10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2021

OR

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

THE SECURITIES EXCHANGE ACT OF 1934

DPL Inc.

(an Ohio corporation)

Commission File Number 1-9052

1065 Woodman Drive

Dayton, Ohio 45432

937-259-7215

IRS Employer Identification No. 31-1163136

THE DAYTON POWER AND LIGHT COMPANY

d/b/a AES Ohio

(an Ohio corporation)

Commission File Number 1-2385

1065 Woodman Drive

Dayton, Ohio 45432

937-259-7215

IRS Employer Identification No. 31-0258470

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
N/A	N/A	N/A

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Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if each registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

DPL Inc.	Yes	☐	No	☑
The Dayton Power and Light Company	Yes	☐	No	☑

Indicate by check mark if each registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.

DPL Inc.	Yes	☐	No	☑
The Dayton Power and Light Company	Yes	☑	No	☐

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	☑	No	☐
The Dayton Power and Light Company	Yes	☐	No	☑

The Dayton Power and Light Company is a voluntary filer. DPL Inc. was a voluntary filer until its Registration Statement on Form S-4 filed with the Securities and Exchange Commission on March 15, 2021 was declared effective on March 31, 2021. DPL Inc. and The Dayton Power and Light Company have 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	☑	No	☐
The Dayton Power and Light Company	Yes	☑	No	☐

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	Smaller reporting company	Emerging growth company
DPL Inc.	☐	☐	☑	☐	☐
	Large accelerated Filer	Accelerated Filer	Non-accelerated Filer	Smaller reporting company	Emerging growth company
The Dayton Power and Light Company	☐	☐	☑	☐	☐

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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.	☐
The Dayton Power and Light Company	☐

	DPL Inc.	The Dayton Power and Light Company
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.	☐	☐

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

DPL Inc.	Yes	☐	No	☑
The Dayton Power and Light Company	Yes	☐	No	☑

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

At December 31, 2021, 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

Documents incorporated by reference: None

This combined Form 10-K 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.

THE REGISTRANTS MEET THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION I(1)(a) AND (b) OF FORM 10-K AND ARE THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.

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DPL Inc. and AES Ohio - Annual Report on Form 10-K

Year Ended December 31, 2021

Table of Contents	Page No.
GLOSSARY OF TERMS	5
Part I
Item 1 – Business	8
Item 1A – Risk Factors	15
Item 1B – Unresolved Staff Comments	26
Item 2 – Properties	26
Item 3 – Legal Proceedings	27
Part II
Item 5 – Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	28
Item 6 – Selected Financial Data	29
Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations	30
Item 7A – Quantitative and Qualitative Disclosures about Market Risk	50
Item 8 – Financial Statements and Supplementary Data	52
DPL Inc.	53
Consolidated Statements of Operations	56
Consolidated Statements of Comprehensive Income / (Loss)	57
Consolidated Balance Sheets	58
Consolidated Statements of Cash Flows	59
Consolidated Statements of Shareholder's Deficit	60
Notes to Consolidated Financial Statements	61
Note 1 – Overview and Summary of Significant Accounting Policies	61
Note 2 – Regulatory Matters	68
Note 3 – Property, Plant and Equipment	73
Note 4 – Fair Value	74
Note 5 – Derivative Instruments and Hedging Activities	75
Note 6 – Long-term debt	76
Note 7 – Income Taxes	78
Note 8 – Benefit Plans	79
Note 9 – Shareholder's Deficit	85
Note 10 – Contractual Obligations, Commercial Commitments and Contingencies	85
Note 11 – Related Party Transactions	87
Note 12 – Business Segments	88
Note 13 – Revenue	89
Note 14 – Discontinued Operations	92
Note 15 – Dispositions	93
Note 16 – Risks & Uncertainties	93
AES Ohio	94
Statements of Operations	97
Statements of Comprehensive Income	98
Balance Sheets	99
Statements of Cash Flows	100
Statements of Shareholder's Equity	101
Notes to Financial Statements	102
Note 1 – Overview and Summary of Significant Accounting Policies	102
Note 2 – Regulatory Matters	108
Note 3 – Property, Plant and Equipment	113
Note 4 – Fair Value	114
Note 5 – Derivative Instruments and Hedging Activities	116
Note 6 – Long-term debt	116
Note 7 – Income Taxes	117
Note 8 – Benefit Plans	119
Note 9 – Shareholder's Equity	125
Note 10 – Contractual Obligations, Commercial Commitments and Contingencies	125
Note 11 – Related Party Transactions	126
Note 12 – Revenue	127
Note 13 – Dispositions	129
Note 14 – Risks & Uncertainties	129
Item 9 – Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	131
Item 9A – Controls and Procedures	131
Item 9B – Other Information	131
Item 9C – Disclosure Regarding Foreign Jurisdictions That Prevent Inspections	131
Part III
Item 10 – Directors, Executive Officers and Corporate Governance	132
Item 11 – Executive Compensation	132
Item 12 – Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters	132
Item 13 – Certain Relationships and Related Transactions, and Director Independence	132
Item 14 – Principal Accountant Fees and Services	132
Part IV
Item 15 – Exhibits, Financial Statements and Financial Statement Schedules	134
Item 16 – Form 10-K Summary	137
Signatures	138
Schedule II - Valuation and Qualifying Accounts	141

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GLOSSARY OF TERMS

The following select terms, abbreviations or acronyms are used in this Form 10-K:

Term	Definition
AES	The AES Corporation - a global power company, the ultimate parent company of DPL
AES Ohio	The Dayton Power and Light Company, which does business as AES Ohio
AES Ohio Credit Agreement	$175.0 million AES Ohio Amended and Restated Credit Agreement, dated as of June 19, 2019
AES Ohio Generation	AES Ohio Generation, LLC - a wholly-owned subsidiary of DPL that owned and operated generation facilities from which it made wholesale sales
AFUDC	Allowance for Funds Used During Construction
AMI	Advanced Metering Infrastructure
AOCI	Accumulated Other Comprehensive Income
AOCL	Accumulated Other Comprehensive Loss
ARO	Asset Retirement Obligation
ASU	Accounting Standards Update
CAA	U.S. Clean Air Act - the congressional act that directs the USEPA’s regulation of stationary and mobile sources of air pollution to protect air quality and stratospheric ozone
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.
CCR	Coal Combustion Residuals - which consists of bottom ash, fly ash, boiler slag and flue gas desulfurization materials generated from burning coal
Conesville	AES Ohio Generation's interest in Unit 4 at the Conesville EGU. Unit 4 was closed in May 2020 and AES Ohio Generation's interest was sold in June 2020.
CRES	Competitive Retail Electric Service
CSAPR	Cross-State Air Pollution Rule - the USEPA's rule to address interstate air pollution transport to decrease emissions to downwind states
DIR	Distribution Investment Rider - initially established in the ESP 3 and authorized in the DRO to recover certain distribution capital investments placed in service beginning October 1, 2015, for the number of years, and subject to increasing annual revenue limits and other terms, as set forth in the DRO. The annual revenue limit for 2019 was $22.0 million.
DPL	DPL Inc.
DPL Credit Agreement	$100.0 million DPL Inc. Amended and Restated Credit Agreement, dated as of June 19, 2019
DP&L	The Dayton Power and Light Company - the principal subsidiary of DPL and a public utility which sells, transmits and distributes electricity to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio. DP&L is wholly-owned by DPL and does business as AES Ohio.
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
EBITDA	Earnings before interest, taxes, depreciation and amortization
ELG	Steam Electric Power Effluent Limitations Guidelines - guidelines which cover wastewater discharges from power plants operating as utilities
ERISA	The Employee Retirement Income Security Act of 1974
ESP	The Electric Security Plan - a cost-based plan that a utility may file with the PUCO to establish SSO rates pursuant to Ohio law
ESP 1	ESP originally approved by PUCO order dated June 24, 2009. After DP&L withdrew its ESP 3 Application, the PUCO approved DP&L's request to revert to rates based on its ESP 1 rate plan effective December 19, 2019. DP&L is currently operating under this ESP 1 plan.
ESP 3	DP&L's ESP - which was approved October 20, 2017 and became effective November 1, 2017. This ESP 3 was subsequently withdrawn, and DP&L reverted to its ESP 1 rate plan, effective December 18, 2019.
FASB	Financial Accounting Standards Board
FASC	FASB Accounting Standards Codification
FERC	Federal Energy Regulatory Commission
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, excluding those of the Beckjord and Hutchings Coal Stations, pursuant to an asset contribution agreement with a subsidiary that was then merged into AES Ohio Generation

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GLOSSARY OF TERMS (cont.)
Term	Definition
GHG	Greenhouse gas - air pollutants largely emitted from combustion
kWh	Kilowatt hour
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
MATS	Mercury and Air Toxics Standards - the USEPA’s rules for existing and new power plants under Section 112 of the CAA
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.
MRO	Market Rate Option - a market-based plan that a utility may file with PUCO to establish SSO rates pursuant to Ohio law
MVIC	Miami Valley Insurance Company is a wholly-owned insurance subsidiary of DPL that provides insurance services to DPL and its subsidiaries
MW	Megawatt
MWh	Megawatt hour
NAAQS	National Ambient Air Quality Standards - the USEPA’s health and environmental based standards for six specified pollutants, as found in the ambient air
NAV	Net asset value
NERC	North American Electric Reliability Corporation - a not-for-profit international regulatory authority whose mission is to assure the effective and efficient reduction of risks to the reliability and security of the electric grid
Non-bypassable	Charges that are assessed to all customers regardless of whom the customer selects as their retail electric generation supplier
NOV	Notice of Violation - an administrative action by EPA or a state agency to address non-compliance with various federal or state anti-pollution laws or regulations
NOX	Nitrogen Oxide - an air pollutant regulated by the NAAQS under the CAA
OCC	Ohio Consumers' Counsel
OCI	Other Comprehensive Income
Ohio EPA	Ohio Environmental Protection Agency
OVEC	Ohio Valley Electric Corporation, an electric generating company in which DP&L has a 4.9% interest
PJM	PJM Interconnection, LLC, an RTO
PRP	PRP - A Potentially Responsible Party is considered by the USEPA to be potentially responsible for ground contamination and the USEPA will commonly require PRPs to conduct an investigation to determine the source of contamination and to perform the cleanup before using Superfund money
PUCO	Public Utilities Commission of Ohio
RTO	Regional Transmission Organization
SEC	Securities and Exchange Commission
SEET	Significantly Excessive Earnings Test - a test used by the PUCO to determine whether a utility's ESP or MRO produces significantly excessive earnings for the utility
Service Company	AES US Services, LLC - the shared services affiliate providing accounting, finance and other support services to AES’ U.S. SBU businesses
SIP	A State Implementation Plan is a plan for complying with the federal CAA, administered by the USEPA. The SIP consists of narrative, rules, technical documentation and agreements that an individual state will use to clean up polluted areas.
Smart Grid Plan	In December 2018, DP&L filed a comprehensive grid modernization plan
SO2	Sulfur Dioxide - an air pollutant regulated by the NAAQS under the CAA
SSO	Standard Service Offer - the retail transmission, distribution and generation services offered by a utility through regulated rates, authorized by the PUCO
TCJA	The Tax Cuts and Jobs Act of 2017 signed on December 22, 2017
U.S.	United States of America
USD	U. S. dollar
USEPA	U. S. Environmental Protection Agency
USF	The Universal Service Fund (USF) is a statewide program which provides qualified low-income customers in Ohio with income-based bills and energy efficiency education programs
U.S. SBU	U. S. Strategic Business Unit, AES’ reporting unit covering the businesses in the United States, including DPL
WPAFB	Wright-Patterson Air Force Base

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PART I

This report includes the combined filing of DPL and of DP&L, which does business as and is also referred to herein as AES Ohio. DPL is a 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 altogether, 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 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:

•impacts of weather on retail sales;

•growth in our service territory and changes in demand and demographic patterns;

•weather-related damage to our electrical system;

•performance of our suppliers;

•transmission and distribution system reliability and capacity;

•regulatory actions and outcomes, including, but not limited to, the review and approval of our 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, and liabilities related to, current and future environmental and climate change 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;

▪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 tax strategies;

▪product development, technology changes and changes in prices of products and technologies;

▪cyberattacks and information security breaches;

▪the use of derivative contracts;

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▪catastrophic events such as fires, explosions, terrorist acts, acts of war, pandemic events, including the outbreak of COVID-19, or natural disasters such as floods, earthquakes, tornadoes, severe winds, ice or snowstorms, droughts, or other similar occurrences, including as a result of climate change; 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 of the above factors are difficult to predict, contain uncertainties that may materially affect actual results, and many are beyond our control. See Item 1A - Risk Factors to Part I in this Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and the “Management's Discussion and Analysis of Financial Condition and Results of Operations” section in this Annual Report 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. These risks may also be specifically described in our Quarterly Reports on Form 10-Q in Part II - Item 1A, Current Reports on Form 8-K and other documents that we may file from time to time with the SEC.

Item 1 – Business

OVERVIEW

DPL is a regional energy company incorporated in 1985 under the laws of Ohio. All of DPL’s stock is owned by an AES subsidiary.

DPL has three primary subsidiaries: AES Ohio, MVIC and Miami Valley Lighting. AES Ohio is a public utility providing electric transmission and distribution services in West Central Ohio. For additional information, see Note 1 – Overview and Summary of Significant Accounting Policies of Notes to DPL's Consolidated Financial Statements and Note 1 – Overview and Summary of Significant Accounting Policies of Notes to AES Ohio's Financial Statements. All of DPL's subsidiaries are wholly-owned. DPL manages its business through one reportable operating segment, the Utility segment. See Note 12 – Business Segments of the Notes to DPL's Consolidated Financial Statements for additional information regarding DPL’s reportable segment. AES Ohio also manages its business through one reportable operating segment, the Utility segment.

DPL’s other primary subsidiaries are MVIC and Miami Valley Lighting. MVIC is our captive insurance company that provides insurance services to AES Ohio and our other subsidiaries, and Miami Valley Lighting provides street and outdoor lighting services to customers in the Dayton region.

DPL also has a wholly-owned business trust, DPL Capital Trust II, formed for the purpose of issuing trust capital securities to investors.

AES Ohio does not have any subsidiaries.

AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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 or overcollections of riders.

GENERATING CAPACITY

DPL, through its subsidiaries, once owned all or a percentage of various generation facilities, the last of which was sold in June 2020. For additional information on this event and DPL's other previously owned EGUs, see Note 14 – Discontinued Operations of Notes to DPL's Consolidated Financial Statements.

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AES Ohio also has a 4.9% interest in OVEC, an electric generating company. OVEC has two electric generating stations located in Cheshire, Ohio and Madison, Indiana with a combined generation capacity of 2,109 MW. AES Ohio’s share of this generation capacity is 103 MW.

HUMAN CAPITAL MANAGEMENT

DPL's employees are essential to delivering and maintaining reliable service to our customers. DPL and its subsidiaries employed 647 people (531 full-time) at December 31, 2021 all of whom were employed by AES Ohio. Approximately 58% of all DPL employees are under a collective bargaining agreement that expires on October 31, 2023.

Safety

As part of AES, safety is one of our core values. Conducting safe operations at our facilities, so that each person can return home safely, is the cornerstone of our daily activities and decisions. Safety efforts are led globally by the AES Chief Operating Officer and supported by safety committees that operate at the local site level. Hazards in the workplace are actively identified and management tracks incidents so remedial actions can be taken to improve workplace safety.

We work with the AES Safety Management System (“SMS”), a Global Safety Standard that applies to all AES employees and employees of AES subsidiaries, as well as contractors working in AES facilities and construction projects. The SMS requires continuous safety performance monitoring, risk assessment and performance of periodic integrated environmental, health and safety audits. The SMS provides a consistent framework for all AES operational businesses and construction projects to set expectations for risk identification and reduction, measure performance and drive continuous improvements. The SMS standard is consistent with the OHSA 18001/ISO 45001 standard. Our safety performance is also measured by both leading and lagging metrics. Our leading safety metrics track safety observations, safety meeting engagement and the reporting of non-injury significant injury potential incidents. Our lagging safety metrics track lost workday cases, severity rate, and recordable incidents. We are committed to excellence in safety and have implemented various programs to increase safety awareness and improve work practices.

In response to the COVID-19 pandemic, we implemented significant changes that we determined were in the best interest of our employees, as well as the communities in which we operate. This includes having employees work from home to the extent they were able, while implementing additional safety measures for employees continuing critical on-site work.

Talent

We believe our success depends on our ability to attract, develop and retain key personnel. The skills, experience and industry knowledge of key employees significantly benefit our operations and performance. We have a comprehensive approach to managing our talent and developing our leaders in order to ensure our people have the right skills for today and tomorrow whether that requires us to build new business models or leverage leading technologies.

We emphasize employee development and training. To empower employees, we provide a range of development programs and opportunities, skills, and resources they need to be successful by focusing on experience and exposure as well as formal programs including the AES ACE Academy for Talent Development and our Trainee Program.

We believe that our individual differences make us stronger. Our Global Diversity and Inclusion Program is led by the AES Diversity and Inclusion Officer. Governance and standards are guided by the AES Chief Human Resources Officer, with input from members of AES' Executive Leadership Team.

Compensation

Our compensation philosophy emphasizes pay-for-performance. Our incentive plans are designed to reward strong performance, with greater compensation paid when performance exceeds expectations and less compensation paid when performance falls below expectations. We invest significant time and resources to ensure our compensation programs are competitive and reward the performance of our people. Every year, our people who are not part of a collective bargaining agreement are eligible for an annual merit-based salary increase. In addition, individuals are eligible for a salary increase if they receive a significant promotion. For non-collectively bargained employees at

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certain levels in the organization we offer annual incentives (bonus) and long-term compensation to reinforce the alignment between employees and AES.

SERVICE COMPANY

The Service Company provides services including operations, accounting, legal, human resources, information technology and other corporate services on behalf of companies that are part of the U.S. SBU, including, among other companies, DPL and AES Ohio. The Service Company allocates the costs for these services based on cost drivers designed to result in fair and equitable allocations. This includes ensuring that the regulated utilities served, including AES Ohio, are not subsidizing costs incurred for the benefit of other businesses. See Note 11 – Related Party Transactions of Notes to DPL's Consolidated Financial Statements and Note 11 – Related Party Transactions of Notes to AES Ohio's Financial Statements.

SEASONALITY

The power delivery business is seasonal, and weather patterns have a material effect on energy demand. In the region we serve, demand for electricity is generally greater in the summer months associated with cooling and in the winter months associated with heating compared to other times of the year. AES Ohio's sales typically reflect the seasonal weather patterns but can also be impacted by economic activity, COVID-19, and the number of retail customers we have. The impacts of weather, energy efficiency programs and economic changes in customer demand were almost entirely eliminated in 2019 by AES Ohio’s Decoupling Rider, which was in place from January 1, 2019 until December 18, 2019. AES Ohio has requested authority from the PUCO to create a regulatory asset for the ongoing revenues that would have been charged in the Decoupling Rider going back to December 18, 2019. A hearing on this request was held in May 2021 and is pending a decision by the PUCO. See Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements.

Storm activity can also have an adverse effect on our operating performance. Severe storms often damage transmission and distribution equipment, thereby causing power outages, which reduce revenues and increase repair costs. Partially mitigating this impact is AES Ohio’s ability to timely recover certain O&M repair costs related to severe storms.

MARKET STRUCTURE

Retail rate regulation

AES Ohio's distribution service to all retail customers as well as the provisions of its SSO service are regulated by the PUCO. In addition, certain costs are considered to be non-bypassable and are therefore assessed to all AES Ohio retail customers, under the regulatory authority of the PUCO, regardless of the customer’s retail electric supplier. AES Ohio's transmission rates are subject to regulation by the FERC under the Federal Power Act.

Ohio law establishes the process for determining SSO and non-bypassable rates charged by public utilities. Regulation of retail rates encompasses the timing of applications, the effective date of rate changes, the cost basis upon which the rates are set and other service-related matters. Ohio law also established the Office of the Ohio Consumers' Counsel, which has the authority to represent residential consumers in state and federal judicial and administrative rate proceedings.

Ohio legislation extends the jurisdiction of the PUCO to the records and accounts of certain public utility holding company systems, including DPL. The legislation extends the PUCO's supervisory powers to a holding company system's general condition and capitalization, among other matters, to the extent that such matters relate to the costs associated with the provision of public utility service. Based on existing PUCO and FERC authorization, regulatory assets and liabilities are recorded on the balance sheets of both DPL and AES Ohio. See Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements.

COMPETITION AND REGULATION

Ohio Retail Rates

AES Ohio rates for electric service currently remain the lowest among Ohio investor-owned utilities.

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ESP 1 established AES Ohio's framework for providing retail service on a going-forward basis including rate structures, non-bypassable charges and other specific rate recovery true-up rider mechanisms. For more information regarding AES Ohio's ESP, see Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements.

On September 26, 2018, the PUCO issued the DRO establishing new base distribution rates for AES Ohio, which became effective October 1, 2018. The DRO approved, without modification, a stipulation and recommendation previously filed by AES Ohio, along with various intervening parties and the PUCO staff. The DRO established a revenue requirement of $248.0 million for AES Ohio's electric service base distribution rates. The DRO also provided for a return on equity of 9.999% and a cost of long-term debt of 4.8%.

On November 30, 2020, AES Ohio filed a new distribution rate case with the PUCO. This rate case proposes a revenue increase of $120.8 million. For more information, see Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements.

In December 2018, AES Ohio filed its Smart Grid Plan with the PUCO proposing to invest $576.0 million in capital projects over the next 10 years. There are eight principal components of DP&L’s Smart Grid Plan: 1) Smart Meters, 2) Self-Healing Grid, 3) Customer Engagement, 4) Enhancing Sustainability and Embracing Innovation. 5) Telecommunications, 6) Physical and Cyber Security, 7) Governance and Analytics and 8) Grid Modernization R&D.

On October 23, 2020, AES Ohio entered into a Stipulation and Recommendation (settlement) with the staff of the PUCO and various customers, and organizations representing customers of AES Ohio and certain other parties with respect to, among other matters, AES Ohio's applications pending at the PUCO for (i) approval of AES Ohio's plan to modernize its distribution grid (the Smart Grid Plan), (ii) findings that AES Ohio passed the SEET for 2018 and 2019, and (iii) findings that AES Ohio's current ESP 1 satisfies the SEET and the more favorable in the aggregate (MFA) regulatory test. A hearing was held in January 2021 for consideration of this settlement and on June 16, 2021, the PUCO issued their opinion and order accepting the stipulation as filed. Several applications for rehearing of the PUCO's orders relating to the comprehensive settlement were filed and denied on December 1, 2021. The OCC appealed this PUCO Order to the Ohio Supreme Court on December 6, 2021; this appeal remains pending. Consistent with AES' earlier statement of intent, with the PUCO's issuance of their opinion and order, during 2021 DPL received $150.0 million from AES and, in turn, DPL made a capital contribution of $150.0 million to AES Ohio to enable AES Ohio to seek to improve its infrastructure and modernize its grid while maintaining liquidity. For more information, see Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements.

Ohio law and the PUCO rules contain targets relating to renewable energy standards. AES Ohio is currently in full compliance with renewable energy standards. AES Ohio recovers the costs of its compliance with Ohio renewable energy standards through its Standard Offer Rate Tariff, which is reviewed and audited by the PUCO.

The costs associated with providing high voltage transmission service and wholesale electric sales and ancillary services are subject to FERC jurisdiction. AES Ohio implemented a formula-based rate for its transmission service, effective May 3, 2020. For more information, see Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements.

As a member of PJM, AES Ohio receives revenues from the RTO related to AES Ohio’s transmission assets and incurs costs associated with its load obligations for retail customers. Ohio law includes a provision that would allow Ohio electric utilities to seek and obtain a reconcilable rider to recover RTO-related costs and credits. AES Ohio continues to recover non-market-based transmission and ancillary costs through its nonbypassable Transmission Cost Recovery Rider.

In response to filings made by AES Ohio and AES Ohio Generation, the FERC approved on May 16, 2017 reactive power rates for the generation facilities that were owned at that time. In the same order, FERC referred to the FERC’s Office of Enforcement for investigation, an issue regarding AES Ohio’s reactive power charges under the previously effective rates in light of changes in AES Ohio’s generation portfolio between cases. As of the date of this report, AES Ohio is unable to predict the ultimate outcome of the investigation. Several other utilities within PJM are also being investigated by FERC’s Office of Enforcement with respect to the same issue of changes in the generation portfolio that occurred in between rate proceedings.

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Ohio Competition

Since January 2001, AES Ohio’s electric customers have been permitted to choose their retail electric generation supplier. AES Ohio continues to have the exclusive right to provide delivery service in its state-certified territory and the obligation to procure and provide electricity to SSO customers that do not choose an alternative supplier. The PUCO maintains jurisdiction over AES Ohio’s delivery of electricity, SSO and other retail electric services.

As part of Ohio’s electric deregulation law, all of the state’s investor-owned utilities were required to join an RTO. AES Ohio is a member of the PJM RTO. The role of the RTO is to administer a competitive wholesale market for electricity and ensure reliability of the transmission grid. PJM ensures the reliability of the high-voltage electric power system serving more than 65 million people in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. PJM coordinates and directs the operation of the region’s transmission grid, administers the world’s largest competitive wholesale electricity market and plans regional transmission expansion improvements to maintain grid reliability and relieve congestion.

ENVIRONMENTAL MATTERS

DPL’s and AES Ohio's current and former facilities and operations are and/or were subject to a wide range of federal, state and local environmental laws, rules and regulations. The environmental issues that may affect us are discussed below; however, as discussed further below, as a result of our exiting of our generation business, certain of these requirements are no longer expected to have a material impact on DPL and AES Ohio.

•The federal CAA and state laws and regulations (including SIPs) which require compliance, obtaining permits and reporting as to air emissions;

•Litigation with federal and certain state governments and certain special interest groups regarding whether modifications to or maintenance of certain coal-fired generating stations require additional permitting or pollution control technology, or whether emissions from coal-fired generating stations cause or contribute to global climate changes;

•Rules and future rules issued by the USEPA, the Ohio EPA or other authorities that require or will require substantial reductions in SO2, particulates, mercury, acid gases, NOx and other air emissions;

•Rules and future rules issued by the USEPA, the Ohio EPA or other authorities that require or will require reporting and reductions of GHGs;

•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, environmental laws, rules 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 laws, rules and 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 a number of 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 previously-owned and operated coal-fired generation units. We do not expect these matters to have a material adverse impact on our results of operations, financial condition or cash flows. See Note 10 – Contractual Obligations, Commercial Commitments and Contingencies – "Environmental Matters” of Notes to DPL's Consolidated Financial Statements and Note 10 – Contractual Obligations, Commercial Commitments and Contingencies – "Environmental Matters" of Notes to AES Ohio's Financial Statements for more information regarding environmental risks, laws and regulations and legal proceedings to which we are and may be subject to in the future.

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Biden Administration Actions Affecting Environmental Regulations

On January 20, 2021, President Biden issued an Executive Order (the "EO") titled “Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis” directing agencies to, among other tasks, review regulations issued under the previous administration to determine whether they should be suspended, revoked, or revised. As provided for by the EO, the USEPA submitted a letter to the U.S. Department of Justice seeking to obtain abeyances or stays of proceedings in pending litigation that seeks review of regulations promulgated during the Trump Administration. The Biden Administration also issued a Memorandum titled “Regulatory Freeze Pending Review” directing agencies to refrain from proposing or issuing any rules until the Biden Administration has reviewed and approved those rules. These actions may have an impact on regulations that may affect our business, financial condition, or results of operations.

Environmental Matters Related to Air Quality

As a result of DPL’s retirement and subsequent sale of its Stuart and Killen Stations, the sale of its ownership interest in the Miami Fort and Zimmer Stations and the 2020 retirement of Conesville, followed by the sale of our interest in Conesville and our exiting of our generation business, the following environmental matters, regulations and requirements are now not expected to have a material impact on DPL:

•The CAA and the following regulations:

•CSAPR and associated updates;

•MATS and any associated regulatory or judicial processes;

•NAAQS; and

•Greenhouse gas regulations established under CAA Section 111(d) for EGUs.

Notices of Violation Involving Co-Owned Units

On February 15, 2017, the USEPA issued an NOV alleging violations in opacity at the Stuart Station in 2016. Operations at the Stuart Station have ceased. Given the retirement and sale of the Stuart Station and the fact there has been no recent activity, we do not expect any further material developments regarding this NOV.

Environmental Matters Related to Water Quality, Waste Disposal and Ash Ponds

As a result of DPL’s retirement and subsequent sale of its Stuart and Killen Stations, the sale of its ownership interest in the Miami Fort and Zimmer Stations and the 2020 retirement of Conesville, followed by the sale of our interest in Conesville and our exiting of our generation business; the following environmental matters, regulations and requirements are now not expected to have a material impact on DPL with respect to these generating stations (although certain other requirements related to water quality, waste disposal and ash ponds are discussed further below):

•water intake regulations, including those finalized by the USEPA on May 19, 2014;

•revised technology-based regulations governing water discharges from steam electric generating facilities, finalized by the USEPA on November 3, 2015 (and revised on October 13, 2020) and commonly referred to as the ELG rules; and

•Clean Water Act rules for selenium.

Notice of Potential Liability for Third Party Disposal Site

In December 2003, AES Ohio and other parties received notices that the USEPA considered AES Ohio and other parties PRPs for the Tremont City Landfill site, located near Dayton, Ohio. On October 16, 2019, AES Ohio received another notice from the USEPA claiming that AES Ohio is a PRP for the portion of the site known as the barrel fill. While a review by AES Ohio of its records indicates that it did not contribute hazardous materials to the site, AES Ohio is currently unable to predict the outcome of this matter. If AES Ohio were required to contribute to the clean-up of the site, it could have an adverse effect on our business, financial condition or results of operations.

Regulation of Waste Disposal

In 2002, AES Ohio and other parties received a special notice that the USEPA considered AES Ohio to be a PRP for the clean-up of hazardous substances at a third-party landfill known as the South Dayton Dump (“Landfill”). Several of the parties voluntarily accepted some of the responsibility for contamination at the Landfill and, in May 2010, three of those parties, Hobart Corporation, Kelsey-Hayes Company and NCR Corporation (“PRP Group”), filed a civil complaint in Ohio federal court (the “District Court”) against AES Ohio and numerous other defendants, alleging that the defendants contributed to the contamination at the landfill and were liable for contribution to the PRP group for costs associated with the investigation and remediation of the site.

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While AES Ohio was able to get the initial case dismissed, the PRP Group subsequently, in 2013, entered into an additional Administrative Settlement Agreement and Order on Consent (“ASAOC”) with the USEPA relating to vapor intrusion and again filed suit against AES Ohio and other defendants. Plaintiffs also added an additional ASAOC they entered into in 2016 pertaining to the investigation and remediation of all hazardous substances present in the Landfill - potentially including undefined areas outside the original dump footprint - to the vapor intrusion trial proceeding. The 2013 vapor intrusion ASAOC settled in early 2020, but the 2016 ASAOC remains to be adjudicated after completion of the remedial investigation feasibility study. While AES Ohio is unable to predict the outcome of these matters, if AES Ohio were required to contribute to the clean-up of the site, it could have a material adverse effect on our results of operations, financial condition and cash flows.

Regulation of CCR

On October 19, 2015, a USEPA rule regulating CCR under the Resource Conservation and Recovery Act as nonhazardous solid waste became effective (CCR Rule). The rule established nationally applicable minimum criteria for the disposal of CCR in new and currently operating landfills and surface impoundments, including location restrictions, design and operating criteria, groundwater monitoring, corrective action and closure requirements and post-closure care. The 2016 Water Infrastructure Improvements for the Nation Act ("WIIN Act"), includes provisions to implement the CCR Rule through a state permitting program, or if the state chooses not to participate, a possible federal permit program. The USEPA has indicated that they will implement a phased approach to amending the CCR Rule. On February 20, 2020, the USEPA published a proposed rule to establish a federal CCR permit program that would operate in states without approved CCR permit programs. The USEPA has indicated that they will implement a phased approach to amending the CCR rule, which is ongoing. With the sale of our coal-fired generating stations, we expect that the impact of these regulations would be limited to our interest in OVEC.

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 adverse effect on our results of operations, financial condition and cash flows.

On August 28, 2020, the USEPA published the CCR Part A Rule that, among other amendments, required certain CCR units to cease waste receipt and initiate closure by April 11, 2021. The CCR Part A Rule also allowed for extensions of the April 11, 2021 deadline if EPA determines certain criteria are met. Facilities seeking such an extension were required to submit a demonstration to EPA by November 30, 2020. On January 11, 2022, EPA released pre-publication versions of proposed determinations regarding nine CCR Part A Rule demonstrations, including for OVEC’s Clifty Creek. On the same day, EPA issued four compliance-related letters notifying certain other facilities of their compliance obligations under the federal CCR regulations. The determinations and letters include interpretations regarding implementation of the CCR Rule. It is too early to determine the direct or indirect impact of these letters or any determinations that may be made.

Clean Water Act - Regulation of Water Discharge

AES Ohio and other utilities at times have applied the Nationwide Permit 12 (NWP 12) issued by the U.S. Army Corps of Engineers (Corps) in completing transmission and distribution projects that may involve waters of the U.S. NWP 12 is the nationwide permit for Utility Line Activities, specifically those required for construction and maintenance, provided the activity does not result in the loss of greater than 1/2-acre of waters of the U.S. for each single and complete project.

On April 15, 2020, in a proceeding involving the construction of the Keystone XL pipeline, the U.S. District Court for the District of Montana (Montana District Court) vacated NWP 12 and enjoined its application. On July 6, 2020, the U.S. Supreme Court stayed the district court order, allowing the use of NWP 12 for oil and gas pipeline projects except for Keystone XL. On January 13, 2021, the U.S. Army Corps of Engineers published a final rulemaking for the reissuance and modification of NWPs, including NWP 12, relating exclusively to the construction of oil or natural gas pipelines and the new NWP 57 for construction of electric or telecommunication utility lines. It is too early to determine whether future outcomes or decisions related to this matter could have a material adverse effect on our results of operations, financial condition and cash flows.

On April 23, 2020, the U.S. Supreme Court issued a decision in the Hawaii Wildlife Fund v. County of Maui case related to whether a Clean Water Act permit is required when pollutants originate from a point source but are conveyed to navigable waters through a nonpoint source such as groundwater. The U.S. Supreme Court held that discharges to groundwater require a permit if the addition of the pollutants through groundwater is the functional equivalent of a direct discharge from the point source into navigable waters. A number of legal cases relevant to the determination of "functional equivalent" are ongoing in various jurisdictions. It is too early to determine whether the Supreme Court decision or the result of litigation related to "functional equivalent" may have a material adverse effect on our results of operations, financial condition and cash flows.

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In June 2015, the USEPA and the U.S. Army Corps of Engineers ("the agencies") published a rule defining federal jurisdiction over waters of the U.S., known as the "Waters of the U.S." (WOTUS) rule. This rule, which initially became effective in August 2015, could expand or otherwise change the number and types of waters or features subject to CWA permitting. However, after repealing the 2015 WOTUS rule on October 22, 2019, the agencies, on April 21, 2020, issued the final “Navigable Waters Protection” (NWP) rule which again revised the definition of waters of the U.S. On August 30, 2021, the U.S. District Court for the District of Arizona issued an order vacating and remanding the NWP Rule. This vacatur of the NWP Rule applies nationwide. As such, the agencies are interpreting waters of the U.S. consistent with the pre-2015 regulatory regime until further notice. On December 7, 2021, the Agencies published a proposed rule to define the scope of waters regulated under the Clean Water Act. The proposed rule would restore regulations defining WOTUS that were in place prior to 2015, with updates to be consistent with relevant Supreme Court decisions. A second rulemaking process is planned to further build upon this proposed rule. On January 24, 2022, the U.S. Supreme Court granted certiorari on a wetlands case (Sackett v. EPA) on the limited question of: “whether the Ninth Circuit set forth the proper test for determining whether wetlands are ‘waters of the United States’ under the Clean Water Act.” The Ninth Circuit employed Justice Kennedy’s “significant nexus” test from his concurring opinion in the 2006 Rapanos v. United States decision; the plurality opinion in Rapanos required a water body to have a “continuous surface connection” with a water of the United States in order to be considered a wetland covered by the CWA. In Sackett v. EPA, the Court may finally provide clarity on which of these two tests from the 2006 Rapanos decision controls. It is too early to determine whether any outcome of litigation or current or future revisions to rules interpreting federal jurisdiction over waters over the U.S. might have a material impact on our business, financial condition and results of operations.

Climate Change Legislation and Regulation

Although we have exited our generation business, our continuing operations face certain risks related to existing and potential international, federal, state, regional and local GHG legislation and regulations, including risks related to increased capital expenditures or other compliance costs which could have a material adverse effect on our results of operations, financial condition and cash flows. Except as noted in the discussion below, at this time, we cannot estimate the costs of compliance with existing, proposed or potential international, federal, state or regional GHG emissions reductions legislation or initiatives due in part to the fact that many of these proposals are in earlier stages of development and any final laws or regulations, if adopted, could vary drastically from current proposals. Any international, federal, state or regional legislation adopted in the U.S. that would require the reduction of GHG emissions could have a material adverse effect on our business and/or results of operations, financial condition and cash flows.

On the international level, on December 12, 2015, 195 nations, including the U.S., finalized the text of an international climate change accord in Paris, France (the “Paris Agreement”), which agreement was signed and officially entered into on April 22, 2016. The Paris Agreement calls for countries to set their own GHG emissions targets, make these emissions targets more stringent over time and be transparent about the GHG emissions reporting and the measures each country will use to achieve its GHG emissions targets. A long-term goal of the Paris Agreement is to limit global temperature increase to well below two degrees Celsius from temperatures in the pre-industrial era. The U.S. withdrawal from the Paris Agreement became effective on November 4, 2020. However, on January 20, 2021, President Biden signed and submitted an instrument for the U.S. to rejoin the Paris Agreement, which became effective on February 19, 2021. In November 2021, the international community gathered in Glasgow at the 26th Conference to the Parties on the UN Framework Convention on Climate Change (“COP26”), during which multiple announcements were made, including a call for parties to eliminate certain fossil fuel subsidies and pursue further action on non-carbon dioxide GHGs.

HOW TO CONTACT DPL AND AES Ohio AND SOURCES OF OTHER INFORMATION

Our executive offices are located at 1065 Woodman Drive, Dayton, Ohio 45432 - telephone 937-259-7215. AES Ohio’s public internet site is www.aes-ohio.com. The information on this website is not incorporated by reference into this report. The SEC maintains an internet website that contains this report and other information that we file electronically with the SEC at www.sec.gov.

Item 1A – Risk Factors

Investors should consider carefully the following risk factors that could cause our business, operating results and financial condition to be materially adversely affected. 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. The categories of

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risk we have identified in Item 1A. — Risk Factors include risks associated with our operations, governmental regulation and laws and our indebtedness and financial condition. These risk factors should be read in conjunction with the other detailed information concerning DPL set forth in the Notes to DPL's Consolidated Financial Statements and concerning AES Ohio set forth in the Notes to AES Ohio's Financial Statements in Part II – Item 8 – Financial Statements and Supplementary Data and additional information in Part II – Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations herein. The risks and uncertainties described below are not the only ones that we face.

RISKS ASSOCIATED WITH OUR OPERATIONS

The current outbreak of the novel coronavirus, or COVID-19, has adversely affected, and it or the future outbreak of any other highly infectious or contagious diseases could materially and adversely affect, our transmission and distribution systems and other facilities, results of operations, financial condition and cash flows. Further, the spread of the COVID-19 outbreak has caused disruptions in the U.S. and global economy and financial markets and could potentially create widespread business continuity issues of an as yet unknown magnitude and duration.

In December 2019, a novel strain of coronavirus (COVID-19) was reported to have surfaced in Wuhan, China. COVID-19 has since spread to over 180 countries, including every state in the United States. On March 11, 2020 the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020 the United States declared a national emergency with respect to COVID-19.

The outbreak of COVID-19 has impacted global economic activity, caused significant volatility and negative pressure in financial markets and reduced the demand for energy in our service territory. In addition to reduced revenues and lower margins resulting from decreased energy demand within our service territory, we also have incurred and expect to continue to incur expenses relating to COVID-19, including expenses relating to events outside of our control. The impact of the outbreak continues to evolve and many countries, including the United States, have implemented various types of social distancing and other measures to address the outbreak. In addition to contributing to economic slowdown or a recession, COVID-19 or another pandemic could have material and adverse effects on our results of operations, financial condition and cash flows due to, among other factors:

•further decline in customer demand as a result of general decline in business activity;

•further destabilization of the markets and decline in business activity negatively impacting our customer growth or the number of customers in our service territory as well as our customers’ ability to pay for our services when due (or at all);

•delay or inability in obtaining regulatory actions and outcomes that could be material to our business, including for recovery of COVID-19 related expenses and losses such as uncollectible customer amounts and the review and approval of our applications, rates and charges by the PUCO;

•difficulty accessing the capital and credit markets on favorable terms, or at all, a disruption and instability in the global financial markets, or deteriorations in credit and financing conditions which could affect our access to capital necessary to fund business operations or address maturing liabilities on a timely basis;

•negative impacts on the health of our essential personnel, especially if a significant number of them are affected, and on our operations as a result of implementing stay-at-home, quarantine and other social distancing measures;

•a deterioration in our ability to ensure business continuity during a disruption, including increased cybersecurity attacks related to the work-from-home environment;

•delays or inability to access, transport and deliver materials to our facilities due to restrictions on business operations or other factors affecting us and our third-party suppliers;

•delays or inability to access equipment or the availability of personnel to perform planned and unplanned maintenance, which can, in turn, lead to disruption in operations;

•delays or inability in achieving our financial goals, growth strategy and digital transformation; and

•delays in the implementation of expected rules and regulations.

We will continue to review and modify our plans as conditions change. Despite our efforts to manage and remedy these impacts to us, their ultimate impact also depends on factors beyond our knowledge or control, including the

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duration and severity of this outbreak as well as third-party actions taken to contain its spread and mitigate its public health effects.

COVID-19 continues to present material uncertainty which could materially and adversely affect our transmission and distribution systems, results of operations, financial condition and cash flows. To the extent COVID-19 adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described in this ‘‘Risk Factors’’ section, such as those relating to our level of indebtedness, our need to generate sufficient cash flows to service our indebtedness and our ability to comply with the covenants contained in the agreements that govern our indebtedness.

We may be negatively affected by a lack of growth or a decline in the number of customers.

Customer growth is affected by a number of factors outside our control, such as population changes, job and income growth, housing starts, new business formation and the overall level of economic activity. A lack of growth, or a decline, in the number of customers in our service territory could have a material adverse effect on our results of operations, financial condition and cash flows and may cause us to fail to fully realize anticipated benefits from investments and expenditures.

Our business is sensitive to weather and seasonal variations.

Weather conditions significantly affect the demand for electric power and, accordingly, our business is affected by variations in general weather conditions and unusually severe weather. As a result of these factors, our operating revenues and associated operating expenses are not generated evenly by month during the year. We forecast electric sales based on normal weather, which represents a long-term historical average. In addition, severe or unusual weather, such as floods, tornadoes and ice or snowstorms, may cause outages and property damage that may require us to incur additional costs that may not be insured or recoverable from customers. While AES Ohio is permitted to seek recovery of storm damage costs, if AES Ohio is unable to fully recover such costs in a timely manner, it could have a material adverse effect on our results of operations, financial condition and cash flows.

Our membership in a regional transmission organization presents risks that could have a material adverse effect on our results of operations, financial condition and cash flows.

On October 1, 2004, in compliance with Ohio law, AES Ohio turned over control of its transmission functions and fully integrated into PJM, a regional transmission organization.

The rules governing the various regional power markets may also change from time to time which could affect our costs and revenues and have a material adverse effect on our results of operations, financial condition and cash flows. We may be required to expand our transmission system according to decisions made by PJM rather than our internal planning process. Various proposals and proceedings before the FERC may cause transmission rates to change from time to time. In addition, PJM developed and continues to refine rules associated with the allocation and methodology of assigning costs associated with improved transmission reliability, reduced transmission congestion and firm transmission rights that may have a financial effect on us. We also incur fees and costs to participate in PJM.

Non-market-based RTO-related charges are being recovered from all retail customers through the Transmission Rider. If in the future, however, we are unable to recover all of these costs in a timely manner this could have a material adverse effect on our results of operations, financial condition and cash flows.

As members of PJM, AES Ohio and AES Ohio Generation are also subject to certain additional risks including those associated with the allocation of losses caused by unreimbursed defaults of other participants in PJM markets among PJM members and those associated with complaint cases filed against PJM that may seek refunds of revenues previously earned by PJM members including AES Ohio and AES Ohio Generation. These amounts could be significant and have a material adverse effect on our results of operations, financial condition and cash flows.

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Costs associated with new transmission projects could have a material adverse effect on our results of operations, financial condition and cash flows.

Annually, PJM performs a review of the capital additions required to provide reliable electric transmission services throughout its territory. PJM traditionally allocated the costs of constructing these facilities to those entities that benefited directly from the additions. Over the last several years, however, some of the costs of constructing new large transmission facilities have been “socialized” across PJM without a direct relationship between the costs assigned to and benefits received by particular PJM members. To date, the additional costs charged to AES Ohio for new large transmission approved projects have not been material. Over time, as more new transmission projects are constructed and if the allocation method is not changed, the annual costs could become material. AES Ohio is recovering the Ohio retail jurisdictional share of these allocated costs from its retail customers through the Transmission Rider. To the extent that any costs in the future are material and we are unable to recover them from our customers, such costs could have a material adverse effect on our results of operations, financial condition and cash flows.

Our transmission and distribution system is subject to operational, reliability and capacity risks.

The ongoing reliable performance of our transmission and distribution system is subject to risks due to, among other things, weather damage, intentional or unintentional damage, equipment or process failure, catastrophic events, such as fires and/or explosions, facility outages, labor disputes, accidents or injuries, operator error or inoperability of key infrastructure internal or external to us and events occurring on third party systems that interconnect to and affect our system. The failure of our transmission and distribution system to fully operate and deliver the energy demanded by customers could have a material adverse effect on our results of operations, financial condition and cash flows, and if such failures occur frequently and/or for extended periods of time, could result in adverse regulatory action. In addition, the advent and quick adoption of new products and services that require increased levels of electrical energy cannot be predicted and could result in insufficient transmission and distribution system capacity. Also, as a result of the above risks and other potential risks and hazards associated with transmission and distribution operations, we may from time to time become exposed to significant liabilities for which we may not have adequate insurance coverage. We maintain an amount of insurance protection that we believe is adequate, but there can be no assurance that our insurance will be sufficient or effective under all circumstances and against all hazards or liabilities to which we may be subject. Further, any increased costs or adverse changes in the insurance markets may cause delays or inability in maintaining insurance coverage on terms similar to those presently available to us or at all. A successful claim for which we are not fully insured could have a material adverse effect on our results of operations, financial condition and cash flows.

Current and future conditions in the economy may adversely affect our customers, suppliers and other counterparties, which could materially and adversely affect our results of operations, financial condition and cash flows.

Our business, results of operations, financial condition and cash flows have been and will continue to be affected by general economic conditions. Slowing economic growth, credit market conditions, fluctuating consumer and business confidence, fluctuating commodity prices and other challenges currently affecting the general economy, have caused and may continue to cause some of our customers to experience deterioration of their businesses, cash flow shortages and difficulty obtaining financing. As a result, existing customers may reduce their electricity consumption and may not be able to fulfill their payment obligations to us in a normal, timely fashion. In addition, some existing commercial and industrial customers may discontinue their operations. Sustained downturns, recessions or a sluggish economy generally affect the markets in which we operate and negatively influence our energy operations. A contracting, slow or sluggish economy could reduce the demand for energy in areas in which we are doing business. For example, during economic downturns, our commercial and industrial customers may see a decrease in demand for their products, which in turn may lead to a decrease in the amount of energy they require. Furthermore, projects which may result in potential new customers may be delayed until economic conditions improve. Some of our suppliers, customers, other counterparties and others with whom we transact business experience financial difficulties, which may impact their ability to fulfill their obligations to us. For example, our counterparties on forward purchase contracts and financial institutions involved in our credit facility may become unable to fulfill their contractual obligations to us or result in their declaring bankruptcy or similar insolvency-like proceedings. We may not be able to enter into replacement agreements on terms as favorable as our existing agreements. Reduced demand for our electric services, failure by our customers to timely remit full payment owed to us and supply delays or unavailability could have a material adverse effect on our results of operations, financial

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condition and cash flows. In particular, the projected economic growth and total employment in AES Ohio’s service territory are important to the realization of our forecasts for annual energy sales.

Economic conditions relating to the asset performance and interest rates of our pension and postemployment benefit plans could materially and adversely impact our results of operations, financial condition and cash flows.

Pension costs are based upon a number of actuarial assumptions, including an expected long-term rate of return on pension plan assets, level of employer contributions, the expected life span of pension plan beneficiaries and the discount rate used to determine the present value of future pension obligations. Any of these assumptions could prove to be wrong, resulting in a shortfall of our pension and postemployment benefit plan assets compared to obligations under our pension and postemployment benefit plans. Further, the performance of the capital markets affects the values of the assets that are held in trust to satisfy future obligations under our pension and postemployment benefit plans. These assets are subject to market fluctuations and will yield uncertain returns, which may fall below our projected return rates. A decline in the market value of the pension and postemployment benefit plan assets will increase the funding requirements under our pension and postemployment benefit plans if the actual asset returns do not recover these declines in value in the foreseeable future. Future pension funding requirements, and the timing of funding payments, may also be subject to changes in legislation. We are responsible for funding any shortfall of our pension and postemployment benefit plans’ assets compared to obligations under the pension and postemployment benefit plans, and a significant increase in our pension liabilities could materially and adversely impact our results of operations, financial condition and cash flows. We are subject to the Pension Protection Act of 2006, which requires underfunded pension plans to improve their funding ratios within prescribed intervals based on the level of their underfunding. As a result, our required contributions to these plans, at times, have increased and may increase in the future. In addition, our pension and postemployment benefit plan liabilities are sensitive to changes in interest rates. When interest rates decrease, the discounted liabilities increase benefit expense and funding requirements. Further, changes in demographics, including increased numbers of retirements or changes in life expectancy assumptions, may also increase the funding requirements for the obligations related to the pension and other postemployment benefit plans. Declines in market values and increased funding requirements could have a material adverse effect on our results of operations, financial condition and cash flows.

Counterparties providing materials or services may fail to perform their obligations, which could materially and adversely impact our results of operations, financial condition and cash flows.

We enter into transactions with and rely on many counterparties in connection with our business, including for purchased power, for our capital improvements and additions and to provide professional services, such as actuarial calculations, payroll processing and various consulting services. If any of these counterparties fails to perform its obligations to us or becomes unavailable, our business plans may be materially disrupted, we may be forced to discontinue certain operations if a cost-effective alternative is not readily available or we may be forced to enter into alternative arrangements at then-current market prices that may exceed our contractual prices and cause delays. Although our agreements are designed to mitigate the consequences of a potential default by the counterparty, our actual exposure may be greater than relief provided by these mitigation provisions. Any of the foregoing could result in regulatory actions, cost overruns, delays or other losses, any of which (or a combination of which) could have a material adverse effect on our results of operations, financial condition and cash flows.

Further, our construction program calls for extensive expenditures for capital improvements and additions, including the installation of upgrades, improvements to transmission and distribution facilities, as well as other initiatives. As a result, we may engage contractors and enter into agreements to acquire necessary materials and/or obtain required construction related services. In addition, some contracts may provide for us to assume the risk of price escalation and availability of certain metals and key components. This could force us to enter into alternative arrangements at then-current market prices that may exceed our contractual prices or cause construction delays in a significant manner. It could also subject us to enforcement action by regulatory authorities to the extent that such a contractor failure resulted in a failure by AES Ohio to comply with requirements or expectations, particularly with regard to the cost of the project. If these events were to occur, we might incur losses or delays in completing construction.

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Accidental improprieties and undetected errors in our internal controls and information reporting could result in the disallowance of cost recovery, noncompliant disclosure or incorrect payment processing.

Our internal controls, accounting policies and practices and internal information systems are designed to enable us to capture and process transactions and information in a timely and accurate manner in compliance with GAAP in the United States of America, laws and regulations, taxation requirements and federal securities laws and regulations in order to, among other things, disclose and report financial and other information in connection with the recovery of our costs and with our reporting requirements under federal securities, tax and other laws and regulations and to properly process payments. We have also implemented corporate governance, internal control and accounting policies and procedures in connection with the Sarbanes-Oxley Act of 2002. Our internal controls and policies have been and continue to be closely monitored by management and our Board of Directors. While we believe these controls, policies, practices and systems are adequate to verify data integrity, unanticipated and unauthorized actions of employees, temporary lapses in internal controls due to shortfalls in oversight or resource constraints could lead to improprieties and undetected errors that could result in the disallowance of cost recovery, noncompliant disclosure and reporting or incorrect payment processing. The consequences of these events could have a material adverse effect on our results of operations, financial condition and cash flows.

If we are unable to maintain a qualified and properly motivated workforce, it could have a material adverse effect on our results of operations, financial condition and cash flows.

One of the challenges we face is to retain a skilled, efficient and cost-effective workforce while recruiting new talent to replace losses in knowledge and skills due to resignations, terminations or retirements. This undertaking could require us to make additional financial commitments and incur increased costs. If we are unable to successfully attract and retain an appropriately qualified workforce, it could have a material adverse effect on our results of operations, financial condition and cash flows. In addition, we have employee compensation plans that reward the performance of our employees. We seek to ensure that our compensation plans encourage acceptable levels for risk and high performance through pay mix, performance metrics and timing. We may not be able to successfully train new personnel as current workers with significant knowledge and expertise retire. We also may be unable to staff our business with qualified personnel in the event of significant absenteeism related to a pandemic illness. Excessive risk-taking by our employees to achieve performance targets, through mitigated by policies and procedures, could result in events that have a material adverse effect on our results of operations, financial condition and cash flows.

We are subject to collective bargaining agreements that could adversely affect our business, results of operations, financial condition and cash flows.

We are subject to collective bargaining agreements with employees who are members of a union. Over half of our employees are represented by a collective bargaining agreement. While we believe that we maintain a satisfactory relationship with our employees, it is possible that labor disruptions affecting some or all of our operations could occur during the period of the collective bargaining agreement or at the expiration of the collective bargaining agreement before a new agreement is negotiated. Work stoppages by, or poor relations or ineffective negotiations with, our employees or other workforce issues could have a material adverse effect on our results of operations, financial condition and cash flows.

The use of non-derivative and derivative instruments in the normal course of business could result in losses that could materially and adversely impact our results of operations, financial position and cash flows.

From time to time, we use non-derivative and derivative instruments, such as swaps, options, futures and forwards, to manage financial risks. These trades are affected by a range of factors, including fluctuations in interest rates and optimization opportunities. We have attempted to manage our risk exposure by establishing and enforcing risk limits and risk management policies. Despite our efforts, however, these risk limits and management policies may not work as planned and fluctuating prices and other events could adversely affect our results of operations, financial condition and cash flows. In the absence of actively quoted market prices and pricing information from external sources, the valuation of these instruments can involve management’s judgment or the use of estimates. As a result, changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of some of these contracts. We could also recognize financial losses as a result of volatility in the market values of these contracts, a counterparty failing to perform or the underlying transactions which the instruments are

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intended to hedge failing to materialize, which could result in a material adverse effect on our results of operations, financial condition and cash flows.

Potential security breaches (including cybersecurity breaches) and terrorism risks could materially and adversely affect our businesses.

We operate in a highly regulated industry that requires the continued operation of sophisticated systems and network infrastructure at our transmission, distribution and other facilities. We also use various financial, accounting and other systems in our businesses. These systems and facilities are vulnerable to unauthorized access due to hacking, viruses, other cybersecurity attacks and other causes. In particular, given the importance of energy and the electric grid, there is the possibility that our systems and facilities could be targets of terrorism or acts of war. We have implemented measures to help prevent unauthorized access to our systems and facilities, including network and system monitoring, identification and deployment of secure technologies and certain other measures to comply with mandatory regulatory reliability standards. Pursuant to NERC requirements, we have a robust cybersecurity plan in place and are subject to regular audits by an independent auditor approved by the NERC. We routinely test our systems and facilities against these regulatory requirements in order to measure compliance, assess potential security risks and identify areas for improvement. In addition, we provide cybersecurity training for our employees and perform exercises designed to raise employee awareness of cyber risks on a regular basis. To date, cyber-attacks on our business and operations have not had a material impact on our operations or financial results. Despite these efforts, if our systems or facilities were to be breached or disabled, we may be unable to recover them in a timely manner to fulfill critical business functions, including the supply of electric services to our customers, and we could experience decreases in revenues and increases in costs that could materially and adversely affect our results of operations, financial condition and cash flows

In the course of our business, we also store and use customer, employee and other personal information and other confidential and sensitive information, including personally identifiable information and personal financial information. If our or our third-party vendors’ systems were to be breached or disabled, sensitive and confidential information and other data could be compromised, which could result in negative publicity, remediation costs and potential litigation, damages, consent orders, injunctions, fines and other relief.

To help mitigate these risks, we maintain insurance coverage against some, but not all, potential losses, including coverage for illegal acts against us. However, insurance may not be adequate to protect us against all costs and liabilities associated with these risks.

RISKS ASSOCIATED WITH GOVERNMENTAL REGULATION AND LAWS

We may not always be able to recover our costs to deliver electricity to our retail customers. The costs we can recover and the return on capital we are permitted to earn for the most substantial part of our business are regulated and governed by the laws of Ohio and the rules, policies and procedures of the PUCO.

In Ohio, transmission and distribution businesses are regulated. Even though rate regulation is premised on full recovery of prudently incurred costs and a reasonable rate of return on invested capital, there can be no assurance that the PUCO will agree that all of our costs have been prudently incurred or are recoverable. There can be no assurance that the regulatory process in which rates are determined will always result in rates that will produce a full or timely recovery of our costs or permitted rates of return. Accordingly, the revenue AES Ohio receives may or may not match its expenses at any given time.

Changes in or reinterpretations of, or the unexpected application of the laws, rules, policies and procedures that set or govern electric rates, permitted rates of return, rate structures, operation of a competitive bid structure to supply retail generation service to SSO customers, reliability initiatives, capital expenditures and investments and the recovery of these and other costs on a full or timely basis through rates, power market prices and the frequency and timing of rate increases, could have a material adverse effect on our results of operations, financial condition and cash flows.

Our increased costs due to renewable energy and energy efficiency requirements may not be fully recoverable in the future.

Ohio law contains annual targets for energy efficiency which began in 2009 and require increasing energy reductions each year compared to a baseline energy usage, up to 22.3% by 2027. Peak demand reduction targets

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began in 2009 with increases in required percentages each year, up to 7.75% by 2020. The renewable energy standards have increased our costs and are expected to continue to increase (and could materially increase) these costs. AES Ohio is currently entitled to recover costs associated with its renewable energy compliance, as well as its energy efficiency and demand response programs. If, in the future, we are unable to timely or fully recover these costs, it could have a material adverse effect on our results of operations, financial condition and cash flows. In addition, if we were found not to be in compliance with these standards, monetary penalties could apply. These penalties are not permitted to be recovered from customers and significant penalties could have a material adverse effect on our results of operations, financial condition and cash flows. The demand reduction and energy efficiency standards by design result in reduced energy and demand that could have a material adverse effect on our results of operations, financial condition and cash flows.

We are subject to numerous environmental laws, rules and regulations that require capital expenditures, increase our cost of operations and may expose us to environmental liabilities.

We are subject to various federal, state, regional and local environmental protection and health and safety laws and regulations governing, among other things, the remediation of retired generation and other facilities, storage, handling, use, storage, disposal and transportation of coal combustion residuals and other materials, some of which may be defined as hazardous materials, the emission and discharge of hazardous and other materials or items into the environment, such as GHGs; and the health and safety of our employees. Such laws, rules and regulations can become stricter over time, and we could also become subject to additional environmental laws, rules and regulations and other requirements in the future. Environmental laws, rules and regulations also require us to comply with inspections and obtain and comply with a wide variety of environmental licenses, permits, inspections and other governmental authorizations. These laws, rules and regulations often require a lengthy and complex process of obtaining and renewing licenses, permits and other governmental authorizations from federal, state and local agencies. If we are not able to timely comply with inspections and obtain, maintain or comply with all environmental laws, rules and regulations and all licenses, permits and other government authorizations required to operate our business, then our operations could be prevented, delayed or subject to additional costs. A violation of environmental laws, rules, regulations, licenses, permits or other requirements can result in substantial fines, penalties, other sanctions, permit revocation, facility shutdowns, the imposition of stricter environmental standards and controls or other injunctive measures affecting operating assets. In addition, any actual or alleged violation of these laws, rules or regulations and other requirements may require us to expend significant resources to defend against any such actual or alleged violations. AES Ohio has an ownership interest in OVEC, which operates generating stations. We generally are responsible for our respective pro rata share of expenditures for complying with environmental laws, rules, regulations, licenses, permits and other requirements at this generating station, but have limited control over the compliance measures taken by the operator. Under certain environmental laws, we could also be held strictly, jointly and severally responsible for costs relating to contamination at our past or present facilities and at third-party waste disposal sites. We could also be held liable for human exposure to such hazardous substances or for other environmental damage.

In particular, we are subject to potentially significant remediation expenses, enforcement initiatives, private-party lawsuits and reputational risk associated with CCR, which consists of bottom ash, fly ash, boiler slag and flue gas desulfurization materials generated from burning coal generated at our formerly owned coal-fired generation plant sites. CCR currently remains onsite at OVEC's EGUs, including in CCR ponds. Compliance with the CCR rule, amendments to the federal CCR rule, or other federal, state, or foreign rules or programs addressing CCR may require us to incur substantial costs. In addition, CCR, particularly with respect to its beneficial use and regulation as nonhazardous solid waste, has been the subject of interest from environmental non-governmental organizations and the media. Any of the foregoing could have a material adverse effect on our results of operations, financial condition and cash flows.

From time to time we are subject to enforcement and litigation actions for claims of noncompliance with environmental laws, rules and regulations or other environmental requirements. We cannot assure that we will be successful in defending against any claim of noncompliance. Any actual or alleged violation of these laws, rules, regulations and other requirements may require us to expend significant resources to defend against any such actual or alleged violations and expose us to unexpected costs. Our costs and liabilities relating to environmental matters could have a material adverse effect on our results of operations, financial condition and cash flows. See Item 1 - Business - Environmental Matters for a more comprehensive discussion of these and other environmental matters impacting us.

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Concerns about GHG emissions and the potential risks associated with climate change have led to increased regulation and other actions that could impact our business.

Although we have exited our generation business, our continuing operations face risks from regulatory developments related to climate change, as well as the physical impacts of climate change. At the federal, state and regional levels, policies are under development or have been developed to regulate GHG emissions. There currently is no U.S. federal legislation imposing mandatory GHG emission reductions (including for CO2) that affects our current operations. In addition, it is likely that there will be increased focus on climate change from a President Biden administration and a Democrat-controlled U.S. Congress, both of which may result in additional legislation and regulations regarding GHG emissions.

In December 2015, the parties to the United Nations Framework Convention on Climate Change convened for the 21st Conference of the parties and the resulting Paris Agreement established a long-term goal of keeping the increase in global average temperature well below 2°C above pre-industrial levels. We anticipate that the Paris Agreement will continue the trend toward efforts to de-carbonize the global economy. Although the U.S. was officially able to withdraw from the Paris Agreement on November 4, 2020, on January 20, 2021, President Biden began the 30-day process of rejoining the Paris Agreement, which became effective for the U.S. on February 19, 2021. In November 2021, the international community gathered in Glasgow at the 26th Conference to the Parties on the UN Framework Convention on Climate Change (COP26), during which multiple announcements were made, including a call for parties to eliminate certain fossil fuel subsidies and pursue further action on non-carbon dioxide GHGs.

Any existing or future international, federal, state or regional legislation or regulation of GHG emissions, to the extent directly or indirectly applicable to our electric transmission and distribution operations, could have a material adverse impact on our financial performance.

Furthermore, according to the Intergovernmental Panel on Climate Change, physical risks from climate change could include, but are not limited to, increased runoff and earlier spring peak discharge in many glacier and snow-fed rivers, warming of lakes and rivers, an increase in sea level, changes and variability in precipitation and in the intensity and frequency of extreme weather events. Physical impacts may have the potential to significantly affect our business and operations. For example, extreme weather events could result in increased downtime and operation and maintenance costs at our electric power transmission and distribution assets and facilities. Variations in weather conditions, primarily temperature and humidity, would also be expected to affect the energy needs of customers. A decrease in energy consumption could decrease our revenues. In addition, while revenues would be expected to increase if the energy consumption of customers increased, such increase could prompt the need for additional investment in generation capacity.

If any of the foregoing risks materialize, we expect our costs to increase or revenues to decrease and there could be a material adverse effect on our business and on our consolidated results of operations, financial condition, cash flows and reputation if such changes are significant. Please see “Item 1. Business - Environmental Matters” for additional information of environmental matters impacting us, including those relating to regulation of GHG emissions.

If we were found not to be in compliance with the mandatory reliability standards, we could be subject to sanctions, including substantial monetary penalties.

As an owner of a bulk power transmission system, AES Ohio is subject to mandatory reliability standards promulgated by the NERC and enforced by the FERC. The standards are based on the functions that need to be performed to ensure the bulk power system operates reliably and is guided by reliability and market interface principles. In addition, AES Ohio is subject to Ohio reliability standards and targets. Compliance with reliability standards may subject us to higher operating costs or increased capital expenditures. Although we expect to recover costs and expenditures from customers through regulated rates, there can be no assurance that the PUCO will approve full recovery in a timely manner. If we were found not to be in compliance with the mandatory reliability standards, we could be subject to sanctions, including substantial monetary penalties, which could have a material adverse effect on our results of operations, financial condition and cash flows.

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We are subject to extensive laws and local, state and federal regulation, as well as litigation and other proceedings that affect our operations and costs.

We are subject to extensive regulation at the federal, state, and local levels. For example, at the federal level, AES Ohio is regulated by the FERC and the NERC and, at the state level, by the PUCO. The regulatory power of the PUCO over AES Ohio is both comprehensive and typical of the traditional form of regulation generally imposed by state public utility commissions. We face the risk of unexpected or adverse regulatory action. Regulatory discretion is reasonably broad in Ohio. AES Ohio is subject to regulation by the PUCO as to our services and facilities, the valuation of property, the construction, purchase, or lease of electric facilities, the classification of accounts, rates of depreciation, the increase or decrease in retail rates and charges, the issuance of securities and incurrence of debt, the acquisition and sale of some public utility properties or securities and certain other matters. As a result of the Energy Policy Act of 2005 and subsequent legislation affecting the electric utility industry, we have been required to comply with rules and regulations in areas including mandatory reliability standards, cybersecurity, transmission expansion and energy efficiency. Complying with the regulatory environment to which we are subject requires us to expend a significant amount of funds and resources. The failure to comply with this regulatory environment could subject us to substantial financial costs and penalties and changes, either forced or voluntary, in the way we operate our business that could have a material adverse effect on our results of operations, financial condition and cash flows.

We are subject to litigation, regulatory proceedings, administrative proceedings, audits, settlements, investigations and claims from time to time that require us to expend significant funds to address. There can be no assurance that the outcome of these matters will not have a material adverse effect on our business, results of operations, financial condition and cash flows. Asbestos and other regulated substances are, and may continue to be, present at our facilities, and we have been named as a defendant in asbestos litigation. The continued presence of asbestos and other regulated substances at these facilities could result in additional litigation being brought against us, which could have a material adverse effect on our results of operations, financial condition and cash flows. See Item 1 - Business - Competition and Regulation, Item 1 - Business - Environmental Matters, and Item 3 - Legal Proceedings for a summary of significant regulatory matters and legal proceedings involving us.

Tax legislation initiatives or challenges to our tax positions could adversely affect our operations and financial condition.

We are subject to the tax laws and regulations of the U.S. federal, state and local governments. From time to time, legislative measures may be enacted that could adversely affect our overall tax positions regarding income or other taxes. There can be no assurance that our effective tax rate or tax payments will not be adversely affected by these legislative measures.

In addition, U.S. federal, state and local tax laws and regulations are extremely complex and subject to varying interpretations. There can be no assurance that our tax positions will be sustained if challenged by relevant tax authorities and if not sustained, there could be a material adverse effect on our results of operations, financial condition and cash flows.

RISKS RELATED TO OUR INDEBTEDNESS AND FINANCIAL CONDITION

The level of our indebtedness, and the security provided for this indebtedness, could adversely affect our financial flexibility, and a material change in market interest rates could adversely affect our results of operations, financial condition and cash flows.

