10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

OR

( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

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

Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

DPL Inc.	Yes o	No x
The Dayton Power and Light Company	Yes o	No x

Each of DPL Inc. and The Dayton Power and Light Company is a voluntary filer that has filed all applicable reports under Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months.

Indicate by check mark whether each registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

DPL Inc.	Yes x	No o
The Dayton Power and Light Company	Yes x	No o

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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

	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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

DPL Inc.	o
The Dayton Power and Light Company	o

Indicate by check mark whether each registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

DPL Inc.	Yes o	No x
The Dayton Power and Light Company	Yes o	No x

All of the outstanding common stock of DPL Inc. is indirectly owned by The AES Corporation. All of the outstanding common stock of The Dayton Power and Light Company is owned by DPL Inc.

As of November 5, 2018, each registrant had the following shares of common stock outstanding:

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

This combined Form 10-Q is separately filed by DPL Inc. and The Dayton Power and Light Company. Information contained herein relating to any individual registrant is filed by such registrant on its own behalf. Each registrant makes no representation as to information relating to a registrant other than itself.

2

DPL Inc. and The Dayton Power and Light Company

Quarter Ended September 30, 2018

	Table of Contents	Page No.
Glossary of Terms		4
Forward-Looking Statements		5
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	8
	Condensed Consolidated Statements of Comprehensive Income / (Loss)	9
	Condensed Consolidated Balance Sheets	10
	Condensed Consolidated Statements of Cash Flows	11
	Notes to Condensed Consolidated Financial Statements	12
	Note 1 – Overview and Summary of Significant Accounting Policies	12
	Note 2 – Supplemental Financial Information	16
	Note 3 – Regulatory Matters	17
	Note 4 – Property, Plant and Equipment	19
	Note 5 – Fair Value	20
	Note 6 – Derivative Instruments and Hedging Activities	21
	Note 7 – Long-term Debt	24
	Note 8 – Income Taxes	26
	Note 9 – Benefit Plans	26
	Note 10 – Shareholder's Equity	27
	Note 11 – Contractual Obligations, Commercial Commitments and Contingencies	27
	Note 12 – Business Segments	28
	Note 13 – Revenue	31
	Note 14 – Dispositions	32
	Note 15 – Discontinued Operations	33
	The Dayton Power and Light Company
	Condensed Statements of Operations	36
	Condensed Statements of Comprehensive Income	37
	Condensed Balance Sheets	38
	Condensed Statements of Cash Flows	39
	Notes to Condensed Financial Statements	40
	Note 1 – Overview and Summary of Significant Accounting Policies	40
	Note 2 – Supplemental Financial Information	43
	Note 3 – Regulatory Matters	44
	Note 4 – Property, Plant and Equipment	46
	Note 5 – Fair Value	46
	Note 6 – Derivative Instruments and Hedging Activities	48
	Note 7 – Long-term Debt	50
	Note 8 – Income Taxes	51
	Note 9 – Benefit Plans	51
	Note 10 – Shareholder’s Equity	52
	Note 11 – Contractual Obligations, Commercial Commitments and Contingencies	53
	Note 12 – Revenue	54
	Note 13 – Generation Separation	55
	Note 14 – Dispositions	56
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	57
Item 3	Quantitative and Qualitative Disclosures about Market Risk	75
Item 4	Controls and Procedures	75
Part II Other Information
Item 1	Legal Proceedings	75
Item 1A	Risk Factors	75
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	76
Item 3	Defaults Upon Senior Securities	76
Item 4	Mine Safety Disclosures	76
Item 5	Other Information	76
Item 6	Exhibits	77
	Signatures	78

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GLOSSARY OF TERMS 

The following terms are used in this Form 10-Q:

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

4

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

FORWARD-LOOKING STATEMENTS

Certain statements contained in this report are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Matters discussed in this report that relate to events or developments that are expected to occur in the future, including management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters constitute forward-looking statements. Forward-looking statements are based on management’s beliefs, assumptions and expectations of future economic performance, considering the information currently available to management. These statements are not statements of historical fact and are typically identified by terms and phrases such as “anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “should,” “could,” “may,” “plan,” “project,” “predict,” “will” and similar expressions. Such forward-looking statements are subject to risks and uncertainties and investors are cautioned that outcomes and results may vary materially from those projected due to various factors beyond our control, including but not limited to:

• 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;

5

▪ 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.

Forward-looking statements speak only as of the date of the document in which they are made. We disclaim any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.

All such factors are difficult to predict, contain uncertainties that may materially affect actual results, and many are beyond our control. See Item 1A - Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section in such report and in our Quarterly Reports on Form 10-Q for the quarters ended June 30, and March 31, 2018 and this Quarterly Report on Form 10-Q for a more detailed discussion of the foregoing and certain other factors that could cause actual results to differ materially from those reflected in such forward-looking statements and that should be considered in evaluating our outlook.

You may read and copy any document we file at the SEC’s public reference room located at 100 F Street N.E., Washington, D.C. 20549, USA. Please call the SEC at (800) SEC-0330 for further information on the public reference room. Our SEC filings are also available to the public from the SEC’s website at www.sec.gov.

COMPANY WEBSITES

DPL’s public internet site is www.dplinc.com. DP&L’s public internet site is www.dpandl.com. The information on these websites is not incorporated by reference into this report.

Part I – Financial Information

This report includes the combined filing of DPL and DP&L. Throughout this report, the terms “we,” “us,” “our” and “ours” are used to refer to both DPL and DP&L, respectively and altogether, unless the context indicates otherwise. Discussions or areas of this report that apply only to DPL or DP&L will be clearly noted in the applicable section.

Item 1 – Financial Statements

6

FINANCIAL STATEMENTS

DPL INC.

7

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	)

See Notes to Condensed Consolidated Financial Statements.

8

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	)

See Notes to Condensed Consolidated Financial Statements.

9

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

See Notes to Condensed Consolidated Financial Statements.

10

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		$	—

See Notes to Condensed Consolidated Financial Statements.

11

DPL Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 1 – 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 a6,000-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 DPLemployees 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.

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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:

$ 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

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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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.

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.

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.

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New Accounting Pronouncements Issued But Not Yet Effective – The following table provides a brief description of recent accounting pronouncements that could have a material impact on our consolidated financial statements. Accounting pronouncements not listed below were assessed and determined to be either not applicable or are expected to have no material impact on our consolidated financial statements.

ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
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.

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

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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.

Note 2 – Supplemental Financial Information

Accounts receivable and Inventories are as follows at September 30, 2018 and December 31, 2017:

	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

(a) - See Note 3 – Regulatory Matters for more information on this item.

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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:

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	)

The changes in the components of Accumulated Other Comprehensive Income / (Loss) during the nine months endedSeptember 30, 2018 are as follows:

$ 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

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:

	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	)

Note 3 – 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

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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.

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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.

Note 4 – 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

$ 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

See Note 5 – Fair Value for further discussion on changes to our AROs.

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Note 5 – 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.

	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

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.

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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:

$ 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

Our financial instruments are valued using the market approach in the following categories:

• Level 1 inputs are used for money market accounts that are considered cash equivalents. The fair value is determined by reference to quoted market prices and other relevant information generated by market transactions.

• Level 2 inputs are used to value derivatives such as interest rate hedge contracts which are valued using a benchmark interest rate. Other Level 2 assets include open-ended mutual funds in the Master Trust, which are valued using the end of day NAV per unit.

• Level 3 inputs such as certain debt balances are considered a Level 3 input because the notes are not publicly traded. Our long-term debt is fair valued for disclosure purposes only.

All of the inputs to the fair value of our derivative instruments are from quoted market prices.

Our long-term debt is fair valued for disclosure purposes only and most of the fair values are determined using quoted market prices in inactive markets. These fair value inputs are considered Level 2 in the fair value hierarchy. As the Wright-Patterson Air Force Base note is not publicly traded, fair value is assumed to equal carrying value. These fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs.

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).

Note 6 – 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

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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:

	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

Net gains or losses associated with the ineffective portion of the hedging transactions were immaterial in the periods presented.

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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:

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.

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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Note 7 – Long-term Debt

The following table summarizes DPL's outstanding long-term debt.

	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 endedSeptember 30, 2018.

(b) Range of interest rates for the year ended December 31, 2017.

(c) Note payable to related party.

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 DPL6.75% 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.

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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 than0.65 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 TotalConsolidated 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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Note 8 – Income Taxes

The following table details the effective tax rates for the three and nine months ended September 30, 2018 and 2017.

	Three months ended		Nine months ended
	September 30,		September 30,
	2018	2017	2018	2017
DPL	15.7%	63.0%	10.9%	39.1%

Income tax expense for the nine months endedSeptember 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 endedSeptember 30, 2018, DPL converted $30.2 million of accrued tax sharing liabilities with AES to additional equity investment in DPL.

Note 9 – 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:

	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.

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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:

$ 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

Note 10 – 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.

Note 11 – 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.

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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:

• 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 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.

Note 12 – 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

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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.

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The following tables present financial information for DPL’s Utility reportable business segment:

$ 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.

30

Note 13 – 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.

31

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:

$ 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.

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.

Note 14 – 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,

32

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.

Note 15 – 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:

$ 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.

33

The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:

	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	)

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.

34

FINANCIAL STATEMENTS

The Dayton Power and Light Company

35

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

See Notes to Condensed Financial Statements.

36

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

See Notes to Condensed Financial Statements.

37

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

See Notes to Condensed Financial Statements.

38

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

See Notes to Condensed Financial Statements.

39

The Dayton Power and Light Company

Notes to Condensed Financial Statements (Unaudited)

Note 1 – Overview and Summary of Significant Accounting Policies

Description of Business

DP&Lis 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 a6,000-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&Lemployees 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

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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:

$ 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

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.

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.

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

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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.

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.

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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.

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.

Note 2 – Supplemental Financial Information

Accounts receivable and Inventories are as follows at September 30, 2018 and December 31, 2017:

	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

(a) - See Note 3 – Regulatory Matters for more information on this item.

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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:

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	)

The changes in the components of Accumulated Other Comprehensive Income / (Loss) during the nine months ended September 30, 2018 are as follows:

$ 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	)

Note 3 – 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

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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

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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.

Note 4 – 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

$ 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

See Note 5 – Fair Value for further discussion on changes to our AROs.

Note 5 – 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.

	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

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

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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:

$ 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

Our financial instruments are valued using the market approach in the following categories:

• Level 1 inputs are used for money market accounts that are considered cash equivalents. The fair value is determined by reference to quoted market prices and other relevant information generated by market transactions.

• Level 2 inputs are used to value derivatives such as interest rate hedge contracts which are valued using a benchmark interest rate. Other Level 2 assets include open-ended mutual funds in the Master Trust, which are valued using the end of day NAV per unit.

• Level 3 inputs such as certain debt balances are considered a Level 3 input because the notes are not publicly traded. Our long-term debt is fair valued for disclosure purposes only.

All of the inputs to the fair value of our derivative instruments are from quoted market prices.

Our long-term debt is fair valued for disclosure purposes only and most of the fair values are determined using quoted market prices in inactive markets. These fair value inputs are considered Level 2 in the fair value hierarchy. As the Wright-Patterson Air Force Base note is not publicly traded, fair value is assumed to equal carrying value. These fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs.

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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.

Note 6 – 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.

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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:

	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

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:

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.

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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.

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.

Note 7 – Long-term Debt

The following table summarizes DP&L's outstanding long-term debt.

	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.

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.

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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 than0.65 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 TotalConsolidated 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.

Note 8 – Income Taxes

The following table details the effective tax rates for the three and nine months ended September 30, 2018 and 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%

Income tax expense for the nine months endedSeptember 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).

Note 9 – Benefit Plans

DP&L sponsors a defined benefit pension plan for the majority of its employees.

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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:

	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 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:

$ 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

Note 10 – 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.

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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.

Note 11 – 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:

• 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.

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

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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.

Note 12 – 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

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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:

	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.

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.

Note 13 – 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.

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The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the period indicated:

	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	)

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.

Note 14 – 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.

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Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations

This report includes the combined filing of DPL and DP&L. On November 28, 2011, DPL became an indirectly wholly-owned subsidiary of AES, a global power company. Throughout this report, the terms “we,” “us,” “our” and “ours” are used to refer to both DPL and DP&L, respectively and together, unless the context indicates otherwise. Discussions or areas of this report that apply only to DPL or DP&L will clearly be noted in the section.

FORWARD-LOOKING INFORMATION

The following discussion contains forward-looking statements and should be read in conjunction with the accompanying Condensed Consolidated Financial Statements and related footnotes of DPL and the Condensed Financial Statements and related footnotes of DP&L included in Part I – Financial Information, the risk factors in Item 1A to Part I of our Form 10-K for the fiscal year ended December 31, 2017 and in Item 1A to Part II of this Quarterly Report on Form 10-Q, and our “Forward-Looking Statements” section of this Form 10-Q. For a list of certain abbreviations or acronyms in this discussion, see the Glossary at the beginning of this Form 10-Q.

OVERVIEW OF OUR BUSINESS

DPL is an indirectly wholly-owned subsidiary of AES.

DPL has three significant subsidiaries, DP&L, AES Ohio Generation and MVIC. DP&L is a public utility providing electric transmission and distribution services in West Central Ohio. AES Ohio Generation owns an undivided interest in a coal-fired generating facility and sells all of its energy and capacity into the wholesale market. AES Ohio Generation also owns two retired coal-fired facilities. MVIC is our captive insurance company that provides insurance services to DPL and our other subsidiaries. For additional information, see Item 1 – Business of our 2017 Form 10-K. All of DPL's subsidiaries are wholly-owned.

As an electric public utility in Ohio, DP&L provides regulated transmission and distribution services to its customers as well as retail SSO electric service. DP&L's sales reflect the general economic conditions, seasonal weather patterns and the growth of energy efficiency initiatives.

EXECUTIVE SUMMARY

DPL

DPL'sincome / (loss) from continuing operations before income tax for the three months ended September 30, 2018 improved by $22.5 million, from a pre-tax loss of $2.7 million for the three months ended September 30, 2017 to pre-tax income of $19.8 million for the three months ended September 30, 2018, and its income / (loss) from continuing operations before income tax for the nine months ended September 30, 2018 improved by $26.5 million, from a pre-tax loss of $12.8 million for the nine months ended September 30, 2017 to pre-tax income of $13.7 million for the nine months ended September 30, 2018, primarily due to factors including, but not limited to:

	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

57

DP&L

DP&L'sincome from continuing operations before income tax for the three months ended September 30, 2018 improved by $17.5 million, from pre-tax income of $20.0 million for the three months ended September 30, 2017 to pre-tax income of $37.5 million for the three months ended September 30, 2018, and its income from continuing operations before income tax for the nine months ended September 30, 2018 improved by $13.8 million, from pre-tax income of $60.1 million for the nine months ended September 30, 2017 to pre-tax income of $73.9 million for the nine months ended September 30, 2018, primarily due to factors including, but not limited to:

	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

58

RESULTS OF OPERATIONS HIGHLIGHTS – DPL

DPL’s results of operations include the results of its subsidiaries, including its principal subsidiary DP&L. All material intercompany accounts and transactions have been eliminated in consolidation. A separate specific discussion of the results of operations for DP&L is presented elsewhere in this report.

	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.

DPL – Revenues

Retail customers, especially residential and commercial customers, consume more electricity during warmer and colder weather than they do during mild temperatures. Therefore,our retail sales volume is impacted by the number of heating and cooling degree-days occurring during a year. Cooling degree-days typically have a more significant impact than heating degree-days since some residential customers do not use electricity to heat their homes.

	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.

59

DPL's electric sales and billed customers were as follows:

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.

We sell generation into the wholesale market which covers a multi-state area and settles on an hourly basis throughout the year. Factors impacting our wholesale sales volume each hour of the year include: wholesale market prices; retail demand throughout the entire wholesale market area; availability of our generating plant and non-affiliated generating plants to sell into the wholesale market; contracted wholesale sales and our variable generation costs. Our goal is to make wholesale sales when it is profitable to do so.

