCI | $ | (2.8 | ) | $ | 17.5 | $ | (4.3 | ) | $ | 17.4 | ||||||
Net gains associated with current period hedging transactions | — | 0.4 | 11.9 | 0.2 | ||||||||||||
Net gains / (losses) reclassified to earnings | ||||||||||||||||
Interest expense | — | (0.6 | ) | — | (0.5 | ) | ||||||||||
Gain / (loss) from discontinued operations | 2.8 | — | (5.5 | ) | — | |||||||||||
Ending accumulated derivative gains in AOCI | $ | — | $ | 17.3 | $ | 2.1 | $ | 17.1 | ||||||||
Portion expected to be reclassified to earnings in the next twelve months | $ | (0.8 | ) | |||||||||||||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 23 |
Fair Values of Derivative Instruments | ||||||||||||||||||
at September 30, 2018 | ||||||||||||||||||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Condensed Consolidated Balance Sheets (a) | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Fair Value | |||||||||||||
Assets | ||||||||||||||||||
Short-term derivative positions (presented in Other prepayments and current assets) | ||||||||||||||||||
Interest rate swap | Designated | $ | 0.9 | $ | — | $ | — | $ | 0.9 | |||||||||
Long-term derivative positions (presented in Other deferred assets) | ||||||||||||||||||
Interest rate swap | Designated | 1.3 | — | — | 1.3 | |||||||||||||
Total assets | $ | 2.2 | $ | — | $ | — | $ | 2.2 |
(a) | Includes credit valuation adjustment. |
Fair Values of Derivative Instruments | ||||||||||||||||||
at December 31, 2017 | ||||||||||||||||||
Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | ||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Condensed Consolidated Balance Sheets (a) | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Fair Value | |||||||||||||
Assets | ||||||||||||||||||
Long-term derivative positions (presented in Other deferred assets) | ||||||||||||||||||
Interest rate swaps | Designated | $ | 1.8 | $ | — | $ | — | $ | 1.8 | |||||||||
Total assets | $ | 1.8 | $ | — | $ | — | $ | 1.8 |
(a) | Includes credit valuation adjustment. |
Interest | September 30, | December 31, | ||||||||||
$ in millions | Rate | Maturity | 2018 | 2017 | ||||||||
Term loan - rates from 3.57% - 4.82% (a) and 4.01% - 4.60% (b) | 2022 | $ | 437.2 | $ | 440.6 | |||||||
Tax-exempt First Mortgage Bonds - rates from 2.50% - 2.72% (a) and 1.52% - 1.92% (b) | 2020 | 140.0 | 200.0 | |||||||||
U.S. Government note | 4.2% | 2061 | 17.7 | 17.8 | ||||||||
Unamortized deferred financing costs | (6.7 | ) | (9.8 | ) | ||||||||
Unamortized long-term debt discounts and premiums, net | (1.5 | ) | (2.0 | ) | ||||||||
Total long-term debt at consolidated subsidiary | 586.7 | 646.6 | ||||||||||
Bank term loan - rates from 3.82% - 3.90% (a) and 3.02% - 4.10% (b) | 2020 | — | 70.0 | |||||||||
Senior unsecured notes | 6.75% | 2019 | 99.0 | 200.0 | ||||||||
Senior unsecured notes | 7.25% | 2021 | 780.0 | 780.0 | ||||||||
Note to DPL Capital Trust II (c) | 8.125% | 2031 | 15.6 | 15.6 | ||||||||
Unamortized deferred financing costs | (4.8 | ) | (6.9 | ) | ||||||||
Unamortized long-term debt discounts and premiums, net | (0.5 | ) | (0.5 | ) | ||||||||
Total long-term debt | 1,476.0 | 1,704.8 | ||||||||||
Less: current portion | (4.6 | ) | (4.6 | ) | ||||||||
Long-term debt, net of current portion | $ | 1,471.4 | $ | 1,700.2 |
(a) | Range of interest rates for the nine months ended September 30, 2018. |
(b) | Range of interest rates for the year ended December 31, 2017. |
(c) | Note payable to related party. |
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
2018 | 2017 | 2018 | 2017 | |||||
DPL | 15.7% | 63.0% | 10.9% | 39.1% |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
$ in millions | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Service cost | $ | 1.5 | $ | 1.5 | $ | 4.5 | $ | 4.3 | ||||||||
Interest cost | 3.4 | 3.5 | 10.3 | 10.6 | ||||||||||||
Expected return on plan assets | (5.3 | ) | (5.7 | ) | (15.9 | ) | (17.1 | ) | ||||||||
Plan curtailment (a) | — | — | — | 4.1 | ||||||||||||
Amortization of unrecognized: | ||||||||||||||||
Prior service cost | 0.3 | 0.2 | 0.8 | 0.8 | ||||||||||||
Actuarial loss | 1.6 | 1.3 | 4.8 | 4.0 | ||||||||||||
Net periodic benefit cost | $ | 1.5 | $ | 0.8 | $ | 4.5 | $ | 6.7 |
(a) | As a result of the decision to retire certain of DPL's coal-fired plants, we recognized a plan curtailment of $4.1 million in the first quarter of 2017. |
$ in millions | ||||
Estimated balance to be paid during | Pension | |||
2018 | $ | 7.1 | ||
2019 | $ | 28.2 | ||
2020 | $ | 27.9 | ||
2021 | $ | 27.6 | ||
2022 | $ | 27.3 | ||
2023 - 2027 | $ | 131.3 |
• | 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; |
• | 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. The majority of solid waste created from the combustion of coal and fossil fuels consists of fly ash and other coal combustion by-products. |
$ in millions | Utility | Other (a) | Adjustments and Eliminations | DPL Consolidated | ||||||||||||
Three months ended September 30, 2018 | ||||||||||||||||
Revenues from external customers | $ | 198.5 | $ | 9.2 | $ | — | $ | 207.7 | ||||||||
Intersegment revenues | 0.2 | 0.7 | (0.9 | ) | — | |||||||||||
Total revenues | $ | 198.7 | $ | 9.9 | $ | (0.9 | ) | $ | 207.7 | |||||||
Depreciation and amortization | $ | 19.1 | $ | 0.6 | $ | — | $ | 19.7 | ||||||||
Interest expense | $ | 5.8 | $ | 16.8 | $ | — | $ | 22.6 | ||||||||
Income / (loss) from continuing operations before income tax | $ | 37.5 | $ | (17.7 | ) | $ | — | $ | 19.8 | |||||||
Cash capital expenditures | $ | 20.5 | $ | 4.6 | $ | — | $ | 25.1 | ||||||||
$ in millions | Utility | Other (a) | Adjustments and Eliminations | DPL Consolidated | ||||||||||||
Three Months Ended September 30, 2017 | ||||||||||||||||
Revenues from external customers | $ | 184.0 | $ | 7.7 | $ | — | $ | 191.7 | ||||||||
Intersegment revenues | 0.2 | 0.9 | (1.1 | ) | — | |||||||||||
Total revenues | $ | 184.2 | $ | 8.6 | $ | (1.1 | ) | $ | 191.7 | |||||||
Depreciation and amortization | $ | 19.6 | $ | 0.2 | $ | — | $ | 19.8 | ||||||||
Interest expense | $ | 7.9 | $ | 19.9 | $ | — | $ | 27.8 | ||||||||
Income / (loss) from continuing operations before income tax | $ | 20.0 | $ | (22.7 | ) | $ | — | $ | (2.7 | ) | ||||||
Cash capital expenditures | $ | 20.6 | $ | 8.6 | $ | — | $ | 29.2 | ||||||||
$ in millions | Utility | Other (a) | Adjustments and Eliminations | DPL Consolidated | ||||||||||||
Nine months ended September 30, 2018 | ||||||||||||||||
Revenues from external customers | $ | 562.9 | $ | 28.6 | $ | — | $ | 591.5 | ||||||||
Intersegment revenues | 0.6 | 2.1 | (2.7 | ) | — | |||||||||||
Total revenues | $ | 563.5 | $ | 30.7 | $ | (2.7 | ) | $ | 591.5 | |||||||
Depreciation and amortization | $ | 56.5 | $ | 2.3 | $ | — | $ | 58.8 | ||||||||
Interest expense | $ | 20.5 | $ | 53.9 | $ | — | $ | 74.4 | ||||||||
Income / (loss) from continuing operations before income tax | $ | 73.9 | $ | (60.2 | ) | $ | — | $ | 13.7 | |||||||
Cash capital expenditures | $ | 65.0 | $ | 10.8 | $ | — | $ | 75.8 | ||||||||
At September 30, 2018 | ||||||||||||||||
Total assets | $ | 1,678.4 | $ | 510.6 | $ | (403.5 | ) | $ | 1,785.5 | |||||||
$ in millions | Utility | Other (a) | Adjustments and Eliminations | DPL Consolidated | ||||||||||||
Nine months ended September 30, 2017 | ||||||||||||||||
Revenues from external customers | $ | 541.7 | $ | 20.0 | $ | — | $ | 561.7 | ||||||||
Intersegment revenues | 0.8 | 3.6 | (4.4 | ) | — | |||||||||||
Total revenues | $ | 542.5 | $ | 23.6 | $ | (4.4 | ) | $ | 561.7 | |||||||
Depreciation and amortization | $ | 56.3 | $ | 0.6 | $ | — | $ | 56.9 | ||||||||
Interest expense | $ | 23.5 | $ | 59.2 | $ | — | $ | 82.7 | ||||||||
Income / (loss) from continuing operations before income tax | $ | 60.1 | $ | (72.9 | ) | $ | — | $ | (12.8 | ) | ||||||
Cash capital expenditures | $ | 66.3 | $ | 29.3 | $ | — | $ | 95.6 | ||||||||
At December 31, 2017 | ||||||||||||||||
Total assets | $ | 1,689.4 | $ | 743.0 | $ | (383.2 | ) | $ | 2,049.2 |
(a) | "Other" includes Cash capital expenditures and Total assets related to the assets of discontinued operations and held-for-sale businesses for all periods presented. |
$ in millions | Utility | Other | Adjustments and Eliminations | Total | ||||||||||||
Three Months Ended September 30, 2018 | ||||||||||||||||
Retail Revenue | ||||||||||||||||
Retail revenue from contracts with customers | $ | 168.4 | $ | — | $ | (0.4 | ) | $ | 168.0 | |||||||
Other retail revenues (a) | 12.6 | — | — | 12.6 | ||||||||||||
Wholesale Revenue | ||||||||||||||||
Wholesale revenue from contracts with customers | 4.9 | 5.6 | — | 10.5 | ||||||||||||
RTO revenue | 10.8 | (0.1 | ) | — | 10.7 | |||||||||||
RTO capacity revenues | 2.0 | 1.7 | — | 3.7 | ||||||||||||
Other revenues from contracts with customers (b) | — | 2.2 | — | 2.2 | ||||||||||||
Other revenues | — | 0.5 | (0.5 | ) | — | |||||||||||
Total revenues | $ | 198.7 | $ | 9.9 | $ | (0.9 | ) | $ | 207.7 | |||||||
Nine months ended September 30, 2018 | ||||||||||||||||
Retail Revenue | ||||||||||||||||
Retail revenue from contracts with customers | $ | 469.3 | $ | — | $ | (0.8 | ) | $ | 468.5 | |||||||
Other retail revenues (a) | 31.4 | — | — | 31.4 | ||||||||||||
Wholesale Revenue | ||||||||||||||||
Wholesale revenue from contracts with customers | 24.6 | 16.7 | — | 41.3 | ||||||||||||
RTO revenue | 32.4 | 0.1 | — | 32.5 | ||||||||||||
RTO capacity revenues | 5.8 | 4.7 | — | 10.5 | ||||||||||||
Other revenues from contracts with customers (b) | — | 7.3 | — | 7.3 | ||||||||||||
Other revenues | — | 1.9 | (1.9 | ) | — | |||||||||||
Total revenues | $ | 563.5 | $ | 30.7 | $ | (2.7 | ) | $ | 591.5 |
(a) | Other retail revenue primarily includes alternative revenue programs not accounted for under FASC 606. Accounts receivable balances associated with these revenues were $6.0 million as of September 30, 2018. |
(b) | Other revenues from contracts with customers primarily includes revenues for various services provided by Miami Valley Lighting. |
$ in millions | September 30, 2018 | December 31, 2017 | ||||||
Restricted cash | $ | — | $ | 1.5 | ||||
Accounts receivable, net | 6.2 | 37.9 | ||||||
Inventories | 0.1 | 19.4 | ||||||
Taxes applicable to subsequent years | 0.1 | 7.4 | ||||||
Other prepayments and current assets | 3.1 | 17.4 | ||||||
Property, plant & equipment, net | 1.8 | 233.9 | ||||||
Intangible assets, net | 6.2 | 5.5 | ||||||
Other deferred assets | — | 0.6 | ||||||
Total assets of the disposal group classified as assets of discontinued operations and held-for-sale businesses in the balance sheets | $ | 17.5 | $ | 323.6 | ||||
Accounts payable | $ | 7.7 | $ | 25.1 | ||||
Accrued taxes | 5.1 | 6.3 | ||||||
Other current liabilities | 7.1 | 30.0 | ||||||
Long-term debt (a) | — | 0.3 | ||||||
Deferred taxes (b) | (14.1 | ) | (17.4 | ) | ||||
Taxes payable | — | 7.4 | ||||||
Pension, retiree and other benefits | 9.7 | 10.6 | ||||||
Asset retirement obligations | 117.2 | 116.6 | ||||||
Other deferred credits | 5.8 | 5.9 | ||||||
Total liabilities of the disposal group classified as liabilities of discontinued operations and held-for-sale businesses in the balance sheets | $ | 138.5 | $ | 184.8 |
(a) | Long-term debt relates to capital leases. |
(b) | Deferred taxes represent the tax asset position of the discontinued group of components, which were netted with liabilities on DPL prior to classification as discontinued operations. |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
$ in millions | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | $ | 15.6 | $ | 132.1 | $ | 141.8 | $ | 384.2 | ||||||||
Cost of revenues | (6.8 | ) | (63.3 | ) | (67.4 | ) | (198.5 | ) | ||||||||
Operating and other expenses | (3.8 | ) | (38.0 | ) | (37.7 | ) | (152.9 | ) | ||||||||
Fixed-asset impairment | — | — | — | (66.4 | ) | |||||||||||
Income / (loss) from discontinued operations | 5.0 | 30.8 | 36.7 | (33.6 | ) | |||||||||||
Gain / (loss) from disposal of discontinued operations | 0.3 | — | (1.6 | ) | — | |||||||||||
Income tax expense / (benefit) from discontinued operations | 1.0 | 7.9 | 5.9 | (12.1 | ) | |||||||||||
Net income / (loss) from discontinued operations | $ | 4.3 | $ | 22.9 | $ | 29.2 | $ | (21.5 | ) |
THE DAYTON POWER AND LIGHT COMPANY | ||||||||||||||||
Condensed Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
$ in millions | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | $ | 198.7 | $ | 184.2 | $ | 563.5 | $ | 542.5 | ||||||||
Cost of revenues: | ||||||||||||||||
Net fuel cost | 0.1 | — | 1.7 | — | ||||||||||||
Net purchased power cost | 83.0 | 74.4 | 235.7 | 222.0 | ||||||||||||
Total cost of revenues | 83.1 | 74.4 | 237.4 | 222.0 | ||||||||||||
Gross margin | 115.6 | 109.8 | 326.1 | 320.5 | ||||||||||||
Operating expenses: | ||||||||||||||||
Operation and maintenance | 33.8 | 42.1 | 105.9 | 120.2 | ||||||||||||
Depreciation and amortization | 19.1 | 19.6 | 56.5 | 56.3 | ||||||||||||
General taxes | 19.0 | 19.3 | 54.3 | 57.8 | ||||||||||||
Loss / (gain) on asset disposal | — | (0.3 | ) | 0.1 | (0.3 | ) | ||||||||||
Loss on disposal of business (Note 14): | — | — | 12.4 | — | ||||||||||||
Total operating expenses | 71.9 | 80.7 | 229.2 | 234.0 | ||||||||||||
Operating income | 43.7 | 29.1 | 96.9 | 86.5 | ||||||||||||
Other expense: | ||||||||||||||||
Interest expense | (5.8 | ) | (7.9 | ) | (20.5 | ) | (23.5 | ) | ||||||||
Charge for early redemption of debt | — | (1.0 | ) | (0.6 | ) | (1.1 | ) | |||||||||
Other expense | (0.4 | ) | (0.2 | ) | (1.9 | ) | (1.8 | ) | ||||||||
Total other expense | (6.2 | ) | (9.1 | ) | (23.0 | ) | (26.4 | ) | ||||||||
Income from continuing operations before income tax | 37.5 | 20.0 | 73.9 | 60.1 | ||||||||||||
Income tax expense / (benefit) from continuing operations | 6.3 | (0.9 | ) | 12.0 | 10.9 | |||||||||||
Net income from continuing operations | 31.2 | 20.9 | 61.9 | 49.2 | ||||||||||||
Discontinued operations (Note 13): | ||||||||||||||||
Income / (loss) from discontinued operations before income tax | — | 21.2 | — | (56.3 | ) | |||||||||||
Income tax expense / (benefit) from discontinued operations | — | 12.8 | — | (10.7 | ) | |||||||||||
Net income / (loss) from discontinued operations | — | 8.4 | — | (45.6 | ) | |||||||||||
Net income | $ | 31.2 | $ | 29.3 | $ | 61.9 | $ | 3.6 |
THE DAYTON POWER AND LIGHT COMPANY | ||||||||||||||||
Condensed Statements of Comprehensive Income | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
$ in millions | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 31.2 | $ | 29.3 | $ | 61.9 | $ | 3.6 | ||||||||
Equity securities activity: | ||||||||||||||||
Change in fair value of equity securities, net of income tax expense of $0.0, $(0.1), $0.0 and $(0.2) for each respective period | — | 0.1 | — | 0.4 | ||||||||||||
Reclassification to earnings, net of income tax benefit of $0.0 for each respective period | — | — | — | (0.1 | ) | |||||||||||
Reclassification to Retained earnings, net of income tax benefit of $0.0, $0.0, $0.6 and $0.0 for each respective period | — | — | (1.1 | ) | — | |||||||||||
Total change in fair value of equity securities | — | 0.1 | (1.1 | ) | 0.3 | |||||||||||
Derivative activity: | ||||||||||||||||
Change in derivative fair value, net of income tax expense of $(0.1), $(0.8), $(0.1) and $(6.6) for each respective period | — | 1.4 | 0.5 | 12.1 | ||||||||||||
Reclassification to earnings, net of income tax benefit of $0.1, $0.1, $0.6 and $0.3 for each respective period | (0.2 | ) | (0.2 | ) | (0.5 | ) | (0.5 | ) | ||||||||
Reclassification of earnings related to discontinued operations, net of income tax benefit of $0.0, $1.3, $0.0 and $3.0 for each respective period | — | (2.2 | ) | — | (5.5 | ) | ||||||||||
Total change in fair value of derivatives | (0.2 | ) | (1.0 | ) | — | 6.1 | ||||||||||
Pension and postretirement activity: | ||||||||||||||||
Prior service costs for the period, net of income tax benefit of $0.0, $0.0, $0.0 and $0.6 for each respective period | — | — | — | (1.1 | ) | |||||||||||
Net loss for period, net of income tax benefit of $0.0, $0.0, $0.0 and $0.2 for each respective period | — | — | — | (0.5 | ) | |||||||||||
Reclassification to earnings, net of income tax expense of $(0.2), $(0.4), $(0.7) and $(2.1) for each respective period | 0.9 | 0.7 | 2.5 | 3.8 | ||||||||||||
Total pension and postretirement adjustments | 0.9 | 0.7 | 2.5 | 2.2 | ||||||||||||
Other comprehensive income / (loss) | 0.7 | (0.2 | ) | 1.4 | 8.6 | |||||||||||
Net comprehensive income | $ | 31.9 | $ | 29.1 | $ | 63.3 | $ | 12.2 |
THE DAYTON POWER AND LIGHT COMPANY | ||||||||
Condensed Balance Sheets | ||||||||
(Unaudited) | ||||||||
$ in millions | September 30, 2018 | December 31, 2017 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 10.7 | $ | 5.2 | ||||
Restricted cash | 2.0 | 0.4 | ||||||
Accounts receivable, net (Note 2) | 103.0 | 70.8 | ||||||
Inventories (Note 2) | 7.5 | 7.3 | ||||||
Taxes applicable to subsequent years | 17.1 | 71.1 | ||||||
Regulatory assets, current | 34.0 | 23.9 | ||||||
Other prepayments and current assets | 11.7 | 14.6 | ||||||
Total current assets | 186.0 | 193.3 | ||||||
Property, plant & equipment: | ||||||||
Property, plant & equipment | 2,253.8 | 2,247.2 | ||||||
Less: Accumulated depreciation and amortization | (980.3 | ) | (987.3 | ) | ||||
1,273.5 | 1,259.9 | |||||||
Construction work in process | 29.8 | 41.5 | ||||||
Total net property, plant & equipment | 1,303.3 | 1,301.4 | ||||||
Other non-current assets: | ||||||||
Regulatory assets, non-current | 150.6 | 163.2 | ||||||
Intangible assets, net of amortization | 15.4 | 18.8 | ||||||
Other deferred assets | 23.1 | 12.7 | ||||||
Total other non-current assets | 189.1 | 194.7 | ||||||
Total assets | $ | 1,678.4 | $ | 1,689.4 | ||||
LIABILITIES AND SHAREHOLDER'S EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of long-term debt (Note 7) | $ | 4.6 | $ | 4.6 | ||||
Short-term debt (Note 7) | — | 10.0 | ||||||
Accounts payable | 44.1 | 46.6 | ||||||
Accrued taxes | 82.5 | 70.1 | ||||||
Accrued interest | 0.7 | 0.8 | ||||||
Customer security deposits | 20.5 | 21.8 | ||||||
Regulatory liabilities, current | 36.1 | 14.8 | ||||||
Other current liabilities | 11.2 | 12.9 | ||||||
Total current liabilities | 199.7 | 181.6 | ||||||
Non-current liabilities: | ||||||||
Long-term debt (Note 7) | 582.1 | 642.0 | ||||||
Deferred taxes | 125.3 | 131.0 | ||||||
Taxes payable | 4.8 | 75.8 | ||||||
Regulatory liabilities, non-current | 239.7 | 221.2 | ||||||
Pension, retiree and other benefits | 83.5 | 91.1 | ||||||
Asset retirement obligations | 4.7 | 8.0 | ||||||
Other deferred credits | 7.6 | 8.0 | ||||||
Total non-current liabilities | 1,047.7 | 1,177.1 | ||||||
Commitments and contingencies (Note 11) | ||||||||
Common shareholder's equity: | ||||||||
Common stock, at par value of $0.01 per share | 0.4 | 0.4 | ||||||
250,000,000 shares authorized, 41,172,173 shares issued and outstanding | ||||||||
Other paid-in capital | 721.8 | 685.8 | ||||||
Accumulated other comprehensive loss | (34.8 | ) | (36.2 | ) | ||||
Accumulated deficit | (256.4 | ) | (319.3 | ) | ||||
Total common shareholder's equity | 431.0 | 330.7 | ||||||
Total liabilities and shareholder's equity | $ | 1,678.4 | $ | 1,689.4 |
THE DAYTON POWER AND LIGHT COMPANY | ||||||||
Condensed Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
Nine months ended September 30, | ||||||||
$ in millions | 2018 | 2017 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 61.9 | $ | 3.6 | ||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Depreciation and amortization | 56.5 | 68.2 | ||||||
Charge for early redemption of debt | 0.6 | 1.1 | ||||||
Deferred income taxes | (7.5 | ) | 1.6 | |||||
Fixed-asset impairment | — | 66.3 | ||||||
Loss on disposal of business | 12.4 | — | ||||||
Loss on asset disposal, net | — | 15.9 | ||||||
Changes in certain assets and liabilities: | ||||||||
Accounts receivable, net | (3.3 | ) | 20.5 | |||||
Inventories | (0.2 | ) | 10.0 | |||||
Taxes applicable to subsequent years | 54.0 | 60.0 | ||||||
Deferred regulatory costs, net | (4.1 | ) | (6.5 | ) | ||||
Accounts payable | (1.1 | ) | (58.4 | ) | ||||
Accrued taxes | (58.7 | ) | (83.9 | ) | ||||
Accrued interest | (0.3 | ) | (1.5 | ) | ||||
Customer security deposits | (1.3 | ) | 1.1 | |||||
Pension, retiree and other benefits | (3.1 | ) | 3.8 | |||||
Other | 7.4 | (3.1 | ) | |||||