As of December 31, 2021, the carrying value of DPL's debt was $1,460.5 million and the carrying value of AES Ohio's debt was $574.3 million. Of AES Ohio's indebtedness, there was $565.0 million of First Mortgage Bonds as of December 31, 2021, which are secured by the pledge of substantially all of the assets of AES Ohio under the terms of AES Ohio’s First & Refunding Mortgage. DPL's revolving credit facility is also secured by a pledge of common stock that DPL owns in AES Ohio. This level of indebtedness and related security has important consequences, including:

•increasing our vulnerability to general adverse economic and industry conditions;

•requiring us to dedicate a substantial portion of our cash flow from operations to make payments on our indebtedness, thereby reducing the availability of our cash flow to fund other corporate purposes;

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•limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; and

•limiting, along with the financial and other restrictive covenants in our indebtedness, our ability to borrow additional funds, as needed.

If AES Ohio issues additional debt in the future, we will be subject to the terms of such debt agreements and be required to obtain regulatory approvals. To the extent we increase our leverage, the risks described above would also increase. Further, actual cash requirements in the future may be greater than expected. Accordingly, our cash flows from operations may not be sufficient to repay all of the outstanding debt as it becomes due and, in that event, we may not be able to borrow money, sell assets or otherwise raise funds on acceptable terms, or at all, to refinance our debt as it becomes due. Additionally, any failure to comply with covenants in the instruments governing our debt could result in an event of default thereunder. For a further discussion of our outstanding debt obligations, see Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition, Liquidity and Capital Requirements and Note 6 – Long-term debt of Notes to DPL's Consolidated Financial Statements and Note 6 – Long-term debt of Notes to AES Ohio's Financial Statements.

DPL and AES Ohio have variable rate debt that bears interest based on a prevailing rate that is reset based on a market index that can be affected by market demand, supply, market interest rates and other market conditions. We also maintain both cash on deposit and investments in cash equivalents from time to time that could be impacted by interest rate fluctuations. As such, any event which impacts market interest rates could have a material effect on our results of operations, financial condition and cash flows. In addition, rating agencies issue ratings on our credit and our debt that affect our borrowing costs under our financial arrangements and affect our potential pool of investors and funding sources. Credit ratings also govern the collateral provisions of certain of our contracts. If rating agencies downgrade our credit ratings further, our borrowing costs would likely further increase, our potential pool of investors and funding resources could be reduced, and we could be required to post additional collateral under select contracts. These events would likely reduce our liquidity and profitability and could have a material adverse effect on our results of operations, financial condition and cash flows.

We rely on access to the financial markets. General economic conditions and disruptions in the financial markets could adversely affect our ability to raise capital on favorable terms, or at all, and cause increases in our interest expense.

From time to time we rely on access to the capital and credit markets as a source of liquidity for capital requirements not satisfied by operating cash flows. These capital and credit markets experience volatility and disruption from time to time and the ability of corporations to raise capital can be negatively affected. Disruptions in the capital and credit markets make it harder and more expensive to raise capital. Our ability to raise capital on favorable terms, or at all, can be adversely affected by unfavorable market conditions or declines in our creditworthiness, and we may be unable to access adequate funding to refinance our debt as it becomes due or finance capital expenditures. The extent of any impact will depend on several factors, including our operating cash flows, financial condition and prospects, the overall supply and demand in the credit markets, our credit ratings, credit capacity, the cost of financing, the financial condition, performance and prospects of other companies in our industry or with similar financial circumstances and other general economic and business conditions. It may also depend on the performance of credit counterparties and financial institutions with which we do business. Access to funds under our existing financing arrangements is also dependent on the ability of our counterparties to meet their financing commitments and our satisfying conditions to borrowing. Our inability to obtain financing on reasonable terms, or at all, with creditworthy counterparties could adversely affect our results of operations, financial condition and cash flows. If our available funding is limited or we are forced to fund our operations at a higher cost, these conditions may require us to curtail our business activities and increase our cost of funding, both of which would adversely impact our profitability. See Note 6 – Long-term debt of Notes to DPL's Consolidated Financial Statements and Note 6 – Long-term debt of Notes to AES Ohio's Financial Statements for information regarding indebtedness. See also Item 7A - Quantitative and Qualitative Disclosure about Market Risk for information related to market risks.

DPL is a holding company and parent of AES Ohio and other subsidiaries. DPL’s cash flow is dependent on the cash flows of AES Ohio and its other subsidiaries and their ability to pay cash to DPL.

DPL is a holding company with no material assets other than the ownership of its subsidiaries, and accordingly all cash is generated by the activities of its subsidiaries, principally AES Ohio. As such, DPL’s cash flow is largely dependent on the cash flows of AES Ohio and its ability to pay cash to DPL. The impact of the December 2019

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ESP and related regulatory proceedings on AES Ohio's revenues adversely affects DPL. In addition, there are a number of other rate proceedings pending or anticipated that we cannot predict the outcome of, which could adversely affect DPL. See Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements for descriptions of AES Ohio's ESP and other regulatory proceedings. In addition, AES Ohio is regulated by the PUCO, which possesses broad oversight powers to ensure that the needs of utility customers are being met. The PUCO could impose additional restrictions on the ability of AES Ohio to distribute, loan or advance cash to DPL pursuant to these broad powers. A significant limitation on AES Ohio’s ability to pay dividends or loan or advance funds to DPL could have a material adverse effect on DPL’s results of operations, financial condition and cash flows.

Our ownership by AES subjects us to potential risks that are beyond our control.

All of AES Ohio’s common stock is owned by DPL, and DPL is an indirectly wholly owned subsidiary of AES. Due to our relationship with AES, any adverse developments and announcements concerning AES may impair our ability to access the capital markets and to otherwise conduct business. In particular, downgrades in AES’s credit ratings could result in DPL’s or AES Ohio’s credit ratings being downgraded.

Item 1B – Unresolved Staff Comments

None.

Item 2 – Properties

Information relating to our properties is contained in Note 3 – Property, Plant and Equipment of Notes to DPL's Consolidated Financial Statements and Note 3 – Property, Plant and Equipment of Notes to AES Ohio's Financial Statements.

Our executive offices are located at 1065 Woodman Drive, Dayton, Ohio. This facility and the remainder of our material properties are owned directly by AES Ohio. These properties include our distribution service center in Dayton, Ohio, various substations and other transmission and distribution equipment and property.

Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage.

Item 3 – 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 in light of 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. For more information, see Note 2 – Regulatory Matters and Note 10 – Contractual Obligations, Commercial Commitments and Contingencies of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters and Note 10 – Contractual Obligations, Commercial Commitments and Contingencies of Notes to AES Ohio's Financial Statements.

The following additional information is incorporated by reference into this Item: information about the legal proceedings contained in Item 1 - Business - Competition and Regulation and Item 1 - Business - Environmental Matters.

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Item 4 – Mine Safety Disclosures

Not applicable.

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PART II

Item 5 – Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

All of the outstanding common stock of DPL is owned indirectly by AES and directly by a wholly-owned subsidiary of AES. As a result, DPL’s stock is not listed for trading on any stock exchange. AES Ohio’s common stock is held solely by DPL and, as a result, is not listed for trading on any stock exchange.

Dividends and return of capital

During the years ended December 31, 2021, 2020 and 2019, DPL paid no dividends to AES. AES Ohio declares and pays dividends on its common shares to its parent DPL from time to time as declared by the AES Ohio board. Return of capital payments were declared in the amount of $42.0 million and paid in the amount of $52.0 million in the year ended December 31, 2021, declared in the amount of $52.7 million and paid in the amount of $42.7 million in the year ended December 31, 2020 and declared and paid in the amount of $95.0 million in the year ended December 31, 2019.

DPL’s Amended Articles of Incorporation and the DPL Credit Agreement contain restrictions on DPL’s ability to make dividends, distributions and affiliate loans (other than to its subsidiaries), including restrictions on making such dividends, distributions and loans if certain financial ratios exceed specified levels and DPL’s senior long-term debt rating from a rating agency is below investment grade. As of December 31, 2021, DPL did not meet these requirements. As a result, as of December 31, 2021, DPL was prohibited under its Articles of Incorporation and Credit Agreement from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries).

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Item 6 – Selected Financial Data

The following table presents our selected financial data, which should be read in conjunction with DPL's audited Consolidated Financial Statements and the related Notes thereto, AES Ohio's audited Financial Statements and the related Notes thereto and Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations. The “Results of Operations” discussion in Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations addresses significant fluctuations in operating data. DPL’s common stock is wholly-owned by an indirect subsidiary of AES; therefore, DPL does not report earnings or dividends on a per-share basis. Other information that management believes is important in understanding trends in our business is also included in this table. Prior period amounts have been restated to reflect discontinued operations in all periods presented. Our historical results are not necessarily indicative of our future results.

DPL
	Years ended December 31,
$ in millions except per share amounts or as indicated	2021		2020		2019		2018		2017
Total electric sales (millions of kWh)	14,330		13,918		14,628		15,728		14,679
Statements of Operations Data
Revenues	$	672.7	$	660.5	$	743.7	$	747.3	$	729.0
Operating income	$	85.3	$	89.1	$	154.9	$	142.6	$	126.5
Income / (loss) from continuing operations	$	22.9	$	(6.4)	$	51.8	$	36.7	$	12.3
Income / (loss) from discontinued operations, net of tax (a)	$	(0.8)	$	5.4	$	53.6	$	33.4	$	(106.9)
Net income / (loss)	$	22.1	$	(1.0)	$	105.4	$	70.1	$	(94.6)
Capital expenditures	$	191.3	$	157.3	$	156.5	$	96.1	$	110.5
Balance Sheet Data (end of period):
Total assets	$	2,171.8	$	2,036.0	$	1,935.8	$	1,883.1	$	2,049.2
Long-term debt (b)	$	1,395.3	$	1,393.4	$	1,223.3	$	1,372.3	$	1,700.2
Total common shareholder's deficit	$	(121.4)	$	(283.5)	$	(371.9)	$	(471.7)	$	(584.3)

(a)Fixed-asset impairments of $3.5 million, $2.8 million, and $175.8 million in 2019, 2018 and 2017, respectively, have been reclassified to discontinued operations.

(b)Excluded from this line are the current maturities of long-term debt.

AES Ohio
	Years ended December 31,
$ in millions except per share amounts or as indicated	2021		2020		2019		2018		2017
Total electric sales (millions of kWh)	14,330		13,918		14,628		15,194		14,401
Statements of Operations Data
Revenues	$	663.7	$	652.1	$	735.4	$	738.7	$	720.0
Operating income	$	79.5	$	83.5	$	150.7	$	135.1	$	122.1
Income from continuing operations	$	47.1	$	51.1	$	124.9	$	86.7	$	57.4
Loss from discontinued operations, net of tax (a)	$	—	$	—	$	—	$	—	$	(40.4)
Net income	$	47.1	$	51.1	$	124.9	$	86.7	$	17.0
Capital expenditures	$	189.3	$	153.3	$	155.5	$	85.6	$	90.7
Balance Sheet Data (end of period):
Total assets	$	2,162.6	$	2,014.7	$	1,883.2	$	1,819.6	$	1,695.9
Long-term debt (b)	$	574.1	$	573.9	$	434.6	$	581.5	$	642.0
Total common shareholder's equity	$	782.2	$	616.7	$	473.4	$	445.3	$	330.7

(a)    Fixed-asset impairment of $66.3 million in 2017 has been reclassified to discontinued operations.

(b)    Excluded from this line are the current maturities of long-term debt.

29

Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with DPL’s audited Consolidated Financial Statements and the related Notes thereto and AES Ohio’s audited Financial Statements and the related Notes thereto included in Item 8 – Financial Statements and Supplementary Data of this Form 10-K. The following discussion contains forward-looking statements. Our actual results may differ materially from the results suggested by these forward-looking statements. See “Forward-Looking Statements” at the beginning of this Form 10-K and Item 1A – Risk Factors. For a list of certain abbreviations or acronyms in this discussion, see Glossary of Terms at the beginning of this Form 10-K.

OVERVIEW OF 2021 RESULTS AND STRATEGIC PERFORMANCE

The most important matters on which we focus in evaluating our financial condition and operating performance and allocating our resources include: (i) recurring factors which have significant impacts on operating performance such as: regulatory action, environmental matters, weather and weather-related damage in our service area, customer growth, and the local economy; (ii) our progress on performance improvement and growth strategies designed to maintain high standards in several operating areas (including safety, customer satisfaction, operations, financial and enterprise-wide performance, talent management/people, capital allocation/sustainability and corporate social responsibility) simultaneously; and (iii) our short-term and long-term financial and operating strategies. For a discussion of how we are impacted by regulation and environmental matters, please see Note 2 – Regulatory Matters of the Notes to DPL's Consolidated Financial Statements, Note 2 – Regulatory Matters of the Notes to AES Ohio's Financial Statements and “Environmental Matters” in “Item 1 - Business.”

Operational Excellence

Our objective is to optimize AES Ohio’s performance in the U.S. utility industry by focusing on the following areas: safety, operations (reliability and customer satisfaction), financial and enterprise-wide performance (efficiency and cost savings, talent management/people, capital allocation/sustainability and corporate social responsibility). We set and measure these objectives carefully, balancing them in a way and to a degree necessary to ensure a sustainable high level of performance in these areas simultaneously compared to our peers. We monitor our performance in these areas, and where practical and meaningful, compare performance in some areas to peer utilities. Because some of our financial and enterprise-wide performance measures are company-specific performance goals, they are not benchmarked.

Our safety performance is measured by both leading and lagging metrics. Our leading safety metrics track safety observations, safety meeting engagement and the reporting of non-injury significant injury potential incidents. Our lagging safety metrics track lost workday cases, severity rate, and recordable incidents. We are committed to excellence in safety and have implemented various programs to increase safety awareness and improve work practices.

AES Ohio measures delivery reliability by Customer Average Interruption Duration Index ("CAIDI"), System Average Interruption Duration Index ("SAIDI") and System Average Interruption Frequency Index ("SAIFI") and benchmarks the reliability metrics against other utilities at both the state and national levels. AES Ohio also measures customer centricity on more of an individual basis by the industry metric of Customers that Experience Multiple Interruption of five or more times (“CEMI-5”). We measure customer satisfaction using Research America Utilities Market Research - Consumer Insight. Monitoring performance in the areas such as competitive rates, operational reliability and customer service supports our ongoing work to deliver reliable service to our customers.

EXECUTIVE SUMMARY

The following review of results of operations compares the results for the year ended December 31, 2021 to the results for the year ended December 31, 2020. For a discussion comparing the results of operations for the year ended December 31, 2020 to the year ended December 31, 2019, see Item 7. - Management's Discussion and Analysis of Financial Condition and Results of Operations of our 2020 Annual Report on Form 10-K, filed with the SEC on February 24, 2021.

30

DPL

Compared with the prior year, DPL's results for the year ended December 31, 2021 reflect an increase in income / (loss) from continuing operations before income tax of $34.3 million, or 288%, primarily due to factors including, but not limited to:

$ in millions	2021 vs. 2020
Increase due to loss on early extinguishment of debt recorded in the prior year (see Part I, Item 1, Note 6 – Long-term debt in the Notes to DPL's Consolidated Financial Statements for further discussion)	$	31.7
Lower interest expense from debt refinancings in the prior year	8.4
Higher transmission revenues due to increase in transmission rates	5.9
Decrease due to Energy Efficiency shared savings in the prior year	(8.9)
Higher depreciation and amortization due to higher depreciable property, plant and equipment balances	(2.8)
Net change in income / (loss) from continuing operations before income tax	$	34.3

AES Ohio

Compared with the prior year, AES Ohio's results for the year ended December 31, 2021 reflect a decrease in income from continuing operations before income tax of $5.3 million, or 9%, primarily due to factors including, but not limited to:

$ in millions	2021 vs. 2020
Decrease due to Energy Efficiency shared savings in the prior year	$	(8.9)
Higher depreciation and amortization due to higher depreciable property, plant and equipment balances	(2.8)
Higher transmission revenues due to increase in transmission rates	5.9
Other	0.5
Net change in income from continuing operations before income tax	$	(5.3)

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RESULTS OF OPERATIONS – DPL

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

Statement of Operations Highlights – DPL

	Years ended December 31,						Change 2021 vs. 2020			Change 2020 vs. 2019
$ in millions	2021		2020		2019		$		%	$		%
Revenues:
Retail	$	583.3	$	586.4	$	667.3	$	(3.1)	(1)%	$	(80.9)	(12)%
Wholesale	18.8		10.1		16.2		8.7		86%	(6.1)		(38)%
RTO ancillary	50.0		44.0		43.5		6.0		14%	0.5		1%
Capacity revenues	5.9		4.2		6.2		1.7		40%	(2.0)		(32)%
Miscellaneous revenues	14.7		15.8		10.5		(1.1)		(7)%	5.3		50%
Total revenues	672.7		660.5		743.7		12.2		2%	(83.2)		(11)%
Operating costs and expenses:
Net fuel cost	0.5		1.7		2.5		(1.2)		(71)%	(0.8)		(32)%
Purchased power:
Purchased power	208.0		200.7		227.9		7.3		4%	(27.2)		(12)%
RTO charges	68.3		29.9		24.0		38.4		128%	5.9		25%
Net purchased power cost	276.3		230.6		251.9		45.7		20%	(21.3)		(8)%
Operation and maintenance	152.4		181.7		184.2		(29.3)		(16)%	(2.5)		(1)%
Depreciation and amortization	76.1		73.3		72.3		2.8		4%	1.0		1%
Taxes other than income taxes	82.1		79.4		77.9		2.7		3%	1.5		2%
Loss on disposal of business	—		4.7		—		(4.7)		(100)%	4.7		—%
Total operating costs and expenses	587.4		571.4		588.8		16.0		3%	(17.4)		(3)%
Operating income	85.3		89.1		154.9		(3.8)		(4)%	(65.8)		(42)%
Other expense, net:
Interest expense	(62.9)		(71.3)		(82.2)		8.4		(12)%	10.9		(13)%
Loss on early extinguishment of debt	—		(31.7)		(44.9)		31.7		(100)%	13.2		(29)%
Other income	—		2.0		3.7		(2.0)		(100)%	(1.7)		(46)%
Other expense, net	(62.9)		(101.0)		(123.4)		38.1		(38)%	22.4		(18)%
Income / (loss) from continuing operations before income tax (a)	$	22.4	$	(11.9)	$	31.5	$	34.3	(288)%	$	(43.4)	(138)%

(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.

The following review of consolidated results of operations compares the results for the year ended December 31, 2021 to the results for the year ended December 31, 2020. For discussion comparing the results for the year ended December 31, 2020 to the results for the year ended December 31, 2019, see Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations of our 2020 Annual Report on Form 10-K, filed with the SEC on February 24, 2021.

DPL – Revenues

Retail customers, especially residential and commercial customers, consume more electricity on warmer and colder days. Therefore, our retail sales demand is affected by the number of heating and cooling degree-days occurring during a year. Cooling degree-days typically have a more significant effect than heating degree-days since some residential customers do not use electricity to heat their homes. Additionally, our retail revenues are affected by regulated rates and riders, including the changes to our ESP, described in Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements.

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Heating and Cooling Degree-days (a)

	Years ended December 31,
	2021	2020	change	% change
Actual
Heating degree-days (a)	4,855	4,867	(12)	—	%
Cooling degree-days (a)	1,300	1,176	124	11	%
30-year average (b)
Heating-degree days	5,434	5,444
Cooling-degree days	996	995

(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.

(b)30-year average is computed from observed degree-days in the Dayton area on a trailing 30-year basis.

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

ELECTRIC SALES AND CUSTOMERS (a)
	DPL and AES Ohio
	Years ended December 31,
	2021	2020	change	% change
Retail electric sales (b)
Residential	5,401	5,330	71	1.3%
Commercial	3,562	3,438	124	3.6%
Industrial	3,675	3,533	142	4.0%
Governmental	1,179	1,148	31	2.7%
Other	20	19	1	5.3%
Total retail electric sales	13,837	13,468	369	2.7%
Wholesale electric sales (c)	493	450	43	9.6%
Total electric sales	14,330	13,918	412	3.0%
Billed electric customers (end of period)	534,192	530,670	3,522	0.7%

(a)Electric sales are presented in millions of kWh.

(b)DPL and AES Ohio retail electric sales represent the total transmission and distribution retail sales for the periods presented. SSO sales were 3,721 million kWh and 3,850 million kWh for the years ended December 31, 2021 and 2020, respectively.

(c)Wholesale electric sales are AES Ohio's 4.9% share of the generation output of OVEC.

33

The following graph shows the percentage changes in weather-normalized and actual retail electric sales volumes by customer class for the year ended December 31, 2021 compared to the prior year:

34

During the year ended December 31, 2021, Revenues increased $12.2 million to $672.7 million from $660.5 million in the same period of the prior year. This increase was a result of:

$ in millions	2021 vs. 2020
Retail
Rate
Decrease in Energy Efficiency and USF Revenue Rate Riders	$	(29.0)
Decrease due to Energy Efficiency shared savings	(8.9)
Decrease due to Storm Rider	(6.8)
Decrease in Competitive Bid Revenue Rate Rider (Standard Offer Rate)	(2.8)
Increase due to the TCRR Rider	41.9
Other	(2.1)
Net change in retail rate	(7.7)
Volume
Net increase in demand primarily due to favorable weather compared to the same period in the prior year.	5.1
Other miscellaneous	(0.5)
Total retail change	(3.1)
Wholesale
Increase primarily due to higher rates and volumes at OVEC	8.7
RTO ancillary and capacity revenues
Increase primarily due to higher transmission revenues as a result of changing from a stated rate to a formula rate in May 2020	7.7
Miscellaneous revenues
Miscellaneous revenues	(1.1)
Net change in Revenues	$	12.2

DPL – Net Purchased Power

During the year ended December 31, 2021, Net Purchased Power increased $45.7 million compared to the prior year. This increase was a result of:

$ in millions	2021 vs. 2020
Net purchased power
Purchased power
Rate
Increase due to deferrals related to the Legacy Generation Rider and OVEC costs, partially offset by pricing in the competitive bid process.	$	11.5
Volume
Decrease driven by demand from SSO customers	(4.2)
Total purchased power change	7.3
RTO charges
Increase primarily due to higher TCRR rates in the current year	38.4
Net change in purchased power	$	45.7

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DPL - Operation and Maintenance

During the year ended December 31, 2021, Operation and Maintenance expense decreased $29.3 million compared to the prior year. This decrease was a result of:

$ in millions	2021 vs. 2020
Decrease in uncollectible expenses for the low-income payment program, which is funded by the USF Revenue Rate Rider (a)	$	(15.2)
Decrease in Alternative Energy and Energy Efficiency programs (a)	(13.8)
Decrease in deferred storm costs (a)	(6.8)
Increase in TCRR costs (a)	4.2
Increase in charges from Service Company	$	1.9
Other, net	0.4
Net change in Operations and Maintenance expense	$	(29.3)

(a)    There is corresponding revenue associated with these program costs resulting in minimal impact to Net income.

DPL – Depreciation and Amortization

During the year ended December 30, 2021, Depreciation and amortization increased $2.8 million compared to the prior year. The increase was primarily the result of higher depreciable property, plant and equipment balances in the current year.

DPL – Taxes Other Than Income Taxes

During the year ended December 31, 2021, Taxes other than income taxes increased $2.7 million compared to the prior year. The increase was primarily the result of a favorable property tax true-up in the prior year, resulting from a new assessment from the state of Ohio.

DPL – Loss on Disposal of Business

During the year ended December 31, 2020, DPL recorded a Loss on disposal of business of $4.7 million due to the loss on the transfer of business interests in the Hutchings Coal Station.

DPL – Interest Expense

During the year ended December 31, 2021, Interest expense decreased $8.4 million compared to the prior year. The decrease was primarily the result of the refinancing of debt at DPL in 2020.

DPL – Loss on Early Extinguishment of Debt

During the year ended December 31, 2020, DPL recorded a Loss on early extinguishment of debt of $31.7 million primarily due to the make-whole premium payment of $30.8 million related to the redemption of the $380.0 million 7.25% Notes due 2021 in the third quarter of 2020.

DPL – Income Tax Expense From Continuing Operations

Income tax benefit decreased $5.0 million from $5.5 million in 2020 to $0.5 million in 2021. The decrease of $5.0 million was primarily due to income from continuing operations before income tax, less the reversal of excess deferred items, in the current year as compared to a loss from continuing operations before income tax, less the reversal of excess deferred items, in the prior year.

DPL – Discontinued Operations

During the years ended December 31, 2021 and 2020, DPL recorded income / (loss) from discontinued operations (net of tax) of $(0.8) million and $5.4 million, respectively. This income / (loss) relates to the generation components of Stuart and Killen, which were retired in 2018 and sold in 2019, and Conesville, which was retired in May 2020 and sold in June 2020. See Part II, Item 8, Note 14 – Discontinued Operations in the Notes to DPL's Consolidated Financial Statements for further discussion.

RESULTS OF OPERATIONS BY SEGMENT – DPL

DPL manages its business through one reportable operating segment, the Utility 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 segments. The Utility segment is discussed further below:

36

Utility Segment

The Utility segment is comprised primarily of AES Ohio’s electric transmission and distribution businesses, which distribute electricity to residential, commercial, industrial and governmental customers. AES Ohio distributes electricity to more than 534,000 retail customers who are located in a 6,000-square mile area of West Central Ohio. AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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 AES Ohio’s Hutchings Coal Station, which was closed in 2013 and transferred to a third party in the fourth quarter of 2020.

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 and loss on early extinguishment of debt on DPL’s long-term debt as well as adjustments related to purchase accounting from the Merger. The accounting policies of the reportable segments are the same as those described in Note 1 – Overview and Summary of Significant Accounting Policies. 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 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:

	Years ended December 31,
$ in millions	2021		2020		2019
Utility	$	52.8	$	58.1	$	124.3
Other	(30.4)		(70.0)		(92.8)
Income / (loss) from continuing operations before income tax	$	22.4	$	(11.9)	$	31.5

Statement 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 AES Ohio, which are included in Part II - (Statement of Operations Highlights - AES Ohio) of this Form 10-K.

37

RESULTS OF OPERATIONS – AES Ohio

Statement of Operations Highlights – AES Ohio

	Years ended December 31,						Change 2021 vs. 2020			Change 2020 vs. 2019
$ in millions	2021		2020		2019		$		%	$		%
Revenues:
Retail	$	583.3	$	586.4	$	667.3	$	(3.1)	(1)%	$	(80.9)	(12)%
Wholesale	19.5		11.0		17.2		8.5		77%	(6.2)		(36)%
RTO ancillary	49.9		44.0		43.5		5.9		13%	0.5		1%
Capacity revenues	5.9		4.2		6.2		1.7		40%	(2.0)		(32)%
Miscellaneous revenues	5.1		6.5		1.2		(1.4)		(22)%	5.3		442%
Total revenues	663.7		652.1		735.4		11.6		2%	(83.3)		(11)%
Operating costs and expenses:
Net fuel cost	0.5		1.6		2.5		(1.1)		(69)%	(0.9)		(36)%
Purchased power:
Purchased power	208.0		200.7		227.6		7.3		4%	(26.9)		(12)%
RTO charges	67.1		28.7		23.0		38.4		134%	5.7		25%
Net purchased power cost	275.1		229.4		250.6		45.7		20%	(21.2)		(8)%
Operation and maintenance	152.1		182.0		183.1		(29.9)		(16)%	(1.1)		(1)%
Depreciation and amortization	74.6		71.8		70.8		2.8		4%	1.0		1%
Taxes other than income taxes	81.9		79.1		77.7		2.8		4%	1.4		2%
Loss on disposal of business	—		4.7		—		(4.7)		(100)%	4.7		—%
Total operating costs and expenses	584.2		568.6		584.7		15.6		3%	(16.1)		(3)%
Operating income	79.5		83.5		150.7		(4.0)		(5)%	(67.2)		(45)%
Other expense, net:
Interest expense	(24.2)		(24.3)		(26.0)		0.1		—%	1.7		(7)%
Other expense	(2.5)		(1.1)		(0.4)		(1.4)		127%	(0.7)		175%
Other expense, net	(26.7)		(25.4)		(26.4)		(1.3)		5%	1.0		(4)%
Income before income tax (a)	$	52.8	$	58.1	$	124.3	$	(5.3)	(9)%	$	(66.2)	(53)%

(a)For purposes of discussing operating results, we present and discuss Income 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.

The following review of results of operations compares the results for the year ended December 31, 2021 to the results for the year ended December 31, 2020. For discussion comparing the results for the year ended December 31, 2020 to the results for the year ended December 31, 2019, see Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations of our 2020 Annual Report on Form 10-K, filed with the SEC on February 24, 2021.

AES Ohio – Revenues

Retail customers, especially residential and commercial customers, consume more electricity on warmer and colder days. Therefore, our retail sales demand is affected by the number of heating and cooling degree-days occurring during a year. Cooling degree-days typically have a more significant effect than heating degree-days since some residential customers do not use electricity to heat their homes. Additionally, our retail revenues are affected by regulated rates and riders, including the changes to our ESP, described in Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements.

38

During the year ended December 31, 2021, Revenues increased $11.6 million to $663.7 million from $652.1 million in the same period of the prior year. This increase was a result of:

$ in millions	2021 vs. 2020
Retail
Rate
Decrease in Energy Efficiency and USF Revenue Rate Riders	$	(29.0)
Decrease due to Energy Efficiency shared savings	(8.9)
Decrease due to Storm Rider	(6.8)
Decrease in Competitive Bid Revenue Rate Rider (Standard Offer Rate)	(2.8)
Increase due to the TCRR Rider	41.9
Other	(2.1)
Net change in retail rate	(7.7)
Volume
Net increase in demand primarily due to favorable weather compared to the same period in the prior year.	5.1
Other miscellaneous	(0.5)
Total retail change	(3.1)
Wholesale
Increase primarily due to higher rates and volumes at OVEC	8.5
RTO ancillary and capacity revenues
Increase primarily due to higher transmission revenues as a result of changing from a stated rate to a formula rate in May 2020	7.6
Miscellaneous revenue
Miscellaneous revenues	(1.4)
Net change in Revenues	$	11.6

AES Ohio – Net Purchased Power

During the year ended December 31, 2021, Net Purchased Power increased $45.7 million compared to the prior year. This increase was a result of:

$ in millions	2021 vs. 2020
Net purchased power
Purchased power
Rate
Increase due to deferrals related to the Legacy Generation Rider and OVEC costs, partially offset by pricing in the competitive bid process.	$	11.5
Volume
Decrease driven by demand from SSO customers	(4.2)
Total purchased power change	7.3
RTO charges
Increase primarily due to higher TCRR rates in the current year	38.4
Net change in purchased power	$	45.7

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AES Ohio - Operation and Maintenance

During the year ended December 31, 2021, Operation and Maintenance expense decreased $29.9 million compared to the prior year. This decrease was a result of:

$ in millions	2021 vs. 2020
Decrease in uncollectible expenses for the low-income payment program, which is funded by the USF Revenue Rate Rider (a)	(15.2)
Decrease in Alternative Energy and Energy Efficiency programs (a)	$	(13.8)
Decrease in deferred storm costs (a)	(6.8)
Increase in TCRR costs (a)	4.2
Increase in charges from Service Company	2.1
Other, net	(0.4)
Net change in Operations and Maintenance expense	$	(29.9)

(a)There is corresponding revenue associated with these program costs resulting in minimal impact to Net income.

AES Ohio – Depreciation and Amortization

During the year ended December 30, 2021, Depreciation and amortization increased $2.8 million compared to the prior year. The increase was primarily the result of higher depreciable property, plant and equipment balances in the current year.

AES Ohio – Taxes Other Than Income Taxes

During the year ended December 31, 2021, Taxes other than income taxes increased $2.8 million compared to the prior year. The increase was primarily the result of a favorable property tax true-up in the prior year, resulting from a new assessment from the state of Ohio.

AES Ohio – Loss on Disposal of Business

During the year ended December 31, 2020, AES Ohio recorded a Loss on disposal of business of $4.7 million due to the loss on the transfer of business interests in the Hutchings Coal Station.

AES Ohio – Income Tax Expense

During the year ended December 31, 2021, Income tax expense decreased $1.3 million from $7.0 million in 2020 to $5.7 million in 2021 primarily due to a decrease in income before income tax compared to the prior year.

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KEY TRENDS AND UNCERTAINTIES

During 2022 and beyond, we expect that our financial results will be driven primarily by retail demand and weather. As discussed in Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements in Part I, Item 1 of this report, AES Ohio has requested PUCO approval to defer its decoupling costs consistent with the methodology approved in its distribution rate order. If approved, the deferral would be effective as of December 18, 2019 and going forward would reduce impacts of weather, energy efficiency programs and economic changes in customer demand. In addition, DPL's and AES Ohio's financial results are likely to be driven by other factors including, but not limited to:

•regulatory outcomes;

•the passage of new legislation, implementation of regulations or other changes in regulations; and

•timely recovery of transmission and distribution expenditures.

COVID-19 Pandemic

The COVID-19 pandemic has impacted global economic activity, including electricity and energy consumption, and caused significant volatility in financial markets. Responses to the COVID-19 pandemic by the State of Ohio and its residents and businesses continue to evolve as virus variants emerge, vaccine availability and usage continues and the state and businesses review and adjust the scope and requirements of social distancing measures.

Social distancing measures designed to slow the spread of the virus, such as business closures and operations limitations, impact energy demand within our service industry. In addition to the impacts to demand within our service territory, we also have incurred and expect to continue to incur expenses relating to COVID-19, and such expenses may include those that relate to events outside of our control. We experienced impacts from the pandemic in 2021 and into 2022 and expect to continue to experience impacts for the remainder of 2022. The following discussion highlights our assessment of the impacts of the COVID-19 pandemic on our current financial and operating status, and our financial and operational outlook based on information known as of this filing. Any impacts in future periods could have material and adverse effects on our results of operations, financial condition and cash flows. Also see "Item 1A. Risk Factors" of this Form 10-K.

Business Continuity - During the COVID-19 pandemic, we are taking a variety of measures to ensure our ability to transmit, distribute and sell electric energy, to ensure the health and safety of our employees, contractors, customers and communities and to provide essential services to the communities in which we operate. We continue to respond to this global crisis through comprehensive measures to protect our employees and others while fulfilling our vital role in providing our customers with electric energy. While stay-at-home restrictions have been lifted in our service territory, most of our management and administrative personnel are able to work remotely, and we have not experienced significant issues affecting our operations or ability to maintain effective internal controls and produce reliable financial information. We prioritize the safety of our people and continue to develop targeted strategies, in line with legal and regulatory requirements, to promote vaccination in our business.

Demand - As the economic impact of the COVID-19 pandemic started to materialize in Ohio in March 2020 and continued for the duration of 2020 and into 2021, the COVID-19 pandemic primarily impacted our retail sales demand. Retail sales demand decreased in 2020 mostly from commercial and industrial customers, but started to recover in 2021 as shown by the changes in weather-normalized volumes of kWh sold by customer class as follows:

	For the three		For the three		For the three		For the three				For the
	months ended		months ended		months ended		months ended				year ended
	March 31,		June 30,		September 30,		December 31,				December 31,
Customer Class	2021 vs. 2020	2020 vs. 2019	2021 vs. 2020	2020 vs. 2019	2021 vs. 2020	2020 vs. 2019	2021 vs. 2020		2020 vs. 2019		2021 vs. 2020		2020 vs. 2019
Residential	(1.2)%	0.3%	(4.2)%	8.5%	(6.6)%	11.0%	0.1	%	(0.9)	%	(2.9)	%	4.2	%
Commercial	(2.8)%	(2.8)%	14.0%	(9.9)%	(2.0)%	0.4%	4.0	%	(5.1)	%	2.8	%	(4.2)	%
Industrial	(3.1)%	(1.5)%	19.8%	(19.9)%	(1.0)%	0.9%	0.1	%	1.1	%	3.2	%	(5.0)	%
Government and Other	(3.9)%	(4.3)%	6.4%	(14.0)%	4.4%	(9.7)%	0.4	%	(4.6)	%	1.8	%	(8.3)	%
Total	(2.3)%	(1.3)%	7.7%	(7.1)%	(2.9)%	3.3%	1.1	%	(1.8)	%	0.5	%	(1.6)	%

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As noted above, we also have incurred and expect to continue to incur expenses relating to COVID-19, however see Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements for a discussion of regulatory measures which partially mitigate the impact of these expenses. While we have continued to experience COVID-19 impacts into 2022, we continue to expect that such impacts would not be material, particularly if less expansive social distancing measures and improvements in energy demand continue. The magnitude and duration of the COVID-19 pandemic is unknown at this time, however, and could have material and adverse effects on our results of operations, financial condition and cash flows in future periods.

Liquidity - We anticipate having sufficient liquidity to make all required payments, including payments for salaries and wages owed to our employees, during the pandemic. We do not foresee a significant impact to our access to capital or our liquidity position as a result of the pandemic. For further discussion of our financial condition, liquidity, and capital requirements, see Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Capital Resources and Liquidity of this Form 10-K.

Credit Exposures - We continue to monitor and manage our credit exposures in a prudent manner. During the year ended December 31, 2020, we experienced credit-related impacts from utility customers due to the prohibition of electric utilities, including us, from discontinuing electric utility service to customers through September 1, 2020 and due to the economic impacts of the COVID-19 pandemic. AES Ohio implemented and continues to offer extended payment plans to customers during the pandemic. In 2021, collections improved and credit-related impacts were not significant. If credit-related impacts from the COVID-19 pandemic occur in 2022 or beyond, deterioration in our credit exposures and customer collections could result. However, as discussed in Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements in Item 8. - Financial Statements and Supplementary Data of our Form 10-K, AES Ohio’s uncollectible expense is deferred for future collection.

Supply Chain - We continue to closely manage and monitor developments in our supply chain. We are experiencing certain minor delays and price increases, but these have not materially impacted our operations or capital projects to date.

Capital Projects - During the COVID-19 pandemic, our construction projects have experienced some indications of delays and price increases; however, they are currently proceeding without material delays. For further discussion of our capital requirements, see Part II, Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations – Capital Resources and Liquidity of this Form 10-K.

CARES Act - The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was passed by the U.S. Congress and signed into law on March 27, 2020. While we currently expect a limited impact from this legislation on our business, we deferred the payment of federal payroll taxes in accordance with the provisions of this act. The total deferred was approximately $2.1 million, and at December 31, 2021, the total remaining unpaid balance was approximately $1.1 million, which will be paid in 2022.

See Note 16 – Risks & Uncertainties of Notes to DPL's Consolidated Financial Statements and Note 14 – Risks & Uncertainties of Notes to AES Ohio's Financial Statements for more information and Part II, Item 1a - Risk Factors of this Form 10-K for more information.

Operational

Our previously announced plan to retire or sell our generation facilities was completed with the sale of our interest in Unit 4 of Conesville in June 2020. For additional information on these events and DPL's previously-owned coal-fired facilities, see Note 14 – Discontinued Operations of Notes to DPL's Consolidated Financial Statements.

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Macroeconomic and Political

Reference Rate Reform - In July 2017, the UK Financial Conduct Authority announced that it intends to phase out LIBOR by the end of 2021. In the U.S., the Alternative Reference Rate Committee at the Federal Reserve identified the Secured Overnight Financing Rate ("SOFR") as its preferred alternative rate for LIBOR; alternative reference rates in other key markets are under development. On November 30, 2020, the ICE Benchmark Association ("IBA") announced it had begun consultation on its intention to cease publication of two specific LIBOR rates by December 31, 2021, while extending the timeline for the overnight, one-month, three-month, six-month, and 12-month USD LIBOR rates through June 30, 2023. The IBA expects to make separate announcements in this regard following the outcome of the consultation. We maintain financial instruments that use LIBOR as an interest rate benchmark and will continue to engage with counterparties to make this transition.

Inflation - In the markets in which we operate, there have been higher rates of inflation in recent months. If inflation continues to increase in our markets, it may increase our expenses that we may not be able to pass through to customers. AES Ohio may have the ability to recover operations and maintenance costs through the regulatory process, however, timing impacts on recovery may vary.

Regulatory Environment

For a comprehensive discussion of the market structure and regulation of DPL and AES Ohio, see Part I, Item 1 - Business – Competition and Regulation.

Distribution Rate Case - On November 30, 2020, AES Ohio filed a new distribution rate case with the PUCO. This rate case proposes a revenue increase of $120.8 million. A hearing on this case was held beginning in January 2022 and the case is pending a commission order.

Stipulation and Recommendation - On October 23, 2020, AES Ohio entered into a Stipulation and Recommendation (the Settlement) with the staff of the PUCO and various customers, and organizations representing customers of AES Ohio and certain other parties with respect to, among other matters, AES Ohio’s applications pending at the PUCO for (i) approval of AES Ohio’s plan to modernize its distribution grid (the Smart Grid Plan), (ii) findings that AES Ohio passed the SEET for 2018 and 2019, and (iii) findings that AES Ohio’s current ESP 1 satisfies the SEET and the more favorable in the aggregate (MFA) regulatory test. A hearing was held in January 2021 for consideration of this settlement and on June 16, 2021, the PUCO issued their opinion and order accepting the stipulation as filed.

Ohio House Bill 6 – Legislation was passed, Ohio House Bill 128, that repeals Ohio House Bill 6 provisions related to a nuclear fund and decoupling, effective June 30, 2021. Other provisions from Ohio House Bill 6 currently remain in place, which include the following: beginning January 1, 2020, permitted Ohio utilities, such as AES Ohio, may defer, recover or credit the net proceeds from selling energy and capacity received as part of their interest in OVEC and their OVEC-related costs through a statewide non-bypassable recovery mechanism through 2030; eliminates the annual energy efficiency targets for Ohio utilities after 2020; and allows Ohio utilities to construct customer-sited renewable generation for mercantile customers or groups of mercantile customers, the costs of which may only be recovered from those customers. If these provisions from Ohio House Bill 6 are repealed without a replacement with comparable provisions, it could have a material adverse effect on our results of operations, financial condition and cash flows.

For more information on the above matters, see Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements.

CAPITAL RESOURCES AND LIQUIDITY

As of December 31, 2021, cash, cash equivalents and restricted cash for DPL and AES Ohio was $26.7 million and $14.5 million, respectively, and available borrowing capacity at DPL and AES Ohio was $35.0 million and $175.0 million, respectively. DPL and AES Ohio had aggregate principal amounts of long-term debt outstanding of $1,412.8 million and $582.2 million, respectively, at December 31, 2021.

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 or otherwise 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 the regulatory

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determinations as well as unfavorable regulatory outcomes could have a material adverse effect on our results of operations, financial condition and cash flows. See "RISKS ASSOCIATED WITH GOVERNMENTAL REGULATION AND LAWS" and "RISKS RELATED TO OUR INDEBTEDNESS AND FINANCIAL CONDITION" in Part I, Item 1a - Risk Factors and "COMPETITION AND REGULATION" in Part I, Item 1 - Business. 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.

AES Ohio must first seek approval from the PUCO to issue new stocks, bonds, notes and other evidences of indebtedness. Annually, AES Ohio must receive authority to issue and assume liability on short-term debt, not to exceed 12 months. AES Ohio received an order from the PUCO on December 15, 2021 granting authority through December 31, 2022 to, among other things, issue up to $300.0 million in aggregate principal amount of short-term indebtedness. AES Ohio must also receive authority to issue and assume liability on long-term debt, in excess of 12 months. AES Ohio last received approval in 2020 to, among other things, issue up to $140.0 million in First Mortgage Bonds. AES Ohio also has restrictions on the amount of new debt that may be issued due to contractual obligations of AES and by financial covenant restrictions under existing debt obligations. AES Ohio does not believe such restrictions will be a limiting factor in our ability to issue debt in the ordinary course of prudent business operations.

CASH FLOWS

DPL’s financial condition, liquidity and capital requirements include the consolidated results of its principal subsidiary AES Ohio. All material intercompany accounts and transactions have been eliminated in consolidation.

Cash Flow Analysis - DPL:

DPL	Years ended December 31,
$ in millions	2021		2020		2019
Net cash provided by operating activities	$	116.9	$	113.9	$	180.3
Net cash used in investing activities	(213.0)		(185.7)		(222.6)
Net cash provided by / (used in) financing activities	97.3		50.3		(22.4)
Net increase / (decrease) in cash, cash equivalents and restricted cash	1.2		(21.5)		(64.7)
Balance at beginning of year	25.5		47.0		111.7
Cash, cash equivalents and restricted cash at end of year	$	26.7	$	25.5	$	47.0

Fiscal year 2021 versus 2020:

DPL – Net cash from operating activities

	For the years ended December 31,				$ change
$ in millions	2021		2020		2021 vs. 2020
Net income / (loss)	$	22.1	$	(1.0)	$	23.1
Depreciation and amortization	76.1		73.6		2.5
Deferred income taxes	4.7		39.8		(35.1)
Loss on early extinguishment of debt	—		31.7		(31.7)
Loss / (gain) on disposal and sale of business, net	—		(1.4)		1.4
Net income / (loss), adjusted for non-cash items	102.9		142.7		(39.8)
Net change in operating assets and liabilities	14.0		(28.8)		42.8
Net cash provided by operating activities	$	116.9	$	113.9	$	3.0

The net change in operating assets and liabilities for the year ended December 31, 2021 compared to the year ended December 31, 2020 was driven by the following:

$ in millions	$ change
Increase from deferred regulatory costs, net primarily due to higher TCRR rates in the current year	$	44.3
Increase from accounts payable primarily due to the timing of payments	25.8
Decrease from accounts receivable primarily due to higher collections on generation-related receivables in the prior year	(13.2)
Decrease from inventories primarily due to purchases in the current year to support new projects	(10.4)
Other	(3.7)
Net change in cash from changes in operating assets and liabilities	$	42.8

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DPL – Net cash from investing activities

During the year ended December 31, 2021, net cash used in investing activities was $213.0 million compared to net cash used in investing activities of $185.7 million for the year ended December 31, 2020. This $27.3 million increase in cash used was primarily due to a $34.0 million increase in capital expenditures due to increased spending on T&D projects in the current year and $5.1 million of proceeds received from the sale of software in the prior year. These increases in cash used were partially offset by a $8.3 million decrease in cost of removal payments and a $3.4 million decrease in net payments on the disposal of business interests primarily due to higher payments on the transfer of the retired Hutchings Coal Station in the prior year.

DPL – Net cash from financing activities

During the year ended December 31, 2021, net cash provided by financing activities was $97.3 million compared to net cash provided by financing activities of $50.3 million for the year ended December 31, 2020. This $47.0 million increase was primarily due to a $34.5 million increase in equity contributions from AES in the current year, a $9.0 million increase in net borrowings on revolving credit facilities in the current year, and a $7.6 million decrease in payments of deferred financing costs in the current year. These increases were partially offset by $4.2 million of net issuances of long-term debt in the prior year.

Cash Flow Analysis - AES Ohio:

AES Ohio	Years ended December 31,
$ in millions	2021		2020		2019
Net cash provided by operating activities	$	130.2	$	91.0	$	199.9
Net cash used in investing activities	(205.5)		(186.5)		(170.6)
Net cash provided by / (used in) financing activities	78.0		86.0		(74.2)
Net increase / (decrease) in cash, cash equivalents and restricted cash	2.7		(9.5)		(44.9)
Balance at beginning of year	11.8		21.3		66.2
Cash, cash equivalents and restricted cash at end of year	$	14.5	$	11.8	$	21.3

Fiscal year 2021 versus 2020:

AES Ohio – Net cash from operating activities

	For the years ended December 31,				$ change
$ in millions	2021		2020		2021 vs. 2020
Net income	$	47.1	$	51.1	$	(4.0)
Depreciation and amortization	74.6		71.8		2.8
Deferred income taxes	4.5		3.4		1.1
Loss on disposal of business	—		4.7		(4.7)
Net income, adjusted for non-cash items	126.2		131.0		(4.8)
Net change in operating assets and liabilities	4.0		(40.0)		44.0
Net cash provided by operating activities	$	130.2	$	91.0	$	39.2

The net change in operating assets and liabilities for the year ended December 31, 2021 compared to the year ended December 31, 2020 was driven by the following:

$ in millions	$ change
Increase from deferred regulatory costs, net primarily due to higher TCRR rates in the current year	$	44.3
Increase from accounts payable primarily due to timing of payments	19.1
Decrease from inventories primarily due to purchases in the current year to support new projects	(6.9)
Decrease from accounts receivable primarily due to timing of collections	(2.6)
Other	(9.9)
Net change in cash from changes in operating assets and liabilities	$	44.0

AES Ohio – Net cash from investing activities

During the year ended December 31, 2021, net cash used in investing activities was $205.5 million compared to net cash used in investing activities of $186.5 million for the year ended December 31, 2020. This $19.0 million increase in cash used was primarily due to a $36.0 million increase in capital expenditures due to increased

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spending on T&D projects in the current year, partially offset by an $8.4 million decrease in cost of removal payments and a $7.0 million payment made on the disposal of business interests in the retired Hutchings Coal Station in the prior year.

AES Ohio – Net cash from financing activities

During the year ended December 31, 2021, net cash provided by financing activities was $78.0 million compared to net cash provided by financing activities of $86.0 million during the year ended December 31, 2020. This $8.0 million decrease was primarily due to a $9.3 million increase in return of capital payments to DPL compared to the prior year.

Liquidity

We expect our existing cash balances, cash generated from operating activities and borrowing capacity on our existing credit facilities will be adequate to meet our anticipated operating needs, including interest expense on our debt and any dividends to our equity owners. Our business is capital intensive, requiring significant resources to fund operating expenses, construction expenditures, scheduled debt maturities and carrying costs, taxes and any dividend payments. For 2022 and subsequent years, we expect to satisfy these requirements with a combination of cash from operations, funds from debt financing and funds from equity capital contributions as our internal liquidity needs and market conditions warrant. We also expect that the borrowing capacity under the DPL Credit Agreement and the AES Ohio Credit Agreement will continue to be available to manage working capital requirements during those periods. The absence of adequate liquidity could adversely affect our ability to operate our business and have a material adverse effect on our results of operations, financial condition and cash flows.

At December 31, 2021, DPL and AES Ohio have access to the following revolving credit agreements:

$ in millions	Type	Maturity	Commitment		Amounts available as of December 31, 2021
DPL Credit Agreement	Revolving	June 2023	$	100.0	$	35.0
AES Ohio Credit Agreement	Revolving	June 2024	175.0		175.0
			$	275.0	$	210.0

DPL entered into an amendment and restatement of the DPL Credit Agreement on June 19, 2019 with a syndication of bank lenders. The DPL Credit Agreement is a committed line of credit secured by a pledge of common stock that DPL owns in AES Ohio and is used: (i) to finance capital expenditures; (ii) to refinance certain existing indebtedness, (iii) to support working capital; and (iv) for general corporate purposes. This agreement matures on June 19, 2023, and bears interest at variable rates as described in the agreement. It includes an uncommitted $50.0 million accordion feature to provide DPL with an option to request an increase in the size of the facility, subject to approval by the lenders. As of December 31, 2021 and 2020, DPL had $65.0 million and $80.0 million in outstanding borrowings on the agreement, respectively.

AES Ohio entered into an amendment and restatement of the AES Ohio Credit Agreement on June 19, 2019 with a syndication of bank lenders. The AES Ohio Credit Agreement is an unsecured committed line of credit to be used: (i) to finance capital expenditures; (ii) to refinance certain existing indebtedness, (iii) to support working capital; and (iv) for general corporate purposes. This agreement matures on June 19, 2024, and bears interest at variable rates as described in the agreement. It includes an uncommitted $100.0 million accordion feature to provide AES Ohio with an option to request an increase in the size of the facility, subject to approval by the lenders. The AES Ohio Credit Agreement also includes two one-year extension options, allowing AES Ohio to extend the maturity date subject to approval by the lenders. As of December 31, 2021 and 2020, AES Ohio had $0.0 million and $20.0 million in outstanding borrowings on the agreement, respectively.

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Capital Requirements

Our capital expenditure program, including development and permitting costs, for the three-year period from 2022 through 2024 is currently estimated to cost approximately $786.0 million and includes estimates as follows:

$ in millions	2022		2023		2024		For the three-year period from 2022 through 2024
Distribution-related additions, improvements and extensions	$	88.0	$	106.0	$	108.0	$	302.0
Transmission-related additions and improvements	78.0		69.0		95.0		242.0
Smart Grid Plan improvements and additions	77.0		69.0		54.0		200.0
Other	17.0		8.0		5.0		30.0
Total for AES Ohio	260.0		252.0		262.0		774.0
Other subsidiaries	4.0		5.0		3.0		12.0
Total for DPL	$	264.0	$	257.0	$	265.0	$	786.0

AES Ohio's projection includes expected spending under its Smart Grid Plan included in the comprehensive settlement approved by the PUCO on June 16, 2021 as well as new transmission projects. See Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements for more information.

AES Ohio is subject to the mandatory reliability standards of NERC and ReliabilityFirst Corporation, one of the six NERC regions, of which AES Ohio is a member. AES Ohio anticipates spending approximately $78.0 million within the next five years to reinforce its transmission system to comply with mandatory NERC and FERC Form 715 planning requirements. These anticipated costs are included in the overall capital projections above.

Debt Covenants

For information regarding our long-term debt covenants, see Note 6 – Long-term debt of Notes to DPL's Consolidated Financial Statements and Note 6 – Long-term debt of Notes to AES Ohio's Financial Statements.

Credit Ratings

Our ability to borrow money or to refinance existing indebtedness and the interest rates at which we can borrow money or refinance existing indebtedness are affected by our credit ratings. In addition, the applicable interest rates on DPL’s Credit Agreement and AES Ohio’s Credit Agreement (as well as the amount of certain other fees in the agreements) are dependent upon the credit ratings of DPL and AES Ohio. Downgrades in the credit ratings of AES could result in DPL's or AES Ohio’s credit ratings being downgraded. Any reduction in our debt or credit ratings may adversely affect the trading price of our outstanding debt securities. Non-investment grade companies may experience higher costs to issue new securities.

The following table presents the debt ratings and credit ratings (issuer/corporate rating) and outlook for DPL and AES Ohio.

Debt Ratings	DPL	AES Ohio	Outlook
Fitch Ratings	BB(a)	BBB+ (b)	Negative
Moody's Investors Service, Inc.	Ba1 (a)	A3 (b)	Stable
Standard & Poor's Financial Services LLC	BB+ (a)	BBB+ (b)	Stable
Credit ratings	DPL	AES Ohio	Outlook
Fitch Ratings	BB	BBB-	Negative
Moody's Investors Service, Inc.	Ba1	Baa2	Stable
Standard & Poor's Financial Services LLC	BB+	BB+	Stable

(a)Rating relates to DPL's senior unsecured debt.

(b)Rating relates to AES Ohio’s senior secured debt.

We cannot predict whether the current debt and credit ratings of DPL or the debt and credit ratings of AES Ohio will remain in effect for any given period of time or that one or more of these ratings will not be lowered or withdrawn entirely by a rating agency. A security rating is not a recommendation to buy, sell or hold securities. Such ratings

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may be subject to revision or withdrawal at any time by the assigning rating organization, and each rating should be evaluated independently of any other rating.

Off-Balance Sheet Arrangements

AES Ohio owns a 4.9% equity ownership interest in OVEC which is recorded using the cost method of accounting under GAAP. At December 31, 2021, AES Ohio could be responsible for the repayment of 4.9%, or $55.5 million, of a $1,131.7 million debt obligation comprised of both fixed and variable rate securities with maturities between 2022 and 2040. This would only happen if OVEC defaulted on its debt payments. At December 31, 2021, we have no knowledge of such a default.

Commercial Commitments and Contractual Obligations

We enter into various contractual obligations and other commercial commitments that may affect the liquidity of our operations. At December 31, 2021, these include:

	Payments due in:
$ in millions	Total		Less than 1 year		2 - 3 years		4 - 5 years		More than 5 years
DPL:
Long-term debt	$	1,412.8	$	0.2	$	0.4	$	415.4	$	996.8
Interest payments	761.3		57.8		115.5		89.8		498.2
Electricity purchase commitments	82.9		82.9		—		—		—
Purchase orders and other contractual obligations	149.4		138.7		10.7		—		—
Total contractual obligations	$	2,406.4	$	279.6	$	126.6	$	505.2	$	1,495.0

	Payments due in:
$ in millions	Total		Less than 1 year		2 - 3 years		4 - 5 years		More than 5 years
AES Ohio:
Long-term debt	$	582.2	$	0.2	$	0.4	$	0.4	$	581.2
Interest payments	561.8		22.0		44.0		43.9		451.9
Electricity purchase commitments	82.9		82.9		—		—		—
Purchase orders and other contractual obligations	146.8		136.1		10.7		—		—
Total contractual obligations	$	1,373.7	$	241.2	$	55.1	$	44.3	$	1,033.1

Long-term debt:

DPL’s Long-term debt at December 31, 2021 consists of DPL’s unsecured notes and Capital Trust II securities, along with AES Ohio’s First Mortgage Bonds and the WPAFB note. These long-term debt amounts include current maturities but exclude unamortized debt discounts, premiums and fair value adjustments.

AES Ohio’s Long-term debt at December 31, 2021 consists of its First Mortgage Bonds and the WPAFB note. These long-term debt amounts include current maturities but exclude unamortized debt discounts.

See Note 6 – Long-term debt of the Notes to DPL's Consolidated Financial Statements and Note 6 – Long-term debt of the Notes to AES Ohio's Financial Statements.

Interest payments:

Interest payments are associated with the long-term debt described above. The interest payments relating to variable-rate debt are projected using the interest rates in effect at December 31, 2021.

Electricity purchase commitments:

DPL enters into long-term contracts for the purchase of electricity. In general, these contracts are subject to variable quantities or prices and are terminable only in limited circumstances.

Purchase orders and other contractual obligations:

At December 31, 2021, DPL and AES Ohio had various other contractual obligations including contracts to purchase goods and services with various terms and expiration dates. Due to uncertainty regarding the timing and payment of future obligations to the Service Company, and DPL's and AES Ohio's ability to terminate such obligations upon 90 days' notice, we have excluded such amounts in the contractual obligations table above. This table also does not include:

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•regulatory liabilities (see Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements);

•taxes (see Note 7 – Income Taxes of Notes to DPL's Consolidated Financial Statements and Note 7 – Income Taxes of Notes to AES Ohio's Financial Statements);

•pension and other postretirement employee benefit liabilities (see Note 8 – Benefit Plans of Notes to DPL's Consolidated Financial Statements and Note 8 – Benefit Plans of Notes to AES Ohio's Financial Statements);

•contingencies (see Note 10 – Contractual Obligations, Commercial Commitments and Contingencies of Notes to DPL's Consolidated Financial Statements and Note 10 – Contractual Obligations, Commercial Commitments and Contingencies of Notes to AES Ohio's Financial Statements); and

•amounts due to related parties (see Note 11 – Related Party Transactions of Notes to DPL's Consolidated Financial Statements and Note 11 – Related Party Transactions of Notes to AES Ohio's Financial Statements).

Reserve for uncertain tax positions:

Due to the uncertainty regarding the timing of future cash outflows associated with our unrecognized tax benefits of $0.4 million at December 31, 2021, we are unable to make a reliable estimate of the periods of cash settlement with the respective tax authorities and have not included such amounts in the contractual obligations table above.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

DPL’s Consolidated Financial Statements and AES Ohio’s 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. Our significant accounting policies are described in Note 1 – Overview and Summary of Significant Accounting Policies of Notes to DPL's Consolidated Financial Statements and Note 1 – Overview and Summary of Significant Accounting Policies of Notes to AES Ohio's Financial Statements.

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 allowances for deferred income taxes; regulatory assets and liabilities; reserves recorded for income tax exposures; litigation; contingencies; the valuation of AROs; and assets and liabilities related to employee benefits.

Revenue Recognition (including Unbilled Revenue)

At the end of each month, amounts of energy delivered to customers since the date of the last meter reading are estimated and the corresponding unbilled revenue is accrued. In making our estimates of unbilled revenue, we use complex models that consider various factors including known amounts of energy usage by nearly all residential, small commercial and industrial customers; estimated line losses; and estimated customer rates based on prior period billings. Given the use of these models, and that customers are billed on a monthly cycle, we believe it is unlikely that materially different results will occur in future periods when revenue is billed. The effect on 2021 revenues and ending unbilled revenues of a one percentage point change in estimated line losses for the month of December 2021 is immaterial. An allowance for potential credit losses is maintained and amounts are written off when normal collection efforts have been exhausted.

Income Taxes

We are subject to federal and state income taxes. Our income tax provision requires significant judgment and is based on calculations and assumptions that are subject to examination by the U.S. Internal Revenue Service and other tax authorities. We regularly assess the potential outcome of tax examinations when determining the adequacy of our income tax provisions by considering the technical merits of the filing position, case law and results of previous tax examinations. Accounting guidance for uncertainty in income taxes prescribes a more-likely-than-not recognition threshold and measurement requirements for financial statement reporting of our income tax positions. Tax reserves have been established which we believe to be adequate in relation to the potential for additional

49

assessments. Once established, reserves are adjusted only when there is more information available or when an event occurs necessitating a change to the reserves. While we believe that the amount of the tax reserves is reasonable, it is possible that the ultimate outcome of current or future examinations may be materially different than the reserve amounts.

Regulatory Assets and Liabilities

Application of the provisions of GAAP relating to regulatory accounting requires us to reflect the effect of rate regulation in DPL’s Consolidated Financial Statements and AES Ohio’s Financial Statements. For regulated businesses subject to federal or state cost-of-service rate regulation, regulatory practices that assign costs to accounting periods may differ from accounting methods generally applied by non-regulated companies. When it is probable that regulators will permit the recovery of current costs through future rates charged to customers, we defer these costs as Regulatory assets that otherwise would be expensed by non-regulated companies. Likewise, we recognize Regulatory liabilities when it is probable that regulators will require customer refunds through future rates and when revenue is collected from customers for expenses that are not yet incurred. Regulatory assets are amortized into expense and Regulatory liabilities are amortized into income over the recovery period authorized by the regulator.

We evaluate our Regulatory assets to determine whether or not they are probable of recovery through future rates and make various assumptions in our analyses. The expectations of future recovery are generally based on orders issued by regulatory commissions or historical experience, as well as discussions with applicable regulatory authorities. If recovery of a regulatory asset is determined to be less than probable, it will be expensed in the period the assessment is made. We currently believe the recovery of our Regulatory assets is probable. See Note 2 – Regulatory Matters of Notes to DPL's Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Financial Statements.

Pension and Postretirement Benefits

See Note 1 – Overview and Summary of Significant Accounting Policies of Notes to DPL's Consolidated Financial Statements and Note 1 – Overview and Summary of Significant Accounting Policies of Notes to AES Ohio's Financial Statements for information on our accounting policies regarding Pension and Postretirement Benefits.

Contingent and Other Obligations

During the conduct of our business, we are subject to a number of federal and state laws and regulations, as well as other factors and conditions that potentially subject us to environmental, litigation, insurance and other risks. We periodically evaluate our exposure to such risks and record estimated liabilities for those matters where a loss is considered probable and reasonably estimable in accordance with GAAP. In recording such estimated liabilities, we may make assumptions, estimates and judgments that affect the reported amounts of assets, liabilities and expenses as they relate to contingent and other obligations. These assumptions and estimates are based on historical experience and assumptions and may be subject to change. We believe such estimates and assumptions are reasonable.

Recently Issued Accounting Pronouncements

A discussion of recently issued accounting pronouncements is in Note 1 – Overview and Summary of Significant Accounting Policies of Notes to DPL's Consolidated Financial Statements and Note 1 – Overview and Summary of Significant Accounting Policies of Notes to AES Ohio's Financial Statements and such discussion is incorporated by reference in this Management's Discussion and Analysis of Financial Condition and Results of Operations and made a part hereof.

LEGAL AND OTHER MATTERS

Discussions of legal and other matters are provided in Item 1 – Business "Environmental Matters", Item 1 – Business "Competition and Regulation" and Item 3 – Legal Proceedings. Such discussions are incorporated by reference in this Management's Discussion and Analysis of Financial Condition and Results of Operations and made a part hereof.

Item 7A – Quantitative and Qualitative Disclosures about Market Risk

50

Overview

We are subject to certain market risks including, but not limited to, changes in commodity prices for electricity and fluctuations in interest rates. We use various market risk-sensitive instruments, including derivative contracts, primarily to limit our exposure to fluctuations in interest rates. Our U.S. Risk Management Committee (U.S. RMC), comprised of members of senior management, is responsible for establishing risk management policies and the monitoring and reporting of risk exposures related to our operations. The U.S. 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. 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

AES Ohio conducts competitive bid auctions to purchase power for SSO service, as all of AES Ohio's SSO is sourced through the competitive bid auction.

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. Further, AES Ohio's exposure to fluctuations in the price of power is limited because we recover our power purchased from the competitive bid auction through the Standard Offer Rate tariff.

Interest rate risk

We use long-term debt as a significant source of capital in our business, which exposes us to interest rate risk. We do not enter into market risk sensitive instruments for trading purposes. We manage our exposure to interest rate risk through the use of fixed-rate debt and by refinancing existing long-term debt at times when it is deemed economic and prudent. In regard to our fixed rate debt, the interest rate risk with respect to long-term debt primarily relates to the potential impact a change in interest rates has on the fair value of our fixed-rate debt and not on our financial condition or results of operations. Our interest rate risk on our fixed-rate debt is associated with refinancing activity. Market indexes can be affected by market demand, supply, market interest rates and other economic conditions. See Note 6 – Long-term debt of Notes to DPL's Consolidated Financial Statements and Note 6 – Long-term debt of Notes to AES Ohio's Financial Statements.

At December 31, 2021, our variable rate debt consisted of $65.0 million under DPL's revolving credit facility and $0.0 million under AES Ohio's revolving credit facility. At December 31, 2021, a 100-basis point change in the applicable rates on our variable-rate debt would result in an approximate $0.7 million change in DPL's interest expense and an approximate $0.0 million change in AES Ohio's interest expense.

The principal amount of DPL’s long-term debt was $1,412.8 million at December 31, 2021, consisting of DPL’s unsecured notes, Capital Trust II securities along with AES Ohio’s First Mortgage Bonds and the WPAFB note. All of DPL’s existing debt was adjusted to fair value at the Merger date according to FASB Accounting Standards Codification No. 805, “Business Combinations”. The fair value of this debt at December 31, 2021 was $1,519.7 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 debt obligations that are subject to refinancing risk:

DPL	Years ending December 31,												Principal amount at December 31,		Fair value at December 31,
$ in millions	2022		2023		2024		2025		2026		Thereafter		2021		2021
Long-term debt
Fixed-rate debt	$	0.2	$	0.2	$	0.2	$	415.2	$	0.2	$	996.8	1,412.8		1,519.7
Average interest rate	4.2%		4.2%		4.2%		4.1%		4.1%		4.1%
Total													$	1,412.8	$	1,519.7

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The principal amount of AES Ohio’s long-term debt was $582.2 million at December 31, 2021, consisting of its First Mortgage Bonds and the WPAFB note. The fair value of this debt at December 31, 2021 was $642.6 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 AES Ohio’s debt obligations that are subject to refinancing risk.

AES Ohio	Years ending December 31,												Principal amount at December 31,		Fair value at December 31,
$ in millions	2022		2023		2024		2025		2026		Thereafter		2021		2021
Long-term debt
Fixed-rate debt	$	0.2	$	0.2	$	0.2	$	0.2	$	0.2	$	581.2	582.2		642.6
Average interest rate	4.2%		4.2%		4.2%		4.2%		3.8%		3.8%
Total													$	582.2	$	642.6

Equity price risk

At December 31, 2021, approximately 42% of the defined benefit pension plan assets were comprised of investments in equity securities and 58% related to investments in fixed income securities, cash and cash equivalents and alternative investments. The equity securities are carried at their market value of approximately $151.8 million at December 31, 2021. A hypothetical 10% decrease in prices quoted by stock exchanges would result in a $15.2 million reduction in fair value at December 31, 2021 and approximately a $1.9 million increase to the 2022 pension expense. See Note 8 – Benefit Plans of Notes to DPL's Consolidated Financial Statements and Note 8 – Benefit Plans of Notes to AES Ohio's Financial Statements for more information on our pension plans.

Credit risk

Credit risk is the risk of an obligor's failure to meet the terms of any investment contract, loan agreement or otherwise perform as agreed. Credit risk arises from all activities in which success depends on issuer, borrower or counterparty performance, whether reflected on or off the balance sheet. We limit our credit risk by assessing the creditworthiness of potential counterparties before entering into transactions with them and continue to evaluate their creditworthiness after transactions have been originated. We use the three leading corporate credit rating agencies and other current market-based qualitative and quantitative data to assess the financial strength of counterparties on an ongoing basis. We may require various forms of credit assurance from counterparties to mitigate credit risk.

Item 8 – Financial Statements and Supplementary Data

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 clearly be noted in the section.

52

FINANCIAL STATEMENTS

DPL Inc.