During the three months ended September 30, 2018, revenue increased $16.0 million to $207.7 million compared to $191.7 million in the same period of the prior year, and, during the nine months ended September 30, 2018, revenue increased $29.8 million to $591.5 million compared to $561.7 million in the same period of the prior year. These changes were primarily the result of changes in the components of revenue shown below:

	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

60

DPL – Cost of Revenues

During the three months ended September 30, 2018, cost of revenues increased $10.2 million to $88.2 million compared to $78.0 million in the same period of the prior year, and, during the nine months ended September 30, 2018, cost of revenues increased $21.2 million to $251.6 million compared to $230.4 million in the same period of the prior year. These changes were primarily the result of changes in the components of cost of revenues shown below:

	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

DPL – Operation and Maintenance

During the three and nine months ended September 30, 2018, Operation and Maintenance expense decreased $10.4 million and $25.8 million, respectively, compared to the same periods in the prior year. The main drivers of these changes are as follows:

	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.

DPL – Depreciation and Amortization

During the three months ended September 30, 2018, Depreciation and amortization decreased $0.1 million, compared to the same period in the prior year.

During the nine months ended September 30, 2018, Depreciation and amortization increased $1.9 million compared to the same period in the prior year. The increase was primarily due to additional investments in transmission and distribution fixed assets and depreciation expense recorded at Conesville in 2018.

61

DPL – General Taxes

During the three months ended September 30, 2018, General taxes decreased $0.3 million compared to the same period in the prior year.

During the nine months ended September 30, 2018, General taxes decreased $4.0 million compared to the same period in the prior year. The decrease was primarily the result of a favorable adjustment for 2017 Ohio property taxes to reflect actual payments made in 2018.

DPL – Operating Expenses - Other

During the three months ended September 30, 2018, DPL recorded other operating expenses of $1.6 million primarily related to a fixed-asset impairment at Conesville.

During the nine months ended September 30, 2018, DPL recorded other operating expenses of $14.6 million primarily due to the loss on the transfer of business interests in the Beckjord facility of $11.7 million and the fixed-asset impairments at Conesville of $2.8 million.

DPL – Interest Expense

During the three months ended September 30, 2018, Interest expense decreased $5.2 million compared to the same period in the prior year. The decrease was primarily the result of debt repayments at DPL and DP&L in 2017 and 2018.

During the nine months ended September 30, 2018, Interest expense decreased $8.3 million compared to the same period in the prior year. The decrease was primarily the result of debt repayments at DPL and DP&L in 2017 and 2018.

DPL – Charge for Early Redemption of Debt

During the nine months ended September 30, 2018, DPL recorded a charge for early redemption of debt of $6.4 million primarily due to the make-whole premium payment of $5.1 million related to the $101.0 million partial redemption, in April 2018, of the DPL 6.75% Senior Notes due 2019.

During the three and nine months ended September 30, 2017, DPL recorded a charge for early redemption of debt of $3.0 million and $3.3 million, respectively, primarily due to the early redemption of the 4.8% Tax-exempt First Mortgage Bonds due 2036.

DPL – Income Tax Expense / (Benefit)

Income tax benefit of $1.7 million during the three months ended September 30, 2017 changed to Income tax expense of $3.1 million during the three months ended September 30, 2018. The net change of $4.8 million was primarily due to the change from a pre-tax loss to pre-tax income, partially offset by the change in the federal income tax rate from 35% to 21% due to the TCJA.

Income tax benefit of $5.0 million during the nine months ended September 30, 2017 changed to Income tax expense of $1.5 million during the nine months ended September 30, 2018. The net change of $6.5 million was primarily due to the change from a pre-tax loss to pre-tax income, partially offset by the change in the federal income tax rate from 35% to 21% due to the TCJA.

DPL - Discontinued Operations

Net income / (loss) from discontinued operations was $4.3 million and $29.2 million for the three and nine months ended September 30, 2018, respectively, compared to $22.9 million and $(21.5) million for the three and nine months ended September 30, 2017, respectively. This income / (loss) relates to the generation components of Stuart, Killen, Miami Fort, Zimmer, and the Peaker assets, which were disposed of either by sale or retirement within the last year. See Note 15 – Discontinued Operations in the Notes to DPL's Condensed Consolidated Financial Statements.

62

RESULTS OF OPERATIONS BY SEGMENT - DPL

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. Conesville is now included within the "Other" column as it no longer meets the requirement for disclosure as a reportable segment with the results of operations of the other Generation plants being reclassified to 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.

See Note 12 – Business Segments of Notes to DPL's Condensed Consolidated Financial Statements for additional information regarding DPL’s reportable segment.

The following table presents DPL’s Income / (loss) from continuing operations before income tax by business segment:

	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.

RESULTS OF OPERATIONS HIGHLIGHTS – DPL – Utility Segment

The results of operations of the Utility segment for DPL are identical in all material respects and for all periods presented to those of DP&L,which are included in Part I - Item 2 - Management's Discussion and Analysis of

63

Financial Condition and Results of Operations (RESULTS OF OPERATIONS HIGHLIGHTS – DP&L) of this Form 10-Q.

RESULTS OF OPERATIONS HIGHLIGHTS – DP&L

	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.

DP&L – Revenues

Retail customers, especially residential and commercial customers, consume more electricity during warmer and colder weather than they do during mild temperatures. Therefore,our retail sales volume is impacted by the number of heating and cooling degree-days occurring during a year. Cooling degree-days typically have a more significant impact than heating degree-days since some residential customers do not use electricity to heat their homes.

We sell our share of the generation output of OVEC into the wholesale market which covers a multi-state area and settles on an hourly basis throughout the year. Factors impacting our wholesale sales volume each hour of the year include: wholesale market prices; retail demand throughout the entire wholesale market area; and availability of OVEC generating plants to sell into the wholesale market.

64

DP&L's electric sales and billed customers were as follows:

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.

During the three months ended September 30, 2018, revenue increased $14.5 million to $198.7 million compared to $184.2 million in the same period of the prior year, and, during the nine months ended September 30, 2018, revenue increased $21.0 million to $563.5 million compared to $542.5 million in the same period of the prior year. These changes were primarily the result of changes in the components of revenue shown below:

	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

65

DP&L – Cost of Revenues

During the three months ended September 30, 2018, cost of revenues increased $8.7 million to $83.1 million compared to $74.4 million in the same period of the prior year, and, during the nine months ended September 30, 2018, cost of revenues increased $15.4 million to $237.4 million compared to $222.0 million in the same period of the prior year. These changes were primarily the result of changes in the components of cost of revenues shown below:

	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

DP&L – Operation and Maintenance

During the three and nine months ended September 30, 2018, Operation and Maintenance expense decreased $8.3 million and $14.3 million, respectively, compared to the same periods in the prior year. The main drivers of these changes are as follows:

	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.

DP&L – Depreciation and Amortization

During the three months ended September 30, 2018, Depreciation and amortization decreased $0.5 million, compared to the same period in the prior year.

During the nine months ended September 30, 2018, Depreciation and amortization increased $0.2 million, compared to the same period in the prior year.

66

DP&L – General Taxes

During the three months ended September 30, 2018, General taxes decreased $0.3 million compared to the same period in the prior year.

During the nine months ended September 30, 2018, General taxes decreased $3.5 million compared to the same period in the prior year. The decrease was primarily the result of a favorable adjustment for 2017 Ohio property taxes to reflect actual payments made in 2018.

DP&L – Loss on Disposal of Business

During the nine months ended September 30, 2018, DP&L recorded a Loss on disposal of business of $12.4 million due to the loss on the transfer of business interests in the Beckjord facility.

DP&L – Interest Expense

During the three months ended September 30, 2018, Interest expense decreased $2.1 million compared to the same period in the prior year. The decrease was primarily the result of debt repayments at DP&L in 2017 and 2018.

During the nine months ended September 30, 2018, Interest expense decreased $3.0 million compared to the same period in the prior year. The decrease was primarily the result of debt repayments at DP&L in 2017 and 2018.

DP&L – Income Tax Expense

Income tax expense increased $7.2 million from an income tax benefit of $0.9 million during the three months ended September 30, 2017 to income tax expense of $6.3 million during the three months ended September 30, 2018. The net change of $7.2 million was primarily due to higher pre-tax income in the current year versus the prior year, partially offset by the change in the estimated annual effective tax rate mainly resulting from the impacts related to the TCJA.

During the nine months ended September 30, 2018, Income tax expense increased $1.1 million compared to the same period in the prior year primarily due to higher pre-tax income in the current year versus the prior year, partially offset by the change in the estimated annual effective tax rate mainly resulting from the impacts related to the TCJA.

DP&L–Discontinued Operations

During the three and nine months ended September 30, 2017, DP&L recorded income / (loss) from discontinued operations (net of tax) of $8.4 million and $(45.6) million, respectively. This income / (loss) relates to the discontinued DP&L Generation segment, which was transferred to AES Ohio Generation through Generation Separation on October 1, 2017. See Note 13 – Generation Separation of Notes to DP&L's Condensed Financial Statements.

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KEY TRENDS AND UNCERTAINTIES

Through September 30, 2018, our financial results have primarily been driven by retail demand, weather and, to a lesser extent, wholesale prices. Following the issuance of the DRO in September 2018 and the resulting changes to the decoupling rider, we expect that our financial results will no longer be driven by retail demand and weather but will be impacted by customer growth within our service territory. See further discussion on these changes in Note 3 – Regulatory Matters of Notes to DPL's Condensed Consolidated Financial Statements and Note 3 – Regulatory Matters of Notes to DP&L's Condensed Financial Statements. In addition, DPL's and DP&L's financial results are likely to be driven by other factors including, but not limited to:

• 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.

Operational

As part of our announced plan to exit our generation businesses, on May 31, 2018, we retired the Stuart and Killen EGUs. In addition, we closed on a sale of our Peaker assets in March 2018. See Note 15 – Discontinued Operations in the Notes to DPL's Condensed Consolidated Financial Statements for additional information. In October 2018, AEP, the operator of the co-owned Conesville EGU, announced that Unit 4 would close by May 2020.

Regulatory Environment

DPL’s, DP&L’s and our other subsidiaries’ facilities and operations are subject to a wide range of regulations and laws by federal, state and local authorities. As well as 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 these facilities and operations in an effort to comply, or to determine compliance, with such regulations. We record liabilities for losses that are probable and can be reasonably estimated. In addition to matters discussed or updated herein, our 2017 Form 10-K and Forms 10-Q previously filed with the SEC during 2018 describe other regulatory matters which have not materially changed since those filings.

Ohio Regulatory Proceedings

See Note 3 – Regulatory Matters of Notes to DPL's Condensed Consolidated Financial Statements and Note 3 – Regulatory Matters of Notes to DP&L's Condensed Financial Statements.

Environmental Matters

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 refer to the discussion in “Item 1. Business - Environmental Matters” in our 2017 Form 10-K for a discussion of certain recent developments in environmental laws and regulations.

We have several pending environmental matters associated with our stations. Some of these matters could have material adverse effects on our operations or our financial condition.

As a result of DPL’s decision to retire its Stuart and Killen generating stations, the following environmental regulations and requirements are not expected to have a material impact on DPL with respect to either of the two generating stations:

• 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

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• revised technology-based regulations governing water discharges from steam electric generating facilities, finalized by the USEPA on November 3, 2015.

The USEPA's final CCR rule became effective on October 19, 2015. Generally, the rule regulates CCR as nonhazardous solid waste and establishes national minimum criteria for existing and new CCR landfills and existing and new CCR surface impoundments (ash ponds), including location restrictions, design and operating criteria, groundwater monitoring, corrective action and closure requirements and post-closure care. The USEPA has indicated that they will implement a phased approach to amending the CCR rule with Phase One being finalized no later than June 2019, and Phase Two no later than December 2019. While the USEPA published final CCR Rule Amendments (Phase One, Part One) in the Federal Register on July 30, 2018, the U.S. Court of Appeals for the District of Columbia issued a decision on August 21, 2018 on certain CCR litigation matters, which may result in revisions to the current and proposed CCR amendments.

The CCR rule, current or proposed amendments to the CCR rule, the results of groundwater monitoring data or the outcome of CCR-related litigation could have a material impact on our business, financial condition or results of operations.

CAPITAL RESOURCES AND LIQUIDITY

DPL and DP&L had unrestricted cash and cash equivalents of $65.4 million and $10.7 million, respectively, at September 30, 2018. At that date, neither DPL nor DP&L had short-term investments. DPL and DP&L had aggregate principal amounts of long-term debt outstanding of $1,489.5 million and $594.9 million, respectively.

Approximately $4.6 million of DPL's long-term debt, including $4.6 million of DP&L's long-term debt, matures within twelve months of the balance sheet date, and an additional $99.0 million outstanding principal on DPL's 6.75% Senior Notes is due October 1, 2019, which is within twelve months of the date of this filing. We expect to repay this debt using a combination of cash on hand, net cash provided by operating activities, borrowing capacity on our credit facility, and/or net proceeds from the issuance of new debt. From time to time, we may elect to repurchase our outstanding debt through cash purchases, privately negotiated transactions or otherwise when management believes such repurchases are favorable to make. The amounts involved in any such repurchases may be material.

We depend on timely and continued access to capital markets to manage our liquidity needs. The inability to raise capital on favorable terms, to refinance existing indebtedness or to fund operations and other commitments during times of political or economic uncertainty could have material adverse effects on our financial condition and results of operations. In addition, changes in the timing of tariff increases or delays in regulatory determinations could affect the cash flows and results of operations of our businesses.

Our discussion of DPL’s financial condition, liquidity and capital requirements include the results of its principal subsidiary DP&L.

CASH FLOWS – DPL

DPL’s financial condition, liquidity and capital requirements include the consolidated results of its principal subsidiary DP&L. All material intercompany accounts and transactions have been eliminated in consolidation. The following table summarizes the cash flows of DPL:

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

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DPL– Change in cash flows from operating activities

	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

The net change in operating assets and liabilities during the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017 was driven by the following:

$ 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

DPL– Cash flows from investing activities

Net cash from investing activities was $157.5 million for the nine months endedSeptember 30, 2018 compared to $(82.8) million for the nine months endedSeptember 30, 2017. Investing activity for the nine months endedSeptember 30, 2018 primarily relates to proceeds from the sale of business of $234.9 million, primarily due to the sale of the Peaker assets, and proceeds of $10.6 million, related to the June transmission swap with Duke and AEP, partially offset by capital expenditures of $75.8 million and payment on the disposal of Beckjord of $14.5 million. Investing activity for the nine months endedSeptember 30, 2017 was primarily driven by capital expenditures of $95.6 million.

DPL– Cash flows from financing activities

Net cash used in financing activities was $(249.4) million for thenine months endedSeptember 30, 2018 compared to $(57.1) million from financing activities for the nine months endedSeptember 30, 2017. The financing activity for the nine months endedSeptember 30, 2018 mainly relates to $239.4 million of payments on long-term debt primarily relating to the repayment of the remaining balance on the DPL term loan of $70.0 million, a $60.0 million repayment on the DP&L tax-exempt term loan, a $101.0 million repayment on the DPL 6.75% Senior Notes due 2019, and a $5.1 million make-whole premium payment associated with the partial redemption of the DPL 6.75% Senior Notes due 2019. The financing activity for the nine months endedSeptember 30, 2017 was primarily due to $122.1 million of payments on long-term debt from the redemption of the $100.0 million 4.8% first mortgage bonds and quarterly payments on the DPL and DP&L term loans, partially offset by $65.0 million net draws on revolving credit facilities.

CASH FLOWS – DP&L

The following table summarizes the cash flows of DP&L:

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

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DP&L– Change in cash flows from operating activities

	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

The net change in operating assets and liabilities during the nine months ended September 30, 2018 compared to the nine months ended September 30, 2017 was driven by the following:

$ 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

DP&L– Cash flows from investing activities

Net cash from investing activities was $(69.0) million for thenine months endedSeptember 30, 2018 compared to $(69.7) million for the nine months endedSeptember 30, 2017. The investing activity for the nine months endedSeptember 30, 2018 primarily relates to capital expenditures of $65.0 million and payment on the disposal of Beckjord of $14.5 million, partially offset by proceeds of $10.6 million related to the June transmission asset swap with Duke and AEP. The investing activity for the nine months endedSeptember 30, 2017 was primarily driven by capital expenditures of $82.4 million, partially offset by insurance proceeds of $12.5 million.