Net cash provided by operating activities | 113.2 | 98.7 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (65.0 | ) | (82.4 | ) | ||||
Insurance proceeds | 0.1 | 12.5 | ||||||
Payments on disposal of business | (14.5 | ) | — | |||||
Proceeds from sale of property | 10.6 | — | ||||||
Other investing activities, net | (0.2 | ) | 0.2 | |||||
Net cash used in investing activities | (69.0 | ) | (69.7 | ) | ||||
Cash flows from financing activities: | ||||||||
Returns of capital paid to parent | (43.8 | ) | (19.0 | ) | ||||
Capital contributions from parent | 80.0 | 70.0 | ||||||
Borrowings from revolving credit facilities | 30.0 | 30.0 | ||||||
Repayment of borrowings from revolving credit facilities | (40.0 | ) | (15.0 | ) | ||||
Retirement of long-term debt | (63.3 | ) | (103.3 | ) | ||||
Issuance of short-term debt - related party | — | 30.0 | ||||||
Repayment of short-term debt - related party | — | (35.0 | ) | |||||
Net cash used in financing activities | (37.1 | ) | (42.3 | ) | ||||
Decrease in cash and restricted cash of discontinued operations and held-for-sale businesses | — | 27.0 | ||||||
Cash, cash equivalents, and restricted cash: | ||||||||
Net change | 7.1 | 13.7 | ||||||
Balance at beginning of period | 5.6 | 1.6 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 12.7 | $ | 15.3 | ||||
Supplemental cash flow information: | ||||||||
Interest paid, net of amounts capitalized | $ | 17.0 | $ | 22.3 | ||||
Income taxes paid, net | $ | 8.3 | $ | 22.2 | ||||
Non-cash financing and investing activities: | ||||||||
Accruals for capital expenditures | $ | 7.2 | $ | 7.7 |
$ in millions | September 30, 2018 | December 31, 2017 | ||||||
Cash and cash equivalents | $ | 10.7 | $ | 5.2 | ||||
Restricted cash | 2.0 | 0.4 | ||||||
Cash, Cash Equivalents, and Restricted Cash, End of Period | $ | 12.7 | $ | 5.6 |
ASU Number and Name | Description | Date of Adoption | Effect on the financial statements upon adoption |
2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost | This standard changes the presentation of non-service costs associated with defined benefit plans and updates the guidance so that only the service cost component will be eligible for capitalization. Transition method: retrospective for presentation of non-service cost and prospective for the change in capitalization. | January 1, 2018 | The adoption of this standard resulted in a $1.2 million reclassification of non-service pension and other postretirement benefit costs (credits) from Operating expense to Other income / (expense) - net for the nine months ended September 30, 2017. |
2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) | This standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Transition method: retrospective. | January 1, 2018 | The adoption of this standard resulted in a $27.0 million decrease in investing activities for the nine months ended September 30, 2017. |
2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities | The standard significantly revises an entity’s accounting related to (1) classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosures of financial instruments. Transition method: modified retrospective. Prospective for equity investments without readily determinable fair value. | January 1, 2018 | We adopted this standard January 1, 2018. At that date, we transferred $1.7 million ($1.1 million net of tax) of unrealized gains from AOCI to Retained Earnings. |
2014-09, 2015-14, 2016-08, 2016-10, 2016-12, 2016-20, 2017-05, 2017-13 Revenue from Contracts with Customers (Topic 606) | See "Adoption of FASC Topic 606, Revenue from Contracts with Customers" below. | January 1, 2018 | See impact upon adoption of the standard below. |
ASU Number and Name | Description | Date of Adoption | Effect on the financial statements upon adoption |
2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract | This standard aligns the accounting for implementation costs incurred for a cloud computing arrangement that is a service with the requirement for capitalizing implementation costs associated with developing or obtaining internal-use software. Transition method: retrospective or prospective. | January 1, 2020. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our financial statements. |
2018-02, Income Statement — Reporting Comprehensive Income (Topic 220), Reclassification of Certain Tax Effects from AOCI | This amendment allows a reclassification of the stranded tax effects resulting from the implementation of the Tax Cuts and Jobs Act from AOCI to retained earnings. Because this amendment only relates to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. | January 1, 2019. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our financial statements. |
2017-12, Derivatives and Hedging (Topic 815): Targeted improvements to Accounting for Hedging Activities | The standard updates the hedge accounting model to expand the ability to hedge nonfinancial and financial risk components, reduce complexity, and ease certain documentation and assessment requirements. When facts and circumstances are the same as at the previous quantitative test, a subsequent quantitative effectiveness test is not required. The standard also eliminates the requirement to separately measure and report hedge ineffectiveness. For cash flow hedges, this means that the entire change in the fair value of a hedging instrument will be recorded in other comprehensive income and amounts deferred will be reclassified to earnings in the same income statement line as the hedged item. Transition method: modified retrospective with the cumulative effect adjustment recorded to the opening balance of retained earnings as of the initial application date. Prospective for presentation and disclosures. | January 1, 2019. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our financial statements. |
2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities | This standard shortens the period of amortization for the premium on certain callable debt securities to the earliest call date. Transition method: modified retrospective. | January 1, 2019. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our financial statements. |
2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | The standard updates the impairment model for financial assets measured at amortized cost. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking "expected loss" model that generally will result in the earlier recognition of allowance for losses. For available-for-sale debt securities with unrealized losses, entities will measure credit losses as it is done today, except that the losses will be recognized as an allowance rather than a reduction in the amortized cost of the securities. Transition method: various. | January 1, 2020. Early adoption is permitted only as of January 1, 2019. | We are currently evaluating the impact of adopting the standard on our financial statements. |
ASU Number and Name | Description | Date of Adoption | Effect on the financial statements upon adoption |
2016-02, 2018-01, 2018-10, 2018-11 Leases (Topic 842) | See "2016-02, 2018-01, 2018-10, 2018-11, Leases (Topic 842)" below. | January 1, 2019. Early adoption is permitted. | We are currently evaluating the impact of adopting the standard on our financial statements. See below for the evaluation of the impact of its adoption. |
September 30, | December 31, | |||||||
$ in millions | 2018 | 2017 | ||||||
Accounts receivable, net: | ||||||||
Unbilled revenue | $ | 11.0 | $ | 18.0 | ||||
Customer receivables | 59.0 | 44.2 | ||||||
Amounts due from affiliates | 9.0 | 3.7 | ||||||
Due from PJM transmission enhancement settlement (a) | 21.7 | — | ||||||
Other | 3.4 | 6.0 | ||||||
Provision for uncollectible accounts | (1.1 | ) | (1.1 | ) | ||||
Total accounts receivable, net | $ | 103.0 | $ | 70.8 | ||||
Inventories, at average cost: | ||||||||
Materials and supplies | $ | 6.9 | $ | 6.9 | ||||
Other | 0.6 | 0.4 | ||||||
Total inventories, at average cost | $ | 7.5 | $ | 7.3 |
Details about Accumulated Other Comprehensive Income / (Loss) components | Affected line item in the Condensed Statements of Operations | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
$ in millions | 2018 | 2017 | 2018 | 2017 | ||||||||||||||
Gains and losses on equity securities activity (Note 5): | ||||||||||||||||||
Other income | $ | — | $ | — | $ | — | $ | (0.1 | ) | |||||||||
Retained earnings | — | — | (1.7 | ) | — | |||||||||||||
Tax benefit | — | — | 0.6 | — | ||||||||||||||
Net of income taxes | — | — | (1.1 | ) | (0.1 | ) | ||||||||||||
Gains and losses on cash flow hedges (Note 6): | ||||||||||||||||||
Interest expense | (0.3 | ) | (0.3 | ) | (1.1 | ) | (0.8 | ) | ||||||||||
Tax benefit from continuing operations | 0.1 | 0.1 | 0.6 | 0.3 | ||||||||||||||
Net of income taxes | (0.2 | ) | (0.2 | ) | (0.5 | ) | (0.5 | ) | ||||||||||
Gain from discontinued operations | — | (3.5 | ) | — | (8.5 | ) | ||||||||||||
Tax expense from discontinued operations | — | 1.3 | — | 3.0 | ||||||||||||||
Net of income taxes | — | (2.2 | ) | — | (5.5 | ) | ||||||||||||
Amortization of defined benefit pension items (Note 9): | ||||||||||||||||||
Other expense, net | 1.1 | 1.1 | 3.2 | 5.9 | ||||||||||||||
Tax expense | (0.2 | ) | (0.4 | ) | (0.7 | ) | (2.1 | ) | ||||||||||
Net of income taxes | 0.9 | 0.7 | 2.5 | 3.8 | ||||||||||||||
Total reclassifications for the period, net of income taxes | $ | 0.7 | $ | (1.7 | ) | $ | 0.9 | $ | (2.3 | ) |
$ in millions | Gains / (losses) on equity securities | Gains / (losses) on cash flow hedges | Change in unfunded pension obligation | Total | ||||||||||||
Balance at January 1, 2018 | $ | 1.1 | $ | 1.4 | $ | (38.7 | ) | $ | (36.2 | ) | ||||||
Other comprehensive income before reclassifications | — | 0.5 | — | 0.5 | ||||||||||||
Amounts reclassified from AOCI to earnings | — | (0.5 | ) | 2.5 | 2.0 | |||||||||||
Amounts reclassified from AOCI to Retained earnings | (1.1 | ) | — | — | (1.1 | ) | ||||||||||
Net current period other comprehensive income / (loss) | (1.1 | ) | — | 2.5 | 1.4 | |||||||||||
Balance at September 30, 2018 | $ | — | $ | 1.4 | $ | (36.2 | ) | $ | (34.8 | ) |
$ in millions | ||||
Balance at January 1, 2018 | $ | 8.0 | ||
Revisions to cash flow and timing estimates | 0.1 | |||
Settlements | (3.4 | ) | ||
Balance at September 30, 2018 | $ | 4.7 |
September 30, 2018 | December 31, 2017 | |||||||||||||||
$ in millions | Cost | Fair Value | Cost | Fair Value | ||||||||||||
Assets | ||||||||||||||||
Money market funds | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 0.3 | ||||||||
Equity securities | 2.4 | 4.1 | 2.5 | 4.2 | ||||||||||||
Debt securities | 4.1 | 4.0 | 4.3 | 4.3 | ||||||||||||
Hedge funds | 0.2 | 0.2 | 0.1 | 0.2 | ||||||||||||
Tangible assets | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||
Total assets | $ | 7.1 | $ | 8.7 | $ | 7.3 | $ | 9.1 | ||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Liabilities | ||||||||||||||||
Long-term debt | $ | 586.7 | $ | 594.9 | $ | 646.6 | $ | 658.4 |
$ in millions | Fair value at September 30, 2018 (a) | Fair value at December 31, 2017 (a) | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Master Trust assets | ||||||||||||||||||||||||||||||||
Money market funds | $ | 0.3 | $ | — | $ | — | $ | 0.3 | $ | 0.3 | $ | — | $ | — | $ | 0.3 | ||||||||||||||||
Equity securities | — | 4.1 | — | 4.1 | — | 4.2 | — | 4.2 | ||||||||||||||||||||||||
Debt securities | — | 4.0 | — | 4.0 | — | 4.3 | — | 4.3 | ||||||||||||||||||||||||
Hedge funds | — | 0.2 | — | 0.2 | — | 0.2 | — | 0.2 | ||||||||||||||||||||||||
Tangible assets | — | 0.1 | — | 0.1 | — | 0.1 | — | 0.1 | ||||||||||||||||||||||||
Total Master Trust assets | 0.3 | 8.4 | — | 8.7 | 0.3 | 8.8 | — | 9.1 | ||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||||||
Interest rate hedges | — | 2.2 | — | 2.2 | — | 1.8 | — | 1.8 | ||||||||||||||||||||||||
Total derivative assets | — | 2.2 | — | 2.2 | — | 1.8 | — | 1.8 | ||||||||||||||||||||||||
Total assets | $ | 0.3 | $ | 10.6 | $ | — | $ | 10.9 | $ | 0.3 | $ | 10.6 | $ | — | $ | 10.9 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Long-term debt | $ | — | $ | 577.2 | $ | 17.7 | 594.9 | $ | — | $ | 640.6 | $ | 17.8 | $ | 658.4 | |||||||||||||||||
Total liabilities | $ | — | $ | 577.2 | $ | 17.7 | $ | 594.9 | $ | — | $ | 640.6 | $ | 17.8 | $ | 658.4 |
(a) | Includes credit valuation adjustment |
• | Level 1 inputs are used for money market accounts that are considered cash equivalents. The fair value is determined by reference to quoted market prices and other relevant information generated by market transactions. |
• | Level 2 inputs are used to value derivatives such as interest rate hedge contracts which are valued using a benchmark interest rate. Other Level 2 assets include open-ended mutual funds in the Master Trust, which are valued using the end of day NAV per unit. |
• | Level 3 inputs such as certain debt balances are considered a Level 3 input because the notes are not publicly traded. Our long-term debt is fair valued for disclosure purposes only. |
Three months ended | Three months ended | |||||||||||
September 30, 2018 | September 30, 2017 | |||||||||||
Interest | Interest | |||||||||||
$ in millions (net of tax) | Rate Hedge | Power | Rate Hedge | |||||||||
Beginning accumulated derivative gains in AOCI | $ | 1.6 | $ | 3.0 | $ | 1.4 | ||||||
Net gains associated with current period hedging transactions | — | 1.3 | 0.1 | |||||||||
Net losses reclassified to earnings | ||||||||||||
Interest expense | (0.2 | ) | — | (0.2 | ) | |||||||
Net losses reclassified to discontinued operations | — | (2.2 | ) | — | ||||||||
Ending accumulated derivative gains in AOCI | $ | 1.4 | $ | 2.1 | $ | 1.3 | ||||||
Nine months ended | Nine months ended | |||||||||||
September 30, 2018 | September 30, 2017 | |||||||||||
Interest | Interest | |||||||||||
$ in millions (net of tax) | Rate Hedge | Power | Rate Hedge | |||||||||
Beginning accumulated derivative gains / (losses) in AOCI | $ | 1.4 | $ | (4.3 | ) | $ | 1.6 | |||||
Net gains associated with current period hedging transactions | 0.5 | 11.9 | 0.2 | |||||||||
Net losses reclassified to earnings | ||||||||||||
Interest expense | (0.5 | ) | — | (0.5 | ) | |||||||
Loss from discontinued operations | — | (5.5 | ) | — | ||||||||
Ending accumulated derivative gains in AOCI | $ | 1.4 | $ | 2.1 | $ | 1.3 | ||||||
Portion expected to be reclassified to earnings in the next twelve months | $ | (0.8 | ) | |||||||||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 23 |
Fair Values of Derivative Instruments | ||||||||||||||||||
at September 30, 2018 | ||||||||||||||||||
Gross Amounts Not Offset in the Condensed Balance Sheets | ||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Condensed Balance Sheets (a) | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Fair Value | |||||||||||||
Assets | ||||||||||||||||||
Short-term derivative positions (presented in Other prepayments and current assets) | ||||||||||||||||||
Interest rate swap | Designated | $ | 0.9 | $ | — | $ | — | $ | 0.9 | |||||||||
Long-term derivative positions (presented in Other deferred assets) | ||||||||||||||||||
Interest rate swap | Designated | 1.3 | 1.3 | |||||||||||||||
Total assets | $ | 2.2 | $ | — | $ | — | $ | 2.2 |
(a) | Includes credit valuation adjustment. |
Fair Values of Derivative Instruments | ||||||||||||||||||
at December 31, 2017 | ||||||||||||||||||
Gross Amounts Not Offset in the Condensed Balance Sheets | ||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Condensed Balance Sheets (a) | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Fair Value | |||||||||||||
Assets | ||||||||||||||||||
Long-term derivative positions (presented in Other deferred assets) | ||||||||||||||||||
Interest rate swaps | Designated | $ | 1.8 | $ | — | $ | — | $ | 1.8 | |||||||||
Total assets | $ | 1.8 | $ | — | $ | — | $ | 1.8 |
(a) | Includes credit valuation adjustment. |
Interest | September 30, | December 31, | ||||||||||
$ in millions | Rate | Maturity | 2018 | 2017 | ||||||||
Term loan - rates from 3.57% - 4.82% (a) and 4.01% - 4.60% (b) | 2022 | $ | 437.2 | $ | 440.6 | |||||||
Tax-exempt First Mortgage Bonds - rates from 2.50% - 2.72% (a) and 1.52% - 1.92% (b) | 2020 | 140.0 | 200.0 | |||||||||
U.S. Government note | 4.2% | 2061 | 17.7 | 17.8 | ||||||||
Unamortized deferred financing costs | (6.7 | ) | (9.8 | ) | ||||||||
Unamortized long-term debt discounts | (1.5 | ) | (2.0 | ) | ||||||||
Total long-term debt | 586.7 | 646.6 | ||||||||||
Less: current portion | (4.6 | ) | (4.6 | ) | ||||||||
Long-term debt, net of current portion | $ | 582.1 | $ | 642.0 |
(a) | Range of interest rates for the nine months ended September 30, 2018. |
(b) | Range of interest rates for the year ended December 31, 2017. |
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
2018 | 2017 | 2018 | 2017 | |||||
DP&L | 16.8% | (4.5)% | 16.2% | 18.1% |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
$ in millions | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Service cost | $ | 1.5 | $ | 1.5 | $ | 4.5 | $ | 4.3 | ||||||||
Interest cost | 3.4 | 3.5 | 10.3 | 10.6 | ||||||||||||
Expected return on plan assets | (5.3 | ) | (5.7 | ) | (15.9 | ) | (17.1 | ) | ||||||||
Plan curtailment (a) | — | — | — | 5.6 | ||||||||||||
Amortization of unrecognized: | ||||||||||||||||
Prior service cost | 0.4 | 0.3 | 1.1 | 1.1 | ||||||||||||
Actuarial loss | 2.4 | 2.1 | 7.1 | 6.6 | ||||||||||||
Net periodic benefit cost | $ | 2.4 | $ | 1.7 | $ | 7.1 | $ | 11.1 |
(a) | As a result of the decision to retire certain of DPL's coal-fired plants, we recognized a plan curtailment of $5.6 million in the first quarter of 2017. |
$ in millions | ||||
Estimated balance to be paid during | Pension | |||
2018 | $ | 7.1 | ||
2019 | $ | 28.2 | ||
2020 | $ | 27.9 | ||
2021 | $ | 27.6 | ||
2022 | $ | 27.3 | ||
2023 - 2027 | $ | 131.3 |
• | 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; |
• | 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. |
Three | Nine | |||||||
months ended | months ended | |||||||
$ in millions | September 30, 2018 | September 30, 2018 | ||||||
Retail Revenue | ||||||||
Retail revenue from contracts with customers | $ | 168.4 | $ | 469.3 | ||||
Other retail revenues (a) | 12.6 | 31.4 | ||||||
Wholesale Revenue | ||||||||
Wholesale revenue from contracts with customers | 4.9 | 24.6 | ||||||
RTO revenue | 10.8 | 32.4 | ||||||
RTO capacity revenues | 2.0 | 5.8 | ||||||
Total revenues | $ | 198.7 | $ | 563.5 |
(a) | Other retail revenue primarily includes alternative revenue programs not accounted for under FASC 606. Accounts receivable balances associated with these revenues were $6.0 million as of September 30, 2018. |
Three months ended | Nine months ended | |||||||
September 30, 2017 | September 30, 2017 | |||||||
Revenues | $ | 121.5 | $ | 358.4 | ||||
Cost of revenues | (62.0 | ) | (191.6 | ) | ||||
Operating and other expenses | (38.3 | ) | (156.8 | ) | ||||
Fixed-asset impairment | — | (66.3 | ) | |||||
Income / (loss) from discontinued operations | 21.2 | (56.3 | ) | |||||
Income tax expense / (benefit) from discontinued operations | 12.8 | (10.7 | ) | |||||
Net income / (loss) from discontinued operations | $ | 8.4 | $ | (45.6 | ) |
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
$ in millions | 2018 vs. 2017 | 2018 vs. 2017 | ||||||
Favorable impact of DMR rider following 2017 ESP | $ | 8.8 | $ | 25.6 | ||||
Higher retail revenue volumes driven by favorable weather | 10.9 | 30.3 | ||||||
Decrease due to higher purchased power volumes, driven by higher retail demand | (4.8 | ) | (22.2 | ) | ||||
Decrease due to higher legal and other consulting costs, including write-off of previously deferred rate case costs no longer deemed probable for recovery | (0.8 | ) | (6.8 | ) | ||||
Loss on transfer of Beckjord facility | — | (11.7 | ) | |||||
Lower interest expense due to debt payments made in 2017 and 2018 | 5.2 | 8.3 | ||||||
Other | 3.2 | 3.0 | ||||||
Net change in income / (loss) from continuing operations before income tax | $ | 22.5 | $ | 26.5 |
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
$ in millions | 2018 vs. 2017 | 2018 vs. 2017 | ||||||
Favorable impact of DMR rider following 2017 ESP | $ | 8.8 | $ | 25.6 | ||||
Higher retail revenue volumes driven by favorable weather | 10.9 | 30.2 | ||||||
