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]