DP&L– Cash flows from financing activities

Net cash used in financing activities was $(37.1) million for the nine months endedSeptember 30, 2018 compared to $(42.3) million from financing activities for the nine months endedSeptember 30, 2017. The nine months endedSeptember 30, 2018 financing activity relates mainly to $63.3 million of payments on long-term debt, primarily relating to a $60.0 million repayment on the DP&L tax-exempt term loan, returns of capital paid to parent of $43.8 million, and $10.0 million net repayments on revolving credit facilities, which was partially offset by a $80.0 million capital contribution from DPL. The nine months endedSeptember 30, 2017 financing activity relates to the redemption of the $100.0 million 4.8% first mortgage bonds and repayments on the DP&L term loan and returns of capital paid to parent of $19.0 million, partially offset by a $70.0 million capital contribution from DPL.

LIQUIDITY

We expect our existing sources of liquidity to remain sufficient to meet our anticipated operating needs. Our business is capital intensive, requiring significant resources to fund operating expenses, construction expenditures, scheduled debt maturities, debt carrying costs and dividend payments. In 2018 and subsequent years, we expect to satisfy these requirements with a combination of cash from operations and funds from debt financing as internal liquidity needs and market conditions warrant. We also expect that the borrowing capacity under bank credit facilities will continue to be available to us to manage working capital requirements during these periods.

At September 30, 2018, DP&L and DPL have access to the following revolving credit facilities:

$ 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

DP&L has an unsecured revolving credit agreement with a syndicated bank group with a borrowing limit of $175.0 million and a $50.0 million letter of credit sublimit, as well as a feature that provides DP&L the ability to increase the size of the facility by an additional $100.0 million. This facility expires in July 2020. At September 30, 2018, there was one letter of credit in the amount of $1.1 million outstanding under this facility, and $0.0 million borrowed on the

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facility, with the remaining $173.9 million available to DP&L. Fees associated with this letter of credit facility were not material during the nine months endedSeptember 30, 2018 or 2017.

DPL has a revolving credit facility of $205.0 million, with a $200.0 million letter of credit sublimit and a feature that provides DPL the ability to increase the size of the facility by an additional $95.0 million. This facility is secured by a pledge of common stock that DPL owns in DP&L, limited to the amount permitted to be pledged under certain Indentures dated October 3, 2011 and October 6, 2014 between DPL and Wells Fargo Bank, NA and U.S. Bank National Association, respectively, as Trustee. The facility expires in July 2020. The springing maturity feature of this facility has been satisfied since the DPL Term Loan was paid in full on March 27, 2018 and $101.0 million of the DPL senior unsecured bonds due October 1, 2019 were redeemed on April 30, 2018. At September 30, 2018, there were six letters of credit in the aggregate amount of $15.6 million outstanding and no borrowings, with the remaining $189.4 million available to DPL. Fees associated with this facility were not material during the nine months endedSeptember 30, 2018 or 2017.

Capital Requirements

Planned construction additions for 2018 relate primarily to new investments in and upgrades to DP&L’s transmission and distribution system. Capital projects are subject to continuing review and are revised considering changes in financial and economic conditions, load forecasts, legislative and regulatory developments and changing environmental requirements, among other factors.

DPL is projecting to spend an estimated $355.0 million in capital projects for the period 2018 through 2020, of which $348.0 million is projected to be spent by DP&L. DP&L is subject to the mandatory reliability standards of NERC and Reliability First Corporation (RFC), one of the eight NERC regions, of which DP&L is a member. DP&L anticipates spending approximately $35.0 million within the next five years to reinforce its 138-kV system to comply with NERC standards. Our ability to complete capital projects and the reliability of future service will be affected by our financial condition, the availability of internal funds and the reasonable cost of external funds. We expect to finance our construction additions with a combination of cash on hand, short-term financing, long-term debt and cash flows from operations.

Long-term debt covenants

For information regarding our long-term debt covenants, see Note 7 – Long-term Debt of Notes to DPL's Condensed Consolidated Financial Statements and Note 7 – Long-term Debt of Notes to DP&L's Condensed Financial Statements.

Debt and Credit Ratings

The following table presents, as of the filing of this report, the debt ratings and outlook for DPL and DP&L, along with the effective or affirmed date of each rating.

	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.

The following table presents, as of the filing of this report, the credit ratings (issuer/corporate rating) and outlook for DPL and DP&L, along with the effective or affirmed date of each rating.

	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

If the rating agencies were to reduce our debt or credit ratings, our borrowing costs may increase, our potential pool of investors and funding resources may be reduced, and we may be required to post additional collateral under selected contracts. These events may have an adverse effect on our results of operations, financial condition and cash flows. In addition, any such reduction in our debt or credit ratings may adversely affect the trading price of our outstanding debt securities.

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Off-Balance Sheet Arrangements

For information on guarantees, commercial commitments, and contractual obligations, see Note 11 – Contractual Obligations, Commercial Commitments and Contingencies of Notes to DPL's Condensed Consolidated Financial Statements and Note 11 – Contractual Obligations, Commercial Commitments and Contingencies of Notes to DP&L's Condensed Financial Statements.

MARKET RISK

We are subject to certain market risks including, but not limited to, changes in commodity prices for electricity and fluctuations in interest rates. Our Risk Management Committee (RMC), comprised of members of senior management, is responsible for establishing risk management policies and the monitoring and reporting of risk exposures. The RMC meets on a regular basis with the objective of identifying, assessing and quantifying material risk issues and developing strategies to manage these risks.

The disclosures presented in this section are based upon a number of assumptions; actual effects may differ. The safe harbor provided in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 shall apply to the disclosures contained in this section. For further information regarding market risk, see Item 1A.—Risk Factors and Item 7A of our 2017 Form 10-K. Our businesses may incur substantial costs and liabilities and be exposed to price volatility as a result of risks associated with the electricity markets, which could have a material adverse effect on our financial performance; and we may not be adequately hedged against our exposure to changes in interest rates.

Purchased Power Costs

DP&L conducts competitive bid auctions to purchase power for SSO service, as DP&L's SSO is 100% sourced through the competitive bid.

As a result of DPL's exit from the majority of its coal-fired generation, changes in the prices of fuel and purchased power are not expected to have a material impact on our results of operations, financial position or cash flows.

Interest Rate Risk

Because of our normal investing and borrowing activities, our financial results are exposed to fluctuations in interest rates which we manage through our regular financing activities. We maintain both cash on deposit and investments in cash equivalents that may be affected by adverse interest rate fluctuations. DP&L has both fixed-rate and variable-rate long-term debt. The variable-rate debt is comprised of bank held tax-exempt bonds and a variable rate term loan B. The variable-rate bonds and term loan B bear interest based on an underlying interest rate index, typically LIBOR. Market indexes can be affected by market demand, supply, market interest rates and other economic conditions. See Note 7 – Long-term Debt of Notes to DPL's Condensed Consolidated Financial Statements and Note 7 – Long-term Debt of Notes to DP&L's Condensed Financial Statements.

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.

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Principal Payments and Interest Rate Detail by Contractual Maturity Date

The principal value of DPL’s long-term debt was $1,489.5 million at September 30, 2018, consisting of DPL’s unsecured notes, along with DP&L’s first mortgage bonds, tax-exempt bonds and the Wright-Patterson Air Force Base note. All of DPL’s long-term debt was adjusted to fair value at the date of the Merger. The fair value of this long-term debt at September 30, 2018 was $1,560.1 million, based on current market prices or discounted cash flows using current rates for similar issues with similar terms and remaining maturities. The following table provides information about DPL’s long-term debt obligations that are sensitive to interest rate changes:

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

The principal value of DP&L’s long-term debt was $594.9 million at September 30, 2018, consisting of its first mortgage bonds, tax-exempt bonds and the Wright-Patterson Air Force Base note. The fair value of this long-term debt was $594.9 million, based on current market prices or discounted cash flows using current rates for similar issues with similar terms and remaining maturities. The following table provides information about DP&L’s debt obligations that are sensitive to interest rate changes. DP&L’s debt was not revalued because of the Merger.

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

Long-term debt maturities and repayments occurring in the next twelve months are discussed under "CAPITAL RESOURCES AND LIQUIDITY".

Critical Accounting Estimates

DPL’s Condensed Consolidated Financial Statements and DP&L’s Condensed Financial Statements are prepared in accordance with GAAP. In connection with the preparation of these financial statements, our management is required to make assumptions, estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and the related disclosure of contingent liabilities. These assumptions, estimates and judgments are based on our historical experience and assumptions that we believe to be reasonable at the time. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgment. Our critical accounting estimates are those which require assumptions to be made about matters that are highly uncertain.

Different estimates could have a material effect on our financial results. Judgments and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions or circumstances. Historically, however, recorded estimates have not differed materially from actual results. Significant items subject to such judgments include: the carrying value of property, plant and equipment; unbilled revenues; the valuation of derivative instruments; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; the valuation of AROs; assets and liabilities related to employee benefits and intangible assets. Refer to our Form 10-K for the year ended December 31, 2017 for a

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complete listing of our critical accounting policies and estimates. There have been no material changes to these critical accounting policies and estimates.

Item 3 – Quantitative and Qualitative Disclosures about Market Risk

See the “MARKET RISK” section in Item 2 of this Part I, which is incorporated by reference into this item.

Item 4 – Controls and Procedures

Disclosure Controls and Procedures

DPL and DP&L, under the supervision and with the participation of its management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), evaluated the effectiveness of its “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) under the Securities Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of September 30, 2018, to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Controls over Financial Reporting

There were no changes that occurred during the fiscal quarter covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Part II – Other Information

Item 1 – Legal Proceedings

In the normal course of business, we are subject to various lawsuits, actions, claims, and other proceedings. We are also, from time to time, involved in other reviews, investigations and proceedings by governmental and regulatory agencies regarding our business, certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. We have accrued in our Financial Statements for litigation and claims where it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. We believe the amounts provided in our Financial Statements, as prescribed by GAAP, for these matters 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 and other matters (including those matters noted below), and to comply with applicable laws and regulations will not exceed the amounts reflected in our Financial Statements. As such, costs, if any, that may be incurred in excess of those amounts provided for in our Financial Statements, cannot be reasonably determined, but could be material.

Our Form 10-K for the fiscal year ended December 31, 2017 and Forms 10-Q for the quarters ended June 30, and March 31, 2018 and the Notes to DPL’s Consolidated Financial Statements and DP&L’s Financial Statements included therein contain descriptions of certain legal proceedings in which we are or were involved. The information in or incorporated by reference into this Item 1 to Part II is limited to certain recent developments concerning our legal proceedings and new legal proceedings, since the filing of such Forms 10-K and 10-Q, and should be read in conjunction with such Forms 10-K and 10-Q.

The following information is incorporated by reference into this Item: information about the legal proceedings contained in Part I, Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 3 – Regulatory Matters of Notes to DPL's Condensed Consolidated Financial Statements and Note 3 – Regulatory Matters of Notes to DP&L's Condensed Financial Statements of this Quarterly Report on Form 10-Q.

Item 1A – Risk Factors

A listing of the risk factors that we consider to be the most significant to a decision to invest in our securities is provided in our Form 10-K for the fiscal year ended December 31, 2017. As of September 30, 2018, there have

75

been no material changes with respect to the risk factors disclosed in our Form 10-K. If any of the events described in our risk factors occur, it could have a material effect on our results of operations, financial condition and cash flows.

The risks and uncertainties described in our risk factors are not the only ones we face. In addition, new risks may emerge at any time, and we cannot predict those risks or estimate the extent to which they may affect our business or financial performance. Our risk factors should be read in conjunction with the other detailed information concerning DPL and DP&L set forth in the Notes to DPL’s and DP&L’s Financial Statements and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections included in our filings.

Item 2 – Unregistered Sale of Equity Securities and Use of Proceeds

None

Item 3 – Defaults Upon Senior Securities

None

Item 4 – Mine Safety Disclosures

Not applicable.

Item 5 – Other Information

None

76

Item 6 – Exhibits

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	Filed herewith as Exhibit 31(a)
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	Filed herewith as Exhibit 31(b)
	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	Filed herewith as Exhibit 31(c)
	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	Filed herewith as Exhibit 31(d)
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	Filed herewith as Exhibit 32(a)
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	Filed herewith as Exhibit 32(b)
	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	Filed herewith as Exhibit 32(c)
	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	Filed herewith as Exhibit 32(d)
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

Exhibits referencing File No. 1-9052 have been filed by DPL Inc. and those referencing File No. 1-2385 have been filed by The Dayton Power and Light Company.

77

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, DPL Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		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)

78

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, The Dayton Power and Light Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		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)

79

EX-31.A

Exhibit 31(a)

CERTIFICATIONS

I, Craig L. Jackson, certify that:

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.

Date: November 5, 2018

/s/ Craig L. Jackson

Craig L. Jackson

President and Chief Executive Officer

EX-31.B

Exhibit 31(b)

CERTIFICATIONS

I, Gustavo D. Pimenta, certify that:

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.

Date: November 5, 2018

/s/ Gustavo D. Pimenta

Gustavo D. Pimenta

Chief Financial Officer

EX-31.C

 Exhibit 31(c)

CERTIFICATIONS

I, Craig L. Jackson, certify that:

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.

Date: November 5, 2018

/s/ Craig L. Jackson

Craig L. Jackson

President and Chief Executive Officer

EX-31.D

Exhibit 31(d)

CERTIFICATIONS

I, Gustavo D. Pimenta, certify that:

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.

Date: November 5, 2018

/s/ Gustavo D. Pimenta

Gustavo D. Pimenta

Vice President and Chief Financial Officer

EX-32.A

Exhibit 32(a)

DPL Inc.

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

The undersigned officer of DPL Inc. (the “Issuer”) hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Issuer’s Quarterly Report on Form 10-Q for the period ended September 30, 2018, which this certificate accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Issuer as of the dates and for the periods expressed therein.

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this statement required by Section 906 of the Sarbanes-Oxley Act of 2002, has been provided to the Issuer and will be retained by the Issuer and furnished to the Securities and Exchange Commission or its staff upon request.

Signed:

/s/ Craig L. Jackson

Craig L. Jackson

President and Chief Executive Officer

Date: November 5, 2018

The foregoing certificate is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Issuer’s Annual Report or as a separate disclosure document.

EX-32.B

Exhibit 32(b)

DPL Inc.

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

The undersigned officer of DPL Inc. (the “Issuer”) hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Issuer’s Quarterly Report on Form 10-Q for the period ended September 30, 2018, which this certificate accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Issuer as of the dates and for the periods expressed therein.

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this statement required by Section 906 of the Sarbanes-Oxley Act of 2002, has been provided to the Issuer and will be retained by the Issuer and furnished to the Securities and Exchange Commission or its staff upon request.

Signed:

/s/ Gustavo D. Pimenta

Gustavo D. Pimenta

Chief Financial Officer

Date: November 5, 2018

The foregoing certificate is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Issuer’s Annual Report or as a separate disclosure document.

EX-32.C

Exhibit 32(c)

The Dayton Power and Light Company

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

The undersigned officer of The Dayton Power and Light Company (the “Issuer”) hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Issuer’s Quarterly Report on Form 10-Q for the period ended September 30, 2018, which this certificate accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Issuer as of the dates and for the periods expressed therein.

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this statement required by Section 906 of the Sarbanes-Oxley Act of 2002, has been provided to the Issuer and will be retained by the Issuer and furnished to the Securities and Exchange Commission or its staff upon request.

Signed:

/s/ Craig L. Jackson

Craig L. Jackson

President and Chief Executive Officer

Date: November 5, 2018

The foregoing certificate is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Issuer’s Annual Report or as a separate disclosure document.