Decrease due to higher purchased power volumes, driven by higher retail demand | (4.8 | ) | (23.0 | ) | ||||
Decrease due to higher legal and other consulting costs, including write-off of previously deferred rate case costs no longer deemed probable for recovery | (1.5 | ) | (7.4 | ) | ||||
Loss on transfer of Beckjord facility | — | (12.4 | ) | |||||
Lower interest expense due to debt payments made in 2017 and 2018 | 2.1 | 3.0 | ||||||
Other | 2.0 | (2.2 | ) | |||||
Net change in income / (loss) from continuing operations before income tax | $ | 17.5 | $ | 13.8 |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
$ in millions | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues: | ||||||||||||||||
Retail | $ | 180.6 | $ | 163.7 | $ | 499.9 | $ | 486.9 | ||||||||
Wholesale | 10.5 | 9.3 | 41.3 | 21.6 | ||||||||||||
RTO revenues | 10.7 | 12.5 | 32.5 | 35.7 | ||||||||||||
RTO capacity revenues | 3.7 | 3.3 | 10.5 | 8.7 | ||||||||||||
Other revenues | 2.2 | 2.9 | 7.3 | 8.8 | ||||||||||||
Total revenues | 207.7 | 191.7 | 591.5 | 561.7 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Net fuel cost | 4.6 | 3.3 | 12.7 | 7.6 | ||||||||||||
Purchased power: | ||||||||||||||||
Purchased power | 68.1 | 58.5 | 187.8 | 178.6 | ||||||||||||
RTO charges | 15.5 | 15.6 | 48.9 | 43.4 | ||||||||||||
RTO capacity charges | — | 0.6 | 2.2 | 0.8 | ||||||||||||
Net purchased power cost | 83.6 | 74.7 | 238.9 | 222.8 | ||||||||||||
Total cost of revenues | 88.2 | 78.0 | 251.6 | 230.4 | ||||||||||||
Gross margin | 119.5 | 113.7 | 339.9 | 331.3 | ||||||||||||
Operating expenses: | ||||||||||||||||
Operation and maintenance | 37.3 | 47.7 | 118.3 | 144.1 | ||||||||||||
Depreciation and amortization | 19.7 | 19.8 | 58.8 | 56.9 | ||||||||||||
General taxes | 19.0 | 19.3 | 54.5 | 58.5 | ||||||||||||
Other, net | 1.6 | (0.4 | ) | 14.6 | (0.4 | ) | ||||||||||
Total operating expenses | 77.6 | 86.4 | 246.2 | 259.1 | ||||||||||||
Operating income | 41.9 | 27.3 | 93.7 | 72.2 | ||||||||||||
Other income / (expense), net: | ||||||||||||||||
Interest expense | (22.6 | ) | (27.8 | ) | (74.4 | ) | (82.7 | ) | ||||||||
Charge for early redemption of debt | — | (3.0 | ) | (6.4 | ) | (3.3 | ) | |||||||||
Other income | 0.5 | 0.8 | 0.8 | 1.0 | ||||||||||||
Total other expense, net | (22.1 | ) | (30.0 | ) | (80.0 | ) | (85.0 | ) | ||||||||
Income / (loss) from continuing operations before income tax (a) | $ | 19.8 | $ | (2.7 | ) | $ | 13.7 | $ | (12.8 | ) |
(a) | For purposes of discussing operating results, we present and discuss Income / (loss) from continuing operations before income tax. This format is useful to investors because it allows analysis and comparability of operating trends and includes the same information that is used by management to make decisions regarding our financial performance. |
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Heating degree-days (a) | 47 | 78 | 3,498 | 2,763 | ||||||||
Cooling degree-days (a) | 811 | 584 | 1,262 | 862 |
(a) | Heating and cooling degree-days are a measure of the relative heating or cooling required for a home or business. The heating degrees in a day are calculated as the degrees that the average actual daily temperature is below 65 degrees Fahrenheit. For example, if the average temperature on March 20th was 40 degrees Fahrenheit, the heating degrees for that day would be the 25-degree difference between 65 degrees and 40 degrees. Similarly, cooling degrees in a day are calculated as the degrees that the average actual daily temperature is above 65 degrees Fahrenheit. |
ELECTRIC SALES AND CUSTOMERS (a) | ||||||||||||
DPL | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Retail electric sales (b) | 3,858 | 3,653 | 10,943 | 10,353 | ||||||||
Wholesale electric sales (c) | 311 | 252 | 831 | 674 | ||||||||
Total electric sales | 4,169 | 3,905 | 11,774 | 11,027 | ||||||||
Billed electric customers (end of period) | 523,535 | 520,211 |
(a) | Electric sales are presented in millions of KWh. |
(b) | DPL retail electric sales represent the total transmission and distribution retail sales for the periods presented. SSO sales were 1,056 KWh and 2,995 KWh for the three and nine months ended September 30, 2018, respectively, and 964 KWh and 2,749 KWh for the three and nine months ended September 30, 2017, respectively. |
(c) | Included within DPL wholesale electric sales are DP&L's 4.9% share of the generation output of OVEC and the generation output of Conesville. |
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
$ in millions | 2018 vs. 2017 | 2018 vs. 2017 | ||||||
Retail | ||||||||
Rate | ||||||||
Decrease in energy efficiency and USF revenue rate riders | $ | (13.9 | ) | $ | (38.7 | ) | ||
Increase / (decrease) in competitive bid revenue rate rider | 8.2 | (2.6 | ) | |||||
Increase due to implementation of the DMR in November 2017 | 8.8 | 25.6 | ||||||
Other | 0.8 | 1.0 | ||||||
Net change in retail rate | 3.9 | (14.7 | ) | |||||
Volume | ||||||||
Increase due to favorable weather, as shown above by the 39% increase in cooling degree-days for the three months ended September 30, 2018 and 27% and 46% increases in heating degree-days and cooling degree-days, respectively, for the nine months ended September 30, 2018 | 10.9 | 30.3 | ||||||
Other miscellaneous | 2.1 | (2.6 | ) | |||||
Total retail change | 16.9 | 13.0 | ||||||
Wholesale | ||||||||
Wholesale revenues | ||||||||
Increase due to increased volumes sold by Conesville of 42% and 55% for the three and nine months ended September 30, 2018, respectively, compared to the same periods in the prior year, and DP&L's 4.9% share of the generation output of OVEC, which is sold into PJM at market prices | 1.2 | 19.7 | ||||||
RTO revenues and RTO capacity revenues | ||||||||
RTO revenues and RTO capacity revenues | (1.4 | ) | (1.4 | ) | ||||
Other | ||||||||
Other revenues | (0.7 | ) | (1.5 | ) | ||||
Net change in revenues | $ | 16.0 | $ | 29.8 |
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
$ in millions | 2018 vs. 2017 | 2018 vs. 2017 | ||||||
Fuel | ||||||||
Net fuel costs | ||||||||
Increase due to increased internal generation at Conesville of 42% and 55% for the three and nine months ended September 30, 2018, respectively, compared to the same periods in the prior year | $ | 1.3 | $ | 5.1 | ||||
Net purchased power | ||||||||
Purchased power | ||||||||
Rate | ||||||||
Variances driven by pricing in the competitive bid process | 4.8 | (13.0 | ) | |||||
Volume | ||||||||
Increase due to higher competitive bid purchases due to increased DP&L retail demand | 4.8 | 22.2 | ||||||
Total purchased power change | 9.6 | 9.2 | ||||||
RTO charges | ||||||||
Increase in the nine months ended September 30, 2018 is due to higher transmission and congestion charges driven by higher market prices. RTO charges are incurred by DP&L as a member of PJM and primarily include transmission charges within our network, which are incurred and charged to customers in the transmission rider | (0.1 | ) | 5.5 | |||||
RTO capacity charges | (0.6 | ) | 1.4 | |||||
Net change in purchased power | 8.9 | 16.1 | ||||||
Net change in cost of revenues | $ | 10.2 | $ | 21.2 |
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
$ in millions | 2018 vs. 2017 | 2018 vs. 2017 | ||||||
Decrease in alternative energy and energy efficiency programs (a) | $ | (11.1 | ) | $ | (29.5 | ) | ||
Decrease in uncollectible expenses for the low-income payment program, which is funded by the USF revenue rate rider (a) | (3.1 | ) | (6.7 | ) | ||||
Decrease in insurance and claims expense | — | (4.9 | ) | |||||
Regulatory cost deferral and amortization, including stipulation payments, transmission costs and other regulatory compliance programs | 3.4 | 8.0 | ||||||
Increase in legal and other consulting costs, including write-off of previously deferred rate case costs no longer deemed probable for recovery | 0.8 | 6.8 | ||||||
Increase / (decrease) in maintenance of overhead transmission and distribution lines, including a $3.7 million deferral of vegetation management costs in 2018 | (2.1 | ) | 2.2 | |||||
Other, net | 1.7 | (1.7 | ) | |||||
Net change in operation and maintenance expense | $ | (10.4 | ) | $ | (25.8 | ) |
(a) | There is a corresponding offset in Revenues associated with these programs. |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
$ in millions | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Utility | $ | 37.5 | $ | 20.0 | $ | 73.9 | $ | 60.1 | ||||||||
Other | (17.7 | ) | (22.7 | ) | (60.2 | ) | (72.9 | ) | ||||||||
Income / (loss) from continuing operations before income tax | $ | 19.8 | $ | (2.7 | ) | $ | 13.7 | $ | (12.8 | ) |
(a) | For purposes of discussing operating results, we present and discuss Income / (loss) from continuing operations before income tax. This format is useful to investors because it allows analysis and comparability of operating trends and includes the same information that is used by management to make decisions regarding our financial performance. |
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
$ in millions | 2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues: | ||||||||||||||||
Retail | $ | 181.0 | $ | 164.0 | $ | 500.7 | $ | 487.8 | ||||||||
Wholesale | 4.9 | 5.9 | 24.6 | 14.5 | ||||||||||||
RTO revenues | 10.8 | 12.5 | 32.4 | 35.5 | ||||||||||||
RTO capacity revenues | 2.0 | 1.8 | 5.8 | 4.7 | ||||||||||||
Total revenues | 198.7 | 184.2 | 563.5 | 542.5 | ||||||||||||
Cost of revenues: | ||||||||||||||||
Net fuel cost | 0.1 | — | 1.7 | — | ||||||||||||
Purchased power: | ||||||||||||||||
Purchased power | 67.7 | 58.2 | 186.7 | 178.2 | ||||||||||||
RTO charges | 15.3 | 15.7 | 46.8 | 43.2 | ||||||||||||
RTO capacity charges | — | 0.5 | 2.2 | 0.6 | ||||||||||||
Net purchased power cost | 83.0 | 74.4 | 235.7 | 222.0 | ||||||||||||
Total cost of revenues | 83.1 | 74.4 | 237.4 | 222.0 | ||||||||||||
Gross margin | 115.6 | 109.8 | 326.1 | 320.5 | ||||||||||||
Operating expenses: | ||||||||||||||||
Operation and maintenance | 33.8 | 42.1 | 105.9 | 120.2 | ||||||||||||
Depreciation and amortization | 19.1 | 19.6 | 56.5 | 56.3 | ||||||||||||
General taxes | 19.0 | 19.3 | 54.3 | 57.8 | ||||||||||||
Loss / (gain) on asset disposal | — | (0.3 | ) | 0.1 | (0.3 | ) | ||||||||||
Loss on disposal of business | — | — | 12.4 | — | ||||||||||||
Total operating expenses | 71.9 | 80.7 | 229.2 | 234.0 | ||||||||||||
Operating income | 43.7 | 29.1 | 96.9 | 86.5 | ||||||||||||
Other expense: | ||||||||||||||||
Interest expense | (5.8 | ) | (7.9 | ) | (20.5 | ) | (23.5 | ) | ||||||||
Charge for early redemption of debt | — | (1.0 | ) | (0.6 | ) | (1.1 | ) | |||||||||
Other expense | (0.4 | ) | (0.2 | ) | (1.9 | ) | (1.8 | ) | ||||||||
Total other expense | (6.2 | ) | (9.1 | ) | (23.0 | ) | (26.4 | ) | ||||||||
Income from continuing operations before income tax (a) | $ | 37.5 | $ | 20.0 | $ | 73.9 | $ | 60.1 |
(a) | For purposes of discussing operating results, we present and discuss Income from continuing operations before income tax. This format is useful to investors because it allows analysis and comparability of operating trends and includes the same information used by management to make decisions regarding our financial performance. |
ELECTRIC SALES AND CUSTOMERS (a) | ||||||||||||
DP&L | ||||||||||||
Three months ended | Nine months ended | |||||||||||
September 30, | September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Retail electric sales (b) | 3,858 | 3,653 | 10,943 | 10,353 | ||||||||
Wholesale electric sales (c) | 155 | 143 | 449 | 428 | ||||||||
Total electric sales | 4,013 | 3,796 | 11,392 | 10,781 | ||||||||
Billed electric customers (end of period) | 523,535 | 520,211 |
(a) | Electric sales are presented in millions of KWh. |
(b) | DP&L retail electric sales represent the total transmission and distribution retail sales for the periods presented. SSO sales were 1,056 KWh and 2,995 KWh for the three and nine months ended September 30, 2018, respectively, and 964 KWh and 2,749 KWh for the three and nine months ended September 30, 2017, respectively. |
(c) | Included within DP&L wholesale electric sales is DP&L's 4.9% share of the generation output of OVEC. |
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
$ in millions | 2018 vs. 2017 | 2018 vs. 2017 | ||||||
Retail | ||||||||
Rate | ||||||||
Decrease in energy efficiency and USF revenue rate riders | $ | (13.9 | ) | $ | (38.7 | ) | ||
Increase / (decrease) in competitive bid revenue rate rider | 8.2 | (2.6 | ) | |||||
Increase due to implementation of the DMR in November 2017 | 8.8 | 25.6 | ||||||
Other | 0.8 | 0.9 | ||||||
Net change in retail rate | 3.9 | (14.8 | ) | |||||
Volume | ||||||||
Increase due to favorable weather, as shown above by the 39% increase in cooling degree-days for the three months ended September 30, 2018 and 27% and 46% increases in heating degree-days and cooling degree-days, respectively, for the nine months ended September 30, 2018 | 10.9 | 30.2 | ||||||
Other miscellaneous | 2.2 | (2.5 | ) | |||||
Total retail change | 17.0 | 12.9 | ||||||
Wholesale | ||||||||
Wholesale revenues | ||||||||
Variances due to DP&L's 4.9% share of the generation output of OVEC, which is sold into PJM at market prices | (1.0 | ) | 10.1 | |||||
RTO revenues and RTO capacity revenues | ||||||||
RTO revenues and RTO capacity revenues | (1.5 | ) | (2.0 | ) | ||||
Net change in revenues | $ | 14.5 | $ | 21.0 |
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
$ in millions | 2018 vs. 2017 | 2018 vs. 2017 | ||||||
Fuel | ||||||||
Net fuel costs | ||||||||
Represents expense recognition coinciding with the collection of previously deferred fuel costs through the regulatory fuel deferral | $ | 0.1 | $ | 1.7 | ||||
Net purchased power | ||||||||
Purchased power | ||||||||
Rate | ||||||||
Variances driven by pricing in the competitive bid process | 4.7 | (14.5 | ) | |||||
Volume | ||||||||
Increase due to higher competitive bid purchases due to increased DP&L retail demand | 4.8 | 23.0 | ||||||
Total purchased power change | 9.5 | 8.5 | ||||||
RTO charges | ||||||||
Increase in the nine months ended September 30, 2018 is due to higher transmission and congestion charges driven by higher market prices. RTO charges are incurred by DP&L as a member of PJM and primarily include transmission charges within our network, which are incurred and charged to customers in the transmission rider. | (0.4 | ) | 3.6 | |||||
RTO capacity charges | (0.5 | ) | 1.6 | |||||
Net change in purchased power | 8.6 | 13.7 | ||||||
Net change in cost of revenues | $ | 8.7 | $ | 15.4 |
Three months ended | Nine months ended | |||||||
September 30, | September 30, | |||||||
$ in millions | 2018 vs. 2017 | 2018 vs. 2017 | ||||||
Decrease in alternative energy and energy efficiency programs (a) | $ | (11.1 | ) | $ | (29.5 | ) | ||
Decrease in uncollectible expenses for the low-income payment program, which is funded by the USF revenue rate rider (a) | (3.1 | ) | (6.7 | ) | ||||
Regulatory cost deferral and amortization, including stipulation payments, transmission costs and other regulatory compliance programs | 3.4 | 8.0 | ||||||
Increase in legal and other consulting costs, including write-off of previously deferred rate case costs no longer deemed probable for recovery | 1.5 | 7.4 | ||||||
Increase / (decrease) in maintenance of overhead transmission and distribution lines, including a $3.7 million deferral of vegetation management costs in 2018 | (2.1 | ) | 2.2 | |||||
Increase in insurance and claims reserve | 1.3 | 2.2 | ||||||
Other, net | 1.8 | 2.1 | ||||||
Net change in operation and maintenance expense | $ | (8.3 | ) | $ | (14.3 | ) |
(a) | There is a corresponding offset in Revenues associated with these programs. |
• | the passage of new legislation, implementation of regulations or other changes in regulation; |
• | timely recovery of transmission and distribution expenditures; and |
• | exiting generation assets currently owned by AES Ohio Generation. |
• | water intake regulations finalized by the USEPA on May 19, 2014; |
• | the appeal of the NPDES permit governing the discharge of water from the Stuart Station; and |
• | revised technology-based regulations governing water discharges from steam electric generating facilities, finalized by the USEPA on November 3, 2015. |
DPL | Nine months ended September 30, | |||||||
$ in millions | 2018 | 2017 | ||||||
Net cash provided by operating activities | $ | 152.9 | $ | 81.7 | ||||
Net cash provided by / (used in) investing activities | 157.5 | (82.8 | ) | |||||
Net cash used in financing activities | (249.4 | ) | (57.1 | ) | ||||
Decrease in cash and restricted cash of discontinued operations and held-for-sale businesses | 1.5 | 27.0 | ||||||
Net change | 62.5 | (31.2 | ) | |||||
Balance at beginning of period | 24.9 | 54.6 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 87.4 | $ | 23.4 |
Nine months ended September 30, | $ change | |||||||||||
$ in millions | 2018 | 2017 | 2018 vs. 2017 | |||||||||
Net income / (loss) | $ | 41.4 | $ | (29.3 | ) | $ | 70.7 | |||||
Depreciation and amortization | 62.4 | 81.8 | (19.4 | ) | ||||||||
Impairment expenses | 2.8 | 66.4 | (63.6 | ) | ||||||||
Deferred income taxes | (17.8 | ) | (3.5 | ) | (14.3 | ) | ||||||
Other adjustments to Net income / (loss) | 19.0 | 19.2 | (0.2 | ) | ||||||||
Net income / (loss), adjusted for non-cash items | 107.8 | 134.6 | (26.8 | ) | ||||||||
Net change in operating assets and liabilities | 45.1 | (52.9 | ) | 98.0 | ||||||||
Net cash provided by operating activities | $ | 152.9 | $ | 81.7 | $ | 71.2 |
$ in millions | $ Change | |||
Increase from accrued taxes payable is primarily due to a prior year income tax benefit | $ | 46.4 | ||
Increase from accounts receivable due to timing of collections and weather | 18.6 | |||
Increase from accounts payable due to timing of payments and less generation related payments | 29.0 | |||
Other | 4.0 | |||
Net increase in cash from changes in operating assets and liabilities | $ | 98.0 |
DP&L | Nine months ended September 30, | |||||||
$ in millions | 2018 | 2017 | ||||||
Net cash provided by operating activities | $ | 113.2 | $ | 98.7 | ||||
Net cash used in investing activities | (69.0 | ) | (69.7 | ) | ||||
Net cash used in financing activities | (37.1 | ) | (42.3 | ) | ||||
Decrease in cash and restricted cash of discontinued operations and held-for-sale businesses | — | 27.0 | ||||||
Net change | 7.1 | 13.7 | ||||||
Balance at beginning of period | 5.6 | 1.6 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 12.7 | $ | 15.3 |
Nine months ended September 30, | $ change | |||||||||||
$ in millions | 2018 | 2017 | 2018 vs. 2017 | |||||||||
Net income | $ | 61.9 | $ | 3.6 | $ | 58.3 | ||||||
Depreciation and amortization | 56.5 | 68.2 | (11.7 | ) | ||||||||
Impairment expenses | — | 66.3 | (66.3 | ) | ||||||||
Other adjustments to Net income | 5.5 | 18.6 | (13.1 | ) | ||||||||
Net income, adjusted for non-cash items | 123.9 | 156.7 | (32.8 | ) | ||||||||
Net change in operating assets and liabilities | (10.7 | ) | (58.0 | ) | 47.3 | |||||||
Net cash provided by operating activities | $ | 113.2 | $ | 98.7 | $ | 14.5 |
$ in millions | $ Change | |||
Increase from accrued taxes payable is primarily due to a prior year income tax benefit | $ | 25.2 | ||
Increase from accounts payable due to timing of payments and less generation related payments | 57.3 | |||
Decrease from accounts receivable due to timing of collections and no longer having generation receivables | (23.8 | ) | ||
Decrease from inventory primarily due to no longer having coal purchases in 2018 | (10.2 | ) | ||
Other | (1.2 | ) | ||
Net increase in cash from changes in operating assets and liabilities | $ | 47.3 |
$ in millions | Type | Maturity | Commitment | Amounts available as of September 30, 2018 | ||||||||
DP&L | Revolving | July 2020 | $ | 175.0 | $ | 173.9 | ||||||
DPL | Revolving | July 2020 | 205.0 | 189.4 | ||||||||
$ | 380.0 | $ | 363.3 |
DPL | DP&L | Outlook | Effective or Affirmed | |||||
Fitch Ratings | BBB(a) / BBB-(b) | A- (c) | Stable | October 2018 | ||||
Moody's Investors Service, Inc. | Ba1 (b) | A3 (c) | Positive | October 2018 | ||||
Standard & Poor's Financial Services LLC | BBB- (b) | BBB+ (c) | Stable | March 2018 |