53

Report of Independent Registered Public Accounting Firm

To the Shareholder and Board of Directors of DPL Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of DPL Inc. (the Company) as of December 31, 2021 and 2020, the related consolidated statements of operations, comprehensive income / (loss), shareholder’s deficit and cash flows for each of the three years in the period ended December 31, 2021, and the related notes and financial statement schedule listed in the Index at Item 15 (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

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	Regulatory Accounting
Description of the Matter	As described in Note 2 to the consolidated financial statements, the Company applies the provisions of FASC 980 “Regulated Operations,” which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory liabilities generally represent obligations to provide refunds or future rate reductions to customers for previous overcollections or the deferral of revenues collected for costs that the Company expects to incur in the future. Accounting for the economics of rate regulation affects multiple financial statement line items, including property, plant, and equipment; regulatory assets and liabilities; revenues; and depreciation expense, and related disclosures in the Company’s consolidated financial statements.
	Auditing the Company’s regulatory accounting was complex due to significant judgments made by management to support its assertions about the impact of future regulatory orders on the consolidated financial statements. In particular, there is subjectivity involved in assessing the impact of current and future regulatory orders on events that have occurred through December 31, 2021, judgment required to evaluate the relevance and reliability of audit evidence to support impacted account balances and disclosures, and judgments involved in assessing the probability of recovery in future rates of incurred costs or refunds to customers. These assumptions have a significant effect on the financial statements and related disclosures.
How We Addressed the Matter in Our Audit	To test the Company’s accounting for regulatory assets and liabilities, our audit procedures included, among others, reviewing relevant regulatory orders, statutes and interpretations; filings made by intervening parties; and other publicly available information, to assess the likelihood of recovery of regulatory assets in future rates or of a refund or future reduction in rates for regulatory liabilities based on precedents for the treatment of similar costs under similar circumstances. We evaluated the Company’s assertions regarding the probability of recovery of regulatory assets or refund or future reduction in rates for regulatory liabilities, to assess the Company’s assertion that amounts are probable of recovery or of a refund or future reduction in rates.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2011.

Indianapolis, Indiana

February 28, 2022

55

DPL INC.
Consolidated Statements of Operations
	Years ended December 31,
$ in millions	2021		2020		2019
Revenues	$	672.7	$	660.5	$	743.7
Operating costs and expenses
Net fuel cost	0.5		1.7		2.5
Net purchased power cost	276.3		230.6		251.9
Operation and maintenance	152.4		181.7		184.2
Depreciation and amortization	76.1		73.3		72.3
Taxes other than income taxes	82.1		79.4		77.9
Loss on disposal of business (Note 15)	—		4.7		—
Total operating costs and expenses	587.4		571.4		588.8
Operating income	85.3		89.1		154.9
Other income / (expense), net
Interest expense	(62.9)		(71.3)		(82.2)
Loss on early extinguishment of debt	—		(31.7)		(44.9)
Other income	—		2.0		3.7
Other expense, net	(62.9)		(101.0)		(123.4)
Income / (loss) from continuing operations before income tax	22.4		(11.9)		31.5
Income tax benefit from continuing operations	(0.5)		(5.5)		(20.3)
Net income / (loss) from continuing operations	22.9		(6.4)		51.8
Discontinued operations (Note 14)
Income / (loss) from discontinued operations before income tax	(1.0)		(0.6)		47.6
Gain from disposal of discontinued operations	—		6.1		20.1
Income tax expense / (benefit) from discontinued operations	(0.2)		0.1		14.1
Net income / (loss) from discontinued operations	(0.8)		5.4		53.6
Net income / (loss)	$	22.1	$	(1.0)	$	105.4

See Notes to Consolidated Financial Statements.

56

DPL INC.
Consolidated Statements of Comprehensive Income / (Loss)
	Years ended December 31,
$ in millions	2021		2020		2019
Net income / (loss)	$	22.1	$	(1.0)	$	105.4
Derivative activity:
Change in derivative fair value, net of income tax benefit of $0.0, $0.0 and $0.1 for each respective period	—		—		(1.0)
Reclassification to earnings, net of income tax expense of $0.2, $0.2 and $0.1 for each respective period	(0.8)		(0.9)		(1.1)
Reclassification of earnings related to discontinued operations, net of income tax benefit of $0.0, $0.0 and $(0.4) for each respective period	—		—		(0.4)
Net change in fair value of derivatives	(0.8)		(0.9)		(2.5)
Pension and postretirement activity:
Prior service cost for the period, net of income tax benefit of $0.0, $0.0 and $0.0 for each respective period	—		—		(0.1)
Net gain / (loss) for the period, net of income tax benefit / (expense) of $(1.8), $2.6 and $0.8 for each respective period	6.4		(8.8)		(3.4)
Reclassification to earnings, net of income tax benefit of $(0.6), $(0.3) and $0.0 for each respective period	1.9		1.0		0.2
Net change in unfunded pension and postretirement obligations	8.3		(7.8)		(3.3)
Other comprehensive income / (loss)	7.5		(8.7)		(5.8)
Net comprehensive income / (loss)	$	29.6	$	(9.7)	$	99.6

See Notes to Consolidated Financial Statements.

57

DPL INC.
Consolidated Balance Sheets
$ in millions	December 31, 2021		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	26.6	$	25.4
Accounts receivable, net of allowance for credit losses of $0.3 and $2.8, respectively (Note 1)	71.5		69.7
Inventories	14.4		8.8
Taxes applicable to subsequent years	83.1		78.0
Regulatory assets, current (Note 2)	24.5		27.5
Taxes receivable	2.7		17.9
Prepayments and other current assets	7.6		5.9
Total current assets	230.4		233.2
Property, plant and equipment:
Property, plant & equipment	1,990.4		1,839.3
Less: Accumulated depreciation and amortization	(464.0)		(415.7)
	1,526.4		1,423.6
Construction work in process	174.4		141.7
Total net property, plant & equipment	1,700.8		1,565.3
Other non-current assets:
Regulatory assets, non-current (Note 2)	176.8		193.6
Intangible assets, net of amortization	33.7		19.3
Other non-current assets	30.1		24.6
Total other non-current assets	240.6		237.5
Total assets	$	2,171.8	$	2,036.0
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Short-term and current portion of long-term debt (Note 6)	$	65.2	$	100.2
Accounts payable	111.0		84.5
Accrued taxes	85.1		83.0
Accrued interest	15.3		16.0
Customer deposits	15.0		19.4
Regulatory liabilities, current (Note 2)	14.6		18.0
Accrued and other current liabilities	17.1		21.0
Total current liabilities	323.3		342.1
Non-current liabilities:
Long-term debt (Note 6)	1,395.3		1,393.4
Deferred income taxes (Note 7)	187.9		177.2
Taxes payable	83.6		80.4
Regulatory liabilities, non-current (Note 2)	229.3		218.3
Accrued pension and other post-retirement benefits (Note 8)	62.3		93.9
Other non-current liabilities	11.5		14.2
Total non-current liabilities	1,969.9		1,977.4
Commitments and contingencies (Note 10)
Common shareholder's deficit:
Common stock:
1,500 shares authorized; 1 share issued and outstanding
at December 31, 2021 and 2020	—		—
Other paid-in capital	2,601.3		2,468.8
Accumulated other comprehensive loss	(4.8)		(12.3)
Accumulated deficit	(2,717.9)		(2,740.0)
Total common shareholder's deficit:	(121.4)		(283.5)
Total liabilities and shareholder's deficit:	$	2,171.8	$	2,036.0

See Notes to Consolidated Financial Statements.

58

DPL INC.
Consolidated Statements of Cash Flows
	Years ended December 31,
$ in millions	2021		2020		2019
Cash flows from operating activities:
Net income / (loss)	$	22.1	$	(1.0)	$	105.4
Adjustments to reconcile Net income / (loss) to Net cash from operating activities
Depreciation and amortization	76.1		73.6		53.1
Deferred income taxes	4.7		39.8		15.2
Loss on early extinguishment of debt	—		31.7		44.9
Fixed-asset impairment	—		—		3.5
Gain on disposal and sale of business, net	—		(1.4)		(20.1)
Changes in certain assets and liabilities:
Accounts receivable, net	(2.0)		11.2		10.2
Inventories	(5.5)		4.9		(4.2)
Taxes applicable to subsequent years	(5.2)		(0.2)		(2.8)
Deferred regulatory costs, net	10.3		(34.0)		(2.2)
Accounts payable	15.7		(10.1)		9.7
Accrued taxes payable / receivable	20.6		8.0		(21.2)
Accrued interest	(0.7)		4.6		(2.9)
Accrued pension and other post-retirement benefits	(12.2)		(11.8)		(8.8)
Other	(7.0)		(1.4)		0.5
Net cash provided by operating activities	116.9		113.9		180.3
Cash flows from investing activities:
Capital expenditures	(191.3)		(157.3)		(156.5)
Cost of removal payments	(17.2)		(25.5)		(11.6)
Proceeds from disposal and sale of business interests	—		1.6		—
Payments on disposal and sale of business interests	(3.9)		(8.9)		(51.0)
Proceeds from sale of property	—		5.1		—
Other investing activities, net	(0.6)		(0.7)		(3.5)
Net cash used in investing activities	(213.0)		(185.7)		(222.6)
Cash flows from financing activities:
Payments of deferred financing costs	(0.2)		(7.8)		(9.9)
Retirement of debt	—		(550.8)		(978.0)
Issuance of long-term debt, net of discount	—		555.0		821.7
Borrowings from revolving credit facilities	120.0		185.0		204.0
Repayment of borrowings from revolving credit facilities	(155.0)		(229.0)		(60.0)
Equity contribution from parent	132.5		98.0		—
Other financing activities, net	—		(0.1)		(0.2)
Net cash provided by / (used in) financing activities	97.3		50.3		(22.4)
Cash, cash equivalents and restricted cash:					.
Net increase / (decrease) in cash, cash equivalents and restricted cash	1.2		(21.5)		(64.7)
Balance at beginning of year	25.5		47.0		111.7
Cash, cash equivalents and restricted cash at end of year	$	26.7	$	25.5	$	47.0
Supplemental cash flow information:
Interest paid, net of amounts capitalized	$	59.3	$	67.8	$	80.8
Income taxes (refunded) / paid, net	$	(17.5)	$	(51.9)	$	1.8
Non-cash financing and investing activities:
Accruals for capital expenditures	$	42.6	$	31.7	$	16.9
Accruals from sale of business	$	—	$	2.2	$	—

See Notes to Consolidated Financial Statements.

59

DPL INC.
Consolidated Statements of Shareholder's Deficit
	Common Stock (a)
$ in millions	Outstanding Shares	Amount		Other Paid-in Capital		Accumulated Other Comprehensive Income / (Loss)		Accumulated Deficit		Total
Year ended December 31, 2019
Beginning balance	1	$	—	$	2,370.5	$	2.2	$	(2,844.4)	$	(471.7)
Net comprehensive income						(5.8)		105.4		99.6
Other				0.2						0.2
Ending balance	1	—		2,370.7		(3.6)		(2,739.0)		(371.9)
Year ended December 31, 2020
Net comprehensive loss						(8.7)		(1.0)		(9.7)
Equity contribution from parent				98.0						98.0
Other				0.1						0.1
Ending balance	1	—		2,468.8		(12.3)		(2,740.0)		(283.5)
Year ended December 31, 2021
Net comprehensive income						7.5		22.1		29.6
Equity contribution from parent				132.5						132.5
Ending balance	1	$	—	$	2,601.3	$	(4.8)	$	(2,717.9)	$	(121.4)

(a)1,500 shares authorized.

See Notes to Consolidated Financial Statements.

60

DPL Inc.

Notes to Consolidated Financial Statements

For the years ended December 31, 2021, 2020 and 2019

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 our reportable segment. The terms “we”, “us”, “our” and “ours” are used to refer to DPL and its subsidiaries.

On November 28, 2011, DPL was acquired by AES in the Merger and DPL became a wholly-owned subsidiary of AES. Following the merger of DPL and Dolphin Subsidiary II, Inc., DPL became an indirectly wholly-owned subsidiary of AES.

AES Ohio, DPL's wholly-owned subsidiary, is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such service to its approximately 534,000 customers located in West Central Ohio. AES Ohio provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio. AES Ohio sources all of the generation for its SSO customers through a competitive bid process. AES Ohio owned interests in the retired Hutchings Coal Station until its transfer in 2020 and currently owns numerous transmission facilities. Principal industries located in AES Ohio’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. AES Ohio's sales reflect the general economic conditions, seasonal weather patterns of the area, the market price of electricity and customer energy efficiency initiatives. AES Ohio also sells its proportional share of energy and capacity from its investment in OVEC into the wholesale market.

DPL’s other primary subsidiaries are MVIC and Miami Valley Lighting. MVIC is our captive insurance company that provides insurance services to AES Ohio and our other subsidiaries, and Miami Valley Lighting provides street and outdoor lighting services to customers in the Dayton region. In prior periods, AES Ohio Generation was also a primary subsidiary and sold all of its energy and capacity into the wholesale market. AES Ohio Generation retired its only remaining operating asset in May 2020 and sold it in June 2020. See Note 14 – Discontinued Operations for additional information. DPL's subsidiaries are 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.

AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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 or overcollections of riders.

Financial Statement Presentation

We prepare Consolidated Financial Statements for DPL. DPL’s 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.

All material intercompany accounts and transactions are eliminated in consolidation. We have evaluated subsequent events through the date this report is issued.

Certain amounts from prior periods have been reclassified to conform to the current period presentation.

Use of Management Estimates

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: the carrying value of Property, plant and equipment; unbilled

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revenues; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; reserves recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits.

Cash and Cash Equivalents

Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents.

Restricted Cash

Restricted cash includes cash which is restricted as to withdrawal or usage. The restrictions relate to cash required for certain balance requirements.

The following table summarizes cash, cash equivalents and restricted cash amounts reported within the Consolidated Balance Sheets that reconcile to the total of such amounts as shown on the Consolidated Statements of Cash Flows:

	December 31,
$ in millions	2021		2020
Cash and cash equivalents	$	26.6	$	25.4
Restricted cash (included in Prepayments and other current assets)	0.1		0.1
Cash, Cash Equivalents and Restricted Cash, End of Period	$	26.7	$	25.5

Accounts receivable and allowance for credit losses

Accounts receivable are as follows at December 31, 2021 and 2020:

	December 31,
$ in millions	2021		2020
Accounts receivable, net
Customer receivables	$	42.3	$	48.5
Unbilled revenue	19.2		21.6
Amounts due from affiliates	3.1		0.2
Due from PJM transmission enhancement settlement (a)	1.7		1.7
Other	5.5		0.5
Allowance for credit losses	(0.3)		(2.8)
Total accounts receivable, net	$	71.5	$	69.7

(a)    See Note 2 – Regulatory Matters for more information.

The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the years ended December 31, 2021 and 2020:

$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2021	$	2.8	$	(0.4)	$	(3.5)	$	1.4	$	0.3
2020	$	0.4	$	3.0	$	(2.3)	$	1.7	$	2.8

The allowance for credit losses primarily relates to utility customer receivables, including unbilled amounts. Expected credit loss estimates are developed by disaggregating customers into those with similar credit risk characteristics and using historical credit loss experience. In addition, we also consider how current and future economic conditions would impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of December 31, 2021. Amounts are written off when reasonable collections efforts have been exhausted. On March 12, 2020, the PUCO issued an emergency order prohibiting electric utilities, including us, from discontinuing electric utility service to customers through September 1, 2020 due to the economic impacts of COVID-19. This order along with the economic impacts of COVID-19 has resulted in an increase in past due customer receivable balances in 2020, and thus the current period provision and the allowance for credit losses increased during the prior year. During 2021, the current period provision and allowance for credit losses decreased due to lower past due customer receivable balances. See Note 16 – Risks & Uncertainties for additional discussion of the COVID-19 pandemic. As discussed in Note 2 – Regulatory Matters, AES Ohio’s uncollectible expense is deferred for future collection.

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Inventories

Inventories are carried at average cost, net of reserves, and include materials and supplies used for utility operations.

Regulatory Accounting

As a regulated utility, AES Ohio applies the provisions of FASC 980 “Regulated Operations”, which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory assets have been included as allowable costs for ratemaking purposes, as authorized by the PUCO or established regulatory practices. Regulatory liabilities generally represent obligations to make refunds or future rate reductions to customers for previous over collections or the deferral of revenues collected for costs that AES Ohio expects to incur in the future.

The deferral of costs (as regulatory assets) is appropriate only when the future recovery of such costs is probable. In assessing probability, we consider such factors as specific orders from the PUCO or the FERC, regulatory precedent and the current regulatory environment. To the extent recovery of costs is no longer deemed probable, related regulatory assets would be required to be expensed in current period earnings. Our regulatory assets and liabilities have been created pursuant to a specific order of the PUCO or the FERC or established regulatory practices, such as other utilities under the jurisdiction of the PUCO or the FERC being granted recovery of similar costs. It is probable, but not certain, that these regulatory assets will be recoverable, subject to approval by the PUCO or the FERC. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 2 – Regulatory Matters for more information.

Property, Plant and Equipment

New property, plant and equipment additions are stated at cost. For regulated transmission and distribution property, cost includes direct labor and material, allocable overhead expenses and an allowance for funds used during construction (AFUDC). AFUDC represents the cost of borrowed funds and equity used to finance regulated construction projects. Capitalization of AFUDC and interest ceases at either project completion or at the date specified by regulators. AFUDC and capitalized interest was $3.7 million, $3.0 million and $3.2 million in the years ended December 31, 2021, 2020 and 2019, respectively.

For substantially all depreciable property, when a unit of property is retired, the original cost of that property less any salvage value is charged to Accumulated depreciation and amortization, consistent with composite depreciation practices.

Impairment of Long-lived Assets

GAAP requires that we test long-lived assets for impairment when indicators of impairment exist. If an asset is deemed to be impaired, we are required to write down the asset to its fair value with a charge to current earnings. The net book value of our property, plant, and equipment was $1,700.8 million and $1,565.3 million as of December 31, 2021 and 2020, respectively. We do not believe any of these assets are currently impaired. In making this assessment, we consider such factors as: the overall condition and distribution capacity of the assets; the expected ability to recover additional expenditures in the assets; and the anticipated demand and relative pricing of retail electricity in our service territory.

Depreciation

Depreciation expense is calculated using the straight-line method, which allocates the cost of property over its estimated useful life. For DPL’s transmission and distribution assets, straight-line depreciation is applied monthly on an average composite basis using group rates that approximated 3.7% in 2021, 3.8% in 2020 and 4.0% in 2019. Depreciation expense was $72.9 million, $70.0 million and $67.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Intangibles

Intangibles include software and renewable energy credits. Renewable energy credits are carried on a weighted average cost basis and amortized as they are used or retired.

Software is amortized over seven years. Amortization expense was $3.2 million, $3.3 million and $4.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. The estimated amortization expense of this internal-

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use software over the next five years is $9.9 million ($2.8 million in 2022, $2.1 million in 2023, $1.9 million in 2024, $1.6 million in 2025 and $1.5 million in 2026).

Implementation Costs Related to Software as a Service

DPL has recorded prepayments for implementation costs related to software as a service in support of utility customer services of $8.0 million and $4.1 million as of December 31, 2021 and 2020, respectively, and these are recorded within Other Non-current Assets on the accompanying Consolidated Balance Sheets.

Debt Issuance Costs

Costs incurred in connection with the issuance of long-term debt are deferred and presented as a direct reduction from the face amount of that debt and amortized over the related financing period using the effective interest method. Debt issuance costs related to a line-of-credit or revolving credit facility are deferred and presented as an asset and amortized over the related financing period. Make-whole payments in connection with early debt retirements are classified as cash flows used in financing activities.

Financial Instruments

Our Master Trust investments in debt and equity financial instruments of publicly traded entities are classified as equity investments. These equity securities are carried at fair value and unrealized gains and losses on these securities are recorded in Other income. As these financial instruments are held to be used for the benefit of employees or former employees participating in employee benefit plans and are not used for general operating purposes, they are classified as non-current in Other non-current assets on the Consolidated Balance Sheets. See

Note 4 – Fair Value for additional information.

Financial Derivatives

We have contracts involving the physical delivery of energy. Because these contracts qualify for the normal purchases and normal sales scope exception in ASC 815, we have elected to account for them as accrual contracts, which are not adjusted for changes in fair value.

We have, in the past, used interest rate hedges to manage the interest rate risk of our variable rate debt. We used cash flow hedge accounting when the hedge or a portion of the hedge was deemed to be highly effective, which resulted in changes in fair value being recorded within accumulated other comprehensive loss, a component of shareholder’s deficit. We elected not to offset net derivative positions in the financial statements. Accordingly, we did not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 5 – Derivative Instruments and Hedging Activities for additional information.

Accumulated other comprehensive loss

The amounts reclassified out of Accumulated other comprehensive loss by component during the years ended December 31, 2021, 2020 and 2019 are as follows:

Details about Accumulated Other Comprehensive Loss Components	Affected line item in the Consolidated Statements of Operations	Years ended December 31,
$ in millions		2021		2020		2019
Gains and losses on cash flow hedges (Note 5):
	Interest expense	(1.0)		(1.1)		(1.2)
	Income tax expense	0.2		0.2		0.1
	Net of income taxes	(0.8)		(0.9)		(1.1)
	Income tax benefit from discontinued operations	—		—		(0.4)
Amortization of defined benefit pension items (Note 8):
	Other expense	2.5		1.3		0.2
	Income tax benefit	(0.6)		(0.3)		—
	Net of income taxes	1.9		1.0		0.2
Total reclassifications for the period, net of income taxes		$	1.1	$	0.1	$	(1.3)

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The changes in the components of Accumulated other comprehensive loss during the years ended December 31, 2021 and 2020 are as follows:

$ in millions	Gains / (losses) on cash flow hedges		Change in unfunded pension obligation		Total
Balance at January 1, 2020	$	14.5	$	(18.1)	$	(3.6)
Other comprehensive loss before reclassifications	—		(8.8)		(8.8)
Amounts reclassified from accumulated other comprehensive loss to earnings	(0.9)		1.0		0.1
Net current period other comprehensive loss	(0.9)		(7.8)		(8.7)
Balance at December 31, 2020	13.6		(25.9)		(12.3)
Other comprehensive income before reclassifications	—		6.4		6.4
Amounts reclassified from accumulated other comprehensive loss to earnings	(0.8)		1.9		1.1
Net current period other comprehensive income / (loss)	(0.8)		8.3		7.5
Balance at December 31, 2021	$	12.8	$	(17.6)	$	(4.8)

Insurance and Claims Costs

In addition to insurance obtained from third-party providers, MVIC, a wholly-owned captive subsidiary of DPL, provides insurance coverage solely to us and our subsidiaries for workers’ compensation, general liability and property damage on an ongoing basis. Insurance and claims costs associated with MVIC include estimated liabilities of approximately $2.3 million and $3.2 million at December 31, 2021 and 2020, respectively, within Accrued and other current liabilities on the DPL Consolidated Balance Sheets. DPL has estimated liabilities for medical, life, disability and other reserves for claims costs below certain coverage thresholds of third-party providers of approximately $9.7 million and $11.1 million at December 31, 2021 and 2020, respectively, within Accrued and other current liabilities and Other non-current liabilities on the balance sheets. The estimated liabilities for workers’ compensation, medical, life and disability costs at DPL are actuarially determined using certain assumptions. There is uncertainty associated with these loss estimates, and actual results may differ from the estimates. Modification of these loss estimates based on experience and changed circumstances is reflected in the period in which the estimate is re-evaluated.

Revenue Recognition

Revenues are recognized 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. Energy sales to customers are based on the reading of their meters that occurs on a systematic basis throughout the month. We recognize the revenues on our Consolidated Statements of Operations using an accrual method for retail and other energy sales that have not yet been billed, but where electricity has been consumed. This is termed “unbilled revenues” and is a widely recognized and accepted practice for utilities. At the end of each month, unbilled revenues are determined by the estimation of unbilled energy provided to customers since the date of the last meter reading, estimated line losses, the assignment of unbilled energy provided to customer classes and the average rate per customer class. For additional information, see Note 13 – Revenue.

Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities

AES Ohio collects certain excise taxes levied by state or local governments from its customers. AES Ohio’s excise taxes and certain other taxes are accounted for on a net basis and recorded as a reduction in revenues in the accompanying Consolidated Statements of Operations. The amounts of such taxes were as follows:

	Years ended December 31,
$ in millions	2021		2020		2019
Excise taxes collected	$	48.7	$	48.1	$	50.1

Repairs and Maintenance

Costs associated with maintenance activities are recognized at the time the work is performed. These costs, which include labor, materials and supplies and outside services required to maintain equipment and facilities, are capitalized or expensed based on defined units of property.

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Pension and Postretirement Benefits

We recognize in our Consolidated Balance Sheets an asset or liability reflecting the funded status of pension and other postretirement plans with current-year changes from actuarial gains or losses related to our regulated operations, that would otherwise be recognized in AOCL, recorded as a regulatory asset as this can be recovered through future rates. Such changes that are not related to our regulated operations are recognized in AOCL. All plan assets are recorded at fair value. We follow the measurement date provisions of the accounting guidance, which require a year-end measurement date of plan assets and obligations for all defined benefit plans.

We account for and disclose pension and postretirement benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postretirement plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost and funding requirements of the plans. Consistent with the requirements of FASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans.

See Note 8 – Benefit Plans for more information.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective income tax bases. We establish an allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Our tax positions are evaluated under a more likely than not recognition threshold and measurement analysis before they are recognized for financial statement reporting. Uncertain tax positions have been classified as noncurrent income tax liabilities unless expected to be paid within one year. Our policy for interest and penalties is to recognize interest and penalties as a component of the provision for income taxes in the Consolidated Statement of Operations.

Income taxes payable, which are includable in allowable costs for ratemaking purposes in future years, are recorded as regulatory assets or liabilities with a corresponding deferred tax liability or asset. Investment tax credits that reduced federal income taxes in the years they arose have been deferred and are being amortized to income over the useful lives of the properties in accordance with regulatory treatment. See Note 2 – Regulatory Matters for additional information.

DPL and its subsidiaries file U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 7 – Income Taxes for additional information.

Related Party Transactions

In the normal course of business, DPL enters into transactions with related parties. All material intercompany accounts and transactions are eliminated in DPL’s Consolidated Financial Statements. See Note 11 – Related Party Transactions for more information on Related Party Transactions.

DPL Capital Trust II

DPL has a wholly-owned business trust, DPL Capital Trust II (the Trust), formed for the purpose of issuing trust capital securities to third-party investors. In 2003, DPL deconsolidated the Trust upon adoption of the accounting standards related to variable interest entities and currently treats the Trust as an unconsolidated subsidiary. The Trust holds mandatorily redeemable trust capital securities. The investment in the Trust, which amounts to $0.2 million and $0.2 million at December 31, 2021 and 2020, respectively, is included within Other noncurrent assets on the consolidated balance sheets. DPL also has a note payable to the Trust amounting to $15.6 million and $15.6 million at December 31, 2021 and 2020, respectively, that was established upon the Trust’s deconsolidation in 2003. See Note 6 – Long-term debt for additional information.

In addition to the obligations under the note payable mentioned above, DPL also agreed to a security obligation, which represents a full and unconditional guarantee of payments to the capital security holders of the Trust.

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Discontinued Operations

Discontinued operations reporting occurs only when the disposal of a business or a group of assets represents a strategic shift that has (or will have) a major effect on our operations and financial results. We report financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Prior period amounts in the statement of operations and balance sheets are retrospectively revised to reflect the businesses determined to be discontinued operations. The cash flows of businesses that are determined to be discontinued operations are included within the relevant categories within operating, investing and financing activities on the face of the Consolidated Statements of Cash Flows.

Transactions between the businesses determined to be discontinued operations and businesses that are expected to continue to exist after the disposal are not eliminated to appropriately reflect the continuing operations and balances held-for-sale. The results of discontinued operations include any gain or loss recognized on closing or adjustment of the carrying amount to fair value. See Note 14 – Discontinued Operations for further information.

New accounting pronouncements

The following table provides a brief description of recent 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.

Accounting Standard	Description	Date of Adoption	Effect on the financial statements upon adoption
New Accounting Standards Adopted
2016-13, 2018-19, 2019-04, 2019-05, 2019-10, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	See discussion of the ASUs below.	January 1, 2020.	The adoption of this standard had no material effect on our consolidated financial statements.

Adoption of FASC Topic 326, "Financial Instruments - Credit Losses"

On January 1, 2020, we adopted ASC 326 Financial Instruments - Credit Losses and its subsequent corresponding updates ("ASC 326"). The new standard updates the impairment model for financial assets measured at amortized cost, known as the Current Expected Credit Loss ("CECL") model. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities are required to use a new forward-looking "expected loss" model that generally results in the earlier recognition of an allowance for credit losses. For available-for-sale debt securities with unrealized losses, entities measure credit losses as it was done under previous GAAP, except that unrealized losses due to credit-related factors are now recognized as an allowance on the balance sheet with a corresponding adjustment to earnings in the income statement.

We applied the modified retrospective method of adoption for ASC 326. Under this transition method, we applied the transition provisions starting at the date of adoption. The CECL model primarily impacts the calculation of our expected credit losses in gross customer trade accounts receivable. The adoption of ASC 326 and the application of CECL on our trade accounts receivable did not have a material impact on our Consolidated Financial Statements.

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.

Accounting Standard	Description	Date of Adoption	Effect on the financial statements upon adoption
New Accounting Standards Issued but Not Yet Effective
2020-04 and 2021-01, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The amendments in these updates provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022).	Effective for all entities as of March 12, 2020 through December 31, 2022.	We are currently evaluating the impact of adopting the standard on our consolidated financial statements.

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Note 2 – Regulatory Matters

AES Ohio ESP and SEET Proceedings, Comprehensive Settlement

Ohio law requires utilities to file either an ESP or MRO plan to establish SSO rates. From November 1, 2017 through December 18, 2019, AES Ohio operated pursuant to an approved ESP plan, which was initially approved on October 20, 2017 (ESP 3). On December 18, 2019, the PUCO approved AES Ohio's Notice of Withdrawal and reversion to its prior rate plan (ESP 1). Among other items, the PUCO Order approving the ESP 1 rate plan includes:

•Reinstating the non-bypassable RSC Rider, which provides annual revenues of approximately $79.0 million;

•Continuation of AES Ohio's Transmission Cost Recovery Rider, Storm Rider and the bypassable standard offer energy rate for AES Ohio's customers based on competitive bid auctions; and

•A placeholder rider to recover grid modernization costs, called the Infrastructure Investment Rider.

Separate from the ESP process, AES Ohio filed a petition seeking recovery of ongoing OVEC costs through a Legacy Generation Rider and was granted approval effective January 1, 2020.

On October 23, 2020, AES Ohio entered into a Stipulation and Recommendation (the Settlement) with the staff of the PUCO and various customers, and organizations representing customers of AES Ohio and certain other parties with respect to, among other matters, AES Ohio's applications pending at the PUCO for (i) approval of AES Ohio's plan to modernize its distribution grid (the Smart Grid Plan), (ii) findings that DP&L passed the SEET for 2018 and 2019, and (iii) findings that AES Ohio's current ESP 1 satisfies the SEET and the more favorable in the aggregate (MFA) regulatory test. A hearing was held in January 2021 for consideration of this settlement and on June 16, 2021, the PUCO issued their opinion and order accepting the stipulation as filed. Several applications for rehearing of the PUCO's orders relating to the Settlement were filed and denied on December 1, 2021. The OCC appealed this final PUCO Order to the Ohio Supreme Court on December 6, 2021; this appeal remains pending.

The settlement provides, among other items, for the following:

•Approval of the Smart Grid Plan outlined in the Smart Grid Plan application filed by AES Ohio with the PUCO, as modified by the terms of the settlement, including, subject to offsetting operational benefits and certain other conditions, a return on and recovery of up to $249.0 million of Smart Grid Plan Phase 1 capital investments and recovery of operational and maintenance expenses through AES Ohio's existing Infrastructure Investment Rider for a term of four years, under an aggregate cap of $267.6 million on the amount of such investments and expenses that is recoverable, and an acknowledgement that AES Ohio may file a subsequent application with the PUCO within three years seeking approvals for Phase 2 of the Smart Grid Plan;

•A commitment by AES Ohio to invest in a customer information system and supporting technologies during Phase 1 of the Smart Grid Plan, with AES Ohio recovering a return on and of prudently incurred capital investments and operational and maintenance expenses, including deferred operational and maintenance expense amounts, in a future rate case;

•Determinations that AES Ohio’s ESP 1 satisfies the prospective SEET and the MFA regulatory test and that AES Ohio satisfies the retroactive SEET for 2018 and 2019.

•A commitment by AES Ohio to file an application with the PUCO no later than October 1, 2023 for a new electric security plan that does not seek to implement certain non-bypassable charges, including those related to provider of last resort risks, stability, or financial integrity; and

•AES Ohio shareholder funding, in an aggregate amount of approximately $30.0 million over four years, for certain economic development discounts, incentives, and grants to certain commercial and industrial customers, including hospitals and manufacturers, assistance for low-income customers as well as the residents and businesses of the City of Dayton, and promotion of solar and resiliency development within AES Ohio's service territory.

Certain parties which intervened in the ESP proceedings have filed petitions for rehearing of the recent PUCO ESP orders; some of which seek to eliminate AES Ohio's RSC from the ESP 1 rates that are currently in place and others seek to re-implement ESP 3, but without the DMR. We are unable to predict the outcomes of these petitions, but if these result in terms that are more adverse than AES Ohio's current ESP rate plan, it could have a material adverse effect on our results of operations, financial condition and cash flows.

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Consistent with AES' earlier statement of intent, with the PUCO's issuance of their opinion and order, during 2021 DPL received $150.0 million from AES and, in turn, DPL made a capital contribution of $150.0 million to AES Ohio to enable AES Ohio to seek to improve its infrastructure and modernize its grid while maintaining liquidity.

Decoupling

On January 23, 2021 AES Ohio filed with the PUCO requesting approval to defer its decoupling costs consistent with the methodology approved in its Distribution Rate Case. An evidentiary hearing was held in May 2021. If approved, deferral would be effective December 18, 2019 and going forward would reduce impacts of weather, energy efficiency programs and economic changes in customer demand.

COVID-19

In response to the PUCO’s COVID-19 emergency orders, AES Ohio filed an Application on March 23, 2020, requesting waivers of certain rule and tariff requirements and deferral of certain costs and revenues including those related to deposits and reconnection fees, late payment fees, credit card fees; and waived or uncollected amounts associated with putting customers on payment plans. On May 20, 2020, the PUCO approved the application and required AES Ohio to file a plan outlining the timing and steps it plans to take in an effort to return to normal operations. The authorized deferral of those certain costs and revenues must be offset by COVID-19 related savings. AES Ohio filed its plan on July 15, 2020 and was approved by the PUCO on August 12, 2020. As a result, AES Ohio has recorded a $0.9 million and $1.2 million regulatory asset as of December 31, 2021 and 2020, respectively. Recovery of these deferrals will be addressed in a future rate proceeding.

Distribution Rate Case

On November 30, 2020, AES Ohio filed a new distribution rate case with the PUCO. This rate case proposes a revenue increase of $120.8 million per year and incorporates the DIR investments that were planned and approved in the last rate case but not yet included in distribution rates, other distribution investments since September 2015 and investments necessitated by the tornados that occurred on Memorial Day in 2019. The rate case also includes a proposal for increased tree-trimming expenses and certain customer demand-side management programs and recovery of prior-approved regulatory assets for tree trimming, uncollectible expenses and rate case expense. A hearing on this case was held in January 2022, and the case is pending a commission order.

FERC Proceedings

On March 3, 2020, AES Ohio filed an application before the FERC seeking to change its existing stated transmission rates to formula transmission rates that would be updated each calendar year. This filing was approved and made effective as of May 3, 2020, subject to possible refunds if the approved rates were modified. An uncontested settlement was filed December 10, 2020 and approved April 15, 2021. Among other things, the settlement established new depreciation rates for AES Ohio’s transmission assets and an authorized return on equity of 9.85%, and started an amortization process to return excess deferred taxes created by the TCJA. Because the approved settlement rates were lower than the proposed rates that went into effect, AES Ohio has accrued and/or paid refunds of approximately $4.4 million to users of the transmission system through December 31, 2021 through credits on PJM bills. Pursuant to the approved mechanisms and formula, transmission rates were adjusted, effective on January 1, 2022, to reflect projected 2022 costs, adjusted to true-up the projections of revenues and costs incurred during 2020. Adjustments to true-up 2021 revenues and costs will be reflected in 2023 formula transmission rates. At December 31, 2021, AES Ohio has recorded a liability of $12.6 million, with $0.4 million classified as current, representing credits owed to customers for the 2020 and 2021 annual true-ups.

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 OATT. The FERC order approved the settlement which reduces AES Ohio’s transmission costs through PJM beginning in August 2018, including credits to reimburse AES Ohio for amounts overcharged in prior years. AES Ohio estimates the prior overcharge by PJM to be $40.6 million, of which approximately $33.8 million has been repaid to AES Ohio through December 31, 2021 and $1.7 million is classified as current in "Accounts receivable, net" and $5.1 million is classified as non-current in "Other non-current assets" on the accompanying Consolidated Balance Sheet. All of the transmission charges and credits impacted by this FERC order are items that are included for full recovery in AES Ohio’s non-bypassable TCRR. Accordingly, AES Ohio has also established offsetting regulatory liabilities. While this development will have a temporary cash flow benefit to AES Ohio, there is no impact to operating income or net income as all credits will be passed to AES Ohio’s customers through the TCRR, which began in November 2018.

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Regulatory Assets and Liabilities

In accordance with FASC 980, we have recognized total regulatory assets of $201.3 million and $221.1 million at December 31, 2021 and 2020, respectively, and total regulatory liabilities of $243.9 million and $236.3 million at December 31, 2021 and 2020, respectively. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 1 – Overview and Summary of Significant Accounting Policies for accounting policies regarding Regulatory Assets and Liabilities.

The following table presents DPL’s Regulatory assets and liabilities:

	Type of Recovery	Amortization Through	December 31,
$ in millions			2021		2020
Regulatory assets, current:
Undercollections to be collected through rate riders	A/B	2022	$	23.9	$	26.8
Rate case expenses being recovered in base rates	B	2022	0.6		0.7
Total regulatory assets, current			24.5		27.5
Regulatory assets, non-current:
Pension benefits	B	Ongoing	76.2		94.4
Unrecovered OVEC charges	C	Undetermined	28.9		28.9
Regulatory compliance costs	B	Undetermined	6.3		6.3
Smart grid and AMI costs	B	2026	5.2		8.5
Unamortized loss on reacquired debt	B	Various	4.3		7.1
Deferred storm costs	A	Undetermined	15.2		11.5
Deferred rate case costs	B	Undetermined	1.8		—
Deferred vegetation management and other	A/B	Undetermined	18.7		15.7
Decoupling deferral	C	Undetermined	13.8		13.8
Uncollectible deferral	C	Undetermined	6.4		7.4
Total regulatory assets, non-current			176.8		193.6
Total regulatory assets			$	201.3	$	221.1
Regulatory liabilities, current:
Overcollection of costs to be refunded through rate riders	A/B	2022	$	14.2	$	18.0
Transmission formula rate credits	A	2022	$	0.4	$	—
Total regulatory liabilities, current			14.6		18.0
Regulatory liabilities, non-current:
Estimated costs of removal - regulated property		Not Applicable	145.2		138.8
Deferred income taxes payable through rates		Various	57.5		61.2
TCJA regulatory liability	B	Ongoing	6.5		7.2
Transmission formula rate credits	A	2023	12.2		—
PJM transmission enhancement settlement	A	2025	5.1		7.0
Postretirement benefits	B	Ongoing	2.8		4.1
Total regulatory liabilities, non-current			229.3		218.3
Total regulatory liabilities			$	243.9	$	236.3

A – Recovery of incurred costs plus rate of return.

B – Recovery of incurred costs without a rate of return.

C – Recovery not yet determined, but recovery is probable of occurring in future rate proceedings.

Current regulatory assets and liabilities primarily represent costs that are being recovered per specific rate order; recovery for the remaining costs is probable, but not certain. These costs include: (i) the Energy Efficiency Rider, (ii) the Alternative Energy Rider, (iii) the Competitive Bidding Rider and (iv) the Transmission Cost Recovery Rider. Also included are the current portion of rate case expense costs, storm costs, Smart Grid O&M and Smart Grid R&D, which do not earn a return and are described in greater detail below. Current regulatory liabilities include the overcollection of economic development costs, legacy generation costs and certain transmission related costs, including the current portion of the PJM transmission enhancement settlement, the transmission rate true-up and the TCJA regulatory liability (see above).

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AES Ohio is earning a return on $8.1 million of this net current deferral including: (i) the Energy Efficiency Rider, (ii) the Alternative Energy Rider, (iii) the Competitive Bidding Rider and (iv) the Transmission Cost Recovery Rider. These regulatory assets are partially offset by the overcollection of economic development costs and legacy generation costs.

Pension benefits represent the qualifying FASC 715 “Compensation - Retirement Benefits” costs of our regulated operations that for ratemaking purposes are deferred for future recovery. We recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory asset represents the regulated portion that would otherwise be charged as a loss to OCI. As per PUCO and FERC precedents, these costs are probable of future rate recovery.

Unrecovered OVEC charges includes the portion of charges from OVEC that were not recoverable through AES Ohio’s Fuel Rider from October 2014 through October 2017. Additionally, it includes net OVEC costs from December 19, 2019 through December 31, 2019. AES Ohio expects to recover these costs through a future rate proceeding. Beginning on November 1, 2017, through December 18, 2019, current OVEC costs were being recovered through AES Ohio’s reconciliation rider which was authorized as part of the ESP 3. Beginning January 1, 2020, AES Ohio began recovering its current net OVEC costs through its Legacy Generation Rider, established pursuant to ORC 4928.148.

Regulatory compliance costs represent the long-term portion of the regulatory compliance costs which include the following costs: (i) Consumer Education Campaign, (ii) Retail Settlement System, (iii) Generation Separation, (iv) Bill Format Redesign, (v) Green Pricing Tariff and (vi) Supplier Consolidated Billing. All of these costs except for Generation Separation earn a return. These costs were being recovered over a three-year period that began November 1, 2017 through a rider approved in the ESP 3. That rider was eliminated with the approval of the ESP 1 rate plan, so the balance as of December 18, 2019 remains a regulatory asset for future recovery.

Rate case expenses represents costs associated with preparing distribution rate cases. AES Ohio was granted recovery of these costs for the 2015 case which do not earn a return, as part of the DRO. Recovery of costs for the 2020 case were included in the pending filing.

Smart Grid and AMI costs represent costs incurred as a result of studying and developing distribution system upgrades and implementation of AMI. In a PUCO order on January 5, 2011, the PUCO indicated that it expects AES Ohio to continue to monitor other utilities’ Smart Grid and AMI programs and to explore the potential benefits of investing in the Smart Grid Plan and AMI programs and that AES Ohio will, when appropriate, file new Smart Grid and/or AMI business cases in the future. These costs are included in the October 23, 2020 settlement described above.

Unamortized loss on reacquired debt represents losses on long-term debt reacquired or redeemed in prior periods that have been deferred. These deferred losses are being amortized over the lives of the original issues in accordance with the rules of the FERC and the PUCO.

Deferred storm costs represent the long-term portion of deferred costs for major storms which occurred during 2019, 2020 and 2021. AES Ohio plans to file petitions seeking recovery of storm costs. Recovery of these costs is probable, but not certain.

Vegetation management costs represents costs incurred from outside contractors for tree trimming and other vegetation management services. Calculation terms were agreed to in the stipulation approved in the DRO. The terms were an annual baseline of $10.7 million in 2018 and $15.7 million thereafter. Amounts over the baseline will be deferred subject to an annual deferral maximum of $4.6 million. Annual spending less than the vegetation management baseline amount will result in a reduction to the regulatory asset or creation of a regulatory liability. These costs are included in AES Ohio's pending distribution rate case application.

Decoupling deferral represents the change in the revenue requirement based on a per customer methodology in the stipulation approved in the DRO and includes deferrals through December 18, 2019. These costs were previously recovered through a Decoupling Rider; however, AES Ohio withdrew its application in the ESP 3 and in doing so, the PUCO ordered on December 18, 2019 in the ESP 1 order, that AES Ohio no longer has a Decoupling Rider. As described above, AES Ohio filed a petition seeking authority to record a regulatory asset to accrue revenues that would have otherwise been collected through the Decoupling Rider.

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Uncollectible deferral represents deferred uncollectible expense associated with the nonpayment of electric service, less the revenues associated with the bypassable uncollectible portion of the standard offer rate. The DRO established that these costs would be recovered in a rider outside of base rates, thus no uncollectible expense is included in base rates. These costs are included in our pending distribution rate case.

Estimated costs of removal - regulated property reflect an estimate of amounts collected in customer rates for costs that are expected to be incurred in the future to remove existing transmission and distribution property from service when the property is retired.

Deferred income taxes payable through rates represent deferred income tax liabilities recognized from the normalization of flow-through items as the result of taxes previously charged to customers. A deferred income tax asset or liability is created from a difference in income recognition between tax laws and accounting methods. As a regulated utility, AES Ohio includes in ratemaking the impacts of current income taxes and changes in deferred income tax liabilities or assets. Accordingly, this liability reflects the estimated deferred taxes AES Ohio expects to return to customers in future periods.

TCJA regulatory liability represents the long-term portion of both protected and unprotected excess ADIT for both transmission and distribution portions, grossed up to reflect the revenue requirement. As a part of the DRO, AES Ohio agreed that savings from the TCJA attributable to distribution facilities, including the excess ADIT and the regulatory liability, constitute amounts that will be returned to customers. As a result of the TCJA and subsequent DRO, AES Ohio entered into a stipulation to resolve all remaining TCJA items related to its distribution rates, including a proposal to return no less than $4.0 million per year for the first five years unless fully returned in the first five years via a tax savings cost rider for the distribution portion of the balance. On September 26, 2019, an order approved the stipulation in its entirety.

Transmission Formula Rate Credits liability represents the amounts due to customers as a result of the implementation of transmission formula rates, which are adjusted each year based on actual revenue and costs from a previous year, as described above under FERC Proceedings.

PJM Transmission Enhancement Settlement liability represents the Transmission Enhancement Settlement charges for which AES Ohio is due a refund per FERC Order EL05-121-009 issued on May 31, 2018. The Order states that customers are due a refund for part of these charges which will be received starting August 2018 through 2025. Refunds received will be returned to customers via the transmission cost rider.

Postretirement benefits represent the qualifying FASC 715 “Compensation – Retirement Benefits” gains related to our regulated operations that, for ratemaking purposes, are probable of being reflected in future rates. We recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory liability represents the regulated portion that would otherwise be reflected as a gain to OCI.

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Note 3 – 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

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Note 4 – Fair Value

The fair values of our financial instruments are based on published sources for pricing when possible. We rely on valuation models only when no other method is available to us. The fair value of our financial instruments represents estimates of possible value that may or may not be realized in the future.

The table below presents the fair value and cost of our non-derivative financial instruments at December 31, 2021 and 2020.

	December 31, 2021				December 31, 2020
$ in millions	Cost		Fair Value		Cost		Fair Value
Assets
Money market funds	$	0.4	$	0.4	$	0.3	$	0.3
Equity securities	1.9		5.1		2.1		4.5
Debt securities	3.8		3.9		4.0		4.1
Total assets	$	6.1	$	9.4	$	6.4	$	8.9
	Carrying Value		Fair Value		Carrying Value		Fair Value
Liabilities
Long-term debt	$	1,395.5	$	1,519.7	$	1,393.6	$	1,571.6

Fair Value Hierarchy

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. These inputs are then categorized as:

•Level 1 (quoted prices in active markets for identical assets or liabilities);

•Level 2 (observable inputs such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active); or

•Level 3 (unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability).

Valuations of assets and liabilities reflect the value of the instrument including the values associated with counterparty risk. We include our own credit risk and our counterparty’s credit risk in our calculation of fair value using global average default rates based on an annual study conducted by a large rating agency.

We did not have any transfers of the fair values of our financial instruments among Level 1, Level 2 or Level 3 of the fair value hierarchy during the years ended December 31, 2021 and 2020.

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 debt is presented at the carrying value, net of unamortized premium or discount, in the financial statements. The debt amounts include the current portion payable in the next twelve months and have maturities that range from 2025 to 2061.

Master Trust Assets

AES Ohio 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. 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 non-current assets on the consolidated balance sheets and classified as equity securities. Gains and losses on these assets were not material during the years ended December 31, 2021, 2020 or 2019.

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The fair value of assets and liabilities at December 31, 2021 and 2020 and the respective category within the fair value hierarchy for DPL was determined as follows:

$ in millions	Fair Value at December 31, 2021 (a)								Fair Value at December 31, 2020 (a)
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Master trust assets
Money market funds	$	0.4	$	—	$	—	$	0.4	$	0.3	$	—	$	—	$	0.3
Equity securities	—		5.1		—		5.1		—		4.5		—		4.5
Debt securities	—		3.9		—		3.9		—		4.1		—		4.1
Total assets	$	0.4	$	9.0	$	—	$	9.4	$	0.3	$	8.6	$	—	$	8.9
Liabilities
Long-term debt	$	—	$	1,502.5	$	17.2	$	1,519.7	$	—	$	1,554.2	$	17.4	$	1,571.6
Total liabilities	$	—	$	1,502.5	$	17.2	$	1,519.7	$	—	$	1,554.2	$	17.4	$	1,571.6

(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 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.

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. Additional Level 3 disclosures are not presented since our long-term debt is not recorded at fair value.

Note 5 – Derivative Instruments and Hedging Activities

DPL previously entered into various financial instruments, including derivative financial instruments. We used derivatives principally to manage the interest rate risk associated with our long-term debt. The derivative instruments were used for risk management purposes and were designated as cash flow hedges if they qualified under FASC 815 for accounting purposes.

In August 2020, the two interest rate swaps to hedge the variable interest on the $140.0 million variable interest rate tax-exempt First Mortgage Bonds expired, as the associated debt reached maturity. The interest rate swaps had a combined notional amount of $140.0 million and settled monthly based on a one-month LIBOR. The AOCL associated with the swaps was amortized out of AOCL into interest expense over the life of the underlying debt.

We also 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 AOCL into interest expense.

We used the income approach to value the swaps, which consists of forecasting future cash flows based on

contractual notional amounts and applicable and available market data as of the valuation date. The most common market data inputs used in the income approach include volatilities, spot and forward benchmark interest rates (LIBOR). Forward rates with the same tenor as the derivative instrument being valued are generally obtained from published sources, with these forward rates being assessed quarterly at a portfolio-level for reasonableness versus comparable published rates. We reclassified gains and losses on the swaps out of AOCL and into earnings in those periods in which hedged interest payments occurred.

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The following tables provide information on gains or losses recognized in AOCL for the cash flow hedges for the periods indicated:

	Years ended December 31,
	2021		2020		2019
$ in millions (net of tax)	Interest Rate Hedge		Interest Rate Hedge		Power		Interest Rate Hedge
Beginning accumulated derivative gain in AOCL	$	13.6	$	14.5	$	0.4	$	16.6
Net losses associated with current period hedging transactions	—		—		—		(1.0)
Net gains reclassified to earnings:
Interest expense	(0.8)		(0.9)		—		(1.1)
Income from discontinued operations before income tax	—		—		(0.4)		—
Ending accumulated derivative gain in AOCL	$	12.8	$	13.6	$	—	$	14.5
Portion expected to be reclassified to earnings in the next twelve months	$	(0.8)

Note 6 – Long-term debt

Long-term debt is as follows:

$ in millions	Interest Rate	Maturity	December 31, 2021		December 31, 2020
First Mortgage Bonds	3.95%	2049	$	425.0	$	425.0
First Mortgage Bonds	3.20%	2040	140.0		140.0
U.S. Government note	4.20%	2061	17.2		17.4
Unamortized deferred financing costs			(5.4)		(5.7)
Unamortized debt discounts and premiums, net			(2.5)		(2.6)
Total long-term debt at subsidiary			574.3		574.1
Senior unsecured bonds	4.125%	2025	415.0		415.0
Senior unsecured bonds	4.35%	2029	400.0		400.0
Note to DPL Capital Trust II (a)	8.125%	2031	15.6		15.6
Unamortized deferred financing costs			(8.6)		(10.2)
Unamortized debt discounts and premiums, net			(0.8)		(0.9)
Total long-term debt			1,395.5		1,393.6
Less: current portion			(0.2)		(0.2)
Long-term debt, net of current portion			$	1,395.3	$	1,393.4

(a)    Note payable to related party. See Note 11 – Related Party Transactions for additional information.

At December 31, 2021, maturities of long-term debt are summarized as follows:

Due during the years ending December 31,
$ in millions
2022	$	0.2
2023	0.2
2024	0.2
2025	415.2
2026	0.2
Thereafter	996.8
	1,412.8
Unamortized discounts	(3.3)
Deferred financing costs, net	(14.0)
Total long-term debt	$	1,395.5

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Revolving Credit Agreement

At December 31, 2021 and December 31, 2020, the DPL Credit Agreement had outstanding borrowings of $65.0 million and $80.0 million, respectively. At December 31, 2021 and December 31, 2020 the AES Ohio Credit Agreement had outstanding borrowings of $0.0 million and $20.0 million, respectively.

Significant Transactions

On July 31, 2020, AES Ohio issued $140.0 million of First Mortgage Bonds and on August 3, 2020 used the proceeds to purchase at par value the $140.0 million of outstanding tax-exempt Ohio Air Quality Development Authority (OAQDA) Collateralized Pollution Control Revenue Refunding Bonds that had been issued in 2015. The new First Mortgage Bonds carry an interest rate of 3.20% and mature on July 31, 2040. The OAQDA Revenue bonds have not been legally cancelled and can be re-issued at the discretion of AES Ohio at any time. These bonds will be held in trust while we continue to evaluate market conditions and explore suitable long-term financing alternatives. Accordingly, as of December 31, 2021 and 2020, the $140.0 million variable rate OAQDA Revenue bonds are not treated as being outstanding in the Consolidated Balance Sheets.

On June 1, 2020 DPL amended its secured revolving credit facility. As a result of the amendment, the borrowing limit was reduced from $125.0 million to $110.0 million, the Total Debt to EBITDA covenant was eliminated, the EBITDA to Interest Expense covenant was reduced from 2.25 to 1.00 to 1.70 to 1.00, increasing to 1.75 to 1.00 as of September 30, 2022 and 2.00 to 1.00 as of December 31, 2022, and a trailing-twelve months minimum EBITDA covenant of $125.0 million was added, increasing to $130.0 million as of September 30, 2022 and $150.0 million as of December 31, 2022. Starting with the quarter ended September 30, 2021, the borrowing limit will be reduced by $5.0 million per quarter should DPL’s Total Debt to EBITDA ratio calculated for the period of four consecutive quarters exceed 7.00 to 1.00. As of December 31, 2021, DPL exceeded this ratio and the borrowing limit was reduced from $105.0 million to $100.0 million.

On June 19, 2020 DPL closed a $415.0 million issuance of senior unsecured notes. These notes carry an interest rate of 4.125% and mature on July 1, 2025. Proceeds from the issuance and cash on hand were used to redeem in-full the remaining balance of $380.0 million of DPL's 7.25% senior unsecured notes. These bonds were redeemed at par plus accrued interest and a make-whole premium of $30.8 million on July 20, 2020.

Debt Covenants and Restrictions

DPL’s revolving credit agreement has two financial covenants. The first financial covenant, a minimum EBITDA, calculated at the end of each fiscal quarter for the four prior fiscal quarters, of $125.0 million is required, stepping up to $130.0 million on September 30, 2022 and $150.0 million on December 31, 2022. As of December 31, 2021, this financial covenant was in compliance.

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 1.70 to 1.00, and steps up to 1.75 to 1.00 on September 30, 2022 and 2.00 to 1.00 as of December 31, 2022. As of December 31, 2021, this financial covenant was in compliance.

DPL’s secured revolving credit agreement 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 a result, as of December 31, 2021, DPL was prohibited from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries).

AES Ohio's unsecured revolving credit facility and Bond Purchase Agreement (financing document entered into in connection with the issuance of AES Ohio's First Mortgage Bonds, on July 31, 2020) has one financial covenant. The covenant 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. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. This financial covenant was in compliance as of December 31, 2021.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends to its parent, DPL. As of December 31, 2021, AES Ohio and DPL were in compliance with all debt covenants, including the financial covenants described above.

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Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage.

Note 7 – Income Taxes

DPL’s components of income tax expense for both continuing and discontinued operations were as follows:

	Years ended December 31,
$ in millions	2021		2020		2019
Components of tax benefit
Federal - current	$	(5.5)	$	(45.1)	$	(22.0)
State and Local - current	—		(0.1)		0.6
Total current	(5.5)		(45.2)		(21.4)
Federal - deferred	4.4		38.7		14.1
State and local - deferred	0.4		1.1		1.1
Total deferred	4.8		39.8		15.2
Total tax benefit	$	(0.7)	$	(5.4)	$	(6.2)

Effective and Statutory Rate Reconciliation

The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to the effective tax rate, as a percentage of total income before taxes for the years ended December 31, 2021, 2020 and 2019:

	Years ended December 31,
	2021		2020		2019
Statutory Federal tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of Federal tax benefit	2.8	%	(13.1)	%	1.4	%
AFUDC - equity	3.3	%	(23.6)	%	(0.1)	%
Depreciation of flow-through differences	(29.0)	%	94.8	%	(28.2)	%
Amortization of investment tax credits	(0.6)	%	4.1	%	(0.3)	%
Other, net	(0.8)	%	1.2	%	(0.1)	%
Effective tax rate	(3.3)	%	84.4	%	(6.3)	%

Deferred Income Taxes

Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and (b) operating loss carryforwards. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. Investment tax credits related to utility property have been deferred and are being amortized over the estimated useful lives of the related property.

The components of our deferred taxes are as follows:

	December 31,
$ in millions	2021		2020
Net non-current assets / (liabilities)
Depreciation / property basis	$	(166.4)	$	(160.5)
Income taxes recoverable	13.6		14.4
Regulatory assets	(20.6)		(21.0)
Investment tax credit	0.6		0.6
Compensation and employee benefits	(3.4)		(1.7)
Intangibles	(0.4)		(0.4)
Long-term debt	(1.5)		(1.3)
Other (a)	(9.8)		(7.3)
Net non-current liabilities	$	(187.9)	$	(177.2)

(a)    The Other caption includes deferred tax assets of $37.1 million in 2021 and $39.0 million in 2020 related to state and local tax net operating loss carryforwards, with related valuation allowances of $37.1 million in 2021 and $39.0 million in 2020. These net operating loss carryforwards expire from 2020 to 2037.

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During the year ended December 31, 2021, DPL received a payment from AES of $17.5 million against its tax receivable balance as part of a $150.0 million contribution from AES. During the year ended December 31, 2020, DPL received a payment from AES of $52.0 million against its tax receivable balance as part of a $150.0 million contribution from AES. See Note 9 – Shareholder's Deficit for additional information.

The following table presents the tax expense / (benefit) related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss.

	Years ended December 31,
$ in millions	2021		2020		2019
Tax expense / (benefit)	$	2.2	$	(2.6)	$	(0.5)

Uncertain Tax Positions

We apply the provisions of GAAP relating to the accounting for uncertainty in income taxes. The balance of unrecognized tax benefits was $0.4 million at December 31, 2021 and $1.4 million at December 31, 2020. Due to the closure of federal tax exams in 2021, the Company has reviewed its uncertain tax positions and determined that $1.0 million will not be sustained. Consequently, the $1.0 million of uncertain tax positions were reversed. The reversals did not affect the annual effective tax rate, but were reclassified to current tax payable. The total amount of remaining unrecognized tax benefits that would benefit the effective tax rate as of December 31, 2021 is $0.4 million.

The amount anticipated to result in a net decrease to unrecognized tax benefits within 12 months of December 31, 2021 is estimated to be $0.0 million.

The following table presents the changes to our uncertain tax positions:

$ in millions	2021		2020		2019
Unrecognized tax benefits at January 1	$	1.4	$	3.5	$	3.5
Gross increases - current period tax positions	—		—		—
Gross decreases - prior period tax positions	(1.0)		(2.1)		—
Unrecognized tax benefits at December 31	$	0.4	$	1.4	$	3.5

Tax years subsequent to 2011 remain open to examination by taxing authorities. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe we have appropriately accrued for our uncertain tax positions. However, audit outcomes and the timing of audit settlements and future events that would impact our previously recorded unrecognized tax benefits are subject to significant uncertainty. It is possible that the ultimate outcome of future examinations may exceed our provision for current unrecognized tax benefits.

We recognize interest and penalties related to unrecognized tax benefits in Income tax expense. The amounts accrued and the tax expense / (benefit) recorded were not material for each period presented.

DPL is no longer subject to U.S. federal income tax examinations for tax years through 2011, but is open for all subsequent periods. DPL is no longer subject to state income tax examinations for tax years through 2016, but is open for all subsequent periods.

Note 8 – Benefit Plans

Defined Contribution Plans

AES Ohio sponsors two defined contribution plans. One is for non-union employees (the management plan) and one is for collective bargaining employees (the union plan). Both plans are qualified under Section 401 of the Internal Revenue Code.

Certain non-union and union employees become eligible to participate in their respective plan upon date of hire.

Participants may elect to contribute up to 85% of eligible compensation to their plan. Non-union participant contributions are matched 100% on the first 1% of eligible compensation and 50% on the next 5% of eligible compensation and they are fully vested in their employer contributions after 2 years of service. Union participant

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contributions are matched 150% but are capped at $2,650 for 2021 and they are fully vested in their employer contributions after 3 years of service. All participants are fully vested in their own contributions.

We contributed $3.3 million, $3.2 million and $3.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. AES Ohio matching contributions are paid bi-weekly, in arrears. The contributions by year may include the bi-weekly matching contribution that is paid in the following year in addition to employer matching true-up contributions. AES Ohio also contributes an annual bonus to the accounts of its union participants. This payment is typically made in January of the following year.

Defined Benefit Plans

AES Ohio sponsors a traditional defined benefit pension plan for most of the employees of DPL and its subsidiaries. For collective bargaining employees, the defined benefits are based on a specific dollar amount per year of service. For all other employees (management employees), the traditional defined benefit pension plan is based primarily on compensation and years of service. As of December 31, 2010, this traditional pension plan formula was closed to new management employees. A participant is 100% vested in all amounts credited to his or her account upon the completion of five vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. Employees that transferred from AES Ohio to the Service Company maintain their previous eligibility to participate in the AES Ohio pension plan.

Almost all management employees beginning employment on or after January 1, 2011 participate in a cash balance pension plan formula. Similar to the traditional pension plan for management employees, the cash balance benefits are based on compensation and years of service. A participant shall become 100% vested in all amounts credited to his or her account upon the completion of three vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. Vested benefits in the cash balance plan are fully portable upon termination of employment.

In addition, we have a Supplemental Executive Retirement Plan (SERP) for certain retired key executives. The SERP has an immaterial unfunded liability related to agreements for retirement benefits of certain terminated and retired key executives.

We recognize an asset for a plan’s overfunded status and a liability for a plan’s underfunded status and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. For the transmission and distribution areas of our electric business, these amounts are recorded as regulatory assets and liabilities which represent the regulated portion that would otherwise be charged or credited to AOCL. We have historically recorded these costs on the accrual basis, and this is how these costs have been historically recovered through customer rates. This factor, combined with the historical precedents from the PUCO and FERC, make these costs probable of future rate recovery.

Postretirement Benefits

Qualified employees who retired prior to 1987 and their dependents are eligible for health care and life insurance benefits until their death, while qualified employees who retired after 1987 are eligible for life insurance benefits and partially subsidized health care. The partially subsidized health care is at the election of the employee, who pays most of the cost, and is available only from their retirement until they are covered by Medicare. 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 $8.9 million and $9.0 million at December 31, 2021 and 2020, respectively, were not material to the consolidated financial statements in the periods covered by this report.

The following tables set forth the changes in our pension plans' obligations and assets recorded on the Consolidated Balance Sheets at December 31, 2021 and 2020. The amounts presented in the following tables for pension obligations include the collective bargaining plan formula, traditional management plan formula and cash balance plan formula and the SERP in the aggregate and have not been adjusted for $1.7 million, $1.4 million and

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$1.4 million of costs billed to the Service Company for the years ended December 31, 2021, 2020 and 2019, respectively.

$ in millions	Years ended December 31,
Change in benefit obligation	2021		2020
Benefit obligation at January 1	$	449.5	$	421.5
Service cost	4.5		3.7
Interest cost	8.2		11.8
Plan amendments	2.3		—
Actuarial (gain) / loss	(12.7)		52.7
Benefits paid	(35.6)		(40.2)
Benefit obligation at December 31	416.2		449.5
Change in plan assets
Fair value of plan assets at January 1	365.1		352.0
Actual return on plan assets	24.0		45.6
Employer contributions	10.0		7.7
Benefits paid	(35.6)		(40.2)
Fair value of plan assets at December 31	363.5		365.1
Unfunded status of plan	$	(52.7)	$	(84.4)
	December 31,
Amounts recognized in the Balance sheets	2021		2020
Current liabilities	$	(0.2)	$	(0.2)
Non-current liabilities	(52.5)		(84.2)
Net liability at end of year	$	(52.7)	$	(84.4)
Amounts recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax
Components:
Prior service cost	$	8.3	$	6.9
Net actuarial loss	93.3		124.0
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	101.6	$	130.9
Recorded in:
Regulatory asset	$	74.1	$	92.7
Accumulated Other Comprehensive Loss	27.5		38.2
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	101.6	$	130.9

The accumulated benefit obligation for our defined benefit pension plans was $400.7 million and $436.4 million at December 31, 2021 and 2020, respectively.

The net periodic benefit cost of the pension plans was:

	Years ended December 31,
$ in millions	2021			2020			2019
Service cost	$	4.5		$	3.7		$	3.7
Interest cost	8.2			11.8			14.9
Expected return on assets	(15.0)			(18.6)			(20.1)
Amortization of unrecognized:
Actuarial loss	9.0			1.0			4.2
Prior service cost	0.9			6.1			1.3
Net periodic benefit cost	$	7.6		$	4.0		$	4.0
Rates relevant to each year's expense calculations
Discount rate	2.44		%	3.33		%	4.35		%
Expected return on plan assets	4.55		%	5.60		%	6.25		%

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The following table presents other changes in plan assets and benefit obligations recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities.

	Years ended December 31,
$ in millions	2021		2020		2019
Net actuarial loss / (gain)	$	(21.7)	$	25.8	$	5.3
Prior service cost	2.3		—		—
Reversal of amortization item:
Net actuarial loss	(9.0)		(1.0)		(4.2)
Prior service cost	(0.9)		(6.1)		(1.3)
Total recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities	$	(29.3)	$	18.7	$	(0.2)
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities	$	(21.7)	$	22.7	$	3.8

Significant Gains and Losses Related to Changes in the Benefit Obligation

The actuarial gain of $12.7 million decreased the benefit obligation for the year ended December 31, 2021 and an actuarial loss of $52.7 million increased the benefit obligation for the year ended December 31, 2020. The actuarial gain in 2021 was primarily due to an increase in the discount rate and the actuarial loss in 2020 was primarily due to a decrease in the discount rate.

Assumptions

Our expected return on plan asset assumptions, used to determine benefit obligations, are based on historical long-term rates of return on investments, which use the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors, such as inflation and interest rates, as well as asset diversification and portfolio rebalancing, are evaluated when long-term capital market assumptions are determined. Peer data and historical returns are reviewed to verify reasonableness and appropriateness.

At December 31, 2021, we are increasing our long-term rate of return assumption to 4.60% for pension plan assets. The rate of return represents our long-term assumptions based on our long-term portfolio mix. Also, at December 31, 2021, we have increased our assumed discount rate to 2.83% from 2.44% for pension expense to reflect current duration-based yield curve discount rates. A one percent increase in the rate of return assumption for pension would result in a decrease in 2022 pension expense of approximately $3.4 million. A one percent decrease in the rate of return assumption for pension would result in an increase in 2022 pension expense of approximately $3.4 million. A 25-basis point increase in the discount rate for pension would result in a decrease of approximately $0.5 million to 2022 pension expense. A 25-basis point decrease in the discount rate for pension would result in an increase of approximately $0.5 million to 2022 pension expense.

In determining the discount rate to use for valuing liabilities, we used a market yield curve on high-quality fixed income investments as of December 31, 2021. We project the expected benefit payments under the plan based on participant data and based on certain assumptions concerning mortality, retirement rates, termination rates, etc. The expected benefit payments for each year are then discounted back to the measurement date using the appropriate spot rate for each half-year from the yield curve, thereby obtaining a present value of all expected future benefit payments using the yield curve. Finally, an equivalent single discount rate is determined which produces a present value equal to the present value determined using the full yield curve.