EX-32.D

Exhibit 32(d)

The Dayton Power and Light Company

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

The undersigned officer of The Dayton Power and Light Company (the “Issuer”) hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Issuer’s Quarterly Report on Form 10-Q for the period ended September 30, 2018, which this certificate accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Issuer as of the dates and for the periods expressed therein.

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this statement required by Section 906 of the Sarbanes-Oxley Act of 2002, has been provided to the Issuer and will be retained by the Issuer and furnished to the Securities and Exchange Commission or its staff upon request.

Signed:

/s/ Gustavo D. Pimenta

Gustavo D. Pimenta

Vice President and Chief Financial Officer

Date: November 5, 2018

The foregoing certificate is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Issuer’s Annual Report or as a separate disclosure document.

XML

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

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues	$ 207.7	$ 191.7	$ 591.5	$ 561.7
Cost of revenues:
Net fuel cost	4.6	3.3	12.7	7.6
Cost of Goods and Services Sold	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):			(0.6)	15.9
Other Operating Income (Expense), Net	(1.6)	0.4	(14.6)	0.4
Gain (Loss) on Disposition of Business			(13.2)	0.0
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	0.0	(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)
Income / (loss) from discontinued operations before income tax	5.0	30.8	36.7	(33.6)
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	0.3	0.0	(1.6)	0.0
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)
THE DAYTON POWER AND LIGHT COMPANY [Member]
Revenues	198.7	184.2	563.5	542.5
Cost of revenues:
Net fuel cost	0.1	0.0	1.7	0.0
Cost of Goods and Services Sold	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
Gain (Loss) on Sale of Assets and Asset Impairment Charges, excluding Discontinued Operations	0.0	0.3	(0.1)	0.3
Other, net (Note 2):			0.0	15.9
Gain (Loss) on Disposition of Business	0.0	0.0	(12.4)	0.0
Total operating expenses	71.9	80.7	229.2	234.0
Operating income	43.7	29.1	96.9	86.5
Other income / (expense), net
Interest expense	(5.8)	(7.9)	(20.5)	(23.5)
Charge for early redemption of debt	0.0	(1.0)	(0.6)	(1.1)
Other income	(0.4)	(0.2)	(1.9)	(1.8)
Total other expense, net	(6.2)	(9.1)	(23.0)	(26.4)
Income / (loss) 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 / (loss) from continuing operations	31.2	20.9	61.9	49.2
Income / (loss) from discontinued operations before income tax	0.0	21.2	0.0	(56.3)
Income tax expense / (benefit) from discontinued operations	0.0	12.8	0.0	(10.7)
Net income / (loss) from discontinued operations	0.0	8.4	0.0	(45.6)
Net income / (loss)	31.2	29.3	61.9	3.6
Electricity, Purchased [Member]
Cost of revenues:
Cost of Goods and Services Sold	83.6	74.7	238.9	222.8
Electricity, Purchased [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Cost of revenues:
Cost of Goods and Services Sold	$ 83.0	$ 74.4	$ 235.7	$ 222.0

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net income	$ 21.0	$ 21.9	$ 41.4	$ (29.3)
Equity securities activity:
AOCI reclassed to Retained Earnings, net of tax	0.0	0.0	(1.0)	0.0
Total change in fair value of available-for-sale securities	0.0	0.1	(1.0)	0.3
Derivative activity:
Change in derivative fair value, net of income tax	0.1	1.4	0.4	12.1
Reclassification of earnings, net of income tax	(0.2)	(0.1)	(0.6)	(0.5)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives Related to Discontinued Operations, Net of Tax	0.0	(2.3)	2.8	(5.5)
Total change in fair value of derivatives	(0.1)	(1.0)	2.6	6.1
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax	0.0	0.0	0.0	(0.3)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax	0.0	0.0	0.0	(1.2)
Pension and postretirement activity:
Reclassification to earnings, net of income tax	0.1	0.0	0.4	0.9
Total change in unfunded pension obligation	0.1	0.0	0.4	(0.6)
Other comprehensive income / (loss)	0.0	(0.9)	2.0	5.8
Net comprehensive income / (loss)	21.0	21.0	43.4	(23.5)
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax	0.0	0.1	0.0	0.4
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	0.0	0.0	0.0	0.1
THE DAYTON POWER AND LIGHT COMPANY [Member]
Net income	31.2	29.3	61.9	3.6
Equity securities activity:
AOCI reclassed to Retained Earnings, net of tax	0.0	0.0	(1.1)	0.0
Total change in fair value of available-for-sale securities	0.0	0.1	(1.1)	0.3
Derivative activity:
Change in derivative fair value, net of income tax	0.0	1.4	0.5	12.1
Reclassification of earnings, net of income tax	(0.2)	(0.2)	(0.5)	(0.5)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives Related to Discontinued Operations, Net of Tax	0.0	(2.2)	0.0	(5.5)
Total change in fair value of derivatives	(0.2)	(1.0)	0.0	6.1
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax	0.0	0.0	0.0	(1.1)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax	0.0	0.0	0.0	(0.5)
Pension and postretirement activity:
Reclassification to earnings, net of income tax	0.9	0.7	2.5	3.8
Total change in unfunded pension obligation	0.9	0.7	2.5	2.2
Other comprehensive income / (loss)	0.7	(0.2)	1.4	8.6
Net comprehensive income / (loss)	31.9	29.1	63.3	12.2
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax	0.0	0.1	0.0	0.4
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	$ 0.0	$ 0.0	0.0	$ 0.1
Gains / (losses) on available-for-sale securities [Member]
Equity securities activity:
AOCI reclassed to Retained Earnings, net of tax			(1.0)
Pension and postretirement activity:
Other comprehensive income / (loss)			(1.0)
Gains / (losses) on available-for-sale securities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Equity securities activity:
AOCI reclassed to Retained Earnings, net of tax			(1.1)
Pension and postretirement activity:
Other comprehensive income / (loss)			$ (1.1)

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Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income tax (expense)/benefit on unrealized gains (losses) related to available-for-sale securities	$ 0.0	$ (0.1)	$ 0.0	$ (0.2)
Income tax (expense) benefit on reclassification to earnings	0.0	0.0	0.0	0.0
AOCI reclassed to Retained Earnings, income tax	0.0	0.0	0.6	0.0
Income tax (expense)/benefit on unrealized gains (losses) related to derivative activity	0.0	(0.8)	(0.2)	(6.6)
Income tax (expense)/benefit on reclassification of earnings related to derivative activity	0.1	0.1	0.3	0.3
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives Related to Discontinued Operations, Tax	0.0	1.2	(1.5)	3.0
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax	0.0	0.0	0.0	0.2
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax	0.0	0.0	0.0	0.7
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity	(0.1)	0.0	(0.1)	(0.5)
THE DAYTON POWER AND LIGHT COMPANY [Member]
Income tax (expense)/benefit on unrealized gains (losses) related to available-for-sale securities	0.0	(0.1)	0.0	(0.2)
Income tax (expense) benefit on reclassification to earnings	0.0	0.0	0.0	0.0
AOCI reclassed to Retained Earnings, income tax	0.0	0.0	0.6	0.0
Income tax (expense)/benefit on unrealized gains (losses) related to derivative activity	(0.1)	(0.8)	(0.1)	(6.6)
Income tax (expense)/benefit on reclassification of earnings related to derivative activity	0.1	0.1	0.6	0.3
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives Related to Discontinued Operations, Tax	0.0	1.3	0.0	3.0
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax	0.0	0.0	0.0	0.6
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax	0.0	0.0	0.0	0.2
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity	$ (0.2)	$ (0.4)	$ (0.7)	$ (2.1)

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 65.4		$ 65.4		$ 24.5
Restricted cash	22.0		22.0		0.4
Accounts receivable, net	95.5		95.5		64.6
Inventories	10.7		10.7		12.7
Taxes applicable to subsequent years	17.1		17.1		71.3
Regulatory assets, current	34.0		34.0		23.9
Other prepayments and current assets	11.5		11.5		12.6
Assets Held-for-sale, Not Part of Disposal Group, Current	9.5		9.5		315.6
Total current assets	265.7		265.7		525.6
Property, plant & equipment:
Property, plant & equipment	1,586.5		1,586.5		1,542.4
Less: Accumulated depreciation and amortization	(297.1)		(297.1)		(269.1)
Property, plant and equipment, net of depreciation	1,289.4		1,289.4		1,273.3
Construction work in process	31.3		31.3		46.5
Total net property, plant & equipment	1,320.7		1,320.7		1,319.8
Other non-current assets:
Regulatory assets, non-current	150.6		150.6		163.2
Intangible assets, net of amortization	16.6		16.6		18.8
Other deferred assets	23.9		23.9		13.8
Disposal Group, Including Discontinued Operation, Assets, Noncurrent	8.0		8.0		8.0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	(0.2)	$ (0.1)	(0.6)	$ (0.5)
Total other non-current assets	199.1		199.1		203.8
Total assets	1,785.5		1,785.5		2,049.2
Current liabilities:
Current portion of long-term debt	4.6		4.6		4.6
Short-term debt	0.0		0.0		10.0
Accounts payable	46.9		46.9		48.9
Accrued taxes	74.9		74.9		77.3
Accrued interest	30.1		30.1		16.4
Security deposits	20.5		20.5		21.8
Regulatory liabilities, current	36.1		36.1		14.8
Other current liabilities	14.0		14.0		16.2
Liabilities Held for Sale, Current	19.9		19.9		66.9
Total current liabilities	247.0		247.0		276.9
Non-current liabilities:
Long-term debt	1,471.4		1,471.4		1,700.2
Deferred taxes	110.6		110.6		128.6
Taxes payable	3.5		3.5		74.8
Regulatory liabilities, non-current	239.7		239.7		221.2
Pension, retiree and other benefits	82.7		82.7		90.3
Asset Retirement Obligations, Noncurrent	13.5	132.5	13.5	132.5	15.1
Other deferred credits	8.0		8.0		8.5
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent	118.6		118.6		117.9
Total non-current liabilities	2,048.0		2,048.0		2,356.6
Commitments and contingencies
Common shareholder's equity:
Common stock	0.0		0.0		0.0
Other paid-in capital	2,360.8		2,360.8		2,330.4
Accumulated other comprehensive income	2.8		2.8		0.8
Retained earnings/ (deficit)	(2,873.1)		(2,873.1)		(2,915.5)
Total common shareholder's equity	(509.5)		(509.5)		(584.3)
Total liabilities and shareholder's equity	1,785.5		1,785.5		2,049.2
THE DAYTON POWER AND LIGHT COMPANY [Member]
Current assets:
Cash and cash equivalents	10.7		10.7		5.2
Restricted cash	2.0		2.0		0.4
Accounts receivable, net	103.0		103.0		70.8
Inventories	7.5		7.5		7.3
Taxes applicable to subsequent years	17.1		17.1		71.1
Regulatory assets, current	34.0		34.0		23.9
Other prepayments and current assets	11.7		11.7		14.6
Total current assets	186.0		186.0		193.3
Property, plant & equipment:
Property, plant & equipment	2,253.8		2,253.8		2,247.2
Less: Accumulated depreciation and amortization	(980.3)		(980.3)		(987.3)
Property, plant and equipment, net of depreciation	1,273.5		1,273.5		1,259.9
Construction work in process	29.8		29.8		41.5
Total net property, plant & equipment	1,303.3		1,303.3		1,301.4
Other non-current assets:
Regulatory assets, non-current	150.6		150.6		163.2
Intangible assets, net of amortization	15.4		15.4		18.8
Other deferred assets	23.1		23.1		12.7
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	(0.2)	(0.2)	(0.5)	(0.5)
Total other non-current assets	189.1		189.1		194.7
Total assets	1,678.4		1,678.4		1,689.4
Current liabilities:
Current portion of long-term debt	4.6		4.6		4.6
Short-term debt	0.0		0.0		10.0
Accounts payable	44.1		44.1		46.6
Accrued taxes	82.5		82.5		70.1
Accrued interest	0.7		0.7		0.8
Security deposits	20.5		20.5		21.8
Regulatory liabilities, current	36.1		36.1		14.8
Other current liabilities	11.2		11.2		12.9
Total current liabilities	199.7		199.7		181.6
Non-current liabilities:
Long-term debt	582.1		582.1		642.0
Deferred taxes	125.3		125.3		131.0
Taxes payable	4.8		4.8		75.8
Regulatory liabilities, non-current	239.7		239.7		221.2
Pension, retiree and other benefits	83.5		83.5		91.1
Asset Retirement Obligation	4.7	$ 131.0	4.7	$ 131.0	8.0
Other deferred credits	7.6		7.6		8.0
Total non-current liabilities	1,047.7		1,047.7		1,177.1
Commitments and contingencies
Common shareholder's equity:
Common stock	0.4		0.4		0.4
Other paid-in capital	721.8		721.8		685.8
Accumulated other comprehensive income	(34.8)		(34.8)		(36.2)
Retained earnings/ (deficit)	(256.4)		(256.4)		(319.3)
Total common shareholder's equity	431.0		431.0		330.7
Total liabilities and shareholder's equity	$ 1,678.4		$ 1,678.4		$ 1,689.4

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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

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 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 retirement of debt	6.4	3.3
Deferred income taxes	(17.8)	(3.5)
Impairment of Long-Lived Assets Held-for-use	2.8	66.4
Gain (Loss) on Disposition of Business	(13.2)	0.0
Gain (Loss) on Sale of Assets and Asset Impairment Charges	(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
Increase (Decrease) in Security Deposits	(1.3)	1.1
Increase (Decrease) in Obligation, Pension and Other Postretirement 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	0.0
Payments for Removal Costs	(14.5)	0.0
Proceeds from Sale of Property, Plant, and Equipment	10.6	0.0
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:
Repayments of Lines of Credit	(40.0)	(15.0)
Proceeds from Lines of Credit	30.0	80.0
Repayment of long-term debt	(239.4)	(122.1)
Net cash used in financing activities	(249.4)	(57.1)
Net Cash Provided by (Used in) Discontinued Operations	1.5	27.0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	62.5	(31.2)
Other deferred credits	8.0
Supplemental cash flow information:
Interest paid, net of amounts capitalized	55.2	69.0
Proceeds from Income Tax Refunds	(2.0)	0.0
Non-cash financing and investing activities:
Accruals for capital expenditures	7.6	9.2
Restricted Cash and Cash Equivalents	87.4	23.4
Non-cash Proceeds from Sale of Business	4.1	0.0
Non-cash capital contribution	30.2	0.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Cash flows from operating activities:
Net income	61.9	3.6
Adjustments to reconcile net income / (loss) to net cash from operating activities:
Depreciation and amortization	56.5	68.2
Charge for early retirement of debt	0.6	1.1
Deferred income taxes	(7.5)	1.6
Impairment of Long-Lived Assets Held-for-use	0.0	66.3
Gain (Loss) on Disposition of Business	(12.4)	0.0
Gain (Loss) on Sale of Assets and Asset Impairment Charges	0.0	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)
Increase (Decrease) in Security Deposits	(1.3)	1.1
Increase (Decrease) in Obligation, Pension and Other Postretirement 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)
Payments for Removal Costs	(14.5)	0.0
Proceeds from Sale of Property, Plant, and Equipment	10.6	0.0
Insurance proceeds	0.1	12.5
Other investing activities, net	(0.2)	0.2
Net cash provided by / (used in) investing activities	(69.0)	(69.7)
Cash flows from financing activities:
Repayments of Lines of Credit	(40.0)	(15.0)
Proceeds from Lines of Credit	30.0	30.0
Repayment of long-term debt	(63.3)	(103.3)
Payments of Ordinary Dividends, Common Stock	(43.8)	(19.0)
Repayment of short-term debt - related party	0.0	30.0
Repayments of Related Party Debt	0.0	(35.0)
Proceeds from Contributions from Parent	80.0	70.0
Net cash used in financing activities	(37.1)	(42.3)
Net Cash Provided by (Used in) Discontinued Operations	0.0	27.0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect	7.1	13.7
Other deferred credits	7.6
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
Restricted Cash and Cash Equivalents	$ 12.7	$ 15.3

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Overview and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2018

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 a6,000-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 DPLemployees 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:

$ 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

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.