(a) | Rating relates to DPL’s Senior secured debt. |
(b) | Rating relates to DPL's Senior unsecured debt. |
(c) | Rating relates to DP&L’s Senior secured debt. |
DPL | DP&L | Outlook | Effective or Affirmed | |||||
Fitch Ratings | BBB- | BBB | Stable | October 2018 | ||||
Moody's Investors Service, Inc. | Ba1 | Baa2 | Positive | October 2018 | ||||
Standard & Poor's Financial Services LLC | BBB- | BBB- | Stable | March 2018 |
DPL | ||||||||||||||||||||||||||||||||
Principal payments due | At September 30, 2018 | |||||||||||||||||||||||||||||||
during the twelve months ending | ||||||||||||||||||||||||||||||||
September 30, | Principal | Fair | ||||||||||||||||||||||||||||||
$ in millions | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Amount | Value | ||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||||||||
Variable-rate debt | $ | 4.5 | $ | 144.5 | $ | 4.5 | $ | 423.7 | $ | — | $ | — | $ | 577.2 | $ | 577.2 | ||||||||||||||||
Average interest rate (a) | 4.1% | 2.8% | 4.1% | 4.1% | —% | —% | ||||||||||||||||||||||||||
Fixed-rate debt | $ | 0.1 | $ | 99.2 | $ | 0.2 | $ | 780.2 | $ | 0.2 | $ | 32.4 | 912.3 | 982.9 | ||||||||||||||||||
Average interest rate | 4.2% | 6.7% | 4.2% | 7.2% | 4.2% | 6.1% | ||||||||||||||||||||||||||
Total | $ | 1,489.5 | $ | 1,560.1 |
(a) | Based on rates in effect at September 30, 2018 |
DP&L | ||||||||||||||||||||||||||||||||
Principal payments due | At September 30, 2018 | |||||||||||||||||||||||||||||||
during the twelve months ending | ||||||||||||||||||||||||||||||||
September 30, | Principal | Fair | ||||||||||||||||||||||||||||||
$ in millions | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Amount | Value | ||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||||||||
Variable-rate debt | $ | 4.5 | $ | 144.5 | $ | 4.5 | $ | 423.7 | $ | — | $ | — | $ | 577.2 | $ | 577.2 | ||||||||||||||||
Average interest rate (a) | 4.1% | 2.8% | 4.1% | 4.1% | —% | —% | ||||||||||||||||||||||||||
Fixed-rate debt | $ | 0.1 | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 16.8 | 17.7 | 17.7 | ||||||||||||||||||
Average interest rate | 4.2% | 4.2% | 4.2% | 4.2% | 4.2% | 4.2% | ||||||||||||||||||||||||||
Total | $ | 594.9 | $ | 594.9 |
(a) | Based on rates in effect at September 30, 2018 |
DPL | DP&L | Exhibit Number | Exhibit | Location |
X | 31(a) | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
X | 31(b) | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
X | 31(c) | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
X | 31(d) | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
X | 32(a) | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
X | 32(b) | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
X | 32(c) | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
X | 32(d) | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
X | X | 101.INS | XBRL Instance | Filed herewith as Exhibit 101.INS |
X | X | 101.SCH | XBRL Taxonomy Extension Schema | Filed herewith as Exhibit 101.SCH |
X | X | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase | Filed herewith as Exhibit 101.CAL |
X | X | 101.DEF | XBRL Taxonomy Extension Definition Linkbase | Filed herewith as Exhibit 101.DEF |
X | X | 101.LAB | XBRL Taxonomy Extension Label Linkbase | Filed herewith as Exhibit 101.LAB |
X | X | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase | Filed herewith as Exhibit 101.PRE |
DPL Inc. | ||
(Registrant) | ||
Date: | November 5, 2018 | /s/ Gustavo D. Pimenta |
Gustavo D. Pimenta | ||
Chief Financial Officer | ||
(principal financial officer) | ||
November 5, 2018 | /s/ Karin M. Nyhuis | |
Karin M. Nyhuis | ||
Controller | ||
(principal accounting officer) |
The Dayton Power and Light Company | ||
(Registrant) | ||
Date: | November 5, 2018 | /s/ Gustavo D. Pimenta |
Gustavo D. Pimenta | ||
Vice President and Chief Financial Officer | ||
(principal financial officer) | ||
November 5, 2018 | /s/ Karin M. Nyhuis | |
Karin M. Nyhuis | ||
Controller | ||
(principal accounting officer) |
1. | I have reviewed this quarterly report on Form 10-Q of DPL Inc. ; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Craig L. Jackson |
Craig L. Jackson |
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of DPL Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Gustavo D. Pimenta |
Gustavo D. Pimenta |
Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of The Dayton Power and Light Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Craig L. Jackson |
Craig L. Jackson |
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of The Dayton Power and Light Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Gustavo D. Pimenta |
Gustavo D. Pimenta |
Vice President and Chief Financial Officer |
/s/ Craig L. Jackson |
Craig L. Jackson |
President and Chief Executive Officer |
/s/ Gustavo D. Pimenta |
Gustavo D. Pimenta |
Chief Financial Officer |
/s/ Craig L. Jackson |
Craig L. Jackson |
President and Chief Executive Officer |
/s/ Gustavo D. Pimenta |
Gustavo D. Pimenta |
Vice President and Chief Financial Officer |
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Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Nov. 05, 2018 |
|
Entity Registrant Name | DPL INC | |
Entity Central Index Key | 0000787250 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
THE DAYTON POWER AND LIGHT COMPANY [Member] | ||
Entity Registrant Name | DAYTON POWER & LIGHT CO | |
Entity Central Index Key | 0000027430 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 41,172,173 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Common stock, shares authorized | 1,500 | 1,500 |
Common stock, shares issued | 1 | 1 |
Common stock, shares outstanding | 1 | 1 |
THE DAYTON POWER AND LIGHT COMPANY [Member] | ||
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares outstanding | 41,172,173 | 41,172,173 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Overview and Summary of Significant Accounting Policies |
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Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Overview and Summary of Significant Accounting Policies | Overview and Summary of Significant Accounting Policies Description of Business DPL is a diversified regional energy company organized in 1985 under the laws of Ohio. DPL has one reportable segment: the Utility segment. See Note 12 – 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, 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. DP&L has the exclusive right to provide such transmission and distribution services to approximately 524,000 customers located in West Central Ohio. Additionally, DP&L provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000-square mile area of West Central Ohio. Through September 30, 2017, DP&L owned undivided interests in multiple coal-fired and peaking electric generating facilities as well as numerous transmission facilities. On October 1, 2017, the DP&L-owned generating facilities were transferred to AES Ohio Generation, an affiliate of DP&L and wholly-owned subsidiary of DPL, through an asset contribution agreement to a subsidiary that was merged into AES Ohio Generation. Principal industries located in DP&L’s service territory include automotive, food processing, paper, plastic, health care, data management, manufacturing and defense. DP&L's distribution sales reflect the general economic conditions, seasonal weather patterns, the proliferation of energy efficiency and distributed renewable resources and the market price of electricity. Through September 30, 2017, DP&L sold its generated energy and capacity into the wholesale market. After September 30, 2017, DP&L continues to sell its proportional share of energy and capacity from its investment in OVEC. DPL’s other significant subsidiaries include MVIC and AES Ohio Generation. MVIC is our captive insurance company that provides insurance services to DPL and our other subsidiaries. AES Ohio Generation owns an undivided interest in Conesville. AES Ohio Generation sells all of its energy and capacity into the wholesale market. 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. DP&L’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, DP&L applies the accounting standards for regulated operations to its electric transmission and distribution businesses and records regulatory assets when incurred costs are expected to be recovered in future customer rates, and regulatory liabilities when current cost recoveries in customer rates relate to expected future costs. DPL and its subsidiaries employed 674 people as of September 30, 2018, of which 648 were employed by DP&L. Approximately 53% of all DPL employees are under a collective bargaining agreement, which expires October 31, 2020. 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. As of September 30, 2018, DPL has an undivided ownership interest in one coal-fired generating facility, which is included in the financial statements at the lower of depreciated historical cost or fair value, if impaired. Operating revenues and expenses of this facility are included on a pro rata basis in the corresponding lines in the Condensed Consolidated Statements of Operations. 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. These financial statements have been prepared in accordance with GAAP for interim financial statements, the instructions of Form 10-Q and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been omitted from this interim report. 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, 2017. 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 September 30, 2018; our results of operations for the three and nine months ended September 30, 2018 and 2017 and our cash flows for the nine months ended September 30, 2018 and 2017. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three and nine months ended September 30, 2018 may not be indicative of our results that will be realized for the full year ending December 31, 2018. 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 derivative instruments; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; the valuation of AROs; 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 Sheet that reconcile to the total of such amounts as shown on the Condensed Consolidated Statements of Cash Flows:
Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities DP&L collects certain excise taxes levied by state or local governments from its customers. 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 September 30, 2018 and 2017 were $13.8 million and $13.0 million, respectively. The amounts of such taxes collected for the nine months ended September 30, 2018 and 2017 were $39.2 million and $36.9 million, respectively. New accounting pronouncements adopted in 2018 – The following table provides a brief description of recently adopted accounting pronouncements that had an impact on our consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on our consolidated financial statements.
Adoption of FASC Topic 606, "Revenue from Contracts with Customers" On January 1, 2018, we adopted ASU 2014-09, "Revenue from Contracts with Customers", and its subsequent corresponding updates ("FASC 606"). The core principle of this standard is that an entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We applied the modified retrospective method of adoption to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning January 1, 2018 are presented under FASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under the previous revenue recognition standard, FASC 605. For contracts that were modified before January 1, 2018, we have not retrospectively restated the contracts for modifications. We instead reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price. We do not expect the adoption of the new revenue standard to have a material impact to our net income on an ongoing basis. There was no cumulative effect to our January 1, 2018 Condensed Consolidated Balance Sheet resulting from the adoption of FASC 606. See additional disclosures under FASC 606 in Note 13 – Revenue. 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.
2016-02, 2018-01, 2018-10, 2018-11 Leases (Topic 842) ASU 2016-02 and its subsequent corresponding updates will require lessees to recognize assets and liabilities for most leases and recognize expenses in a manner similar to the current accounting method. For lessors, the guidance modifies the lease classification criteria and the accounting for sales-type and direct financing leases. The guidance also eliminates the current real estate-specific provisions. The standard must be adopted using a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements (January 1, 2017). The FASB proposed amending the standard to give another option for transition. The proposed transition method would allow entities to not apply the new lease standard in the comparative periods presented in their financial statements in the year of adoption. Under the proposed transition method, the entity would apply the transition provisions on January 1, 2019 (i.e., the effective date). At transition, lessees and lessors are permitted to make an election to apply a package of practical expedients that allow them not to reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) whether initial direct costs for any expired or existing leases qualify for capitalization under FASC 842. These three practical expedients must be elected as a package and must be consistently applied to all leases. Furthermore, entities are also permitted to make an election to use hindsight when determining lease term and lessees can elect to use hindsight when assessing the impairment of right-of-use assets. We have established a task force focused on the identification of contracts that would be under the scope of the new standard and on the assessment and measurement of the right-of-use asset and related liability. Additionally, the implementation team has been working on the configuration of a lease accounting system that will support the implementation and the subsequent accounting. The implementation team is in the process of evaluating changes to our business processes, systems and controls to support recognition and disclosure under the new standard. As we have preliminarily concluded that at transition we would be using the package of practical expedients, the main impact expected as of the effective date is the recognition of the right to use asset and the related liability in the financial statements for all those contracts that contain a lease and for which we are the lessee. However, income statement presentation and the expense recognition pattern are not expected to change. Under FASC 842, it is expected that fewer contracts will contain a lease. Under the new rules, all operating leases will be recorded as right-of-use assets with an off-setting lease liability. |
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THE DAYTON POWER AND LIGHT COMPANY [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 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. DP&L has the exclusive right to provide such transmission and distribution services to approximately 524,000 customers located in West Central Ohio. Additionally, DP&L provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000-square mile area of West Central Ohio. Through September 30, 2017, DP&L owned undivided interests in multiple coal-fired and peaking electric generating facilities as well as numerous transmission facilities. On October 1, 2017, the DP&L-owned generating facilities were transferred to AES Ohio Generation, an affiliate of DP&L and wholly-owned subsidiary of DPL, through an asset contribution agreement to a subsidiary that was merged into AES Ohio Generation. As a result of Generation Separation, DP&L now only has one reportable segment, the Utility segment. In addition to DP&L's electric transmission and distribution businesses, the Utility segment includes revenues and costs associated with DP&L's investment in OVEC and the historical results of DP&L’s Beckjord and Hutchings Coal generating facilities, which have either been closed or sold. Principal industries located in DP&L’s service territory include automotive, food processing, paper, plastic, health care, data management, manufacturing and defense. DP&L's distribution sales reflect the general economic conditions, seasonal weather patterns, the proliferation of energy efficiency and distributed renewable resources and the market price of electricity. Through September 30, 2017, DP&L sold its generated energy and capacity into the wholesale market. After September 30, 2017, DP&L continues to sell its proportional share of energy and capacity from its investment in OVEC. DP&L is a subsidiary of DPL. The terms “we,” “us,” “our” and “ours” are used to refer to DP&L. DP&L’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, DP&L applies the accounting standards for regulated operations to its electric transmission and distribution businesses and records regulatory assets when incurred costs are expected to be recovered in future customer rates, and regulatory liabilities when current cost recoveries in customer rates relate to expected future costs. DP&L employed 648 people as of September 30, 2018. Approximately 55% of DP&L employees are under a collective bargaining agreement, which expires October 31, 2020. Financial Statement Presentation DP&L does not have any subsidiaries. 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 for interim financial statements, the instructions of Form 10-Q and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been omitted from this interim report. 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, 2017. 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 September 30, 2018; our results of operations for the three and nine months ended September 30, 2018 and 2017 and our cash flows for the nine months ended September 30, 2018 and 2017. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three and nine months ended September 30, 2018 may not be indicative of our results that will be realized for the full year ending December 31, 2018. 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 derivative instruments; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; the valuation of AROs; 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 Sheet that reconcile to the total of such amounts as shown on the Condensed Statements of Cash Flows:
Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities DP&L collects certain excise taxes levied by state or local governments from its customers. 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 September 30, 2018 and 2017 were $13.8 million and $13.0 million, respectively. The amounts of such taxes collected for the nine months ended September 30, 2018 and 2017 were $39.2 million and $36.9 million, respectively. New accounting pronouncements adopted in 2018 – The following table provides a brief description of recently adopted accounting pronouncements that had an impact on our financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on our financial statements.
Adoption of FASC Topic 606, "Revenue from Contracts with Customers" On January 1, 2018, we adopted ASU 2014-09, "Revenue from Contracts with Customers", and its subsequent corresponding updates ("FASC 606"). The core principle of this standard is that an entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We applied the modified retrospective method of adoption to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning January 1, 2018 are presented under FASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under the previous revenue recognition standard, FASC 605. For contracts that were modified before January 1, 2018, we have not retrospectively restated the contracts for modifications. We instead reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price. We do not expect the adoption of the new revenue standard to have a material impact to our net income on an ongoing basis. There was no cumulative effect to our January 1, 2018 Condensed Consolidated Balance Sheet resulting from the adoption of FASC 606. See additional disclosures under FASC 606 in Note 12 – Revenue. 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 financial statements.