Consistent with the requirements of FASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans.

In future periods, differences in the actual return on pension plan assets and assumed return, or changes in the discount rate, will affect the timing of contributions, if any, to the plans.

The weighted average assumptions used to determine benefit obligations at December 31, 2021, 2020 and 2019 were:

Benefit Obligation Assumptions	Pension
	2021	2020	2019
Discount rate for obligations	2.83%	2.44%	3.33%
Rate of compensation increases	3.21%	3.21%	3.94%

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Pension Plan Assets

Plan assets are invested in multiple asset classes using a de-risking framework designed to manage the Plan's funded status volatility and minimize future cash contributions. Investment strategies and asset allocations are intended to allocate additional assets to the fixed income asset class should the Plan's funded status improve and is therefore broadly described as the Dynamic De-risking Strategy. Investment performance and asset allocation are measured and monitored on an ongoing basis.

Plan assets are managed in a balanced portfolio comprised of two major components: return seeking assets and liability hedging assets. The expected role of plan return seeking assets is to provide additional return with associated higher levels of risk, while the role of liability hedging assets is to correlate the interest rate of the fixed income investments with that of the Plan's liabilities.

Strategic asset allocation guidelines are determined by a Risk/Advisory Committee and approved by a Fiduciary Committee. These allocations consider the plan’s long-term objectives. The long-term target allocations for plan assets are 40% – 50% for return seeking assets and 50% – 60% for liability hedging assets. Return seeking assets include U.S. and international equity, while liability hedging assets include long-duration and high-yield bond funds and emerging market debt funds.

The investment approach is to move the Plan to a more de-risked position, if and when the overall funded status of the Plan improves, by periodically rebalancing the allocation of the Plan's investments in growth assets and liability hedging assets in accordance with the committee's glide path. This strategy requires the daily monitoring of the Plan's ratio of assets to liabilities in order to determine whether approved trigger points have been met, requiring the rebalancing of the assets.

All plan assets at December 31, 2021 are common collective trusts. With the exception of the cash and cash equivalents, the collective trusts are valued using the net asset value method and are categorized as Level 2 in the fair value hierarchy. The underlying investments are mutual funds, common stock. or debt securities, in alignment with the target asset allocation.

The following table summarizes our target pension plan allocation for 2021:

	Long-Term Mid-Point Target Allocation	Percentage of plan assets as of December 31,
Asset category		2021	2020
Equity Securities	41%	42%	42%
Debt Securities	59%	57%	57%
Cash and Cash Equivalents	—%	1%	1%

The fair values of our pension plan assets at December 31, 2021 by asset category are as follows:

$ in millions	Market Value at December 31, 2021		Quoted prices in active markets for identical assets		Significant observable inputs		Significant unobservable inputs
Asset category			(Level 1)		(Level 2)		(Level 3)
Mutual fund - equities (a)	$	151.8	$	—	$	151.8	$	—
Mutual fund - debt (b)	144.0		—		144.0		—
Government debt securities (c)	65.8		—		65.8		—
Cash and cash equivalents (d)	1.9		1.9		—		—
Total pension plan assets	$	363.5	$	1.9	$	361.6	$	—

(a)    This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method.

(b)    This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method.

(c)    This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method.

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(d)    This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost.

The fair values of our pension plan assets at December 31, 2020 by asset category are as follows:

$ in millions	Market Value at December 31, 2020		Quoted prices in active markets for identical assets		Significant observable inputs		Significant unobservable inputs
Asset category			(Level 1)		(Level 2)		(Level 3)
Mutual fund - equities (a)	$	153.8	$	—	$	153.8	$	—
Mutual fund - debt (b)	144.6		—		144.6		—
Government debt securities (c)	64.8		—		64.8		—
Cash and cash equivalents (d)	1.9		1.9		—		—
Total pension plan assets	$	365.1	$	1.9	$	363.2	$	—

(a)    This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method.

(b)    This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method.

(c)    This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method.

(d)    This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost.

Pension Funding

We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and, in addition, make voluntary contributions from time to time. We contributed $9.8 million to the pension plan in the year ended December 31, 2021, and $7.5 million in each of the years ended December 31, 2020 and 2019.

We expect to make contributions of $0.2 million to our SERP in 2022 to cover benefit payments. We also expect to make contributions of $7.5 million to our pension plan during 2022.

Funding for the qualified Defined Benefit Pension Plan is based upon actuarially determined contributions that consider the amount deductible for income tax purposes and the minimum contribution required under ERISA, as amended by the Pension Protection Act of 2006, as well as targeted funding levels necessary to meet certain thresholds.

From an ERISA funding perspective, AES Ohio’s funded target liability percentage was estimated to be 114%. In addition, AES Ohio must also contribute the normal service cost earned by active participants during the plan year. The funding of normal cost is expected to be approximately $5.8 million in 2022, which includes $1.7 million for plan expenses. Each year thereafter, if the plan’s underfunding increases to more than the present value of the remaining annual installments, the excess is separately amortized over seven years. AES Ohio’s funding policy for the pension plans is to contribute annually no less than the minimum required by applicable law, and no more than the maximum amount that can be deducted for federal income tax purposes.

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

Estimated future benefit payments
$ in millions due within the following years:	Pension
2022	$	24.5
2023	$	24.3
2024	$	24.1
2025	$	23.7
2026	$	23.6
2027 - 2031	$	114.4

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Note 9 – Shareholder's Deficit

Dividend Restrictions

DPL’s Amended Articles of Incorporation (the Articles) and the DPL Credit Agreement contain provisions which state that DPL may not make a distribution to its shareholder or make a loan to any of its affiliates (other than its subsidiaries), unless: (a) there exists no Event of Default (as defined in the Articles) and no such Event of Default would result from the making of the distribution or loan; and either (b)(i) at the time of, and/or as a result of, the distribution or loan, 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, (b)(ii) if such ratios are not within the parameters, DPL’s senior long-term debt rating from one of the three major credit rating agencies is at least investment grade. Further, the restrictions on the payment of distributions to a shareholder and the making of loans to its affiliates (other than subsidiaries) cease to be in effect if the three major credit rating agencies confirm that a lowering of DPL’s senior long-term debt rating below investment grade by the credit rating agencies would not occur without these restrictions.

As described above, DPL’s Amended Articles of Incorporation and the DPL Credit Agreement contain restrictions on DPL’s ability to make dividends, distributions and affiliate loans (other than to its subsidiaries), including restrictions on making such dividends, distributions and loans if certain financial ratios exceed specified levels and DPL’s senior long-term debt rating from a rating agency is below investment grade. As of December 31, 2021, DPL did not meet these requirements. As a result, as of December 31, 2021, DPL was prohibited under its Articles of Incorporation and Credit Agreement from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries).

Common Stock

Effective on the Merger date, DPL's Amended Articles of Incorporation provided for 1,500 authorized common shares, of which one share is outstanding at December 31, 2021.

AES Ohio has 50,000,000 authorized common shares, of which 41,172,173 are outstanding at December 31, 2021. All common shares are held by AES Ohio’s parent, DPL.

Capital Contributions from AES

During each of the years ended December 31, 2021 and 2020, DPL received a $150.0 million cash contribution from AES, which DPL then used to make a $150.0 million equity contribution to AES Ohio. The cash contributions at DPL represented equity contributions of $132.5 million and $98.0 million in 2021 and 2020, respectively; and payments of $17.5 million and $52.0 million against its tax receivable in 2021 and 2020, respectively. The proceeds from the equity contributions at AES Ohio will enable AES Ohio to seek to improve its infrastructure and modernize its grid while maintaining liquidity.

Note 10 – Contractual Obligations, Commercial Commitments and Contingencies

Equity Ownership Interest

AES Ohio has a 4.9% equity ownership interest in OVEC which is recorded using the cost method of accounting under GAAP. At December 31, 2021, AES Ohio could be responsible for the repayment of 4.9%, or $55.5 million, of a $1,131.7 million debt obligation comprised of both fixed and variable rate securities with maturities between 2022 and 2040. OVEC could also seek additional contributions from us to avoid a default in the event that other OVEC members defaulted on their respective OVEC obligations.

Contractual Obligations and Commercial Commitments

We enter into various contractual obligations and other commercial commitments that may affect the liquidity of our operations. At December 31, 2021, these include:

	Payments due in:
$ in millions	Total		Less than 1 year		2 - 3 years		4 - 5 years		More than 5 years
Electricity purchase commitments	$	82.9	$	82.9	$	—	$	—	$	—
Purchase orders and other contractual obligations	$	149.4	$	138.7	$	10.7	$	—	$	—

Electricity purchase commitments:

AES Ohio enters into long-term contracts for the purchase of electricity. In general, these contracts are subject to variable quantities or prices and are terminable only in limited circumstances.

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Purchase orders and other contractual obligations:

At December 31, 2021, DPL had various other contractual obligations including contracts to purchase goods and services with various terms and expiration dates. Due to uncertainty regarding the timing and payment of future obligations to the Service Company, and DPL's ability to terminate such obligations upon 90 days' notice, we have excluded such amounts in the contractual obligations table above.

Contingencies

In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under laws and regulations. We believe the amounts provided in our 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, including the matters discussed below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in our Consolidated Financial Statements. As such, costs, if any, that may be incurred in excess of those amounts provided as of December 31, 2021, cannot be reasonably determined.

Environmental Matters

DPL’s facilities and operations are subject to a wide range of federal, state and local environmental laws, rules and regulations. The environmental issues that may affect us include the following; however, as a result of our exiting of our generation business, certain of these requirements are no longer expected to have a material impact on DPL and AES Ohio. See Item 1 - Business - Environmental Matters for a more comprehensive discussion of these and other environmental matters impacting us.

•The federal CAA and state laws and regulations (including SIPs) which require compliance, obtaining permits and reporting as to air emissions;

•Litigation with federal and certain state governments and certain special interest groups regarding whether modifications to or maintenance of certain coal-fired generating stations require additional permitting or pollution control technology, or whether emissions from coal-fired generating stations cause or contribute to global climate changes;

•Rules and future rules issued by the USEPA, the Ohio EPA or other authorities that require or will require substantial reductions in SO2, particulates, mercury, acid gases, NOx and other air emissions;

•Rules and future rules issued by the USEPA, the Ohio EPA or other authorities that require or will require reporting and reductions of GHGs;

•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. Most of the solid waste created from the combustion of coal and fossil fuels is fly ash and other coal combustion by-products.

In addition to imposing continuing compliance obligations, environmental laws, rules 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 laws, rules and 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 a number of 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 previously-owned and operated coal-fired generation units. We do not expect these matters to have a material adverse impact on our results of operations, financial condition or cash flows.

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Note 11 – Related Party Transactions

Service Company

The Service Company allocates the costs for services provided based on cost drivers designed to result in fair and equitable allocations. This includes ensuring that the regulated utilities served, including AES Ohio, are not subsidizing costs incurred for the benefit of other businesses.

Benefit Plans

DPL participates in an agreement with Health and Welfare Benefit Plans LLC, an affiliate of AES, to participate in a group benefits program, including but not limited to, health, dental, vision and life benefits. Health and Welfare Benefit Plans LLC administers the financial aspects of the group insurance program, receives all premium payments from the participating affiliates, and makes all vendor payments.

Long-term Compensation Plan

During 2021, 2020 and 2019, some of DPL’s non-union employees received benefits under the AES Long-term Compensation Plan, a deferred compensation program. This type of plan is a common employee retention tool used in our industry. Benefits under this plan are granted in the form of performance units payable in cash and AES restricted stock units. Restricted stock units vest ratably over a three-year period. The performance units payable in cash vest at the end of the three-year performance period and are subject to certain AES performance criteria. Total deferred compensation expense recorded during 2021, 2020 and 2019 was $0.0 million, $0.1 million and $0.0 million, respectively, and was included in “Operation and maintenance” on DPL’s Consolidated Statements of Operations. The value of these benefits is being recognized over the 36-month vesting period and a portion is recorded as miscellaneous deferred credits with the remainder recorded as “Other paid-in capital” on DPL’s Consolidated Balance Sheets in accordance with FASC 718 “Compensation - Stock Compensation.”

The following table provides a summary of our related party transactions:

	Years ended December 31,
$ in millions	2021		2020		2019
Transactions with the Service Company
Net charges for services provided	$	39.2	$	34.6	$	30.2
Transactions with other AES affiliates:
Payments for health, welfare and benefit plans	$	13.9	$	10.7	$	11.2
Consulting and other services	$	1.4	$	0.8	$	0.7
Balances with related parties:	At December 31, 2021		At December 31, 2020
Net payable to the Service Company	$	(24.7)	$	(14.8)
Net receivable from / (payable to) AES and other AES affiliates	$	0.7	$	(1.7)

DPL Capital Trust II

DPL has a wholly-owned business trust, DPL Capital Trust II (the Trust), formed for the purpose of issuing trust capital securities to third-party investors. Effective in 2003, DPL deconsolidated the Trust upon adoption of the accounting standards related to variable interest entities and currently treats the Trust as a nonconsolidated subsidiary. The Trust holds mandatorily redeemable trust capital securities. The investment in the Trust, which amounted to $0.2 million and $0.2 million at December 31, 2021 and 2020, respectively, is included in Other non-current assets. DPL also has a note payable to the Trust amounting to $15.6 million and $15.6 million at December 31, 2021 and 2020, respectively, that was established upon the Trust’s deconsolidation in 2003. See Note 6 – Long-term debt for additional information.

In addition to the obligations under the note payable mentioned above, DPL also agreed to a security obligation which represents a full and unconditional guarantee of payments to the capital security holders of the Trust.

Income Taxes

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.

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Note 12 – Business Segments

DPL manages its business through one reportable operating segment, the Utility 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 segments. The Utility segment is discussed further below:

Utility Segment

The Utility segment is comprised primarily of AES Ohio’s electric transmission and distribution businesses, which distribute electricity to residential, commercial, industrial and governmental customers. AES Ohio distributes electricity to more than 534,000 retail customers who are located in a 6,000-square mile area of West Central Ohio. AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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 AES Ohio’s Hutchings Coal Station, which was closed in 2013 and transferred to a third party in the fourth quarter of 2020.

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 and loss on early extinguishment of debt on DPL’s long-term debt as well as adjustments related to purchase accounting from the Merger. The accounting policies of the reportable segments are the same as those described in Note 1 – Overview and Summary of Significant Accounting Policies. 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 reportable business segment:

$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Year ended December 31, 2021
Revenues from external customers	$	663.0	$	9.7	$	—	$	672.7
Intersegment revenues	0.7		3.5		(4.2)		—
Total revenues	$	663.7	$	13.2	$	(4.2)	$	672.7
Depreciation and amortization	$	74.6	$	1.5	$	—	$	76.1
Interest expense	$	24.2	$	38.7	$	—	$	62.9
Income / (loss) from continuing operations before income tax	$	52.8	$	(30.4)	$	—	$	22.4
Cash capital expenditures	$	189.3	$	2.0	$	—	$	191.3

$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Year ended December 31, 2020
Revenues from external customers	$	651.2	$	9.3	$	—	$	660.5
Intersegment revenues	0.9		3.6		(4.5)		—
Total revenues	$	652.1	$	12.9	$	(4.5)	$	660.5
Depreciation and amortization	$	71.8	$	1.5	$	—	$	73.3
Interest expense	$	24.3	$	47.0	$	—	$	71.3
Loss on early extinguishment of debt	$	—	$	31.7	$	—	$	31.7
Income / (loss) from continuing operations before income tax	$	58.1	$	(70.0)	$	—	$	(11.9)
Cash capital expenditures	$	153.3	$	4.0	$	—	$	157.3

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$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Year ended December 31, 2019
Revenues from external customers	$	734.3	$	9.4	$	—	$	743.7
Intersegment revenues	1.1		3.2		(4.3)		—
Total revenues	$	735.4	$	12.6	$	(4.3)	$	743.7
Depreciation and amortization	$	70.8	$	1.5	$	—	$	72.3
Interest expense	$	26.0	$	56.2	$	—	$	82.2
Loss on early extinguishment of debt	$	—	$	44.9	$	—	$	44.9
Income / (loss) from continuing operations before income tax	$	124.3	$	(92.8)	$	—	$	31.5
Cash capital expenditures	$	155.5	$	1.0	$	—	$	156.5

Total Assets	December 31, 2021		December 31, 2020		December 31, 2019
Utility	$	2,162.6	$	2,014.7	$	1,883.2
All Other (a)	9.2		21.3		52.6
DPL Consolidated	$	2,171.8	$	2,036.0	$	1,935.8

(a)    "All Other" includes Total assets related to the assets of discontinued operations and held-for-sale businesses and Eliminations as of December 31, 2021, 2020 and 2019. "All Other" Total assets as of December 31, 2021 and 2020 are primarily cash on hand from debt issuances.

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 revenue

AES Ohio 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. AES Ohio 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, AES Ohio is subject to rate regulation by federal and state regulators. This regulation sets the framework for the prices (“tariffs”) that AES Ohio is allowed to charge customers for electricity. Since tariffs are approved by the regulator, the price that AES Ohio has the right to bill corresponds directly with the value to the customer of AES Ohio'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 AES Ohio only serves as a billing agent if requested by the CRES provider. As such, AES Ohio 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 revenue

AES Ohio's share of the power produced at OVEC is sold to PJM and these revenues are classified as Wholesale revenues.

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In PJM, the promise to sell 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 ancillary revenue

Compensation for use of AES Ohio’s transmission assets and compensation for various ancillary services are classified as RTO ancillary revenues. As AES Ohio 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. AES Ohio) and recognized as transmission revenues.

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 AES Ohio, 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.

Capacity revenue

AES Ohio records its share of OVEC capacity revenues as Capacity revenues. The capacity price is set through a competitive auction process established by PJM. Depending on the availability and performance of the OVEC units, there may be additional performance bonuses or penalties, which would be recognized only if it becomes probable that such bonus or penalties will be incurred.

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 $667.6 million, $645.0 million and $720.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table presents our revenue from contracts with customers and other revenue by segment for the years ended December 31, 2021, 2020 and 2019:

$ in millions	Utility		Other		Adjustments and Eliminations		Total
	Year ended December 31, 2021
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	364.9	$	—	$	—	$	364.9
Commercial revenue	122.6		—		—		122.6
Industrial revenue	57.5		—		—		57.5
Governmental revenue	26.1		—		—		26.1
Other (a)	12.2		—		—		12.2
Total retail revenue from contracts with customers	583.3		—		—		583.3
Wholesale revenue
Wholesale revenue from contracts with customers	19.5		—		(0.7)		18.8
RTO ancillary revenue	49.9		0.1		—		50.0
Capacity revenue	5.9		—		—		5.9
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (c)	—		9.6		—		9.6
Miscellaneous revenue	5.1		3.5		(3.5)		5.1
Total revenues	$	663.7	$	13.2	$	(4.2)	$	672.7

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$ in millions	Utility		Other		Adjustments and Eliminations		Total
	Year ended December 31, 2020
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	362.3	$	—	$	—	$	362.3
Commercial revenue	114.6		—		—		114.6
Industrial revenue	51.2		—		—		51.2
Governmental revenue	36.6		—		—		36.6
Other (a)	12.7		—		—		12.7
Total retail revenue from contracts with customers	577.4		—		—		577.4
Other retail revenue (b)	9.0		—		—		9.0
Wholesale revenue
Wholesale revenue from contracts with customers	11.0		—		(0.9)		10.1
RTO ancillary revenue	44.0		—		—		44.0
Capacity revenue	4.2		—		—		4.2
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (c)	—		9.3		—		9.3
Miscellaneous revenue	6.5		3.6		(3.6)		6.5
Total revenues	$	652.1	$	12.9	$	(4.5)	$	660.5

$ in millions	Utility		Other		Adjustments and Eliminations		Total
	Year ended December 31, 2019
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	403.5	$	—	$	—	$	403.5
Commercial revenue	130.3		—		—		130.3
Industrial revenue	55.3		—		—		55.3
Governmental revenue	42.4		—		—		42.4
Other (a)	13.8		—		—		13.8
Total retail revenue from contracts with customers	645.3		—		—		645.3
Other retail revenue (b)	22.0		—		—		22.0
Wholesale revenue
Wholesale revenue from contracts with customers	17.2		—		(1.0)		16.2
RTO ancillary revenue	43.5		—		—		43.5
Capacity revenue	6.2		—		—		6.2
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (c)	—		9.4		—		9.4
Miscellaneous revenue	1.2		3.2		(3.3)		1.1
Total revenues	$	735.4	$	12.6	$	(4.3)	$	743.7

(a)    "Other" primarily includes Wright-Patterson Air Force Base revenues, billing service fees from CRES providers and other miscellaneous retail revenues from contracts with customers.

(b)    Other retail revenue primarily includes alternative revenue programs not accounted for under FASC 606.

(c)    Miscellaneous revenue from contracts with customers primarily includes revenues for various services provided by Miami Valley Lighting.

The balances of receivables from contracts with customers were     $61.5 million and $70.1 million as of December 31, 2021 and 2020, 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.

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Note 14 – Discontinued Operations

Conesville - In May 2020, AEP, the operator of the formerly co-owned Conesville EGU, retired Conesville Unit 4 as planned. On June 5, 2020, DPL and AES Ohio Generation, together with AEP, completed the transfer of their interests in the retired Unit 4, including the associated environmental liabilities, to an unaffiliated third-party purchaser. As a result, DPL recognized a gain on the transfer of $4.5 million for the year ended December 31, 2020. For the transaction, DPL will make quarterly cash expenditures, totaling $4.0 million, through July 2022, of which $3.4 million has been paid through December 31, 2021. The transfer of Conesville Unit 4 was the last step in DPL's plan to exit its AES Ohio Generation business operations.

Stuart and Killen – On December 20, 2019, DPL and AES Ohio Generation, together with AES Ohio Generation's joint owners in the retired Stuart and Killen generating facilities, completed the transfer of the retired generating facilities, including the associated environmental liabilities, to an unaffiliated third-party purchaser. As a result, DPL made cash expenditures of $51.0 million and recognized a gain on the transfer of $20.0 million for the year ended December 31, 2019.

DPL determined that the transfer of Conesville and the previous transfers and sales of other AES Ohio Generation assets constitute the disposal of a group of components, which, as a whole, represent a strategic shift to exit its AES Ohio Generation business. As such, the disposal of this group of components qualifies to be presented as discontinued operations. Therefore, the results of operations of this group of components were reported as such in the Consolidated Statements of Operations for all periods presented.

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

	Years ended December 31,
$ in millions	2021		2020		2019
Revenues	$	1.4	$	24.2	$	70.9
Operating costs and other expenses	(2.4)		(24.8)		(19.8)
Fixed-asset impairment	—		—		(3.5)
Income / (loss) from discontinued operations	(1.0)		(0.6)		47.6
Gain from disposal of discontinued operations	—		6.1		20.1
Income tax expense / (benefit) from discontinued operations	(0.2)		0.1		14.1
Net income / (loss) from discontinued operations	$	(0.8)	$	5.4	$	53.6

Cash flows related to discontinued operations are included in our Consolidated Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $(0.8) million, $3.2 million and $21.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Cash flows from investing activities for discontinued operations were $(1.6) million, $4.9 million and $(51.0) million for the years ended December 31, 2021, 2020 and 2019, respectively.

Joint Owners' Agreement for Stuart and Killen

Pursuant to the Joint Owners' Agreements for Stuart and Killen entered into in December 2019, existing assets and liabilities between the joint owners were settled and resulted in a credit to DPL's operating costs and other expenses of $19.4 million for the year ended December 31, 2019 in the table above.

AROs of Discontinued Operations

Prior to the transfer of the retired Stuart and Killen generating facilities, the facilities carried ARO liabilities consisting primarily of river intake and discharge structures, coal unloading facilities, landfills and ash disposal facilities. In the first quarter of 2019, DPL reduced the ARO liability related to the Stuart and Killen ash ponds and landfills by $22.5 million based on an updated internal analysis that reduced estimated closure costs associated with these ash ponds and landfills. The remaining ARO liability related to Stuart and Killen was included in the 2019 transfer. As these plants were no longer in service, the reduction to the ARO liability was recorded as a credit to depreciation and amortization expense in the same amount. The credit to depreciation and amortization expense is included in operating costs and other expenses of discontinued operations for the years ended December 31, 2019 in the table above.

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Note 15 – Dispositions

Hutchings Coal Station – On December 3, 2020, AES Ohio transferred its interests in the retired Hutchings Coal Station to a third party, including its obligations to remediate the Station and its site, and the transfer occurred on that same date. As a result, DPL recognized a loss on the transfer of $4.7 million and made cash expenditures of $7.0 million, inclusive of cash expenditures for the transfer charges. DPL paid an additional $2.3 million on December 1, 2021 for the transfer. The Hutchings Coal Station was retired in 2013, and, as such, the income / (loss) from continuing operations before income tax related to the Hutchings Coal Station was immaterial for the years ended December 31, 2020 and 2019, excluding the loss on transfer noted above. Prior to the transfer, the Hutchings Coal Station was included in the Utility segment.

Note 16 – Risks & Uncertainties

COVID-19 Pandemic

The COVID-19 pandemic has impacted global economic activity, including electricity and energy consumption, and caused significant volatility in financial markets. Many countries, including the U.S., reacted to the pandemic by instituting quarantines and mandating business and school closures or limitations and other social distancing measures. Responses to the COVID-19 pandemic by the State of Ohio and its residents and businesses continue to evolve as virus variants emerge, vaccine availability and usage continues and the state and businesses review and adjust the scope and requirements of social distancing measures. Social distancing measures designed to slow the spread of the virus, such as business closures and operations limitations, impact energy demand within our service territory. We continue to take a variety of measures in response to the spread of COVID-19 to ensure our ability to generate, transmit, distribute and sell electric energy, ensure the health and safety of our employees, contractors, customers and communities and provide essential services to the communities in which we operate. In addition to the impacts to demand within our service territory, we also have incurred and expect to continue to incur expenses relating to COVID-19, including those that relate to events outside of our control. The magnitude and duration of the COVID-19 pandemic is unknown at this time and may have material and adverse effects on our results of operations, financial condition and cash flows in future periods.

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FINANCIAL STATEMENTS

AES Ohio

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Report of Independent Registered Public Accounting Firm

To the Shareholder and Board of Directors of The Dayton Power & Light Company

Opinion on the Financial Statements

We have audited the accompanying balance sheets of The Dayton Power & Light Company, d/b/a AES Ohio, (the Company) as of December 31, 2021 and 2020, the related statements of operations, comprehensive income, shareholder’s equity and cash flows for each of the three years in the period ended December 31, 2021, and the related notes and financial statement schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021 in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

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	Regulatory Accounting
Description of the Matter	As described in Note 2 to the financial statements, the Company applies the provisions of FASC 980 “Regulated Operations,” which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory liabilities generally represent obligations to provide refunds or future rate reductions to customers for previous overcollections or the deferral of revenues collected for costs that the Company expects to incur in the future. Accounting for the economics of rate regulation affects multiple financial statement line items, including property, plant, and equipment; regulatory assets and liabilities; revenues; and depreciation expense, and related disclosures in the Company’s financial statements.
	Auditing the Company’s regulatory accounting was complex due to significant judgments made by management to support its assertions about the impact of future regulatory orders on the financial statements. In particular, there is subjectivity involved in assessing the impact of current and future regulatory orders on events that have occurred through December 31, 2021, judgment required to evaluate the relevance and reliability of audit evidence to support impacted account balances and disclosures, and judgments involved in assessing the probability of recovery in future rates of incurred costs or refunds to customers. These assumptions have a significant effect on the financial statements and related disclosures.
How We Addressed the Matter in Our Audit	To test the Company’s accounting for regulatory assets and liabilities, our audit procedures included, among others, reviewing relevant regulatory orders, statutes and interpretations; filings made by intervening parties; and other publicly available information, to assess the likelihood of recovery of regulatory assets in future rates or of a refund or future reduction in rates for regulatory liabilities based on precedents for the treatment of similar costs under similar circumstances. We evaluated the Company’s assertions regarding the probability of recovery of regulatory assets or refund or future reduction in rates for regulatory liabilities, to assess the Company’s assertion that amounts are probable of recovery or of a refund or future reduction in rates.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2012.

Indianapolis, Indiana

February 28, 2022

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AES Ohio
Statements of Operations
	Years ended December 31,
$ in millions	2021		2020		2019
Revenues	$	663.7	$	652.1	$	735.4
Operating costs and expenses
Net fuel costs	0.5		1.6		2.5
Net purchased power cost	275.1		229.4		250.6
Operation and maintenance	152.1		182.0		183.1
Depreciation and amortization	74.6		71.8		70.8
Taxes other than income taxes	81.9		79.1		77.7
Loss on disposal of business (Note 13)	—		4.7		—
Total operating costs and expenses	584.2		568.6		584.7
Operating income	79.5		83.5		150.7
Other income / (expense), net
Interest expense	(24.2)		(24.3)		(26.0)
Other expense	(2.5)		(1.1)		(0.4)
Other expense, net	(26.7)		(25.4)		(26.4)
Income before income tax	52.8		58.1		124.3
Income tax expense / (benefit)	5.7		7.0		(0.6)
Net income	$	47.1	$	51.1	$	124.9

See Notes to Financial Statements.

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AES Ohio
Statements of Comprehensive Income
	Years ended December 31,
$ in millions	2021		2020		2019
Net income	$	47.1	$	51.1	$	124.9
Derivative activity:
Change in derivative fair value, net of income tax benefit / (expense) of $0.0, $(0.2) and $0.3 for each respective period	—		(0.2)		(0.8)
Reclassification to earnings, net of income tax expense of $0.0, $0.8 and $0.0 for each respective period	—		0.6		(0.2)
Net change in fair value of derivatives	—		0.4		(1.0)
Pension and postretirement activity:
Net gain / (loss) for the period, net of income tax benefit / (expense) of $(1.8), $2.6 and $0.6 for each respective period	6.4		(8.7)		(3.6)
Reclassification to earnings, net of income tax benefit of $(1.1), $(0.9) and $(0.5) for each respective period	3.9		3.1		3.0
Net change in unfunded pension and postretirement obligations	10.3		(5.6)		(0.6)
Other comprehensive income / (loss)	10.3		(5.2)		(1.6)
Net comprehensive income	$	57.4	$	45.9	$	123.3

See Notes to Financial Statements.

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AES Ohio
Balance Sheets
$ in millions	December 31, 2021		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	14.4	$	11.7
Accounts receivable, net of allowance for credit losses of $0.3 and $2.8, respectively (Note 1)	71.9		70.2
Inventories	14.4		8.8
Taxes applicable to subsequent years	83.0		77.6
Regulatory assets, current (Note 2)	24.5		27.5
Taxes receivable	28.1		32.5
Prepayments and other current assets	8.0		6.5
Total current assets	244.3		234.8
Property, plant and equipment:
Property, plant & equipment	2,571.3		2,437.3
Less: Accumulated depreciation and amortization	(1,062.6)		(1,032.1)
	1,508.7		1,405.2
Construction work in process	170.5		138.8
Total net property, plant & equipment	1,679.2		1,544.0
Other non-current assets:
Regulatory assets, non-current (Note 2)	176.8		193.6
Intangible assets, net of amortization	32.4		18.3
Other non-current assets	29.9		24.0
Total other non-current assets	239.1		235.9
Total assets	$	2,162.6	$	2,014.7
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Short-term and current portion of long-term debt (Note 6)	$	0.2	$	20.2
Accounts payable	111.5		85.5
Accrued taxes	85.1		82.7
Accrued interest	2.6		2.6
Customer deposits	14.9		19.1
Regulatory liabilities, current (Note 2)	14.6		18.0
Accrued and other current liabilities	13.0		25.0
Total current liabilities	241.9		253.1
Non-current liabilities:
Long-term debt (Note 6)	574.1		573.9
Deferred income taxes (Note 7)	183.4		172.1
Taxes payable	83.5		80.3
Regulatory liabilities, non-current (Note 2)	229.3		218.3
Accrued pension and other post-retirement benefits (Note 8)	62.3		93.9
Other non-current liabilities	5.9		6.4
Total non-current liabilities	1,138.5		1,144.9
Commitments and contingencies (Note 10)
Common shareholder's equity:
Common stock, par value of $0.01 per share	0.4		0.4
50,000,000 shares authorized, 41,172,173 shares issued and outstanding
Other paid-in capital	822.5		714.4
Accumulated other comprehensive loss	(31.8)		(42.1)
Accumulated deficit	(8.9)		(56.0)
Total common shareholder's equity	782.2		616.7
Total liabilities and shareholder's equity	$	2,162.6	$	2,014.7

See Notes to Financial Statements.

99

AES Ohio
Statements of Cash Flows
	Years ended December 31,
$ in millions	2021		2020		2019
Cash flows from operating activities:
Net income	$	47.1	$	51.1	$	124.9
Adjustments to reconcile Net income to Net cash from operating activities
Depreciation and amortization	74.6		71.8		70.8
Deferred income taxes	4.5		3.4		(9.7)
Loss on disposal of business	—		4.7		—
Changes in certain assets and liabilities:
Accounts receivable, net	(1.9)		0.7		19.6
Inventories	(5.5)		1.4		(2.8)
Taxes applicable to subsequent years	(5.4)		(0.2)		(5.0)
Deferred regulatory costs, net	10.3		(34.0)		(2.2)
Accounts payable	15.1		(4.0)		12.9
Accrued taxes payable / receivable	10.0		4.5		(7.2)
Accrued interest	—		1.3		0.9
Accrued pension and other post-retirement benefits	(12.2)		(11.8)		(8.8)
Other	(6.4)		2.1		6.5
Net cash provided by operating activities	130.2		91.0		199.9
Cash flows from investing activities:
Capital expenditures	(189.3)		(153.3)		(155.5)
Cost of removal payments	(17.1)		(25.5)		(11.6)
Payments on disposal and sale of business interests	—		(7.0)		—
Other investing activities, net	0.9		(0.7)		(3.5)
Net cash used in investing activities	(205.5)		(186.5)		(170.6)
Cash flows from financing activities
Returns of capital paid to parent	(52.0)		(42.7)		(95.0)
Equity contribution from parent	150.0		150.0		—
Retirement of long-term debt	—		(140.0)		(436.1)
Issuance of long-term debt	—		140.0		422.3
Payments of deferred financing costs	—		(1.2)		(5.2)
Borrowings from revolving credit facilities	120.0		95.0		60.0
Repayment of borrowings from revolving credit facilities	(140.0)		(115.0)		(20.0)
Other financing activities, net	—		(0.1)		(0.2)
Net cash provided by / (used in) financing activities	78.0		86.0		(74.2)
Cash, cash equivalents and restricted cash:					.
Net increase / (decrease) in cash, cash equivalents and restricted cash	2.7		(9.5)		(44.9)
Balance at beginning of year	11.8		21.3		66.2
Cash, cash equivalents and restricted cash at end of year	$	14.5	$	11.8	$	21.3
Supplemental cash flow information:
Interest paid, net of amounts capitalized	$	21.2	$	19.3	$	20.3
Income taxes paid, net	$	—	$	0.1	$	24.3
Non-cash financing and investing activities:
Accruals for capital expenditures	$	42.5	$	31.6	$	16.5

See Notes to Financial Statements.

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AES Ohio
Statements of Shareholder's Equity
	Common Stock (a)
$ in millions	Outstanding Shares	Amount		Other Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total
Year ended December 31, 2019
Beginning balance	41,172,173	$	0.4	$	711.8	$	(35.3)	$	(231.6)	$	445.3
Net comprehensive income						(1.6)		124.9		123.3
Returns of capital				(95.0)						(95.0)
Other				0.2				(0.4)		(0.2)
Ending balance	41,172,173	0.4		617.0		(36.9)		(107.1)		473.4
Year ended December 31, 2020
Net comprehensive income						(5.2)		51.1		45.9
Returns of capital				(52.7)						(52.7)
Equity contribution from parent				150.0						150.0
Other				0.1				—		0.1
Ending balance	41,172,173	0.4		714.4		(42.1)		(56.0)		616.7
Year ended December 31, 2021
Net comprehensive income						10.3		47.1		57.4
Returns of capital				(42.0)						(42.0)
Equity contribution from parent				150.0						150.0
Other				0.1				—		0.1
Ending balance	41,172,173	$	0.4	$	822.5	$	(31.8)	$	(8.9)	$	782.2

(a)$0.01 par value, 50,000,000 shares authorized.

See Notes to Financial Statements.

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AES Ohio

Notes to Financial Statements

For the years ended December 31, 2021, 2020 and 2019

Note 1 – Overview and Summary of Significant Accounting Policies

Description of Business

AES Ohio is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such service to its approximately 534,000 customers located in West Central Ohio. AES Ohio provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio. AES Ohio sources all of the generation for its SSO customers through a competitive bid process. AES Ohio owned interests in the retired Hutchings Coal Station until its transfer in 2020 and currently owns numerous transmission facilities. Principal industries located in AES Ohio’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. AES Ohio's sales reflect the general economic conditions, seasonal weather patterns of the area, the market price of electricity and customer energy efficiency initiatives. AES Ohio also sells its proportional share of energy and capacity from its investment in OVEC into the wholesale market. AES Ohio has only one reportable segment, the Utility segment. In addition to AES Ohio's electric transmission and distribution businesses, the Utility segment includes revenues and costs associated with AES Ohio's investment in OVEC and the historical results of AES Ohio’s retired Hutchings Coal Station, which was sold in 2020.

AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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 or overcollections of riders.

Financial Statement Presentation

AES Ohio does not have any subsidiaries.

We have evaluated subsequent events through the date this report is issued.

Certain amounts from prior periods have been reclassified to conform to the current period presentation.

Use of Management Estimates

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: the carrying value of Property, plant and equipment; unbilled revenues; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; reserves recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits.

Cash and Cash Equivalents

Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents.

Restricted Cash

Restricted cash includes cash which is restricted as to withdrawal or usage. The restrictions relate to cash required for certain balance requirements.

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The following table summarizes cash, cash equivalents and restricted cash amounts reported within the Balance Sheets that reconcile to the total of such amounts as shown on the Statements of Cash Flows:

	December 31,
$ in millions	2021		2020
Cash and cash equivalents	$	14.4	$	11.7
Restricted cash (included in Prepayments and other current assets)	0.1		0.1
Cash, Cash Equivalents and Restricted Cash, End of Period	$	14.5	$	11.8

Accounts receivable and allowance for credit losses

Accounts receivable are as follows at December 31, 2021 and 2020:

	December 31,
$ in millions	2021		2020
Accounts receivable, net
Customer receivables	$	41.6	$	47.6
Unbilled revenue	19.2		21.6
Amounts due from affiliates	4.4		1.9
Due from PJM transmission enhancement settlement (a)	1.7		1.7
Other	5.3		0.2
Allowance for credit losses	(0.3)		(2.8)
Total accounts receivable, net	$	71.9	$	70.2

(a)    See Note 2 – Regulatory Matters for more information.

The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the years ended December 31, 2021 and 2020:

$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2021	$	2.8	$	(0.4)	$	(3.5)	$	1.4	$	0.3
2020	$	0.4	$	3.0	$	(2.3)	$	1.7	$	2.8

The allowance for credit losses primarily relates to utility customer receivables, including unbilled amounts. Expected credit loss estimates are developed by disaggregating customers into those with similar credit risk characteristics and using historical credit loss experience. In addition, we also consider how current and future economic conditions would impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of December 31, 2021. Amounts are written off when reasonable collections efforts have been exhausted. On March 12, 2020, the PUCO issued an emergency order prohibiting electric utilities, including us, from discontinuing electric utility service to customers through September 1, 2020 due to the economic impacts of COVID-19. This order along with the economic impacts of COVID-19 has resulted in an increase in past due customer receivable balances in 2020, and thus the current period provision and the allowance for credit losses increased during the prior year. During 2021, the current period provision and allowance for credit losses decreased due to lower past due customer receivable balances. See Note 14 – Risks & Uncertainties for additional discussion of the COVID-19 pandemic. As discussed in Note 2 – Regulatory Matters, AES Ohio’s uncollectible expense is deferred for future collection.

Inventories

Inventories are carried at average cost, net of reserves, and include materials and supplies used for utility operations.

Regulatory Accounting

As a regulated utility, AES Ohio applies the provisions of FASC 980 “Regulated Operations”, which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory assets have been included as allowable costs for ratemaking purposes, as authorized by the PUCO or established regulatory practices. Regulatory liabilities generally represent obligations to make refunds or future rate reductions to customers for previous over collections or the deferral of revenues collected for costs that AES Ohio expects to incur in the future.

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The deferral of costs (as regulatory assets) is appropriate only when the future recovery of such costs is probable. In assessing probability, we consider such factors as specific orders from the PUCO or the FERC, regulatory precedent and the current regulatory environment. To the extent recovery of costs is no longer deemed probable, related regulatory assets would be required to be expensed in current period earnings. Our regulatory assets and liabilities have been created pursuant to a specific order of the PUCO or the FERC or established regulatory practices, such as other utilities under the jurisdiction of the PUCO or the FERC being granted recovery of similar costs. It is probable, but not certain, that these regulatory assets will be recoverable, subject to approval by the PUCO or the FERC. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 2 – Regulatory Matters for more information.

Property, Plant and Equipment

New property, plant and equipment additions are stated at cost. For regulated transmission and distribution property, cost includes direct labor and material, allocable overhead expenses and an allowance for funds used during construction (AFUDC). AFUDC represents the cost of borrowed funds and equity used to finance regulated construction projects. Capitalization of AFUDC and interest ceases at either project completion or at the date specified by regulators. AFUDC and capitalized interest was $3.7 million, $3.0 million and $3.2 million in the years ended December 31, 2021, 2020 and 2019, respectively.

For substantially all depreciable property, when a unit of property is retired, the original cost of that property less any salvage value is charged to Accumulated depreciation and amortization, consistent with composite depreciation practices.

Impairment of Long-lived Assets

GAAP requires that we test long-lived assets for impairment when indicators of impairment exist. If an asset is deemed to be impaired, we are required to write down the asset to its fair value with a charge to current earnings. The net book value of our property, plant, and equipment was $1,679.2 million and $1,544.0 million as of December 31, 2021 and 2020, respectively. We do not believe any of these assets are currently impaired. In making this assessment, we consider such factors as: the overall condition and distribution capacity of the assets; the expected ability to recover additional expenditures in the assets; and the anticipated demand and relative pricing of retail electricity in our service territory.

Depreciation

Depreciation expense is calculated using the straight-line method, which allocates the cost of property over its estimated useful life. For AES Ohio’s transmission and distribution assets, straight-line depreciation is applied monthly on an average composite basis using group rates that approximated 2.8% in 2021, 2.8% in 2020 and 2.9% in 2019. Depreciation expense was $71.6 million, $68.6 million and $66.5 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Intangibles

Intangibles include software and renewable energy credits. Renewable energy credits are carried on a weighted average cost basis and amortized as they are used or retired.

Software is amortized over seven years. Amortization expense was $3.0 million, $3.2 million and $4.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. The estimated amortization expense of this internal-use software over the next five years is $9.9 million ($2.8 million in 2022, $2.1 million in 2023, $1.9 million in 2024, $1.6 million in 2025 and $1.5 million in 2026).

Implementation Costs Related to Software as a Service

AES Ohio has recorded prepayments for implementation costs related to software as a service in support of utility customer services of $8.0 million and $4.1 million as of December 31, 2021 and 2020, respectively, and these are recorded within Other Non-current Assets on the accompanying Balance Sheets.

Debt Issuance Costs

Costs incurred in connection with the issuance of long-term debt are deferred and presented as a direct reduction from the face amount of that debt and amortized over the related financing period using the effective interest method. Debt issuance costs related to a line-of-credit or revolving credit facility are deferred and presented as an asset and amortized over the related financing period. Make-whole payments in connection with early debt retirements are classified as cash flows used in financing activities.

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Financial Instruments

Our Master Trust investments in debt and equity financial instruments of publicly traded entities are classified as equity investments. These equity securities are carried at fair value and unrealized gains and losses on these securities are recorded in Other income. As these financial instruments are held to be used for the benefit of employees or former employees participating in employee benefit plans and are not used for general operating purposes, they are classified as non-current in Other non-current assets on the Balance Sheets. See Note 4 – Fair Value for additional information.

Financial Derivatives

We have contracts involving the physical delivery of energy. Because these contracts qualify for the normal purchases and normal sales scope exception in ASC 815, we have elected to account for them as accrual contracts, which are not adjusted for changes in fair value.

We have, in the past, used interest rate hedges to manage the interest rate risk of our variable rate debt. We used cash flow hedge accounting when the hedge or a portion of the hedge was deemed to be highly effective, which resulted in changes in fair value being recorded within accumulated other comprehensive loss, a component of shareholder’s equity. We elected not to offset net derivative positions in the financial statements. Accordingly, we did not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 5 – Derivative Instruments and Hedging Activities for additional information.

Accumulated other comprehensive loss

The amounts reclassified out of Accumulated other comprehensive loss by component during the years ended December 31, 2021, 2020 and 2019 are as follows:

Details about Accumulated Other Comprehensive Loss Components	Affected line item in the Statements of Operations	Years ended December 31,
$ in millions		2021		2020		2019
Gains and losses on cash flow hedges (Note 5):
	Interest expense	—		(0.2)		(0.2)
	Income tax expense	—		0.8		—
	Net of income taxes	—		0.6		(0.2)
Amortization of defined benefit pension items (Note 8):
	Other expense	5.0		4.0		3.5
	Income tax benefit	(1.1)		(0.9)		(0.5)
	Net of income taxes	3.9		3.1		3.0
Total reclassifications for the period, net of income taxes		$	3.9	$	3.7	$	2.8

The changes in the components of Accumulated other comprehensive loss during the years ended December 31, 2021 and 2020 are as follows:

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$ in millions	Gains / (losses) on cash flow hedges		Change in unfunded pension obligation		Total
Balance at January 1, 2020	$	(0.4)	$	(36.5)	$	(36.9)
Other comprehensive loss before reclassifications	(0.2)		(8.7)		(8.9)
Amounts reclassified from accumulated other comprehensive loss to earnings	0.6		3.1		3.7
Net current period other comprehensive income / (loss)	0.4		(5.6)		(5.2)
Balance at December 31, 2020	—		(42.1)		(42.1)
Other comprehensive income before reclassifications	—		6.4		6.4
Amounts reclassified from accumulated other comprehensive loss to earnings	—		3.9		3.9
Net current period other comprehensive income	—		10.3		10.3
Balance at December 31, 2021	$	—	$	(31.8)	$	(31.8)

Insurance and Claims Costs

In addition to insurance obtained from third-party providers, MVIC, a wholly-owned captive subsidiary of DPL, provides insurance coverage solely to us and other DPL subsidiaries for workers’ compensation, general liability and property damage on an ongoing basis. AES Ohio is responsible for claims costs below certain coverage thresholds of MVIC and third-party insurers for the insurance coverage noted above. AES Ohio has estimated liabilities for medical, life, disability and other reserves for claims costs below certain coverage thresholds of third-party providers of approximately $3.4 million and $3.5 million at December 31, 2021 and 2020, respectively, within Accrued and other current liabilities and Other non-current liabilities on the balance sheets. The estimated liabilities for workers’ compensation, medical, life and disability costs at AES Ohio are actuarially determined using certain assumptions. There is uncertainty associated with these loss estimates, and actual results may differ from the estimates. Modification of these loss estimates based on experience and changed circumstances is reflected in the period in which the estimate is re-evaluated.

Revenue Recognition

Revenues are recognized 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. Energy sales to customers are based on the reading of their meters that occurs on a systematic basis throughout the month. We recognize the revenues on our Statements of Operations using an accrual method for retail and other energy sales that have not yet been billed, but where electricity has been consumed. This is termed “unbilled revenues” and is a widely recognized and accepted practice for utilities. At the end of each month, unbilled revenues are determined by the estimation of unbilled energy provided to customers since the date of the last meter reading, estimated line losses, the assignment of unbilled energy provided to customer classes and the average rate per customer class. For additional information, see Note 12 – Revenue.

Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities

AES Ohio collects certain excise taxes levied by state or local governments from its customers. AES Ohio’s excise taxes and certain other taxes are accounted for on a net basis and recorded as a reduction in revenues in the accompanying Statements of Operations. The amounts of such taxes were as follows:

	Years ended December 31,
$ in millions	2021		2020		2019
Excise taxes collected	$	48.7	$	48.1	$	50.1

Repairs and Maintenance

Costs associated with maintenance activities are recognized at the time the work is performed. These costs, which include labor, materials and supplies and outside services required to maintain equipment and facilities, are capitalized or expensed based on defined units of property.

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Pension and Postretirement Benefits

We recognize in our Balance Sheets an asset or liability reflecting the funded status of pension and other postretirement plans with current-year changes from actuarial gains or losses related to our regulated operations, that would otherwise be recognized in AOCL, recorded as a regulatory asset as this can be recovered through future rates. Such changes that are not related to our regulated operations are recognized in AOCL. All plan assets are recorded at fair value. We follow the measurement date provisions of the accounting guidance, which require a year-end measurement date of plan assets and obligations for all defined benefit plans.

We account for and disclose pension and postretirement benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postretirement plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost and funding requirements of the plans. Consistent with the requirements of FASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans.

See Note 8 – Benefit Plans for more information.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective income tax bases. We establish an allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Our tax positions are evaluated under a more likely than not recognition threshold and measurement analysis before they are recognized for financial statement reporting. Uncertain tax positions have been classified as noncurrent income tax liabilities unless expected to be paid within one year. Our policy for interest and penalties is to recognize interest and penalties as a component of the provision for income taxes in the Statement of Operations.

Income taxes payable, which are includable in allowable costs for ratemaking purposes in future years, are recorded as regulatory assets or liabilities with a corresponding deferred tax liability or asset. Investment tax credits that reduced federal income taxes in the years they arose have been deferred and are being amortized to income over the useful lives of the properties in accordance with regulatory treatment. See Note 2 – Regulatory Matters for additional information.

AES Ohio files U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 7 – Income Taxes for additional information.

Related Party Transactions

In the normal course of business, AES Ohio enters into transactions with other subsidiaries of DPL or AES. See Note 11 – Related Party Transactions for more information on Related Party Transactions.

New accounting pronouncements

The following table provides a brief description of recent 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.

Accounting Standard	Description	Date of Adoption	Effect on the financial statements upon adoption
New Accounting Standards Adopted
2016-13, 2018-19, 2019-04, 2019-05, 2019-10, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	See discussion of the ASUs below.	January 1, 2020.	The adoption of this standard had no material effect on our financial statements.

Adoption of FASC Topic 326, "Financial Instruments - Credit Losses"

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On January 1, 2020, we adopted ASC 326 Financial Instruments - Credit Losses and its subsequent corresponding updates ("ASC 326"). The new standard updates the impairment model for financial assets measured at amortized cost, known as the Current Expected Credit Loss ("CECL") model. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities are required to use a new forward-looking "expected loss" model that generally results in the earlier recognition of an allowance for credit losses. For available-for-sale debt securities with unrealized losses, entities measure credit losses as it was done under previous GAAP, except that unrealized losses due to credit-related factors are now recognized as an allowance on the balance sheet with a corresponding adjustment to earnings in the income statement.

We applied the modified retrospective method of adoption for ASC 326. Under this transition method, we applied the transition provisions starting at the date of adoption. The CECL model primarily impacts the calculation of our expected credit losses in gross customer trade accounts receivable. The adoption of ASC 326 and the application of CECL on our trade accounts receivable did not have a material impact on our Financial Statements.

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 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.

Accounting Standard	Description	Date of Adoption	Effect on the financial statements upon adoption
New Accounting Standards Issued but Not Yet Effective
2020-04 and 2021-01, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The amendments in these updates provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022).	Effective for all entities as of March 12, 2020 through December 31, 2022.	We are currently evaluating the impact of adopting the standard on our financial statements.

Note 2 – Regulatory Matters

AES Ohio ESP and SEET Proceedings, Comprehensive Settlement

Ohio law requires utilities to file either an ESP or MRO plan to establish SSO rates. From November 1, 2017 through December 18, 2019, AES Ohio operated pursuant to an approved ESP plan, which was initially approved on October 20, 2017 (ESP 3). On December 18, 2019, the PUCO approved AES Ohio's Notice of Withdrawal and reversion to its prior rate plan (ESP 1). Among other items, the PUCO Order approving the ESP 1 rate plan includes:

•Reinstating the non-bypassable RSC Rider, which provides annual revenues of approximately $79.0 million;

•Continuation of AES Ohio's Transmission Cost Recovery Rider, Storm Rider and the bypassable standard offer energy rate for AES Ohio's customers based on competitive bid auctions; and

•A placeholder rider to recover grid modernization costs, called the Infrastructure Investment Rider.

Separate from the ESP process, AES Ohio filed a petition seeking recovery of ongoing OVEC costs through a Legacy Generation Rider and was granted approval effective January 1, 2020.

On October 23, 2020, AES Ohio entered into a Stipulation and Recommendation (the Settlement) with the staff of the PUCO and various customers, and organizations representing customers of AES Ohio and certain other parties with respect to, among other matters, AES Ohio's applications pending at the PUCO for (i) approval of AES Ohio's plan to modernize its distribution grid (the Smart Grid Plan), (ii) findings that DP&L passed the SEET for 2018 and 2019, and (iii) findings that AES Ohio's current ESP 1 satisfies the SEET and the more favorable in the aggregate (MFA) regulatory test. A hearing was held in January 2021 for consideration of this settlement and on June 16, 2021, the PUCO issued their opinion and order accepting the stipulation as filed. Several applications for rehearing of the PUCO's orders relating to the Settlement were filed and denied on December 1, 2021. The OCC appealed this final PUCO Order to the Ohio Supreme Court on December 6, 2021; this appeal remains pending.

The settlement provides, among other items, for the following:

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•Approval of the Smart Grid Plan outlined in the Smart Grid Plan application filed by AES Ohio with the PUCO, as modified by the terms of the settlement, including, subject to offsetting operational benefits and certain other conditions, a return on and recovery of up to $249.0 million of Smart Grid Plan Phase 1 capital investments and recovery of operational and maintenance expenses through AES Ohio's existing Infrastructure Investment Rider for a term of four years, under an aggregate cap of $267.6 million on the amount of such investments and expenses that is recoverable, and an acknowledgement that AES Ohio may file a subsequent application with the PUCO within three years seeking approvals for Phase 2 of the Smart Grid Plan;

•A commitment by AES Ohio to invest in a customer information system and supporting technologies during Phase 1 of the Smart Grid Plan, with AES Ohio recovering a return on and of prudently incurred capital investments and operational and maintenance expenses, including deferred operational and maintenance expense amounts, in a future rate case;

•Determinations that AES Ohio’s ESP 1 satisfies the prospective SEET and the MFA regulatory test and that AES Ohio satisfies the retroactive SEET for 2018 and 2019.

•A commitment by AES Ohio to file an application with the PUCO no later than October 1, 2023 for a new electric security plan that does not seek to implement certain non-bypassable charges, including those related to provider of last resort risks, stability, or financial integrity; and

•AES Ohio shareholder funding, in an aggregate amount of approximately $30.0 million over four years, for certain economic development discounts, incentives, and grants to certain commercial and industrial customers, including hospitals and manufacturers, assistance for low-income customers as well as the residents and businesses of the City of Dayton, and promotion of solar and resiliency development within AES Ohio's service territory.

Certain parties which intervened in the ESP proceedings have filed petitions for rehearing of the recent PUCO ESP orders; some of which seek to eliminate AES Ohio's RSC from the ESP 1 rates that are currently in place and others seek to re-implement ESP 3, but without the DMR. We are unable to predict the outcomes of these petitions, but if these result in terms that are more adverse than AES Ohio's current ESP rate plan, it could have a material adverse effect on our results of operations, financial condition and cash flows.

Consistent with AES' earlier statement of intent, with the PUCO's issuance of their opinion and order, during 2021 DPL received $150.0 million from AES and, in turn, DPL made a capital contribution of $150.0 million to AES Ohio to enable AES Ohio to seek to improve its infrastructure and modernize its grid while maintaining liquidity.

Decoupling

On January 23, 2021 AES Ohio filed with the PUCO requesting approval to defer its decoupling costs consistent with the methodology approved in its Distribution Rate Case. An evidentiary hearing was held in May 2021. If approved, deferral would be effective December 18, 2019 and going forward would reduce impacts of weather, energy efficiency programs and economic changes in customer demand.

COVID-19

In response to the PUCO’s COVID-19 emergency orders, AES Ohio filed an Application on March 23, 2020, requesting waivers of certain rule and tariff requirements and deferral of certain costs and revenues including those related to deposits and reconnection fees, late payment fees, credit card fees; and waived or uncollected amounts associated with putting customers on payment plans. On May 20, 2020, the PUCO approved the application and required AES Ohio to file a plan outlining the timing and steps it plans to take in an effort to return to normal operations. The authorized deferral of those certain costs and revenues must be offset by COVID-19 related savings. AES Ohio filed its plan on July 15, 2020 and was approved by the PUCO on August 12, 2020. As a result, AES Ohio has recorded a $0.9 million and $1.2 million regulatory asset as of December 31, 2021 and 2020, respectively. Recovery of these deferrals will be addressed in a future rate proceeding.

Distribution Rate Case

On November 30, 2020, AES Ohio filed a new distribution rate case with the PUCO. This rate case proposes a revenue increase of $120.8 million per year and incorporates the DIR investments that were planned and approved in the last rate case but not yet included in distribution rates, other distribution investments since September 2015 and investments necessitated by the tornados that occurred on Memorial Day in 2019. The rate case also includes a proposal for increased tree-trimming expenses and certain customer demand-side management programs and recovery of prior-approved regulatory assets for tree trimming, uncollectible expenses and rate case expense. A hearing on this case was held in January 2022, and the case is pending a commission order.

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FERC Proceedings

On March 3, 2020, AES Ohio filed an application before the FERC seeking to change its existing stated transmission rates to formula transmission rates that would be updated each calendar year. This filing was approved and made effective as of May 3, 2020, subject to possible refunds if the approved rates were modified. An uncontested settlement was filed December 10, 2020 and approved April 15, 2021. Among other things, the settlement established new depreciation rates for AES Ohio’s transmission assets and an authorized return on equity of 9.85%, and started an amortization process to return excess deferred taxes created by the TCJA. Because the approved settlement rates were lower than the proposed rates that went into effect, AES Ohio has accrued and/or paid refunds of approximately $4.4 million to users of the transmission system through December 31, 2021 through credits on PJM bills. Pursuant to the approved mechanisms and formula, transmission rates were adjusted, effective on January 1, 2022, to reflect projected 2022 costs, adjusted to true-up the projections of revenues and costs incurred during 2020. Adjustments to true-up 2021 revenues and costs will be reflected in 2023 formula transmission rates. At December 31, 2021, AES Ohio has recorded a liability of $12.6 million, with $0.4 million classified as current, representing credits owed to customers for the 2020 and 2021 annual true-ups.

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 OATT. The FERC order approved the settlement which reduces AES Ohio’s transmission costs through PJM beginning in August 2018, including credits to reimburse AES Ohio for amounts overcharged in prior years. AES Ohio estimates the prior overcharge by PJM to be $40.6 million, of which approximately $33.8 million has been repaid to AES Ohio through December 31, 2021 and $1.7 million is classified as current in "Accounts receivable, net" and $5.1 million is classified as non-current in "Other non-current assets" on the accompanying Balance Sheet. All of the transmission charges and credits impacted by this FERC order are items that are included for full recovery in AES Ohio’s non-bypassable TCRR. Accordingly, AES Ohio has also established offsetting regulatory liabilities. While this development will have a temporary cash flow benefit to AES Ohio, there is no impact to operating income or net income as all credits will be passed to AES Ohio’s customers through the TCRR, which began in November 2018.

Regulatory Assets and Liabilities

In accordance with FASC 980, we have recognized total regulatory assets of $201.3 million and $221.1 million at December 31, 2021 and 2020, respectively, and total regulatory liabilities of $243.9 million and $236.3 million at December 31, 2021 and 2020, respectively. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 1 – Overview and Summary of Significant Accounting Policies for accounting policies regarding Regulatory Assets and Liabilities.

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The following table presents AES Ohio’s Regulatory assets and liabilities:

	Type of Recovery	Amortization Through	December 31,
$ in millions			2021		2020
Regulatory assets, current:
Undercollections to be collected through rate riders	A/B	2022	$	23.9	$	26.8
Rate case expenses being recovered in base rates	B	2022	0.6		0.7
Total regulatory assets, current			24.5		27.5
Regulatory assets, non-current:
Pension benefits	B	Ongoing	76.2		94.4
Unrecovered OVEC charges	C	Undetermined	28.9		28.9
Regulatory compliance costs	B	Undetermined	6.3		6.3
Smart grid and AMI costs	B	2026	5.2		8.5
Unamortized loss on reacquired debt	B	Various	4.3		7.1
Deferred storm costs	A	Undetermined	15.2		11.5
Deferred rate case costs	B	Undetermined	1.8		—
Deferred vegetation management and other	A/B	Undetermined	18.7		15.7
Decoupling deferral	C	Undetermined	13.8		13.8
Uncollectible deferral	C	Undetermined	6.4		7.4
Total regulatory assets, non-current			176.8		193.6
Total regulatory assets			$	201.3	$	221.1
Regulatory liabilities, current:
Overcollection of costs to be refunded through rate riders	A/B	2022	$	14.2	$	18.0
Transmission formula rate credits	A	2022	0.4		—
Total regulatory liabilities, current			14.6		18.0
Regulatory liabilities, non-current:
Estimated costs of removal - regulated property		Not Applicable	145.2		138.8
Deferred income taxes payable through rates		Various	57.5		61.2
TCJA regulatory liability	B	Ongoing	6.5		7.2
Transmission formula rate credits	A	2023	12.2		—
PJM transmission enhancement settlement	A	2025	5.1		7.0
Postretirement benefits	B	Ongoing	2.8		4.1
Total regulatory liabilities, non-current			229.3		218.3
Total regulatory liabilities			$	243.9	$	236.3

A – Recovery of incurred costs plus rate of return.

B – Recovery of incurred costs without a rate of return.

C – Recovery not yet determined, but recovery is probable of occurring in future rate proceedings.

Current regulatory assets and liabilities primarily represent costs that are being recovered per specific rate order; recovery for the remaining costs is probable, but not certain. These costs include: (i) the Energy Efficiency Rider, (ii) the Alternative Energy Rider, (iii) the Competitive Bidding Rider and (iv) the Transmission Cost Recovery Rider. Also included are the current portion of rate case expense costs, storm costs, Smart Grid O&M and Smart Grid R&D, which do not earn a return and are described in greater detail below. Current regulatory liabilities include the overcollection of economic development costs, legacy generation costs and certain transmission related costs, including the current portion of the PJM transmission enhancement settlement, the transmission rate true-up and the TCJA regulatory liability (see above).

AES Ohio is earning a return on $8.1 million of this net current deferral including: (i) the Energy Efficiency Rider, (ii) the Alternative Energy Rider, (iii) the Competitive Bidding Rider and (iv) the Transmission Cost Recovery Rider. These regulatory assets are partially offset by the overcollection of economic development costs and legacy generation costs.

Pension benefits represent the qualifying FASC 715 “Compensation - Retirement Benefits” costs of our regulated operations that for ratemaking purposes are deferred for future recovery. We recognize an asset for a plan’s

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overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory asset represents the regulated portion that would otherwise be charged as a loss to OCI. As per PUCO and FERC precedents, these costs are probable of future rate recovery.

Unrecovered OVEC charges includes the portion of charges from OVEC that were not recoverable through AES Ohio’s Fuel Rider from October 2014 through October 2017. Additionally, it includes net OVEC costs from December 19, 2019 through December 31, 2019. AES Ohio expects to recover these costs through a future rate proceeding. Beginning on November 1, 2017, through December 18, 2019, current OVEC costs were being recovered through AES Ohio’s reconciliation rider which was authorized as part of the ESP 3. Beginning January 1, 2020, AES Ohio began recovering its current net OVEC costs through its Legacy Generation Rider, established pursuant to ORC 4928.148.

Regulatory compliance costs represent the long-term portion of the regulatory compliance costs which include the following costs: (i) Consumer Education Campaign, (ii) Retail Settlement System, (iii) Generation Separation, (iv) Bill Format Redesign, (v) Green Pricing Tariff and (vi) Supplier Consolidated Billing. All of these costs except for Generation Separation earn a return. These costs were being recovered over a three-year period that began November 1, 2017 through a rider approved in the ESP 3. That rider was eliminated with the approval of the ESP 1 rate plan, so the balance as of December 18, 2019 remains a regulatory asset for future recovery.

Rate case expenses represents costs associated with preparing distribution rate cases. AES Ohio was granted recovery of these costs for the 2015 case which do not earn a return, as part of the DRO. Recovery of costs for the 2020 case were included in the pending filing.

Smart Grid and AMI costs represent costs incurred as a result of studying and developing distribution system upgrades and implementation of AMI. In a PUCO order on January 5, 2011, the PUCO indicated that it expects AES Ohio to continue to monitor other utilities’ Smart Grid and AMI programs and to explore the potential benefits of investing in the Smart Grid Plan and AMI programs and that AES Ohio will, when appropriate, file new Smart Grid and/or AMI business cases in the future. These costs are included in the October 23, 2020 settlement described above.

Unamortized loss on reacquired debt represents losses on long-term debt reacquired or redeemed in prior periods that have been deferred. These deferred losses are being amortized over the lives of the original issues in accordance with the rules of the FERC and the PUCO.

Deferred storm costs represent the long-term portion of deferred costs for major storms which occurred during 2019, 2020 and 2021. AES Ohio plans to file petitions seeking recovery of storm costs. Recovery of these costs is probable, but not certain.

Vegetation management costs represents costs incurred from outside contractors for tree trimming and other vegetation management services. Calculation terms were agreed to in the stipulation approved in the DRO. The terms were an annual baseline of $10.7 million in 2018 and $15.7 million thereafter. Amounts over the baseline will be deferred subject to an annual deferral maximum of $4.6 million. Annual spending less than the vegetation management baseline amount will result in a reduction to the regulatory asset or creation of a regulatory liability. These costs are included in AES Ohio's pending distribution rate case application.

Decoupling deferral represents the change in the revenue requirement based on a per customer methodology in the stipulation approved in the DRO and includes deferrals through December 18, 2019. These costs were previously recovered through a Decoupling Rider; however, AES Ohio withdrew its application in the ESP 3 and in doing so, the PUCO ordered on December 18, 2019 in the ESP 1 order, that AES Ohio no longer has a Decoupling Rider. As described above, AES Ohio filed a petition seeking authority to record a regulatory asset to accrue revenues that would have otherwise been collected through the Decoupling Rider.

Uncollectible deferral represents deferred uncollectible expense associated with the nonpayment of electric service, less the revenues associated with the bypassable uncollectible portion of the standard offer rate. The DRO established that these costs would be recovered in a rider outside of base rates, thus no uncollectible expense is included in base rates. These costs are included in our pending distribution rate case.

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Estimated costs of removal - regulated property reflect an estimate of amounts collected in customer rates for costs that are expected to be incurred in the future to remove existing transmission and distribution property from service when the property is retired.

Deferred income taxes payable through rates represent deferred income tax liabilities recognized from the normalization of flow-through items as the result of taxes previously charged to customers. A deferred income tax asset or liability is created from a difference in income recognition between tax laws and accounting methods. As a regulated utility, AES Ohio includes in ratemaking the impacts of current income taxes and changes in deferred income tax liabilities or assets. Accordingly, this liability reflects the estimated deferred taxes AES Ohio expects to return to customers in future periods.

TCJA regulatory liability represents the long-term portion of both protected and unprotected excess ADIT for both transmission and distribution portions, grossed up to reflect the revenue requirement. As a part of the DRO, AES Ohio agreed that savings from the TCJA attributable to distribution facilities, including the excess ADIT and the regulatory liability, constitute amounts that will be returned to customers. As a result of the TCJA and subsequent DRO, AES Ohio entered into a stipulation to resolve all remaining TCJA items related to its distribution rates, including a proposal to return no less than $4.0 million per year for the first five years unless fully returned in the first five years via a tax savings cost rider for the distribution portion of the balance. On September 26, 2019, an order approved the stipulation in its entirety.

Transmission Formula Rate Credits liability represents the amounts due to customers as a result of the implementation of transmission formula rates, which are adjusted each year based on actual revenue and costs from a previous year, as described above under FERC Proceedings.

PJM Transmission Enhancement Settlement liability represents the Transmission Enhancement Settlement charges for which AES Ohio is due a refund per FERC Order EL05-121-009 issued on May 31, 2018. The Order states that customers are due a refund for part of these charges which will be received starting August 2018 through 2025. Refunds received will be returned to customers via the transmission cost rider.

Postretirement benefits represent the qualifying FASC 715 “Compensation – Retirement Benefits” gains related to our regulated operations that, for ratemaking purposes, are probable of being reflected in future rates. We recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory liability represents the regulated portion that would otherwise be reflected as a gain to OCI.