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.

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.

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.

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.

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&Lis 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 a6,000-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&Lemployees 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:

$ 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

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.

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.

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.

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.

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.

XML

Supplemental Financial Information

9 Months Ended

Sep. 30, 2018

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:

	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

(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:

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	)

The changes in the components of Accumulated Other Comprehensive Income / (Loss) during the nine months endedSeptember 30, 2018 are as follows:

$ 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

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:

	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	)

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:

	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

(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:

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	)

The changes in the components of Accumulated Other Comprehensive Income / (Loss) during the nine months ended September 30, 2018 are as follows:

$ 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	)

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Regulatory Matters (Notes)

9 Months Ended

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.

XML

Property, Plant and Equipment (Notes)

9 Months Ended

Sep. 30, 2018

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

$ 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

See Note 5 – Fair Value for further discussion on changes to our AROs.

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

$ 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

See Note 5 – Fair Value for further discussion on changes to our AROs.

XML

Fair Value

9 Months Ended

Sep. 30, 2018

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.

	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

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:

$ 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

Our financial instruments are valued using the market approach in the following categories:

• Level 1 inputs are used for money market accounts that are considered cash equivalents. The fair value is determined by reference to quoted market prices and other relevant information generated by market transactions.

• Level 2 inputs are used to value derivatives such as interest rate hedge contracts which are valued using a benchmark interest rate. Other Level 2 assets include open-ended mutual funds in the Master Trust, which are valued using the end of day NAV per unit.

• Level 3 inputs such as certain debt balances are considered a Level 3 input because the notes are not publicly traded. Our long-term debt is fair valued for disclosure purposes only.

All of the inputs to the fair value of our derivative instruments are from quoted market prices.

Our long-term debt is fair valued for disclosure purposes only and most of the fair values are determined using quoted market prices in inactive markets. These fair value inputs are considered Level 2 in the fair value hierarchy. As the Wright-Patterson Air Force Base note is not publicly traded, fair value is assumed to equal carrying value. These fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs.

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).

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.

	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

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:

$ 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

Our financial instruments are valued using the market approach in the following categories:

• Level 1 inputs are used for money market accounts that are considered cash equivalents. The fair value is determined by reference to quoted market prices and other relevant information generated by market transactions.

• Level 2 inputs are used to value derivatives such as interest rate hedge contracts which are valued using a benchmark interest rate. Other Level 2 assets include open-ended mutual funds in the Master Trust, which are valued using the end of day NAV per unit.

• Level 3 inputs such as certain debt balances are considered a Level 3 input because the notes are not publicly traded. Our long-term debt is fair valued for disclosure purposes only.

All of the inputs to the fair value of our derivative instruments are from quoted market prices.

Our long-term debt is fair valued for disclosure purposes only and most of the fair values are determined using quoted market prices in inactive markets. These fair value inputs are considered Level 2 in the fair value hierarchy. As the Wright-Patterson Air Force Base note is not publicly traded, fair value is assumed to equal carrying value. These fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs.

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.

XML

Derivative Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosures [Line Items]

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:

	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

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:

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.

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.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Derivative Instruments and Hedging Activities Disclosures [Line Items]

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:

	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

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:

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.

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.

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Debt Obligations

9 Months Ended

Sep. 30, 2018

Debt Instrument [Line Items]

Debt Obligations

Long-term Debt

The following table summarizes DPL's outstanding long-term debt.

	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 endedSeptember 30, 2018.

(b) Range of interest rates for the year ended December 31, 2017.

(c) Note payable to related party.

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 DPL6.75% 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 than0.65 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 TotalConsolidated 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.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Debt Instrument [Line Items]

Debt Obligations

Long-term Debt

The following table summarizes DP&L's outstanding long-term debt.

	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.

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 than0.65 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 TotalConsolidated 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.

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Income Taxes

9 Months Ended

Sep. 30, 2018

Entity Information [Line Items]

Income Taxes

Income Taxes

The following table details the effective tax rates for the three and nine months ended September 30, 2018 and 2017.

	Three months ended		Nine months ended
	September 30,		September 30,
	2018	2017	2018	2017
DPL	15.7%	63.0%	10.9%	39.1%

Income tax expense for the nine months endedSeptember 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 endedSeptember 30, 2018, DPL converted $30.2 million of accrued tax sharing liabilities with AES to additional equity investment in DPL.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

Income Taxes

Income Taxes

The following table details the effective tax rates for the three and nine months ended September 30, 2018 and 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%

Income tax expense for the nine months endedSeptember 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).

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Benefit Plans

9 Months Ended

Sep. 30, 2018

Entity Information [Line Items]

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:

	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 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:

$ 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 DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

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:

	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 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:

$ 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

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Shareholder's Equity

9 Months Ended

Sep. 30, 2018

Class of Stock [Line Items]

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.

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Contractual Obligations, Commercial Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Entity Information [Line Items]

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:

• 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 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.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

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:

• 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.

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.

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Business Segments

9 Months Ended

Sep. 30, 2018

Segment Reporting Information [Line Items]

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:

$ 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.

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Revenue (Notes)

9 Months Ended

Sep. 30, 2018

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:

$ 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.

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.

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:

	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.

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.

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Dispositions (Notes)

9 Months Ended

Sep. 30, 2018

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:

$ 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.

The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:

	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	)

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.

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:

	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	)

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.

XML

Generation Separation (Notes)

9 Months Ended

Sep. 30, 2018

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:

$ 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.

The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:

	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	)

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.

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:

	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	)

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.

XML

Discontinued Operations

9 Months Ended

Sep. 30, 2018

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:

$ 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.

The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:

	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	)

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.

XML

Held for Sale (Notes)

9 Months Ended

Sep. 30, 2018

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:

$ 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.

The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:

	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	)

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.

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:

	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	)

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.

XML

Summary of Significant Accounting Policies (Policy)

9 Months Ended

Sep. 30, 2018

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 a6,000-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 DPLemployees are under a collective bargaining agreement, which expires October 31, 2020.

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.

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.

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.

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.

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.

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.

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.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Significant Accounting Policies [Line Items]

Description of Business

Description of Business

DP&Lis 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 a6,000-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&Lemployees are under a collective bargaining agreement, which expires October 31, 2020.

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.

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.

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.

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.

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.

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.

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.

XML

Generation Separation (Policies)

9 Months Ended

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.

XML

Discontinued Operations Discontinued Operations (Policies)

9 Months Ended

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.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

Related Party Transaction [Line Items]

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:

$ 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

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.

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.

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.

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.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Related Party Transaction [Line Items]

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:

$ 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

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Supplemental Financial Information (Tables)

9 Months Ended

Sep. 30, 2018

Supplemental Financial Information [Line Items]

Schedule of Supplemental Financial Information

September 30, 2018 and December 31, 2017:

	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

(a) - See Note 3 – Regulatory Matters for more information on this item.

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:

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	)

Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income / (Loss) during the nine months endedSeptember 30, 2018 are as follows:

$ 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

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:

	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	)

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:

	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

(a) - See Note 3 – Regulatory Matters for more information on this item.

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:

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	)

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:

$ 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	)

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Property, Plant and Equipment (Tables)

9 Months Ended

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

$ 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

See Note 5 – Fair Value for further discussion on changes to our AROs.

Subsidiaries [Member]

Property, Plant and Equipment [Line Items]

Schedule of Change in Asset Retirement Obligation [Table Text Block]

Changes in the Liability for AROs

$ 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

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Fair Value (Tables)

9 Months Ended

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.

	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

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:

$ 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

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.

	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

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:

$ 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

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Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

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:

	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

Net gains or losses associated with the ineffective portion of the hedging transactions were immaterial in the periods presented.

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:

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.

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:

	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

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:

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.

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Debt (Tables)

9 Months Ended

Sep. 30, 2018

Debt Instrument [Line Items]

Long-term Debt

The following table summarizes DPL's outstanding long-term debt.

	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 endedSeptember 30, 2018.

(b) Range of interest rates for the year ended December 31, 2017.

(c) Note payable to related party.

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.

	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.

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Income Taxes (Tables)

9 Months Ended

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.

	Three months ended		Nine months ended
	September 30,		September 30,
	2018	2017	2018	2017
DPL	15.7%	63.0%	10.9%	39.1%

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.

	Three months ended		Nine months ended
	September 30,		September 30,
	2018	2017	2018	2017
DP&L	16.8%	(4.5)%	16.2%	18.1%

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Benefit Plans (Tables)

9 Months Ended

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:

	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.

Estimated Future Benefit Payments and Medicare Part D Reimbursements

Benefit payments, which reflect future service, are estimated to be paid as follows:

$ 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 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:

	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.

Estimated Future Benefit Payments and Medicare Part D Reimbursements

Benefit payments, which reflect future service, are estimated to be paid as follows:

$ 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

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Business Segments (Tables)

9 Months Ended

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:

$ 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.

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Revenue (Tables)

9 Months Ended

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:

$ 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.

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:

	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.

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Generation Separation (Tables)

9 Months Ended

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:

$ 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.

The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:

	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	)

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:

	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	)

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Discontinued Operations (Tables)

9 Months Ended

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:

$ 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.

The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:

	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	)

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Held for Sale (Tables)

9 Months Ended

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:

$ 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.

The following table summarizes the revenues, cost of revenues, operating and other expenses and income tax of discontinued operations for the periods indicated:

	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	)

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:

	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	)

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Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions		3 Months Ended		9 Months Ended
	Jan. 01, 2018 USD ($)	Sep. 30, 2018 USD ($) employee	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($) mi² employee customer generating_facility segment	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Significant Accounting Policies [Line Items]
Number of reportable segments | segment				1
Cash and Cash Equivalents, at Carrying Value		$ 65.4		$ 65.4		$ 24.5
Entity number of employees | employee		674		674
Employees under a collective bargaining agreement which expires in October-2011				53.00%
Excise taxes collected		$ 13.8	$ 13.0	$ 39.2	$ 36.9
Restricted Cash and Cash Equivalents, Current		22.0		22.0		0.4
Restricted Cash and Cash Equivalents		87.4	23.4	87.4	23.4	24.9	$ 54.6
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
THE DAYTON POWER AND LIGHT COMPANY [Member]
Significant Accounting Policies [Line Items]
Number of reportable segments | segment				1
Cash and Cash Equivalents, at Carrying Value		$ 10.7		$ 10.7		5.2
Approximate number of retail customers | customer				524,000
Service area, square miles | mi²				6,000
Number of Operating Segments | segment				1
Entity number of employees | employee		648		648
Employees under a collective bargaining agreement which expires in October-2011				55.00%
Number Of Generating Facilities | generating_facility				1
Excise taxes collected		$ 13.8	13.0	$ 39.2	36.9
Restricted Cash and Cash Equivalents, Current		2.0		2.0		0.4
Restricted Cash and Cash Equivalents		12.7	15.3	12.7	15.3	$ 5.6	$ 1.6
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
Adjustments for New Accounting Pronouncement [Member]
Significant Accounting Policies [Line Items]
AOCI reclassed to Retained Earnings before tax				1.6
AOCI reclassed to Retained Earnings, net of tax				1.0
Non-service Pension Costs					(1.6)
Increase (Decrease) in Restricted Cash					27.0
Adjustments for New Accounting Pronouncement [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Significant Accounting Policies [Line Items]
AOCI reclassed to Retained Earnings before tax				1.7
AOCI reclassed to Retained Earnings, net of tax				$ 1.1
Non-service Pension Costs					1.2
Increase (Decrease) in Restricted Cash					$ 27.0

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Supplemental Financial Information (Supplemental Financial Information) (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
Supplemental Financial Information [Line Items]
Gain (Loss) on Disposition of Business			$ (13.2)	$ 0.0
Gain (Loss) on Sale of Assets and Asset Impairment Charges			0.6	(15.9)
Unbilled Revenue	$ 11.0		11.0		$ 18.0
Customer receivables	60.4		60.4		45.2
Due from PJM transmission settlement	21.7		21.7		0.0
Other	3.5		3.5		2.5
Provision for uncollectible accounts	(1.1)		(1.1)		(1.1)
Total accounts receivable, net	95.5		95.5		64.6
Fuel and limestone	2.0		2.0		4.1
Plant materials and supplies	8.1		8.1		8.1
Other	0.6		0.6		0.5
Total inventories, at average cost	10.7		10.7		12.7
Other Operating Income (Expense), Net	(1.6)	$ 0.4	(14.6)	0.4
THE DAYTON POWER AND LIGHT COMPANY [Member]
Supplemental Financial Information [Line Items]
Gain (Loss) on Disposition of Business	0.0	0.0	(12.4)	0.0
Gain (Loss) on Sale of Assets and Asset Impairment Charges			0.0	(15.9)
Unbilled Revenue	11.0		11.0		18.0
Customer receivables	59.0		59.0		44.2
Due from PJM transmission settlement	21.7		21.7		0.0
Amounts due from partners in jointly owned stations	9.0		9.0		3.7
Other	3.4		3.4		6.0
Provision for uncollectible accounts	(1.1)		(1.1)		(1.1)
Total accounts receivable, net	103.0		103.0		70.8
Plant materials and supplies	6.9		6.9		6.9
Other	0.6		0.6		0.4
Total inventories, at average cost	7.5		7.5		$ 7.3
Other Operating Income (Expense) [Member]
Supplemental Financial Information [Line Items]
Gain (Loss) on Sale of Assets and Asset Impairment Charges	0.0	0.0	11.7	0.0
Asset Impairment Charges	1.6	0.0	2.8	0.0
Other Cost and Expense, Operating	0.0	(0.4)	0.1	(0.4)
Other Operating Income (Expense), Net	$ 1.6	$ (0.4)	$ 14.6	$ (0.4)

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Supplemental Financial Information (Reclassification out of ACOI) (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Jan. 01, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other income		$ (22.1)	$ (30.0)	$ (80.0)	$ (85.0)
AOCI reclassed to Retained Earnings before tax	$ 1.6
Tax expense		(3.1)	1.7	(1.5)	5.0
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax		5.0	30.8	36.7	(33.6)
Discontinued Operation, Tax Effect of Discontinued Operation		(1.0)	(7.9)	(5.9)	12.1
Net income / (loss)		21.0	21.9	41.4	(29.3)
Interest expense		(22.6)	(27.8)	(74.4)	(82.7)
Operating Expenses		(77.6)	(86.4)	(246.2)	(259.1)
THE DAYTON POWER AND LIGHT COMPANY [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other income		(6.2)	(9.1)	(23.0)	(26.4)
AOCI reclassed to Retained Earnings before tax	$ 1.7
Tax expense		(6.3)	0.9	(12.0)	(10.9)
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax		0.0	21.2	0.0	(56.3)
Discontinued Operation, Tax Effect of Discontinued Operation		0.0	(12.8)	0.0	10.7
Net income / (loss)		31.2	29.3	61.9	3.6
Interest expense		(5.8)	(7.9)	(20.5)	(23.5)
Operating Expenses		(71.9)	(80.7)	(229.2)	(234.0)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Net income / (loss)		(0.1)	(2.4)	1.6	(5.2)
Reclassification out of Accumulated Other Comprehensive Income [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Net income / (loss)		0.7	(1.7)	0.9	(2.3)
Gains / (losses) on available-for-sale securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other income		0.0	0.0	0.0	(0.1)
AOCI reclassed to Retained Earnings before tax		0.0	0.0	(1.6)	0.0
Tax expense		0.0	0.0	0.6	0.0
Net income / (loss)		0.0	0.0	(1.0)	(0.1)
Gains / (losses) on available-for-sale securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other income		0.0	0.0	0.0	(0.1)
AOCI reclassed to Retained Earnings before tax		0.0	0.0	(1.7)	0.0
Tax expense		0.0	0.0	0.6	0.0
Net income / (loss)		0.0	0.0	(1.1)	(0.1)
Gains / (losses) on cash flow hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Tax expense		0.1	0.1	0.3	0.3
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax		0.0	(3.5)	4.3	(8.5)
Discontinued Operation, Tax Effect of Discontinued Operation		0.0	1.2	(1.5)	3.0
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax		0.0	(2.3)	2.8	(5.5)
Net income / (loss)		(0.2)	(0.1)	(0.6)	(0.5)
Interest expense		(0.3)	(0.2)	(0.9)	(0.8)
Gains / (losses) on cash flow hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Tax expense		0.1	0.1	0.6	0.3
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax		0.0	(3.5)	0.0	(8.5)
Discontinued Operation, Tax Effect of Discontinued Operation		0.0	1.3	0.0	3.0
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax		0.0	(2.2)	0.0	(5.5)
Net income / (loss)		(0.2)	(0.2)	(0.5)	(0.5)
Interest expense		(0.3)	(0.3)	(1.1)	(0.8)
Amortization of defined benefit pension items [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Tax expense		(0.1)	0.0	(0.1)	(0.5)
Net income / (loss)		0.1	0.0	0.4	0.9
Operating Expenses		0.2	0.0	0.5	1.4
Amortization of defined benefit pension items [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Tax expense		(0.2)	(0.4)	(0.7)	(2.1)
Net income / (loss)		0.9	0.7	2.5	3.8
Operating Expenses		$ 1.1	$ 1.1	$ 3.2	$ 5.9