2016-02, 2018-01, 2018-10, 2018-11 Leases (Topic 842) ASU 2016-02 and its subsequent corresponding updates will require lessees to recognize assets and liabilities for most leases and recognize expenses in a manner similar to the current accounting method. For lessors, the guidance modifies the lease classification criteria and the accounting for sales-type and direct financing leases. The guidance also eliminates the current real estate-specific provisions. The standard must be adopted using a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements (January 1, 2017). The FASB proposed amending the standard to give another option for transition. The proposed transition method would allow entities to not apply the new lease standard in the comparative periods presented in their financial statements in the year of adoption. Under the proposed transition method, the entity would apply the transition provisions on January 1, 2019 (i.e., the effective date). At transition, lessees and lessors are permitted to make an election to apply a package of practical expedients that allow them not to reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) whether initial direct costs for any expired or existing leases qualify for capitalization under FASC 842. These three practical expedients must be elected as a package and must be consistently applied to all leases. Furthermore, entities are also permitted to make an election to use hindsight when determining lease term and lessees can elect to use hindsight when assessing the impairment of right-of-use assets. We have established a task force focused on the identification of contracts that would be under the scope of the new standard and on the assessment and measurement of the right-of-use asset and related liability. Additionally, the implementation team has been working on the configuration of a lease accounting system that will support the implementation and the subsequent accounting. The implementation team is in the process of evaluating changes to our business processes, systems and controls to support recognition and disclosure under the new standard. As we have preliminarily concluded that at transition we would be using the package of practical expedients, the main impact expected as of the effective date is the recognition of the right to use asset and the related liability in the financial statements for all those contracts that contain a lease and for which we are the lessee. However, income statement presentation and the expense recognition pattern are not expected to change. Under FASC 842, it is expected that fewer contracts will contain a lease. Under the new rules, all operating leases will be recorded as right-of-use assets with an off-setting lease liability. |
Supplemental Financial Information |
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Supplemental Financial Information | Supplemental Financial Information Accounts receivable and Inventories are as follows at September 30, 2018 and December 31, 2017:
(a) - See Note 3 – Regulatory Matters for more information on this item. Accumulated Other Comprehensive Income / (Loss) The amounts reclassified out of Accumulated Other Comprehensive Income / (Loss) by component during the three and nine months ended September 30, 2018 and 2017 are as follows:
The changes in the components of Accumulated Other Comprehensive Income / (Loss) during the nine months ended September 30, 2018 are as follows:
Operating expenses - other Operating expenses - other generally includes gains or losses on asset sales or dispositions, insurance recoveries, gains or losses on the sale of businesses and other expense or income from miscellaneous transactions. The components are summarized as follows:
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THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Information | Supplemental Financial Information Accounts receivable and Inventories are as follows at September 30, 2018 and December 31, 2017:
(a) - See Note 3 – Regulatory Matters for more information on this item. Accumulated Other Comprehensive Income / (Loss) The amounts reclassified out of Accumulated Other Comprehensive Income / (Loss) by component during the three and nine months ended September 30, 2018 and 2017 are as follows:
The changes in the components of Accumulated Other Comprehensive Income / (Loss) during the nine months ended September 30, 2018 are as follows:
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Regulatory Matters (Notes) |
9 Months Ended |
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Sep. 30, 2018 | |
Schedule of Regulatory Assets and Liabilities [Text Block] | Regulatory Matters On September 26, 2018 the PUCO issued the DRO establishing new base distribution rates for DP&L, which became effective October 1, 2018. The DRO approved, without modification, a stipulation and recommendation previously filed by DP&L, along with various intervening parties and the PUCO staff. The DRO established a revenue requirement of $248.0 million for DP&L's electric service base distribution rates which reflects an increase to distribution revenues of approximately $29.8 million per year. In addition to the increase in base distribution rates, and among other matters, the DRO provides for a return on equity of 9.999% and a cost of long-term debt of 4.8% and for the following items: DIR – The DRO authorized DP&L to begin charging a Distribution Investment Rider ("DIR") set initially at $12.2 million annually, effective October 1, 2018. The DIR revenue requirement shall be updated quarterly and will increase as DP&L makes qualified investments in its distribution network, subject to annual revenue limits which increase each year. The DIR will expire in November 2022 unless DP&L files a base distribution rate case on or before October 31, 2022, in which case the DIR will expire in November 2023. Approximately $0.4 million of DIR revenue is included in DP&L’s unbilled revenues at September 30, 2018. Decoupling Rider – The DRO eliminated provisions in the existing decoupling rider which allowed DP&L to recover lost revenues resulting from the implementation of energy efficiency programs and replaced it with a revenue requirement that attempts to eliminate the impacts of weather and demand on DP&L’s revenues from residential and commercial distribution customers. As a result, in years with very mild weather and/or decreased demand, DP&L will be able to accrue a regulatory asset for recovery through the rider to normalize the revenues. Conversely, in periods of extreme temperatures or high demand for electricity, DP&L may record a liability for future reimbursement to customers. The rider also includes a one-time $3.7 million revenue requirement based on the increase in the number of DP&L’s residential and commercial customers from the rate case test year until September 30, 2018. Such amount was accrued and included in revenues in the third quarter of 2018 and will be collected by DP&L in 2019. TCJA – The DRO only partially resolved the TCJA impacts. The new distribution rates include the impacts of the decrease in current federal income taxes beginning October 1, 2018. The DRO did not designate how much DP&L may owe for any overcollection of taxes from January 1, 2018 through September 30, 2018, nor did it resolve any decrease in future rates related to amortization of excess accumulated deferred income taxes (“ADIT”). The DRO did, however, stipulate that DP&L must refund its customers an amount no less than $4.0 million per year for the first five years of the amortization period unless all balances owed are fully returned within the first five years. For more on the impacts of the TCJA, please see below. Vegetation Management Costs – The DRO authorizes DP&L to defer as a regulatory asset, with no carrying costs, annual expenses for vegetation management performed by third-party vendors. For calendar year 2018 annual expenses which are incremental to the baseline of $10.7 million can be deferred up to a $4.6 million cap. For calendar years 2019 and thereafter, annual expenses in excess of $15.7 million can be deferred up to a $4.6 million annual cap. Annual spending of less than the vegetation management baseline amounts will result in a reduction to the regulatory asset or creation of a regulatory liability. In the third quarter of 2018, DP&L accrued a regulatory asset of $3.8 million based upon such provisions and spending above the baseline pro-rated to nine months. Impact of tax reform On January 10, 2018, the PUCO initiated a proceeding to consider the impacts of the TCJA to determine the appropriate course of action to pass benefits resulting from the legislation on to ratepayers. The PUCO also directed Ohio utilities to record deferred liabilities for the estimated reduction in federal income tax resulting from the TCJA beginning January 1, 2018. Under the terms of the stipulation in the distribution rate case mentioned above, DP&L agreed to file an application at the PUCO to refund eligible excess ADIT and any related regulatory liability over a 10-year period. Excess ADIT related to depreciation life and method differences will be returned to customers in accordance with federal tax law and related regulations. FERC proceedings On March 15, 2018, the FERC initiated “show cause” proceedings against numerous utilities, including DP&L, that had stated transmission rates, directing each utility to file either revised transmission rates to reflect the effects of the TCJA or to show cause why no changes in transmission rates were appropriate. On May 8, 2018, DP&L filed to adjust its FERC jurisdictional transmission rates to reflect this impact. The filing is currently under review by the FERC and DP&L is unable to predict whether the proposed rates will be accepted as filed or if they may be further modified. As proposed, the decrease is approximately $2.4 million annually. DP&L has recorded a reduction to revenues and established regulatory liabilities for the estimated impact. PJM transmission enhancement settlement On May 31, 2018, the FERC issued an Order on Contested Settlement regarding the cost allocation method for existing and new transmission facilities contained in the PJM Interconnection’s Open Access Transmission Tariff. The FERC order approved the settlement which reduces DP&L’s transmission costs through PJM beginning in August 2018, including credits to reimburse DP&L for amounts overcharged in prior years. DP&L has estimated the prior overcharge to be $40.4 million, of which approximately $4.8 million has been repaid to DP&L through September 30, 2018 and $24.1 million is classified as current on the accompanying Condensed Consolidated Balance Sheet. All of the transmission charges and credits impacted by this FERC order are items that are included for 100% recovery in DP&L’s nonbypassable TCRR. Accordingly, DP&L has also established offsetting regulatory liabilities. While this development will have a temporary cash flow benefit to DP&L, there is no impact to operating income or net income as all credits will be passed to DP&L’s customers through the TCRR. |
Subsidiaries [Member] | |
Schedule of Regulatory Assets and Liabilities [Text Block] | Regulatory Matters On September 26, 2018 the PUCO issued the DRO establishing new base distribution rates for DP&L, which became effective October 1, 2018. The DRO approved, without modification, a stipulation and recommendation previously filed by DP&L, along with various intervening parties and the PUCO staff. The DRO established a revenue requirement of $248.0 million for DP&L's electric service base distribution rates which reflects an increase to distribution revenues of approximately $29.8 million per year. In addition to the increase in base distribution rates, and among other matters, the DRO provides for a return on equity of 9.999% and a cost of long-term debt of 4.8% and for the following items: DIR – The DRO authorized DP&L to begin charging a Distribution Investment Rider ("DIR") set initially at $12.2 million annually, effective October 1, 2018. The DIR revenue requirement shall be updated quarterly and will increase as DP&L makes qualified investments in its distribution network, subject to annual revenue limits which increase each year. The DIR will expire in November 2022 unless DP&L files a base distribution rate case on or before October 31, 2022, in which case the DIR will expire in November 2023. Approximately $0.4 million of DIR revenue is included in DP&L’s unbilled revenues at September 30, 2018. Decoupling Rider – The DRO eliminated provisions in the existing decoupling rider which allowed DP&L to recover lost revenues resulting from the implementation of energy efficiency programs and replaced it with a revenue requirement that attempts to eliminate the impacts of weather and demand on DP&L’s revenues from residential and commercial distribution customers. As a result, in years with very mild weather and/or decreased demand, DP&L will be able to accrue a regulatory asset for recovery through the rider to normalize the revenues. Conversely, in periods of extreme temperatures or high demand for electricity, DP&L may record a liability for future reimbursement to customers. The rider also includes a one-time $3.7 million revenue requirement based on the increase in the number of DP&L’s residential and commercial customers from the rate case test year until September 30, 2018. Such amount was accrued and included in revenues in the third quarter of 2018 and will be collected by DP&L in 2019. TCJA – The DRO only partially resolved the TCJA impacts. The new distribution rates include the impacts of the decrease in current federal income taxes beginning October 1, 2018. The DRO did not designate how much DP&L may owe for any overcollection of taxes from January 1, 2018 through September 30, 2018, nor did it resolve any decrease in future rates related to amortization of excess accumulated deferred income taxes (“ADIT”). The DRO did, however, stipulate that DP&L must refund its customers an amount no less than $4.0 million per year for the first five years of the amortization period unless all balances owed are fully returned within the first five years. For more on the impacts of the TCJA, please see below. Vegetation Management Costs – The DRO authorizes DP&L to defer as a regulatory asset, with no carrying costs, annual expenses for vegetation management performed by third-party vendors. For calendar year 2018 annual expenses which are incremental to the baseline of $10.7 million can be deferred up to a $4.6 million cap. For calendar years 2019 and thereafter, annual expenses in excess of $15.7 million can be deferred up to a $4.6 million annual cap. Annual spending of less than the vegetation management baseline amounts will result in a reduction to the regulatory asset or creation of a regulatory liability. In the third quarter of 2018, DP&L accrued a regulatory asset of $3.8 million based upon such provisions and spending above the baseline pro-rated to nine months. Impact of tax reform On January 10, 2018, the PUCO initiated a proceeding to consider the impacts of the TCJA to determine the appropriate course of action to pass benefits resulting from the legislation on to ratepayers. The PUCO also directed Ohio utilities to record deferred liabilities for the estimated reduction in federal income tax resulting from the TCJA beginning January 1, 2018. Under the terms of the stipulation in the distribution rate case mentioned above, DP&L agreed to file an application at the PUCO to refund eligible excess ADIT and any related regulatory liability over a 10-year period. Excess ADIT related to depreciation life and method differences will be returned to customers in accordance with federal tax law and related regulations. FERC proceedings On March 15, 2018, the FERC initiated “show cause” proceedings against numerous utilities, including DP&L, that had stated transmission rates, directing each utility to file either revised transmission rates to reflect the effects of the TCJA or to show cause why no changes in transmission rates were appropriate. On May 8, 2018, DP&L filed to adjust its FERC jurisdictional transmission rates to reflect this impact. The filing is currently under review by the FERC and DP&L is unable to predict whether the proposed rates will be accepted as filed or if they may be further modified. As proposed, the decrease is approximately $2.4 million annually. DP&L has recorded a reduction to revenues and established regulatory liabilities for the estimated impact. PJM transmission enhancement settlement On May 31, 2018, the FERC issued an Order on Contested Settlement regarding the cost allocation method for existing and new transmission facilities contained in the PJM Interconnection’s Open Access Transmission Tariff. The FERC order approved the settlement which reduces DP&L’s transmission costs through PJM beginning in August 2018, including credits to reimburse DP&L for amounts overcharged in prior years. DP&L has estimated the prior overcharge to be $40.4 million, of which approximately $4.8 million has been repaid to DP&L through September 30, 2018 and $24.1 million is classified as current on the accompanying Condensed Balance Sheet. All of the transmission charges and credits impacted by this FERC order are items that are included for 100% recovery in DP&L’s nonbypassable TCRR. Accordingly, DP&L has also established offsetting regulatory liabilities. While this development will have a temporary cash flow benefit to DP&L, there is no impact to operating income or net income as all credits will be passed to DP&L’s customers through the TCRR. |
Property, Plant and Equipment (Notes) |
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Property, Plant and Equipment [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | Property, Plant and Equipment Coal-fired facilities As of September 30, 2018, DPL, through a subsidiary, and another energy company have undivided ownership interests in one coal-fired EGU, Conesville. Certain expenses, primarily fuel costs for the generating units, are allocated to DPL and the other owner based on energy usage. The remaining expenses, investments in fuel inventory, plant materials and operating supplies, and capital additions are allocated to the owners in accordance with their respective ownership interests. DPL’s share of the operations of this facility is included within the corresponding line in the Condensed Consolidated Statements of Operations, and DPL’s share of the investment in the facility is included within Total net property, plant and equipment in the Condensed Consolidated Balance Sheets. Each co-owner provides their own financing for their share of the operations and capital expenditures of the jointly-owned station. In June 2018, DP&L closed on a transmission asset transaction with Duke and AEP, where ownership stakes in certain previously co-owned transmission assets were exchanged to eliminate co-ownership. Each previously co-owned transmission asset became wholly-owned by one of DP&L, Duke or AEP after the transaction. This transaction also resulted in cash proceeds to DP&L of $10.6 million. AROs We recognize AROs in accordance with GAAP which requires legal obligations associated with the retirement of long-lived assets to be recognized at their fair value at the time those obligations are incurred. Upon initial recognition of a legal liability, costs are capitalized as part of the related long-lived asset and depreciated over the useful life of the related asset. Our legal obligations are associated with the retirement of our long-lived assets, consisting primarily of river intake and discharge structures, coal unloading facilities, loading docks, ice breakers and ash disposal facilities. Estimating the amount and timing of future expenditures of this type requires significant judgment. Management routinely updates these estimates as additional information becomes available. Changes in the Liability for AROs
See Note 5 – Fair Value for further discussion on changes to our AROs. |
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Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | Property, Plant and Equipment In June 2018, DP&L closed on a transmission asset transaction with Duke and AEP, where ownership stakes in certain previously co-owned transmission assets were exchanged to eliminate co-ownership. Each previously co-owned transmission asset became wholly-owned by one of DP&L, Duke or AEP after the transaction. This transaction also resulted in cash proceeds to DP&L of $10.6 million. AROs We recognize AROs in accordance with GAAP which requires legal obligations associated with the retirement of long-lived assets to be recognized at their fair value at the time those obligations are incurred. Upon initial recognition of a legal liability, costs are capitalized as part of the related long-lived asset and depreciated over the useful life of the related asset. Our legal obligations are associated with the retirement of our long-lived assets, consisting primarily of river intake and discharge structures, coal unloading facilities, loading docks, ice breakers and ash disposal facilities. Estimating the amount and timing of future expenditures of this type requires significant judgment. Management routinely updates these estimates as additional information becomes available. Changes in the Liability for AROs
See Note 5 – Fair Value for further discussion on changes to our AROs. |
Fair Value |
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value The following table presents the fair value, carrying value and cost of our non-derivative instruments at September 30, 2018 and December 31, 2017. Information about the fair value of our derivative instruments can be found in Note 6 – Derivative Instruments and Hedging Activities.
These financial instruments are not subject to master netting agreements or collateral requirements and as such are presented in the Condensed Consolidated Balance Sheet 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 nine months ended September 30, 2018 or 2017. Master Trust Assets DP&L established a Master Trust to hold assets that could be used for the benefit of employees participating in employee benefit plans and these assets are not used for general operating purposes. ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities” was effective as of January 1, 2018. This ASU requires the change in the fair value of equity instruments to be recorded in income rather than in OCI. Equity Instruments were defined to include all mutual funds, regardless of the underlying investments. Therefore, as of January 1, 2018, AOCI of $1.6 million ($1.0 million net of tax) was reversed to Retained Earnings and all future changes to fair value on the Master Trust Assets will be included in income in the period that the changes occur. These changes to fair value were not material for the nine months ended September 30, 2018. 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 deferred assets on the consolidated balance sheets. DPL had $1.6 million ($1.0 million after tax) of unrealized gains and immaterial unrealized losses on the Master Trust assets in AOCI at December 31, 2017. 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 the 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 2019 to 2061. The fair value of assets and liabilities at September 30, 2018 and December 31, 2017 and the respective category within the fair value hierarchy for DPL is as follows:
Our financial instruments are valued using the market approach in the following categories:
All of the inputs to the fair value of our derivative instruments are from quoted market prices. Our long-term debt is fair valued for disclosure purposes only and most of the fair values are determined using quoted market prices in inactive markets. These fair value inputs are considered Level 2 in the fair value hierarchy. As the Wright-Patterson Air Force Base note is not publicly traded, fair value is assumed to equal carrying value. These fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs. Non-recurring Fair Value Measurements We use the cost approach to determine the fair value of our AROs, which is estimated by discounting expected cash outflows to their present value at the initial recording of the liability. Cash outflows are based on the approximate future disposal cost as determined by market information, historical information or other management estimates. These inputs to the fair value of the AROs would be considered Level 3 inputs under the fair value hierarchy. The balance of AROs was $13.5 million and $15.1 million at September 30, 2018 and December 31, 2017, respectively, which excludes AROs associated with our discontinued operations (see Note 15 – Discontinued Operations of Notes to DPL's Condensed Consolidated Financial Statements). |
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THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value The following table presents the fair value, carrying value and cost of our non-derivative instruments at September 30, 2018 and December 31, 2017. Information about the fair value of our derivative instruments can be found in Note 6 – Derivative Instruments and Hedging Activities.
These financial instruments are not subject to master netting agreements or collateral requirements and as such are presented in the Condensed Balance Sheet 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 nine months ended September 30, 2018 or 2017. Master Trust Assets DP&L established a Master Trust to hold assets that could be used for the benefit of employees participating in employee benefit plans and these assets are not used for general operating purposes. ASU 2016-01 “Recognition and Measurement of Financial Assets and Financial Liabilities” was effective as of January 1, 2018. This ASU requires the change in the fair value of equity instruments to be recorded in income rather than in OCI. Equity Instruments were defined to include all mutual funds, regardless of the underlying investments. Therefore, as of January 1, 2018, AOCI of $1.7 million ($1.1 million net of tax) was reversed to Retained Earnings and all future changes to fair value on the Master Trust Assets will be included in income in the period that the changes occur. These changes to fair value were not material for the nine months ended September 30, 2018. 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 deferred assets on the balance sheets. DP&L had $1.7 million ($1.1 million after tax) of unrealized gains and immaterial unrealized losses on the Master Trust assets in AOCI at December 31, 2017. 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 the 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 2020 to 2061. The fair value of assets and liabilities at September 30, 2018 and December 31, 2017 and the respective category within the fair value hierarchy for DP&L is as follows:
Our financial instruments are valued using the market approach in the following categories:
All of the inputs to the fair value of our derivative instruments are from quoted market prices. Our long-term debt is fair valued for disclosure purposes only and most of the fair values are determined using quoted market prices in inactive markets. These fair value inputs are considered Level 2 in the fair value hierarchy. As the Wright-Patterson Air Force Base note is not publicly traded, fair value is assumed to equal carrying value. These fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs. Non-recurring Fair Value Measurements We use the cost approach to determine the fair value of our AROs, which is estimated by discounting expected cash outflows to their present value at the initial recording of the liability. Cash outflows are based on the approximate future disposal cost as determined by market information, historical information or other management estimates. These inputs to the fair value of the AROs would be considered Level 3 inputs under the fair value hierarchy. The balance of AROs was $4.7 million and $8.0 million at September 30, 2018 and December 31, 2017, respectively. |
Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities In the normal course of business, DPL enters into interest rate hedges to manage the interest rate risk of our variable rate debt. All of our derivative instruments are used for risk management purposes and are designated as cash flow hedges if they qualify under FASC 815 for accounting purposes. In prior periods, we have used commodity derivatives principally to manage the risk of changes in market prices for commodities. Cash Flow Hedges As part of our risk management processes, we identify the relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. The fair values of cash flow hedges determined by current public market prices will continue to fluctuate with changes in market prices up to contract expiration. The effective portion of the hedging transaction is recognized in AOCI and transferred to earnings using specific identification of each contract when the forecasted hedged transaction takes place or when the forecasted hedged transaction is probable of not occurring. The ineffective portion of the cash flow hedge is recognized in earnings in the current period. All risk components were considered to determine the hedge effectiveness of the cash flow hedges. As of September 30, 2018, we have two interest rate swaps to hedge the variable interest on our $140.0 million variable interest rate tax-exempt First Mortgage Bonds. The interest rate swaps have a combined notional amount of $140.0 million and will settle monthly based on a one-month LIBOR. As of December 31, 2017, the interest rate swaps had a combined notional amount of $200.0 million. On March 29, 2018, we settled $60.0 million of these interest rate swaps due to the partial repayment of the underlying debt and a gain of $0.8 million was recorded as a reduction to interest expense. Since the swap was partially settled, the remaining swaps were de-designated and then re-designated with a new hypothetical derivative. The AOCI associated with the remaining swaps will be amortized out of AOCI into interest expense over the remaining life of the underlying debt. We had previously entered into interest rate derivative contracts to manage interest rate exposure related to anticipated borrowings of fixed-rate debt. These interest rate derivative contracts were settled in 2013 and we continue to amortize amounts out of AOCI into interest expense. The following tables provide information concerning gains or losses recognized in AOCI for the cash flow hedges for the three and nine months ended September 30, 2018 and 2017:
Net gains or losses associated with the ineffective portion of the hedging transactions were immaterial in the periods presented. Financial Statement Effect DPL has elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivative agreements. The fair value derivative position of DPL's interest rate swaps are as follows:
Any ineffectiveness on the interest rate hedges and the monthly settlement of the interest rate hedges is recorded in interest expense within the Condensed Consolidated Statements of Operations. |
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THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities In the normal course of business, DP&L enters into interest rate hedges to manage the interest rate risk of our variable rate debt. All of our derivative instruments are used for risk management purposes and are designated as cash flow hedges if they qualify under FASC 815 for accounting purposes. In prior periods, we have used commodity derivatives principally to manage the risk of changes in market prices for commodities. Cash Flow Hedges As part of our risk management processes, we identify the relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. The fair values of cash flow hedges determined by current public market prices will continue to fluctuate with changes in market prices up to contract expiration. The effective portion of the hedging transaction is recognized in AOCI and transferred to earnings using specific identification of each contract when the forecasted hedged transaction takes place or when the forecasted hedged transaction is probable of not occurring. The ineffective portion of the cash flow hedge is recognized in earnings in the current period. All risk components were considered to determine the hedge effectiveness of the cash flow hedges. As of September 30, 2018, we have two interest rate swaps to hedge the variable interest on our $140.0 million variable interest rate tax-exempt First Mortgage Bonds. The interest rate swaps have a combined notional amount of $140.0 million and will settle monthly based on a one-month LIBOR. As of December 31, 2017, the interest rate swaps had a combined notional amount of $200.0 million. On March 29, 2018, we settled $60.0 million of these interest rate swaps due to the partial repayment of the underlying debt and a gain of $0.8 million was recorded as a reduction to interest expense. Since the swap was partially settled, the remaining swaps were de-designated and then re-designated with a new hypothetical derivative. The AOCI associated with the remaining swaps will be amortized out of AOCI into interest expense over the remaining life of the underlying debt. The following tables provide information concerning gains or losses recognized in AOCI for the cash flow hedges for the three and nine months ended September 30, 2018 and 2017:
Net gains or losses associated with the ineffective portion of the hedging transactions were immaterial in the periods presented. Financial Statement Effect DP&L has elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivative agreements. The fair value derivative position of DP&L's interest rate swaps are as follows:
Any ineffectiveness on the interest rate hedges and the monthly settlement of the interest rate hedges is recorded in interest expense within the Condensed Statements of Operations. |
Debt Obligations |
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Debt Obligations | Long-term Debt The following table summarizes DPL's outstanding long-term debt.
Deferred financing costs are amortized over the remaining life of the debt using the effective interest method. Premiums or discounts on long-term debt are amortized over the remaining life of the debt using the effective interest method. DPL has $99.0 million outstanding principal on its 6.75% Senior Notes due October 1, 2019. We believe that we will be able to meet this obligation through existing cash balances, cash generated from operating activities, borrowing capacity on our credit facility, and/or other financing options based on our current credit ratings. Line of credit At September 30, 2018 and December 31, 2017, DPL had no outstanding borrowings on its line of credit. At September 30, 2018 and December 31, 2017, DP&L had $0.0 million and $10.0 million in outstanding borrowings on its line of credit, respectively. Significant transactions On March 30, 2018, DPL issued a Notice of Partial Redemption to the Trustee (U.S. Bank) on the DPL 6.75% Senior Notes due 2019. DPL notified the trustee that it was calling $101.0 million of the $200.0 million outstanding principal amount of these notes. These bonds were redeemed at par plus accrued interest and a make-whole premium of $5.1 million on April 30, 2018 with cash on hand. On March 30, 2018, DP&L commenced a redemption of $60.0 million of outstanding tax exempt First Mortgage Bonds due 2020 at par value (plus accrued and unpaid interest). These bonds were redeemed at par plus accrued interest on April 30, 2018 with cash on hand. On March 27, 2018, DPL made a $70.0 million prepayment to eliminate the outstanding balance of its bank term loan in full. As of March 31, 2018, the term loan was fully paid off. On January 3, 2018, DP&L and its lenders amended DP&L's Term Loan B credit agreement. The amendment (a) modified the definition of "applicable rate", from 2.25% per annum to 1.00% per annum - in the case of the Base Rate, and from 3.25% per annum to 2.00% per annum - in the case of the Eurodollar Rate, and (b) modified a "call protection" provision which as modified stated that in the event the loan was repriced or any portion of the loans were prepaid, repaid, refinanced, substituted, or replaced on or prior July 3, 2018, such prepayment, acceleration, repayment, refinancing, substitution or replacement would have been made at 101% of the principal amount so prepaid, repaid, refinanced, substituted or replaced. After July 3, 2018, any such transaction would occur at 100% of the principal amount of the then outstanding loans. There were no such transactions prior to July 3, 2018. Long-term debt covenants and restrictions DPL’s revolving credit agreement has two financial covenants. The first financial covenant, a Total Debt to EBITDA ratio, is calculated at the end of each fiscal quarter by dividing total debt at the end of the current quarter by consolidated EBITDA for the four prior fiscal quarters. The ratio in the agreement is not to exceed 7.25 to 1.00 for any fiscal quarter ending September 30, 2015 through December 31, 2018; it then steps down not to exceed 7.00 to 1.00 for any fiscal quarter ending January 1, 2019 through June 30, 2019; it then steps down not to exceed 6.75 to 1.00 for any fiscal quarter ending July 1, 2019 through December 31, 2019; and it then steps down not to exceed 6.50 to 1.00 for any fiscal quarter ending January 1, 2020 and afterward. As of September 30, 2018, this financial covenant was met with a ratio of 5.34 to 1.00. 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 2.10 to 1.00 for any fiscal quarter ending September 30, 2015 through December 31, 2018; it then steps up to be not less than 2.25 to 1.00 for any fiscal quarter ending January 1, 2019 and afterward. As of September 30, 2018, this financial covenant was met with a ratio of 2.76 to 1.00. DPL’s secured revolving credit agreement and senior unsecured notes due 2019 also restricts dividend payments from DPL to AES, such that DPL cannot make dividend payments unless at the time of, and/or as a result of the distribution, (i) DPL’s leverage ratio does not exceed 0.67 to 1.00 and DPL’s interest coverage ratio is not less than 2.50 to 1.00 or, if such ratios are not within the parameters, (ii) DPL’s senior long-term debt rating from two of the three major credit rating agencies is at least investment grade. As of September 30, 2018, DPL’s leverage ratio was at 1.51 to 1.00. As a result, as of September 30, 2018, DPL was prohibited under each of these agreements from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries). DPL is also restricted from making dividend and tax sharing payments from DPL to AES per its 2017 ESP. This order restricts dividend payments from DPL to AES during the term of the 2017 ESP and restricts tax sharing payments from DPL to AES during the term of the DMR. DP&L’s unsecured revolving credit agreement and Bond Purchase and Covenants Agreement (financing document entered into in connection with the sale of $200.0 million of variable rate tax-exempt First Mortgage Bonds, dated as of August 1, 2015) have two financial covenants. The first measures Total Debt to Total Capitalization and is calculated, at the end of each fiscal quarter, by dividing total debt at the end of the quarter by total capitalization at the end of the quarter. DP&L’s Total Debt to Total Capitalization ratio shall not be greater than 0.65 to 1.00. Except that, after Generation Separation and the twelve-month period following (October 1, 2017 to September 30, 2018) the ratio shall be a) increased to 0.75 to 1.00 or b) suspended if DP&L’s long-term indebtedness is less than or equal to $750.0 million. Additionally, the ratio shall be suspended any time after separation during which DP&L maintains a rating of BBB- (or in the case of Moody’s Investors Service, Inc. Baa3) or higher with a stable outlook from at least one of Fitch Investors Service Inc., Standard & Poor’s Ratings Services or Moody’s Investors Service, Inc. The Total Debt to Capitalization covenant is calculated as the sum of DP&L’s current and long-term portion of debt, divided by the total of DP&L’s net worth and total debt. As of September 30, 2018, DP&L's ratings meet those requirements and this ratio is suspended for the quarter ended September 30, 2018. The second financial covenant measures EBITDA to Interest Expense. The Total Consolidated EBITDA to Consolidated Interest Charges ratio is calculated, at the end of each fiscal quarter, by dividing consolidated 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 2.50 to 1.00. This covenant was met with a ratio of 7.35 to 1.00 as of September 30, 2018. As of September 30, 2018, DPL and DP&L were in compliance with all debt covenants, including the financial covenants described above. DP&L does not have any meaningful restrictions in its debt financing documents prohibiting dividends to its parent, DPL. Substantially all property, plant & equipment of DP&L is subject to the lien of the mortgage securing DP&L’s First and Refunding Mortgage. |
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THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Obligations | Long-term Debt The following table summarizes DP&L's outstanding long-term debt.