Note 3 – 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

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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

Note 4 – Fair Value

The fair values of our financial instruments are based on published sources for pricing when possible. We rely on valuation models only when no other method is available to us. The fair value of our financial instruments represents estimates of possible value that may or may not be realized in the future.

The table below presents the fair value and cost of our non-derivative instruments at December 31, 2021 and 2020. See also Note 5 – Derivative Instruments and Hedging Activities for the fair values of our derivative instruments.

	December 31, 2021				December 31, 2020
$ in millions	Cost		Fair Value		Cost		Fair Value
Assets
Money market funds	$	0.4	$	0.4	$	0.3	$	0.3
Equity securities	1.9		5.1		2.1		4.5
Debt securities	3.8		3.9		4.0		4.1
Total assets	$	6.1	$	9.4	$	6.4	$	8.9
	Carrying Value		Fair Value		Carrying Value		Fair Value
Liabilities
Long-term debt	$	574.3	$	642.6	$	574.1	$	656.0

Fair Value Hierarchy

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. These inputs are then categorized as:

•Level 1 (quoted prices in active markets for identical assets or liabilities);

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•Level 2 (observable inputs such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active); or

•Level 3 (unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability).

Valuations of assets and liabilities reflect the value of the instrument including the values associated with counterparty risk. We include our own credit risk and our counterparty’s credit risk in our calculation of fair value using global average default rates based on an annual study conducted by a large rating agency.

We did not have any transfers of the fair values of our financial instruments among Level 1, Level 2 or Level 3 of the fair value hierarchy during the years ended December 31, 2021 and 2020.

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 debt is presented at the carrying value, net of unamortized premium or discount, in the financial statements. The debt amounts include the current portion payable in the next twelve months and have maturities that range from 2040 to 2061.

Master Trust Assets

AES Ohio 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. 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 non-current assets on the balance sheets and classified as equity securities. Gains and losses on these assets were not material during the years ended December 31, 2021, 2020 or 2019.

The fair value of assets and liabilities at December 31, 2021 and 2020 and the respective category within the fair value hierarchy for AES Ohio was determined as follows:

$ in millions	Fair Value at December 31, 2021 (a)								Fair Value at December 31, 2020 (a)
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Money market funds	$	0.4	$	—	$	—	$	0.4	$	0.3	$	—	$	—	$	0.3
Equity securities	—		5.1		—		5.1		—		4.5		—		4.5
Debt securities	—		3.9		—		3.9		—		4.1		—		4.1
Total assets	$	0.4	$	9.0	$	—	$	9.4	$	0.3	$	8.6	$	—	$	8.9
Liabilities
Long-term debt	$	—	$	625.4	$	17.2	$	642.6	$	—	$	638.6	$	17.4	$	656.0
Total liabilities	$	—	$	625.4	$	17.2	$	642.6	$	—	$	638.6	$	17.4	$	656.0

(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 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.

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.

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These fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs. Additional Level 3 disclosures are not presented since our long-term debt is not recorded at fair value.

Note 5 – Derivative Instruments and Hedging Activities

AES Ohio previously entered into various financial instruments, including derivative financial instruments. We used derivatives principally to manage the interest rate risk associated with our long-term debt. The derivative instruments were used for risk management purposes and were designated as cash flow hedges if they qualified under FASC 815 for accounting purposes.

In August 2020, the two interest rate swaps to hedge the variable interest on the $140.0 million variable interest rate tax-exempt First Mortgage Bonds expired, as the associated debt reached maturity. The interest rate swaps had a combined notional amount of $140.0 million and settled monthly based on a one-month LIBOR. The AOCL associated with the swaps was amortized out of AOCL into interest expense over the life of the underlying debt.

We used the income approach to value the swaps, which consists of forecasting future cash flows based on

contractual notional amounts and applicable and available market data as of the valuation date. The most common market data inputs used in the income approach include volatilities, spot and forward benchmark interest rates (LIBOR). Forward rates with the same tenor as the derivative instrument being valued are generally obtained from published sources, with these forward rates being assessed quarterly at a portfolio-level for reasonableness versus comparable published rates. We reclassified gains and losses on the swaps out of AOCL and into earnings in those periods in which hedged interest payments occurred.

The following tables provide information on gains or losses recognized in AOCL for the cash flow hedges for the periods indicated:

	Years ended December 31,
	2020		2019
$ in millions (net of tax)	Interest Rate Hedge		Interest Rate Hedge
Beginning accumulated derivative gain / (loss) in AOCL	$	(0.4)	$	0.6
Net losses associated with current period hedging transactions	(0.2)		(0.8)
Net losses / (gains) reclassified to earnings:
Interest expense	0.6		(0.2)
Ending accumulated derivative loss in AOCL	$	—	$	(0.4)

Note 6 – Long-term debt

Long-term debt is as follows:

$ in millions	Interest Rate	Maturity	December 31, 2021		December 31, 2020
First Mortgage Bonds	3.95%	2049	$	425.0	$	425.0
First Mortgage Bonds	3.2%	2040	140.0		140.0
U.S. Government note	4.2%	2061	17.2		17.4
Unamortized deferred financing costs			(5.4)		(5.7)
Unamortized debt discount			(2.5)		(2.6)
Total long-term debt			574.3		574.1
Less: current portion			(0.2)		(0.2)
Long-term debt, net of current portion			$	574.1	$	573.9

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At December 31, 2021, maturities of long-term debt are summarized as follows:

Due during the years ending December 31,
$ in millions
2022	$	0.2
2023	0.2
2024	0.2
2025	0.2
2026	0.2
Thereafter	581.2
	582.2
Unamortized discounts	(5.4)
Deferred financing costs, net	(2.5)
Total long-term debt	$	574.3

Revolving Credit Agreement

At December 31, 2021 and 2020 the AES Ohio Credit Agreement had outstanding borrowings of $0.0 million and $20.0 million, respectively.

Significant Transactions

On July 31, 2020, AES Ohio issued $140.0 million of First Mortgage Bonds and on August 3, 2020 used the proceeds to purchase at par value the $140.0 million of outstanding tax-exempt Ohio Air Quality Development Authority (OAQDA) Collateralized Pollution Control Revenue Refunding Bonds that had been issued in 2015. The new First Mortgage Bonds carry an interest rate of 3.20% and mature on July 31, 2040. The OAQDA Revenue bonds have not been legally cancelled and can be re-issued at the discretion of AES Ohio at any time. These bonds will be held in trust while we continue to evaluate market conditions and explore suitable long-term financing alternatives. Accordingly, as of December 31, 2021 and 2020, the $140.0 million variable rate OAQDA Revenue bonds are not treated as being outstanding in the Balance Sheets.

Debt Covenants and Restrictions

AES Ohio's unsecured revolving credit facility and Bond Purchase Agreement (financing document entered into in connection with the issuance of AES Ohio's First Mortgage Bonds, on July 31, 2020) has one financial covenant. The covenant 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. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. This financial covenant was in compliance as of December 31, 2021.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends to its parent, DPL. As of December 31, 2021, AES Ohio was in compliance with all debt covenants, including the financial covenants described above.

Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage.

Note 7 – Income Taxes

AES Ohio’s components of income tax expense were as follows:

	Years ended December 31,
$ in millions	2021		2020		2019
Components of tax expense / (benefit)
Federal - current	$	1.1	$	3.5	$	8.6
State and Local - current	0.1		0.1		0.6
Total current	1.2		3.6		9.2
Federal - deferred	4.1		2.4		(10.9)
State and local - deferred	0.4		1.0		1.1
Total deferred	4.5		3.4		(9.8)
Tax expense / (benefit)	$	5.7	$	7.0	$	(0.6)

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Effective and Statutory Rate Reconciliation

The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to the effective tax rate, as a percentage of total income before taxes for the years ended December 31, 2021, 2020 and 2019:

	Years ended December 31,
	2021		2020		2019
Statutory Federal tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of Federal tax benefit	1.1	%	1.5	%	1.3	%
AFUDC - Equity	1.3	%	2.6	%	(0.1)	%
Amortization of investment tax credits	(0.2)	%	(0.5)	%	(0.2)	%
Depreciation of flow-through differences	(11.7)	%	(10.6)	%	(22.6)	%
Change in tax reserves	(0.1)	%	(6.1)	%	—	%
Other - net	(0.6)	%	4.1	%	0.1	%
Effective tax rate	10.8	%	12.0	%	(0.5)	%

Deferred Income Taxes

Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and (b) operating loss carryforwards. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. Investment tax credits related to utility property have been deferred and are being amortized over the estimated useful lives of the related property.

The components of our deferred taxes are as follows:

	December 31,
$ in millions	2021		2020
Net non-current assets / (liabilities)
Depreciation / property basis	$	(167.7)	$	(161.7)
Income taxes recoverable	13.6		14.4
Regulatory assets	(21.4)		(21.7)
Investment tax credit	0.5		0.5
Compensation and employee benefits	(3.4)		(0.1)
Other	(5.0)		(3.5)
Net non-current liabilities	$	(183.4)	$	(172.1)

The following table presents the tax expense / (benefit) related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss.

	Years ended December 31,
$ in millions	2021		2020		2019
Tax expense / (benefit)	$	2.9	$	(2.3)	$	(0.4)

Uncertain Tax Positions

We apply the provisions of GAAP relating to the accounting for uncertainty in income taxes. The balance of unrecognized tax benefits was $0.4 million at December 31, 2021 and $1.4 million at December 31, 2020. Due to the closure of federal tax exams in 2021, the Company has reviewed its uncertain tax positions and determined that $1.0 million will not be sustained. Consequently, the $1.0 million of uncertain tax positions were reversed. The reversals did not affect the annual effective tax rate, but were reclassified to current tax payable. The total amount of remaining unrecognized tax benefits that would benefit the effective tax rate as of December 31, 2021 is $0.4 million.

The amount anticipated to result in a net decrease to unrecognized tax benefits within 12 months of December 31, 2021 is estimated to be $0.0 million.

The following table presents the changes to our uncertain tax positions:

$ in millions	2021		2020		2019
Unrecognized tax benefits at January 1	$	1.4	$	4.8	$	4.8
Gross increases - current period tax positions	—		—		—
Gross decreases - prior period tax positions	(1.0)		(3.4)		—
Unrecognized tax benefits at December 31	$	0.4	$	1.4	$	4.8

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Tax years subsequent to 2011 remain open to examination by taxing authorities. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe we have appropriately accrued for our uncertain tax positions. However, audit outcomes and the timing of audit settlements and future events that would impact our previously recorded unrecognized tax benefits are subject to significant uncertainty. It is possible that the ultimate outcome of future examinations may exceed our provision for current unrecognized tax benefits.

We recognize interest and penalties related to unrecognized tax benefits in Income tax expense. The amounts accrued and the tax expense / (benefit) recorded were not material for each period presented.

AES Ohio is no longer subject to U.S. federal income tax examinations for tax years through 2011, but is open for all subsequent periods. AES Ohio is no longer subject to state income tax examinations for tax years through 2017, but is open for all subsequent periods.

Note 8 – Benefit Plans

Defined Contribution Plans

AES Ohio sponsors two defined contribution plans. One is for non-union employees (the management plan) and one is for collective bargaining employees (the union plan). Both plans are qualified under Section 401 of the Internal Revenue Code.

Certain non-union and union employees become eligible to participate in their respective plan upon date of hire.

Participants may elect to contribute up to 85% of eligible compensation to their plan. Non-union participant contributions are matched 100% on the first 1% of eligible compensation and 50% on the next 5% of eligible compensation and they are fully vested in their employer contributions after 2 years of service. Union participant contributions are matched 150% but are capped at $2,650 for 2021 and they are fully vested in their employer contributions after 3 years of service. All participants are fully vested in their own contributions.

We contributed $3.3 million, $3.2 million and $3.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. AES Ohio matching contributions are paid bi-weekly, in arrears. The contributions by year may include the bi-weekly matching contribution that is paid in the following year in addition to employer matching true-up contributions. AES Ohio also contributes an annual bonus to the accounts of its union participants. This payment is typically made in January of the following year.

AES Ohio sponsors a traditional defined benefit pension plan for most of the employees of DPL and its subsidiaries. For collective bargaining employees, the defined benefits are based on a specific dollar amount per year of service. For all other employees (management employees), the traditional defined benefit pension plan is based primarily on compensation and years of service. As of December 31, 2010, this traditional pension plan formula was closed to new management employees. A participant is 100% vested in all amounts credited to his or her account upon the completion of five vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. Employees that transferred from AES Ohio to the Service Company maintain their previous eligibility to participate in the AES Ohio pension plan.

Almost all management employees beginning employment on or after January 1, 2011 participate in a cash balance pension plan formula. Similar to the traditional pension plan for management employees, the cash balance benefits are based on compensation and years of service. A participant shall become 100% vested in all amounts credited to his or her account upon the completion of three vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. Vested benefits in the cash balance plan are fully portable upon termination of employment.

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In addition, we have a Supplemental Executive Retirement Plan (SERP) for certain retired key executives. The SERP has an immaterial unfunded liability related to agreements for retirement benefits of certain terminated and retired key executives.

We recognize an asset for a plan’s overfunded status and a liability for a plan’s underfunded status and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. For the transmission and distribution areas of our electric business, these amounts are recorded as regulatory assets and liabilities which represent the regulated portion that would otherwise be charged or credited to AOCL. We have historically recorded these costs on the accrual basis, and this is how these costs have been historically recovered through customer rates. This factor, combined with the historical precedents from the PUCO and FERC, make these costs probable of future rate recovery.

Postretirement Benefits

Qualified employees who retired prior to 1987 and their dependents are eligible for health care and life insurance benefits until their death, while qualified employees who retired after 1987 are eligible for life insurance benefits and partially subsidized health care. The partially subsidized health care is at the election of the employee, who pays most of the cost, and is available only from their retirement until they are covered by Medicare. 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 $8.9 million and $9.0 million at December 31, 2021 and 2020, respectively, were not material to the financial statements in the periods covered by this report.

The following tables set forth the changes in our pension plans' obligations and assets recorded on the Balance Sheets at December 31, 2021 and 2020. The amounts presented in the following tables for pension obligations include the collective bargaining plan formula, traditional management plan formula and cash balance plan formula and the SERP in the aggregate and have not been adjusted for $1.7 million, $1.4 million and $1.4 million of costs billed to the Service Company for the years ended December 31, 2021, 2020 and 2019, respectively, or $1.9 million,

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$1.4 million and $1.5 million of costs billed to AES Ohio Generation for the years ended December 31, 2021, 2020 and 2019, respectively.

$ in millions	Years ended December 31,
Change in benefit obligation	2021		2020
Benefit obligation at January 1	$	449.5	$	421.5
Service cost	4.5		3.7
Interest cost	8.2		11.8
Plan amendments	2.3		—
Actuarial (gain) / loss	(12.7)		52.7
Benefits paid	(35.6)		(40.2)
Benefit obligation at December 31	416.2		449.5
Change in plan assets
Fair value of plan assets at January 1	365.1		352.0
Actual return on plan assets	24.0		45.6
Employer contributions	10.0		7.7
Benefits paid	(35.6)		(40.2)
Fair value of plan assets at December 31	363.5		365.1
Unfunded status of plan	$	(52.7)	$	(84.4)
	December 31,
Amounts recognized in the Balance sheets	2021		2020
Current liabilities	$	(0.2)	$	(0.2)
Non-current liabilities	(52.5)		(84.2)
Net liability at end of year	$	(52.7)	$	(84.4)
Amounts recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax
Components:
Prior service cost	$	8.5	$	7.3
Net actuarial loss	119.5		152.6
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	128.0	$	159.9
Recorded in:
Regulatory asset	$	74.0	$	92.7
Accumulated Other Comprehensive Loss	54.0		67.2
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	128.0	$	159.9

The accumulated benefit obligation for our defined benefit pension plans was $400.7 million and $436.4 million at December 31, 2021 and 2020, respectively.

The net periodic benefit cost of the pension plans was:

	Years ended December 31,
$ in millions	2021			2020			2019
Service cost	$	4.5		$	3.7		$	3.7
Interest cost	8.2			11.8			14.9
Expected return on assets	(15.0)			(18.6)			(20.1)
Amortization of unrecognized:
Actuarial loss	11.4			8.7			7.0
Prior service cost	1.1			1.3			1.8
Net periodic benefit cost	$	10.2		$	6.9		$	7.3
Rates relevant to each year's expense calculations
Discount rate	2.44		%	3.33		%	4.35		%
Expected return on plan assets	4.55		%	5.60		%	6.25		%

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The following table presents other changes in plan assets and benefit obligations recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities.

	Years ended December 31,
$ in millions	2021		2020		2019
Net actuarial loss / (gain)	$	(21.7)	$	25.8	$	5.3
Prior service cost	2.3		—		—
Reversal of amortization item:
Net actuarial loss	(11.4)		(8.7)		(7.0)
Prior service cost	(1.1)		(1.3)		(1.8)
Total recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities	$	(31.9)	$	15.8	$	(3.5)
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities	$	(21.7)	$	22.7	$	3.8

Significant Gains and Losses Related to Changes in the Benefit Obligation

The actuarial gain of $12.7 million decreased the benefit obligation for the year ended December 31, 2021 and an actuarial loss of $52.7 million increased the benefit obligation for the year ended December 31, 2020. The actuarial gain in 2021 was primarily due to an increase in the discount rate and the actuarial loss in 2020 was primarily due to a decrease in the discount rate.

Assumptions

Our expected return on plan asset assumptions, used to determine benefit obligations, are based on historical long-term rates of return on investments, which use the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors, such as inflation and interest rates, as well as asset diversification and portfolio rebalancing, are evaluated when long-term capital market assumptions are determined. Peer data and historical returns are reviewed to verify reasonableness and appropriateness.

At December 31, 2021, we are increasing our long-term rate of return assumption to 4.60% for pension plan assets. The rate of return represents our long-term assumptions based on our long-term portfolio mix. Also, at December 31, 2021, we have increased our assumed discount rate to 2.83% from 2.44% for pension expense to reflect current duration-based yield curve discount rates. A one percent increase in the rate of return assumption for pension would result in a decrease in 2022 pension expense of approximately $3.4 million. A one percent decrease in the rate of return assumption for pension would result in an increase in 2022 pension expense of approximately $3.4 million. A 25-basis point increase in the discount rate for pension would result in a decrease of approximately $0.5 million to 2022 pension expense. A 25-basis point decrease in the discount rate for pension would result in an increase of approximately $0.5 million to 2022 pension expense.

In determining the discount rate to use for valuing liabilities, we used a market yield curve on high-quality fixed income investments as of December 31, 2021. We project the expected benefit payments under the plan based on participant data and based on certain assumptions concerning mortality, retirement rates, termination rates, etc. The expected benefit payments for each year are then discounted back to the measurement date using the appropriate spot rate for each half-year from the yield curve, thereby obtaining a present value of all expected future benefit payments using the yield curve. Finally, an equivalent single discount rate is determined which produces a present value equal to the present value determined using the full yield curve.

Consistent with the requirements of FASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans.

In future periods, differences in the actual return on pension plan assets and assumed return, or changes in the discount rate, will affect the timing of contributions, if any, to the plans.

The weighted average assumptions used to determine benefit obligations at December 31, 2021, 2020 and 2019 were:

Benefit Obligation Assumptions	Pension
	2021	2020	2019
Discount rate for obligations	2.83%	2.44%	3.33%
Rate of compensation increases	3.21%	3.21%	3.94%

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Pension Plan Assets

Plan assets are invested in multiple asset classes using a de-risking framework designed to manage the Plan's funded status volatility and minimize future cash contributions. Investment strategies and asset allocations are intended to allocate additional assets to the fixed income asset class should the Plan's funded status improve and is therefore broadly described as the Dynamic De-risking Strategy. Investment performance and asset allocation are measured and monitored on an ongoing basis.

Plan assets are managed in a balanced portfolio comprised of two major components: return seeking assets and liability hedging assets. The expected role of plan return seeking assets is to provide additional return with associated higher levels of risk, while the role of liability hedging assets is to correlate the interest rate of the fixed income investments with that of the Plan's liabilities.

Strategic asset allocation guidelines are determined by a Risk/Advisory Committee and approved by a Fiduciary Committee. These allocations consider the plan’s long-term objectives. The long-term target allocations for plan assets are 40% – 50% for return seeking assets and 50% – 60% for liability hedging assets. Return seeking assets include U.S. and international equity, while liability hedging assets include long-duration and high-yield bond funds and emerging market debt funds.

The investment approach is to move the Plan to a more de-risked position, if and when the overall funded status of the Plan improves, by periodically rebalancing the allocation of the Plan's investments in growth assets and liability hedging assets in accordance with the committee's glide path. This strategy requires the daily monitoring of the Plan's ratio of assets to liabilities in order to determine whether approved trigger points have been met, requiring the rebalancing of the assets.

All plan assets at December 31, 2021 are common collective trusts. With the exception of the cash and cash equivalents, the collective trusts are valued using the net asset value method and are categorized as Level 2 in the fair value hierarchy. The underlying investments are mutual funds, common stock. or debt securities, in alignment with the target asset allocation.

The following table summarizes our target pension plan allocation for 2021:

	Long-Term Mid-Point Target Allocation	Percentage of plan assets as of December 31,
Asset category		2021	2020
Equity Securities	41%	42%	42%
Debt Securities	59%	57%	57%
Cash and Cash Equivalents	—%	1%	1%

The fair values of our pension plan assets at December 31, 2021 by asset category are as follows:

$ in millions	Market Value at December 31, 2021		Quoted prices in active markets for identical assets		Significant observable inputs		Significant unobservable inputs
Asset category			(Level 1)		(Level 2)		(Level 3)
Mutual fund - equities (a)	$	151.8	$	—	$	151.8	$	—
Mutual fund - debt (b)	144.0		—		144.0		—
Government debt securities (c)	65.8		—		65.8		—
Cash and cash equivalents (d)	1.9		1.9		—		—
Total pension plan assets	$	363.5	$	1.9	$	361.6	$	—

(a)    This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method.

(b)    This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method.

(c)    This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method.

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(d)    This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost.

The fair values of our pension plan assets at December 31, 2020 by asset category are as follows:

$ in millions	Market Value at December 31, 2020		Quoted prices in active markets for identical assets		Significant observable inputs		Significant unobservable inputs
Asset category			(Level 1)		(Level 2)		(Level 3)
Mutual fund - equities (a)	$	153.8	$	—	$	153.8	$	—
Mutual fund - debt (b)	144.6		—		144.6		—
Government debt securities (c)	64.8		—		64.8		—
Cash and cash equivalents (d)	1.9		1.9		—		—
Total pension plan assets	$	365.1	$	1.9	$	363.2	$	—

(a)    This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method.

(b)    This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method.

(c)    This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method.

(d)    This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost.

Pension Funding

We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and, in addition, make voluntary contributions from time to time. We contributed $9.8 million to the pension plan in the year ended December 31, 2021, and $7.5 million in each of the years ended December 31, 2020 and 2019.

We expect to make contributions of $0.2 million to our SERP in 2022 to cover benefit payments. We also expect to make contributions of $7.5 million to our pension plan during 2022.

Funding for the qualified Defined Benefit Pension Plan is based upon actuarially determined contributions that consider the amount deductible for income tax purposes and the minimum contribution required under ERISA, as amended by the Pension Protection Act of 2006, as well as targeted funding levels necessary to meet certain thresholds.

From an ERISA funding perspective, AES Ohio’s funded target liability percentage was estimated to be 114%. In addition, AES Ohio must also contribute the normal service cost earned by active participants during the plan year. The funding of normal cost is expected to be approximately $5.8 million in 2022, which includes $1.7 million for plan expenses. Each year thereafter, if the plan’s underfunding increases to more than the present value of the remaining annual installments, the excess is separately amortized over seven years. AES Ohio’s funding policy for the pension plans is to contribute annually no less than the minimum required by applicable law, and no more than the maximum amount that can be deducted for federal income tax purposes.

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

Estimated future benefit payments
$ in millions due within the following years:	Pension
2022	$	24.5
2023	$	24.3
2024	$	24.1
2025	$	23.7
2026	$	23.6
2027 - 2031	$	114.4

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Note 9 – Shareholder's Equity

Common Stock

AES Ohio has 50,000,000 authorized common shares, of which 41,172,173 are outstanding at December 31, 2021. All common shares are held by AES Ohio’s parent, DPL.

Capital Contribution and Returns of Capital

During each of the years ended December 31, 2021 and 2020, DPL made capital contributions of $150.0 million to AES Ohio. The proceeds will enable AES Ohio to seek to improve its infrastructure and modernize its grid while maintaining liquidity.

In 2021, AES Ohio made return of capital payments to DPL of $52.0 million, of which $42.0 million was declared in 2021. In 2020, AES Ohio declared return of capital payments to DPL of $52.7 million, of which $42.7 million was paid in 2020. In 2019, AES Ohio made returns of capital payments to DPL of $95.0 million.

Note 10 – Contractual Obligations, Commercial Commitments and Contingencies

AES Ohio – Equity Ownership Interest

AES Ohio has a 4.9% equity ownership interest in OVEC which is recorded using the cost method of accounting under GAAP. At December 31, 2021, AES Ohio could be responsible for the repayment of 4.9%, or $55.5 million, of a $1,131.7 million debt obligation comprised of both fixed and variable rate securities with maturities between 2022 and 2040. OVEC could also seek additional contributions from us to avoid a default in the event that other OVEC members defaulted on their respective OVEC obligations.

Contractual Obligations and Commercial Commitments

We enter into various contractual obligations and other commercial commitments that may affect the liquidity of our operations. At December 31, 2021, these include:

	Payments due in:
$ in millions	Total		Less than 1 year		2 - 3 years		4 - 5 years		More than 5 years
Electricity purchase commitments	$	82.9	$	82.9	$	—	$	—	$	—
Purchase orders and other contractual obligations	$	146.8	$	136.1	$	10.7	$	—	$	—

Electricity purchase commitments:

AES Ohio enters into long-term contracts for the purchase of electricity. In general, these contracts are subject to variable quantities or prices and are terminable only in limited circumstances.

Purchase orders and other contractual obligations:

At December 31, 2021, AES Ohio had various other contractual obligations including contracts to purchase goods and services with various terms and expiration dates. Due to uncertainty regarding the timing and payment of future obligations to the Service Company, and AES Ohio's ability to terminate such obligations upon 90 days' notice, we have excluded such amounts in the contractual obligations table above.

Contingencies

In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under laws and regulations. We believe the amounts provided in our 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, including the matters discussed 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 as of December 31, 2021, cannot be reasonably determined.

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Environmental Matters

AES Ohio's facilities and operations are subject to a wide range of federal, state and local environmental laws, rules and regulations. The environmental issues that may affect us include the following; however, as a result of our exiting of our generation business, certain of these requirements are no longer expected to have a material impact on AES Ohio. See Item 1 - Business - Environmental Matters for a more comprehensive discussion of these and other environmental matters impacting us.

•The federal CAA and state laws and regulations (including SIPs) which require compliance, obtaining permits and reporting as to air emissions;

•Rules and future rules issued by the USEPA, the Ohio EPA or other authorities that require or will require reporting and reductions of GHGs;

•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, environmental laws, rules 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 laws, rules and 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 a number of 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 previously-owned and operated coal-fired generation units. We do not expect these matters to have a material adverse impact on our results of operations, financial condition or cash flows.

Note 11 – Related Party Transactions

Service Company

The Service Company allocates the costs for services provided based on cost drivers designed to result in fair and equitable allocations. This includes ensuring that the regulated utilities served, including AES Ohio, are not subsidizing costs incurred for the benefit of other businesses.

Benefit Plans

DPL participates in an agreement with Health and Welfare Benefit Plans LLC, an affiliate of AES, to participate in a group benefits program, including but not limited to, health, dental, vision and life benefits. Health and Welfare Benefit Plans LLC administers the financial aspects of the group insurance program, receives all premium payments from the participating affiliates, and makes all vendor payments.

Long-term Compensation Plan

During 2021, 2020 and 2019, many of AES Ohio’s non-union employees received benefits under the AES Long-term Compensation Plan, a deferred compensation program. This type of plan is a common employee retention tool used in our industry. Benefits under this plan are granted in the form of performance units payable in cash and AES restricted stock units. Restricted stock units vest ratably over a three-year period. The performance units payable in cash vest at the end of the three-year performance period and are subject to certain AES performance criteria. Total deferred compensation expense recorded during 2021, 2020 and 2019 was $0.0 million, $0.1 million and $(0.3) million, respectively, and was included in “Operation and maintenance” on AES Ohio’s Statements of Operations. The value of these benefits is being recognized over the 36-month vesting period and a portion is recorded as miscellaneous deferred credits with the remainder recorded as “Other paid-in capital” on AES Ohio’s Balance Sheets in accordance with FASC 718 “Compensation - Stock Compensation.”

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The following table provides a summary of our related party transactions:

	Years ended December 31,
$ in millions	2021		2020		2019
AES Ohio Operation & Maintenance Expenses:
Premiums charged for insurance services provided by MVIC (a)	$	3.3	$	3.4	$	3.1
Transactions with the Service Company:
Net charges for services provided	$	38.1	$	33.4	$	27.7
Transactions with other AES affiliates:
Charges for health, welfare and benefit plans	$	10.5	$	10.1	$	10.4
Charges to affiliates for non-power goods or services (b)	$	5.8	$	4.1	$	4.1
Consulting and other services	$	1.4	$	0.8	$	0.7
Balances with related parties:	At December 31, 2021		At December 31, 2020
Net payable to the Service Company	$	(24.7)	$	(14.8)
Net receivable from / (payable to) AES and other AES affiliates	$	0.5	$	(2.1)

(a)    MVIC, a wholly-owned captive insurance subsidiary of DPL, provides insurance coverage to AES Ohio and other DPL subsidiaries for workers’ compensation, general liability, property damages and directors’ and officers’ liability. These amounts represent insurance premiums charged by MVIC to AES Ohio.

(b)    In the normal course of business AES Ohio incurred and recorded expenses on behalf of DPL affiliates. Such expenses included but were not limited to employee-related expenses, accounting, information technology, payroll, legal and other administration expenses. AES Ohio subsequently charged these expenses to the affiliates at AES Ohio’s cost and credited the expense in which they were initially recorded.

Income Taxes

AES files federal and state income tax returns which consolidate DPL and its subsidiaries, including 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. Under this agreement, AES Ohio had a net receivable balance of $28.1 million and $32.5 million at December 31, 2021 and 2020, respectively, which is recorded in Taxes receivable on the accompanying Balance Sheets. During 2021, 2020 and 2019, AES Ohio made net payments of $0.0 million, $0.0 million and $22.5 million respectively, to DPL for its share of income taxes.

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 revenue

AES Ohio 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. AES Ohio 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, AES Ohio is subject to rate regulation by federal and state regulators. This regulation sets the framework for the prices (“tariffs”) that AES Ohio is allowed to charge customers for electricity. Since tariffs are approved by the regulator, the price that AES Ohio has the right to bill corresponds directly with the value to the customer of AES Ohio'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 AES Ohio only serves as a billing agent if requested by the CRES provider. As such, AES Ohio recognizes the consolidated billing arrangement with the

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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 revenue

AES Ohio's share of the power produced at OVEC is sold to PJM and these revenues are classified as Wholesale revenues.

In PJM, the promise to sell 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 ancillary revenue

Compensation for use of AES Ohio’s transmission assets and compensation for various ancillary services are classified as RTO ancillary revenues. As AES Ohio 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. AES Ohio) and recognized as transmission revenues.

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 AES Ohio, 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.

Capacity revenue

AES Ohio records its share of OVEC capacity revenues as Capacity revenues. The capacity price is set through a competitive auction process established by PJM. Depending on the availability and performance of the OVEC units, there may be additional performance bonuses or penalties, which would be recognized only if it becomes probable that such bonus or penalties will be incurred.

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.

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AES Ohio's revenue from contracts with customers was $658.6 million, $636.6 million and $712.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table presents our revenue from contracts with customers and other revenue for the years ended December 31, 2021, 2020 and 2019:

	Years ended December 31,
$ in millions	2021		2020		2019
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	364.9	$	362.3	$	403.5
Commercial revenue	122.6		114.6		130.3
Industrial revenue	57.5		51.2		55.3
Governmental revenue	26.1		36.6		42.4
Other (a)	12.2		12.7		13.8
Total retail revenue from contracts with customers	583.3		577.4		645.3
Other retail revenue (b)	—		9.0		22.0
Wholesale revenue
Wholesale revenue from contracts with customers	19.5		11.0		17.2
RTO ancillary revenue	49.9		44.0		43.5
Capacity revenue	5.9		4.2		6.2
Miscellaneous revenue
Miscellaneous revenue	5.1		6.5		1.2
Total revenues	$	663.7	$	652.1	$	735.4

(a)    "Other" primarily includes Wright-Patterson Air Force Base revenues, billing service fees from CRES providers and other miscellaneous retail revenues from contracts with customers.

(b)    Other retail revenue primarily includes alternative revenue programs not accounted for under FASC 606.

The balances of receivables from contracts with customers were     $60.8 million and $69.2 million as of December 31, 2021 and 2020, 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 AES Ohio.

Note 13 – Dispositions

Hutchings Coal Station – On December 3, 2020, AES Ohio agreed to transfer its interests in the retired Hutchings Coal Station to a third party, including its obligations to remediate the Station and its site, and the transfer occurred on that same date. As a result, AES Ohio recognized a loss on the transfer of $4.7 million and made cash expenditures of $7.0 million, inclusive of cash expenditures for the transfer charges. AES Ohio paid an additional $2.3 million on December 1, 2021 for the transfer. The Hutchings Coal Station was retired in 2013, and, as such, the income / (loss) from continuing operations before income tax related to the Hutchings Coal Station was immaterial for the years ended December 31, 2020 and 2019, excluding the loss on transfer noted above.

Note 14 – Risks & Uncertainties

COVID-19 Pandemic

The COVID-19 pandemic has impacted global economic activity, including electricity and energy consumption, and caused significant volatility in financial markets. Many countries, including the U.S., reacted to the pandemic by instituting quarantines and mandating business and school closures or limitations and other social distancing measures. Responses to the COVID-19 pandemic by the State of Ohio and its residents and businesses continue to evolve as virus variants emerge, vaccine availability and usage continues and the state and businesses review and adjust the scope and requirements of social distancing measures. Social distancing measures designed to slow the spread of the virus, such as business closures and operations limitations, impact energy demand within our service

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territory. We continue to take a variety of measures in response to the spread of COVID-19 to ensure our ability to generate, transmit, distribute and sell electric energy, ensure the health and safety of our employees, contractors, customers and communities and provide essential services to the communities in which we operate. In addition to the impacts to demand within our service territory, we also have incurred and expect to continue to incur expenses relating to COVID-19, including those that relate to events outside of our control. The magnitude and duration of the COVID-19 pandemic is unknown at this time and may have material and adverse effects on our results of operations, financial condition and cash flows in future periods.

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Item 9 – Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A – Controls and Procedures

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosures.

We carried out the evaluation required by Rules 13a-15(b) and 15d-15(b), under the supervision and with the participation of our management, including the CEO and CFO, of the effectiveness of our “disclosure controls and procedures” (as defined in the Exchange Act Rules 13a-15(e) and 15d-15(e)). Based upon this evaluation, our CEO and CFO concluded that as of December 31, 2021, our disclosure controls and procedures were effective.

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) under the Exchange Act. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and includes those policies and procedures that:

•pertain to the maintenance of records that in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

•provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

•provide reasonable assurance that unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements are prevented or detected timely.

Management, including our CEO and CFO, does not expect that our internal controls will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. In addition, any evaluation of the effectiveness of controls is subject to risks that those internal controls may become inadequate in future periods because of changes in business conditions, or that the degree of compliance with the policies or procedures deteriorates.

Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2021. In making this assessment, management used the criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in 2013. Based on this assessment, management believes that we maintained effective internal control over financial reporting as of December 31, 2021.

Changes in Internal Control Over Financial Reporting:

There were no changes that occurred during the quarter ended December 31, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B – Other Information

None.

Item 9C – Disclosure Regarding Foreign Jurisdictions That Prevent Inspections

Not applicable.

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PART III

Item 10 – Directors, Executive Officers and Corporate Governance

Not applicable pursuant to General Instruction I of the Form 10-K.

Item 11 – Executive Compensation

Not applicable pursuant to General Instruction I of the Form 10-K.

Item 12 – Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Not applicable pursuant to General Instruction I of the Form 10-K.

Item 13 – Certain Relationships and Related Transactions, and Director Independence

Not applicable pursuant to General Instruction I of the Form 10-K.

Item 14 – Principal Accountant Fees and Services

The Financial Audit Committee of AES pre-approves the audit and non-audit services provided by the independent auditors for itself and its subsidiaries, including DPL and its subsidiaries and AES Ohio. The AES Financial Audit Committee maintained its policy established in 2002 within which to judge if the independent auditor may be eligible to provide certain services outside of its main role as outside auditor. Services within the established framework include audit and related services and certain tax services. Services outside of the framework require AES Financial Audit Committee approval prior to the performance of the service. The Sarbanes-Oxley Act of 2002 addresses auditor independence and this framework is consistent with the provisions of the Act. No services performed by the independent auditor with respect to DPL and AES Ohio and its subsidiaries were approved after the fact by the AES Financial Audit Committee other than those that were considered to be de minimis and approved in accordance with Regulation 2-01(c)(7)(i)(C) to Regulation S-X of the Exchange Act.

In addition to the pre-approval policies of the AES Financial Audit Committee, the DPL and AES Ohio Boards of Directors will specifically approve the annual audit services and fees of the independent auditor and the taking of other related actions, such as entering into the terms of the engagement letter.

Audit fees are fees billed or expected to be billed by our principal accountant for professional services for the audit of the Financial Statements, included in DPL's and AES Ohio's annual report on Form 10-K and review of financial statements included in DPL's and AES Ohio's quarterly reports on Form 10-Q, services that are normally provided by our principal accountants in connection with statutory, regulatory or other filings or engagements or any other service performed to comply with generally accepted auditing standards and include comfort and consent letters in connection with SEC filings and financing transactions.

132

The following table presents the aggregate fees billed for professional services rendered to DPL and AES Ohio by Ernst & Young LLP during the years ended December 31, 2021 and 2020. Other than as set forth below, no professional services were rendered or fees billed by Ernst & Young LLP during the years ended December 31, 2021 and 2020.

	Fees billed
	Years ended December 31,
	2021		2020
Audit Fees	$	987,098	$	976,183
Audit-related Fees
Fees for the audit of AES Ohio's employee benefit plans	93,180		85,680
Assurance services for debt offering documents	48,000		125,000
Other	35,000		35,000
Total	$	1,163,278	$	1,221,863

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PART IV

Item 15 – Exhibits, Financial Statements and Financial Statement Schedules

The following documents are filed as part of this report:
1. Financial Statements
DPL – Report of Independent Registered Public Accounting Firms (PCAOB ID: 42)	53
DPL – Consolidated Statements of Operations for each of the three years in the period ended December 31, 2021	56
DPL – Consolidated Statements of Comprehensive Income / (Loss) for each of the three years in the period ended December 31, 2021	57
DPL – Consolidated Balance Sheets at December 31, 2021 and 2020	58
DPL – Consolidated Statements of Cash Flows for each of the three years in the period ended December 31, 2021	59
DPL – Consolidated Statements of Shareholder’s Deficit for each of the three years in the period ended December 31, 2021	60
DPL – Notes to Consolidated Financial Statements	61
AES Ohio– Report of Independent Registered Public Accounting Firm (PCAOB ID: 42)	94
AES Ohio – Statements of Operations for each of the three years in the period ended December 31, 2021	97
AES Ohio – Statements of Comprehensive Income for each of the three years in the period ended December 31, 2021	98
AES Ohio – Balance Sheets at December 31, 2021 and 2020	99
AES Ohio – Statements of Cash Flows for each of the three years in the period ended December 31, 2021	100
AES Ohio – Statements of Shareholder’s Equity for each of the three years in the period ended December 31, 2021	101
AES Ohio – Notes to Financial Statements	102
2. Financial Statement Schedules
Schedule II – Valuation and Qualifying Accounts for each of the three years in the period ended December 31, 2021	141
The information required to be submitted in Schedules I, III, IV and V is omitted as not applicable or not required under rules of Regulation S-X.

134

Exhibits

DPL and DP&L exhibits are incorporated by reference as described unless otherwise filed as set forth herein.

The exhibits filed as part of DPL’s and DP&L’s Annual Report on Form 10-K, respectively, are:

DPL	DP&L	Exhibit Number	Exhibit	Location
X		2(a)	Asset Purchase Agreement dated April 21, 2017, by and among Dynegy Zimmer, LLC, Dynegy Miami Fort, LLC, AES Ohio	Exhibit 2.1 to Report on Form 8-K filed April 24, 2017 (File No. 1-2385)
X		2(b)	Asset Purchase Agreement, dated as of December 15, 2017, by and among AES Ohio Generation, LLC, DPL Inc., Kimura Power, LLC and Rockland Power Partners III, LP	Exhibit 2(e) to Report on Form 10-K filed February 26, 2018 (File No. 1-9052)
X		3(a)	Amended Articles of Incorporation of DPL Inc., as amended through January 6, 2012	Exhibit 3(a) to Report on Form 10-K for the year ended December 31, 2011 (File No. 1-9052)
X		3(b)	Amended Regulations of DPL Inc., as amended through November 28, 2011	Exhibit 3.2 to Report on Form 8-K filed November 28, 2011 (File No. 1-9052)
	X	3(c)	Amended Articles of Incorporation of The Dayton Power and Light Company, as of January 4, 1991	Exhibit 3(c) to Report on Form 10-K filed on February 26, 2018 (File No. 1-9052)
	X	3(d)	Regulations of The Dayton Power and Light Company, as of April 9, 1981	Exhibit 3(a) to Report on Form 8-K filed on May 3, 2004 (File No. 1-2385)
X	X	4(a)	Composite Indenture dated as of October 1, 1935, between The Dayton Power and Light Company and Irving Trust Company, Trustee with all amendments through the Twenty-Ninth Supplemental Indenture	Exhibit 4.1 to Registration Statement No. 333-183556
X	X	4(b)	Forty-First Supplemental Indenture dated as of February 1, 1999, between The Dayton Power and Light Company and The Bank of New York, Trustee	Exhibit 4.4 to Registration Statement No. 333-183556
X	X	4(c)	Forty-Third Supplemental Indenture dated as of August 1, 2005, between The Dayton Power and Light Company and The Bank of New York, Trustee	Exhibit 4.4 to Report on Form 8-K filed August 24, 2005 (File No. 1-2385)
X		4(d)	Indenture dated as of August 31, 2001 between DPL Inc. and The Bank of New York, Trustee	Exhibit 4(a) to Registration Statement No. 333-74630
X		4(e)	First Supplemental Indenture dated as of August 31, 2001 between DPL Inc. and The Bank of New York, as Trustee	Exhibit 4(b) to Registration Statement No. 333-74630
X		4(f)	Amended and Restated Trust Agreement dated as of August 31, 2001 among DPL Inc., The Bank of New York, The Bank of New York (Delaware), the administrative trustees named therein and several Holders as defined therein	Exhibit 4(c) to Registration Statement No. 333-74630
X	X	4(g)	Loan Agreement dated August 1, 2015, between the Ohio Air Quality Development Authority and The Dayton Power and Light Company, relating to the 2015 Series B bonds	Exhibit 4.1 to Report on Form 8-K filed August 6, 2015 (File No. 1-2385)
X	X	4(h)	Loan Agreement dated August 1, 2015, between the Ohio Air Quality Development Authority and The Dayton Power and Light Company, relating to the 2015 Series B bonds	Exhibit 4.2 to Report on Form 8-K filed August 6, 2015 (File No. 1-2385)
X	X	4(i)	Forty-Eighth Supplemental Indenture dated as of August 1, 2015 between The Bank of New York Mellon, Trustee and The Dayton Power and Light Company	Exhibit 4.3 to Report on Form 8-K filed August 6, 2015 (File No. 1-2385)
X	X	4(j)	Forty-Ninth Supplemental Indenture dated as of August 1, 2015 between The Bank of New York Mellon, Trustee and The Dayton Power and Light Company	Exhibit 4.4 to Report on Form 8-K filed August 6, 2015 (File No. 1-2385)
X	X	4(k)	Fifty-First Supplemental Indenture between The Bank of New York Mellon, as Trustee, and The Dayton Power and Light Company	Exhibit 4.1 to Report on Form 8-K filed October 2, 2017 (File No. 1-2385)
X		4(l)	Indenture dated April 17, 2019 between DPL Inc. and U.S. Bank National Association, as Trustee	Exhibit 4.1 to Report on Form 8-K filed April 17, 2019 (File No. 1-9052)
X	X	4(m)	Fifty-Second Supplemental Indenture between The Bank of New York Mellon, as Trustee, and The Dayton Power and Light Company	Exhibit 4.1 to Report on Form 8-K filed June 6, 2019 (File No. 1-2385)
X		4(n)	Indenture, dated June 19, 2020, by and between DPL Inc. and U.S. Bank National Association.	Exhibit 4.1 to Report on Form 8-K filed June 19, 2020 (File No. 1-9052)
X	X	4(o)	53rd Supplemental Indenture, dated July 1, 2020, between The Dayton Power and Light Company and The Bank of New York Mellon.	Exhibit 4.1 to Report on Form 8-K filed August 5, 2020 (File No. 1-2385)
X	X	4(p)	Bond Purchase and Covenants Agreement dated as of July 31, 2020 among The Dayton Power and Light Company, The Prudential Insurance Company of America and the several Purchasers party thereto.	Filed herewith as Exhibit 4(p)

135

DPL	DP&L	Exhibit Number	Exhibit	Location
X		10(a)	Amended and Restated Credit Agreement, dated as of June 19, 2019, among DPL Inc., each lender from time to time party thereto, U.S. Bank National Association, as Administrative Agent, Collateral Agent, Swing Line Lender and an L/C Issuer, PNC Bank, National Association, as Syndication Agent and an L/C Issuer, and Fifth Third Bank, BMO Harris Bank, N.A., SunTrust Bank and The Huntington National Bank, as Documentation Agents.	Exhibit 10.1 to Report on Form 8-K filed June 21, 2019 (File No. 1-9052)
X		10(b)	Amended and Restated Pledge Agreement, dated as of June 19, 2019, between DPL Inc. and U.S. Bank National Association, as Collateral Agent.	Exhibit 10.2 to Report on Form 8-K filed June 21, 2019 (File No. 1-9052)
X	X	10(c)	Amended and Restated Credit Agreement, dated as of June 19, 2019, among The Dayton Power and Light Company, each lender from time to time party thereto, PNC Bank, National Association, as Administrative Agent, Swing Line Lender and an L/C Issuer, U.S. Bank National Association, as Syndication Agent and an L/C Issuer, and Fifth Third Bank, BMO Harris Bank, N.A., SunTrust Bank and The Huntington National Bank, as Documentation Agents.	Exhibit 10.3 to Report on Form 8-K filed June 21, 2019 (File No. 1-9052)
X		10(d)	Amendment to the Amended and Restated Credit Agreement, dated as of June 1, 2020, among DPL, U.S. Bank, National Association, as administrative agent, and each of the lenders party thereto.	Exhibit 10.1 to Report on Form 8-K filed June 5, 2020 (File No. 1-9052)
X	X	10(e)	Stipulation and Recommendation dated October 23, 2020.	Exhibit 10.1 to Report on Form 8-K filed October 23, 2020 (File No. 1-2385)
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	Furnished herewith as Exhibit 101.INS
X	X	101.SCH	XBRL Taxonomy Extension Schema	Furnished herewith as Exhibit 101.SCH
X	X	101.CAL	XBRL Taxonomy Extension Calculation Linkbase	Furnished herewith as Exhibit 101.CAL
X	X	101.DEF	XBRL Taxonomy Extension Definition Linkbase	Furnished herewith as Exhibit 101.DEF
X	X	101.LAB	XBRL Taxonomy Extension Label Linkbase	Furnished herewith as Exhibit 101.LAB
X	X	101.PRE	XBRL Taxonomy Extension Presentation Linkbase	Furnished 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.

Pursuant to paragraph (b)(4)(iii)(A) of Item 601 of Regulation S-K, we may not file as an exhibit to this Form 10-K certain instruments with respect to long-term debt if the total amount of securities authorized thereunder does not exceed 10% of the total assets of us and our subsidiaries on a consolidated basis, but we hereby agree to furnish to the SEC on request any such instruments.

136

Item 16 – Form 10-K Summary

None.

137

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, DPL Inc. and The Dayton Power and Light Company have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.

	DPL Inc.
February 28, 2022	/s/ Kristina Lund
	Kristina Lund
	President and Chief Executive Officer
	(principal executive officer)
	The Dayton Power and Light Company
February 28, 2022	/s/ Kristina Lund
	Kristina Lund
	President and Chief Executive Officer
	(principal executive officer)

138

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of DPL Inc. and in the capacities and on the dates indicated.

/s/ Kenneth J. Zagzebski	Director	February 28, 2022
Kenneth J. Zagzebski
/s/ Michelle A. Dreyer	Director	February 28, 2022
Michelle A. Dreyer
/s/ Julian Nebreda	Director	February 28, 2022
Julian Nebreda
/s/ Phillip North	Director	February 28, 2022
Phillip North
/s/ Kristina Lund	President, Chief Executive Officer, Director and Chairman	February 28, 2022
Kristina Lund	(principal executive officer)
/s/ Gustavo Garavaglia	Vice President and Chief Financial Officer	February 28, 2022
Gustavo Garavaglia	(principal financial officer)
/s/ Jon S. Byers	Controller	February 28, 2022
Jon S. Byers	(principal accounting officer)

139

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of The Dayton Power and Light Company and in the capacities and on the dates indicated.

/s/ Kenneth J. Zagzebski	Director	February 28, 2022
Kenneth J. Zagzebski
/s/ Paul Freedman	Director	February 28, 2022
Paul Freedman
/s/ Tish Mendoza	Director	February 28, 2022
Tish Mendoza
/s/ Mark Miller	Director	February 28, 2022
Mark Miller
/s/ Annmarie Reynolds	Director	February 28, 2022
Annmarie Reynolds
/s/ Thomas A. Raga	Director	February 28, 2022
Thomas A. Raga
/s/ Julian Nebreda	Director	February 28, 2022
Julian Nebreda
/s/ Phillip North	Director	February 28, 2022
Phillip North
/s/ Kristina Lund	President, Chief Executive Officer, Director and Chairman	February 28, 2022
Kristina Lund	(principal executive officer)
/s/ Gustavo Garavaglia	Vice President and Chief Financial Officer	February 28, 2022
Gustavo Garavaglia	(principal financial officer)
/s/ Jon S. Byers	Controller	February 28, 2022
Jon S. Byers	(principal accounting officer)

140

Schedule II - Valuation and Qualifying Accounts

DPL Inc.
VALUATION AND QUALIFYING ACCOUNTS
For each of the three years in the period ended December 31, 2021
$ in millions
Description	Balance at Beginning of Period		Additions		Deductions - Net Write-offs		Balance at End of Period
Year ended December 31, 2021
Deducted from accounts receivable -
Provision for uncollectible accounts	$	2.8	$	(0.4)	$	2.1	$	0.3
Deducted from deferred tax assets -
Valuation allowance for deferred tax assets	$	39.0	$	1.5	$	3.4	$	37.1
Year ended December 31, 2020
Deducted from accounts receivable -
Provision for uncollectible accounts	$	0.4	$	3.0	$	0.6	$	2.8
Deducted from deferred tax assets -
Valuation allowance for deferred tax assets	$	29.0	$	11.0	$	1.0	$	39.0
Year ended December 31, 2019
Deducted from accounts receivable -
Provision for uncollectible accounts	$	0.9	$	3.0	$	3.5	$	0.4
Deducted from deferred tax assets -
Valuation allowance for deferred tax assets	$	29.9	$	2.2	$	3.1	$	29.0

141

THE DAYTON POWER AND LIGHT COMPANY
VALUATION AND QUALIFYING ACCOUNTS
For each of the three years in the period ended December 31, 2021
$ in millions
Description	Balance at Beginning of Period		Additions		Deductions - Net Write-offs		Balance at End of Period
Year ended December 31, 2021
Deducted from accounts receivable -
Provision for uncollectible accounts	$	2.8	$	(0.4)	$	2.1	$	0.3
Year ended December 31, 2020
Deducted from accounts receivable -
Provision for uncollectible accounts	$	0.4	$	3.0	$	0.6	$	2.8
Year ended December 31, 2019
Deducted from accounts receivable -
Provision for uncollectible accounts	$	0.9	$	3.0	$	3.5	$	0.4

142

EX-4.P

ACTIVE 51023837v6 EXECUTION VERSION THE DAYTON POWER AND LIGHT COMPANY $140,000,000 3.20% First Mortgage Bonds due 2040 _____________ BOND PURCHASE AGREEMENT _____________ Dated as of July 31, 2020

-i- TABLE OF CONTENTS SECTION HEADING PAGE SECTION 1. AUTHORIZATION OF BONDS ..........................................................................1 Section 1.1. Authorization of Bonds ..........................................................................1 SECTION 2. SALE AND PURCHASE OF BONDS ...................................................................2 SECTION 3. CLOSING .......................................................................................................2 SECTION 4. CONDITIONS TO THE CLOSING .......................................................................2 Section 4.1. Representations and Warranties of the Company ..................................2 Section 4.2. Performance; No Default .......................................................................2 Section 4.3. Compliance Certificates .........................................................................3 Section 4.4. Opinions of Counsel ..............................................................................3 Section 4.5. Purchase Permitted by Applicable Law, Etc..........................................3 Section 4.6. Sale of Bonds .........................................................................................3 Section 4.7. Payment of Special Counsel Fees ..........................................................4 Section 4.8. Private Placement Number ....................................................................4 Section 4.9. Changes in Corporate Structure .............................................................4 Section 4.10. Funding Instructions ..............................................................................4 Section 4.11. Execution and Delivery of Fifty-Third Supplement; Filing and Recording of the Fifty-Third Supplement; Delivery of Items Required under Indenture ......................................................................................4 Section 4.12. Proceedings and Documents ..................................................................4 Section 4.13. Certified Copy of Indenture ...................................................................5 Section 4.14. Regulatory Approvals ............................................................................5 SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY ...........................5 Section 5.1. Organization; Power and Authority .......................................................5 Section 5.2. Authorization, Etc ..................................................................................5 Section 5.3. Disclosure ..............................................................................................5 Section 5.4 Subsidiaries ............................................................................................6 Section 5.5. Financial Statements; Material Liabilities .............................................6 Section 5.6. Compliance with Laws, Other Instruments, Etc ....................................6 Section 5.7. Governmental Authorizations, Etc.........................................................6 Section 5.8. Litigation; Observance of Statutes and Orders ......................................7 Section 5.9. Taxes ......................................................................................................7 Section 5.10. Title to Property; Leases ........................................................................7 Section 5.11. Licenses, Permits, Etc ............................................................................7 Section 5.12. Compliance with ERISA........................................................................8 Section 5.13. Private Offering by the Company ..........................................................8 Section 5.14. Use of Proceeds; Margin Regulations....................................................9 Section 5.15. Existing Indebtedness ............................................................................9

-ii- Section 5.16. Foreign Assets Control Regulations, Etc ...............................................9 Section 5.17. Status under Certain Statutes ...............................................................10 Section 5.18. Environmental Matters.........................................................................10 Section 5.19. Lien of Indenture..................................................................................11 Section 5.20. Filings under Indenture ........................................................................11 SECTION 6. REPRESENTATIONS OF THE PURCHASERS ...................................................12 Section 6.1. Purchase for Investment .......................................................................12 Section 6.2. Source of Funds ...................................................................................12 Section 6.3. Purchaser Status ...................................................................................14 SECTION 7. INFORMATION AS TO COMPANY .................................................................14 Section 7.1. Financial and Business Information .....................................................14 Section 7.2. Officer’s Certificate .............................................................................16 Section 7.3. Visitation ..............................................................................................17 Section 7.4. Electronic Delivery ..............................................................................17 SECTION 8. PAYMENT AND PREPAYMENT OF THE BONDS ..............................................18 Section 8.1. Maturity................................................................................................18 Section 8.2. Optional Prepayments with Make-Whole Amount..............................18 Section 8.3. Allocation of Partial Prepayments .......................................................18 Section 8.4. Maturity; Surrender, Etc ......................................................................19 Section 8.5. Purchase of Bonds................................................................................19 Section 8.6. Make-Whole Amount for the Bonds....................................................19 Section 8.7. Payments Due on Non-Business Days .................................................21 SECTION 9. AFFIRMATIVE COVENANTS .........................................................................21 Section 9.1. Compliance with Law ..........................................................................21 Section 9.2. Insurance ..............................................................................................21 Section 9.3. Maintenance of Properties ...................................................................21 Section 9.4. Payment of Taxes and Claims..............................................................22 Section 9.5. Corporate Existence, Etc ......................................................................22 Section 9.6. Books and Records ..............................................................................22 Section 9.7. Compliance with Material Agreements ...............................................22 Section 9.8. Recording of Fifty-Third Supplement .................................................22 SECTION 10. NEGATIVE COVENANTS .............................................................................22 Section 10.1. Transactions with Affiliates .................................................................22 Section 10.2. Line of Business ...................................................................................23 Section 10.3. Economic Sanctions, Etc. ....................................................................23 Section 10.4. Financial Covenant ..............................................................................23 SECTION 11. EVENTS OF DEFAULT ..................................................................................23

-iii- SECTION 12. REMEDIES ON DEFAULT, ETC. .....................................................................25 Section 12.1. Acceleration .........................................................................................25 Section 12.2. Exercise of Remedies Under Indenture ...............................................26 Section 12.3. Other Remedies ....................................................................................26 Section 12.4. Rescission ............................................................................................26 Section 12.5. No Waivers or Election of Remedies, Expenses, Etc ..........................26 SECTION 13. PAYMENTS ON BONDS.................................................................................27 Section 13.1. Home Office Payment..........................................................................27 SECTION 14. REGISTRATION; EXCHANGE; EXPENSES, ETC .............................................27 Section 14.1. Registration of Bonds ..........................................................................27 Section 14.2. Transaction Expenses...........................................................................27 Section 14.3. Certain Taxes .......................................................................................28 Section 14.4. Survival ................................................................................................28 SECTION 15. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT ....................................................................................................................28 SECTION 16. AMENDMENT AND WAIVER ........................................................................29 Section 16.1. Requirements .......................................................................................29 Section 16.2. Solicitation of Holders of Bonds..........................................................29 Section 16.3. Binding Effect, Etc...............................................................................30 Section 16.4. Bonds Held by Company, Etc ..............................................................30 SECTION 17. NOTICES ......................................................................................................30 SECTION 18. INDEMNIFICATION .......................................................................................31 SECTION 19. REPRODUCTION OF DOCUMENTS .................................................................31 SECTION 20. CONFIDENTIAL INFORMATION.....................................................................31 SECTION 21. MISCELLANEOUS .......................................................................................32 Section 21.1. Successors and Assigns........................................................................32 Section 21.2. Accounting Terms ................................................................................33 Section 21.3. Severability ..........................................................................................33 Section 21.4. Construction, Etc..................................................................................33 Section 21.5. Counterparts .........................................................................................34 Section 21.6. Governing Law ....................................................................................34 Section 21.7. Jurisdiction and Process; Waiver of Jury Trial ....................................34 Section 21.8. Transaction References ........................................................................34

-iv- Schedule A — Information Relating to Purchasers Schedule B — Defined Terms Schedule 4.11 — Collateral Filings Schedule 5.5 — Financial Statements Schedule 5.15(c) — Debt Instruments Exhibit A — Form of Fifty-Third Supplemental Indenture Exhibit 4.4(a) — Form of Opinion of Special Counsel for the Company

THE DAYTON POWER AND LIGHT COMPANY 1065 Woodman Drive Dayton, OH 45432 $140,000,000 3.20% First Mortgage Bonds due July 31, 2040 July 31, 2020 To each of the Purchasers Listed in Schedule A Hereto: Ladies and Gentlemen: THE DAYTON POWER AND LIGHT COMPANY, an Ohio corporation (the “Company”), agrees with each of the purchasers whose names appear at the end hereof (each, a “Purchaser” and, collectively, the “Purchasers”) as follows: SECTION 1. AUTHORIZATION OF BONDS. Section 1.1. Authorization of Bonds The Company has authorized and will create a series of its first mortgage bonds in an aggregate principal amount of $140,000,000 to be issued as 3.20% First Mortgage Bonds due July 31, 2040 (the “Bonds”). The Bonds will be issued under and secured by that certain First Mortgage Indenture dated as of October 1, 1935 (the “Original Indenture”), between the Company and The Bank of New York Mellon (as successor to Irving Trust Company), as Trustee (the “Trustee”), as supplemented by that certain Fifty-Third Supplemental Indenture dated as of July 1, 2020 (such Fifty-Third Supplemental Indenture being referred to herein as the “Fifty-Third Supplement”), which will be substantially in the form attached hereto as Exhibit A. The Original Indenture as so amended and supplemented, and as further supplemented and amended according to its terms, is herein called the “Indenture.” The Bonds shall be issuable in fully registered form only. The Bonds shall mature on July 31, 2040, shall bear interest at the rate of 3.20% per annum payable semiannually, on January 31st and July 31st of each year and at maturity, commencing on January 31, 2021, shall be subject to redemption as provided in the Indenture or this Agreement, and shall be in the form established pursuant to the Indenture. As permitted by the Indenture, the Bonds originally issued to you thereunder shall be dated, and bear interest from, the date of their original issue on the Closing Date. Certain capitalized and other terms used in this Agreement are defined in Schedule B and, for purposes of this Agreement, the rules of construction set forth in Section 21.4 shall govern. Terms used herein but not defined herein shall have the meanings set forth in the Indenture.

The Dayton Power and Light Company Bond Purchase Agreement 2 SECTION 2. SALE AND PURCHASE OF BONDS. Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser and each Purchaser will purchase from the Company, at the Closing provided for in Section 3, Bonds in the principal amount(s) specified opposite such Purchaser’s name in Schedule A at the purchase price of 100% of the principal amount thereof. The Purchasers’ obligations hereunder are several and not joint obligations, and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder. SECTION 3. CLOSING. The sale and purchase of the Bonds to be purchased by each Purchaser thereof shall occur at a closing on July 31, 2020 (the “Closing”), at the offices of Greenberg Traurig, LLP, 77 West Wacker Drive, Chicago, Illinois 60601 at 9:00 a.m. Central time. On the Closing Date, the Company will deliver to each Purchaser the Bonds to be purchased by such Purchaser in the form of a single Bond (or such greater number of Bonds in denominations of at least $100,000 as such Purchaser may request), dated the Closing Date and registered in such Purchaser’s name (or in the name of such Purchaser’s nominee), against delivery by such Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to an account specified pursuant to Section 4.10 hereof. If, on the Closing Date, the Company shall fail to tender such Bonds to any Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to such Purchaser’s reasonable satisfaction, such Purchaser shall, at such Purchaser’s election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure by the Company to tender such Bonds or any of the conditions specified in Section 4 not having been fulfilled to such Purchaser’s satisfaction. SECTION 4. CONDITIONS TO THE CLOSING. Each Purchaser’s obligation to purchase and pay for the Bonds to be sold to such Purchaser at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at the Closing, of the following conditions: Section 4.1. Representations and Warranties of the Company. The representations and warranties of the Company in this Agreement shall be correct when made and at the time of the Closing. Section 4.2. Performance; No Default. The Company shall have performed and complied with all agreements and conditions contained in each Financing Agreement required to be performed or complied with by the Company prior to or at the Closing. Before and after giving effect to the issue and sale of the Bonds (and the application of the proceeds thereof as contemplated by Section 5.14), no Default or Event of Default shall have occurred and be continuing.

The Dayton Power and Light Company Bond Purchase Agreement 3 Section 4.3. Compliance Certificates. The Company shall have performed and complied with all agreements and conditions contained in the Indenture which are required to be performed or complied with by the Company for the issuance of the Bonds. In addition, on the Closing Date the Company shall have delivered the following certificates: (a) Officer’s Certificates. The Company shall have delivered to such Purchaser (i) an Officer’s Certificate, dated the Closing Date, certifying that the conditions specified in Sections 4.1, 4.2, 4.9 and 4.13 of this Agreement with respect to the Closing have been fulfilled, (ii) copies of all certificates and opinions required to be delivered to the Trustee under the Indenture in connection with the issuance of the Bonds under the Indenture, in each case, dated the Closing Date, and (iii) copies of all certificates and opinions delivered to the Trustee under the Indenture with respect to the execution and delivery of the Fifty- Third Supplement; and (b) Secretary’s Certificate. The Company shall have delivered to such Purchaser a certificate of its Secretary or Assistant Secretary, dated the Closing Date, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of this Agreement and the Bonds. Section 4.4. Opinions of Counsel. Such Purchaser shall have received opinions in form and substance reasonably satisfactory to such Purchaser, dated the Closing Date (a) from Davis, Polk & Wardwell LLP, counsel for the Company, and Porter Wright Morris & Arthur LLP, Ohio counsel for the Company, and, covering the matters set forth in Exhibit 4.4(a) and covering such other matters incident to the transactions contemplated hereby as such Purchaser or its counsel may reasonably request and (b) from Greenberg Traurig, LLP, the Purchasers’ special counsel in connection with such transactions, covering such matters incident to such transactions as such Purchaser may reasonably request. The Company hereby directs its counsel to deliver such opinions and understands and agrees that each Purchaser will and hereby is authorized to rely on such opinions to the extent set forth therein. Section 4.5. Purchase Permitted by Applicable Law, Etc. On the Closing Date, such Purchaser’s purchase of the Bonds shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as Section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof. If requested by such Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted. Section 4.6. Sale of Bonds. Contemporaneously with the Closing, the Company shall sell to each Purchaser and each Purchaser shall purchase the Bonds to be purchased by it at the Closing as specified in Schedule A.

The Dayton Power and Light Company Bond Purchase Agreement 4 Section 4.7. Payment of Special Counsel Fees. Without limiting the provisions of Section 14.2, the Company shall have paid on or before the Closing the reasonable fees, charges and disbursements of the Purchasers’ special counsel referred to in Section 4.4(b) to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the Closing. Section 4.8. Private Placement Number. A Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for the Bonds. Section 4.9. Changes in Corporate Structure. The Company shall not have changed its jurisdiction of incorporation, or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5. Section 4.10. Funding Instructions. At least three (3) Business Days prior to the Closing Date, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company setting forth wire instructions for payment of the purchase price of the Bonds, including (a) the name and address of the transferee bank, (b) such transferee bank’s ABA number, (c) the account name and number into which the purchase price for the Bonds is to be deposited, and (d) the name and telephone number of the account representative responsible for verifying receipt of such funds. Section 4.11. Execution and Delivery of Fifty-Third Supplement; Filing and Recording of the Fifty-Third Supplement; Delivery of Items Required under Indenture. The Fifty-Third Supplement shall have been duly executed and delivered by the Company and the Trustee, and the Company shall deliver to the Purchasers each certificate and opinion of counsel required to be delivered to the Trustee pursuant to the Indenture (including the Fifty-Third Supplement), which certificate(s) and opinion(s) shall be addressed to each such Purchaser, and the Company understands and agrees that each such Purchaser will and hereby is authorized to rely on such certificate(s) and opinion(s) to the extent set forth therein. Upon Closing, the Fifty-Third Supplement (along with the previously filed Indenture) shall be in a form suitable for recordation in each jurisdiction required to establish and perfect the Lien of the Trustee upon the Mortgaged and Pledged Property created by the Indenture (including the Fifty-Third Supplement), which can be perfected by filing the Fifty-Third Supplement, and the Company shall record the Fifty-Third Supplement in each such jurisdiction pursuant to Section 9.9 and deliver to the Purchasers (and their special counsel) evidence of the recording of the Fifty-Third Supplement promptly after such recording. Section 4.12. Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be reasonably satisfactory to such Purchaser and its special counsel, and such Purchaser and its special counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such special counsel may reasonably request.