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Supplemental Financial Information (Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Jan. 01, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	$ 0.8			$ 0.8
Other comprehensive income before reclassifications				0.4
Amounts reclassified from AOCI to earnings				2.6
AOCI reclassed to Retained Earnings, net of tax	1.0	$ 0.0	$ 0.0	(1.0)	$ 0.0
Other comprehensive income / (loss)		0.0	(0.9)	2.0	5.8
Balance, end of period		2.8		2.8
THE DAYTON POWER AND LIGHT COMPANY [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	(36.2)			(36.2)
Other comprehensive income before reclassifications				0.5
Amounts reclassified from AOCI to earnings				2.0
AOCI reclassed to Retained Earnings, net of tax	1.1	0.0	0.0	(1.1)	0.0
Other comprehensive income / (loss)		0.7	$ (0.2)	1.4	$ 8.6
Balance, end of period		(34.8)		(34.8)
Gains / (losses) on available-for-sale securities [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	1.0			1.0
Other comprehensive income before reclassifications				0.0
Amounts reclassified from AOCI to earnings				0.0
AOCI reclassed to Retained Earnings, net of tax				(1.0)
Other comprehensive income / (loss)				(1.0)
Balance, end of period		0.0		0.0
Gains / (losses) on available-for-sale securities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	1.1			1.1
Other comprehensive income before reclassifications				0.0
Amounts reclassified from AOCI to earnings				0.0
AOCI reclassed to Retained Earnings, net of tax				(1.1)
Other comprehensive income / (loss)				(1.1)
Balance, end of period		0.0		0.0
Gains / (losses) on cash flow hedges [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	14.7			14.7
Other comprehensive income before reclassifications				0.4
Amounts reclassified from AOCI to earnings				2.2
AOCI reclassed to Retained Earnings, net of tax				0.0
Other comprehensive income / (loss)				2.6
Balance, end of period		17.3		17.3
Gains / (losses) on cash flow hedges [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	1.4			1.4
Other comprehensive income before reclassifications				0.5
Amounts reclassified from AOCI to earnings				(0.5)
AOCI reclassed to Retained Earnings, net of tax				0.0
Other comprehensive income / (loss)				0.0
Balance, end of period		1.4		1.4
Change in unfunded pension obligation [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	(14.9)			(14.9)
Other comprehensive income before reclassifications				0.0
Amounts reclassified from AOCI to earnings				0.4
AOCI reclassed to Retained Earnings, net of tax				0.0
Other comprehensive income / (loss)				0.4
Balance, end of period		(14.5)		(14.5)
Change in unfunded pension obligation [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Balance, beginning of period	$ (38.7)			(38.7)
Other comprehensive income before reclassifications				0.0
Amounts reclassified from AOCI to earnings				2.5
AOCI reclassed to Retained Earnings, net of tax				0.0
Other comprehensive income / (loss)				2.5
Balance, end of period		$ (36.2)		$ (36.2)

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Regulatory Matters (Details) - USD ($) $ in Millions			9 Months Ended	12 Months Ended
	Oct. 01, 2018	Jan. 01, 2018	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Regulatory Assets, Noncurrent			$ 150.6			$ 163.2
Unbilled Revenue			11.0			18.0
One-time Decoupling Rider Revenue Requirement			3.7
Period for refund of eligible excess ADIT and any related regulatory liability as required by PUCO		10 years
Due from PJM transmission settlement			$ 21.7			0.0
Recovery percentage of transmission charges and credits in DP&L's nonbypassable TCRR			100.00%
Subsidiaries [Member]
Regulatory Assets, Noncurrent			$ 150.6			163.2
Unbilled Revenue			11.0			18.0
One-time Decoupling Rider Revenue Requirement			3.7
Period for refund of eligible excess ADIT and any related regulatory liability as required by PUCO		10 years
Due from PJM transmission settlement			$ 21.7			$ 0.0
Recovery percentage of transmission charges and credits in DP&L's nonbypassable TCRR			100.00%
Subsequent Event [Member]
DRO revenue requirement	$ 248.0
DRO Vegetation Management Cost Deferral Cap				$ 4.6	$ 4.6
TCJA Yearly Refund to Customers Per DRO	4.0
DRO Vegetation Management Cost Baseline				15.7	10.7
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 29.8
Public Utilities, Approved Return on Equity, Percentage	9.999%
Public Utilities, Approved Debt Capital Structure, Percentage	4.80%
Distribution Investment Rider	$ 12.2
Proposed annual reduction in transmission rates to reflect effects of TCJA					2.4
Subsequent Event [Member] | Subsidiaries [Member]
DRO revenue requirement	248.0
DRO Vegetation Management Cost Deferral Cap				4.6	4.6
TCJA Yearly Refund to Customers Per DRO	4.0
DRO Vegetation Management Cost Baseline				$ 15.7
Public Utilities, Approved Rate Increase (Decrease), Amount	$ 29.8
Public Utilities, Approved Return on Equity, Percentage	9.999%
Public Utilities, Approved Debt Capital Structure, Percentage	4.80%
Distribution Investment Rider	$ 12.2
Proposed annual reduction in transmission rates to reflect effects of TCJA					$ 2.4
Long-term [Member]
Due from PJM transmission settlement			$ 40.4
Long-term [Member] | Subsidiaries [Member]
Due from PJM transmission settlement			40.4
Short-term [Member]
Due from PJM transmission settlement			24.1
Short-term [Member] | Subsidiaries [Member]
Due from PJM transmission settlement			24.1
Vegetation Management [Member]
Regulatory Assets, Noncurrent			3.8
Vegetation Management [Member] | Subsidiaries [Member]
Regulatory Assets, Noncurrent			3.8
Distribution Investment Rider [Member]
Unbilled Revenue			0.4
Distribution Investment Rider [Member] | Subsidiaries [Member]
Unbilled Revenue			0.4
PJM transmission enhancement settlement repayment amount [Member]
PJM transmission enhancement repayment amount			$ 4.8

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Property, Plant and Equipment (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($) generating_facility power_plant	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Property, Plant and Equipment [Line Items]
Proceeds from Sale of Property, Plant, and Equipment	$ 10.6	$ 0.0
Asset Retirement Obligations, Noncurrent	13.5	132.5	$ 15.1	$ 138.8
Asset Retirement Obligation, Revision of Estimate	1.6
Asset Retirement Obligation, Accretion Expense	0.2
Asset Retirement Obligation, Liabilities Settled	(3.4)
Asset Retirement Obligation, Held for Sale	(117.2)		(116.6)
Gain (Loss) on Sale of Assets and Asset Impairment Charges	0.6	(15.9)
Subsidiaries [Member]
Property, Plant and Equipment [Line Items]
Proceeds from Sale of Property, Plant, and Equipment	$ 10.6	0.0
Number Of Coal Fired Power Plants | power_plant	1
Asset Retirement Obligation	$ 4.7	131.0	$ 8.0	$ 135.2
Asset Retirement Obligation, Revision of Estimate	$ 0.1
Number Of Generating Facilities | generating_facility	1
Asset Retirement Obligation, Liabilities Settled	$ (3.4)
Gain (Loss) on Sale of Assets and Asset Impairment Charges	$ 0.0	$ (15.9)

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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

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Fair Value (Fair Value and Cost of Non-Derivative Instruments) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2018
Unrealized Gains and Immaterial Unrealized Losses in AOCI, Before Tax	$ 1.6
THE DAYTON POWER AND LIGHT COMPANY [Member]
Unrealized Gains and Immaterial Unrealized Losses in AOCI, Before Tax	1.7
Cost [Member]
Total Assets	7.3	$ 7.1
Cost [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Assets	7.3	7.1
Fair Value [Member]
Total Master Trust Assets, Fair Value	9.1	8.7
Total Assets	9.1	8.7
Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	9.1	8.7
Total Assets	9.1	8.7
Money Market Funds [Member] | Cost [Member]
Total Master Trust Assets, Cost	0.3	0.3
Money Market Funds [Member] | Cost [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Cost	0.3	0.3
Money Market Funds [Member] | Fair Value [Member]
Total Master Trust Assets, Fair Value	0.3	0.3
Money Market Funds [Member] | Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.3	0.3
Equity Securities [Member] | Cost [Member]
Total Master Trust Assets, Cost	2.5	2.4
Equity Securities [Member] | Cost [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Cost	2.5	2.4
Equity Securities [Member] | Fair Value [Member]
Total Master Trust Assets, Fair Value	4.2	4.1
Equity Securities [Member] | Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	4.2	4.1
Debt Securities [Member] | Cost [Member]
Total Master Trust Assets, Cost	4.3	4.1
Debt Securities [Member] | Cost [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Cost	4.3	4.1
Debt Securities [Member] | Fair Value [Member]
Total Master Trust Assets, Fair Value	4.3	4.0
Debt Securities [Member] | Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	4.3	4.0
Hedge Funds [Member] | Cost [Member]
Total Master Trust Assets, Cost	0.1	0.2
Hedge Funds [Member] | Cost [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Cost	0.1	0.2
Hedge Funds [Member] | Fair Value [Member]
Total Master Trust Assets, Fair Value	0.2	0.2
Hedge Funds [Member] | Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.2	0.2
Tangible Assets [Member] | Cost [Member]
Total Master Trust Assets, Cost	0.1	0.1
Tangible Assets [Member] | Cost [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Cost	0.1	0.1
Tangible Assets [Member] | Fair Value [Member]
Total Master Trust Assets, Fair Value	0.1	0.1
Tangible Assets [Member] | Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.1	0.1
Debt [Member] | Cost [Member]
Debt, Cost	1,704.8	1,476.0
Debt [Member] | Cost [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt, Cost	646.6	586.7
Debt [Member] | Fair Value [Member]
Debt, Fair Value	1,819.3	1,560.1
Debt [Member] | Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt, Fair Value	$ 658.4	$ 594.9

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Fair Value (Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Level 1 [Member]
Total Master Trust Assets, Fair Value	$ 0.3	$ 0.3
Total Derivative Assets	0.0	0.0
Total Assets	0.3	0.3
Total Liabilities	0.0	0.0
Level 1 [Member] | Interest Rate Contract [Member]
Total Derivative Assets	0.0	0.0
Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.3	0.3
Total Derivative Assets	0.0	0.0
Total Assets	0.3	0.3
Total Liabilities	0.0	0.0
Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Interest Rate Contract [Member]
Total Derivative Assets	0.0	0.0
Level 2 [Member]
Total Master Trust Assets, Fair Value	8.4	8.8
Total Derivative Assets	2.2	1.8
Total Assets	10.6	10.6
Total Liabilities	1,542.4	1,801.5
Level 2 [Member] | Interest Rate Contract [Member]
Total Derivative Assets	2.2	1.8
Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	8.4	8.8
Total Derivative Assets	2.2	1.8
Total Assets	10.6	10.6
Total Liabilities	577.2	640.6
Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Interest Rate Contract [Member]
Total Derivative Assets	2.2	1.8
Level 3 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Total Derivative Assets	0.0	0.0
Total Assets	0.0	0.0
Total Liabilities	17.7	17.8
Level 3 [Member] | Interest Rate Contract [Member]
Total Derivative Assets	0.0	0.0
Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Total Derivative Assets	0.0	0.0
Total Assets	0.0	0.0
Total Liabilities	17.7	17.8
Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Interest Rate Contract [Member]
Total Derivative Assets	0.0	0.0
Fair Value [Member]
Total Master Trust Assets, Fair Value	8.7	9.1
Total Derivative Assets	2.2	1.8
Total Assets	10.9	10.9
Total Liabilities	1,560.1	1,819.3
Fair Value [Member] | Interest Rate Contract [Member]
Total Derivative Assets	2.2	1.8
Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	8.7	9.1
Total Derivative Assets	2.2	1.8
Total Assets	10.9	10.9
Total Liabilities	594.9	658.4
Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Interest Rate Contract [Member]
Total Derivative Assets	2.2	1.8
Money Market Funds [Member] | Level 1 [Member]
Total Master Trust Assets, Fair Value	0.3	0.3
Money Market Funds [Member] | Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.3	0.3
Money Market Funds [Member] | Level 2 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Money Market Funds [Member] | Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Money Market Funds [Member] | Level 3 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Money Market Funds [Member] | Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Money Market Funds [Member] | Fair Value [Member]
Total Master Trust Assets, Fair Value	0.3	0.3
Money Market Funds [Member] | Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.3	0.3
Equity Securities [Member] | Level 1 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Equity Securities [Member] | Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Equity Securities [Member] | Level 2 [Member]
Total Master Trust Assets, Fair Value	4.1	4.2
Equity Securities [Member] | Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	4.1	4.2
Equity Securities [Member] | Level 3 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Equity Securities [Member] | Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Equity Securities [Member] | Fair Value [Member]
Total Master Trust Assets, Fair Value	4.1	4.2
Equity Securities [Member] | Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	4.1	4.2
Debt Securities [Member] | Level 1 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Debt Securities [Member] | Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Debt Securities [Member] | Level 2 [Member]
Total Master Trust Assets, Fair Value	4.0	4.3
Debt Securities [Member] | Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	4.0	4.3
Debt Securities [Member] | Level 3 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Debt Securities [Member] | Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Debt Securities [Member] | Fair Value [Member]
Total Master Trust Assets, Fair Value	4.0	4.3
Debt Securities [Member] | Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	4.0	4.3
Hedge Funds [Member] | Level 1 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Hedge Funds [Member] | Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Hedge Funds [Member] | Level 2 [Member]
Total Master Trust Assets, Fair Value	0.2	0.2
Hedge Funds [Member] | Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.2	0.2
Hedge Funds [Member] | Level 3 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Hedge Funds [Member] | Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Hedge Funds [Member] | Fair Value [Member]
Total Master Trust Assets, Fair Value	0.2	0.2
Hedge Funds [Member] | Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.2	0.2
Tangible Assets [Member] | Level 1 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Tangible Assets [Member] | Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Tangible Assets [Member] | Level 2 [Member]
Total Master Trust Assets, Fair Value	0.1	0.1
Tangible Assets [Member] | Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.1	0.1
Tangible Assets [Member] | Level 3 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Tangible Assets [Member] | Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Tangible Assets [Member] | Fair Value [Member]
Total Master Trust Assets, Fair Value	0.1	0.1
Tangible Assets [Member] | Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.1	0.1
Debt [Member] | Level 1 [Member]
Debt	0.0	0.0
Debt [Member] | Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt	0.0	0.0
Debt [Member] | Level 2 [Member]
Debt	1,542.4	1,801.5
Debt [Member] | Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt	577.2	640.6
Debt [Member] | Level 3 [Member]
Debt	17.7	17.8
Debt [Member] | Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt	17.7	17.8
Debt [Member] | Fair Value [Member]
Debt	1,560.1	1,819.3
Debt [Member] | Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt	$ 594.9	$ 658.4

