Income Taxes

6 Months Ended

Jun. 30, 2024

Entity Information [Line Items]

Income Taxes

INCOME TAXES

DPL’s interim provision for income taxes is typically based on the estimated annual effective tax rate, plus discrete items. As of June 30, 2024, DPL has concluded that the estimated annual effective tax rate does not present a reasonable accounting of DPL's tax position based on year-to-date results in income before income tax. As such,

DPL has determined that the actual effective tax rate for the year to date is the best estimate of the annual effective tax rate. DPL will continue to evaluate the reliability of the estimated annual effective tax rate in future periods and will record income tax expense based on the estimated annual effective tax rate in periods where it can be relied on.

The effective combined state and federal income tax rates were as follows:

	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023
Effective tax rate	11.3	%	50.9	%	18.5	%	51.8	%

The year-to-date rate is different from the combined federal and state statutory rate of 22.4% primarily due to the flowthrough of the net tax benefit related to the reversal of excess deferred taxes of AES Ohio as a percentage of pre-tax book income or loss. AES Ohio began amortizing a deferred municipal tax shortage in September 2023, which partially offsets the ongoing amortization of the Tax Cut and Jobs Act (TCJA) benefit.

AES files federal and state income tax returns, which consolidate DPL and its subsidiaries. Under a tax sharing agreement with AES, DPL is responsible for the income taxes associated with its own taxable income and records the provision for income taxes using a separate return method.

Subsidiaries [Member]

Entity Information [Line Items]

Income Taxes

INCOME TAXES

AES Ohio's provision for income taxes is based on the estimated annual effective tax rate, plus discrete items. The effective combined state and federal income tax rates were as follows:

	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023
Effective combined state and federal income tax rates	20.1	%	78.9	%	19.9	%	(2.2)	%

The year-to-date rate is different from the combined federal and state statutory rate of 22.4% primarily due to the flowthrough of the net tax benefit related to the reversal of excess deferred taxes of AES Ohio as a percentage of

pre-tax book income or loss. AES Ohio began amortizing a deferred municipal tax shortage in September 2023, which partially offsets the ongoing amortization of the Tax Cut and Jobs Act (TCJA) benefit.

AES files federal and state income tax returns, which consolidate AES Ohio. Under a tax sharing agreement with DPL, AES Ohio is responsible for the income taxes associated with its own taxable income and records the provision for income taxes using a separate return method.