The Dayton Power and Light Company Bond Purchase Agreement 5 Section 4.13. Certified Copy of Indenture. Each Purchaser shall have received a copy of the Indenture (together with all amendments and supplements thereto), certified by the Company as of the Closing Date, exclusive of property exhibits, recording information and the like. Section 4.14. Regulatory Approvals. The issue and sale of the Bonds shall have been duly authorized by the Public Order of the Public Utilities Commission of Ohio, which Public Order shall be in full force and effect on the date of this Agreement and on the Closing Date. No other authorization, approval, consent, license, order, registration, qualification or decree of, any court or governmental authority or agency is necessary or required in connection with the due authorization, execution, delivery and performance of this Agreement. SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company represents and warrants to each Purchaser that: Section 5.1. Organization; Power and Authority. The Company is a corporation duly organized and validly existing under the State of Ohio and is in good standing under the laws of the State of Ohio, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The Company has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver each Financing Agreement (and, in the case of the Indenture, had the corporate power and authority to execute and deliver the Indenture at the time of execution and delivery thereof) and to perform the provisions hereof and thereof. Section 5.2. Authorization, Etc. Each Financing Agreement has been duly authorized by all necessary corporate action on the part of the Company, and each Financing Agreement constitutes, and upon execution and delivery thereof each Bond will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its respective terms, except as such enforceability may be limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). Section 5.3. Disclosure. This Agreement, the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company in connection with the transactions contemplated hereby and the financial statements listed in Schedule 5.5, in each case, delivered to the Purchasers prior to the date of this Agreement together with the Company’s Current Reports on Form 8-K filed with the SEC on June 25, 2020 and June 17, 2020 (collectively the “8-Ks”), the Company’s Quarterly Report on Form 10-Q for the quarterly period ending March 31, 2020 filed with the SEC on May 7, 2020 (the “2020 Q1 10-Q”), the Company’s Annual Report on Form 10- K for the year ending December 31, 2019 filed with the SEC on February 28, 2020 (the “2019 10- K”) (this Agreement, the 8-Ks, the 2020 Q1 10-Q, the 2019 10-K and such documents, certificates or other writings and such financial statements being referred to, collectively, as the “Disclosure

The Dayton Power and Light Company Bond Purchase Agreement 6 Documents”), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. Except as disclosed in the Disclosure Documents, since December 31, 2019, there has been no change in the financial condition, operations, business, properties or prospects of the Company except changes that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. There is no fact known to the Company that would reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Disclosure Documents. For the avoidance of doubt, the phrases “delivered” and “made available” and phrases of similar import when used herein mean, with respect to any statement in this Agreement to the effect that any information, document, certificates or other material or writing has been “delivered” or “made available” to a Purchaser, that such information, document or other material was actually delivered (whether by physical or electronic delivery) to a Purchaser. Section 5.4. Subsidiaries. The Company has no Subsidiaries. Section 5.5. Financial Statements; Material Liabilities. The Company has delivered or made available to each Purchaser copies of the financial statements of the Company listed in Schedule 5.5. All of said financial statements (including in each case the related schedules and notes) fairly present in all material respects the financial position of the Company as of the respective dates specified in such financial statements and the results of its operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments). As of December 31, 2019, the Company did not have any Material liabilities that are not disclosed in the most recent financial statements referred to in Schedule 5.5, and since December 31, 2019, the Company has not incurred any new Material liabilities other than (i) as disclosed in the Disclosure Documents, (ii) liabilities incurred in the ordinary course of business or (iii) liabilities or executory obligations under any contracts to which the Company is a party. Section 5.6. Compliance with Laws, Other Instruments, Etc. The execution, delivery and performance by the Company of each Financing Agreement will not (a) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien, other than the Lien created under the Indenture, in respect of any property of the Company, under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or bylaws, or any other Material agreement or instrument to which the Company is bound or by which the Company or any of its properties may be bound or affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any Material order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company, including, without limitation, the Public Order or (c) violate any Material provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company. Section 5.7. Governmental Authorizations, Etc. No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of any Financing Agreement, except for any filing that has already been made or any approval that has already been obtained, including

The Dayton Power and Light Company Bond Purchase Agreement 7 without limitation the Public Order, or for certain post-Closing filing requirements with the Public Utility Commission of Ohio as required by the Public Order. Such Public Order is in full force and effect. Section 5.8. Litigation; Observance of Statutes and Orders. (a) There are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any property of the Company in any court or before any arbitrator of any kind or before or by any Governmental Authority that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. (b) The Company is not (i) in default under any term of any agreement or instrument to which it is a party or by which it is bound, (ii) in violation of any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or (iii) in violation of any applicable law, ordinance, rule or regulation of any Governmental Authority (including the USA PATRIOT Act or any of the other laws and regulations that are referred to in Section 5.16), which default or violation would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Section 5.9. Taxes. The Company has filed all Material tax returns that are required to have been filed in any jurisdiction, and has paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon it or its properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (a) the amount of which is not individually or in the aggregate Material or (b) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Company has established adequate reserves in accordance with GAAP. The Company knows of no basis for any other tax or assessment that would reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on the books of the Company in respect of federal, state or other taxes for all fiscal periods are adequate. Section 5.10. Title to Property; Leases. The Company has good and sufficient title to its properties that individually or in the aggregate are Material, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens (other than the Lien created under the Indenture) prohibited by the Indenture. All leases that individually or in the aggregate are Material are valid and subsisting and are in full force and effect in all material respects. Section 5.11. Licenses, Permits, Etc. The Company owns or possesses all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that, individually or in the aggregate, are Material to its business as now being conducted, without known conflict with the rights of others, except for those conflicts that would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.

The Dayton Power and Light Company Bond Purchase Agreement 8 Section 5.12. Compliance with ERISA . (a) The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title IV of ERISA or the penalty or excise tax provisions of the Code relating to any Plan that would, individually or in the aggregate, reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title IV of ERISA or to section 430(k) of the Code or to any such penalty or excise tax provisions under the Code or federal law or section 4068 of ERISA or by the granting of a security interest in connection with the amendment of a Plan, other than such liabilities or Liens as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. (b) Except as would not reasonably be expected to result in a Material Adverse Effect, the present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans), determined as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities. The term “benefit liabilities” has the meaning specified in Section 4001 of ERISA and the terms “current value” and “present value” have the meanings specified in Section 3 of ERISA. (c) The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under Section 4201 or 4204 of ERISA in respect of Multiemployer Plans that would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. (d) The execution and delivery of this Agreement and the issuance and sale of the Bonds hereunder will not involve any transaction that is subject to the prohibitions of Section 406 of ERISA or in connection with which a tax could be imposed pursuant to Section 4975(c)(1)(A)-(D) of the Code. The representation by the Company to each Purchaser in the first sentence of this Section 5.12(d) is made in reliance upon and subject to the accuracy of each Purchaser’s representation in Section 6.2 as to the sources of the funds to be used to pay the purchase price of the Bonds to be purchased by such Purchaser. Section 5.13. Private Offering by the Company. Neither the Company nor anyone acting on the Company’s behalf has offered the Bonds or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than the Purchasers, each of which has been offered the Bonds at a private sale for investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Bonds to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.

The Dayton Power and Light Company Bond Purchase Agreement 9 Section 5.14. Use of Proceeds; Margin Regulations. The Company will use the proceeds of the sale of the Bonds to repay debt, including amounts outstanding under that variable interest rate tax-exempt First Mortgage Bonds due August 2020, and for general corporate purposes, and in compliance with all laws referenced in Section 5.16. No part of the proceeds from the sale of the Bonds hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not constitute more than 1% of the value of the assets of the Company, and the Company does not have any present intention that margin stock will constitute more than 1% of the value of such assets. As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U. Section 5.15. Existing Indebtedness. (a) Except as described therein, the Disclosure Documents set forth a complete and correct list of all outstanding Indebtedness of the Company as of March 31, 2020 (including a description of the obligors and obligees, principal amount outstanding and collateral therefor, if any, and guaranty thereof, if any), since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company. The Company is not in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of the Company the outstanding principal amount of which Indebtedness exceeds $500,000, and no event or condition exists with respect to any Indebtedness of the Company the outstanding principal amount of which Indebtedness exceeds $500,000, that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment. (b) Except as disclosed in the Disclosure Documents, the Company has not agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by the Indenture. (c) The Company is not a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company, any agreement relating thereto or any other agreement (including, but not limited to, its charter or other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company, except as specifically indicated in the Disclosure Documents or in Schedule 5.15(c) hereto. Section 5.16 Foreign Assets Control Regulations, Etc. (a) Neither the Company nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may in the future appear on a State Sanctions List or (iii) has been notified that it is a target of sanctions that have been imposed by the United Nations or the European Union. (b) Neither the Company nor any Controlled Entity (i) has violated, been found in violation of, or been charged or convicted under, any applicable U.S. Economic Sanctions Laws,

The Dayton Power and Light Company Bond Purchase Agreement 10 Anti-Money Laundering Laws or Anti-Corruption Laws or (ii) to the Company’s knowledge, is under investigation by any Governmental Authority for possible violation of any U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws. (c) No part of the proceeds from the sale of the Bonds hereunder: (i) constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Company or any Controlled Entity, directly or indirectly, (A) in connection with any investment in, or any transactions or dealings with, any Blocked Person, (B) for any purpose that would cause any Purchaser to be in violation of any U.S. Economic Sanctions Laws or (C) otherwise in violation of any U.S. Economic Sanctions Laws; (ii) will be used, directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Money Laundering Laws; or (iii) will be used, directly or indirectly, for the purpose of making any improper payments, including bribes, to any official of a Governmental Authority or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in each case which would be in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Corruption Laws. (d) The Company has established procedures and controls which it reasonably believes are adequate (and such procedures and controls otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws and Anti-Corruption Laws. Section 5.17. Status under Certain Statutes. The Company is not subject to regulation under the Investment Company Act of 1940, as amended. The Company is not a public utility holding company under the Public Utility Holding Company Act of 2005, as amended. The Company is a “transmitting utility” as such term is defined in Section 9-102(a)(80) of the Uniform Commercial Code adopted in the State of Ohio (Ohio Revised Code 1309.102(A)(81)). None of the Company or its Affiliates is subject to regulation under the Federal Power Act, as amended or under applicable state or other laws respecting the rates or the financial or organizational regulation of electric utilities, as a result of the creation or incurrence of its obligations under the Financing Agreements or entering into this Agreement or any other Financing Agreement or the consummation of any transaction contemplated hereby or thereby. Section 5.18. Environmental Matters. The Company: (a) has no knowledge of any claim or liability, has not received any notice of any claim, and no proceeding has been instituted against the Company asserting any claim or raising any liability against the Company or any of its real properties or other real property now or, to the Company’s knowledge, formerly owned, leased or operated by the Company, alleging any damage

The Dayton Power and Light Company Bond Purchase Agreement 11 to the environment or violation of any Environmental Laws, except such as would not reasonably be expected to result in a Material Adverse Effect; (b) has no knowledge of any facts which would give rise to any claim of or liability for violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by the Company, except, in each case, such as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect; (c) has not stored any Hazardous Materials on real properties now or formerly owned, leased or operated by it in a manner which is contrary to any Environmental Laws that would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect; (d) has not disposed of any Hazardous Materials in a manner which is contrary to any Environmental Law that would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect; and (e) is in compliance with applicable Environmental Laws, except where failure to comply would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. Section 5.19. Lien of Indenture. The Indenture (including the Fifty-Third Supplement) constitutes a direct and valid Lien upon all of the properties and assets of the Company specifically or generally described or referred to in the Indenture as being subject to the Lien thereof, subject only to Permitted Liens, and will create a similar Lien upon all properties and assets acquired by the Company after the date hereof which are required to be subjected to the Lien of the Indenture, when acquired by the Company, subject only to the exceptions referred to in the Indenture and Permitted Liens, and subject, further, as to the real property, to the recordation of a supplement to the Indenture describing such after-acquired property and, as to personal property, the filing of a financing statement if necessary with respect to the after-acquired collateral; the descriptions of all such properties and assets contained in the granting clauses of the Indenture are correct and adequate for the purposes of the Indenture; and the Original Indenture has been duly recorded, and, the Fifty-Third Supplement will be duly submitted for recording in accordance with Section 9.9, as a mortgage of real estate, and any required filings with respect to personal property and fixtures subject to the Lien of the Indenture have been duly made in each place in which such recording or filing is required to protect, preserve and perfect the Lien of the Indenture; and all taxes and recording and filing fees required to be paid with respect to the execution, recording or filing of the Indenture (including the Fifty-Third Supplement in accordance with Section 9.9), the filing of any financing statements related thereto and similar documents and the issuance of the Bonds have been paid. The Original Indenture has been recorded, and the Fifty-Third Supplement will be duly submitted for recording in accordance with Section 9.9, in the real estate recording office in each county listed on Schedule 4.11, which counties collectively include all counties where the Company owns property subject to the Lien of the Indenture. Section 5.20. Filings under Indenture. No action that has not already been taken, including any filing, registration, notice or approval, is necessary or advisable in Ohio, New York or any

The Dayton Power and Light Company Bond Purchase Agreement 12 other jurisdiction to establish or protect for the benefit of the Trustee and the Holders of the Bonds that the Bonds are secured by the Lien of the Indenture. SECTION 6. REPRESENTATIONS OF THE PURCHASERS. Section 6.1. Purchase for Investment. Each Purchaser severally represents that it is purchasing the Bonds for its own account or for one or more separate accounts maintained by such Purchaser or for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of the property of such Purchaser or such pension or trust fund shall at all times be within the control of such Purchaser or such pension or trust fund. Each Purchaser understands that the Bonds have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Bonds. Each Purchaser understands that the Bonds are being offered and sold in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of the representations, warranties, agreements, acknowledgements and understandings set forth herein in order to determine the applicability of such exemptions and the suitability of such Purchaser to acquire the Bonds. Section 6.2. Source of Funds. Each Purchaser severally represents that at least one of the following statements is an accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the Bonds to be purchased by such Purchaser hereunder: (a) the Source is an “insurance company general account” (as the term is defined in the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the NAIC (the “NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile; or (b) the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or (c) the Source is either (i) an “insurance company pooled separate account,” (within the meaning of PTE 90-1) or (ii) a “bank collective investment fund” (within the

The Dayton Power and Light Company Bond Purchase Agreement 13 meaning of PTE 91-38) and, except as disclosed by such Purchaser to the Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or (d) the Source constitutes assets of an “investment fund” (within the meaning of Part VI of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part VI of the QPAM Exemption); no employee benefit plan’s assets that are managed by the QPAM in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an “affiliate” (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, represent more than 20% of the total client assets managed by such QPAM; the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied; neither the QPAM nor a Person controlling or controlled by the QPAM maintains an ownership interest in the Company that would cause the QPAM and the Company to be “related” within the meaning of Part (VI)(h) of the QPAM Exemption and (i) the identity of such QPAM and (ii) the names of any employee benefit plans whose assets in the investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization, represent 10% or more of the assets of such investment fund, have been disclosed to the Company in writing pursuant to this clause (d); or (e) the Source constitutes assets of a “plan(s)” (within the meaning of Part IV(h) of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within the meaning of Part IV(a) of the INHAM Exemption); the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied; neither the INHAM nor a Person controlling or controlled by the INHAM (applying the definition of “control” in Part IV(d)(3) of the INHAM Exemption) owns a 10% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or (f) the Source is a governmental plan; or (g) the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Company in writing pursuant to this clause (g); or (h) the Source does not include “plan assets” of any employee benefit plan, other than a plan exempt from the coverage of Title I of ERISA. As used in this Section 6.2, the terms “employee benefit plan,” “governmental plan,” and “separate account” shall have the respective meanings assigned to such terms in Section 3 of ERISA.

The Dayton Power and Light Company Bond Purchase Agreement 14 Section 6.3. Purchaser Status. Each Purchaser severally represents that such Purchaser is, and on the Closing Date will be, an “accredited investor” as defined in Rule 501(a) under the Securities Act. SECTION 7. INFORMATION AS TO COMPANY. Section 7.1. Financial and Business Information. The Company shall deliver to each Holder of a Bond that is an Institutional Investor: (a) Quarterly Statements — within sixty (60) days (or such shorter period as is the earlier of (x) fifteen (15) days greater than the period applicable to the filing of the Company’s Quarterly Report on Form 10-Q (the “Form 10-Q”) with the SEC regardless of whether the Company is subject to the filing requirements thereof and (y) the date by which such financial statements are required to be delivered under any Material Credit Facility or the date on which such corresponding financial statements are delivered under any Material Credit Facility if such delivery occurs earlier than such required delivery date) after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of, (i) a consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and (ii) consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter, setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments; (b) Annual Statements — within one hundred five (105) days (or such shorter period as applicable to the filing of the Company’s Annual Report on Form 10-K (the “Form 10-K”) with the SEC regardless of whether the Company is subject to the filing requirements thereof after the end of each fiscal year of the Company, duplicate copies of (i) a consolidated balance sheet of the Company and its Subsidiaries as at the end of such year, and (ii) consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries for such year,

The Dayton Power and Light Company Bond Purchase Agreement 15 setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon (without a “going concern” or similar qualification or exception and without any qualification or exception as to the scope of the audit on which such opinion is based) of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances; (c) SEC and Other Reports — except for the filings referred to in Section 7.1(a) and (b) above, promptly upon their becoming available and, to the extent applicable, one copy of (i) each financial statement, report, notice or proxy statement sent by the Company or any Subsidiary to its public securities holders generally and (ii) each regular or periodic report, each registration statement (without exhibits except as expressly requested by such Holder), and each prospectus and all amendments thereto filed by the Company or any Subsidiary with the SEC and of all press releases and other statements made available generally by the Company or any Subsidiary to the public concerning developments that are Material, provided that the Company shall be deemed to have made such delivery of such information if it shall have timely filed such information with the SEC; (d) Notice of Default or Event of Default — promptly, and in any event within five (5) days after a Responsible Officer becomes aware of the existence of any Default or Event of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in Section 11(f) hereof, a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto; (e) ERISA Matters — promptly, and in any event within ten (10) Business Days after a Responsible Officer becomes aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect thereto: (i) with respect to any Plan, any reportable event, as defined in Section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof; or (ii) the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any such Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; or

The Dayton Power and Light Company Bond Purchase Agreement 16 (iii) any event, transaction or condition that could result in the incurrence of any liability by the Company or any ERISA Affiliate pursuant to Title IV of ERISA or the penalty or excise tax provisions of the Code relating to any Plan, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to Title IV of ERISA or such penalty or excise tax provisions; that, in each case of clauses (i) through (iii) above, would reasonably be expected to result in a Material Adverse Effect; (f) Supplemental Indentures; Deliveries Required under Indenture — promptly, and in any event within five (5) days after the execution and delivery thereof, a copy of (i) any supplement to the Indenture that the Company from time to time may hereafter execute and deliver which amends the Indenture in any material respect, and (ii) each delivery required to be made to the Trustee pursuant to the Indenture; and (g) Requested Information — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries or relating to the ability of the Company to perform its obligations hereunder and under the Bonds as from time to time may be reasonably requested by any Holder of a Bond. Section 7.2. Officer’s Certificate. Each set of financial statements delivered to a Holder of a Bond that pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer: (a) Covenant Compliance — setting forth the information from such financial statements that is required in order to establish whether the Company was in compliance with the requirements of Section 10.4 during the quarterly or annual period covered by the financial statements then being furnished (including with respect to each provision that involves mathematical calculations, the information from such financial statements that is required to perform such calculations and detailed calculations of the maximum or minimum amount, ratio or percentage, as the case may be), permissible under the terms of such Section, and the calculation of the amount, ratio or percentage then in existence; (b) Indenture Compliance — certifying that (i) the Company was in compliance with the requirements of the Indenture during the quarterly or annual period covered by the statements then being furnished to the extent required to be provided under the Indenture; and (ii) to the extent the Company issued additional Securities under the Indenture during the period covered by the statements being furnished, any information that the Company provided to the Trustee to show compliance with the Indenture in connection with the issuance of such additional Securities; and (c) Event of Default — certifying that such Senior Financial Officer has reviewed the relevant terms hereof and of the Indenture and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the

The Dayton Power and Light Company Bond Purchase Agreement 17 Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default under either the Indenture or this Agreement, if any such condition or event existed or exists, specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto. Section 7.3. Visitation. The Company shall permit the representatives of each Holder of a Bond that is an Institutional Investor: (a) No Default – if no Default or Event of Default then exists, at the expense of such Holder and upon reasonable prior notice to the Company, to visit the principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s officers, and, with the consent of the Company (which consent will not be unreasonably withheld), to visit the other offices and properties of the Company and each Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and (b) Default – if a Default or Event of Default then exists, at the expense of the Company to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be requested. Section 7.4. Electronic Delivery. Financial statements, opinions of independent certified public accountants, other information and Officer’s Certificates that are required to be delivered by the Company pursuant to Sections 7.1(a), (b) or (c) and Section 7.2 shall be deemed to have been delivered if the Company satisfies any of the following requirements with respect thereto: (a) such financial statements satisfying the requirements of Section 7.1(a) or (b) and related Officer’s Certificate satisfying the requirements of Section 7.2 and any other information required under Section 7.1(c) are delivered to each Holder of a Bond by e-mail at the e-mail address set forth in such Holder’s Schedule A or as communicated from time to time in a separate writing delivered to the Company; (b) the Company shall have timely filed such Form 10–Q or Form 10–K, satisfying the requirements of Section 7.1(a) or (b) and such other information as required by Section 7.1(c), as the case may be, together with the related Officer’s Certificate satisfying the requirements of Section 7.2, with the SEC on EDGAR; (c) the Company shall have made such information as satisfies the requirements of Sections 7.1(a), (b) or (c), together with the related Officer’s Certificate satisfying the

The Dayton Power and Light Company Bond Purchase Agreement 18 requirements of Section 7.2, available on its home page on the internet, which is located at https://www.dplinc.com/investors/financial-reporting/sec-filings/ as of the date of this Agreement; or (d) such financial statements satisfying the requirements of Section 7.1(a) or Section 7.1(b), together with the related Officer’s Certificate satisfying the requirements of Section 7.2 and any other information required under Section 7.1(c) are timely posted by or on behalf of the Company on IntraLinks or on any other similar website to which each Holder of a Bond has free access. provided however, that in no case shall access to such financial statements, other information and Officer’s Certificates be conditioned upon any waiver or other agreement or consent (other than confidentiality provisions consistent with Section 20 of this Agreement). SECTION 8. PAYMENT AND PREPAYMENT OF THE BONDS. Section 8.1. Maturity. As provided therein, the entire unpaid principal balance of each Bond shall be due and payable on the Maturity Date thereof. Section 8.2. Optional Prepayments with Make-Whole Amount. The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Bonds, in an amount not less than 5% of the aggregate principal amount of such Bonds then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, plus the Make-Whole Amount determined for the prepayment date with respect to such principal amount of each Bond that is then being so prepaid, together with interest accrued thereon to the date of such prepayment; provided that if the Notes are optionally prepaid within 90 days of the Maturity Date pursuant to this Section 8.2, no Make-Whole Amount shall be payable. The Company will give each Holder of a Bond written notice of each optional prepayment under this Section 8.2 not less than fifteen (15) days and not more than sixty (60) days prior to the date fixed for such prepayment, unless the Company and the Required Holders agree to another time period pursuant to Section 16. Each such notice shall be unconditional and irrevocable and shall specify such date (which shall be a Business Day), the aggregate principal amount of the Bonds to be prepaid on such date, the principal amount of each Bond held by such Holder to be prepaid (determined in accordance with Section 8.3), and any other information required to be delivered under the terms of the Indenture, and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation. Two (2) Business Days prior to such prepayment, the Company shall deliver to each Holder of a Bond a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date. Section 8.3. Allocation of Partial Prepayments. In the case of each partial prepayment of the Bonds pursuant to the provisions of Section 8.2, the principal amount of the Bonds to be

The Dayton Power and Light Company Bond Purchase Agreement 19 prepaid shall be allocated among all of the Bonds at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof. Section 8.4. Maturity; Surrender, Etc. In the case of each prepayment of Bonds pursuant to this Section 8, the principal amount of each Bond to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue. Any Bond paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Bond shall be issued in lieu of any prepaid principal amount of any Bond. Section 8.5. Purchase of Bonds. The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Bonds except (a) upon the payment or prepayment of the Bonds in accordance with the terms of this Agreement and the Bonds or (b) pursuant to a written offer to purchase all outstanding Bonds made by the Company or an Affiliate pro rata to the Holders of the Bonds upon the same terms and conditions. Any such offer shall provide each Holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least ten (10) Business Days. If the Holders of more than 35% of the principal amount of the Bonds then outstanding accept such offer, the Company shall promptly notify the remaining Holders of such fact and the expiration date for the acceptance by Holders of Bonds of such offer shall be extended by the number of days necessary to give each such remaining Holder at least seven (7) Business Days from its receipt of such notice to accept such offer. The Company will promptly cancel all Bonds acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of Bonds pursuant to this Agreement and no Bonds may be issued in substitution or exchange for any such Bonds. Section 8.6. Make-Whole Amount for the Bonds. The term “Make-Whole Amount” means, with respect to any Bond, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Bond over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount, the following terms have the following meanings: “Called Principal” means, with respect to any Bond, the principal of such Bond that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1 or any other Financing Agreement, as the context requires. “Discounted Value” means, with respect to the Called Principal of any Bond, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Bonds is payable) equal to the Reinvestment Yield with respect to such Called Principal.

The Dayton Power and Light Company Bond Purchase Agreement 20 “Reinvestment Yield” means, with respect to the Called Principal of any Bond, 0.50% plus the yield to maturity implied by the “Ask Yields” reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on-the-run U.S. Treasury securities (“Reported”) having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date. If there are no such U.S. Treasury securities Reported having a maturity equal to such Remaining Average Life, then such implied yield to maturity will be determined by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between the “Ask Yields” Reported for the applicable most recently issued actively traded on-the-run U.S. Treasury securities with the maturities (1) closest to and greater than such Remaining Average Life and (2) closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the Bond. If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of interpolation), then “Reinvestment Yield” means, with respect to the Called Principal of any Bond, 0.50% plus the yield to maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity having a term equal to the Remaining Average Life of such Called Principal as of such Settlement Date. If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average Life, such implied yield to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so reported with the term closest to and less than such Remaining Average Life. The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the Bond. “Remaining Average Life” means, with respect to any Called Principal, the number of years obtained by dividing (a) such Called Principal into (b) the sum of the products obtained by multiplying (i) the principal component of each Remaining Scheduled Payment with respect to such Called Principal by (ii) the number of years, computed on the basis of a 360-day year composed of twelve 30-day months and calculated to two decimal places, that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment. “Remaining Scheduled Payments” means, with respect to the Called Principal of any Bond, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the Bond, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or Section 12.1, as the context requires.

The Dayton Power and Light Company Bond Purchase Agreement 21 “Settlement Date” means, with respect to the Called Principal of any Bond, the date on which such Called Principal is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires. Section 8.7. Payments Due on Non-Business Days. Anything in any Financing Agreement to the contrary notwithstanding, (x) except as set forth in clause (y), any payment of interest on any Bond that is due on a date that is not a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; and (y) any payment of principal of or Make-Whole Amount on any Bond (including principal due on the Maturity Date of such Bond) that is due on a date that is not a Business Day shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day. SECTION 9. AFFIRMATIVE COVENANTS. The Company covenants that so long as any of the Bonds are outstanding: Section 9.1. Compliance with Law. Without limiting Section 10.2, the Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including ERISA, Environmental Laws, the USA PATRIOT Act and the other laws and regulations that are referred to in Section 5.16, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. Section 9.2. Insurance. The Company will, and will cause each of its Subsidiaries to, maintain with insurers it reasonably believes to be financially sound, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated. Section 9.3. Maintenance of Properties. The Company will, and will cause each of its Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section 9.3 shall not prevent the Company or any Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Company has concluded that such discontinuance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

The Dayton Power and Light Company Bond Purchase Agreement 22 Section 9.4. Payment of Taxes and Claims. The Company will, and will cause each of its Subsidiaries to, file all necessary tax returns required to be filed in any jurisdiction and will pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies payable by any of them, to the extent the same have become due and payable and before they have become delinquent, provided that neither the Company nor any Subsidiary need pay any such tax, assessment, charge, claim or levy if (a) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or (b) the nonpayment of all such taxes, assessments, charges, claims and levies would not reasonably be expected to have a Material Adverse Effect. Section 9.5. Corporate Existence, Etc. The Company will at all times preserve and keep its corporate existence in full force and effect. The Company will at all times preserve and keep in full force and effect the corporate existence of each of its Subsidiaries (unless merged into the Company or a wholly-owned Subsidiary) and all rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the Company or such Subsidiary, the termination of or failure to preserve and keep in full force and effect such corporate existence, right or franchise would not, individually or in the aggregate, have a Material Adverse Effect. Section 9.6. Books and Records. The Company will, and will cause each of its Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company or such Subsidiary, as the case may be, in all material respects. Section 9.7. Compliance with Material Agreements. The Company will comply with the terms, conditions and provisions of all Material agreements, except where such noncompliance would not reasonably be expected to have a Material Adverse Effect. Section 9.8. Recording of Fifty-Third Supplement. The Company will cause the Fifty-Third Supplement to be duly submitted for recording in the real estate recording office in each county listed on Schedule 4.11 not later than thirty (30) days after the Closing Date and will provide each Holder with evidence of such recording or submission not later than thirty (30) days after the Closing Date. SECTION 10. NEGATIVE COVENANTS. The Company covenants that so long as any of the Bonds are outstanding: Section 10.1. Transactions with Affiliates. The Company will not and will not permit any Subsidiary to enter into directly or indirectly any Material transaction or Material group of related transactions (including the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except in the ordinary course and pursuant to the reasonable requirements of the Company’s or such Subsidiary’s business and upon fair and reasonable terms no less favorable to the Company

The Dayton Power and Light Company Bond Purchase Agreement 23 or such Subsidiary than would be obtainable in a comparable arm’s-length transaction with a Person not an Affiliate. Section 10.2. Line of Business. The Company will not engage in any business if, as a result, the general nature of the business in which the Company and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Company is engaged on the date of this Agreement. Section 10.3. Economic Sanctions, Etc.. The Company will not, and will not permit any Controlled Entity to (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving the proceeds of the Bonds) with any Person if such investment, dealing or transaction (i) would cause any Holder or any affiliate of such Holder to be in violation of, or subject to sanctions under, any law or regulation applicable to such Holder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws. Section 10.4. Financial Covenant. The Company shall not permit the ratio of Consolidated Total Debt to Consolidated Total Capitalization at any time to be greater than 0.67 to 1.00. SECTION 11. EVENTS OF DEFAULT. An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing: (a) the Company defaults in the payment of any principal or Make-Whole Amount, if any, on any Bond when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or (b) the Company defaults in the payment of any interest on any Bond for more than five (5) days after the same becomes due and payable; or (c) the occurrence of any “Event of Default” under the Indenture (for the avoidance of doubt, paragraphs (a) and (b) of this Section 11 will apply instead of the defaults described in Sections 1(a) and 1(b) of Article Twelve of the Indenture with respect to any Bond); or (d) the Company defaults in the performance of or compliance with any term contained herein (other than those referred to in paragraphs (a), (b) and (c) of this Section 11) and such default is not remedied within thirty (30) days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from any Holder of a Bond (any such written notice to be identified as a “notice of default” and to refer specifically to this paragraph (d) of Section 11); or

The Dayton Power and Light Company Bond Purchase Agreement 24 (e) any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in any Financing Agreement or in any writing furnished in connection with the transactions contemplated hereby or thereby, proves to have been false, incorrect or misleading in any material respect on the date as of which made; or (f) (i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest under the Credit Agreement or on any other Indebtedness (other than the Bonds and any other Securities authenticated under the Indenture) that is outstanding in an aggregate principal amount of at least $50,000,000 (or its equivalent in the relevant currency of payment) beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance with any term of the Credit Agreement or any other evidence of Indebtedness (other than the Bonds and any other Securities authenticated under the Indenture) in an aggregate outstanding principal amount of at least $50,000,000 (or its equivalent in the relevant currency of payment) or any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Indebtedness has become, or has been declared (or one or more Persons are entitled to declare such Indebtedness to be), due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Indebtedness to convert such Indebtedness into equity interests), (x) the Company or any Subsidiary has become obligated to purchase or repay borrowings under the Credit Agreement or any other Indebtedness (other than the Bonds and any other Securities authenticated under the Indenture) before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $50,000,000 (or its equivalent in the relevant currency of payment), or (y) one or more Persons have the right to require the Company or any Subsidiary so to purchase or repay amounts under the Credit Agreement or such Indebtedness; or (g) one or more final judgments or orders for the payment of money aggregating in excess of $50,000,000 (or its equivalent in the relevant currency of payment), including any such final order enforcing a binding arbitration decision (except to the extent covered by independent third-party insurance as to which the insurer acknowledges in writing that such judgments or orders are covered by such insurance) are rendered against one or more of the Company or any Subsidiary and which judgments are not, within sixty (60) days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within sixty (60) days after the expiration of such stay; or (h) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under Section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been filed with the PBGC or the PBGC shall have instituted proceedings under Section 4042 of ERISA to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any ERISA Affiliate

The Dayton Power and Light Company Bond Purchase Agreement 25 that a Plan may become a subject of any such proceedings, (iii) the aggregate “amount of unfunded benefit liabilities” (within the meaning of Section 4001(a)(18) of ERISA) for which the Company or any ERISA Affiliate is obligated under all Plans, determined in accordance with Title IV of ERISA, shall exceed $100,000,000, (iv) the Company or any ERISA Affiliate shall have incurred any liability (other than for premium payments due to the PBGC) pursuant to Title IV of ERISA or the penalty or excise tax provisions of the Code relating to any Plan, (v) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company or any Subsidiary establishes or amends any employee welfare benefit plan that provides post-employment welfare benefits in a manner that could increase the liability of the Company or any Subsidiary thereunder; provided that any such event or events described in clauses (i) through (vi) above, either individually or together with any other such event or events, would reasonably be expected to have a Material Adverse Effect; or (i) any Bond Document ceases to be in full force and effect (other than by reason of a release of Mortgage and Pledged Property in accordance with the terms thereof) or shall be declared null and void, (ii) the Company shall contest the validity or enforceability of any Financing Agreement in writing or deny in writing that it has any further liability under any Financing Agreement to which it is a party or shall contest the validity or perfection of any Lien on any Mortgage and Pledged Property purported to be covered by the Indenture, or (iii) the Trustee shall not have or shall cease to have a valid and perfected Lien in any material portion of the Mortgage and Pledged Property purported to be covered by the Indenture with the priority required by the Indenture; or (j) the Company defaults in the compliance with the provisions of Section 10.4. SECTION 12. REMEDIES ON DEFAULT, ETC. Section 12.1. Acceleration. (a) If an Event of Default has occurred with respect to the Company in connection with an “Event of Default” under Sections 1(e) or 1(f) of Article Twelve of the Indenture, all of the Bonds then outstanding shall automatically become immediately due and payable. (b) If any other Event of Default has occurred and is continuing, the Required Holders may at any time during the continuation of such Event of Default, at its or their option, by notice or notices to the Company, declare all the Bonds then outstanding to be immediately due and payable. (c) If any Event of Default described in paragraph (a) or (b) of Section 11 has occurred and is continuing, any Holder or Holders of Bonds at the time outstanding affected by such Event of Default may at any time during the continuation of such Event of Default, at its or their option, by notice or notices to the Company, declare all the Bonds held by such Holder or Holders to be immediately due and payable. Upon any Bond becoming due and payable under this Section 12 or Section 1 of Article Twelve of the Indenture, whether automatically or by declaration, such Bond will forthwith mature

The Dayton Power and Light Company Bond Purchase Agreement 26 and the entire unpaid principal amount of such Bond, plus (i) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (ii) the Make-Whole Amount determined in respect of such principal amount, shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived. The Company acknowledges, and the parties hereto agree, that each Holder of a Bond has the right to maintain its investment in the Bonds free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make-Whole Amount by the Company in the event that the Bonds are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances. Section 12.2. Exercise of Remedies Under Indenture. The Bonds are “outstanding” (as defined in the Indenture) under the Indenture, secured equally and ratably by the Lien of the Indenture without preference or priority over any other series of “outstanding” bonds. The Holders of Bonds may pursue all rights and remedies against the Company and Mortgaged and Pledged Property as provided under the terms of the Indenture. The Company agrees that all amounts due and payable hereunder, including Make-Whole Amount, if any, shall be payable pursuant to “Second” of Section 11 of Article Twelve of the Indenture. Section 12.3. Other Remedies. Subject to Section 12.2 hereof, if any Default or Event of Default has occurred and is continuing, and irrespective of whether any Bonds have become or have been declared immediately due and payable under Section 12.1, any Holder at the time outstanding may proceed to protect and enforce the rights of such Holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Bond, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise. Section 12.4. Rescission. At any time after any the Bonds have been declared due and payable pursuant to clause (b) or (c) of Section 12.1, the Required Holders, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Bonds, all principal of and Make-Whole Amount, if any, on any Bonds that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount, if any, and (to the extent permitted by applicable law) any overdue interest in respect of the Bonds, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 16 and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to the Bonds. No rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon. Section 12.5. No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no delay on the part of any Holder of any Bond in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such Holder’s rights, powers or remedies. No right, power or remedy conferred by this Agreement or by any Bond upon any Holder thereof shall

The Dayton Power and Light Company Bond Purchase Agreement 27 be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise. Without limiting the obligations of the Company under Section 14, the Company will pay to the Holder of each Bond on demand such further amount as shall be sufficient to cover all reasonable costs and expenses of such Holder incurred in any enforcement or collection under this Section 12, including, without limitation, reasonable and documented attorneys’ fees, expenses and disbursements. SECTION 13. PAYMENTS ON BONDS. Section 13.1. Home Office Payment. So long as any Purchaser or its nominee shall be the Holder of any Bond, and notwithstanding anything contained in the Indenture or in such Bond to the contrary, the Company will pay all sums becoming due on such Bond for principal, Make-Whole Amount or premium, if any, interest and all other amounts becoming due hereunder by the method and at the address specified for such purpose below such Purchaser’s name in Schedule A, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Bond or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Bond, such Purchaser shall surrender such Bond for cancellation, reasonably promptly after any such request, to the Trustee at its principal executive office or at the place of payment most recently designated by the Trustee pursuant to the Indenture. Prior to any sale or other disposition of any Bond held by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Bond to the Company in exchange for a new Bond or Bonds pursuant to Section 3.5 of the Indenture. The Company will afford the benefits of this Section 13.1 to any Institutional Investor that is the direct or indirect transferee of any Bond purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Bond as the Purchasers have made in this Section 13.1. SECTION 14. REGISTRATION; EXCHANGE; EXPENSES, ETC. Section 14.1. Registration of Bonds. The Company shall keep a register for the registration of Bonds and registration of transfers of Bonds in accordance with Section 6 of Article Two of the Indenture. Section 14.2. Transaction Expenses. Whether or not the transactions contemplated hereby are consummated, the Company will pay all reasonable costs and expenses (including reasonable and documented attorneys’ fees of one special counsel, and, if reasonably required by the Required Holders, one local or other counsel) incurred (a) by the Purchasers in connection with such transactions, and (b) by the Holders of the Bonds in connection with any amendments, waivers or consents under or in respect of any Financing Agreement (whether or not such amendment, waiver or consent becomes effective), including, without limitation: (i) the reasonable and documented costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under any Financing Agreement or in responding to any subpoena or other legal process or informal investigative demand issued in connection with any Financing Agreement, or by reason of being a Holder of Bonds, (ii) the reasonable and documented costs and

The Dayton Power and Light Company Bond Purchase Agreement 28 expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated by any Financing Agreement and (iii) the reasonable and documented costs and expenses incurred in connection with the initial filing of any Financing Agreement and all related documents and financial information with the SVO, provided that such costs and expenses under this clause (iii) shall not exceed $5,000. The Company will pay, and will save each Purchaser and each other Holder of a Bond harmless from, (i) all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if any, retained by a Purchaser or other Holder in connection with its purchase of the Bonds), (ii) any and all wire transfer fees that any bank or other financial institution deducts from any payment under such Bond to such Holder or otherwise charges to a Holder of a Bond with respect to a payment under such Bond and (iii) any judgment, liability, claim, order, decree, fine, penalty, cost, fee, expense (including attorneys’ fees and expenses) or obligation resulting from the consummation of the transactions contemplated hereby, including the use of the proceeds of the Bonds by the Company. If required by the NAIC, the Company shall obtain and maintain at its own cost and expense a Legal Entity Identifier (LEI). Section 14.3. Certain Taxes. The Company agrees to pay all stamp, documentary or similar taxes or fees which may be payable in respect of the execution and delivery or the enforcement of any Financing Agreement or the execution and delivery (but not the transfer) or the enforcement of any of the Bonds in the United States or any other jurisdiction where the Company has assets or of any amendment of, or waiver or consent under or with respect to, any Financing Agreement or of any of the Bonds, and to pay any value added tax due and payable in respect of reimbursement of costs and expenses by the Company pursuant to this Section 14, and will save each Holder of a Bond to the extent permitted by applicable law harmless against any loss or liability resulting from nonpayment or delay in payment of any such tax or fee required to be paid by the Company hereunder. Section 14.4. Survival. The obligations of the Company under this Section 14 will survive the payment or transfer of any Bond, the enforcement, amendment or waiver of any provision of any Financing Agreement, and the termination of any Financing Agreement. SECTION 15. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT. All representations and warranties contained herein shall survive the execution and delivery of the Financing Agreements, the purchase or transfer by any Purchaser of any Bond or portion thereof or interest therein and the payment of any Bond, and may be relied upon by any subsequent Holder of a Bond, regardless of any investigation made at any time by or on behalf of such Purchaser or any other Holder of a Bond. All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to any Financing Agreement shall be deemed representations and warranties of the Company under this Agreement. Subject to the preceding sentence, the Financing Agreements embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.

The Dayton Power and Light Company Bond Purchase Agreement 29 SECTION 16. AMENDMENT AND WAIVER. Section 16.1. Requirements. The Company will not cause or permit the Indenture to change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest or of the Make-Whole Amount, if any, on the Bonds as set forth in the Indenture and the Bonds, without the written consent of the Holder of each Bond at the time outstanding affected thereby. This Agreement and the Bonds may be amended, and the observance of any term hereof or of the Bonds may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that (a) no amendment or waiver of any of the provisions of Sections 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used therein), will be effective as to any Purchaser unless consented to by such Purchaser in writing, and (b) no amendment or waiver may, without the written consent of the Holder of each Bond at the time outstanding, (i) subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of (x) interest on the Bonds or (y) the Make-Whole Amount, (ii) change the percentage of the principal amount of the Bonds the Holders of which are required to consent to any amendment or waiver, or (iii) amend any of Sections 8, 11(a), 11(b), 12, 16 or 20 (or any defined term as it is used therein). Section 16.2. Solicitation of Holders of Bonds. (a) Solicitation. The Company will provide each Holder of a Bond (irrespective of the amount of Bonds then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such Holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Bonds. The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 16 to each Holder of an outstanding Bond promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite Holders of Bonds. (b) Payment. The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise (other than legal fees or other related expenses), or grant any security or provide other credit support, to any Holder of Bonds as consideration for or as an inducement to the entering into by any Holder of Bonds or any waiver or amendment of any of the terms and provisions hereof or of any other Financing Agreement unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each Holder of a Bond then outstanding even if such Holder did not consent to such waiver or amendment. (c) Consent in Contemplation of Transfer. Any consent given pursuant to this Section 16 by the Holder of any Bond that has transferred or has agreed to transfer its Bond to the Company or any Affiliate of the Company and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such Holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all

The Dayton Power and Light Company Bond Purchase Agreement 30 other Holders of Bonds that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such Holder. Section 16.3. Binding Effect, Etc. Any amendment or waiver consented to as provided in this Section 16 applies equally to all Holders of Bonds and is binding upon them and upon each future Holder of a Bond and upon the Company without regard to whether such Bond has been marked to indicate such amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon. No course of dealing between the Company and the Holder of any Bond nor any delay in exercising any rights hereunder or under any Bond shall operate as a waiver of any rights of any Holder. Section 16.4. Bonds Held by Company, Etc. Solely for the purpose of determining whether the Holders of the requisite percentage of the aggregate principal amount of Bonds then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Bonds, or have directed the taking of any action provided herein or in the Bonds to be taken upon the direction of the Holders of a specified percentage of the aggregate principal amount of Bonds then outstanding, Bonds directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding. SECTION 17. NOTICES. All notices and communications provided for hereunder shall be in writing and sent by electronic mail, registered or certified mail or internationally recognized overnight delivery services (charges prepaid). Any such notice must be sent: (i) if to any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications in Schedule A, or at such other address as such Purchaser or nominee shall have specified to the Company in writing; (ii) if to any other Holder of a Bond, to such Holder at such address as such Holder shall have specified to the Company in writing; (iii) if to the Company, to the Company at its address set forth at the beginning hereof to the attention of Treasurer, or at such other address as the Company shall have specified to the Holder of each Bond in writing; or (iv) if to the Trustee, to The Bank of New York Mellon, 240 Greenwich Street, 7E, New York, New York 10286, Attention: Corporate Trust Administration – Corporate Finance Unit or at such other address as the Trustee shall have specified to the Company and each other party hereto in writing. Notices under this Section 17 will be deemed given only when actually received.

The Dayton Power and Light Company Bond Purchase Agreement 31 SECTION 18. INDEMNIFICATION. The Company hereby agrees to indemnify and hold the Purchasers harmless from, against and in respect of any and all loss, liability and reasonable and documented expense (including reasonable and documented attorneys’ fees) arising from any misrepresentation or nonfulfillment of any undertaking on the part of the Company under this Agreement. The indemnification obligations of the Company under this Section 18 shall survive the execution and delivery of this Agreement, the delivery of the Bonds to the Purchasers and the consummation of the transactions contemplated herein. SECTION 19. REPRODUCTION OF DOCUMENTS. This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Bonds themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced. The Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence. This Section 19 shall not prohibit the Company or any Holder of a Bond from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction. SECTION 20. CONFIDENTIAL INFORMATION. For the purposes of this Section 20, “Confidential Information” means information delivered to any Purchaser or Holder of a Bond by or on behalf of the Company in connection with the transactions contemplated by or otherwise pursuant to this Agreement or the Bonds that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of the Company, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser or Holder prior to the time of such disclosure without an obligation of confidentiality, (b) subsequently becomes publicly known through no act or omission by such Purchaser or Holder or any person acting on such Purchaser’s or Holder’s behalf, (c) otherwise becomes known to such Purchaser or Holder other than through disclosure by the Company or (d) constitutes financial statements delivered to such Purchaser or Holder under Section 7.1 of this Agreement that are otherwise publicly available. Each Purchaser and Holder will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser or Holder in good faith to protect confidential information of third parties delivered to such Purchaser or Holder (which such standard shall be no less than the standard for maintaining Purchaser’s own confidential information) and shall use such information only for purposes of monitoring its investment in the Bonds, provided that such Purchaser or Holder may deliver or disclose

The Dayton Power and Light Company Bond Purchase Agreement 32 Confidential Information to (i) its directors, trustees, officers, employees, agents, attorneys and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by the Bonds and who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 20), (ii) its auditors, financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 20, (iii) any other Holder of a Bond, (iv) any Institutional Investor to which it sells or offers to sell such Bond or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (v) any Person from which it offers to purchase any security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 20), (vi) any federal or state or provincial regulatory authority having jurisdiction over such Purchaser or Holder, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s or Holder’s investment portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser or Holder, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser or Holder is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser or Holder may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser’s or Holder’s Bonds and this Agreement. Each Holder of a Bond, by its acceptance of a Bond, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 20 as though it were a party to this Agreement. On reasonable request by the Company in connection with the delivery to any Holder of a Bond of information required to be delivered to such Holder under this Agreement or requested by such Holder (other than a Holder that is a party to this Agreement or its nominee), such Holder will enter into an agreement with the Company embodying the provisions of this Section 20. In the event that as a condition to receiving access to information relating to the Company in connection with the transactions contemplated by or otherwise pursuant to this Agreement, any Purchaser or Holder of a Bond is required to agree to a confidentiality undertaking (whether through IntraLinks, another secure website, a secure virtual workspace or otherwise) which is different from this Section 20, this Section 20 shall not be amended thereby and, as between such Purchaser or such Holder and the Company, this Section 20 shall supersede any such other confidentiality undertaking. SECTION 21. MISCELLANEOUS. Section 21.1. Successors and Assigns. All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent Holder of a Bond) whether so expressed or not; provided, however, the provisions of Section 7 hereof and any other provision of this Agreement that relates only to Institutional Investors shall only apply to Institutional Investors. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto and their respective successors and assigns

The Dayton Power and Light Company Bond Purchase Agreement 33 permitted hereby) any legal or equitable right, remedy or claim under or by reason of this Agreement. Section 21.2. Accounting Terms. All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP. Except as otherwise specifically provided herein, (a) all computations made pursuant to this Agreement shall be made in accordance with GAAP and (b) all financial statements shall be prepared in accordance with GAAP. For purposes of determining compliance with the covenants set out in Section 10.4 and in any other Financing Agreement, any election by the Company to measure any financial liability using fair value (as permitted by Accounting Standard Codification Topic No. 825-10-25 – Recognition, subsection Fair Value Option or any similar accounting standard) shall be disregarded and such determination shall be made by valuing financial liability at 100% of the outstanding principal thereof, unless otherwise provided in such Financing Agreement. Section 21.3. Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction. Section 21.4. Construction, Etc. Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person. Defined terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall.” Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein) and, for purposes of the Bonds, shall also include any such bonds issued in substitution therefor pursuant to the Indenture, (b) subject to Section 21.1, any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections and Schedules shall be construed to refer to Sections of, and Schedules to, this Agreement, and (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time.

The Dayton Power and Light Company Bond Purchase Agreement 34 Section 21.5. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. Section 21.6. Governing Law. This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State. Section 21.7. Jurisdiction and Process; Waiver of Jury Trial. (a) The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Bonds. To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. (b) The Company consents to process being served by or on behalf of any Holder in any suit, action or proceeding of the nature referred to in Section 21.7(a) by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt or delivery confirmation requested, to it at its address specified in Section 17 or at such other address of which such Holder shall then have been notified pursuant to said Section. The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it. Notices hereunder shall be conclusively presumed to be received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service. (c) Nothing in this Section 21.7 shall affect the right of any Holder of a Bond to serve process in any manner permitted by law, or limit any right that the Holders of any of the Bonds may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction. (d) The parties hereto hereby waive trial by jury in any action brought on or with respect to this Agreement, the Bonds or any other document executed in connection herewith or therewith. Section 21.8. Transaction References. Provided that in no circumstance may the interest rate of 3.20% per annum be disclosed, the Company agrees that PGIM, Inc. (“PGIM”) may refer to the issuance of the Bonds in a published tombstone announcement, on its website or in marketing presentations, referring to PGIM’s role in originating the purchase of the Bonds so long as the information therein as to the Company is limited to identifying the Company, the aggregate

The Dayton Power and Light Company Bond Purchase Agreement 35 principal amount and issue date (including the month and year of issuance) of the Bonds and displaying the Company’s corporate logo. * * * * *

The Dayton Power and Light Company Bond Purchase Agreement Accepted as of the date first written above. THE PRUDENTIAL INSURANCE COMPANY OF AMERICA By: Vice President PRUDENTIAL LEGACY INSURANCE COMPANY OF NEW JERSEY By: PGIM, Inc., as investment manager By: Vice President PENSIONSKASSE DES BUNDES PUBLICA By: PGIM Private Capital Limited, as Investment Manager By: Director PRUDENTIAL TERM REINSURANCE COMPANY By: PGIM, Inc., as investment manager By: Vice President PRUCO LIFE INSURANCE COMPANY By: Assistant Vice President

SCHEDULE A (to Bond Purchase Agreement) SCHEDULE A INFORMATION RELATING TO PURCHASERS NAME AND ADDRESS OF PURCHASER PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED THE PRUDENTIAL INSURANCE COMPANY OF AMERICA c/o Prudential Private Capital 2200 Ross Ave., Suite 4300W Dallas, TX 75201 $5,000,000 $86,265,000 $17,125,000 $6,435,000 Payments All payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: Beneficiary Name: U.S. Bank as Paying Agent for Prudential Beneficiary Address: 214 N. Tryon St, 26th Floor Charlotte, NC 28201 Primary Bank Name: U.S. Bank as Paying Agent for Prudential Primary ABA Number: 091000022 Account Name: Paying Agent DDA – Dayton Power and Light Company Account Number: 104791306624 FFC: 280300-700 Notices Address for all communications and notices: The Prudential Insurance Company of America c/o Prudential Private Capital 2200 Ross Ave. Suite 4300W Dallas, TX 75201 Attention: Managing Director, Real Assets, Power And for all notices relating solely to scheduled principal and interest payments and written confirmation of wire transfers to: The Prudential Insurance Company of America c/o PGIM, Inc. Prudential Tower 655 Broad Street 14th Floor - South Tower Newark, NJ 07102

A-2 Attention: PIM Private Accounting Processing Team Email: Pim.Private.Accounting.Processing.Team@prudential.com External audit confirmations of loan balances for transactions closed by PPC should be sent to the address(es) below: Via e-mail (preferred): PPCauditconfirms@prudential.com By U.S. Mail: PGIM Private Placement Operations 655 Broad Street, 14th Floor south Mail Stop # NJ 08-14-75 Newark, New Jersey 07201-5096 Attn: PPC Audit Confirmation Coordinator For any questions or assistance with audit confirmations, please contact our centralized audit confirmation telephone number, (973) 367-7561. Name of Nominee in which Bonds are to be issued: None Taxpayer I.D. Number: 22-1211670 Tax Jurisdiction: United States of America Original Bonds to be delivered to: PGIM, Inc. 655 Broad Street 14th Floor - South Tower Newark, NJ 07102 Attention: Trade Management Manager Send copy by email to: Ignacio Hirigoyen at ignacio.hirigoyen@prudential.com and to Private.Disbursements@Prudential.com

A-3 NAME AND ADDRESS OF PURCHASER PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED PRUDENTIAL LEGACY INSURANCE COMPANY OF NEW JERSEY c/o Prudential Private Capital 2200 Ross Ave., Suite 4300W Dallas, TX 75201 $15,600,000 Payments All payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: Beneficiary Name: U.S. Bank as Paying Agent for Prudential Beneficiary Address: 214 N. Tryon St, 26th Floor Charlotte, NC 28201 Primary Bank Name: U.S. Bank as Paying Agent for Prudential Primary ABA Number: 091000022 Account Name: Paying Agent DDA – Dayton Power and Light Company Account Number: 104791306624 FFC: 280300-700 Notices Address for all communications and notices: Prudential Legacy Insurance Company of New Jersey c/o Prudential Private Capital 2200 Ross Ave. Suite 4300W Dallas, TX 75201 Attention: Managing Director, Real Assets, Power And for all notices relating solely to scheduled principal and interest payments and written confirmation of wire transfers to: Prudential Legacy Insurance Company of New Jersey c/o PGIM, Inc. Prudential Tower 655 Broad Street 14th Floor - South Tower Newark, NJ 07102 Attention: PIM Private Accounting Processing Team Email: Pim.Private.Accounting.Processing.Team@prudential.com External audit confirmations of loan balances for transactions closed by PPC should be sent to the address(es) below:

A-4 Via e-mail (preferred): PPCauditconfirms@prudential.com By U.S. Mail: PGIM Private Placement Operations 655 Broad Street, 14th Floor south Mail Stop # NJ 08-14-75 Newark, New Jersey 07201-5096 Attn: PPC Audit Confirmation Coordinator For any questions or assistance with audit confirmations, please contact our centralized audit confirmation telephone number, (973) 367-7561. Name of Nominee in which Bonds are to be issued: None Taxpayer I.D. Number: 27-2457213 Tax Jurisdiction: United States of America Original Bonds to be delivered to: PGIM, Inc. 655 Broad Street 14th Floor - South Tower Newark, NJ 07102 Attention: Trade Management Manager Send copy by email to: Ignacio Hirigoyen at ignacio.hirigoyen@prudential.com and to Private.Disbursements@Prudential.com

A-5 NAME AND ADDRESS OF PURCHASER PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED PENSIONSKASSE DES BUNDES PUBLICA c/o Prudential Private Capital 2200 Ross Ave., Suite 4300W Dallas, TX 75201 $5,110,000 Payments All payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: Beneficiary Name: U.S. Bank as Paying Agent for Prudential Beneficiary Address: 214 N. Tryon St, 26th Floor Charlotte, NC 28201 Primary Bank Name: U.S. Bank as Paying Agent for Prudential Primary ABA Number: 091000022 Account Name: Paying Agent DDA – Dayton Power and Light Company Account Number: 104791306624 FFC: 280300-700 Notices Address for all communications and notices: Prudential Private Placement Investors, L.P. c/o Prudential Private Capital 2200 Ross Ave. Suite 4300W Dallas, TX 75201 Attention: Managing Director, Real Assets, Power And for all notices relating solely to scheduled principal and interest payments and written confirmation of wire transfers to: ASC.GSA.Delivery.Team@jpmorgan.com Swiss.IFAS.Service.Team@jpmorgan.com External audit confirmations of loan balances for transactions closed by PPC should be sent to the address(es) below: Via e-mail (preferred): PPCauditconfirms@prudential.com By U.S. Mail: PGIM Private Placement Operations 655 Broad Street, 14th Floor south Mail Stop # NJ 08-14-75 Newark, New Jersey 07201-5096

A-6 Attn: PPC Audit Confirmation Coordinator For any questions or assistance with audit confirmations, please contact our centralized audit confirmation telephone number, (973) 367-7561. Name of Nominee in which Bonds are to be issued: None Taxpayer I.D. Number: 98-1369117 Tax Jurisdiction: Switzerland Original Bonds to be delivered to: JPMorgan Chase Bank, N.A. 4 Chase Metrotech Center, 3rd Floor Brooklyn, NY 11245-0001 Attention: Physical Receive Department Please include in the cover letter accompanying the Notes a reference to the Purchaser’s account number (PUBLICA – PRIVATE PLACEMENT PRUDENTIAL; Account Number: GTI EAW94) Send copy by email to: Ignacio Hirigoyen at ignacio.hirigoyen@prudential.com and to Private.Disbursements@Prudential.com

A-7 NAME AND ADDRESS OF PURCHASER PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED PRUDENTIAL TERM REINSURANCE COMPANY c/o Prudential Private Capital 2200 Ross Ave., Suite 4300W Dallas, TX 75201 $2,405,000 Payments All payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: Beneficiary Name: U.S. Bank as Paying Agent for Prudential Beneficiary Address: 214 N. Tryon St, 26th Floor Charlotte, NC 28201 Primary Bank Name: U.S. Bank as Paying Agent for Prudential Primary ABA Number: 091000022 Account Name: Paying Agent DDA – Dayton Power and Light Company Account Number: 104791306624 FFC: 280300-700 Notices Address for all communications and notices: Prudential Term Reinsurance Company c/o Prudential Private Capital 2200 Ross Ave. Suite 4300W Dallas, TX 75201 Attention: Managing Director, Real Assets, Power And for all notices relating solely to scheduled principal and interest payments and written confirmation of wire transfers to: Prudential Term Reinsurance Company c/o PGIM, Inc. Prudential Tower 655 Broad Street 14th Floor - South Tower Newark, NJ 07102 Attention: PIM Private Accounting Processing Team Email: Pim.Private.Accounting.Processing.Team@prudential.com External audit confirmations of loan balances for transactions closed by PPC should be sent to the address(es) below:

A-8 Via e-mail (preferred): PPCauditconfirms@prudential.com By U.S. Mail: PGIM Private Placement Operations 655 Broad Street, 14th Floor south Mail Stop # NJ 08-14-75 Newark, New Jersey 07201-5096 Attn: PPC Audit Confirmation Coordinator For any questions or assistance with audit confirmations, please contact our centralized audit confirmation telephone number, (973) 367-7561. Name of Nominee in which Bonds are to be issued: None Taxpayer I.D. Number: 46-4641980 Tax Jurisdiction: United States of America Original Bonds to be delivered to: PGIM, Inc. 655 Broad Street 14th Floor - South Tower Newark, NJ 07102 Attention: Trade Management Manager Send copy by email to: Ignacio Hirigoyen at ignacio.hirigoyen@prudential.com and to Private.Disbursements@Prudential.com

A-9 NAME AND ADDRESS OF PURCHASER PRINCIPAL AMOUNT OF BONDS TO BE PURCHASED PRUCO LIFE INSURANCE COMPANY c/o Prudential Private Capital 2200 Ross Ave., Suite 4300W Dallas, TX 75201 $2,060,000 Payments All payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: Beneficiary Name: U.S. Bank as Paying Agent for Prudential Beneficiary Address: 214 N. Tryon St, 26th Floor Charlotte, NC 28201 Primary Bank Name: U.S. Bank as Paying Agent for Prudential Primary ABA Number: 091000022 Account Name: Paying Agent DDA – Dayton Power and Light Company Account Number: 104791306624 FFC: 280300-700 Notices Address for all communications and notices: Pruco Life Insurance Company c/o Prudential Private Capital 2200 Ross Ave. Suite 4300W Dallas, TX 75201 Attention: Managing Director, Real Assets, Power And for all notices relating solely to scheduled principal and interest payments and written confirmation of wire transfers to: Pruco Life Insurance Company c/o PGIM, Inc. Prudential Tower 655 Broad Street 14th Floor - South Tower Newark, NJ 07102 Attention: PIM Private Accounting Processing Team Email: Pim.Private.Accounting.Processing.Team@prudential.com External audit confirmations of loan balances for transactions closed by PPC should be sent to the address(es) below:

A-10 Via e-mail (preferred): PPCauditconfirms@prudential.com By U.S. Mail: PGIM Private Placement Operations 655 Broad Street, 14th Floor south Mail Stop # NJ 08-14-75 Newark, New Jersey 07201-5096 Attn: PPC Audit Confirmation Coordinator For any questions or assistance with audit confirmations, please contact our centralized audit confirmation telephone number, (973) 367-7561. Name of Nominee in which Bonds are to be issued: None Taxpayer I.D. Number: 22-1944557 Tax Jurisdiction: United States of America Original Bonds to be delivered to: PGIM, Inc. 655 Broad Street 14th Floor - South Tower Newark, NJ 07102 Attention: Trade Management Manager Send copy by email to: Ignacio Hirigoyen at ignacio.hirigoyen@prudential.com and to Private.Disbursements@Prudential.com

SCHEDULE B (to Bond Purchase Agreement) SCHEDULE B DEFINED TERMS As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term: “8-Ks” is defined in Section 5.3. “2019 10-K” is defined in Section 5.3. “2020 Q1 10-Q” is defined in Section 5.3. “AES” means The AES Corporation, a Delaware corporation. “Affiliate” means, at any time, and with respect to any Person, (a) any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and (b) any other Person beneficially owning or holding, directly or indirectly, 10% or more of any class of voting or equity interests of such first Person or any Subsidiary of such first Person or any Person of which such first Person and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or more of any class of voting or equity interests. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company. “Agreement” means this Bond Purchase Agreement, including all Schedules attached to this Agreement. “Anti-Corruption Laws” means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010. “Anti-Money Laundering Laws” means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding money laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes, including the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act) and the USA PATRIOT Act. “Attributable Indebtedness” means, on any date, (a) in respect of any capital lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a capital lease.

B-2 “Blocked Person” means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b). “Bond Documents” means the Bonds, the Fifty-Third Supplement and the Indenture. “Bonds” is defined in Section 1.1. “Business Day” means for the purposes of any provision of this Agreement, any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Dayton, Ohio are required or authorized to be closed. “Called Principal” is defined in Section 8.6. “Closing” is defined in Section 3. “Closing Date” means the date of the Closing. “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time. “Collateral Filings” is defined in Section 4.11. “Company” is defined in the first paragraph of this Agreement. “Confidential Information” is defined in Section 20. “Consolidated Net Worth” means, as of any date of determination, for the Company and its Subsidiaries on a consolidated basis, all amounts that, in conformity with GAAP, would be included under the caption “total stockholders’ equity” (or any like caption) on a consolidated balance sheet of the Company and its Subsidiaries as of such date; provided that in no event shall Consolidated Net Worth include any amounts in respect of Redeemable Stock. “Consolidated Total Capitalization” means, as of any date of determination, the sum of Consolidated Total Debt and Consolidated Net Worth and, to the extent not otherwise included, preferred stock of the Company. “Consolidated Total Debt” means, as of any date of determination, for the Company and its Subsidiaries on a consolidated basis, the sum (without duplication) of all Indebtedness of the Company and of each of its Subsidiaries (other than the Company’s guarantee of any debt obligation of Ohio Valley Electric Corporation, an electric generating company in which the Company holds a 4.9% equity interest).

B-3 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise; and the terms “Controlled” and “Controlling” shall have meanings correlative to the foregoing. “Controlled Entity” means (a) any of the Subsidiaries of the Company and any of their or the Company’s respective Controlled Affiliates and (b) if the Company has a parent company, such parent company and its Controlled Affiliates. “Credit Agreement” means the Amended and Restated Credit Agreement dated as of June 19, 2019, among the Company, PNC Bank, National Association, as administrative agent, swing line lender and an L/C issuer, and the other banks and lenders party thereto, including any renewals, extensions, amendments, supplements, restatements, replacements or refinancing thereof. “Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default. “Default Rate” means that rate of interest per annum that is the greater of (i) 2% above the rate of interest stated in the Bonds or (ii) 2% over the rate of interest publicly announced by Bank of America, N.A. in New York, New York as its “base” or “prime” rate; provided, however, in no event with the rate of interest on a Bond, including any Default Rate, be greater than the maximum per annum interest rate permitted by applicable law. “Discounted Value” is defined in Section 8.6. “Disclosure Documents” is defined in Section 5.3. “EDGAR” means the SEC’s Electronic Data Gathering, Analysis and Retrieval System or any successor SEC electronic filing system for such purposes. “Electronic Delivery” is defined in Section 7.1(a). “Environmental Laws” means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including but not limited to those related to Hazardous Materials. “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. “ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as a single employer together with the Company under Section 414 of the Code. “Event of Default” is defined in Section 11.

B-4 “Exchange Act” means the Securities Exchange Act of 1934, as amended. “Fifty-Third Supplement” is defined in Section 1.1. “Financing Agreements” means this Agreement, the Indenture (including without limitation the Fifty-Third Supplement) and each Bond. “GAAP” means generally accepted accounting principles as in effect from time to time in the United States of America. “Governmental Authority” means: (a) the government of (i) the United States of America or any State or other political subdivision thereof, or (ii) any other jurisdiction in which the Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or (b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government. “Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien). The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. “Hazardous Material” means any and all pollutants, toxic or hazardous wastes that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation,

B-5 transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any applicable Environmental Law including, but not limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances. “Holder” means, with respect to any Bond, the Person in whose name such Bond is registered in the register maintained by the Company pursuant to Section 6 of Article Two of the Indenture, provided, however, that if such Person is a nominee, then for the purposes of Sections 7, 12, 16.2 and 17 and any related definitions in this Schedule B, “Holder” shall mean the beneficial owner of such Bond whose name and address appears in such register. “Indebtedness” means, as to any Person at a particular time, without duplication, all of the following: (a) all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments; (b) all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial) and bankers’ acceptances; (c) all obligations of such Person to pay the deferred purchase price of capital assets or services that in accordance with GAAP would be shown on the liability side of the balance sheet of such Person; (d) indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements) whether or not such indebtedness shall have been assumed by such Person or is limited in recourse; (e) capital leases and Synthetic Lease Obligations; (f) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Redeemable Stock in such Person, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; (g) the full outstanding balance of trade receivables, notes or other instruments sold with full recourse (and the portion thereof subject to potential recourse, if sold with limited recourse), other than in any such case thereof sold solely for purposes of collection of delinquent accounts; and (h) all Guarantees of such Person in respect of any of the foregoing. For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited

B-6 liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person and shall exclude trade payables and other similar accrued expenses arising in the ordinary course of business, obligations in respect of insurance policies or performance or surety bonds that themselves are not guarantees of Indebtedness (or drafts, acceptances or similar instruments evidencing the same or obligations in respect of letters of credit supporting the payment of the same). The amount of any capital lease or Synthetic Lease Obligation as of any date shall be deemed to be the amount of Attributable Indebtedness in respect thereof as of such date. “Indenture” is defined in Section 1.1. “INHAM Exemption” is defined in Section 6.2(e). “Institutional Investor” means (a) any Purchaser of a Bond, (b) any Holder of a Bond holding (together with one or more of its affiliates) more than 1% of the aggregate principal amount of the Bonds then outstanding, (c) a bank, trust company, savings and loan association or other financial institution, a pension plan, an investment company, an insurance company, a broker or dealer, or another similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any Holder of a Bond. “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing). “Make-Whole Amount” is defined in Section 8.6. “Material” means material in relation to the business, operations, affairs, financial condition, assets, properties or prospects of the Company and its Subsidiaries taken as a whole. “Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole, (b) the ability of the Company to perform its obligations under this Agreement, the Bonds or the Indenture or (c) the validity or enforceability of any Financing Agreement. “Material Credit Facility” means, as to the Company and its Subsidiaries, (a) the Credit Agreement; and (b) any other agreement(s) creating or evidencing indebtedness for borrowed money entered into by the Company or any Subsidiary, or in respect of which the Company or any Subsidiary is an obligor or otherwise provides a guarantee or other credit support in a principal amount outstanding or available for borrowing equal to or greater than $50,000,000 (or the equivalent of such amount in the relevant currency of payment). “Maturity Date” means July 31, 2040.