XML

Fair Value Fair Value Measurements (Fair Value of Assets and Liabilities Measured on a Non-recurring Basis) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property, Plant and Equipment, Net	$ 1,320.7		$ 1,319.8
Impairment of Long-Lived Assets Held-for-use	2.8	$ 66.4
Asset Retirement Obligations, Noncurrent	13.5	132.5	15.1	$ 138.8
THE DAYTON POWER AND LIGHT COMPANY [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset Retirement Obligation	4.7	131.0	8.0	$ 135.2
Property, Plant and Equipment, Net	1,303.3		$ 1,301.4
Impairment of Long-Lived Assets Held-for-use	0.0	66.3
Ash ponds, asbestos, river structures and underground storage tanks [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Increase (Decrease) in Asset Retirement Obligations
Ash ponds, asbestos, river structures and underground storage tanks [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Increase (Decrease) in Asset Retirement Obligations	$ (3.3)	$ (4.2)

XML

Derivative Instruments and Hedging Activities (Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($) Number_of_interest_rate_swaps	Mar. 29, 2018 USD ($)	Dec. 31, 2017 USD ($)
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]
Debt Instrument, Number of Financial Covenants | Number_of_interest_rate_swaps	2
Long-term Debt, Gross	$ 594.9
Sale of Derivative Instruments Interest Rate Swap		$ 60.0
Gain on sale of Derivative Instruments Interest Rate Swap	0.8
One Point One Three To One Point One Seven Bonds Maturing In August Two Thousand Twenty [Member]
Long-term Debt, Gross	140.0
One Point One Three To One Point One Seven Bonds Maturing In August Two Thousand Twenty [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Long-term Debt, Gross	140.0
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivative, Notional Amount, Purchase (Sales), Net	140.0		$ 200.0
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Derivative, Notional Amount, Purchase (Sales), Net	$ 140.0		$ 200.0

XML

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

XML

Derivative Instruments and Hedging Activities (Gains or Losses Recognized in AOCI for the Cash Flow Hedges) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Forward Contract Power [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Beginning accumulated derivative gain / (loss) in AOCI	$ 0.0	$ 3.0	$ (2.8)	$ (4.3)
Net gains / (losses) associated with current period hedging transactions	0.0	1.3	0.0	11.9
Ending accumulated derivative gain / (loss) in AOCI	0.0	2.1	0.0	2.1
Portion expected to be reclassified to earnings in the next twelve months
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months)
Interest Rate Contract [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Beginning accumulated derivative gain / (loss) in AOCI	17.4	17.2	$ 17.5	17.4
Net gains / (losses) associated with current period hedging transactions	0.1	0.1	0.4	0.2
Ending accumulated derivative gain / (loss) in AOCI	17.3	17.1	17.3	17.1
Portion expected to be reclassified to earnings in the next twelve months	(0.8)		$ (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 months
THE DAYTON POWER AND LIGHT COMPANY [Member] | Forward Contract Power [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Beginning accumulated derivative gain / (loss) in AOCI		3.0		(4.3)
Net gains / (losses) associated with current period hedging transactions		1.3		11.9
Ending accumulated derivative gain / (loss) in AOCI		2.1		2.1
THE DAYTON POWER AND LIGHT COMPANY [Member] | Interest Rate Contract [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Beginning accumulated derivative gain / (loss) in AOCI	1.6	1.4	$ 1.4	1.6
Net gains / (losses) associated with current period hedging transactions	0.0	0.1	0.5	0.2
Ending accumulated derivative gain / (loss) in AOCI	1.4	1.3	1.4	1.3
Portion expected to be reclassified to earnings in the next twelve months	(0.8)		$ (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 months
Interest Expense [Member] | Forward Contract Power [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Net gains losses reclassified to earnings	0.0	0.0	$ 0.0	0.0
Interest Expense [Member] | Interest Rate Contract [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Net gains losses reclassified to earnings	(0.2)	(0.2)	(0.6)	(0.5)
Interest Expense [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Forward Contract Power [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Net gains losses reclassified to earnings		0.0		0.0
Interest Expense [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Interest Rate Contract [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Net gains losses reclassified to earnings	(0.2)	(0.2)	(0.5)	(0.5)
Sales [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Forward Contract Power [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Net gains losses reclassified to earnings		(2.2)
Sales [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Interest Rate Contract [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Net gains losses reclassified to earnings	0.0	0.0
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | Forward Contract Power [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Net gains losses reclassified to earnings	0.0	(2.2)	2.8	(5.5)
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | Interest Rate Contract [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Net gains losses reclassified to earnings	$ 0.0	$ 0.0	0.0	0.0
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Forward Contract Power [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Net gains losses reclassified to earnings				(5.5)
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Interest Rate Contract [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Net gains losses reclassified to earnings			$ 0.0	$ 0.0

XML

Derivative Instruments and Hedging Activities (Fair Value and Balance Sheet Location (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Total Assets [Member]
Derivative Asset, Fair Value	$ 2.2	$ 1.8
Derivative, Collateral, Obligation to Return Securities	0.0	0.0
Derivative, Collateral, Obligation to Return Cash	0.0	0.0
Derivative Asset, Fair Value, Amount Offset Against Collateral	2.2	1.8
Total Assets [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Derivative Asset, Fair Value	2.2	1.8
Derivative, Collateral, Obligation to Return Securities	0.0	0.0
Derivative, Collateral, Obligation to Return Cash	0.0	0.0
Derivative Asset, Fair Value, Amount Offset Against Collateral	2.2	1.8
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Short-term Derivative Positions [Member] | Other Prepayments and Current Assets [Member]
Derivative Asset, Fair Value	0.9
Derivative, Collateral, Obligation to Return Securities	0.0
Derivative, Collateral, Obligation to Return Cash	0.0
Derivative Asset, Fair Value, Amount Offset Against Collateral	0.9
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Short-term Derivative Positions [Member] | Other Prepayments and Current Assets [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Derivative Asset, Fair Value	0.9
Derivative, Collateral, Obligation to Return Securities	0.0
Derivative, Collateral, Obligation to Return Cash	0.0
Derivative Asset, Fair Value, Amount Offset Against Collateral	0.9
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Long-term Derivative Positions [Member] | Other Deferred Asset [Member]
Derivative Asset, Fair Value	1.3	1.8
Derivative, Collateral, Obligation to Return Securities	0.0	0.0
Derivative, Collateral, Obligation to Return Cash	0.0	0.0
Derivative Asset, Fair Value, Amount Offset Against Collateral	1.3	1.8
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Long-term Derivative Positions [Member] | Other Deferred Asset [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Derivative Asset, Fair Value	1.3	1.8
Derivative, Collateral, Obligation to Return Securities		0.0
Derivative, Collateral, Obligation to Return Cash		0.0
Derivative Asset, Fair Value, Amount Offset Against Collateral	$ 1.3	$ 1.8

XML

Debt (Narrative) (Details) $ in Millions		6 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2018 USD ($) fiscal_quarter debt_covenant	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018	Jul. 03, 2018	Sep. 30, 2018 USD ($) fiscal_quarter debt_covenant	Sep. 30, 2017 USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2018 USD ($) fiscal_quarter debt_covenant	Apr. 30, 2018 USD ($)	Mar. 30, 2018 USD ($)	Jan. 03, 2018	Dec. 31, 2017 USD ($)	Aug. 03, 2015 USD ($)
Debt Instrument [Line Items]
Long-term Line of Credit	$ 0.0					$ 0.0					$ 0.0
Retirement of long-term debt						$ 239.4	$ 122.1
Debt to EBITDA Ratio	5.34
Long Term Indebtedness, Less than or Equal to							750.0				$ 750.0
Debt Covenant, Leverage Ratio, Maximum						0.67
Debt Covenant, Interest Coverage Ratio, Minimum						2.50
Leverage Ratio						1.51
Debt Covenant, Total Debt to Total Capitalization Ratio, Maximum						0.65					0.75
Interest Coverage Ratio	2.76
THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Line of Credit	$ 0.0					$ 0.0					$ 0.0				$ 10.0
Long-term Debt, Gross	594.9					594.9					594.9
Retirement of long-term debt						$ 63.3	103.3
Long Term Indebtedness, Less than or Equal to							$ 750.0				$ 750.0
Debt Covenant, Interest Coverage Ratio, Minimum						2.50
Debt Covenant, Total Debt to Total Capitalization Ratio, Maximum						0.65					0.75
Senior unsecured due in October 2019 - 6.75% [Member]
Debt Instrument [Line Items]
Extinguishment of Debt, Amount						$ 101.0
Long-term Debt, Gross	$ 99.0					$ 99.0					$ 99.0		$ 200.0		200.0
Make Whole Premium												$ 5.1
Debt instrument interest percentage	6.75%					6.75%					6.75%
Variable Rate Notes Backed by Term Loan and First Mortgage Bonds [Member]
Debt Instrument [Line Items]
Extinguishment of Debt, Amount						$ 60.0
Variable Rate Notes Backed by Term Loan and First Mortgage Bonds [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Extinguishment of Debt, Amount						60.0
Long-term Debt, Gross	$ 140.0					140.0					$ 140.0				200.0
Debt Instrument, Face Amount																$ 200.0
Bank term loan due in July 2020 - rates from: 2.44% - 2.45% [Member]
Debt Instrument [Line Items]
Extinguishment of Debt, Amount						70.0
Long-term Debt, Gross															70.0
Term Loan Maturing 2022 [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	437.2					437.2					437.2				440.6
Early prepayment rate					101.00%
Term Loan Maturing 2022 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 437.2					$ 437.2					$ 437.2				$ 440.6
Early prepayment rate					101.00%
Revolving Credit Agreement and Standby Letters of Credit [Member]
Debt Instrument [Line Items]
Number of financial covenants | debt_covenant	2					2					2
Revolving Credit Agreement and Standby Letters of Credit [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Number of financial covenants | debt_covenant	2					2					2
Number of prior quarters included in EBITDA to interest calculation | fiscal_quarter	4					4					4
Debt Covenant, Interest Coverage Ratio, Minimum						2.50
Interest Coverage Ratio	7.35
DPL Revolving Credit Agreement and Term Loan Maturing July 2020 [Member]
Debt Instrument [Line Items]
Number of financial covenants | debt_covenant	2					2					2
Number of prior quarters included in EBITDA to interest calculation | fiscal_quarter	4					4					4
Number of prior quarters included in debt to EBITDA ratio | fiscal_quarter	4					4					4
Base Rate Term Loan B [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage														1.00%	2.25%
Base Rate Term Loan B [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage														1.00%	2.25%
Eurodollar rate Term Loan B [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage														2.00%	3.25%
Eurodollar rate Term Loan B [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage														2.00%	3.25%
Subsequent Event [Member]
Debt Instrument [Line Items]
Debt Covenant, Debt to EBITDA Ratio, Maximum		6.75	7.00					6.50		7.25
Debt Covenant, Interest Coverage Ratio, Minimum									2.25	2.10
Subsequent Event [Member] | Term Loan Maturing 2022 [Member]
Debt Instrument [Line Items]
Standard Repayment Rate				100.00%
Subsequent Event [Member] | Term Loan Maturing 2022 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Standard Repayment Rate				100.00%

XML

Debt (Long-term Debt) (Details) - USD ($) $ in Millions	6 Months Ended		9 Months Ended
	Dec. 31, 2018	Jul. 03, 2018	Sep. 30, 2018	Mar. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Unamortized deferred finance costs			$ (6.7)		$ (9.8)
Unamortized deferred finance costs			(4.8)		(6.9)
Unamortized long-term debt discounts and premiums, net			(0.5)		(0.5)
Total long-term debt at subsidiary			586.7		646.6
Total long-term debt			1,476.0		1,704.8
Less: current portion			(4.6)		(4.6)
Long-term debt			$ 1,471.4		1,700.2
Long-term debt, earliest maturities			2019
Long-term debt, latest maturities			2061
THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross			$ 594.9
Unamortized deferred finance costs			(6.7)		(9.8)
Unamortized long-term debt discounts and premiums, net			(1.5)		(2.0)
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			$ 582.1		642.0
Long-term debt, earliest maturities			2020
Long-term debt, latest maturities			2061
Term Loan Maturing 2022 [Domain]
Debt Instrument [Line Items]
Debt instrument maturity year			Aug. 24, 2022
Term Loan Maturing 2022 [Domain] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Debt instrument maturity year			Aug. 24, 2022
Term Loan Maturing 2022 [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross			$ 437.2		440.6
Early prepayment rate		101.00%
Term Loan Maturing 2022 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross			$ 437.2		440.6
Early prepayment rate		101.00%
Pollution Control Series Maturing in August 2020 - 1.13% - 1.14% [Member]
Debt Instrument [Line Items]
Debt instrument maturity year			Aug. 01, 2020
Pollution Control Series Maturing in August 2020 - 1.13% - 1.14% [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross			$ 140.0		200.0
Debt instrument maturity year			Aug. 01, 2020
U.S. Government note maturing in February 2061 - 4.20% [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross			$ 17.7		17.8
Debt instrument maturity year			Feb. 01, 2061
Debt instrument interest percentage			4.20%
U.S. Government note maturing in February 2061 - 4.20% [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross			$ 17.7		17.8
Debt instrument maturity year			Feb. 01, 2061
Debt instrument interest percentage			4.20%
Bank term loan due in July 2020 - rates from: 2.44% - 2.45% [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross					70.0
Debt instrument maturity year			Jul. 31, 2020
Senior unsecured due in October 2019 - 6.75% [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross			$ 99.0	$ 200.0	200.0
Debt instrument maturity year			Oct. 01, 2019
Debt instrument interest percentage			6.75%
Senior unsecured due in October 2021 - 7.25% [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross			$ 780.0		780.0
Debt instrument maturity year			Oct. 01, 2021
Debt instrument interest percentage			7.25%
Note to DPL Capital Trust II Maturing in September 2031 - 8.125% [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross			$ 15.6		$ 15.6
Debt instrument maturity year			Sep. 01, 2031
Debt instrument interest percentage			8.125%
Subsequent Event [Member] | Term Loan Maturing 2022 [Member]
Debt Instrument [Line Items]
Standard Repayment Rate	100.00%
Subsequent Event [Member] | Term Loan Maturing 2022 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Standard Repayment Rate	100.00%
Maximum [Member] | Term Loan Maturing 2022 [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage			4.82%
Debt Instrument, Interest Rate, Effective Percentage					4.60%
Maximum [Member] | Term Loan Maturing 2022 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage			4.82%
Debt Instrument, Interest Rate, Effective Percentage					4.60%
Maximum [Member] | Pollution Control Series Maturing in August 2020 - 1.13% - 1.14% [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage					1.92%
Maximum [Member] | Zero Point Two Three To Zero Point Two Nine And Zero Point One Six To Zero Point Three Six Percentage Of Bonds Maturing In November Two Thousand Forty [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage			2.722%
Maximum [Member] | Zero Point Two Three To Zero Point Two Nine And Zero Point One Six To Zero Point Three Six Percentage Of Bonds Maturing In November Two Thousand Forty [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage			2.72%		1.92%
Maximum [Member] | Bank term loan due in July 2020 - rates from: 2.44% - 2.45% [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage			3.898%		4.10%
Minimum [Member] | Term Loan Maturing 2022 [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage					4.01%
Debt Instrument, Interest Rate, Effective Percentage			3.57%
Minimum [Member] | Term Loan Maturing 2022 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage					4.01%
Debt Instrument, Interest Rate, Effective Percentage			3.57%
Minimum [Member] | Pollution Control Series Maturing in August 2020 - 1.13% - 1.14% [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage					1.52%
Minimum [Member] | Zero Point Two Three To Zero Point Two Nine And Zero Point One Six To Zero Point Three Six Percentage Of Bonds Maturing In November Two Thousand Forty [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage			2.498%
Minimum [Member] | Zero Point Two Three To Zero Point Two Nine And Zero Point One Six To Zero Point Three Six Percentage Of Bonds Maturing In November Two Thousand Forty [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage			2.50%		1.52%
Minimum [Member] | Bank term loan due in July 2020 - rates from: 2.44% - 2.45% [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage			3.817%		3.02%

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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
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%