Deferred financing costs are amortized over the remaining life of the debt using the effective interest method. Premiums or discounts on long-term debt are amortized over the remaining life of the debt using the effective interest method. Line of credit At September 30, 2018 and December 31, 2017, DP&L had $0.0 million and $10.0 million in outstanding borrowings on its line of credit, respectively. Significant transactions On March 30, 2018, DP&L commenced a redemption of $60.0 million of outstanding tax exempt First Mortgage Bonds due 2020 at par value (plus accrued and unpaid interest). These bonds were redeemed at par plus accrued interest on April 30, 2018 with cash on hand. On January 3, 2018, DP&L and its lenders amended DP&L's Term Loan B credit agreement. The amendment (a) modified the definition of "applicable rate", from 2.25% per annum to 1.00% per annum - in the case of the Base Rate, and from 3.25% per annum to 2.00% per annum - in the case of the Eurodollar Rate, and (b) modified a "call protection" provision which as modified stated that in the event the loan was repriced or any portion of the loans were prepaid, repaid, refinanced, substituted, or replaced on or prior July 3, 2018, such prepayment, acceleration, repayment, refinancing, substitution or replacement would have been made at 101% of the principal amount so prepaid, repaid, refinanced, substituted or replaced. After July 3, 2018, any such transaction would occur at 100% of the principal amount of the then outstanding loans. There were no such transactions prior to July 3, 2018. Long-term debt covenants and restrictions DP&L’s unsecured revolving credit agreement and Bond Purchase and Covenants Agreement (financing document entered into in connection with the sale of $200.0 million of variable rate tax-exempt First Mortgage Bonds, dated as of August 1, 2015) have two financial covenants. The first measures Total Debt to Total Capitalization and is calculated, at the end of each fiscal quarter, by dividing total debt at the end of the quarter by total capitalization at the end of the quarter. DP&L’s Total Debt to Total Capitalization ratio shall not be greater than 0.65 to 1.00. Except that, after Generation Separation and the twelve-month period following (October 1, 2017 to September 30, 2018) the ratio shall be a) increased to 0.75 to 1.00 or b) suspended if DP&L’s long-term indebtedness is less than or equal to $750.0 million. Additionally, the ratio shall be suspended any time after separation during which DP&L maintains a rating of BBB- (or in the case of Moody’s Investors Service, Inc. Baa3) or higher with a stable outlook from at least one of Fitch Investors Service Inc., Standard & Poor’s Ratings Services or Moody’s Investors Service, Inc. The Total Debt to Capitalization covenant is calculated as the sum of DP&L’s current and long-term portion of debt, divided by the total of DP&L’s net worth and total debt. As of September 30, 2018, DP&L's ratings meet those requirements and this ratio is suspended for the quarter ended September 30, 2018. The second financial covenant measures EBITDA to Interest Expense. The Total Consolidated EBITDA to Consolidated Interest Charges ratio is calculated, at the end of each fiscal quarter, by dividing consolidated 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 2.50 to 1.00. This covenant was met with a ratio of 7.35 to 1.00 as of September 30, 2018. As of September 30, 2018, DP&L was in compliance with all debt covenants, including the financial covenants described above. DP&L does not have any meaningful restrictions in its debt financing documents prohibiting dividends to its parent, DPL. Substantially all property, plant & equipment of DP&L is subject to the lien of the mortgage securing DP&L’s First and Refunding Mortgage. |
Income Taxes |
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Income Taxes | Income Taxes The following table details the effective tax rates for the three and nine months ended September 30, 2018 and 2017.
Income tax expense for the nine months ended September 30, 2018 and 2017 was calculated using the estimated annual effective income tax rates for 2018 and 2017 of 16.8% and 36.0%, respectively. Management estimates the annual effective tax rate based on its forecast of annual pre-tax income. To the extent that actual pre-tax results for the year differ from the forecasts applied to the most recent interim period, the estimated rates could be materially different from the actual effective tax rates. The decrease in the estimated annual effective rate compared to the same period in 2017 is primarily due to the effects of the TCJA. The primary impact of the TCJA was lowering of the statutory corporate income tax rate to 21% from 35% effective January 1, 2018. The rate was further decreased by the change in estimated flow-through depreciation. These decreases were partially offset by the repeal of the manufacturer’s production deduction. For the nine months ended September 30, 2018, DPL’s current period effective tax rate was lower than the estimated annual effective rate primarily due to discrete tax items relating to the Beckjord Facility transaction (see Note 14 – Dispositions). Per the terms of DP&L's 2017 ESP, DPL will not make any tax-sharing payments to AES and AES will forgo collection of the payments during the term of the DMR. As such, during the nine months ended September 30, 2018, DPL converted $30.2 million of accrued tax sharing liabilities with AES to additional equity investment in DPL. |
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Income Taxes | Income Taxes The following table details the effective tax rates for the three and nine months ended September 30, 2018 and 2017.
Income tax expense for the nine months ended September 30, 2018 and 2017 was calculated using the estimated annual effective income tax rates for 2018 and 2017 of 17.1% and 19.0%, respectively. Management estimates the annual effective tax rate based on its forecast of annual pre-tax income. To the extent that actual pre-tax results for the year differ from the forecasts applied to the most recent interim period, the estimated rates could be materially different from the actual effective tax rates. The decrease in the estimated annual effective rate compared to the same period in 2017 is primarily due to the effects of the TCJA. The primary impact of the TCJA was lowering of the statutory corporate income tax rate to 21% from 35% effective January 1, 2018. The rate was further decreased by the change in estimated flow-through depreciation. These decreases were partially offset by the repeal of the manufacturer’s production deduction. For the nine months ended September 30, 2018, DP&L’s current period effective tax rate was lower than the estimated annual effective rate primarily due to discrete tax items relating to the Beckjord Facility transaction (see Note 14 – Dispositions). |
Benefit Plans |
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Pension and Postretirement Benefits | Benefit Plans DP&L 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 $7.8 million in employer contributions during the nine months ended September 30, 2018 and $5.0 million during the nine months ended September 30, 2017. 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 DP&L employees who are now employed by the Service Company that are still participants in the DP&L plan. The net periodic benefit cost of the pension benefit plans for the three and nine months ended September 30, 2018 and 2017 was:
In addition, DP&L 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 $12.8 million at September 30, 2018 and $12.7 million at December 31, 2017 were not material to the financial statements in the periods covered by this report. Benefit payments, which reflect future service, are estimated to be paid as follows:
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Pension and Postretirement Benefits | Benefit Plans DP&L 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 $7.8 million in employer contributions during the nine months ended September 30, 2018 and $5.0 million during the nine months ended September 30, 2017. 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 DP&L employees who are now employed by the Service Company or for amounts billed to AES Ohio Generation for employees employed by AES Ohio Generation that are still participants in the DP&L plan. The net periodic benefit cost of the pension benefit plans for the three and nine months ended September 30, 2018 and 2017 was:
In addition, DP&L 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 $12.8 million at September 30, 2018 and $12.7 million at December 31, 2017 were not material to the financial statements in the periods covered by this report. Benefit payments, which reflect future service, are estimated to be paid as follows:
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Shareholder's Equity |
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Shareholder's Equity | Shareholder's Equity Capital Contributions from AES DP&L's approved six-year 2017 ESP restricts DPL from making dividend payments to its parent company, AES, during the term of the ESP, as well as making tax-sharing payments to AES during the term of the DMR. The 2017 ESP also requires that existing tax payments owed by DPL to AES, and similar tax payments that accrue during the term of the DMR, be converted into equity investments in DPL. For the nine months ended September 30, 2018, AES made capital contributions of $30.2 million by converting the amount owed to it by DPL related to tax-sharing payments for current tax liabilities. |
THE DAYTON POWER AND LIGHT COMPANY [Member] | |
Class of Stock [Line Items] | |
Shareholder's Equity | Shareholder’s Equity DP&L has 250,000,000 authorized shares of common stock, $0.01 par value, of which 41,172,173 are outstanding at September 30, 2018. All common shares are held by DP&L’s parent, DPL. As part of the PUCO’s approval of the Merger, DP&L agreed to maintain a capital structure that includes an equity ratio, calculated as total equity divided by total capitalization, of at least 50 percent and to not have a negative retained earnings balance. As of September 30, 2018, DP&L's equity ratio was 42% and retained earnings balance was negative. It is unknown what impact, if any, this will have on DP&L. In the generation separation order dated September 17, 2014, the PUCO permitted DP&L to temporarily maintain long-term debt of $750.0 million or 75% of its rate base, whichever is greater, until January 1, 2018. The order also stated that, if DP&L cannot rebalance its capital structure by January 1, 2018, it should file an application explaining why it was unable to do so and the steps that it was taking to get its equity ratio back to at least 50 percent. DP&L has complied with the PUCO's order by filing such an application. After considering the payments noted in Note 7 – Long-term Debt, DP&L's long-term debt is $594.9 million. Capital Contribution and Returns of Capital During the nine months ended September 30, 2018, DP&L received an $80.0 million capital contribution from its parent, DPL. In addition, DP&L made returns of capital payments of $43.8 million to DPL. During the nine months ended September 30, 2017, DP&L made return of capital payments of $19.0 million to DPL. In addition, DPL made a $70.0 million capital contribution to DP&L during the third quarter of 2017. |
Contractual Obligations, Commercial Commitments and Contingencies |
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Contractual Obligations, Commercial Commitments and Contingencies | Contractual Obligations, Commercial Commitments and Contingencies Guarantees In the normal course of business, DPL enters into various agreements with its wholly-owned subsidiary, AES Ohio Generation, providing financial or performance assurance to third parties. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to this subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish this subsidiary's intended commercial purposes. At September 30, 2018, DPL had $23.5 million of guarantees on behalf of AES Ohio Generation to third parties for future financial or performance assurance under such agreements. The guarantee arrangements entered into by DPL with these third parties cover select present and future obligations of AES Ohio Generation to such beneficiaries and are terminable by DPL upon written notice to the beneficiaries within a certain time. The carrying amount of obligations for commercial transactions covered by these guarantees recorded in our Condensed Consolidated Balance Sheets was $0.0 million and $0.9 million at September 30, 2018 and December 31, 2017, respectively. To date, DPL has not incurred any losses related to the guarantees of AES Ohio Generation’s obligations and we believe it is remote that DPL would be required to perform or incur any losses in the future associated with any of the above guarantees. Equity Ownership Interest DP&L has a 4.9% equity ownership interest in OVEC, which is recorded using the cost method of accounting under GAAP. DP&L, along with several non-affiliated energy companies party to the 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 DP&L is the same as its equity ownership interest. At September 30, 2018, DP&L could be responsible for the repayment of 4.9%, or $68.8 million, of $1,404.9 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 DP&L to avoid a default in the event that other OVEC members defaulted on their respective OVEC obligations. One of the other OVEC members, with a 4.85% interest in OVEC, filed for bankruptcy protection and the bankruptcy court approved that member's rejection of the OVEC arrangement and its related obligations on July 31, 2018. We do not expect these events to have a material impact on our financial condition, results of operations or cash flows. Commercial Commitments and Contractual Obligations There have been no material changes, outside the ordinary course of business, to our commercial commitments and to the information disclosed in the contractual obligations table in our Form 10-K for the fiscal year ended December 31, 2017. 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 September 30, 2018, cannot be reasonably determined. Environmental Matters DPL’s and DP&L’s 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:
In addition to imposing continuing compliance obligations, these 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 or cash flows. We have several pending environmental matters associated with our current and previously owned coal-fired generation units. Some of these matters could have material adverse impacts on our results of operations, financial condition or cash flows. |
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Contractual Obligations, Commercial Commitments and Contingencies | Contractual Obligations, Commercial Commitments and Contingencies Equity Ownership Interest DP&L has a 4.9% equity ownership interest in OVEC, which is recorded using the cost method of accounting under GAAP. DP&L, along with several non-affiliated energy companies party to the 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 DP&L is the same as its equity ownership interest. At September 30, 2018, DP&L could be responsible for the repayment of 4.9%, or $68.8 million, of $1,404.9 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 DP&L to avoid a default in the event that other OVEC members defaulted on their respective OVEC obligations. One of the other OVEC members, with a 4.85% interest in OVEC, filed for bankruptcy protection and the bankruptcy court approved that member's rejection of the OVEC arrangement and its related obligations on July 31, 2018. We do not expect these events to have a material impact on our financial condition, results of operations or cash flows. Commercial Commitments and Contractual Obligations There have been no material changes, outside the ordinary course of business, to our commercial commitments and to the information disclosed in the contractual obligations table in our Form 10-K for the fiscal year ended December 31, 2017. 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 September 30, 2018, cannot be reasonably determined. Environmental Matters DP&L’s 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:
In addition to imposing continuing compliance obligations, these 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 or cash flows. |
Business Segments |
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Business Segments | Business Segments Beginning with the second quarter of 2018, DPL has presented the results of operations of Miami Fort Station, Zimmer Station, the Peaker Assets, Stuart Station, and Killen Station as discontinued operations as a group of components for all periods presented. For more information, see Note 15 – Discontinued Operations of Notes to DPL's Condensed Consolidated Financial Statements. AES Ohio Generation now only has operating activity coming from its undivided ownership interest in Conesville, which does not meet the thresholds to be a separate reportable operating segment. Because of this, DPL now manages its business through only one reportable operating segment, the Utility segment, which was previously referred to as the Transmission and Distribution 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 primarily of DP&L’s electric transmission and distribution businesses, which distribute electricity to residential, commercial, industrial and governmental customers. DP&L distributes electricity to more than 524,000 retail customers located in a 6,000-square mile area of West Central Ohio. DP&L’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, DP&L applies the accounting standards for regulated operations to its electric transmission and distribution businesses 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 and the historical results of DP&L’s Beckjord Facility, which was closed in 2014 and transferred to a third party in the first quarter of 2018, and Hutchings Coal generating facility, which was closed in 2013. These assets did not transfer to AES Ohio Generation as part of DP&L's Generation Separation on October 1, 2017. Thus, they are grouped within the Utility segment for segment reporting purposes. In addition, regulatory deferrals and collections, which include fuel deferrals in historical periods, are included in the Utility segment. 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 and adjustments related to purchase accounting from the Merger. DPL's undivided interest in Conesville is now included within the "Other" column as it no longer meets the requirement for disclosure as a reportable operating segment, since the results of operations of the other Generation plants are now presented as discontinued operations. 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 2017 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:
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Revenue (Notes) |
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Revenue from Contract with Customer [Text Block] | Revenue Revenue is primarily earned from retail and wholesale electricity sales and electricity transmission and distribution delivery services. Revenue is recognized upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Revenue is recorded net of any taxes assessed on and collected from customers, which are remitted to the governmental authorities. Retail Revenues – DP&L energy sales to utility customers are based on the reading of meters at the customer's location that occurs on a systematic basis throughout the month. DP&L sells electricity directly to end-users, such as homes and businesses, and bills customers directly. Performance obligations for retail revenues are satisfied over time as energy is delivered and the same method is used to measure progress, and thus the performance obligation meets the criteria to be considered a series. This includes both the promise to transfer energy and other distribution and/or transmission services. In exchange for the exclusive right to sell or distribute electricity in our service area, DP&L is subject to rate regulation by federal and state regulators. This regulation sets the framework for the prices (“tariffs”) that DP&L is allowed to charge customers for electricity. Since tariffs are approved by the regulator, the price that DP&L has the right to bill corresponds directly with the value to the customer of DP&L's performance completed in each period. Therefore, revenue under these contracts is recognized using an output method measured by the MWhs delivered each month at the approved tariff. In cases where a customer chooses to receive generation services from a CRES provider, the price for generation services is negotiated between the customer and the CRES provider, and DP&L only serves as a billing agent if requested by the CRES provider. As such, DP&L recognizes the consolidated billing arrangement with the CRES provider on a net basis, thereby recording no revenue for the generation component. Retail revenue from these customers would only be related to transmission and distribution charges. Wholesale Revenues – All of the power produced from DPL's ownership interest in Conesville and DP&L's share of the power produced at OVEC is sold to PJM, and these are classified as Wholesale revenues. In PJM, the sale of energy as wholesale revenue is separately identifiable from participation in the Capacity Market and the two products can be transacted independently of one another. Therefore, wholesale revenues are a separate contract with a single performance obligation. Revenue is recorded based on the quantities (MWh) delivered in each hour during each month at the spot price, making the contract effectively “month-to-month”. RTO Revenues – Compensation for use of DP&L’s transmission assets and compensation for various ancillary services are classified as RTO revenues. As DP&L owns and operates transmission lines in southwest Ohio within PJM, demand charges collected from network customers by PJM are then allocated to the appropriate transmission owners (i.e. DP&L) and recognized as transmission revenues. Additionally, as an owner of generation and transmission assets within PJM, DPL is compensated for various ancillary services; such as reactive supply, regulation services, scheduling reserves, operating reserves, spinning/synchronized reserves as well as congestion credits that are provided to PJM via these assets. Transmission revenues have a single performance obligation, as transmission services represent a distinct service. Additionally, as the performance obligation is satisfied over time and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. The price that DP&L as the transmission operator has the right to bill (received as a credit from PJM) corresponds directly with the value to the customer of performance completed in each period, as the price paid is the allocation of the tariff rate (as approved by the regulator) charged to network participants. Ancillary service revenues have a single performance obligation, as they represent a distinct service. Additionally, as the performance obligation is satisfied over time and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. The price that DPL has the right to bill corresponds directly with the value to the customer of performance completed in each period as the price paid is at the market price or allocation of the tariff rate (which was approved by the regulator) charged to network participants. RTO Capacity Revenues – Compensation received from PJM for making installed generation capacity available to satisfy system integrity and reliability requirements is classified as RTO capacity revenues. Capacity, which is a stand-ready obligation to deliver energy when called upon by the RTO, is measured using MWs. If plant availability exceeds a contractual target, we may receive a performance bonus payment, or if the plant availability falls below a guaranteed minimum target, we may incur a non-availability penalty. Such bonuses or penalties represent a form of variable consideration and are estimated and recognized when it is probable that there will not be a significant reversal and therefore the transaction price is recognized on an output basis based on the MWs. RTO capacity revenues have a single performance obligation, as capacity is a distinct good. Additionally, as the performance obligation is satisfied over time and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. The capacity price is set through a competitive auction process established by PJM. DPL's revenue from contracts with customers was $195.1 million and $560.1 million for the three and nine months ended September 30, 2018, respectively. The following table presents our revenue from contracts with customers and other revenue by segment for the three and nine months ended September 30, 2018:
The balances of receivables from contracts with customers were $65.4 million and $63.0 million as of September 30, 2018 and January 1, 2018, respectively. Payment terms for all receivables from contracts with customers are typically within 30 days. We have elected to apply the optional disclosure exemptions under FASC 606. Therefore, we have no disclosures pertaining to revenue expected to be recognized in any future year related to remaining performance obligations, as we exclude contracts with an original length of one year or less, contracts for which we recognize revenue based on the amount we have the right to invoice for services performed, and variable consideration allocated entirely to a wholly unsatisfied performance obligation when the consideration relates specifically to our efforts to satisfy the performance obligation and depicts the amount to which we expect to be entitled for DPL. |
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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 of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Revenue is recorded net of any taxes assessed on and collected from customers, which are remitted to the governmental authorities. Retail Revenues – DP&L energy sales to utility customers are based on the reading of meters at the customer's location that occurs on a systematic basis throughout the month. DP&L sells electricity directly to end-users, such as homes and businesses, and bills customers directly. Performance obligations for retail revenues are satisfied over time as energy is delivered and the same method is used to measure progress, and thus the performance obligation meets the criteria to be considered a series. This includes both the promise to transfer energy and other distribution and/or transmission services. In exchange for the exclusive right to sell or distribute electricity in our service area, DP&L is subject to rate regulation by federal and state regulators. This regulation sets the framework for the prices (“tariffs”) that DP&L is allowed to charge customers for electricity. Since tariffs are approved by the regulator, the price that DP&L has the right to bill corresponds directly with the value to the customer of DP&L's performance completed in each period. Therefore, revenue under these contracts is recognized using an output method measured by the MWhs delivered each month at the approved tariff. In cases where a customer chooses to receive generation services from a CRES provider, the price for generation services is negotiated between the customer and the CRES provider, and DP&L only serves as a billing agent if requested by the CRES provider. As such, DP&L recognizes the consolidated billing arrangement with the CRES provider on a net basis, thereby recording no revenue for the generation component. Retail revenue from these customers would only be related to transmission and distribution charges. Wholesale Revenues – DP&L's share of the power produced at OVEC is sold to PJM, and these are classified as Wholesale revenues. In PJM, the sale of energy as wholesale revenue is separately identifiable from participation in the Capacity Market and the two products can be transacted independently of one another. Therefore, wholesale revenues are a separate contract with a single performance obligation. Revenue is recorded based on the quantities (MWh) delivered in each hour during each month at the spot price, making the contract effectively “month-to-month”. RTO Revenues – Compensation for use of DP&L’s transmission assets are classified as RTO revenues. As DP&L owns and operates transmission lines in southwest Ohio within PJM, demand charges collected from network customers by PJM are then allocated to the appropriate transmission owners (i.e. DP&L) and recognized as transmission revenues. Additionally, DP&L, through its ownership interest in OVEC, is compensated for various generation related ancillary services, such as reactive supply, regulation services, scheduling reserves, operating reserves, spinning/synchronized reserves as well congestion credits that may be provided to PJM via these assets. Transmission revenues have a single performance obligation, as transmission services represent a distinct service. Additionally, as the performance obligation is satisfied over time and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. The price that DP&L as the transmission operator has the right to bill (received as a credit from PJM) corresponds directly with the value to the customer of performance completed in each period, as the price paid is the allocation of the tariff rate (as approved by the regulator) charged to network participants. RTO Capacity Revenues – Compensation received from PJM for making installed generation capacity available to satisfy system integrity and reliability requirements is classified as RTO capacity revenues. Capacity, which is a stand-ready obligation to deliver energy when called upon by the RTO, is measured using MWs. If plant availability exceeds a contractual target, we may receive a performance bonus payment, or if the plant availability falls below a guaranteed minimum target, we may incur a non-availability penalty. Such bonuses or penalties represent a form of variable consideration and are estimated and recognized when it is probable that there will not be a significant reversal and therefore the transaction price is recognized on an output basis based on the MWs. RTO capacity revenues have a single performance obligation, as capacity is a distinct good. Additionally, as the performance obligation is satisfied over time and the same method is used to measure progress, the performance obligation meets the criteria to be considered a series. The capacity price is set through a competitive auction process established by PJM. DP&L's revenue from contracts with customers was $186.1 million and $532.1 million for the three and nine months ended September 30, 2018, respectively. The following table presents our revenue from contracts with customers and other revenue for the three and nine months ended September 30, 2018:
