Shareholder's Equity

3 Months Ended

Mar. 31, 2018

Class of Stock [Line Items]

Shareholder's Equity

Shareholder's Equity

Capital Contributions from AES

In DP&L's approved six-year 2017 ESP, the PUCO imposed restrictions on DPL making dividend payments to its parent company, AES, during the term of the ESP, as well as on making tax-sharing payments to AES during the term of the DMR. The PUCO also required 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 three months ended March 31,2018, AES made non-cash capital contributions of $45.1 million and waived 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 March 31, 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 March 31, 2018, DP&L's equity ratio was 39% 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. After considering the payments and defeasance noted in Note 7 – Long-term Debt, DP&L's long-term debt is $597.2 million.

Capital Contribution and Returns of Capital

In 2018, DP&L received an $80.0 million capital contribution from its parent, DPL. In addition, DP&L made returns of capital payments of $23.8 million to DPL.

In the first quarter of 2017, DP&L made returns of capital payments of $9.0 million to DPL.