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Benefit Plans (Net Periodic Benefit Cost (Income)) (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
Pension [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment				$ (4.1)
Contributions by employer			$ 7.8	5.0
Service cost	$ 1.5	$ 1.5	4.5	4.3
Interest cost	3.4	3.5	10.3	10.6
Expected return on assets	(5.3)	(5.7)	(15.9)	(17.1)
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment	0.0	0.0	0.0	4.1
Prior service cost	0.3	0.2	0.8	0.8
Actuarial loss / (gain)	1.6	1.3	4.8	4.0
Net periodic benefit cost	1.5	0.8	4.5	6.7
Postretirement [Member]
Defined Benefit Plan, Funded (Unfunded) Status of Plan	12.8		12.8		$ 12.7
THE DAYTON POWER AND LIGHT COMPANY [Member] | Pension [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment				(5.6)
Contributions by employer			7.8	5.0
Service cost	1.5	1.5	4.5	4.3
Interest cost	3.4	3.5	10.3	10.6
Expected return on assets	(5.3)	(5.7)	(15.9)	(17.1)
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment	0.0	0.0	0.0	5.6
Prior service cost	0.4	0.3	1.1	1.1
Actuarial loss / (gain)	2.4	2.1	7.1	6.6
Net periodic benefit cost	2.4	$ 1.7	7.1	$ 11.1
THE DAYTON POWER AND LIGHT COMPANY [Member] | Postretirement [Member]
Defined Benefit Plan, Funded (Unfunded) Status of Plan	$ 12.8		$ 12.8		$ 12.7

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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

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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

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Contractual Obligations, Commercial Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Public Utility, Property, Plant and Equipment [Line Items]
Due to third parties, current	$ 0.0	$ 0.9
THE DAYTON POWER AND LIGHT COMPANY [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Debt maturity, earliest	2022
Debt maturity, latest	2040
AES Ohio Generation [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Third party guarantees	$ 23.5
Debt Obligation on 4.9% Equity Ownership [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Equity ownership interest	4.90%
Equity ownership interest aggregate cost	$ 68.8
Electric Generation Company [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Debt obligation	$ 1,404.9
Other OVEC Member [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Equity ownership interest	4.90%
Other OVEC Member [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Equity ownership interest	4.90%

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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

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Business Segments (Segment Financial Information) (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
Segment Reporting Information [Line Items]
Gain (Loss) on Disposition of Business			$ (13.2)	$ 0.0
External customer revenues	$ 207.7	$ 191.7	591.5	561.7
Intersegment revenues	0.0	0.0	0.0	0.0
Total revenues	207.7	191.7	591.5	561.7
Depreciation and amortization	19.7	19.8	58.8	56.9
Fuel Costs	4.6	3.3	12.7	7.6
Depreciation and amortization			62.4	81.8
Impairment of Long-Lived Assets Held-for-use			2.8	66.4
Interest expense	22.6	27.8	74.4	82.7
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	19.8	(2.7)	13.7	(12.8)
Net income / (loss) from continuing operations	16.7	(1.0)	12.2	(7.8)
Discontinued operations, net of tax	4.3	22.9	29.2	(21.5)
Net income/ (loss)	21.0	21.9	41.4	(29.3)
Capital expenditures	25.1	29.2	75.8	95.6
Total assets	1,785.5		1,785.5		$ 2,049.2
Operating Segments [Member] | Utility [Member]
Segment Reporting Information [Line Items]
External customer revenues	198.5	184.0	562.9	541.7
Intersegment revenues	0.2	0.2	0.6	0.8
Total revenues	198.7	184.2	563.5	542.5
Depreciation and amortization	19.1	19.6	56.5	56.3
Interest expense	5.8	7.9	20.5	23.5
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	37.5	20.0	73.9	60.1
Capital expenditures	20.5	20.6	65.0	66.3
Total assets	1,678.4		1,678.4		1,689.4
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
External customer revenues	9.2	7.7	28.6	20.0
Intersegment revenues	0.7	0.9	2.1	3.6
Total revenues	9.9	8.6	30.7	23.6
Depreciation and amortization	0.6	0.2	2.3	0.6
Interest expense	16.8	19.9	53.9	59.2
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	(17.7)	(22.7)	(60.2)	(72.9)
Capital expenditures	4.6	8.6	10.8	29.3
Total assets	510.6		510.6		743.0
Adjustments and Eliminations [Member]
Segment Reporting Information [Line Items]
External customer revenues	0.0	0.0	0.0	0.0
Intersegment revenues	(0.9)	(1.1)	(2.7)	(4.4)
Total revenues	(0.9)	(1.1)	(2.7)	(4.4)
Depreciation and amortization	0.0	0.0	0.0	0.0
Interest expense	0.0	0.0	0.0	0.0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	0.0	0.0	0.0	0.0
Capital expenditures	0.0	0.0	0.0	0.0
Total assets	(403.5)		(403.5)		(383.2)
Subsidiaries [Member]
Segment Reporting Information [Line Items]
Gain (Loss) on Disposition of Business	0.0	0.0	(12.4)	0.0
Depreciation and amortization	19.1	19.6	56.5	56.3
Fuel Costs	0.1	0.0	1.7	0.0
Depreciation and amortization			56.5	68.2
Impairment of Long-Lived Assets Held-for-use			0.0	66.3
Interest expense	5.8	7.9	20.5	23.5
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	37.5	20.0	73.9	60.1
Net income / (loss) from continuing operations	31.2	20.9	61.9	49.2
Discontinued operations, net of tax	0.0	8.4	0.0	(45.6)
Net income/ (loss)	31.2	29.3	61.9	3.6
Total assets	$ 1,678.4		$ 1,678.4		$ 1,689.4
Subsidiaries [Member] | Generation [Member]
Segment Reporting Information [Line Items]
Discontinued operations, net of tax		$ 8.4		$ (45.6)

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Revenue (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
Revenue from Contract with Customer, Excluding Assessed Tax	$ 195.1		$ 560.1
RTO Revenue	10.7		32.5
RTO Capacity Revenue	3.7		10.5
Revenues	207.7	$ 191.7	591.5	$ 561.7
Contract with Customer, Asset, Gross	65.4		65.4		$ 63.0
Corporate, Non-Segment [Member]
RTO Revenue	(0.1)		0.1
RTO Capacity Revenue	1.7		4.7
Revenues	9.9		30.7
Adjustments and Eliminations [Member]
RTO Revenue	0.0		0.0
RTO Capacity Revenue	0.0		0.0
Revenues	(0.9)		(2.7)
Utility [Member]
RTO Revenue	10.8		32.4
RTO Capacity Revenue	2.0		5.8
Revenues	198.7		563.5
Subsidiaries [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	186.1		532.1
Alternative Revenue Programs Accounts Receivable, Gross	6.0		6.0
RTO Revenue	10.8		32.4
RTO Capacity Revenue	2.0		5.8
Revenues	198.7	$ 184.2	563.5	$ 542.5
Contract with Customer, Asset, Gross	64.0		64.0		$ 62.1
Other Revenues [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	2.2		7.3
Other non-606 revenue	0.0		0.0
Other Revenues [Member] | Corporate, Non-Segment [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	2.2		7.3
Other non-606 revenue	0.5		1.9
Other Revenues [Member] | Adjustments and Eliminations [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0		0.0
Other non-606 revenue	(0.5)		(1.9)
Other Revenues [Member] | Utility [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0		0.0
Other non-606 revenue	0.0		0.0
Wholesale Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	10.5		41.3
Wholesale Revenue [Member] | Corporate, Non-Segment [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	5.6		16.7
Wholesale Revenue [Member] | Adjustments and Eliminations [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0		0.0
Wholesale Revenue [Member] | Utility [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	4.9		24.6
Wholesale Revenue [Member] | Subsidiaries [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	4.9		24.6
Retail Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	168.0		468.5
Other non-606 revenue	12.6		31.4
Retail Revenue [Member] | Corporate, Non-Segment [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0		0.0
Other non-606 revenue	0.0		0.0
Retail Revenue [Member] | Adjustments and Eliminations [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	(0.4)		(0.8)
Other non-606 revenue	0.0		0.0
Retail Revenue [Member] | Utility [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	168.4		469.3
Other non-606 revenue	12.6		31.4
Retail Revenue [Member] | Subsidiaries [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	168.4		469.3
Other non-606 revenue	$ 12.6		$ 31.4

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Dispositions (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (Loss) on Disposition of Business			$ (13.2)	$ 0.0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	$ 19.8	$ (2.7)	13.7	(12.8)
Property, Plant and Equipment, Additions	25.1	29.2	75.8	95.6
Impairment of Long-Lived Assets Held-for-use			2.8	66.4
Beckjord [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest			(11.7)
Property, Plant and Equipment, Additions			14.5
Subsidiaries [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (Loss) on Disposition of Business	0.0	0.0	(12.4)	0.0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	$ 37.5	$ 20.0	73.9	60.1
Impairment of Long-Lived Assets Held-for-use			0.0	$ 66.3
Subsidiaries [Member] | Beckjord [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest			(12.4)
Property, Plant and Equipment, Additions			$ 14.5

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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

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Generation Separation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Interest Expense		$ 0.0		$ 0.2
Long Term Indebtedness, Less than or Equal to				750.0	$ 750.0
Cash Provided by (Used in) Operating Activities, Discontinued Operations	$ (7.2)	27.1	$ 51.9	38.5
Cash Provided by (Used in) Investing Activities, Discontinued Operations	0.0	4.1	233.8	(13.9)
Disposal Group, Including Discontinued Operation, Revenue	15.6	132.1	141.8	384.2
Disposal Group, Including Discontinued Operation, Costs of Goods Sold	(6.8)	(63.3)	(67.4)	(198.5)
Disposal Group, Including Discontinued Operation, Operating and Other Expenses	(3.8)	(38.0)	(37.7)	(152.9)
Disposal Group, Including Discontinued Operation, Fixed-Asset Impairment	0.0	0.0	0.0	(66.4)
Income / (loss) from discontinued operations before income tax	5.0	30.8	36.7	(33.6)
Discontinued Operation, Tax Effect of Discontinued Operation	1.0	7.9	5.9	(12.1)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	4.3	22.9	29.2	$ (21.5)
Debt Percentage of Rate Base				75.00%
Subsidiaries [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Interest Expense		0.0		$ 0.2
Long Term Indebtedness, Less than or Equal to				750.0	750.0
Income / (loss) from discontinued operations before income tax	0.0	21.2	0.0	(56.3)
Discontinued Operation, Tax Effect of Discontinued Operation	0.0	12.8	0.0	(10.7)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	0.0	8.4	0.0	$ (45.6)
Debt Percentage of Rate Base				75.00%
Long-term Debt, Gross	$ 594.9		$ 594.9		$ 594.9
Generation [Member] | Subsidiaries [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash Provided by (Used in) Operating Activities, Discontinued Operations		8.8		$ 16.6
Cash Provided by (Used in) Investing Activities, Discontinued Operations		7.1		(3.5)
Disposal Group, Including Discontinued Operation, Revenue		121.5		358.4
Disposal Group, Including Discontinued Operation, Costs of Goods Sold		(62.0)		(191.6)
Disposal Group, Including Discontinued Operation, Operating and Other Expenses		(38.3)		(156.8)
Disposal Group, Including Discontinued Operation, Fixed-Asset Impairment		0.0		(66.3)
Income / (loss) from discontinued operations before income tax		21.2		(56.3)
Discontinued Operation, Tax Effect of Discontinued Operation		12.8		(10.7)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent		8.4		(45.6)
Utility [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Long-term Debt, Gross		750.0		750.0
Utility [Member] | Subsidiaries [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Long-term Debt, Gross		$ 750.0		$ 750.0

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Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	$ 0.3	$ 0.0	$ (1.6)	$ 0.0
Long Term Indebtedness, Less than or Equal to				750.0	$ 750.0
Disposal Group, Including Discontinued Operation, Revenue	15.6	132.1	141.8	384.2
Disposal Group, Including Discontinued Operation, Restricted Cash	0.0		0.0		0.0	$ 1.5
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net	6.2		6.2		6.2	37.9
Disposal Group, Including Discontinued Operation, Inventory	0.1		0.1		0.1	19.4
Disposal Group, Including Discontinued Operations, Taxes Applicable to Subsequent Years	0.1		0.1		0.1	7.4
Disposal Group, Including Discontinued Operation, Other Assets, Current	3.1		3.1		3.1	17.4
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment	1.8		1.8		1.8	233.9
Disposal Group, Including Discontinued Operation, Intangible Assets	6.2		6.2		6.2	5.5
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent	0.0		0.0		0.0	0.6
Disposal Group, Including Discontinued Operation, Assets	17.5		17.5		17.5	323.6
Disposal Group, Including Discontinued Operation, Accounts Payable	7.7		7.7		7.7	25.1
Disposal Group, Including Discontinued Operation, Accrued Income Tax Payable	5.1		5.1		5.1	6.3
Disposal Group, Including Discontinued Operation, Other Liabilities, Current	7.1		7.1		7.1	30.0
Disposal Group, Including Discontinued Operations, Long-Term Debt	0.0		0.0		0.0	0.3
Disposal Group, Including Discontinued Operation, Deferred Tax Liabilities	(14.1)		(14.1)		(14.1)	(17.4)
Disposal Group, Including Discontinued Operation, Taxes Payable	0.0		0.0		0.0	7.4
Disposal Group, Including Discontinued Operation, Pension Plan Benefit Obligation	9.7		9.7		9.7	10.6
Asset Retirement Obligation, Held for Sale	117.2		117.2		117.2	116.6
Disposal Group, Including Discontinued Operation, Other Liabilities, Noncurrent	5.8		5.8		5.8	5.9
Disposal Group, Including Discontinued Operation, Liabilities	138.5		138.5		138.5	$ 184.8
Disposal Group, Including Discontinued Operation, Costs of Goods Sold	(6.8)	(63.3)	(67.4)	(198.5)
Disposal Group, Including Discontinued Operation, Operating and Other Expenses	(3.8)	(38.0)	(37.7)	$ (152.9)
Debt Percentage of Rate Base				75.00%
Disposal Group, Including Discontinued Operation, Interest Expense		0.0		$ 0.2
Disposal Group, Including Discontinued Operation, Fixed-Asset Impairment	0.0	0.0	0.0	(66.4)
Loss from discontinued operations before income taxes	5.0	30.8	36.7	(33.6)
Income tax expense / (benefit) from discontinued operations	1.0	7.9	5.9	(12.1)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	4.3	22.9	29.2	(21.5)
Cash Provided by (Used in) Operating Activities, Discontinued Operations	(7.2)	27.1	51.9	38.5
Cash flows from investing activities for discontinued operations	0.0	4.1	233.8	(13.9)
Subsidiaries [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Long Term Indebtedness, Less than or Equal to				$ 750.0	750.0
Debt Percentage of Rate Base				75.00%
Long-term Debt, Gross	594.9		594.9		$ 594.9
Disposal Group, Including Discontinued Operation, Interest Expense		0.0		$ 0.2
Loss from discontinued operations before income taxes	0.0	21.2	0.0	(56.3)
Income tax expense / (benefit) from discontinued operations	0.0	12.8	0.0	(10.7)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	$ 0.0	8.4	0.0	(45.6)
Generation [Member] | Subsidiaries [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Revenue		121.5		358.4
Disposal Group, Including Discontinued Operation, Costs of Goods Sold		(62.0)		(191.6)
Disposal Group, Including Discontinued Operation, Operating and Other Expenses		(38.3)		(156.8)
Disposal Group, Including Discontinued Operation, Fixed-Asset Impairment		0.0		(66.3)
Loss from discontinued operations before income taxes		21.2		(56.3)
Income tax expense / (benefit) from discontinued operations		12.8		(10.7)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent		8.4		(45.6)
Cash Provided by (Used in) Operating Activities, Discontinued Operations		8.8		16.6
Cash flows from investing activities for discontinued operations		7.1		(3.5)
Utility [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Long-term Debt, Gross		750.0		750.0
Utility [Member] | Subsidiaries [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Long-term Debt, Gross		$ 750.0		$ 750.0
AES Ohio Generation peakers [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax			$ (1.9)

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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