The balances of receivables from contracts with customers were $64.0 million and $62.1 million as of September 30, 2018 and January 1, 2018, respectively. Payment terms for all receivables from contracts with customers are typically within 30 days. We have elected to apply the optional disclosure exemptions under FASC 606. Therefore, we have no disclosures pertaining to revenue expected to be recognized in any future year related to remaining performance obligations, as we exclude contracts with an original length of one year or less, contracts for which we recognize revenue based on the amount we have the right to invoice for services performed, and variable consideration allocated entirely to a wholly unsatisfied performance obligation when the consideration relates specifically to our efforts to satisfy the performance obligation and depicts the amount to which we expect to be entitled for DP&L. |
Dispositions (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Dispositions Beckjord Facility – On February 26, 2018, DP&L and its co-owners of the retired Beckjord Facility agreed to transfer their interests in the retired Facility to a third party, including their obligations to remediate the Facility and its site, and the transfer occurred on that same date. As a result, DPL recognized a loss on the transfer of $11.7 million and made cash expenditures of $14.5 million, inclusive of cash expenditures for the transfer charges. The Beckjord Facility was retired in 2014, and, as such, the income / (loss) from continuing operations before income tax related to the Beckjord Facility was immaterial for the nine months ended September 30, 2018 and for the three and nine months ended September 30, 2017, excluding the loss on transfer noted above. Prior to the transfer, the Beckjord Facility was included in the Utility segment. Discontinued Operations On December 8, 2017, DPL and AES Ohio Generation completed the sale transaction of their entire undivided interest in the Miami Fort Station and the Zimmer Station. On March 27, 2018, DPL and AES Ohio Generation completed the sale transaction of the Peaker assets to Kimura Power, LLC, and this transaction resulted in a loss on sale of $1.9 million for the nine months ended September 30, 2018. Further, on May 31, 2018, DPL and AES Ohio Generation retired the Stuart Station coal-fired and diesel-fired generating units and the Killen Station coal-fired generating unit and combustion turbine, as planned. Consequently, in the second quarter of 2018, DPL determined that the disposal of this group of components as a whole represents a strategic shift by us to exit generation, and, as such, qualifies to be presented as discontinued operations. Therefore, the results of operations and financial position for this group of components were reported as such in the Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets for all periods presented. The following table summarizes the major categories of assets and liabilities at the dates indicated:
The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:
Cash flows related to discontinued operations are included in our Condensed Consolidated Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $(7.2) million and $27.1 million for the three months ended September 30, 2018 and 2017, respectively, and $51.9 million and $38.5 million for the nine months ended September 30, 2018 and 2017, respectively. Cash flows from investing activities for discontinued operations were $0.0 million and $4.1 million for the three months ended September 30, 2018 and 2017, respectively, and $233.8 million and $(13.9) million for the nine months ended September 30, 2018 and 2017, respectively. The PUCO authorized DP&L to maintain long-term debt of $750.0 million or 75% of its rate base, whichever is greater, until January 1, 2018, or to file an application to explain why it would not achieve those metrics. Accordingly, $750.0 million of debt and the pro rata interest expense associated with that debt were allocated to continuing operations. All remaining interest expense was included in the discontinued operations above. The interest expense included in discontinued operations was $0.0 million and $0.2 million for the three and nine months ended September 30, 2017, respectively. |
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Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Generation Separation On October 1, 2017, DP&L completed the transfer of its generating plants, the real property on which the generation plants and generation-related assets are sited, step-up transformers and other transmission plant assets used to interconnect with the electric transmission grid, fuel inventory, equipment inventory and spare parts, working capital, and other miscellaneous generation-related assets and liabilities to AES Ohio Generation. The transfer was completed as a contribution through an asset contribution agreement to a wholly-owned subsidiary of DP&L after which DP&L then distributed all of the outstanding equity in the subsidiary to DPL and then the subsidiary was merged into AES Ohio Generation. DP&L's generation business met the criteria to be classified as a discontinued operation, and, accordingly, the historical activity has been reclassified to "Discontinued operations" in the Statements of Operations for the three and nine months ended September 30, 2017. The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the period indicated:
Cash flows related to discontinued operations are included in the Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $8.8 million and $16.6 million for the three and nine months ended September 30, 2017, respectively. Cash flows from investing activities for discontinued operations were $7.1 million and $(3.5) million for the three and nine months ended September 30, 2017, respectively. The PUCO authorized DP&L to maintain long-term debt of $750.0 million or 75% of its rate base, whichever is greater, until January 1, 2018, or to file an application to explain why it would not achieve those metrics. Accordingly, $750.0 million of debt and the pro rata interest expense associated with that debt were allocated to continuing operations. All remaining interest expense was included in the discontinued operations above. The interest expense included in discontinued operations was $0.0 million and $0.2 million for the three and nine months ended September 30, 2017, respectively. Dispositions Beckjord Facility – On February 26, 2018, DP&L and its co-owners of the retired Beckjord Facility agreed to transfer their interests in the retired Facility to a third party, including their obligations to remediate the Facility and its site, and the transfer occurred on that same date. As a result, DP&L recognized a loss on the transfer of $12.4 million and made cash expenditures of $14.5 million, inclusive of cash expenditures for the transfer charges. The Beckjord Facility was retired in 2014, and, as such, the income / (loss) from continuing operations before income tax related to the Beckjord Facility was immaterial for the nine months ended September 30, 2018 and for the three and nine months ended September 30, 2017, excluding the loss on transfer noted above. |
Generation Separation (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Dispositions Beckjord Facility – On February 26, 2018, DP&L and its co-owners of the retired Beckjord Facility agreed to transfer their interests in the retired Facility to a third party, including their obligations to remediate the Facility and its site, and the transfer occurred on that same date. As a result, DPL recognized a loss on the transfer of $11.7 million and made cash expenditures of $14.5 million, inclusive of cash expenditures for the transfer charges. The Beckjord Facility was retired in 2014, and, as such, the income / (loss) from continuing operations before income tax related to the Beckjord Facility was immaterial for the nine months ended September 30, 2018 and for the three and nine months ended September 30, 2017, excluding the loss on transfer noted above. Prior to the transfer, the Beckjord Facility was included in the Utility segment. Discontinued Operations On December 8, 2017, DPL and AES Ohio Generation completed the sale transaction of their entire undivided interest in the Miami Fort Station and the Zimmer Station. On March 27, 2018, DPL and AES Ohio Generation completed the sale transaction of the Peaker assets to Kimura Power, LLC, and this transaction resulted in a loss on sale of $1.9 million for the nine months ended September 30, 2018. Further, on May 31, 2018, DPL and AES Ohio Generation retired the Stuart Station coal-fired and diesel-fired generating units and the Killen Station coal-fired generating unit and combustion turbine, as planned. Consequently, in the second quarter of 2018, DPL determined that the disposal of this group of components as a whole represents a strategic shift by us to exit generation, and, as such, qualifies to be presented as discontinued operations. Therefore, the results of operations and financial position for this group of components were reported as such in the Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets for all periods presented. The following table summarizes the major categories of assets and liabilities at the dates indicated:
The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:
Cash flows related to discontinued operations are included in our Condensed Consolidated Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $(7.2) million and $27.1 million for the three months ended September 30, 2018 and 2017, respectively, and $51.9 million and $38.5 million for the nine months ended September 30, 2018 and 2017, respectively. Cash flows from investing activities for discontinued operations were $0.0 million and $4.1 million for the three months ended September 30, 2018 and 2017, respectively, and $233.8 million and $(13.9) million for the nine months ended September 30, 2018 and 2017, respectively. The PUCO authorized DP&L to maintain long-term debt of $750.0 million or 75% of its rate base, whichever is greater, until January 1, 2018, or to file an application to explain why it would not achieve those metrics. Accordingly, $750.0 million of debt and the pro rata interest expense associated with that debt were allocated to continuing operations. All remaining interest expense was included in the discontinued operations above. The interest expense included in discontinued operations was $0.0 million and $0.2 million for the three and nine months ended September 30, 2017, respectively. |
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Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Generation Separation On October 1, 2017, DP&L completed the transfer of its generating plants, the real property on which the generation plants and generation-related assets are sited, step-up transformers and other transmission plant assets used to interconnect with the electric transmission grid, fuel inventory, equipment inventory and spare parts, working capital, and other miscellaneous generation-related assets and liabilities to AES Ohio Generation. The transfer was completed as a contribution through an asset contribution agreement to a wholly-owned subsidiary of DP&L after which DP&L then distributed all of the outstanding equity in the subsidiary to DPL and then the subsidiary was merged into AES Ohio Generation. DP&L's generation business met the criteria to be classified as a discontinued operation, and, accordingly, the historical activity has been reclassified to "Discontinued operations" in the Statements of Operations for the three and nine months ended September 30, 2017. The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the period indicated:
Cash flows related to discontinued operations are included in the Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $8.8 million and $16.6 million for the three and nine months ended September 30, 2017, respectively. Cash flows from investing activities for discontinued operations were $7.1 million and $(3.5) million for the three and nine months ended September 30, 2017, respectively. The PUCO authorized DP&L to maintain long-term debt of $750.0 million or 75% of its rate base, whichever is greater, until January 1, 2018, or to file an application to explain why it would not achieve those metrics. Accordingly, $750.0 million of debt and the pro rata interest expense associated with that debt were allocated to continuing operations. All remaining interest expense was included in the discontinued operations above. The interest expense included in discontinued operations was $0.0 million and $0.2 million for the three and nine months ended September 30, 2017, respectively. Dispositions Beckjord Facility – On February 26, 2018, DP&L and its co-owners of the retired Beckjord Facility agreed to transfer their interests in the retired Facility to a third party, including their obligations to remediate the Facility and its site, and the transfer occurred on that same date. As a result, DP&L recognized a loss on the transfer of $12.4 million and made cash expenditures of $14.5 million, inclusive of cash expenditures for the transfer charges. The Beckjord Facility was retired in 2014, and, as such, the income / (loss) from continuing operations before income tax related to the Beckjord Facility was immaterial for the nine months ended September 30, 2018 and for the three and nine months ended September 30, 2017, excluding the loss on transfer noted above. |
Discontinued Operations |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Dispositions Beckjord Facility – On February 26, 2018, DP&L and its co-owners of the retired Beckjord Facility agreed to transfer their interests in the retired Facility to a third party, including their obligations to remediate the Facility and its site, and the transfer occurred on that same date. As a result, DPL recognized a loss on the transfer of $11.7 million and made cash expenditures of $14.5 million, inclusive of cash expenditures for the transfer charges. The Beckjord Facility was retired in 2014, and, as such, the income / (loss) from continuing operations before income tax related to the Beckjord Facility was immaterial for the nine months ended September 30, 2018 and for the three and nine months ended September 30, 2017, excluding the loss on transfer noted above. Prior to the transfer, the Beckjord Facility was included in the Utility segment. Discontinued Operations On December 8, 2017, DPL and AES Ohio Generation completed the sale transaction of their entire undivided interest in the Miami Fort Station and the Zimmer Station. On March 27, 2018, DPL and AES Ohio Generation completed the sale transaction of the Peaker assets to Kimura Power, LLC, and this transaction resulted in a loss on sale of $1.9 million for the nine months ended September 30, 2018. Further, on May 31, 2018, DPL and AES Ohio Generation retired the Stuart Station coal-fired and diesel-fired generating units and the Killen Station coal-fired generating unit and combustion turbine, as planned. Consequently, in the second quarter of 2018, DPL determined that the disposal of this group of components as a whole represents a strategic shift by us to exit generation, and, as such, qualifies to be presented as discontinued operations. Therefore, the results of operations and financial position for this group of components were reported as such in the Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets for all periods presented. The following table summarizes the major categories of assets and liabilities at the dates indicated:
The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:
Cash flows related to discontinued operations are included in our Condensed Consolidated Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $(7.2) million and $27.1 million for the three months ended September 30, 2018 and 2017, respectively, and $51.9 million and $38.5 million for the nine months ended September 30, 2018 and 2017, respectively. Cash flows from investing activities for discontinued operations were $0.0 million and $4.1 million for the three months ended September 30, 2018 and 2017, respectively, and $233.8 million and $(13.9) million for the nine months ended September 30, 2018 and 2017, respectively. The PUCO authorized DP&L to maintain long-term debt of $750.0 million or 75% of its rate base, whichever is greater, until January 1, 2018, or to file an application to explain why it would not achieve those metrics. Accordingly, $750.0 million of debt and the pro rata interest expense associated with that debt were allocated to continuing operations. All remaining interest expense was included in the discontinued operations above. The interest expense included in discontinued operations was $0.0 million and $0.2 million for the three and nine months ended September 30, 2017, respectively. |
Held for Sale (Notes) |
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Long Lived Assets Held-for-sale [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Dispositions Beckjord Facility – On February 26, 2018, DP&L and its co-owners of the retired Beckjord Facility agreed to transfer their interests in the retired Facility to a third party, including their obligations to remediate the Facility and its site, and the transfer occurred on that same date. As a result, DPL recognized a loss on the transfer of $11.7 million and made cash expenditures of $14.5 million, inclusive of cash expenditures for the transfer charges. The Beckjord Facility was retired in 2014, and, as such, the income / (loss) from continuing operations before income tax related to the Beckjord Facility was immaterial for the nine months ended September 30, 2018 and for the three and nine months ended September 30, 2017, excluding the loss on transfer noted above. Prior to the transfer, the Beckjord Facility was included in the Utility segment. Discontinued Operations On December 8, 2017, DPL and AES Ohio Generation completed the sale transaction of their entire undivided interest in the Miami Fort Station and the Zimmer Station. On March 27, 2018, DPL and AES Ohio Generation completed the sale transaction of the Peaker assets to Kimura Power, LLC, and this transaction resulted in a loss on sale of $1.9 million for the nine months ended September 30, 2018. Further, on May 31, 2018, DPL and AES Ohio Generation retired the Stuart Station coal-fired and diesel-fired generating units and the Killen Station coal-fired generating unit and combustion turbine, as planned. Consequently, in the second quarter of 2018, DPL determined that the disposal of this group of components as a whole represents a strategic shift by us to exit generation, and, as such, qualifies to be presented as discontinued operations. Therefore, the results of operations and financial position for this group of components were reported as such in the Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets for all periods presented. The following table summarizes the major categories of assets and liabilities at the dates indicated:
The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:
Cash flows related to discontinued operations are included in our Condensed Consolidated Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $(7.2) million and $27.1 million for the three months ended September 30, 2018 and 2017, respectively, and $51.9 million and $38.5 million for the nine months ended September 30, 2018 and 2017, respectively. Cash flows from investing activities for discontinued operations were $0.0 million and $4.1 million for the three months ended September 30, 2018 and 2017, respectively, and $233.8 million and $(13.9) million for the nine months ended September 30, 2018 and 2017, respectively. The PUCO authorized DP&L to maintain long-term debt of $750.0 million or 75% of its rate base, whichever is greater, until January 1, 2018, or to file an application to explain why it would not achieve those metrics. Accordingly, $750.0 million of debt and the pro rata interest expense associated with that debt were allocated to continuing operations. All remaining interest expense was included in the discontinued operations above. The interest expense included in discontinued operations was $0.0 million and $0.2 million for the three and nine months ended September 30, 2017, respectively. |
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Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Generation Separation On October 1, 2017, DP&L completed the transfer of its generating plants, the real property on which the generation plants and generation-related assets are sited, step-up transformers and other transmission plant assets used to interconnect with the electric transmission grid, fuel inventory, equipment inventory and spare parts, working capital, and other miscellaneous generation-related assets and liabilities to AES Ohio Generation. The transfer was completed as a contribution through an asset contribution agreement to a wholly-owned subsidiary of DP&L after which DP&L then distributed all of the outstanding equity in the subsidiary to DPL and then the subsidiary was merged into AES Ohio Generation. DP&L's generation business met the criteria to be classified as a discontinued operation, and, accordingly, the historical activity has been reclassified to "Discontinued operations" in the Statements of Operations for the three and nine months ended September 30, 2017. The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the period indicated:
Cash flows related to discontinued operations are included in the Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $8.8 million and $16.6 million for the three and nine months ended September 30, 2017, respectively. Cash flows from investing activities for discontinued operations were $7.1 million and $(3.5) million for the three and nine months ended September 30, 2017, respectively. The PUCO authorized DP&L to maintain long-term debt of $750.0 million or 75% of its rate base, whichever is greater, until January 1, 2018, or to file an application to explain why it would not achieve those metrics. Accordingly, $750.0 million of debt and the pro rata interest expense associated with that debt were allocated to continuing operations. All remaining interest expense was included in the discontinued operations above. The interest expense included in discontinued operations was $0.0 million and $0.2 million for the three and nine months ended September 30, 2017, respectively. Dispositions Beckjord Facility – On February 26, 2018, DP&L and its co-owners of the retired Beckjord Facility agreed to transfer their interests in the retired Facility to a third party, including their obligations to remediate the Facility and its site, and the transfer occurred on that same date. As a result, DP&L recognized a loss on the transfer of $12.4 million and made cash expenditures of $14.5 million, inclusive of cash expenditures for the transfer charges. The Beckjord Facility was retired in 2014, and, as such, the income / (loss) from continuing operations before income tax related to the Beckjord Facility was immaterial for the nine months ended September 30, 2018 and for the three and nine months ended September 30, 2017, excluding the loss on transfer noted above. |
Summary of Significant Accounting Policies (Policy) |
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Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Business | Description of Business DPL is a diversified regional energy company organized in 1985 under the laws of Ohio. DPL has one reportable segment: the Utility segment. See Note 12 – 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, 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. DP&L has the exclusive right to provide such transmission and distribution services to approximately 524,000 customers located in West Central Ohio. Additionally, DP&L provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000-square mile area of West Central Ohio. Through September 30, 2017, DP&L owned undivided interests in multiple coal-fired and peaking electric generating facilities as well as numerous transmission facilities. On October 1, 2017, the DP&L-owned generating facilities were transferred to AES Ohio Generation, an affiliate of DP&L and wholly-owned subsidiary of DPL, through an asset contribution agreement to a subsidiary that was merged into AES Ohio Generation. Principal industries located in DP&L’s service territory include automotive, food processing, paper, plastic, health care, data management, manufacturing and defense. DP&L's distribution sales reflect the general economic conditions, seasonal weather patterns, the proliferation of energy efficiency and distributed renewable resources and the market price of electricity. Through September 30, 2017, DP&L sold its generated energy and capacity into the wholesale market. After September 30, 2017, DP&L continues to sell its proportional share of energy and capacity from its investment in OVEC. DPL’s other significant subsidiaries include MVIC and AES Ohio Generation. MVIC is our captive insurance company that provides insurance services to DPL and our other subsidiaries. AES Ohio Generation owns an undivided interest in Conesville. AES Ohio Generation sells all of its energy and capacity into the wholesale market. 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. DP&L’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, DP&L applies the accounting standards for regulated operations to its electric transmission and distribution businesses and records regulatory assets when incurred costs are expected to be recovered in future customer rates, and regulatory liabilities when current cost recoveries in customer rates relate to expected future costs. DPL and its subsidiaries employed 674 people as of September 30, 2018, of which 648 were employed by DP&L. Approximately 53% of all DPL employees are under a collective bargaining agreement, which expires October 31, 2020. |
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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. As of September 30, 2018, DPL has an undivided ownership interest in one coal-fired generating facility, which is included in the financial statements at the lower of depreciated historical cost or fair value, if impaired. Operating revenues and expenses of this facility are included on a pro rata basis in the corresponding lines in the Condensed Consolidated Statements of Operations. 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. These financial statements have been prepared in accordance with GAAP for interim financial statements, the instructions of Form 10-Q and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been omitted from this interim report. 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, 2017. 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 September 30, 2018; our results of operations for the three and nine months ended September 30, 2018 and 2017 and our cash flows for the nine months ended September 30, 2018 and 2017. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three and nine months ended September 30, 2018 may not be indicative of our results that will be realized for the full year ending December 31, 2018. 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 derivative instruments; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; the valuation of AROs; and assets and liabilities related to employee benefits. |
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Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities | Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities DP&L collects certain excise taxes levied by state or local governments from its customers. 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 September 30, 2018 and 2017 were $13.8 million and $13.0 million, respectively. The amounts of such taxes collected for the nine months ended September 30, 2018 and 2017 were $39.2 million and $36.9 million, respectively. |
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Recently Issued Accounting Standards | New accounting pronouncements adopted in 2018 – The following table provides a brief description of recently adopted accounting pronouncements that had an impact on our consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on our consolidated financial statements.