B-7 “Mortgaged and Pledged Property” means “the mortgaged and pledged property” as defined in the Indenture. “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in Section 4001(a)(3) of ERISA). “NAIC” means the National Association of Insurance Commissioners or any successor thereto. “NAIC Annual Statement” is defined in Section 6.2(a). “OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury. “OFAC Sanctions Program” means any economic or trade sanction that OFAC is responsible for administering and enforcing. A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx. “Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Company whose responsibilities extend to the subject matter of such certificate. “Original Indenture” is defined in Section 1.1. “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto. “Permitted Liens” means “excepted encumbrances” as such term is defined in the Indenture. “Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity or Governmental Authority. “Plan” means an “employee benefit plan” (as defined in Section 3(3) of ERISA) subject to Title IV of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate has any liability. “Preferred Stock” means any class of capital stock of a Person that is preferred over any other class of capital stock (or similar equity interests) of such Person as to the payment of dividends or the payment of any amount upon liquidation or dissolution of such Person. “property” or “properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate. “PTE” is defined in Section 6.2(a).

B-8 “Public Order” means the Finding and Order of the Public Utilities Commission of Ohio, Case No. 20-838-EL-AIS, dated May 20, 2020. “Purchaser” is defined in the first paragraph of this Agreement. “QPAM Exemption” is defined in Section 6.2(d). “Redeemable Stock” means, with respect to any Person, any equity interests of such Person that (a) is by its term subject to mandatory redemption, in whole or in part, pursuant to a sinking fund, scheduled redemption or similar provisions, at any time prior to the Maturity Date, or (b) otherwise required to be repurchased or retired on a scheduled date or dates, upon the occurrence of any event or circumstance, at the option of the holder or holders thereof, or otherwise, at any time prior to the Maturity Date, other than any such repurchase or retirement occasioned by a “change of control” or similar event. “Reinvestment Yield” is defined in Section 8.6. “Related Fund” means, with respect to any Holder of a Bond, any fund or entity that (a) invests in securities or bank loans, and (b) is advised or managed by such Holder, the same investment advisor as such Holder or by an affiliate of such Holder or such investment advisor. “Remaining Average Life” is defined in Section 8.6. “Remaining Scheduled Payments” is defined in Section 8.6. “Required Holders” means, at any time, the Holders of more than 50% in principal amount of the Bonds at the time outstanding (exclusive of Bonds then owned by the Company or any of its Affiliates). “Responsible Officer” means any Senior Financial Officer and any other officer of the Company with responsibility for the administration of the relevant portion of this Agreement. “SEC” means the Securities and Exchange Commission of the United States of America, or any successor thereto. “Securities” means all bonds issued under and secured by the Indenture. “Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. “Senior Financial Officer” means the principal financial officer, the treasurer or assistant treasurer of the Company. “Settlement Date” is defined in Section 8.6. “Source” is defined in Section 6.2.

B-9 “State Sanctions List” means a list that is adopted by any state Governmental Authority within the United States of America pertaining to Persons that engage in investment or other commercial activities in Iran or any other country that is a target of economic sanctions imposed under U.S. Economic Sanctions Laws. “Subsidiary” means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries (unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company. “SVO” means the Securities Valuation Office of the NAIC or any successor to such Office. “Synthetic Lease Obligation” means the monetary obligation of a Person under any lease (a) that is accounted for by the lessee as an operating lease and (b) under which the lessee is intended to be the “owner” of the leased property for Federal income tax purposes. “Trustee” is defined in Section 1.1 and shall include any successor and assigns thereto in accordance with Article Sixteen of the Indenture. “UCC” means the Uniform Commercial Code as enacted and in effect from time to time in the state whose laws are treated as applying to the Mortgaged and Pledged Property. “UCC Financing Statements” means any financing statements required or permitted to be filed in accordance with the UCC. “USA PATRIOT Act” means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect. “U.S. Economic Sanctions Laws” means those laws, executive orders, enabling legislation or regulations administered and enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act, each as amended from time to time, and any other OFAC Sanctions Program.

SCHEDULE 4.11 (to Bond Purchase Agreement) SCHEDULE 4.11 COLLATERAL FILINGS Document Counties/Office Where Filed and Recorded Fifty-Third Supplement dated as of July 1, 2020 Adams Auglaize Brown Butler Champaign Clark Clinton Darke Delaware Fayette Greene Hardin Highland Logan Madison Mercer Miami Montgomery Pickaway Preble Ross Shelby Union Van Wert Warren

Schedule 5.5 (to Bond Purchase Agreement) SCHEDULE 5.5 FINANCIAL STATEMENTS Audited Annual Reports of the Company for the fiscal years ended December 31, 2019, December 31, 2018 and December 31, 2017.

Schedule 5.15(c) (to Bond Purchase Agreement) SCHEDULE 5.15(C) DEBT INSTRUMENTS None.

Exhibit A (to Bond Purchase Agreement) EXHIBIT A FORM OF FIFTY-THIRD SUPPLEMENTAL INDENTURE

Exhibit 4.4(a) (to Bond Purchase Agreement) FORM OF OPINION OF SPECIAL COUNSEL TO THE COMPANY MATTERS TO BE COVERED IN OPINION OF SPECIAL COUNSEL TO THE COMPANY [SEE ATTACHED]

New York Northern California Washington DC São Paulo London Paris Madrid Tokyo Beijing Hong Kong Davis Polk & Wardwell LLP 450 Lexington Avenue New York, NY 10017 212 450 4000 tel 212 701 5800 fax #93327736v6 July 31, 2020 To each of the Purchasers listed in Schedule I hereto Ladies and Gentlemen: We have acted as special counsel for The Dayton Power and Light Company, an Ohio corporation (the “Company”), in connection with the Bond Purchase Agreement dated July 31, 2020 (the “Bond Purchase Agreement”) with you and the other several Purchasers named in Schedule A thereto (the “Purchasers”) under which you and such other Purchasers have severally agreed to purchase from the Company $140,000,000 aggregate principal amount of its First Mortgage Bonds, 3.20% Series due 2040 (the “Notes”). The Notes are to be issued pursuant to the provisions of the First and Refunding Mortgage dated as of October 1, 1935, (the “Base Mortgage and Deed of Trust”) between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), as heretofore amended and supplemented, and as further amended and supplemented by a Fifty-Third Supplemental Indenture dated as of July 1, 2020 (the “Supplemental Indenture”) between the Company and the Trustee (as so amended and supplemented, the “Mortgage and Deed of Trust”). We have examined originals or copies of such documents, corporate records, certificates of public officials and other instruments as we have deemed necessary or advisable for the purpose of rendering this opinion. In rendering the opinions expressed herein, we have, without independent inquiry or investigation, assumed that (i) all documents submitted to us as originals are authentic and complete, (ii) all documents submitted to us as copies conform to authentic, complete originals, (iii) all signatures on all documents that we reviewed are genuine, (iv) all natural persons executing documents had and have the legal capacity to do so, (v) all statements in certificates of public officials and officers of the Company that we reviewed were and are accurate and (vi) all representations made by the Company as to matters of fact in the documents that we reviewed were and are accurate.

To each of the Purchasers listed in Schedule I hereto 2 July 31, 2020 #93327736v6 Based upon the foregoing, and subject to the additional assumptions and qualifications set forth below, we are of the opinion that: 1. Assuming the due authorization of the Bond Purchase Agreement and the Notes by the Company, the Bond Purchase Agreement and the Notes, when executed and authenticated in accordance with the provisions of the Mortgage Deed and Trust and delivered to and paid for by the Purchasers pursuant to the Bond Purchase Agreement, will be valid and binding obligations of the Company, enforceable in accordance with their respective terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts of reasonableness and equitable principles of general applicability, and will be entitled to the benefits of the Mortgage Deed and Trust pursuant to which such Notes are to be issued, provided that we express no opinion as to the (x) the enforceability of any waiver of rights under any usury or stay law, (y) the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law on the conclusions expressed above or (z) the validity, legally binding effect or enforceability of any provision that permits holders to collect any portion of stated principal amount upon acceleration of the Notes to the extent determined to constitute unearned interest. 2. It is not necessary in connection with the offer, sale and delivery of the Notes to the Purchasers under the Bond Purchase Agreement to register the Notes under the Securities Act of 1933, as amended, or to qualify the Mortgage and Deed of Trust under the Trust Indenture Act of 1939, as amended, it being understood that no opinion is expressed as to any subsequent offer or resale of any Note. 3. The Company is not, and after giving effect to the offering and sale of the Notes and the application of the proceeds thereof as described in the Bond Purchase Agreement will not be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended. 4. The execution and delivery by the Company of the Notes and the Bond Purchase Agreement (collectively, the “Documents”) and the performance by the Company of its obligations under the Documents, will not contravene any provision of the statutory laws of the State of New York or any federal law of the United States of America that in our experience is normally applicable to general business corporations in relation to transactions of the type contemplated by the Bond Purchase Agreement, provided that we express no opinion as to federal or state securities laws. 5. No consent, approval, authorization, or order of, or qualification with, any governmental body or agency under the laws of the State of New York or any federal law of the United States of America that in our experience is normally applicable to general business corporations in relation to transactions of the type contemplated by the Bond Purchase Agreement is required for the execution, delivery and performance by the Company of its obligations under the Bond

To each of the Purchasers listed in Schedule I hereto 3 July 31, 2020 #93327736v6 Purchase Agreement, except such as may be required under federal or state securities or Blue Sky laws as to which we express no opinion in this paragraph. 6. The issuance of the Notes on the date hereof and the intended use of the proceeds of the sale of the Notes in accordance with the provisions of the Bond Purchase Agreement do not violate Regulation T, U or X of the Board of Governors of the United States Federal Reserve System. We note that the Notes and the Mortgage and Deed of Trust are not stated by their terms to be governed by New York law. We express no opinion as to whether they are governed by New York law, and for purposes of our opinions we have assumed that New York law governs. In rendering the opinions set forth in paragraph (2) above, we have assumed the accuracy of, and compliance with, the representations, warranties and covenants of the Company and the Purchasers in the Bond Purchase Agreement relating to the offering and the initial sale of the Notes. We express no opinion as to the creation, attachment, perfection or priority of any security interest. We are members of the Bar of the State of New York, and the foregoing opinion is limited to the laws of the State of New York and the federal laws of the United States of America, except that we express no opinion as to any law, rule or regulation that is applicable to the Company, the Bond Purchase Agreement or such transactions solely because such law, rule or regulation is part of a regulatory regime applicable to any party to the Bond Purchase Agreement or any of its affiliates due to the specific assets or business of such party or such affiliate. This letter is delivered solely to you and your successors and assigns and transferees of the Notes in connection with the Bond Purchase Agreement. This letter may not be relied upon by you or any such person for any other purpose or relied upon by any other person or furnished to any other person without our prior written consent, provided that a copy of this opinion may be furnished to (without reliance thereon by any such person): (i) the National Association of Insurance Commissioners or any other governmental or regulatory authority having authority over you, (ii) any prospective transferee of the Notes, (iii) your affiliates, advisers, accountants and auditors, and (iv) any other person pursuant to order of any governmental authority, legal process or as otherwise required by law. Very truly yours,

To each of the Purchasers listed in Schedule I hereto 4 July 31, 2020 #93327736v6 13521592v1 Schedule I Schedule of Purchasers The Prudential Insurance Company of America Prudential Legacy Insurance Company of New Jersey Pensionskasse Des Bundes PUBLICA Prudential Term Reinsurance Company Pruco Life Insurance Company

Porter Wright Morris & Arthur LLP One South Main Street Suite 1600 Dayton, Ohio 45402-2028 Toll free: 800-533-4434 July 31, 2020 The Purchasers named in Schedule A attached hereto (the “Purchasers”) Ladies and Gentlemen: We have acted as special Ohio counsel for The Dayton Power and Light Company, an Ohio corporation (the “Company”), in connection with certain matters relating to the issuance of the Company’s $140,000,000 aggregate principal amount of its First Mortgage Bonds 3.20% Series due 2040 (the “Bonds”). This opinion is provided at the request of the Company pursuant to Section 4.4 of the Bond Purchase Agreement dated July 31, 2020 by and between the Company and the Purchasers (the “Purchase Agreement”). Unless otherwise indicated, capitalized terms used herein, but not otherwise defined herein, shall have the respective meanings set forth in the Purchase Agreement. We advise you that we have examined and are familiar with the documents relating to the Bonds consisting of the following: 1. An executed copy of the First and Refunding Mortgage dated as of October 1, 1935 (the “Mortgage”), from the Company to The Bank of New York Mellon (formerly The Bank of New York (formerly Irving Trust Company)), as trustee (the “Trustee”); 2. The composite version of the Mortgage, in the form filed with the U.S. Securities and Exchange Commission as Exhibit 4(a) to the Company’s Annual Report on Form 10-K for the year ended December 31, 1985 (the “Composite Indenture”), which represents it is the Mortgage as amended and supplemented by the First Supplemental Indenture, dated as of March 1, 1937, the Second Supplemental Indenture, dated as of January 1, 1940, the Third Supplemental Indenture, dated as of October 1, 1945, the Fourth Supplemental Indenture, dated as of January 1, 1948, the Fifth Supplemental Indenture, dated as of December 1, 1948, the Sixth Supplemental Indenture, dated as of February 1, 1952, the Seventh Supplemental Indenture, dated as of September 1, 1954, the Eighth Supplemental Indenture, dated as of November 1, 1957, the Ninth Supplemental Indenture, dated as of March 1, 1960, the Tenth Supplemental Indenture, dated as of June 1, 1963, an Eleventh Supplemental Indenture, dated as of May 1, 1967, the Twelfth Supplemental Indenture, dated as of June 15, 1968, the Thirteenth Supplemental Indenture dated as of October 1, 1969, the Fourteenth Supplemental Indenture, dated as of June 1, 1970, the Fifteenth Supplemental Indenture, dated as of August 1, 1971, the Sixteenth Supplemental Indenture, dated as of October 3, 1972, the Seventeenth Supplemental Indenture, dated as of November 1, 1973, the Eighteenth Supplemental Indenture, dated as of October 1, 1974, the Nineteenth Supplemental Indenture, dated as of August 1, 1975, the Twentieth Supplemental Indenture, dated as of November 15, 1976, the Twenty-First Supplemental Indenture, dated as of April 15, 1977, the Twenty-Second Supplemental Indenture, dated as of October 15, 1977, the Twenty-Third Supplemental Indenture, dated as of April 1, 1978, the Twenty-Fourth Supplemental Indenture, dated as of November 1, 1978, the Twenty-Fifth Supplemental Indenture, dated as of August 1, 1979, the Twenty-Sixth Supplemental Indenture, dated as of December 1, 1979, the Twenty-Seventh

July 31, 2020 Page 2 Supplemental Indenture, dated as of February 1, 1981, the Twenty-Eighth Supplemental Indenture, dated as of February 18, 1981 and the Twenty-Ninth Supplemental Indenture, dated as of September 1, 1981 (such First through Twenty-Ninth Supplemental Indentures, being hereinafter referred to as the “Pre-1982 Supplemental Indentures”); 3. A copy of each of the Thirtieth Supplemental Indenture, dated as of March 1, 1982, the Thirty-first Supplemental Indenture, dated as of November 1, 1982, the Thirty-Second Supplemental Indenture, dated as of November 1, 1982, the Thirty-Third Supplemental Indenture, dated as of December 1, 1985, Thirty-Fourth Supplemental Indenture, dated as of April 1, 1986, the Thirty-Fifth Supplemental Indenture, dated as of December 1, 1986, the Thirty-Sixth Supplemental Indenture, dated as of August 15, 1992, the Thirty-Seventh Supplemental Indenture, dated as of November 15, 1992, the Thirty-Eighth Supplemental Indenture, dated as of November 15, 1992, the Thirty-Ninth Supplemental Indenture, dated as of January 15, 1993, the Fortieth Supplemental Indenture, dated as of February 15, 1993, the Forty-First Supplemental Indenture, dated as of February 1, 1999, the Forty-Second Supplemental Indenture, dated as of September 1, 2003, the Forty-Third Supplemental Indenture dated as of August 1, 2005, the Forty-Fourth Supplemental Indenture, dated as of September 1, 2006, the Forty-Fifth Supplemental Indenture, dated as of November 1, 2007, the Forty-Sixth Supplemental Indenture, dated as of December 1, 2008, the Forty-Seventh Supplemental Indenture, dated September 1, 2013, the Forty-Eighth Supplemental Indenture, dated as of August 1, 2015, the Forty-Ninth Supplemental Indenture, dated as of August 1, 2015, the Fiftieth Supplemental Indenture, dated as of August 1, 2016, the Fifty-First Supplemental Indenture, dated as of September 29, 2017, and the Fifty- Second Supplemental Indenture, dated as of June 6, 2019, in each case between the Company and the Trustee (the “Post-1981 Supplemental Indentures” together with the Pre-1982 Supplemental Indentures being referred to as the “Prior Supplemental Indentures”) and the Prior Supplemental Indentures together with the Mortgage being referred to as the “Indenture”); 4. An executed copy of the Fifty-Third Supplemental Indenture, dated July 1, 2020, between the Company and the Trustee (the “Fifty-Third Supplemental Indenture” or the “Supplemental Indenture”); 5. An executed copy of the Bonds; 6. An executed copy of the Bond Purchase Agreement; 7. Certificates representing the Bonds executed by the Company; 8. The Application and Letter of Request of the Company (and all exhibits, schedules and attachments thereto) dated July 31, 2020 to the Trustee under the Mortgage relating to the execution and delivery of the Supplemental Indenture and authentication and delivery of the Bonds (the “Application”); 9. A certified copy of the Amended Articles of Incorporation of the Company as amended and as on file in the office of the Secretary of the State of Ohio on July 30, 2020 (the “Amended Articles of Incorporation”); 10. A copy of the resolutions duly adopted by the Board of Directors by unanimous written consent in lieu of a meeting dated July 27, 2020 as certified by the Secretary of the Company relating to among other things (i) the issue and sale of the Bonds and requesting the Trustee to authenticate and deliver the Bonds as required by Article Six of the Indenture, attached as Annex A to the Application and (ii) the amendment of the Indenture by the Supplemental Indenture (the “Resolutions”); 11. A copy of the Amended Regulations of the Company dated November 28, 2011 as presently in effect as certified by the Secretary of the Company (the “Regulations”);

July 31, 2020 Page 3 12. The Treasurer’s Certificate dated July 31, 2020, as required by Article Six of the Indenture, attached as Annex B to the Application (the “Treasurer’s Certificate”); 13. The Further Treasurer’s Certificate dated July 31, 2020, as required by Article Six of the Indenture, attached as Annex C to the Application (the “Further Treasurer’s Certificate”); 14. An Opinion of Counsel (as such term is defined in Section 3 of Article One of the Indenture, an “Opinion of Counsel”), rendered by Davis Polk & Wardwell LLP, dated July 31, 2020, relating, among other things, to the execution and delivery of the Supplemental Indenture, the authorization of the issuance of the Bonds and the authentication and delivery of the Bonds, dated as of July 31, 2020, as required by Article Six of the Indenture, and the Opinion of the General Counsel of the Company date July 31, 2020, relating, among other things, to the authentication and delivery of the Bonds, as required by Article Six of the Indenture, and to certain authority and compliance matters (collectively, the “Opinions”); 15. Finding and Order issued by the Public Utilities Commission of Ohio in Case No. 20-838- EL-AIS (the “PUCO Order”) authorizing the Company to issue the Bonds; 16. The Secretary’s Certificate executed on July 31, 2020 by Judi L. Sobecki, Vice President, General Counsel and Secretary of the Company (the “Officer’s Certificate”); and 17. A certificate of good standing (“Certificate of Good Standing”) for the Company dated July 29, 2020 issued by the Office of the Ohio Secretary of State. We have, with your consent, relied as to matters of fact upon the statements of the Company and others set forth in the documents 1, 2, 3, 4, 6 and 8 listed above (collectively, the “Transaction Documents”), including without limitation factual statements contained in certificates of officers of the Company (the “Certificates”), assuming all statements contained therein to be accurate. In connection with this opinion we have not made (nor do we acknowledge any duty to make) any investigation of the financial condition of the Company. In rendering this opinion, we have assumed, with your consent, without independent verification or investigation: (A) The legal capacity of natural persons, the genuineness of all signatures on documents submitted to us, the conformity to originals of all documents submitted to us as copies (whether or not executed, conformed or otherwise), and the authenticity of all documents; (B) That each of the Transaction Documents constitutes the legal, valid and binding obligation of each of the parties thereto other than the Company and is enforceable against such other parties in accordance with its terms; (C) That all parties, other than the Company, have full power and authority to execute and deliver the Transaction Documents; (D) That there has not been any mutual mistake of fact or misunderstanding, or any fraud, duress, or undue influence; (E) That all parties have complied with any requirements of good faith, fair dealing or conscionability; (F) That except for the Mortgage and Prior Supplemental Indentures there are no agreements or understandings among the parties other than the Transaction Documents,

July 31, 2020 Page 4 and no prior course of dealing that would define, supplement or qualify the Transaction Documents; (G) Except to the extent expressly stated in the opinions contained herein, the opinions stated herein are limited to the agreements specifically identified without regard to any agreement or other document referenced in such agreement; (H) That all documents and records obtained from governmental authorities or officials are accurate, complete and authentic; (I) That to the extent no governing law is referred to, or the laws of a jurisdiction other than Ohio apply as the governing law for the Transaction Documents, the laws of Ohio apply and that the laws of Ohio are consistent with and the same as the governing law referred to in the Transaction Documents; (J) The Company holds requisite title and rights to the property identified in the description of such as part of the Supplemental Indenture; (K) Under Ohio law, the Mortgage was properly recorded and the description of such properties set forth therein is adequate to constitute the Mortgage as a lien thereon; (L) With the exception of the laws of the State of Ohio and with respect to opinion paragraph 3, we express no opinion as to any law, rule or regulation that is applicable solely because such law, rule or regulation is part of a regulatory requirement applicable to the Company and, subject to the foregoing exceptions, specifically we have assumed that the Company has obtained all necessary federal and local government licenses or approvals for the execution, delivery and performance by the Company of the Supplemental Indenture and the Bonds; and (M) (i) immediately prior to the effectiveness of the Supplemental Indenture, each of the Mortgage and each Prior Supplemental Indenture constitutes the valid and binding obligation of each party thereto, enforceable against each such party in accordance with its terms, (ii) the Composite Indenture, as of its date, reflected all amendments and supplements to the Mortgage and (iii) the Post-1981 Supplemental Indentures are the only amendments and supplements to the First Mortgage subsequent to the date of the Composite Indenture. Based on the foregoing, and subject to the qualifications, assumptions and limitations contained in this opinion letter, we are of the opinion that: 1. The Company has been duly incorporated and is an existing corporation in good standing under the laws of the State of Ohio, with all requisite corporate power and authority to own its properties and conduct its business. 2. The Bonds have been duly authorized, executed, issued and delivered by the Company, and constitute valid and legally binding obligations of the Company enforceable against the Company in accordance with their terms, except as may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, moratorium, reorganization, or similar laws affecting mortgagees’ and other creditors’ rights and by general equitable principles (whether considered in a proceeding in equity or at law). 3. All consents, approvals, authorizations or orders of, or filings with, any Ohio governmental agency or body or any court in Ohio, including the Public Utilities Commission of Ohio, which issued the PUCO Order, which order is in full force and effect and such order is not subject to appeal or rehearing by the Company or any other person, firm, or corporation, required for the execution

July 31, 2020 Page 5 and delivery of the Purchase Agreement, Fifty-Third Supplemental Indenture for the consummation of the transactions contemplated by the Purchase Agreement, the Mortgage, the Fifty-Third Supplemental Indenture and the Bonds in connection with the issuance and sale of the Bonds by the Company have been obtained. 4. The execution, delivery and performance of the Supplemental Indenture, the Purchase Agreement and the issuance and sale of the Bonds and compliance with the terms and provisions thereof by the Company, do not and will not result in a breach or violation of (a) any of the terms and provisions of, or conflict with or constitute a default under any Ohio statute, rule, regulation or order that in our experience is normally applicable to general business corporations in relation to the transactions of the type contemplated by the Supplemental Indenture, (b) of any governmental agency or body or any court in Ohio having jurisdiction over the Company or any of its properties, (c) the Amended Articles of Incorporation or the Regulations, and the Company has full corporate power and authority to authorize, issue and sell the Bonds as contemplated by the Purchase Agreement. 5. The Supplemental Indenture has been duly authorized, executed and delivered by the Company and the Supplemental Indenture and the Indenture, constitute a valid and binding agreement of the Company enforceable against the Company in accordance with the terms thereof, except as may be limited by (a) bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium, reorganization or similar federal or state laws or judicial decisions of general application relating to the rights of creditors; (b) as to rights of acceleration, the appointment of a receiver, specific performance and other legal remedies, by general principles of equity, including the defenses of unconscionability, ambiguity, and economic duress, whether asserted in equitable or in legal actions and except as to rights to indemnification and contribution may be limited by federal or state securities law or public policy and (c) general principles of interpretation and rules of construction of contracts. 6. The Purchase Agreement has been duly authorized, executed and delivered by the Company. 7. The Supplemental Indenture, which is in proper form for recordation, to the extent duly recorded in all counties in the State of Ohio in which the existing or after acquired property as specifically described therein is located, is effective to secure all obligations under the Supplemental Indenture and the Bonds (including, principal, interest and Make-Whole Amount thereon) and to create the lien which is perfected based on the validly recorded Indenture as intended to be created thereby in accordance with Ohio Revised Code Section 1701.66, except as may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, moratorium, reorganization, or similar laws affecting creditors’ rights and by general equitable principles (whether considered in a proceeding in equity or at law) and no further recordation or filing in the State of Ohio is necessary to perfect such lien and make such lien effective as to and enforceable against third parties. 8. No taxes or other charges, including without limitation, intangible, documentary, stamp, mortgage, transfer or recording taxes or similar charges are payable to the State of Ohio, or to any governmental authority or regulatory body located therein, on account of the execution or delivery of the Supplemental Indenture or the Bonds, or the creation of the liens and security interests thereunder, or the filing, recordation or registration of the Supplemental Indenture, except for nominal filing or recording fees. Despite any other express or implied statement in this letter, each of the opinions expressed in this letter is subject to the following further qualifications, whether or not such opinions refer to such qualifications: (i) The opinions expressed herein may be limited by: (a) bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or similar federal or state laws or judicial decisions of general application relating to the rights of creditors; (b) as to rights of acceleration, the appointment of a receiver, specific performance and other remedies, by general principles of equity, including the defenses

July 31, 2020 Page 6 of unconscionability, ambiguity, and economic duress, whether asserted in equitable or in legal actions; and (c) general principles of interpretation and rules of construction of contracts. (ii) Certain of the remedial provisions of the Transaction Documents may be limited or rendered unenforceable by laws governing the same, for example: (a) certain provisions relating to indemnification and provisions for the recovery of expenses in connection with the enforcement of remedies, including, among others, legal fees and expenses, may not be enforceable; (b) provisions resulting in a waiver by a party of certain rights may be limited by legal and equitable principles and public policy at the time in effect; (c) the availability of specific performance, injunctive relief or other equitable remedies and the appointment of a receiver are subject to the discretion of the court before which any proceeding therefor may be brought; and (d) provisions permitting any party to act as another party’s attorney-in-fact or purporting to create or permit a right of set off with respect to obligations that may be contingent or not yet matured may not be enforceable. (iii) We express no opinion as to whether a court would limit the exercise or enforcement of rights or remedies under the Transaction Documents (a) in the event of any default by any person under the Transaction Documents or any related agreement or instrument if it is determined that such default is not material or if such exercise or enforcement is not reasonably necessary for a creditor’s protection, or (b) if the exercise or enforcement thereof under the circumstances would violate an implied covenant of good faith and fair dealing. (iv) No opinion is expressed with respect to securities laws or as to filings or registrations with the Securities and Exchange Commission or state securities authorities. (v) Except as otherwise provided herein, no opinion is expressed with respect to: (a) the right, title or interest of any person to any property, real or personal, or the existence of or freedom from any security interest, lien, charge or encumbrance thereon; (b) the creation, attachment, enforceability or perfection of any lien on or security interest in any real or personal property; (c) the priority of any lien on or security interest in any real or personal property or the accuracy or sufficiency of the description thereof in any of the Transaction Documents; (d) whether any financing statement, mortgage or other instrument or document is valid or has been duly filed or recorded; and (e) the enforceability of any provisions of the Transaction Documents which purport to (1) prospectively release a party with respect to a liability or (2) require the parties to negotiate in good faith or to mutually agree on any terms and conditions. (vi) Except as otherwise expressed herein, no opinion is expressed regarding the enforceability of: (a) self-help provisions (including provisions granting a power of attorney or provisions authorizing the use of force or a breach of peace in enforcing rights or remedies), (b) any and all provisions permitting a party to take possession of, or operate or manage, any real property collateral, (c) provisions which purport to establish evidentiary standards, (d) provisions relating to waivers of rights or remedies (or the delay or omission of enforcement thereof), disclaimers, liability limitations, releases of legal or equitable rights (including the right to a jury trial), submission to the jurisdiction and venue of any court, liquidated damages (including provisions which may operate as a penalty) or the creation of rights and remedies not permitted under applicable law or contrary to public policy or (e) provisions which purport to prohibit, restrict or limit the ability of a person to transfer rights or interests in property. (vii) No opinion is expressed as to any matter that would require a financial, mathematical or accounting calculation or determination. (viii) We do not express any opinion with respect to the enforceability of any provision contained in any Transaction Documents providing any waiver, release, disclaimer or any other variation of any right or duty of any party to the extent that any such waiver, release, disclaimer or other variation is not enforceable pursuant to Ohio Revised Code Sections 1301.02(C) and 1309.602.

July 31, 2020 Page 7 (ix) Various filings and other acts may be required in connection with and at the time of exercising any rights of a mortgage holder under the Mortgage or other realization upon the collateral described in the Transaction Documents. Our opinions expressed herein do not extend to any such filing or acts. Our opinions expressed above are limited to the laws of the State of Ohio in effect on the date hereof. We express no opinion as to the law of any other jurisdiction. We express no opinion as to any local laws or ordinances or as to any environmental laws. We undertake no obligation to advise you of any facts that come to our attention after the date hereof, or any change in fact or in applicable law, or to supplement this opinion letter in any respect. The opinions in this letter are limited to the matters set forth herein, and no other opinion should be inferred beyond the matters expressly stated. This letter is intended for the information solely of the parties to whom it is addressed and their successors and assigns and transferees of the Bonds shall only be permitted to rely upon the opinion. No other person or entity is entitled to rely upon anything contained herein. Furthermore, no reproduction or further distribution of and no reference to this opinion may be made, without our prior written consent, to or for any person or entity other than: (i) the parties to whom it is addressed, (ii) the National Association of Insurance Commisioners or any other governmental or regulatory authority, (iii) any prospective transferee of the Bonds, (iv) the affiliates, advisers, accountants and auditors of the addressees, and (v) any other person pursuant to order of any governmental authority, legal process or as otherwise required by law. Very truly yours, PORTER WRIGHT MORRIS & ARTHUR LLP

July 31, 2020 Page 8 SCHEDULE A The Prudential Insurance Company of America Prudential Legacy Insurance Company of New Jersey Pensionskasse Des Bundes PUBLICA Prudential Term Reinsurance Company Pruco Life Insurance Company

EX-31.A

Exhibit 31(a)

CERTIFICATIONS

I, Kristina Lund, certify that:

1.I have reviewed this annual report on Form 10-K 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: February 28, 2022

/s/ Kristina Lund

Kristina Lund

President and Chief Executive Officer

EX-31.B

Exhibit 31(b)

CERTIFICATIONS

I, Gustavo Garavaglia, certify that:

1.I have reviewed this annual report on Form 10-K 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: February 28, 2022

/s/ Gustavo Garavaglia

Gustavo Garavaglia

Vice President and Chief Financial Officer

EX-31.C

 Exhibit 31(c)

CERTIFICATIONS

I, Kristina Lund, certify that:

1.I have reviewed this annual report on Form 10-K 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: February 28, 2022

/s/ Kristina Lund

Kristina Lund

President and Chief Executive Officer

EX-31.D

Exhibit 31(d)

CERTIFICATIONS

I, Gustavo Garavaglia, certify that:

1.I have reviewed this annual report on Form 10-K 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: February 28, 2022

/s/ Gustavo Garavaglia

Gustavo Garavaglia

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 Annual Report on Form 10-K for the period ended December 31, 2021, 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 Issuers and furnished to the Securities and Exchange Commission or its staff upon request.

Signed:

/s/ Kristina Lund

Kristina Lund

President and Chief Executive Officer

Date: February 28, 2022

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 Annual Report on Form 10-K for the period ended December 31, 2021, 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 Issuers and furnished to the Securities and Exchange Commission or its staff upon request.

Signed:

/s/ Gustavo Garavaglia

Gustavo Garavaglia

Vice President and Chief Financial Officer

Date: February 28, 2022

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 Annual Report on Form 10-K for the period ended December 31, 2021, 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 Issuers and furnished to the Securities and Exchange Commission or its staff upon request.

Signed:

/s/ Kristina Lund

Kristina Lund

President and Chief Executive Officer

Date: February 28, 2022

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 Annual Report on Form 10-K for the period ended December 31, 2021, 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 Issuers and furnished to the Securities and Exchange Commission or its staff upon request.

Signed:

/s/ Gustavo Garavaglia

Gustavo Garavaglia

Vice President and Chief Financial Officer

Date: February 28, 2022

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

Cover Document $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) shares
Entity Information [Line Items]
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2021
Document Transition Report	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Voluntary Filers	Yes
Entity Well-known Seasoned Issuer	No
Entity Registrant Name	DPL Inc.
Entity Incorporation, State or Country Code	OH
Entity File Number	1-9052
Entity Address, Address Line One	1065 Woodman Drive
Entity Address, City or Town	Dayton
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45432
City Area Code	937
Local Phone Number	259-7215
Entity Tax Identification Number	31-1163136
Document Fiscal Period Focus	FY
Entity Public Float | $	$ 0.0
Entity Central Index Key	0000787250
Amendment Flag	false
ICFR Auditor Attestation Flag	false
Entity Common Stock, Shares Outstanding	1
THE DAYTON POWER AND LIGHT COMPANY [Member]
Entity Information [Line Items]
Entity Voluntary Filers	Yes
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Registrant Name	THE DAYTON POWER AND LIGHT COMPANY
Entity Incorporation, State or Country Code	OH
Entity File Number	1-2385
Entity Address, Address Line One	1065 Woodman Drive
Entity Address, City or Town	Dayton
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45432
City Area Code	937
Local Phone Number	259-7215
Entity Tax Identification Number	31-0258470
Document Fiscal Period Focus	FY
Entity Central Index Key	0000027430
Amendment Flag	false
ICFR Auditor Attestation Flag	false
Entity Common Stock, Shares Outstanding	41,172,173

XML

Audit Information	12 Months Ended
	Dec. 31, 2021
Auditor [Line Items]
Auditor Name	Ernst & Young LLP
Auditor Location	Indianapolis, Indiana
Auditor Firm ID	42
THE DAYTON POWER AND LIGHT COMPANY [Member]
Auditor [Line Items]
Auditor Name	Ernst & Young LLP
Auditor Location	Indianapolis, Indiana
Auditor Firm ID	42

XML

Consolidated Statements of Operations - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues	$ 672.7	$ 660.5	$ 743.7
Operating costs and expenses
Net fuel cost	0.5	1.7	2.5
Utilities Operating Expense, Purchased Power	276.3	230.6	251.9
Utilities Operating Expense, Maintenance and Operations	152.4	181.7	184.2
Depreciation and amortization	76.1	73.3	72.3
Taxes, Miscellaneous	82.1	79.4	77.9
Gain (Loss) on Disposition of Business	0.0	(4.7)	0.0
Costs and Expenses	587.4	571.4	588.8
Operating Income (Loss)	85.3	89.1	154.9
Other income / (expense), net
Interest expense	(62.9)	(71.3)	(82.2)
Loss on early extinguishment of debt	0.0	(31.7)	(44.9)
Other income	0.0	2.0	3.7
Other expense, net	(62.9)	(101.0)	(123.4)
Income / (loss) from continuing operations before income tax	22.4	(11.9)	31.5
Income tax benefit from continuing operations	(0.5)	(5.5)	(20.3)
Net income / (loss) from continuing operations	22.9	(6.4)	51.8
Income / (loss) from discontinued operations before income tax	(1.0)	(0.6)	47.6
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	0.0	6.1	20.1
Income tax expense / (benefit) from discontinued operations	(0.2)	0.1	14.1
Net income / (loss) from discontinued operations	(0.8)	5.4	53.6
Net loss	22.1	(1.0)	105.4
THE DAYTON POWER AND LIGHT COMPANY [Member]
Revenues	663.7	652.1	735.4
Operating costs and expenses
Net fuel cost	0.5	1.6	2.5
Utilities Operating Expense, Purchased Power	275.1	229.4	250.6
Utilities Operating Expense, Maintenance and Operations	152.1	182.0	183.1
Depreciation and amortization	74.6	71.8	70.8
Taxes, Miscellaneous	81.9	79.1	77.7
Gain (Loss) on Disposition of Business	0.0	(4.7)	0.0
Costs and Expenses	584.2	568.6	584.7
Operating Income (Loss)	79.5	83.5	150.7
Other income / (expense), net
Interest expense	(24.2)	(24.3)	(26.0)
Other income	(2.5)	(1.1)	(0.4)
Other expense, net	(26.7)	(25.4)	(26.4)
Income / (loss) from continuing operations before income tax	52.8	58.1	124.3
Income tax benefit from continuing operations	5.7	7.0	(0.6)
Net loss	$ 47.1	$ 51.1	$ 124.9

XML

Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net income / (loss)	$ 22.1	$ (1.0)	$ 105.4
Derivative activity:
Change in derivative fair value, net of income tax benefit/(expense)		0.0	(1.0)
Reclassification of earnings, net of income tax benefit/(expense)	(0.8)	(0.9)	(1.1)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives Related to Discontinued Operations, Net of Tax	0.0	0.0	(0.4)
Total change in fair value of derivatives	(0.8)	(0.9)	(2.5)
Pension and postretirement activity:
Prior service cost for the period, net of income tax benefit/(expense)	0.0	0.0	(0.1)
Net loss for the period, net of income tax benefit/(expense)	6.4	(8.8)	(3.4)
Reclassification to earnings, net of income tax benefit/(expense)	1.9	1.0	0.2
Total change in unfunded pension obligation	8.3	(7.8)	(3.3)
Other comprehensive income / (loss)	7.5	(8.7)	(5.8)
Net comprehensive income / (loss)	29.6	(9.7)	99.6
Income tax (expense)/benefit on unrealized gains (losses) related to derivative activity	0.0	0.0	0.1
Income tax (expense)/benefit on reclassification of earnings related to derivative activity		0.2	0.1
Income tax (expense)/benefit on prior service cost related to pension and postretirement activity	0.0	0.0	0.0
Income tax (expense)/benefit on net loss related to pension and postretirement activity	(1.8)	2.6	0.8
Tax expense (benefit)	0.5	5.5	20.3
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity		(0.3)	0.0
Other comprehensive loss before reclassifications	6.4	(8.8)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives Related to Discontinued Operations, Tax	0.0	0.0	(0.4)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Pension and postretirement activity:
Other comprehensive income / (loss)	8.3	(7.8)
Other comprehensive loss before reclassifications	6.4	(8.8)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Pension and postretirement activity:
Other comprehensive income / (loss)	(0.8)	(0.9)
Other comprehensive loss before reclassifications	0.0	0.0
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Pension and postretirement activity:
Tax expense (benefit)	(0.6)	(0.3)	0.0
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Pension and postretirement activity:
Tax expense (benefit)	0.2	0.2	0.1
THE DAYTON POWER AND LIGHT COMPANY [Member]
Net income / (loss)	47.1	51.1	124.9
Derivative activity:
Change in derivative fair value, net of income tax benefit/(expense)	0.0	(0.2)	(0.8)
Reclassification of earnings, net of income tax benefit/(expense)	0.0	0.6	(0.2)
Total change in fair value of derivatives	0.0	0.4	(1.0)
Pension and postretirement activity:
Net loss for the period, net of income tax benefit/(expense)	6.4	(8.7)	(3.6)
Reclassification to earnings, net of income tax benefit/(expense)	3.9	3.1	3.0
Total change in unfunded pension obligation	10.3	(5.6)	(0.6)
Other comprehensive income / (loss)	10.3	(5.2)	(1.6)
Net comprehensive income / (loss)	57.4	45.9	123.3
Income tax (expense)/benefit on unrealized gains (losses) related to derivative activity	0.0	(0.2)	0.3
Income tax (expense)/benefit on reclassification of earnings related to derivative activity		0.8	0.0
Income tax (expense)/benefit on net loss related to pension and postretirement activity	(1.8)	2.6	0.6
Tax expense (benefit)	(5.7)	(7.0)	0.6
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity		(0.9)	(0.5)
Other comprehensive loss before reclassifications		(8.9)
THE DAYTON POWER AND LIGHT COMPANY [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Pension and postretirement activity:
Other comprehensive income / (loss)	10.3	(5.6)
Other comprehensive loss before reclassifications	6.4	(8.7)
THE DAYTON POWER AND LIGHT COMPANY [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Pension and postretirement activity:
Other comprehensive income / (loss)	0.0	0.4
Other comprehensive loss before reclassifications	0.0	(0.2)
THE DAYTON POWER AND LIGHT COMPANY [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Pension and postretirement activity:
Tax expense (benefit)	(1.1)	(0.9)	(0.5)
THE DAYTON POWER AND LIGHT COMPANY [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Pension and postretirement activity:
Tax expense (benefit)	$ 0.0	$ 0.8	$ 0.0

XML

Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income tax (expense)/benefit on unrealized gains (losses) related to derivative activity	$ 0.0	$ 0.0	$ 0.1
Income tax (expense)/benefit on reclassification of earnings related to derivative activity		0.2	0.1
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives Related to Discontinued Operations, Tax	0.0	0.0	(0.4)
Income tax (expense)/benefit on prior service cost related to pension and postretirement activity	0.0	0.0	0.0
Income tax (expense)/benefit on net loss related to pension and postretirement activity	(1.8)	2.6	0.8
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity		(0.3)	0.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Income tax (expense)/benefit on unrealized gains (losses) related to derivative activity	0.0	(0.2)	0.3
Income tax (expense)/benefit on reclassification of earnings related to derivative activity		0.8	0.0
Income tax (expense)/benefit on net loss related to pension and postretirement activity	$ (1.8)	2.6	0.6
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity		$ (0.9)	$ (0.5)

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 26.6	$ 25.4
Restricted cash	0.1	0.1
Accounts receivable, net	71.5	69.7
Inventories	14.4	8.8
Taxes applicable to subsequent years	83.1	78.0
Regulatory Assets, Current	24.5	27.5
Income Taxes Receivable, Current	2.7	17.9
Prepayments and other current assets	7.6	5.9
Total current assets	230.4	233.2
Property, plant and equipment:
Property, plant & equipment	1,990.4	1,839.3
Less: Accumulated depreciation and amortization	(464.0)	(415.7)
Property, plant and equipment, net of depreciation	1,526.4	1,423.6
Construction work in process	174.4	141.7
Total net property, plant & equipment	1,700.8	1,565.3
Other non-current assets:
Regulatory Assets, Noncurrent	176.8	193.6
Intangible assets, net of amortization	33.7	19.3
Other non-current assets	30.1	24.6
Total other non-current assets	240.6	237.5
Total assets	2,171.8	2,036.0
LIABILITIES AND SHAREHOLDER'S EQUITY
Current portion - long-term debt	65.2	100.2
Accounts payable	111.0	84.5
Accrued interest	15.3	16.0
Accrued taxes	85.1	83.0
Customer security deposits	15.0	19.4
Regulatory Liability, Current	14.6	18.0
Other current liabilities	17.1	21.0
Total current liabilities	323.3	342.1
Non-current liabilities:
Long-term debt	1,395.3	1,393.4
Deferred taxes	187.9	177.2
Taxes payable	83.6	80.4
Regulatory Liability, Noncurrent	229.3	218.3
Pension, retiree and other benefits	62.3	93.9
Other deferred credits	11.5	14.2
Total non-current liabilities	1,969.9	1,977.4
Commitments and contingencies
Common stock, shares outstanding	1	1
Common stock, shares authorized	1,500	1,500
Common shareholder's equity:
Common stock	$ 0.0	$ 0.0
Other paid-in capital	2,601.3	2,468.8
Accumulated other comprehensive income/(loss)	(4.8)	(12.3)
Retained earnings / (deficit)	(2,717.9)	(2,740.0)
Total common shareholder's equity	(121.4)	(283.5)
Total Liabilities and Shareholder's Equity	2,171.8	2,036.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Current assets:
Cash and cash equivalents	14.4	11.7
Restricted cash	0.1	0.1
Accounts receivable, net	71.9	70.2
Inventories	14.4	8.8
Taxes applicable to subsequent years	83.0	77.6
Regulatory Assets, Current	24.5	27.5
Income Taxes Receivable, Current	28.1	32.5
Prepayments and other current assets	8.0	6.5
Total current assets	244.3	234.8
Property, plant and equipment:
Property, plant & equipment	2,571.3	2,437.3
Less: Accumulated depreciation and amortization	(1,062.6)	(1,032.1)
Property, plant and equipment, net of depreciation	1,508.7	1,405.2
Construction work in process	170.5	138.8
Total net property, plant & equipment	1,679.2	1,544.0
Other non-current assets:
Regulatory Assets, Noncurrent	176.8	193.6
Intangible assets, net of amortization	32.4	18.3
Other non-current assets	29.9	24.0
Total other non-current assets	239.1	235.9
Total assets	2,162.6	2,014.7
LIABILITIES AND SHAREHOLDER'S EQUITY
Current portion - long-term debt	0.2	20.2
Accounts payable	111.5	85.5
Accrued interest	2.6	2.6
Accrued taxes	85.1	82.7
Customer security deposits	14.9	19.1
Regulatory Liability, Current	14.6	18.0
Other current liabilities	13.0	25.0
Total current liabilities	241.9	253.1
Non-current liabilities:
Long-term debt	574.1	573.9
Deferred taxes	183.4	172.1
Taxes payable	83.5	80.3
Regulatory Liability, Noncurrent	229.3	218.3
Pension, retiree and other benefits	62.3	93.9
Other deferred credits	5.9	6.4
Total non-current liabilities	1,138.5	1,144.9
Commitments and contingencies
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares outstanding	41,172,173	41,172,173
Common stock, shares authorized	50,000,000	50,000,000
Common shareholder's equity:
Common stock	$ 0.4	$ 0.4
Other paid-in capital	822.5	714.4
Accumulated other comprehensive income/(loss)	(31.8)	(42.1)
Retained earnings / (deficit)	(8.9)	(56.0)
Total common shareholder's equity	782.2	616.7
Total Liabilities and Shareholder's Equity	$ 2,162.6	$ 2,014.7

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Common stock, shares authorized	1,500	1,500
Common stock, shares outstanding	1	1
THE DAYTON POWER AND LIGHT COMPANY [Member]
Common stock, shares authorized	50,000,000	50,000,000
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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Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net income / (loss)	$ 22.1	$ (1.0)	$ 105.4
Adjustments to reconcile Net income / (loss) to Net cash from operating activities
Depreciation and amortization	76.1	73.6	53.1
Deferred income taxes	4.7	39.8	15.2
Loss on early extinguishment of debt	0.0	31.7	44.9
Impairment of Long-Lived Assets Held-for-use, Including Discontinued Operation	0.0	0.0	3.5
Gain (Loss) on Disposition of Business	0.0	(1.4)	(20.1)
Gain (Loss) on Disposition of Business	0.0	(4.7)	0.0
Changes in certain assets and liabilities:
Accounts receivable, net	(2.0)	11.2	10.2
Inventories	(5.5)	4.9	(4.2)
Taxes applicable to subsequent years	(5.2)	(0.2)	(2.8)
Deferred regulatory costs, net	10.3	(34.0)	(2.2)
Accounts payable	15.7	(10.1)	9.7
Accrued taxes payable / receivable	20.6	8.0	(21.2)
Accrued interest	(0.7)	4.6	(2.9)
Accrued pension and other post-retirement benefits	(12.2)	(11.8)	(8.8)
Other	(7.0)	(1.4)	0.5
Net cash provided by operating activities	116.9	113.9	180.3
Cash flows from investing activities:
Capital expenditures	(191.3)	(157.3)	(156.5)
Proceeds from disposal and sale of business interests	0.0	1.6	0.0
Payments for Removal Costs	(3.9)	(8.9)	(51.0)
Proceeds from Sale of Property, Plant, and Equipment	0.0	5.1	0.0
Payments for (Proceeds from) Removal Costs	(17.2)	(25.5)	(11.6)
Other investing activities, net	(0.6)	(0.7)	(3.5)
Net cash used in investing activities	(213.0)	(185.7)	(222.6)
Cash flows from financing activities:
Deferred financing costs	(0.2)	(7.8)	(9.9)
Retirement of debt	0.0	(550.8)	(978.0)
Equity Contribution from Parent	132.5	98.0	0.0
Premium paid for early redemption of debt	0.0	(0.1)	(0.2)
Issuance of long-term debt	0.0	555.0	821.7
Borrowings from revolving credit facilities	120.0	185.0	204.0
Repayment of borrowings from revolving credit facilities	(155.0)	(229.0)	(60.0)
Net cash from financing activities	97.3	50.3	(22.4)
Cash and cash equivalents:
Net increase / (decrease) in cash	1.2	(21.5)	(64.7)
Restricted Cash and Cash Equivalents	26.7	25.5	47.0
Supplemental cash flow information:
Interest paid, net of amounts capitalized	59.3	67.8	80.8
Income taxes paid / (refunded), net	(17.5)	(51.9)	1.8
Non-cash financing and investing activities:
Accruals for capital expenditures	42.6	31.7	16.9
Non-cash capital contribution		98.0
Accruals from sale of business	0.0	2.2	0.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Net income / (loss)	47.1	51.1	124.9
Adjustments to reconcile Net income / (loss) to Net cash from operating activities
Depreciation and amortization	74.6	71.8	70.8
Deferred income taxes	4.5	3.4	(9.7)
Gain (Loss) on Disposition of Business	0.0	(4.7)	0.0
Changes in certain assets and liabilities:
Accounts receivable, net	(1.9)	0.7	19.6
Inventories	(5.5)	1.4	(2.8)
Taxes applicable to subsequent years	(5.4)	(0.2)	(5.0)
Deferred regulatory costs, net	10.3	(34.0)	(2.2)
Accounts payable	15.1	(4.0)	12.9
Accrued taxes payable / receivable	10.0	4.5	(7.2)
Accrued interest	0.0	1.3	0.9
Accrued pension and other post-retirement benefits	(12.2)	(11.8)	(8.8)
Other	(6.4)	2.1	6.5
Net cash provided by operating activities	130.2	91.0	199.9
Cash flows from investing activities:
Capital expenditures	(189.3)	(153.3)	(155.5)
Payments for Removal Costs	0.0	(7.0)	0.0
Payments for (Proceeds from) Removal Costs	(17.1)	(25.5)	(11.6)
Other investing activities, net	0.9	(0.7)	(3.5)
Net cash used in investing activities	(205.5)	(186.5)	(170.6)
Cash flows from financing activities:
Deferred financing costs	0.0	(1.2)	(5.2)
Retirement of debt	0.0	(140.0)	(436.1)
Equity Contribution from Parent	150.0	150.0	0.0
Premium paid for early redemption of debt	0.0	(0.1)	(0.2)
Issuance of long-term debt	0.0	140.0	422.3
Borrowings from revolving credit facilities	120.0	95.0	60.0
Repayment of borrowings from revolving credit facilities	(140.0)	(115.0)	(20.0)
Dividends paid on common stock to parent	(52.0)		(95.0)
Net cash from financing activities	78.0	86.0	(74.2)
Cash and cash equivalents:
Net increase / (decrease) in cash	2.7	(9.5)	(44.9)
Restricted Cash and Cash Equivalents	14.5	11.8	21.3
Supplemental cash flow information:
Interest paid, net of amounts capitalized	21.2	19.3	20.3
Income taxes paid / (refunded), net	0.0	0.1	24.3
Non-cash financing and investing activities:
Accruals for capital expenditures	$ 42.5	$ 31.6	$ 16.5

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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Common stock, shares authorized	1,500	1,500
THE DAYTON POWER AND LIGHT COMPANY [Member]
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000

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Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions	Total	Common Stock [Member]	Other Paid-In Capital [Member]	Accumulated Other Comprehensive Income/(Loss) [Member]	Retained Earnings [Member]	Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]	THE DAYTON POWER AND LIGHT COMPANY [Member]	THE DAYTON POWER AND LIGHT COMPANY [Member] Common Stock [Member]	THE DAYTON POWER AND LIGHT COMPANY [Member] Other Paid-In Capital [Member]	THE DAYTON POWER AND LIGHT COMPANY [Member] Accumulated Other Comprehensive Income/(Loss) [Member]	THE DAYTON POWER AND LIGHT COMPANY [Member] Retained Earnings [Member]	THE DAYTON POWER AND LIGHT COMPANY [Member] Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Other Comprehensive Income (Loss), Net of Tax	$ (5.8)						$ (1.6)
Balance at Dec. 31, 2018	(471.7)	$ 0.0	$ 2,370.5	$ 2.2	$ (2,844.4)		445.3	$ 0.4	$ 711.8	$ (35.3)	$ (231.6)
Balance (in shares) at Dec. 31, 2018		1						41,172,173
Net comprehensive income/ (loss)	99.6						123.3
Net loss	105.4						124.9
Common stock dividends							(95.0)		(95.0)
Equity Contribution from Parent	0.0						0.0
Other	0.2		0.2				0.2		(0.2)		0.4
Balance at Dec. 31, 2019	(371.9)	$ 0.0	2,370.7	(3.6)	(2,739.0)		473.4	$ 0.4	617.0	(36.9)	(107.1)
Balance (in shares) at Dec. 31, 2019		1						41,172,173
Other Comprehensive Income (Loss), Net of Tax	(8.7)					$ (0.9)	(5.2)					$ 0.4
Net comprehensive income/ (loss)	(9.7)						45.9
Net loss	(1.0)						51.1
Common stock dividends							52.7		(52.7)
Equity Contribution from Parent	(98.0)		(98.0)				(150.0)		150.0
Other	(0.1)		(0.1)				(0.1)		(0.1)		0.0
Balance at Dec. 31, 2020	(283.5)	$ 0.0	2,468.8	(12.3)	(2,740.0)		616.7	$ 0.4	714.4	(42.1)	(56.0)
Balance (in shares) at Dec. 31, 2020		1						41,172,173
Non-cash capital contribution	98.0
Other Comprehensive Income (Loss), Net of Tax	7.5					$ (0.8)	10.3					$ 0.0
Net comprehensive income/ (loss)	29.6						57.4
Net loss	22.1						47.1
Common stock dividends							(42.0)		(42.0)
Equity Contribution from Parent	(132.5)		(132.5)				(150.0)		150.0
Other							(0.1)		(0.1)		0.0
Balance at Dec. 31, 2021	$ (121.4)	$ 0.0	$ 2,601.3	$ (4.8)	$ (2,717.9)		$ 782.2	$ 0.4	$ 822.5	$ (31.8)	$ (8.9)
Balance (in shares) at Dec. 31, 2021		1

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Overview and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Significant Accounting Policies [Line Items]

Business Description and Basis of Presentation

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 our reportable segment. The terms “we”, “us”, “our” and “ours” are used to refer to DPL and its subsidiaries.

On November 28, 2011, DPL was acquired by AES in the Merger and DPL became a wholly-owned subsidiary of AES. Following the merger of DPL and Dolphin Subsidiary II, Inc., DPL became an indirectly wholly-owned subsidiary of AES.

AES Ohio, DPL's wholly-owned subsidiary, is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such service to its approximately 534,000 customers located in West Central Ohio. AES Ohio provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio. AES Ohio sources all of the generation for its SSO customers through a competitive bid process. AES Ohio owned interests in the retired Hutchings Coal Station until its transfer in 2020 and currently owns numerous transmission facilities. Principal industries located in AES Ohio’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. AES Ohio's sales reflect the general economic conditions, seasonal weather patterns of the area, the market price of electricity and customer energy efficiency initiatives. AES Ohio also sells its proportional share of energy and capacity from its investment in OVEC into the wholesale market.

DPL’s other primary subsidiaries are MVIC and Miami Valley Lighting. MVIC is our captive insurance company that provides insurance services to AES Ohio and our other subsidiaries, and Miami Valley Lighting provides street and outdoor lighting services to customers in the Dayton region. In prior periods, AES Ohio Generation was also a primary subsidiary and sold all of its energy and capacity into the wholesale market. AES Ohio Generation retired its only remaining operating asset in May 2020 and sold it in June 2020. See Note 14 – Discontinued Operations for additional information. DPL's subsidiaries are 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.

AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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 or overcollections of riders.

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 our reportable segment. The terms “we”, “us”, “our” and “ours” are used to refer to DPL and its subsidiaries.

On November 28, 2011, DPL was acquired by AES in the Merger and DPL became a wholly-owned subsidiary of AES. Following the merger of DPL and Dolphin Subsidiary II, Inc., DPL became an indirectly wholly-owned subsidiary of AES.

AES Ohio, DPL's wholly-owned subsidiary, is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such service to its approximately 534,000 customers located in West Central Ohio. AES Ohio provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio. AES Ohio sources all of the generation for its SSO customers through a competitive bid process. AES Ohio owned interests in the retired Hutchings Coal Station until its transfer in 2020 and currently owns numerous transmission facilities. Principal industries located in AES Ohio’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. AES Ohio's sales reflect the general economic conditions, seasonal weather patterns of the area, the market price of electricity and customer energy efficiency initiatives. AES Ohio also sells its proportional share of energy and capacity from its investment in OVEC into the wholesale market.

DPL’s other primary subsidiaries are MVIC and Miami Valley Lighting. MVIC is our captive insurance company that provides insurance services to AES Ohio and our other subsidiaries, and Miami Valley Lighting provides street and outdoor lighting services to customers in the Dayton region. In prior periods, AES Ohio Generation was also a primary subsidiary and sold all of its energy and capacity into the wholesale market. AES Ohio Generation retired its only remaining operating asset in May 2020 and sold it in June 2020. See Note 14 – Discontinued Operations for additional information. DPL's subsidiaries are 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.

AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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 or overcollections of riders.

Financial Statement Presentation

We prepare Consolidated Financial Statements for DPL. DPL’s 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.

All material intercompany accounts and transactions are eliminated in consolidation. We have evaluated subsequent events through the date this report is issued.

Certain amounts from prior periods have been reclassified to conform to the current period presentation.

Use of Management Estimates

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: the carrying value of Property, plant and equipment; unbilled

revenues; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; reserves recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits.

Cash and Cash Equivalents

Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents.

Restricted Cash

Restricted cash includes cash which is restricted as to withdrawal or usage. The restrictions relate to cash required for certain balance requirements.

The following table summarizes cash, cash equivalents and restricted cash amounts reported within the Consolidated Balance Sheets that reconcile to the total of such amounts as shown on the Consolidated Statements of Cash Flows:

	December 31,
$ in millions	2021		2020
Cash and cash equivalents	$	26.6	$	25.4
Restricted cash (included in Prepayments and other current assets)	0.1		0.1
Cash, Cash Equivalents and Restricted Cash, End of Period	$	26.7	$	25.5

Accounts receivable and allowance for credit losses

Accounts receivable are as follows at December 31, 2021 and 2020:

	December 31,
$ in millions	2021		2020
Accounts receivable, net
Customer receivables	$	42.3	$	48.5
Unbilled revenue	19.2		21.6
Amounts due from affiliates	3.1		0.2
Due from PJM transmission enhancement settlement (a)	1.7		1.7
Other	5.5		0.5
Allowance for credit losses	(0.3)		(2.8)
Total accounts receivable, net	$	71.5	$	69.7

(a)    See Note 2 – Regulatory Matters for more information.

The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the years ended December 31, 2021 and 2020:

$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2021	$	2.8	$	(0.4)	$	(3.5)	$	1.4	$	0.3
2020	$	0.4	$	3.0	$	(2.3)	$	1.7	$	2.8

The allowance for credit losses primarily relates to utility customer receivables, including unbilled amounts. Expected credit loss estimates are developed by disaggregating customers into those with similar credit risk characteristics and using historical credit loss experience. In addition, we also consider how current and future economic conditions would impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of December 31, 2021. Amounts are written off when reasonable collections efforts have been exhausted. On March 12, 2020, the PUCO issued an emergency order prohibiting electric utilities, including us, from discontinuing electric utility service to customers through September 1, 2020 due to the economic impacts of COVID-19. This order along with the economic impacts of COVID-19 has resulted in an increase in past due customer receivable balances in 2020, and thus the current period provision and the allowance for credit losses increased during the prior year. During 2021, the current period provision and allowance for credit losses decreased due to lower past due customer receivable balances. See Note 16 – Risks & Uncertainties for additional discussion of the COVID-19 pandemic. As discussed in Note 2 – Regulatory Matters, AES Ohio’s uncollectible expense is deferred for future collection.

Inventories

Inventories are carried at average cost, net of reserves, and include materials and supplies used for utility operations.

Regulatory Accounting

As a regulated utility, AES Ohio applies the provisions of FASC 980 “Regulated Operations”, which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory assets have been included as allowable costs for ratemaking purposes, as authorized by the PUCO or established regulatory practices. Regulatory liabilities generally represent obligations to make refunds or future rate reductions to customers for previous over collections or the deferral of revenues collected for costs that AES Ohio expects to incur in the future.

The deferral of costs (as regulatory assets) is appropriate only when the future recovery of such costs is probable. In assessing probability, we consider such factors as specific orders from the PUCO or the FERC, regulatory precedent and the current regulatory environment. To the extent recovery of costs is no longer deemed probable, related regulatory assets would be required to be expensed in current period earnings. Our regulatory assets and liabilities have been created pursuant to a specific order of the PUCO or the FERC or established regulatory practices, such as other utilities under the jurisdiction of the PUCO or the FERC being granted recovery of similar costs. It is probable, but not certain, that these regulatory assets will be recoverable, subject to approval by the PUCO or the FERC. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 2 – Regulatory Matters for more information.

Property, Plant and Equipment

New property, plant and equipment additions are stated at cost. For regulated transmission and distribution property, cost includes direct labor and material, allocable overhead expenses and an allowance for funds used during construction (AFUDC). AFUDC represents the cost of borrowed funds and equity used to finance regulated construction projects. Capitalization of AFUDC and interest ceases at either project completion or at the date specified by regulators. AFUDC and capitalized interest was $3.7 million, $3.0 million and $3.2 million in the years ended December 31, 2021, 2020 and 2019, respectively.

For substantially all depreciable property, when a unit of property is retired, the original cost of that property less any salvage value is charged to Accumulated depreciation and amortization, consistent with composite depreciation practices.

Impairment of Long-lived Assets

GAAP requires that we test long-lived assets for impairment when indicators of impairment exist. If an asset is deemed to be impaired, we are required to write down the asset to its fair value with a charge to current earnings. The net book value of our property, plant, and equipment was $1,700.8 million and $1,565.3 million as of December 31, 2021 and 2020, respectively. We do not believe any of these assets are currently impaired. In making this assessment, we consider such factors as: the overall condition and distribution capacity of the assets; the expected ability to recover additional expenditures in the assets; and the anticipated demand and relative pricing of retail electricity in our service territory.

Depreciation

Depreciation expense is calculated using the straight-line method, which allocates the cost of property over its estimated useful life. For DPL’s transmission and distribution assets, straight-line depreciation is applied monthly on an average composite basis using group rates that approximated 3.7% in 2021, 3.8% in 2020 and 4.0% in 2019. Depreciation expense was $72.9 million, $70.0 million and $67.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Intangibles

Intangibles include software and renewable energy credits. Renewable energy credits are carried on a weighted average cost basis and amortized as they are used or retired.

Software is amortized over seven years. Amortization expense was $3.2 million, $3.3 million and $4.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. The estimated amortization expense of this internal-

use software over the next five years is $9.9 million ($2.8 million in 2022, $2.1 million in 2023, $1.9 million in 2024, $1.6 million in 2025 and $1.5 million in 2026).

Implementation Costs Related to Software as a Service

DPL has recorded prepayments for implementation costs related to software as a service in support of utility customer services of $8.0 million and $4.1 million as of December 31, 2021 and 2020, respectively, and these are recorded within Other Non-current Assets on the accompanying Consolidated Balance Sheets.

Debt Issuance Costs

Costs incurred in connection with the issuance of long-term debt are deferred and presented as a direct reduction from the face amount of that debt and amortized over the related financing period using the effective interest method. Debt issuance costs related to a line-of-credit or revolving credit facility are deferred and presented as an asset and amortized over the related financing period. Make-whole payments in connection with early debt retirements are classified as cash flows used in financing activities.

Financial Instruments

Our Master Trust investments in debt and equity financial instruments of publicly traded entities are classified as equity investments. These equity securities are carried at fair value and unrealized gains and losses on these securities are recorded in Other income. As these financial instruments are held to be used for the benefit of employees or former employees participating in employee benefit plans and are not used for general operating purposes, they are classified as non-current in Other non-current assets on the Consolidated Balance Sheets. See

Note 4 – Fair Value for additional information.

Financial Derivatives

We have contracts involving the physical delivery of energy. Because these contracts qualify for the normal purchases and normal sales scope exception in ASC 815, we have elected to account for them as accrual contracts, which are not adjusted for changes in fair value.

We have, in the past, used interest rate hedges to manage the interest rate risk of our variable rate debt. We used cash flow hedge accounting when the hedge or a portion of the hedge was deemed to be highly effective, which resulted in changes in fair value being recorded within accumulated other comprehensive loss, a component of shareholder’s deficit. We elected not to offset net derivative positions in the financial statements. Accordingly, we did not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 5 – Derivative Instruments and Hedging Activities for additional information.

Accumulated other comprehensive loss

The amounts reclassified out of Accumulated other comprehensive loss by component during the years ended December 31, 2021, 2020 and 2019 are as follows:

Details about Accumulated Other Comprehensive Loss Components	Affected line item in the Consolidated Statements of Operations	Years ended December 31,
$ in millions		2021		2020		2019
Gains and losses on cash flow hedges (Note 5):
	Interest expense	(1.0)		(1.1)		(1.2)
	Income tax expense	0.2		0.2		0.1
	Net of income taxes	(0.8)		(0.9)		(1.1)
	Income tax benefit from discontinued operations	—		—		(0.4)
Amortization of defined benefit pension items (Note 8):
	Other expense	2.5		1.3		0.2
	Income tax benefit	(0.6)		(0.3)		—
	Net of income taxes	1.9		1.0		0.2
Total reclassifications for the period, net of income taxes		$	1.1	$	0.1	$	(1.3)

The changes in the components of Accumulated other comprehensive loss during the years ended December 31, 2021 and 2020 are as follows:

$ in millions	Gains / (losses) on cash flow hedges		Change in unfunded pension obligation		Total
Balance at January 1, 2020	$	14.5	$	(18.1)	$	(3.6)
Other comprehensive loss before reclassifications	—		(8.8)		(8.8)
Amounts reclassified from accumulated other comprehensive loss to earnings	(0.9)		1.0		0.1
Net current period other comprehensive loss	(0.9)		(7.8)		(8.7)
Balance at December 31, 2020	13.6		(25.9)		(12.3)
Other comprehensive income before reclassifications	—		6.4		6.4
Amounts reclassified from accumulated other comprehensive loss to earnings	(0.8)		1.9		1.1
Net current period other comprehensive income / (loss)	(0.8)		8.3		7.5
Balance at December 31, 2021	$	12.8	$	(17.6)	$	(4.8)

Insurance and Claims Costs

In addition to insurance obtained from third-party providers, MVIC, a wholly-owned captive subsidiary of DPL, provides insurance coverage solely to us and our subsidiaries for workers’ compensation, general liability and property damage on an ongoing basis. Insurance and claims costs associated with MVIC include estimated liabilities of approximately $2.3 million and $3.2 million at December 31, 2021 and 2020, respectively, within Accrued and other current liabilities on the DPL Consolidated Balance Sheets. DPL has estimated liabilities for medical, life, disability and other reserves for claims costs below certain coverage thresholds of third-party providers of approximately $9.7 million and $11.1 million at December 31, 2021 and 2020, respectively, within Accrued and other current liabilities and Other non-current liabilities on the balance sheets. The estimated liabilities for workers’ compensation, medical, life and disability costs at DPL are actuarially determined using certain assumptions. There is uncertainty associated with these loss estimates, and actual results may differ from the estimates. Modification of these loss estimates based on experience and changed circumstances is reflected in the period in which the estimate is re-evaluated.

