Property, Plant and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment

Property, Plant and Equipment

The following is a summary of DPL’s Property, plant and equipment with corresponding composite depreciation rates at December 31, 2021 and 2020:

	December 31, 2021			December 31, 2020
$ in millions			Composite Rate			Composite Rate
Regulated:
Transmission	$	306.9	3.1%	$	273.0	3.2%
Distribution	1,547.0		4.0%	1,453.7		4.0%
General	34.1		3.2%	17.7		7.6%
Non-depreciable	71.2		N/A	65.1		N/A
Total regulated	1,959.2			1,809.5
Unregulated:
Other	26.5		4.2%	24.8		4.5%
Non-depreciable	4.7		N/A	5.0		N/A
Total unregulated	31.2			29.8
Total property, plant and equipment in service	$	1,990.4	3.7%	$	1,839.3	3.8%

AROs

We recognized AROs in accordance with GAAP which requires legal obligations associated with the retirement of long-lived assets to be recognized at their fair value at the time those obligations are incurred. Upon initial recognition of a legal liability, costs are capitalized as part of the related long-lived asset and depreciated over the useful life of the related asset. Our legal obligations were associated with the retirement of our long-lived assets, consisting primarily of asbestos abatement and ash disposal facilities. The AROs were for our retired Hutchings Coal Station and related primarily to asbestos removal. These AROs were settled with the sale of the Hutchings Coal Station in December 2020.

Estimating the amount and timing of future expenditures of this type requires significant judgment. Previously, management routinely updated these estimates as additional information became available.

Changes in the Liability for AROs

	2020
Balance as of January 1	$	4.7
Settlements (a)	(4.7)
Balance as of December 31	$	—

(a)    Settlements related to sale of AES Ohio's Hutchings Coal Station. See Note 15 – Dispositions for more information on the sale of the Hutchings Coal Station.

Asset Removal Costs

We continue to record costs of removal for our regulated transmission and distribution assets through our depreciation rates and recover those amounts in rates charged to our customers. There are no known legal AROs associated with these assets. We have recorded $145.2 million and $138.8 million in estimated costs of removal at December 31, 2021 and 2020, respectively, as regulatory liabilities for our transmission and distribution property. These amounts represent the excess of the cumulative removal costs recorded through depreciation rates versus the cumulative removal costs actually incurred. See Note 2 – Regulatory Matters for additional information.

Changes in the Regulatory Liability for Transmission and Distribution Asset Removal Costs

	2021		2020
Balance as of January 1	$	138.8	$	143.6
Additions	17.0		15.6
Settlements	(10.6)		(20.4)
Balance as of December 31	$	145.2	$	138.8

THE DAYTON POWER AND LIGHT COMPANY [Member]

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment

Property, Plant and Equipment

The following is a summary of AES Ohio’s Property, plant and equipment with corresponding composite depreciation rates at December 31, 2021 and 2020:

	December 31, 2021			December 31, 2020
$ in millions			Composite Rate			Composite Rate
Regulated:
Transmission	$	456.5	2.1%	$	425.5	2.1%
Distribution	1,996.6		3.1%	1,917.0		3.1%
General	48.0		2.3%	29.7		3.6%
Non-depreciable	70.2		N/A	65.1		N/A
Total property, plant and equipment in service	$	2,571.3	2.8%	$	2,437.3	2.8%

AROs

We recognized AROs in accordance with GAAP which requires legal obligations associated with the retirement of long-lived assets to be recognized at their fair value at the time those obligations are incurred. Upon initial recognition of a legal liability, costs are capitalized as part of the related long-lived asset and depreciated over the useful life of the related asset. Our legal obligations were associated with the retirement of our long-lived assets, consisting primarily of asbestos abatement and ash disposal facilities. The AES Ohio AROs were for our retired

Hutchings Coal Station and related primarily to asbestos removal. These AROs were settled with the sale of the Hutchings Coal Station in December 2020.

Estimating the amount and timing of future expenditures of this type requires significant judgment. Previously, management routinely updated these estimates as additional information became available.

Changes in the Liability for AROs

	2020
Balance at beginning of year	$	4.7
Settlements (a)	(4.7)
Balance at end of year	$	—

(a)    Primarily includes settlement related to transfer of the Hutchings Coal Station. See Note 13 – Dispositions for additional information.

Asset Removal Costs

We continue to record costs of removal for our regulated transmission and distribution assets through our depreciation rates and recover those amounts in rates charged to our customers. There are no known legal AROs associated with these assets. We have recorded $145.2 million and $138.8 million in estimated costs of removal at December 31, 2021 and 2020, respectively, as regulatory liabilities for our transmission and distribution property. These amounts represent the excess of the cumulative removal costs recorded through depreciation rates versus the cumulative removal costs actually incurred. See Note 2 – Regulatory Matters for additional information.

Changes in the Regulatory Liability for Transmission and Distribution Asset Removal Costs

	2021		2020
Balance at beginning of year	$	138.8	$	143.6
Additions	17.0		15.6
Settlements	(10.6)		(20.4)
Balance at end of year	$	145.2	$	138.8