Adoption of FASC Topic 606, "Revenue from Contracts with Customers" On January 1, 2018, we adopted ASU 2014-09, "Revenue from Contracts with Customers", and its subsequent corresponding updates ("FASC 606"). The core principle of this standard is that an entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We applied the modified retrospective method of adoption to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning January 1, 2018 are presented under FASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under the previous revenue recognition standard, FASC 605. For contracts that were modified before January 1, 2018, we have not retrospectively restated the contracts for modifications. We instead reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price. We do not expect the adoption of the new revenue standard to have a material impact to our net income on an ongoing basis. There was no cumulative effect to our January 1, 2018 Condensed Consolidated Balance Sheet resulting from the adoption of FASC 606. See additional disclosures under FASC 606 in Note 13 – Revenue. 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.
2016-02, 2018-01, 2018-10, 2018-11 Leases (Topic 842) ASU 2016-02 and its subsequent corresponding updates will require lessees to recognize assets and liabilities for most leases and recognize expenses in a manner similar to the current accounting method. For lessors, the guidance modifies the lease classification criteria and the accounting for sales-type and direct financing leases. The guidance also eliminates the current real estate-specific provisions. The standard must be adopted using a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements (January 1, 2017). The FASB proposed amending the standard to give another option for transition. The proposed transition method would allow entities to not apply the new lease standard in the comparative periods presented in their financial statements in the year of adoption. Under the proposed transition method, the entity would apply the transition provisions on January 1, 2019 (i.e., the effective date). At transition, lessees and lessors are permitted to make an election to apply a package of practical expedients that allow them not to reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) whether initial direct costs for any expired or existing leases qualify for capitalization under FASC 842. These three practical expedients must be elected as a package and must be consistently applied to all leases. Furthermore, entities are also permitted to make an election to use hindsight when determining lease term and lessees can elect to use hindsight when assessing the impairment of right-of-use assets. We have established a task force focused on the identification of contracts that would be under the scope of the new standard and on the assessment and measurement of the right-of-use asset and related liability. Additionally, the implementation team has been working on the configuration of a lease accounting system that will support the implementation and the subsequent accounting. The implementation team is in the process of evaluating changes to our business processes, systems and controls to support recognition and disclosure under the new standard. As we have preliminarily concluded that at transition we would be using the package of practical expedients, the main impact expected as of the effective date is the recognition of the right to use asset and the related liability in the financial statements for all those contracts that contain a lease and for which we are the lessee. However, income statement presentation and the expense recognition pattern are not expected to change. Under FASC 842, it is expected that fewer contracts will contain a lease. Under the new rules, all operating leases will be recorded as right-of-use assets with an off-setting lease liability. |
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THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Business | Description of Business DP&L 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. DP&L has the exclusive right to provide such transmission and distribution services to approximately 524,000 customers located in West Central Ohio. Additionally, DP&L provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000-square mile area of West Central Ohio. Through September 30, 2017, DP&L owned undivided interests in multiple coal-fired and peaking electric generating facilities as well as numerous transmission facilities. On October 1, 2017, the DP&L-owned generating facilities were transferred to AES Ohio Generation, an affiliate of DP&L and wholly-owned subsidiary of DPL, through an asset contribution agreement to a subsidiary that was merged into AES Ohio Generation. As a result of Generation Separation, DP&L now only has one reportable segment, the Utility segment. In addition to DP&L's electric transmission and distribution businesses, the Utility segment includes revenues and costs associated with DP&L's investment in OVEC and the historical results of DP&L’s Beckjord and Hutchings Coal generating facilities, which have either been closed or sold. Principal industries located in DP&L’s service territory include automotive, food processing, paper, plastic, health care, data management, manufacturing and defense. DP&L's distribution sales reflect the general economic conditions, seasonal weather patterns, the proliferation of energy efficiency and distributed renewable resources and the market price of electricity. Through September 30, 2017, DP&L sold its generated energy and capacity into the wholesale market. After September 30, 2017, DP&L continues to sell its proportional share of energy and capacity from its investment in OVEC. DP&L is a subsidiary of DPL. The terms “we,” “us,” “our” and “ours” are used to refer to DP&L. DP&L’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, DP&L applies the accounting standards for regulated operations to its electric transmission and distribution businesses and records regulatory assets when incurred costs are expected to be recovered in future customer rates, and regulatory liabilities when current cost recoveries in customer rates relate to expected future costs. DP&L employed 648 people as of September 30, 2018. Approximately 55% of DP&L employees are under a collective bargaining agreement, which expires October 31, 2020. |
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Financial Statement Presentation | Financial Statement Presentation DP&L does not have any subsidiaries. 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 for interim financial statements, the instructions of Form 10-Q and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with GAAP have been omitted from this interim report. 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, 2017. 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 September 30, 2018; our results of operations for the three and nine months ended September 30, 2018 and 2017 and our cash flows for the nine months ended September 30, 2018 and 2017. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three and nine months ended September 30, 2018 may not be indicative of our results that will be realized for the full year ending December 31, 2018. 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 derivative instruments; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; the valuation of AROs; and assets and liabilities related to employee benefits. |
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Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities | Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities DP&L collects certain excise taxes levied by state or local governments from its customers. 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 September 30, 2018 and 2017 were $13.8 million and $13.0 million, respectively. The amounts of such taxes collected for the nine months ended September 30, 2018 and 2017 were $39.2 million and $36.9 million, respectively. |
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Recently Issued Accounting Standards | New accounting pronouncements adopted in 2018 – The following table provides a brief description of recently adopted accounting pronouncements that had an impact on our financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on our financial statements.
Adoption of FASC Topic 606, "Revenue from Contracts with Customers" On January 1, 2018, we adopted ASU 2014-09, "Revenue from Contracts with Customers", and its subsequent corresponding updates ("FASC 606"). The core principle of this standard is that an entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We applied the modified retrospective method of adoption to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning January 1, 2018 are presented under FASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under the previous revenue recognition standard, FASC 605. For contracts that were modified before January 1, 2018, we have not retrospectively restated the contracts for modifications. We instead reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price. We do not expect the adoption of the new revenue standard to have a material impact to our net income on an ongoing basis. There was no cumulative effect to our January 1, 2018 Condensed Consolidated Balance Sheet resulting from the adoption of FASC 606. See additional disclosures under FASC 606 in Note 12 – Revenue. 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 financial statements.
2016-02, 2018-01, 2018-10, 2018-11 Leases (Topic 842) ASU 2016-02 and its subsequent corresponding updates will require lessees to recognize assets and liabilities for most leases and recognize expenses in a manner similar to the current accounting method. For lessors, the guidance modifies the lease classification criteria and the accounting for sales-type and direct financing leases. The guidance also eliminates the current real estate-specific provisions. The standard must be adopted using a modified retrospective approach at the beginning of the earliest comparative period presented in the financial statements (January 1, 2017). The FASB proposed amending the standard to give another option for transition. The proposed transition method would allow entities to not apply the new lease standard in the comparative periods presented in their financial statements in the year of adoption. Under the proposed transition method, the entity would apply the transition provisions on January 1, 2019 (i.e., the effective date). At transition, lessees and lessors are permitted to make an election to apply a package of practical expedients that allow them not to reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) whether initial direct costs for any expired or existing leases qualify for capitalization under FASC 842. These three practical expedients must be elected as a package and must be consistently applied to all leases. Furthermore, entities are also permitted to make an election to use hindsight when determining lease term and lessees can elect to use hindsight when assessing the impairment of right-of-use assets. We have established a task force focused on the identification of contracts that would be under the scope of the new standard and on the assessment and measurement of the right-of-use asset and related liability. Additionally, the implementation team has been working on the configuration of a lease accounting system that will support the implementation and the subsequent accounting. The implementation team is in the process of evaluating changes to our business processes, systems and controls to support recognition and disclosure under the new standard. As we have preliminarily concluded that at transition we would be using the package of practical expedients, the main impact expected as of the effective date is the recognition of the right to use asset and the related liability in the financial statements for all those contracts that contain a lease and for which we are the lessee. However, income statement presentation and the expense recognition pattern are not expected to change. Under FASC 842, it is expected that fewer contracts will contain a lease. Under the new rules, all operating leases will be recorded as right-of-use assets with an off-setting lease liability. |
Generation Separation (Policies) |
9 Months Ended |
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Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontinued Operations, Policy [Policy Text Block] | The PUCO authorized DP&L to maintain long-term debt of $750.0 million or 75% of its rate base, whichever is greater, until January 1, 2018, or to file an application to explain why it would not achieve those metrics. Accordingly, $750.0 million of debt and the pro rata interest expense associated with that debt were allocated to continuing operations. All remaining interest expense was included in the discontinued operations above. The interest expense included in discontinued operations was $0.0 million and $0.2 million for the three and nine months ended September 30, 2017, respectively. |
Subsidiaries [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontinued Operations, Policy [Policy Text Block] | The PUCO authorized DP&L to maintain long-term debt of $750.0 million or 75% of its rate base, whichever is greater, until January 1, 2018, or to file an application to explain why it would not achieve those metrics. Accordingly, $750.0 million of debt and the pro rata interest expense associated with that debt were allocated to continuing operations. All remaining interest expense was included in the discontinued operations above. The interest expense included in discontinued operations was $0.0 million and $0.2 million for the three and nine months ended September 30, 2017, respectively. |
Discontinued Operations Discontinued Operations (Policies) |
9 Months Ended |
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Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontinued Operations, Policy [Policy Text Block] | The PUCO authorized DP&L to maintain long-term debt of $750.0 million or 75% of its rate base, whichever is greater, until January 1, 2018, or to file an application to explain why it would not achieve those metrics. Accordingly, $750.0 million of debt and the pro rata interest expense associated with that debt were allocated to continuing operations. All remaining interest expense was included in the discontinued operations above. The interest expense included in discontinued operations was $0.0 million and $0.2 million for the three and nine months ended September 30, 2017, respectively. |
Summary of Significant Accounting Policies (Tables) |
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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 Sheet that reconcile to the total of such amounts as shown on the Condensed Consolidated Statements of Cash Flows:
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Schedule of New Accounting Pronouncements | – The following table provides a brief description of recently adopted accounting pronouncements that had an impact on our consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or did not have a material impact on our consolidated financial statements.
Adoption of FASC Topic 606, "Revenue from Contracts with Customers" On January 1, 2018, we adopted ASU 2014-09, "Revenue from Contracts with Customers", and its subsequent corresponding updates ("FASC 606"). The core principle of this standard is that an entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We applied the modified retrospective method of adoption to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning January 1, 2018 are presented under FASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under the previous revenue recognition standard, FASC 605. For contracts that were modified before January 1, 2018, we have not retrospectively restated the contracts for modifications. We instead reflected the aggregate effect of all modifications when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price. We do not expect the adoption of the new revenue standard to have a material impact to our net income on an ongoing basis. There was no cumulative effect to our January 1, 2018 Condensed Consolidated Balance Sheet resulting from the adoption of FASC 606. See additional disclosures under FASC 606 in Note 13 – Revenue. 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.
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THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 Sheet that reconcile to the total of such amounts as shown on the Condensed Statements of Cash Flows:
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Supplemental Financial Information (Tables) |
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Schedule of Supplemental Financial Information | September 30, 2018 and December 31, 2017:
(a) - See Note 3 – Regulatory Matters for more information on this item. |
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Reclassification out of Accumulated Other Comprehensive Income | The amounts reclassified out of Accumulated Other Comprehensive Income / (Loss) by component during the three and nine months ended September 30, 2018 and 2017 are as follows:
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Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income / (Loss) during the nine months ended September 30, 2018 are as follows:
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Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | Operating expenses - other Operating expenses - other generally includes gains or losses on asset sales or dispositions, insurance recoveries, gains or losses on the sale of businesses and other expense or income from miscellaneous transactions. The components are summarized as follows:
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THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Information [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Financial Information | Accounts receivable and Inventories are as follows at September 30, 2018 and December 31, 2017:
(a) - See Note 3 – Regulatory Matters for more information on this item. |
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Reclassification out of Accumulated Other Comprehensive Income | The amounts reclassified out of Accumulated Other Comprehensive Income / (Loss) by component during the three and nine months ended September 30, 2018 and 2017 are as follows:
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Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in the components of Accumulated Other Comprehensive Income / (Loss) during the nine months ended September 30, 2018 are as follows:
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Property, Plant and Equipment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Change in Asset Retirement Obligation [Table Text Block] | Changes in the Liability for AROs
See Note 5 – Fair Value for further discussion on changes to our AROs. |
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Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Change in Asset Retirement Obligation [Table Text Block] | Changes in the Liability for AROs
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Fair Value (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 at September 30, 2018 and December 31, 2017. Information about the fair value of our derivative instruments can be found in Note 6 – Derivative Instruments and Hedging Activities.
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Fair Value of Assets and Liabilities Measured on Recurring Basis | The fair value of assets and liabilities at September 30, 2018 and December 31, 2017 and the respective category within the fair value hierarchy for DPL is as follows:
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THE DAYTON POWER AND LIGHT COMPANY [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 at September 30, 2018 and December 31, 2017. Information about the fair value of our derivative instruments can be found in Note 6 – Derivative Instruments and Hedging Activities.
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Fair Value of Assets and Liabilities Measured on Recurring Basis | The fair value of assets and liabilities at September 30, 2018 and December 31, 2017 and the respective category within the fair value hierarchy for DP&L is as follows:
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Derivative Instruments and Hedging Activities (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 or losses recognized in AOCI for the cash flow hedges for the three and nine months ended September 30, 2018 and 2017:
Net gains or losses associated with the ineffective portion of the hedging transactions were immaterial in the periods presented. |
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Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | DPL has elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivative agreements. The fair value derivative position of DPL's interest rate swaps are as follows:
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THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 or losses recognized in AOCI for the cash flow hedges for the three and nine months ended September 30, 2018 and 2017:
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Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | DP&L has elected not to offset derivative assets and liabilities and not to offset net derivative positions against the right to reclaim cash collateral pledged (an asset) or the obligation to return cash collateral received (a liability) under derivative agreements. The fair value derivative position of DP&L's interest rate swaps are as follows:
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | The following table summarizes DPL's outstanding long-term debt.
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THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | The following table summarizes DP&L's outstanding long-term debt.
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Income Taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rates | The following table details the effective tax rates for the three and nine months ended September 30, 2018 and 2017.
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THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rates | The following table details the effective tax rates for the three and nine months ended September 30, 2018 and 2017.
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Benefit Plans (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Benefit Cost / (Income) | The net periodic benefit cost of the pension benefit plans for the three and nine months ended September 30, 2018 and 2017 was:
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Estimated Future Benefit Payments and Medicare Part D Reimbursements | Benefit payments, which reflect future service, are estimated to be paid as follows:
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THE DAYTON POWER AND LIGHT COMPANY [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 and nine months ended September 30, 2018 and 2017 was:
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Estimated Future Benefit Payments and Medicare Part D Reimbursements | Benefit payments, which reflect future service, are estimated to be paid as follows:
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Business Segments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Reporting for Reportable Business Segments | The following tables present financial information for DPL’s Utility reportable business segment:
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Revenue (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] | DPL's revenue from contracts with customers was $195.1 million and $560.1 million for the three and nine months ended September 30, 2018, respectively. The following table presents our revenue from contracts with customers and other revenue by segment for the three and nine months ended September 30, 2018:
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Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue [Table Text Block] | DP&L's revenue from contracts with customers was $186.1 million and $532.1 million for the three and nine months ended September 30, 2018, respectively. The following table presents our revenue from contracts with customers and other revenue for the three and nine months ended September 30, 2018:
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Generation Separation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 major categories of assets and liabilities at the dates indicated:
The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:
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Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, cost of revenues, operating and other expenses and income tax of discontinued operations for the period indicated:
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Discontinued Operations (Tables) |
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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 major categories of assets and liabilities at the dates indicated:
The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:
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Held for Sale (Tables) |
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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 major categories of assets and liabilities at the dates indicated:
The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:
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Subsidiaries [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, cost of revenues, operating and other expenses and income tax of discontinued operations for the period indicated:
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Fair Value (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jan. 01, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
AOCI reclassed to Retained Earnings before tax | $ 1.6 | |||||
AOCI reclassed to Retained Earnings, net of tax | 1.0 | $ 0.0 | $ 0.0 | $ (1.0) | $ 0.0 | |
Long-term debt, earliest maturities | 2019 | |||||
Long-term debt, latest maturities | 2061 | |||||
Unrealized Gains and Immaterial Unrealized Losses in AOCI, Before Tax | $ 1.6 | |||||
Unrealized gains and immaterial unrealized losses in AOCI, after tax | 1.0 | |||||
THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||||
AOCI reclassed to Retained Earnings before tax | 1.7 | |||||
AOCI reclassed to Retained Earnings, net of tax | $ 1.1 | $ 0.0 | $ 0.0 | $ (1.1) | $ 0.0 | |
Long-term debt, earliest maturities | 2020 | |||||
Long-term debt, latest maturities | 2061 | |||||
Unrealized Gains and Immaterial Unrealized Losses in AOCI, Before Tax | 1.7 | |||||
Unrealized gains and immaterial unrealized losses in AOCI, after tax | $ 1.1 |
Derivative Instruments and Hedging Activities (Outstanding Derivative Instruments) (Details) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Mar. 29, 2018 |
Dec. 31, 2017 |
|
Sale of Derivative Instruments Interest Rate Swap | $ (60.0) | ||
Gain on sale of Derivative Instruments Interest Rate Swap | $ 0.8 | ||
THE DAYTON POWER AND LIGHT COMPANY [Member] | |||
Sale of Derivative Instruments Interest Rate Swap | $ (60.0) | ||
Gain on sale of Derivative Instruments Interest Rate Swap | 0.8 | ||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative, Notional Amount, Purchase (Sales), Net | 140.0 | $ 200.0 | |
Designated as Hedging Instrument [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Interest Rate Swap [Member] | |||
Derivative, Notional Amount, Purchase (Sales), Net | $ 140.0 | $ 200.0 |
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Entity Information [Line Items] | ||||
Effective income tax rates | 15.70% | 63.00% | 10.90% | 39.10% |
Estimated annual effective income tax rate | 16.80% | 36.00% | ||
Federal Income Tax Rate for Corporations | 21.00% | 35.00% | ||
Non-cash capital contribution | $ 30.2 | $ 0.0 | ||
THE DAYTON POWER AND LIGHT COMPANY [Member] | ||||
Entity Information [Line Items] | ||||
Effective income tax rates | 16.80% | (4.50%) | 16.20% | 18.10% |
Estimated annual effective income tax rate | 17.10% | 19.00% | ||
Federal Income Tax Rate for Corporations | 21.00% | 35.00% |
Benefit Plans (Estimated Future Benefit Payments and Medicare Part D Reimbursements) (Details) - Pension [Member] $ in Millions |
Sep. 30, 2018
USD ($)
|
---|---|
2016 | $ 7.1 |
2017 | 28.2 |
2018 | 27.9 |
2019 | 27.6 |
2020 | 27.3 |
2021 - 2025 | 131.3 |
THE DAYTON POWER AND LIGHT COMPANY [Member] | |
2016 | 7.1 |
2017 | 28.2 |
2018 | 27.9 |
2019 | 27.6 |
2020 | 27.3 |
2021 - 2025 | $ 131.3 |
Shareholder's Equity (Details) - USD ($) $ / shares in Units, $ in Millions |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Class of Stock [Line Items] | |||
Non-cash capital contribution | $ 30.2 | $ 0.0 | |
Common stock, shares authorized | 1,500 | 1,500 | |
Common stock, shares outstanding | 1 | 1 | |
THE DAYTON POWER AND LIGHT COMPANY [Member] | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | 250,000,000 | 250,000,000 | |
Par value common shares (in USD per share) | $ 0.01 | $ 0.01 | |
Common stock, shares outstanding | 41,172,173 | 41,172,173 | |
PUCO merger equity ratio approval (at least) | 50.00% | ||
PUCO Equity Ratio | 42.00% | ||
PUCO merger, maximum long-term debt allowed | $ 750.0 | ||
PUCO merger, maximum long-term debt as percent of rate base (percent) | 75.00% | ||
Long-term Debt, Gross | $ 594.9 | ||
Proceeds from Contributions from Parent | 80.0 | 70.0 | |
Payments of Ordinary Dividends, Common Stock | $ 43.8 | $ 19.0 |
Business Segments (Narrative) (Details) - THE DAYTON POWER AND LIGHT COMPANY [Member] |
9 Months Ended |
---|---|
Sep. 30, 2018
mi²
customer
segment
| |
Segment Reporting Information [Line Items] | |
Number of Operating Segments | segment | 1 |
Approximate number of retail customers | customer | 524,000 |
Service area, square miles | mi² | 6,000 |
Fixed-asset Impairment Fixed-asset Impairment (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Impairment of Long-Lived Assets Held-for-use | $ 2.8 | $ 66.4 |
THE DAYTON POWER AND LIGHT COMPANY [Member] | ||
Impairment of Long-Lived Assets Held-for-use | $ 0.0 | $ 66.3 |
Held for Sale (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 19.8 | $ (2.7) | $ 13.7 | $ (12.8) | |
Asset Retirement Obligation, Held for Sale | 117.2 | 117.2 | $ 116.6 | ||
Subsidiaries [Member] | |||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 37.5 | $ 20.0 | $ 73.9 | $ 60.1 |