Revenue Recognition

Revenues are recognized 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. Energy sales to customers are based on the reading of their meters that occurs on a systematic basis throughout the month. We recognize the revenues on our Consolidated Statements of Operations using an accrual method for retail and other energy sales that have not yet been billed, but where electricity has been consumed. This is termed “unbilled revenues” and is a widely recognized and accepted practice for utilities. At the end of each month, unbilled revenues are determined by the estimation of unbilled energy provided to customers since the date of the last meter reading, estimated line losses, the assignment of unbilled energy provided to customer classes and the average rate per customer class. For additional information, see Note 13 – Revenue.

Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities

AES Ohio collects certain excise taxes levied by state or local governments from its customers. AES Ohio’s excise taxes and certain other taxes are accounted for on a net basis and recorded as a reduction in revenues in the accompanying Consolidated Statements of Operations. The amounts of such taxes were as follows:

	Years ended December 31,
$ in millions	2021		2020		2019
Excise taxes collected	$	48.7	$	48.1	$	50.1

Repairs and Maintenance

Costs associated with maintenance activities are recognized at the time the work is performed. These costs, which include labor, materials and supplies and outside services required to maintain equipment and facilities, are capitalized or expensed based on defined units of property.

Pension and Postretirement Benefits

We recognize in our Consolidated Balance Sheets an asset or liability reflecting the funded status of pension and other postretirement plans with current-year changes from actuarial gains or losses related to our regulated operations, that would otherwise be recognized in AOCL, recorded as a regulatory asset as this can be recovered through future rates. Such changes that are not related to our regulated operations are recognized in AOCL. All plan assets are recorded at fair value. We follow the measurement date provisions of the accounting guidance, which require a year-end measurement date of plan assets and obligations for all defined benefit plans.

We account for and disclose pension and postretirement benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postretirement plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost and funding requirements of the plans. Consistent with the requirements of FASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans.

See Note 8 – Benefit Plans for more information.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective income tax bases. We establish an allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Our tax positions are evaluated under a more likely than not recognition threshold and measurement analysis before they are recognized for financial statement reporting. Uncertain tax positions have been classified as noncurrent income tax liabilities unless expected to be paid within one year. Our policy for interest and penalties is to recognize interest and penalties as a component of the provision for income taxes in the Consolidated Statement of Operations.

Income taxes payable, which are includable in allowable costs for ratemaking purposes in future years, are recorded as regulatory assets or liabilities with a corresponding deferred tax liability or asset. Investment tax credits that reduced federal income taxes in the years they arose have been deferred and are being amortized to income over the useful lives of the properties in accordance with regulatory treatment. See Note 2 – Regulatory Matters for additional information.

DPL and its subsidiaries file U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 7 – Income Taxes for additional information.

Related Party Transactions

In the normal course of business, DPL enters into transactions with related parties. All material intercompany accounts and transactions are eliminated in DPL’s Consolidated Financial Statements. See Note 11 – Related Party Transactions for more information on Related Party Transactions.

DPL Capital Trust II

DPL has a wholly-owned business trust, DPL Capital Trust II (the Trust), formed for the purpose of issuing trust capital securities to third-party investors. In 2003, DPL deconsolidated the Trust upon adoption of the accounting standards related to variable interest entities and currently treats the Trust as an unconsolidated subsidiary. The Trust holds mandatorily redeemable trust capital securities. The investment in the Trust, which amounts to $0.2 million and $0.2 million at December 31, 2021 and 2020, respectively, is included within Other noncurrent assets on the consolidated balance sheets. DPL also has a note payable to the Trust amounting to $15.6 million and $15.6 million at December 31, 2021 and 2020, respectively, that was established upon the Trust’s deconsolidation in 2003. See Note 6 – Long-term debt for additional information.

In addition to the obligations under the note payable mentioned above, DPL also agreed to a security obligation, which represents a full and unconditional guarantee of payments to the capital security holders of the Trust.

Discontinued Operations

Discontinued operations reporting occurs only when the disposal of a business or a group of assets represents a strategic shift that has (or will have) a major effect on our operations and financial results. We report financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Prior period amounts in the statement of operations and balance sheets are retrospectively revised to reflect the businesses determined to be discontinued operations. The cash flows of businesses that are determined to be discontinued operations are included within the relevant categories within operating, investing and financing activities on the face of the Consolidated Statements of Cash Flows.

Transactions between the businesses determined to be discontinued operations and businesses that are expected to continue to exist after the disposal are not eliminated to appropriately reflect the continuing operations and balances held-for-sale. The results of discontinued operations include any gain or loss recognized on closing or adjustment of the carrying amount to fair value. See Note 14 – Discontinued Operations for further information.

New accounting pronouncements

The following table provides a brief description of recent 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.

Accounting Standard	Description	Date of Adoption	Effect on the financial statements upon adoption
New Accounting Standards Adopted
2016-13, 2018-19, 2019-04, 2019-05, 2019-10, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	See discussion of the ASUs below.	January 1, 2020.	The adoption of this standard had no material effect on our consolidated financial statements.

Adoption of FASC Topic 326, "Financial Instruments - Credit Losses"

On January 1, 2020, we adopted ASC 326 Financial Instruments - Credit Losses and its subsequent corresponding updates ("ASC 326"). The new standard updates the impairment model for financial assets measured at amortized cost, known as the Current Expected Credit Loss ("CECL") model. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities are required to use a new forward-looking "expected loss" model that generally results in the earlier recognition of an allowance for credit losses. For available-for-sale debt securities with unrealized losses, entities measure credit losses as it was done under previous GAAP, except that unrealized losses due to credit-related factors are now recognized as an allowance on the balance sheet with a corresponding adjustment to earnings in the income statement.

We applied the modified retrospective method of adoption for ASC 326. Under this transition method, we applied the transition provisions starting at the date of adoption. The CECL model primarily impacts the calculation of our expected credit losses in gross customer trade accounts receivable. The adoption of ASC 326 and the application of CECL on our trade accounts receivable did not have a material impact on our Consolidated Financial Statements.

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.

Accounting Standard	Description	Date of Adoption	Effect on the financial statements upon adoption
New Accounting Standards Issued but Not Yet Effective
2020-04 and 2021-01, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The amendments in these updates provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022).	Effective for all entities as of March 12, 2020 through December 31, 2022.	We are currently evaluating the impact of adopting the standard on our consolidated financial statements.

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

AES Ohio is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such service to its approximately 534,000 customers located in West Central Ohio. AES Ohio provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio. AES Ohio sources all of the generation for its SSO customers through a competitive bid process. AES Ohio owned interests in the retired Hutchings Coal Station until its transfer in 2020 and currently owns numerous transmission facilities. Principal industries located in AES Ohio’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. AES Ohio's sales reflect the general economic conditions, seasonal weather patterns of the area, the market price of electricity and customer energy efficiency initiatives. AES Ohio also sells its proportional share of energy and capacity from its investment in OVEC into the wholesale market. AES Ohio has only one reportable segment, the Utility segment. In addition to AES Ohio's electric transmission and distribution businesses, the Utility segment includes revenues and costs associated with AES Ohio's investment in OVEC and the historical results of AES Ohio’s retired Hutchings Coal Station, which was sold in 2020.

AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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 or overcollections of riders.

Financial Statement Presentation

AES Ohio does not have any subsidiaries.

We have evaluated subsequent events through the date this report is issued.

Certain amounts from prior periods have been reclassified to conform to the current period presentation.

Use of Management Estimates

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: the carrying value of Property, plant and equipment; unbilled revenues; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; reserves recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits.

Cash and Cash Equivalents

Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents.

Restricted Cash

Restricted cash includes cash which is restricted as to withdrawal or usage. The restrictions relate to cash required for certain balance requirements.

The following table summarizes cash, cash equivalents and restricted cash amounts reported within the Balance Sheets that reconcile to the total of such amounts as shown on the Statements of Cash Flows:

	December 31,
$ in millions	2021		2020
Cash and cash equivalents	$	14.4	$	11.7
Restricted cash (included in Prepayments and other current assets)	0.1		0.1
Cash, Cash Equivalents and Restricted Cash, End of Period	$	14.5	$	11.8

Accounts receivable and allowance for credit losses

Accounts receivable are as follows at December 31, 2021 and 2020:

	December 31,
$ in millions	2021		2020
Accounts receivable, net
Customer receivables	$	41.6	$	47.6
Unbilled revenue	19.2		21.6
Amounts due from affiliates	4.4		1.9
Due from PJM transmission enhancement settlement (a)	1.7		1.7
Other	5.3		0.2
Allowance for credit losses	(0.3)		(2.8)
Total accounts receivable, net	$	71.9	$	70.2

(a)    See Note 2 – Regulatory Matters for more information.

The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the years ended December 31, 2021 and 2020:

$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2021	$	2.8	$	(0.4)	$	(3.5)	$	1.4	$	0.3
2020	$	0.4	$	3.0	$	(2.3)	$	1.7	$	2.8

The allowance for credit losses primarily relates to utility customer receivables, including unbilled amounts. Expected credit loss estimates are developed by disaggregating customers into those with similar credit risk characteristics and using historical credit loss experience. In addition, we also consider how current and future economic conditions would impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of December 31, 2021. Amounts are written off when reasonable collections efforts have been exhausted. On March 12, 2020, the PUCO issued an emergency order prohibiting electric utilities, including us, from discontinuing electric utility service to customers through September 1, 2020 due to the economic impacts of COVID-19. This order along with the economic impacts of COVID-19 has resulted in an increase in past due customer receivable balances in 2020, and thus the current period provision and the allowance for credit losses increased during the prior year. During 2021, the current period provision and allowance for credit losses decreased due to lower past due customer receivable balances. See Note 14 – Risks & Uncertainties for additional discussion of the COVID-19 pandemic. As discussed in Note 2 – Regulatory Matters, AES Ohio’s uncollectible expense is deferred for future collection.

Inventories

Inventories are carried at average cost, net of reserves, and include materials and supplies used for utility operations.

Regulatory Accounting

As a regulated utility, AES Ohio applies the provisions of FASC 980 “Regulated Operations”, which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory assets have been included as allowable costs for ratemaking purposes, as authorized by the PUCO or established regulatory practices. Regulatory liabilities generally represent obligations to make refunds or future rate reductions to customers for previous over collections or the deferral of revenues collected for costs that AES Ohio expects to incur in the future.

The deferral of costs (as regulatory assets) is appropriate only when the future recovery of such costs is probable. In assessing probability, we consider such factors as specific orders from the PUCO or the FERC, regulatory precedent and the current regulatory environment. To the extent recovery of costs is no longer deemed probable, related regulatory assets would be required to be expensed in current period earnings. Our regulatory assets and liabilities have been created pursuant to a specific order of the PUCO or the FERC or established regulatory practices, such as other utilities under the jurisdiction of the PUCO or the FERC being granted recovery of similar costs. It is probable, but not certain, that these regulatory assets will be recoverable, subject to approval by the PUCO or the FERC. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 2 – Regulatory Matters for more information.

Property, Plant and Equipment

New property, plant and equipment additions are stated at cost. For regulated transmission and distribution property, cost includes direct labor and material, allocable overhead expenses and an allowance for funds used during construction (AFUDC). AFUDC represents the cost of borrowed funds and equity used to finance regulated construction projects. Capitalization of AFUDC and interest ceases at either project completion or at the date specified by regulators. AFUDC and capitalized interest was $3.7 million, $3.0 million and $3.2 million in the years ended December 31, 2021, 2020 and 2019, respectively.

For substantially all depreciable property, when a unit of property is retired, the original cost of that property less any salvage value is charged to Accumulated depreciation and amortization, consistent with composite depreciation practices.

Impairment of Long-lived Assets

GAAP requires that we test long-lived assets for impairment when indicators of impairment exist. If an asset is deemed to be impaired, we are required to write down the asset to its fair value with a charge to current earnings. The net book value of our property, plant, and equipment was $1,679.2 million and $1,544.0 million as of December 31, 2021 and 2020, respectively. We do not believe any of these assets are currently impaired. In making this assessment, we consider such factors as: the overall condition and distribution capacity of the assets; the expected ability to recover additional expenditures in the assets; and the anticipated demand and relative pricing of retail electricity in our service territory.

Depreciation

Depreciation expense is calculated using the straight-line method, which allocates the cost of property over its estimated useful life. For AES Ohio’s transmission and distribution assets, straight-line depreciation is applied monthly on an average composite basis using group rates that approximated 2.8% in 2021, 2.8% in 2020 and 2.9% in 2019. Depreciation expense was $71.6 million, $68.6 million and $66.5 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Intangibles

Intangibles include software and renewable energy credits. Renewable energy credits are carried on a weighted average cost basis and amortized as they are used or retired.

Software is amortized over seven years. Amortization expense was $3.0 million, $3.2 million and $4.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. The estimated amortization expense of this internal-use software over the next five years is $9.9 million ($2.8 million in 2022, $2.1 million in 2023, $1.9 million in 2024, $1.6 million in 2025 and $1.5 million in 2026).

Implementation Costs Related to Software as a Service

AES Ohio has recorded prepayments for implementation costs related to software as a service in support of utility customer services of $8.0 million and $4.1 million as of December 31, 2021 and 2020, respectively, and these are recorded within Other Non-current Assets on the accompanying Balance Sheets.

Debt Issuance Costs

Costs incurred in connection with the issuance of long-term debt are deferred and presented as a direct reduction from the face amount of that debt and amortized over the related financing period using the effective interest method. Debt issuance costs related to a line-of-credit or revolving credit facility are deferred and presented as an asset and amortized over the related financing period. Make-whole payments in connection with early debt retirements are classified as cash flows used in financing activities.

Financial Instruments

Our Master Trust investments in debt and equity financial instruments of publicly traded entities are classified as equity investments. These equity securities are carried at fair value and unrealized gains and losses on these securities are recorded in Other income. As these financial instruments are held to be used for the benefit of employees or former employees participating in employee benefit plans and are not used for general operating purposes, they are classified as non-current in Other non-current assets on the Balance Sheets. See Note 4 – Fair Value for additional information.

Financial Derivatives

We have contracts involving the physical delivery of energy. Because these contracts qualify for the normal purchases and normal sales scope exception in ASC 815, we have elected to account for them as accrual contracts, which are not adjusted for changes in fair value.

We have, in the past, used interest rate hedges to manage the interest rate risk of our variable rate debt. We used cash flow hedge accounting when the hedge or a portion of the hedge was deemed to be highly effective, which resulted in changes in fair value being recorded within accumulated other comprehensive loss, a component of shareholder’s equity. We elected not to offset net derivative positions in the financial statements. Accordingly, we did not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 5 – Derivative Instruments and Hedging Activities for additional information.

Accumulated other comprehensive loss

The amounts reclassified out of Accumulated other comprehensive loss by component during the years ended December 31, 2021, 2020 and 2019 are as follows:

Details about Accumulated Other Comprehensive Loss Components	Affected line item in the Statements of Operations	Years ended December 31,
$ in millions		2021		2020		2019
Gains and losses on cash flow hedges (Note 5):
	Interest expense	—		(0.2)		(0.2)
	Income tax expense	—		0.8		—
	Net of income taxes	—		0.6		(0.2)
Amortization of defined benefit pension items (Note 8):
	Other expense	5.0		4.0		3.5
	Income tax benefit	(1.1)		(0.9)		(0.5)
	Net of income taxes	3.9		3.1		3.0
Total reclassifications for the period, net of income taxes		$	3.9	$	3.7	$	2.8

The changes in the components of Accumulated other comprehensive loss during the years ended December 31, 2021 and 2020 are as follows:

$ in millions	Gains / (losses) on cash flow hedges		Change in unfunded pension obligation		Total
Balance at January 1, 2020	$	(0.4)	$	(36.5)	$	(36.9)
Other comprehensive loss before reclassifications	(0.2)		(8.7)		(8.9)
Amounts reclassified from accumulated other comprehensive loss to earnings	0.6		3.1		3.7
Net current period other comprehensive income / (loss)	0.4		(5.6)		(5.2)
Balance at December 31, 2020	—		(42.1)		(42.1)
Other comprehensive income before reclassifications	—		6.4		6.4
Amounts reclassified from accumulated other comprehensive loss to earnings	—		3.9		3.9
Net current period other comprehensive income	—		10.3		10.3
Balance at December 31, 2021	$	—	$	(31.8)	$	(31.8)

Insurance and Claims Costs

In addition to insurance obtained from third-party providers, MVIC, a wholly-owned captive subsidiary of DPL, provides insurance coverage solely to us and other DPL subsidiaries for workers’ compensation, general liability and property damage on an ongoing basis. AES Ohio is responsible for claims costs below certain coverage thresholds of MVIC and third-party insurers for the insurance coverage noted above. AES Ohio has estimated liabilities for medical, life, disability and other reserves for claims costs below certain coverage thresholds of third-party providers of approximately $3.4 million and $3.5 million at December 31, 2021 and 2020, respectively, within Accrued and other current liabilities and Other non-current liabilities on the balance sheets. The estimated liabilities for workers’ compensation, medical, life and disability costs at AES Ohio are actuarially determined using certain assumptions. There is uncertainty associated with these loss estimates, and actual results may differ from the estimates. Modification of these loss estimates based on experience and changed circumstances is reflected in the period in which the estimate is re-evaluated.

Revenue Recognition

Revenues are recognized 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. Energy sales to customers are based on the reading of their meters that occurs on a systematic basis throughout the month. We recognize the revenues on our Statements of Operations using an accrual method for retail and other energy sales that have not yet been billed, but where electricity has been consumed. This is termed “unbilled revenues” and is a widely recognized and accepted practice for utilities. At the end of each month, unbilled revenues are determined by the estimation of unbilled energy provided to customers since the date of the last meter reading, estimated line losses, the assignment of unbilled energy provided to customer classes and the average rate per customer class. For additional information, see Note 12 – Revenue.

Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities

AES Ohio collects certain excise taxes levied by state or local governments from its customers. AES Ohio’s excise taxes and certain other taxes are accounted for on a net basis and recorded as a reduction in revenues in the accompanying Statements of Operations. The amounts of such taxes were as follows:

	Years ended December 31,
$ in millions	2021		2020		2019
Excise taxes collected	$	48.7	$	48.1	$	50.1

Repairs and Maintenance

Costs associated with maintenance activities are recognized at the time the work is performed. These costs, which include labor, materials and supplies and outside services required to maintain equipment and facilities, are capitalized or expensed based on defined units of property.

Pension and Postretirement Benefits

We recognize in our Balance Sheets an asset or liability reflecting the funded status of pension and other postretirement plans with current-year changes from actuarial gains or losses related to our regulated operations, that would otherwise be recognized in AOCL, recorded as a regulatory asset as this can be recovered through future rates. Such changes that are not related to our regulated operations are recognized in AOCL. All plan assets are recorded at fair value. We follow the measurement date provisions of the accounting guidance, which require a year-end measurement date of plan assets and obligations for all defined benefit plans.

We account for and disclose pension and postretirement benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postretirement plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost and funding requirements of the plans. Consistent with the requirements of FASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans.

See Note 8 – Benefit Plans for more information.

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective income tax bases. We establish an allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Our tax positions are evaluated under a more likely than not recognition threshold and measurement analysis before they are recognized for financial statement reporting. Uncertain tax positions have been classified as noncurrent income tax liabilities unless expected to be paid within one year. Our policy for interest and penalties is to recognize interest and penalties as a component of the provision for income taxes in the Statement of Operations.

Income taxes payable, which are includable in allowable costs for ratemaking purposes in future years, are recorded as regulatory assets or liabilities with a corresponding deferred tax liability or asset. Investment tax credits that reduced federal income taxes in the years they arose have been deferred and are being amortized to income over the useful lives of the properties in accordance with regulatory treatment. See Note 2 – Regulatory Matters for additional information.

AES Ohio files U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 7 – Income Taxes for additional information.

Related Party Transactions

In the normal course of business, AES Ohio enters into transactions with other subsidiaries of DPL or AES. See Note 11 – Related Party Transactions for more information on Related Party Transactions.

New accounting pronouncements

The following table provides a brief description of recent 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.

Accounting Standard	Description	Date of Adoption	Effect on the financial statements upon adoption
New Accounting Standards Adopted
2016-13, 2018-19, 2019-04, 2019-05, 2019-10, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	See discussion of the ASUs below.	January 1, 2020.	The adoption of this standard had no material effect on our financial statements.

Adoption of FASC Topic 326, "Financial Instruments - Credit Losses"

On January 1, 2020, we adopted ASC 326 Financial Instruments - Credit Losses and its subsequent corresponding updates ("ASC 326"). The new standard updates the impairment model for financial assets measured at amortized cost, known as the Current Expected Credit Loss ("CECL") model. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities are required to use a new forward-looking "expected loss" model that generally results in the earlier recognition of an allowance for credit losses. For available-for-sale debt securities with unrealized losses, entities measure credit losses as it was done under previous GAAP, except that unrealized losses due to credit-related factors are now recognized as an allowance on the balance sheet with a corresponding adjustment to earnings in the income statement.

We applied the modified retrospective method of adoption for ASC 326. Under this transition method, we applied the transition provisions starting at the date of adoption. The CECL model primarily impacts the calculation of our expected credit losses in gross customer trade accounts receivable. The adoption of ASC 326 and the application of CECL on our trade accounts receivable did not have a material impact on our Financial Statements.

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 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.

Accounting Standard	Description	Date of Adoption	Effect on the financial statements upon adoption
New Accounting Standards Issued but Not Yet Effective
2020-04 and 2021-01, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The amendments in these updates provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022).	Effective for all entities as of March 12, 2020 through December 31, 2022.	We are currently evaluating the impact of adopting the standard on our financial statements.

XML

Regulatory Matters (Notes)

12 Months Ended

Dec. 31, 2021

Schedule of Regulatory Assets and Liabilities [Text Block]

Regulatory Matters

AES Ohio ESP and SEET Proceedings, Comprehensive Settlement

Ohio law requires utilities to file either an ESP or MRO plan to establish SSO rates. From November 1, 2017 through December 18, 2019, AES Ohio operated pursuant to an approved ESP plan, which was initially approved on October 20, 2017 (ESP 3). On December 18, 2019, the PUCO approved AES Ohio's Notice of Withdrawal and reversion to its prior rate plan (ESP 1). Among other items, the PUCO Order approving the ESP 1 rate plan includes:

•Reinstating the non-bypassable RSC Rider, which provides annual revenues of approximately $79.0 million;

•Continuation of AES Ohio's Transmission Cost Recovery Rider, Storm Rider and the bypassable standard offer energy rate for AES Ohio's customers based on competitive bid auctions; and

•A placeholder rider to recover grid modernization costs, called the Infrastructure Investment Rider.

Separate from the ESP process, AES Ohio filed a petition seeking recovery of ongoing OVEC costs through a Legacy Generation Rider and was granted approval effective January 1, 2020.

On October 23, 2020, AES Ohio entered into a Stipulation and Recommendation (the Settlement) with the staff of the PUCO and various customers, and organizations representing customers of AES Ohio and certain other parties with respect to, among other matters, AES Ohio's applications pending at the PUCO for (i) approval of AES Ohio's plan to modernize its distribution grid (the Smart Grid Plan), (ii) findings that DP&L passed the SEET for 2018 and 2019, and (iii) findings that AES Ohio's current ESP 1 satisfies the SEET and the more favorable in the aggregate (MFA) regulatory test. A hearing was held in January 2021 for consideration of this settlement and on June 16, 2021, the PUCO issued their opinion and order accepting the stipulation as filed. Several applications for rehearing of the PUCO's orders relating to the Settlement were filed and denied on December 1, 2021. The OCC appealed this final PUCO Order to the Ohio Supreme Court on December 6, 2021; this appeal remains pending.

The settlement provides, among other items, for the following:

•Approval of the Smart Grid Plan outlined in the Smart Grid Plan application filed by AES Ohio with the PUCO, as modified by the terms of the settlement, including, subject to offsetting operational benefits and certain other conditions, a return on and recovery of up to $249.0 million of Smart Grid Plan Phase 1 capital investments and recovery of operational and maintenance expenses through AES Ohio's existing Infrastructure Investment Rider for a term of four years, under an aggregate cap of $267.6 million on the amount of such investments and expenses that is recoverable, and an acknowledgement that AES Ohio may file a subsequent application with the PUCO within three years seeking approvals for Phase 2 of the Smart Grid Plan;

•A commitment by AES Ohio to invest in a customer information system and supporting technologies during Phase 1 of the Smart Grid Plan, with AES Ohio recovering a return on and of prudently incurred capital investments and operational and maintenance expenses, including deferred operational and maintenance expense amounts, in a future rate case;

•Determinations that AES Ohio’s ESP 1 satisfies the prospective SEET and the MFA regulatory test and that AES Ohio satisfies the retroactive SEET for 2018 and 2019.

•A commitment by AES Ohio to file an application with the PUCO no later than October 1, 2023 for a new electric security plan that does not seek to implement certain non-bypassable charges, including those related to provider of last resort risks, stability, or financial integrity; and

•AES Ohio shareholder funding, in an aggregate amount of approximately $30.0 million over four years, for certain economic development discounts, incentives, and grants to certain commercial and industrial customers, including hospitals and manufacturers, assistance for low-income customers as well as the residents and businesses of the City of Dayton, and promotion of solar and resiliency development within AES Ohio's service territory.

Certain parties which intervened in the ESP proceedings have filed petitions for rehearing of the recent PUCO ESP orders; some of which seek to eliminate AES Ohio's RSC from the ESP 1 rates that are currently in place and others seek to re-implement ESP 3, but without the DMR. We are unable to predict the outcomes of these petitions, but if these result in terms that are more adverse than AES Ohio's current ESP rate plan, it could have a material adverse effect on our results of operations, financial condition and cash flows.

Consistent with AES' earlier statement of intent, with the PUCO's issuance of their opinion and order, during 2021 DPL received $150.0 million from AES and, in turn, DPL made a capital contribution of $150.0 million to AES Ohio to enable AES Ohio to seek to improve its infrastructure and modernize its grid while maintaining liquidity.

Decoupling

On January 23, 2021 AES Ohio filed with the PUCO requesting approval to defer its decoupling costs consistent with the methodology approved in its Distribution Rate Case. An evidentiary hearing was held in May 2021. If approved, deferral would be effective December 18, 2019 and going forward would reduce impacts of weather, energy efficiency programs and economic changes in customer demand.

COVID-19

In response to the PUCO’s COVID-19 emergency orders, AES Ohio filed an Application on March 23, 2020, requesting waivers of certain rule and tariff requirements and deferral of certain costs and revenues including those related to deposits and reconnection fees, late payment fees, credit card fees; and waived or uncollected amounts associated with putting customers on payment plans. On May 20, 2020, the PUCO approved the application and required AES Ohio to file a plan outlining the timing and steps it plans to take in an effort to return to normal operations. The authorized deferral of those certain costs and revenues must be offset by COVID-19 related savings. AES Ohio filed its plan on July 15, 2020 and was approved by the PUCO on August 12, 2020. As a result, AES Ohio has recorded a $0.9 million and $1.2 million regulatory asset as of December 31, 2021 and 2020, respectively. Recovery of these deferrals will be addressed in a future rate proceeding.

Distribution Rate Case

On November 30, 2020, AES Ohio filed a new distribution rate case with the PUCO. This rate case proposes a revenue increase of $120.8 million per year and incorporates the DIR investments that were planned and approved in the last rate case but not yet included in distribution rates, other distribution investments since September 2015 and investments necessitated by the tornados that occurred on Memorial Day in 2019. The rate case also includes a proposal for increased tree-trimming expenses and certain customer demand-side management programs and recovery of prior-approved regulatory assets for tree trimming, uncollectible expenses and rate case expense. A hearing on this case was held in January 2022, and the case is pending a commission order.

FERC Proceedings

On March 3, 2020, AES Ohio filed an application before the FERC seeking to change its existing stated transmission rates to formula transmission rates that would be updated each calendar year. This filing was approved and made effective as of May 3, 2020, subject to possible refunds if the approved rates were modified. An uncontested settlement was filed December 10, 2020 and approved April 15, 2021. Among other things, the settlement established new depreciation rates for AES Ohio’s transmission assets and an authorized return on equity of 9.85%, and started an amortization process to return excess deferred taxes created by the TCJA. Because the approved settlement rates were lower than the proposed rates that went into effect, AES Ohio has accrued and/or paid refunds of approximately $4.4 million to users of the transmission system through December 31, 2021 through credits on PJM bills. Pursuant to the approved mechanisms and formula, transmission rates were adjusted, effective on January 1, 2022, to reflect projected 2022 costs, adjusted to true-up the projections of revenues and costs incurred during 2020. Adjustments to true-up 2021 revenues and costs will be reflected in 2023 formula transmission rates. At December 31, 2021, AES Ohio has recorded a liability of $12.6 million, with $0.4 million classified as current, representing credits owed to customers for the 2020 and 2021 annual true-ups.

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 OATT. The FERC order approved the settlement which reduces AES Ohio’s transmission costs through PJM beginning in August 2018, including credits to reimburse AES Ohio for amounts overcharged in prior years. AES Ohio estimates the prior overcharge by PJM to be $40.6 million, of which approximately $33.8 million has been repaid to AES Ohio through December 31, 2021 and $1.7 million is classified as current in "Accounts receivable, net" and $5.1 million is classified as non-current in "Other non-current assets" on the accompanying Consolidated Balance Sheet. All of the transmission charges and credits impacted by this FERC order are items that are included for full recovery in AES Ohio’s non-bypassable TCRR. Accordingly, AES Ohio has also established offsetting regulatory liabilities. While this development will have a temporary cash flow benefit to AES Ohio, there is no impact to operating income or net income as all credits will be passed to AES Ohio’s customers through the TCRR, which began in November 2018.

Regulatory Assets and Liabilities

In accordance with FASC 980, we have recognized total regulatory assets of $201.3 million and $221.1 million at December 31, 2021 and 2020, respectively, and total regulatory liabilities of $243.9 million and $236.3 million at December 31, 2021 and 2020, respectively. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 1 – Overview and Summary of Significant Accounting Policies for accounting policies regarding Regulatory Assets and Liabilities.

The following table presents DPL’s Regulatory assets and liabilities:

	Type of Recovery	Amortization Through	December 31,
$ in millions			2021		2020
Regulatory assets, current:
Undercollections to be collected through rate riders	A/B	2022	$	23.9	$	26.8
Rate case expenses being recovered in base rates	B	2022	0.6		0.7
Total regulatory assets, current			24.5		27.5
Regulatory assets, non-current:
Pension benefits	B	Ongoing	76.2		94.4
Unrecovered OVEC charges	C	Undetermined	28.9		28.9
Regulatory compliance costs	B	Undetermined	6.3		6.3
Smart grid and AMI costs	B	2026	5.2		8.5
Unamortized loss on reacquired debt	B	Various	4.3		7.1
Deferred storm costs	A	Undetermined	15.2		11.5
Deferred rate case costs	B	Undetermined	1.8		—
Deferred vegetation management and other	A/B	Undetermined	18.7		15.7
Decoupling deferral	C	Undetermined	13.8		13.8
Uncollectible deferral	C	Undetermined	6.4		7.4
Total regulatory assets, non-current			176.8		193.6
Total regulatory assets			$	201.3	$	221.1
Regulatory liabilities, current:
Overcollection of costs to be refunded through rate riders	A/B	2022	$	14.2	$	18.0
Transmission formula rate credits	A	2022	$	0.4	$	—
Total regulatory liabilities, current			14.6		18.0
Regulatory liabilities, non-current:
Estimated costs of removal - regulated property		Not Applicable	145.2		138.8
Deferred income taxes payable through rates		Various	57.5		61.2
TCJA regulatory liability	B	Ongoing	6.5		7.2
Transmission formula rate credits	A	2023	12.2		—
PJM transmission enhancement settlement	A	2025	5.1		7.0
Postretirement benefits	B	Ongoing	2.8		4.1
Total regulatory liabilities, non-current			229.3		218.3
Total regulatory liabilities			$	243.9	$	236.3

A – Recovery of incurred costs plus rate of return.

B – Recovery of incurred costs without a rate of return.

C – Recovery not yet determined, but recovery is probable of occurring in future rate proceedings.

Current regulatory assets and liabilities primarily represent costs that are being recovered per specific rate order; recovery for the remaining costs is probable, but not certain. These costs include: (i) the Energy Efficiency Rider, (ii) the Alternative Energy Rider, (iii) the Competitive Bidding Rider and (iv) the Transmission Cost Recovery Rider. Also included are the current portion of rate case expense costs, storm costs, Smart Grid O&M and Smart Grid R&D, which do not earn a return and are described in greater detail below. Current regulatory liabilities include the overcollection of economic development costs, legacy generation costs and certain transmission related costs, including the current portion of the PJM transmission enhancement settlement, the transmission rate true-up and the TCJA regulatory liability (see above).

AES Ohio is earning a return on $8.1 million of this net current deferral including: (i) the Energy Efficiency Rider, (ii) the Alternative Energy Rider, (iii) the Competitive Bidding Rider and (iv) the Transmission Cost Recovery Rider. These regulatory assets are partially offset by the overcollection of economic development costs and legacy generation costs.

Pension benefits represent the qualifying FASC 715 “Compensation - Retirement Benefits” costs of our regulated operations that for ratemaking purposes are deferred for future recovery. We recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory asset represents the regulated portion that would otherwise be charged as a loss to OCI. As per PUCO and FERC precedents, these costs are probable of future rate recovery.

Unrecovered OVEC charges includes the portion of charges from OVEC that were not recoverable through AES Ohio’s Fuel Rider from October 2014 through October 2017. Additionally, it includes net OVEC costs from December 19, 2019 through December 31, 2019. AES Ohio expects to recover these costs through a future rate proceeding. Beginning on November 1, 2017, through December 18, 2019, current OVEC costs were being recovered through AES Ohio’s reconciliation rider which was authorized as part of the ESP 3. Beginning January 1, 2020, AES Ohio began recovering its current net OVEC costs through its Legacy Generation Rider, established pursuant to ORC 4928.148.

Regulatory compliance costs represent the long-term portion of the regulatory compliance costs which include the following costs: (i) Consumer Education Campaign, (ii) Retail Settlement System, (iii) Generation Separation, (iv) Bill Format Redesign, (v) Green Pricing Tariff and (vi) Supplier Consolidated Billing. All of these costs except for Generation Separation earn a return. These costs were being recovered over a three-year period that began November 1, 2017 through a rider approved in the ESP 3. That rider was eliminated with the approval of the ESP 1 rate plan, so the balance as of December 18, 2019 remains a regulatory asset for future recovery.

Rate case expenses represents costs associated with preparing distribution rate cases. AES Ohio was granted recovery of these costs for the 2015 case which do not earn a return, as part of the DRO. Recovery of costs for the 2020 case were included in the pending filing.

Smart Grid and AMI costs represent costs incurred as a result of studying and developing distribution system upgrades and implementation of AMI. In a PUCO order on January 5, 2011, the PUCO indicated that it expects AES Ohio to continue to monitor other utilities’ Smart Grid and AMI programs and to explore the potential benefits of investing in the Smart Grid Plan and AMI programs and that AES Ohio will, when appropriate, file new Smart Grid and/or AMI business cases in the future. These costs are included in the October 23, 2020 settlement described above.

Unamortized loss on reacquired debt represents losses on long-term debt reacquired or redeemed in prior periods that have been deferred. These deferred losses are being amortized over the lives of the original issues in accordance with the rules of the FERC and the PUCO.

Deferred storm costs represent the long-term portion of deferred costs for major storms which occurred during 2019, 2020 and 2021. AES Ohio plans to file petitions seeking recovery of storm costs. Recovery of these costs is probable, but not certain.

Vegetation management costs represents costs incurred from outside contractors for tree trimming and other vegetation management services. Calculation terms were agreed to in the stipulation approved in the DRO. The terms were an annual baseline of $10.7 million in 2018 and $15.7 million thereafter. Amounts over the baseline will be deferred subject to an annual deferral maximum of $4.6 million. Annual spending less than the vegetation management baseline amount will result in a reduction to the regulatory asset or creation of a regulatory liability. These costs are included in AES Ohio's pending distribution rate case application.

Decoupling deferral represents the change in the revenue requirement based on a per customer methodology in the stipulation approved in the DRO and includes deferrals through December 18, 2019. These costs were previously recovered through a Decoupling Rider; however, AES Ohio withdrew its application in the ESP 3 and in doing so, the PUCO ordered on December 18, 2019 in the ESP 1 order, that AES Ohio no longer has a Decoupling Rider. As described above, AES Ohio filed a petition seeking authority to record a regulatory asset to accrue revenues that would have otherwise been collected through the Decoupling Rider.

Uncollectible deferral represents deferred uncollectible expense associated with the nonpayment of electric service, less the revenues associated with the bypassable uncollectible portion of the standard offer rate. The DRO established that these costs would be recovered in a rider outside of base rates, thus no uncollectible expense is included in base rates. These costs are included in our pending distribution rate case.

Estimated costs of removal - regulated property reflect an estimate of amounts collected in customer rates for costs that are expected to be incurred in the future to remove existing transmission and distribution property from service when the property is retired.

Deferred income taxes payable through rates represent deferred income tax liabilities recognized from the normalization of flow-through items as the result of taxes previously charged to customers. A deferred income tax asset or liability is created from a difference in income recognition between tax laws and accounting methods. As a regulated utility, AES Ohio includes in ratemaking the impacts of current income taxes and changes in deferred income tax liabilities or assets. Accordingly, this liability reflects the estimated deferred taxes AES Ohio expects to return to customers in future periods.

TCJA regulatory liability represents the long-term portion of both protected and unprotected excess ADIT for both transmission and distribution portions, grossed up to reflect the revenue requirement. As a part of the DRO, AES Ohio agreed that savings from the TCJA attributable to distribution facilities, including the excess ADIT and the regulatory liability, constitute amounts that will be returned to customers. As a result of the TCJA and subsequent DRO, AES Ohio entered into a stipulation to resolve all remaining TCJA items related to its distribution rates, including a proposal to return no less than $4.0 million per year for the first five years unless fully returned in the first five years via a tax savings cost rider for the distribution portion of the balance. On September 26, 2019, an order approved the stipulation in its entirety.

Transmission Formula Rate Credits liability represents the amounts due to customers as a result of the implementation of transmission formula rates, which are adjusted each year based on actual revenue and costs from a previous year, as described above under FERC Proceedings.

PJM Transmission Enhancement Settlement liability represents the Transmission Enhancement Settlement charges for which AES Ohio is due a refund per FERC Order EL05-121-009 issued on May 31, 2018. The Order states that customers are due a refund for part of these charges which will be received starting August 2018 through 2025. Refunds received will be returned to customers via the transmission cost rider.

Postretirement benefits represent the qualifying FASC 715 “Compensation – Retirement Benefits” gains related to our regulated operations that, for ratemaking purposes, are probable of being reflected in future rates. We recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory liability represents the regulated portion that would otherwise be reflected as a gain to OCI.

Subsidiaries [Member]

Schedule of Regulatory Assets and Liabilities [Text Block]

Regulatory Matters

AES Ohio ESP and SEET Proceedings, Comprehensive Settlement

Ohio law requires utilities to file either an ESP or MRO plan to establish SSO rates. From November 1, 2017 through December 18, 2019, AES Ohio operated pursuant to an approved ESP plan, which was initially approved on October 20, 2017 (ESP 3). On December 18, 2019, the PUCO approved AES Ohio's Notice of Withdrawal and reversion to its prior rate plan (ESP 1). Among other items, the PUCO Order approving the ESP 1 rate plan includes:

•Reinstating the non-bypassable RSC Rider, which provides annual revenues of approximately $79.0 million;

•Continuation of AES Ohio's Transmission Cost Recovery Rider, Storm Rider and the bypassable standard offer energy rate for AES Ohio's customers based on competitive bid auctions; and

•A placeholder rider to recover grid modernization costs, called the Infrastructure Investment Rider.

Separate from the ESP process, AES Ohio filed a petition seeking recovery of ongoing OVEC costs through a Legacy Generation Rider and was granted approval effective January 1, 2020.

On October 23, 2020, AES Ohio entered into a Stipulation and Recommendation (the Settlement) with the staff of the PUCO and various customers, and organizations representing customers of AES Ohio and certain other parties with respect to, among other matters, AES Ohio's applications pending at the PUCO for (i) approval of AES Ohio's plan to modernize its distribution grid (the Smart Grid Plan), (ii) findings that DP&L passed the SEET for 2018 and 2019, and (iii) findings that AES Ohio's current ESP 1 satisfies the SEET and the more favorable in the aggregate (MFA) regulatory test. A hearing was held in January 2021 for consideration of this settlement and on June 16, 2021, the PUCO issued their opinion and order accepting the stipulation as filed. Several applications for rehearing of the PUCO's orders relating to the Settlement were filed and denied on December 1, 2021. The OCC appealed this final PUCO Order to the Ohio Supreme Court on December 6, 2021; this appeal remains pending.

The settlement provides, among other items, for the following:

•Approval of the Smart Grid Plan outlined in the Smart Grid Plan application filed by AES Ohio with the PUCO, as modified by the terms of the settlement, including, subject to offsetting operational benefits and certain other conditions, a return on and recovery of up to $249.0 million of Smart Grid Plan Phase 1 capital investments and recovery of operational and maintenance expenses through AES Ohio's existing Infrastructure Investment Rider for a term of four years, under an aggregate cap of $267.6 million on the amount of such investments and expenses that is recoverable, and an acknowledgement that AES Ohio may file a subsequent application with the PUCO within three years seeking approvals for Phase 2 of the Smart Grid Plan;

•A commitment by AES Ohio to invest in a customer information system and supporting technologies during Phase 1 of the Smart Grid Plan, with AES Ohio recovering a return on and of prudently incurred capital investments and operational and maintenance expenses, including deferred operational and maintenance expense amounts, in a future rate case;

•Determinations that AES Ohio’s ESP 1 satisfies the prospective SEET and the MFA regulatory test and that AES Ohio satisfies the retroactive SEET for 2018 and 2019.

•A commitment by AES Ohio to file an application with the PUCO no later than October 1, 2023 for a new electric security plan that does not seek to implement certain non-bypassable charges, including those related to provider of last resort risks, stability, or financial integrity; and

•AES Ohio shareholder funding, in an aggregate amount of approximately $30.0 million over four years, for certain economic development discounts, incentives, and grants to certain commercial and industrial customers, including hospitals and manufacturers, assistance for low-income customers as well as the residents and businesses of the City of Dayton, and promotion of solar and resiliency development within AES Ohio's service territory.

Certain parties which intervened in the ESP proceedings have filed petitions for rehearing of the recent PUCO ESP orders; some of which seek to eliminate AES Ohio's RSC from the ESP 1 rates that are currently in place and others seek to re-implement ESP 3, but without the DMR. We are unable to predict the outcomes of these petitions, but if these result in terms that are more adverse than AES Ohio's current ESP rate plan, it could have a material adverse effect on our results of operations, financial condition and cash flows.

Consistent with AES' earlier statement of intent, with the PUCO's issuance of their opinion and order, during 2021 DPL received $150.0 million from AES and, in turn, DPL made a capital contribution of $150.0 million to AES Ohio to enable AES Ohio to seek to improve its infrastructure and modernize its grid while maintaining liquidity.

Decoupling

On January 23, 2021 AES Ohio filed with the PUCO requesting approval to defer its decoupling costs consistent with the methodology approved in its Distribution Rate Case. An evidentiary hearing was held in May 2021. If approved, deferral would be effective December 18, 2019 and going forward would reduce impacts of weather, energy efficiency programs and economic changes in customer demand.

COVID-19

In response to the PUCO’s COVID-19 emergency orders, AES Ohio filed an Application on March 23, 2020, requesting waivers of certain rule and tariff requirements and deferral of certain costs and revenues including those related to deposits and reconnection fees, late payment fees, credit card fees; and waived or uncollected amounts associated with putting customers on payment plans. On May 20, 2020, the PUCO approved the application and required AES Ohio to file a plan outlining the timing and steps it plans to take in an effort to return to normal operations. The authorized deferral of those certain costs and revenues must be offset by COVID-19 related savings. AES Ohio filed its plan on July 15, 2020 and was approved by the PUCO on August 12, 2020. As a result, AES Ohio has recorded a $0.9 million and $1.2 million regulatory asset as of December 31, 2021 and 2020, respectively. Recovery of these deferrals will be addressed in a future rate proceeding.

Distribution Rate Case

On November 30, 2020, AES Ohio filed a new distribution rate case with the PUCO. This rate case proposes a revenue increase of $120.8 million per year and incorporates the DIR investments that were planned and approved in the last rate case but not yet included in distribution rates, other distribution investments since September 2015 and investments necessitated by the tornados that occurred on Memorial Day in 2019. The rate case also includes a proposal for increased tree-trimming expenses and certain customer demand-side management programs and recovery of prior-approved regulatory assets for tree trimming, uncollectible expenses and rate case expense. A hearing on this case was held in January 2022, and the case is pending a commission order.

FERC Proceedings

On March 3, 2020, AES Ohio filed an application before the FERC seeking to change its existing stated transmission rates to formula transmission rates that would be updated each calendar year. This filing was approved and made effective as of May 3, 2020, subject to possible refunds if the approved rates were modified. An uncontested settlement was filed December 10, 2020 and approved April 15, 2021. Among other things, the settlement established new depreciation rates for AES Ohio’s transmission assets and an authorized return on equity of 9.85%, and started an amortization process to return excess deferred taxes created by the TCJA. Because the approved settlement rates were lower than the proposed rates that went into effect, AES Ohio has accrued and/or paid refunds of approximately $4.4 million to users of the transmission system through December 31, 2021 through credits on PJM bills. Pursuant to the approved mechanisms and formula, transmission rates were adjusted, effective on January 1, 2022, to reflect projected 2022 costs, adjusted to true-up the projections of revenues and costs incurred during 2020. Adjustments to true-up 2021 revenues and costs will be reflected in 2023 formula transmission rates. At December 31, 2021, AES Ohio has recorded a liability of $12.6 million, with $0.4 million classified as current, representing credits owed to customers for the 2020 and 2021 annual true-ups.

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 OATT. The FERC order approved the settlement which reduces AES Ohio’s transmission costs through PJM beginning in August 2018, including credits to reimburse AES Ohio for amounts overcharged in prior years. AES Ohio estimates the prior overcharge by PJM to be $40.6 million, of which approximately $33.8 million has been repaid to AES Ohio through December 31, 2021 and $1.7 million is classified as current in "Accounts receivable, net" and $5.1 million is classified as non-current in "Other non-current assets" on the accompanying Balance Sheet. All of the transmission charges and credits impacted by this FERC order are items that are included for full recovery in AES Ohio’s non-bypassable TCRR. Accordingly, AES Ohio has also established offsetting regulatory liabilities. While this development will have a temporary cash flow benefit to AES Ohio, there is no impact to operating income or net income as all credits will be passed to AES Ohio’s customers through the TCRR, which began in November 2018.

Regulatory Assets and Liabilities

In accordance with FASC 980, we have recognized total regulatory assets of $201.3 million and $221.1 million at December 31, 2021 and 2020, respectively, and total regulatory liabilities of $243.9 million and $236.3 million at December 31, 2021 and 2020, respectively. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 1 – Overview and Summary of Significant Accounting Policies for accounting policies regarding Regulatory Assets and Liabilities.

The following table presents AES Ohio’s Regulatory assets and liabilities:

	Type of Recovery	Amortization Through	December 31,
$ in millions			2021		2020
Regulatory assets, current:
Undercollections to be collected through rate riders	A/B	2022	$	23.9	$	26.8
Rate case expenses being recovered in base rates	B	2022	0.6		0.7
Total regulatory assets, current			24.5		27.5
Regulatory assets, non-current:
Pension benefits	B	Ongoing	76.2		94.4
Unrecovered OVEC charges	C	Undetermined	28.9		28.9
Regulatory compliance costs	B	Undetermined	6.3		6.3
Smart grid and AMI costs	B	2026	5.2		8.5
Unamortized loss on reacquired debt	B	Various	4.3		7.1
Deferred storm costs	A	Undetermined	15.2		11.5
Deferred rate case costs	B	Undetermined	1.8		—
Deferred vegetation management and other	A/B	Undetermined	18.7		15.7
Decoupling deferral	C	Undetermined	13.8		13.8
Uncollectible deferral	C	Undetermined	6.4		7.4
Total regulatory assets, non-current			176.8		193.6
Total regulatory assets			$	201.3	$	221.1
Regulatory liabilities, current:
Overcollection of costs to be refunded through rate riders	A/B	2022	$	14.2	$	18.0
Transmission formula rate credits	A	2022	0.4		—
Total regulatory liabilities, current			14.6		18.0
Regulatory liabilities, non-current:
Estimated costs of removal - regulated property		Not Applicable	145.2		138.8
Deferred income taxes payable through rates		Various	57.5		61.2
TCJA regulatory liability	B	Ongoing	6.5		7.2
Transmission formula rate credits	A	2023	12.2		—
PJM transmission enhancement settlement	A	2025	5.1		7.0
Postretirement benefits	B	Ongoing	2.8		4.1
Total regulatory liabilities, non-current			229.3		218.3
Total regulatory liabilities			$	243.9	$	236.3

A – Recovery of incurred costs plus rate of return.

B – Recovery of incurred costs without a rate of return.

C – Recovery not yet determined, but recovery is probable of occurring in future rate proceedings.

Current regulatory assets and liabilities primarily represent costs that are being recovered per specific rate order; recovery for the remaining costs is probable, but not certain. These costs include: (i) the Energy Efficiency Rider, (ii) the Alternative Energy Rider, (iii) the Competitive Bidding Rider and (iv) the Transmission Cost Recovery Rider. Also included are the current portion of rate case expense costs, storm costs, Smart Grid O&M and Smart Grid R&D, which do not earn a return and are described in greater detail below. Current regulatory liabilities include the overcollection of economic development costs, legacy generation costs and certain transmission related costs, including the current portion of the PJM transmission enhancement settlement, the transmission rate true-up and the TCJA regulatory liability (see above).

AES Ohio is earning a return on $8.1 million of this net current deferral including: (i) the Energy Efficiency Rider, (ii) the Alternative Energy Rider, (iii) the Competitive Bidding Rider and (iv) the Transmission Cost Recovery Rider. These regulatory assets are partially offset by the overcollection of economic development costs and legacy generation costs.

Pension benefits represent the qualifying FASC 715 “Compensation - Retirement Benefits” costs of our regulated operations that for ratemaking purposes are deferred for future recovery. We recognize an asset for a plan’s

overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory asset represents the regulated portion that would otherwise be charged as a loss to OCI. As per PUCO and FERC precedents, these costs are probable of future rate recovery.

Unrecovered OVEC charges includes the portion of charges from OVEC that were not recoverable through AES Ohio’s Fuel Rider from October 2014 through October 2017. Additionally, it includes net OVEC costs from December 19, 2019 through December 31, 2019. AES Ohio expects to recover these costs through a future rate proceeding. Beginning on November 1, 2017, through December 18, 2019, current OVEC costs were being recovered through AES Ohio’s reconciliation rider which was authorized as part of the ESP 3. Beginning January 1, 2020, AES Ohio began recovering its current net OVEC costs through its Legacy Generation Rider, established pursuant to ORC 4928.148.

Regulatory compliance costs represent the long-term portion of the regulatory compliance costs which include the following costs: (i) Consumer Education Campaign, (ii) Retail Settlement System, (iii) Generation Separation, (iv) Bill Format Redesign, (v) Green Pricing Tariff and (vi) Supplier Consolidated Billing. All of these costs except for Generation Separation earn a return. These costs were being recovered over a three-year period that began November 1, 2017 through a rider approved in the ESP 3. That rider was eliminated with the approval of the ESP 1 rate plan, so the balance as of December 18, 2019 remains a regulatory asset for future recovery.

Rate case expenses represents costs associated with preparing distribution rate cases. AES Ohio was granted recovery of these costs for the 2015 case which do not earn a return, as part of the DRO. Recovery of costs for the 2020 case were included in the pending filing.

Smart Grid and AMI costs represent costs incurred as a result of studying and developing distribution system upgrades and implementation of AMI. In a PUCO order on January 5, 2011, the PUCO indicated that it expects AES Ohio to continue to monitor other utilities’ Smart Grid and AMI programs and to explore the potential benefits of investing in the Smart Grid Plan and AMI programs and that AES Ohio will, when appropriate, file new Smart Grid and/or AMI business cases in the future. These costs are included in the October 23, 2020 settlement described above.

Unamortized loss on reacquired debt represents losses on long-term debt reacquired or redeemed in prior periods that have been deferred. These deferred losses are being amortized over the lives of the original issues in accordance with the rules of the FERC and the PUCO.

Deferred storm costs represent the long-term portion of deferred costs for major storms which occurred during 2019, 2020 and 2021. AES Ohio plans to file petitions seeking recovery of storm costs. Recovery of these costs is probable, but not certain.

Vegetation management costs represents costs incurred from outside contractors for tree trimming and other vegetation management services. Calculation terms were agreed to in the stipulation approved in the DRO. The terms were an annual baseline of $10.7 million in 2018 and $15.7 million thereafter. Amounts over the baseline will be deferred subject to an annual deferral maximum of $4.6 million. Annual spending less than the vegetation management baseline amount will result in a reduction to the regulatory asset or creation of a regulatory liability. These costs are included in AES Ohio's pending distribution rate case application.

Decoupling deferral represents the change in the revenue requirement based on a per customer methodology in the stipulation approved in the DRO and includes deferrals through December 18, 2019. These costs were previously recovered through a Decoupling Rider; however, AES Ohio withdrew its application in the ESP 3 and in doing so, the PUCO ordered on December 18, 2019 in the ESP 1 order, that AES Ohio no longer has a Decoupling Rider. As described above, AES Ohio filed a petition seeking authority to record a regulatory asset to accrue revenues that would have otherwise been collected through the Decoupling Rider.

Uncollectible deferral represents deferred uncollectible expense associated with the nonpayment of electric service, less the revenues associated with the bypassable uncollectible portion of the standard offer rate. The DRO established that these costs would be recovered in a rider outside of base rates, thus no uncollectible expense is included in base rates. These costs are included in our pending distribution rate case.

Estimated costs of removal - regulated property reflect an estimate of amounts collected in customer rates for costs that are expected to be incurred in the future to remove existing transmission and distribution property from service when the property is retired.

Deferred income taxes payable through rates represent deferred income tax liabilities recognized from the normalization of flow-through items as the result of taxes previously charged to customers. A deferred income tax asset or liability is created from a difference in income recognition between tax laws and accounting methods. As a regulated utility, AES Ohio includes in ratemaking the impacts of current income taxes and changes in deferred income tax liabilities or assets. Accordingly, this liability reflects the estimated deferred taxes AES Ohio expects to return to customers in future periods.

TCJA regulatory liability represents the long-term portion of both protected and unprotected excess ADIT for both transmission and distribution portions, grossed up to reflect the revenue requirement. As a part of the DRO, AES Ohio agreed that savings from the TCJA attributable to distribution facilities, including the excess ADIT and the regulatory liability, constitute amounts that will be returned to customers. As a result of the TCJA and subsequent DRO, AES Ohio entered into a stipulation to resolve all remaining TCJA items related to its distribution rates, including a proposal to return no less than $4.0 million per year for the first five years unless fully returned in the first five years via a tax savings cost rider for the distribution portion of the balance. On September 26, 2019, an order approved the stipulation in its entirety.

Transmission Formula Rate Credits liability represents the amounts due to customers as a result of the implementation of transmission formula rates, which are adjusted each year based on actual revenue and costs from a previous year, as described above under FERC Proceedings.

PJM Transmission Enhancement Settlement liability represents the Transmission Enhancement Settlement charges for which AES Ohio is due a refund per FERC Order EL05-121-009 issued on May 31, 2018. The Order states that customers are due a refund for part of these charges which will be received starting August 2018 through 2025. Refunds received will be returned to customers via the transmission cost rider.

Postretirement benefits represent the qualifying FASC 715 “Compensation – Retirement Benefits” gains related to our regulated operations that, for ratemaking purposes, are probable of being reflected in future rates. We recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory liability represents the regulated portion that would otherwise be reflected as a gain to OCI.

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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

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Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Entity Information [Line Items]

Fair Value Measurements

Fair Value

The fair values of our financial instruments are based on published sources for pricing when possible. We rely on valuation models only when no other method is available to us. The fair value of our financial instruments represents estimates of possible value that may or may not be realized in the future.

The table below presents the fair value and cost of our non-derivative financial instruments at December 31, 2021 and 2020.

	December 31, 2021				December 31, 2020
$ in millions	Cost		Fair Value		Cost		Fair Value
Assets
Money market funds	$	0.4	$	0.4	$	0.3	$	0.3
Equity securities	1.9		5.1		2.1		4.5
Debt securities	3.8		3.9		4.0		4.1
Total assets	$	6.1	$	9.4	$	6.4	$	8.9
	Carrying Value		Fair Value		Carrying Value		Fair Value
Liabilities
Long-term debt	$	1,395.5	$	1,519.7	$	1,393.6	$	1,571.6

Fair Value Hierarchy

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. These inputs are then categorized as:

•Level 1 (quoted prices in active markets for identical assets or liabilities);

•Level 2 (observable inputs such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active); or

•Level 3 (unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability).

Valuations of assets and liabilities reflect the value of the instrument including the values associated with counterparty risk. We include our own credit risk and our counterparty’s credit risk in our calculation of fair value using global average default rates based on an annual study conducted by a large rating agency.

We did not have any transfers of the fair values of our financial instruments among Level 1, Level 2 or Level 3 of the fair value hierarchy during the years ended December 31, 2021 and 2020.

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 debt is presented at the carrying value, net of unamortized premium or discount, in the financial statements. The debt amounts include the current portion payable in the next twelve months and have maturities that range from 2025 to 2061.

Master Trust Assets

AES Ohio 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. 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 non-current assets on the consolidated balance sheets and classified as equity securities. Gains and losses on these assets were not material during the years ended December 31, 2021, 2020 or 2019.

The fair value of assets and liabilities at December 31, 2021 and 2020 and the respective category within the fair value hierarchy for DPL was determined as follows:

$ in millions	Fair Value at December 31, 2021 (a)								Fair Value at December 31, 2020 (a)
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Master trust assets
Money market funds	$	0.4	$	—	$	—	$	0.4	$	0.3	$	—	$	—	$	0.3
Equity securities	—		5.1		—		5.1		—		4.5		—		4.5
Debt securities	—		3.9		—		3.9		—		4.1		—		4.1
Total assets	$	0.4	$	9.0	$	—	$	9.4	$	0.3	$	8.6	$	—	$	8.9
Liabilities
Long-term debt	$	—	$	1,502.5	$	17.2	$	1,519.7	$	—	$	1,554.2	$	17.4	$	1,571.6
Total liabilities	$	—	$	1,502.5	$	17.2	$	1,519.7	$	—	$	1,554.2	$	17.4	$	1,571.6

(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 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.

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. Additional Level 3 disclosures are not presented since our long-term debt is not recorded at fair value.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

Fair Value Measurements

Fair Value

The fair values of our financial instruments are based on published sources for pricing when possible. We rely on valuation models only when no other method is available to us. The fair value of our financial instruments represents estimates of possible value that may or may not be realized in the future.

The table below presents the fair value and cost of our non-derivative instruments at December 31, 2021 and 2020. See also Note 5 – Derivative Instruments and Hedging Activities for the fair values of our derivative instruments.

	December 31, 2021				December 31, 2020
$ in millions	Cost		Fair Value		Cost		Fair Value
Assets
Money market funds	$	0.4	$	0.4	$	0.3	$	0.3
Equity securities	1.9		5.1		2.1		4.5
Debt securities	3.8		3.9		4.0		4.1
Total assets	$	6.1	$	9.4	$	6.4	$	8.9
	Carrying Value		Fair Value		Carrying Value		Fair Value
Liabilities
Long-term debt	$	574.3	$	642.6	$	574.1	$	656.0

Fair Value Hierarchy

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. These inputs are then categorized as:

•Level 1 (quoted prices in active markets for identical assets or liabilities);

•Level 2 (observable inputs such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active); or

•Level 3 (unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability).

Valuations of assets and liabilities reflect the value of the instrument including the values associated with counterparty risk. We include our own credit risk and our counterparty’s credit risk in our calculation of fair value using global average default rates based on an annual study conducted by a large rating agency.

We did not have any transfers of the fair values of our financial instruments among Level 1, Level 2 or Level 3 of the fair value hierarchy during the years ended December 31, 2021 and 2020.

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 debt is presented at the carrying value, net of unamortized premium or discount, in the financial statements. The debt amounts include the current portion payable in the next twelve months and have maturities that range from 2040 to 2061.

Master Trust Assets

AES Ohio 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. 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 non-current assets on the balance sheets and classified as equity securities. Gains and losses on these assets were not material during the years ended December 31, 2021, 2020 or 2019.

The fair value of assets and liabilities at December 31, 2021 and 2020 and the respective category within the fair value hierarchy for AES Ohio was determined as follows:

$ in millions	Fair Value at December 31, 2021 (a)								Fair Value at December 31, 2020 (a)
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Money market funds	$	0.4	$	—	$	—	$	0.4	$	0.3	$	—	$	—	$	0.3
Equity securities	—		5.1		—		5.1		—		4.5		—		4.5
Debt securities	—		3.9		—		3.9		—		4.1		—		4.1
Total assets	$	0.4	$	9.0	$	—	$	9.4	$	0.3	$	8.6	$	—	$	8.9
Liabilities
Long-term debt	$	—	$	625.4	$	17.2	$	642.6	$	—	$	638.6	$	17.4	$	656.0
Total liabilities	$	—	$	625.4	$	17.2	$	642.6	$	—	$	638.6	$	17.4	$	656.0

(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 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.

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. Additional Level 3 disclosures are not presented since our long-term debt is not recorded at fair value.

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Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

DPL previously entered into various financial instruments, including derivative financial instruments. We used derivatives principally to manage the interest rate risk associated with our long-term debt. The derivative instruments were used for risk management purposes and were designated as cash flow hedges if they qualified under FASC 815 for accounting purposes.

In August 2020, the two interest rate swaps to hedge the variable interest on the $140.0 million variable interest rate tax-exempt First Mortgage Bonds expired, as the associated debt reached maturity. The interest rate swaps had a combined notional amount of $140.0 million and settled monthly based on a one-month LIBOR. The AOCL associated with the swaps was amortized out of AOCL into interest expense over the life of the underlying debt.

We also 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 AOCL into interest expense.

We used the income approach to value the swaps, which consists of forecasting future cash flows based on

contractual notional amounts and applicable and available market data as of the valuation date. The most common market data inputs used in the income approach include volatilities, spot and forward benchmark interest rates (LIBOR). Forward rates with the same tenor as the derivative instrument being valued are generally obtained from published sources, with these forward rates being assessed quarterly at a portfolio-level for reasonableness versus comparable published rates. We reclassified gains and losses on the swaps out of AOCL and into earnings in those periods in which hedged interest payments occurred.

The following tables provide information on gains or losses recognized in AOCL for the cash flow hedges for the periods indicated:

	Years ended December 31,
	2021		2020		2019
$ in millions (net of tax)	Interest Rate Hedge		Interest Rate Hedge		Power		Interest Rate Hedge
Beginning accumulated derivative gain in AOCL	$	13.6	$	14.5	$	0.4	$	16.6
Net losses associated with current period hedging transactions	—		—		—		(1.0)
Net gains reclassified to earnings:
Interest expense	(0.8)		(0.9)		—		(1.1)
Income from discontinued operations before income tax	—		—		(0.4)		—
Ending accumulated derivative gain in AOCL	$	12.8	$	13.6	$	—	$	14.5
Portion expected to be reclassified to earnings in the next twelve months	$	(0.8)

THE DAYTON POWER AND LIGHT COMPANY [Member]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

AES Ohio previously entered into various financial instruments, including derivative financial instruments. We used derivatives principally to manage the interest rate risk associated with our long-term debt. The derivative instruments were used for risk management purposes and were designated as cash flow hedges if they qualified under FASC 815 for accounting purposes.

In August 2020, the two interest rate swaps to hedge the variable interest on the $140.0 million variable interest rate tax-exempt First Mortgage Bonds expired, as the associated debt reached maturity. The interest rate swaps had a combined notional amount of $140.0 million and settled monthly based on a one-month LIBOR. The AOCL associated with the swaps was amortized out of AOCL into interest expense over the life of the underlying debt.

We used the income approach to value the swaps, which consists of forecasting future cash flows based on

contractual notional amounts and applicable and available market data as of the valuation date. The most common market data inputs used in the income approach include volatilities, spot and forward benchmark interest rates (LIBOR). Forward rates with the same tenor as the derivative instrument being valued are generally obtained from published sources, with these forward rates being assessed quarterly at a portfolio-level for reasonableness versus comparable published rates. We reclassified gains and losses on the swaps out of AOCL and into earnings in those periods in which hedged interest payments occurred.

The following tables provide information on gains or losses recognized in AOCL for the cash flow hedges for the periods indicated:

	Years ended December 31,
	2020		2019
$ in millions (net of tax)	Interest Rate Hedge		Interest Rate Hedge
Beginning accumulated derivative gain / (loss) in AOCL	$	(0.4)	$	0.6
Net losses associated with current period hedging transactions	(0.2)		(0.8)
Net losses / (gains) reclassified to earnings:
Interest expense	0.6		(0.2)
Ending accumulated derivative loss in AOCL	$	—	$	(0.4)

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Debt

12 Months Ended

Dec. 31, 2021

Debt Instrument [Line Items]

Debt Disclosure

Long-term debt

Long-term debt is as follows:

$ in millions	Interest Rate	Maturity	December 31, 2021		December 31, 2020
First Mortgage Bonds	3.95%	2049	$	425.0	$	425.0
First Mortgage Bonds	3.20%	2040	140.0		140.0
U.S. Government note	4.20%	2061	17.2		17.4
Unamortized deferred financing costs			(5.4)		(5.7)
Unamortized debt discounts and premiums, net			(2.5)		(2.6)
Total long-term debt at subsidiary			574.3		574.1
Senior unsecured bonds	4.125%	2025	415.0		415.0
Senior unsecured bonds	4.35%	2029	400.0		400.0
Note to DPL Capital Trust II (a)	8.125%	2031	15.6		15.6
Unamortized deferred financing costs			(8.6)		(10.2)
Unamortized debt discounts and premiums, net			(0.8)		(0.9)
Total long-term debt			1,395.5		1,393.6
Less: current portion			(0.2)		(0.2)
Long-term debt, net of current portion			$	1,395.3	$	1,393.4

(a)    Note payable to related party. See Note 11 – Related Party Transactions for additional information.

At December 31, 2021, maturities of long-term debt are summarized as follows:

Due during the years ending December 31,
$ in millions
2022	$	0.2
2023	0.2
2024	0.2
2025	415.2
2026	0.2
Thereafter	996.8
	1,412.8
Unamortized discounts	(3.3)
Deferred financing costs, net	(14.0)
Total long-term debt	$	1,395.5

Revolving Credit Agreement

At December 31, 2021 and December 31, 2020, the DPL Credit Agreement had outstanding borrowings of $65.0 million and $80.0 million, respectively. At December 31, 2021 and December 31, 2020 the AES Ohio Credit Agreement had outstanding borrowings of $0.0 million and $20.0 million, respectively.

Significant Transactions

On July 31, 2020, AES Ohio issued $140.0 million of First Mortgage Bonds and on August 3, 2020 used the proceeds to purchase at par value the $140.0 million of outstanding tax-exempt Ohio Air Quality Development Authority (OAQDA) Collateralized Pollution Control Revenue Refunding Bonds that had been issued in 2015. The new First Mortgage Bonds carry an interest rate of 3.20% and mature on July 31, 2040. The OAQDA Revenue bonds have not been legally cancelled and can be re-issued at the discretion of AES Ohio at any time. These bonds will be held in trust while we continue to evaluate market conditions and explore suitable long-term financing alternatives. Accordingly, as of December 31, 2021 and 2020, the $140.0 million variable rate OAQDA Revenue bonds are not treated as being outstanding in the Consolidated Balance Sheets.

On June 1, 2020 DPL amended its secured revolving credit facility. As a result of the amendment, the borrowing limit was reduced from $125.0 million to $110.0 million, the Total Debt to EBITDA covenant was eliminated, the EBITDA to Interest Expense covenant was reduced from 2.25 to 1.00 to 1.70 to 1.00, increasing to 1.75 to 1.00 as of September 30, 2022 and 2.00 to 1.00 as of December 31, 2022, and a trailing-twelve months minimum EBITDA covenant of $125.0 million was added, increasing to $130.0 million as of September 30, 2022 and $150.0 million as of December 31, 2022. Starting with the quarter ended September 30, 2021, the borrowing limit will be reduced by $5.0 million per quarter should DPL’s Total Debt to EBITDA ratio calculated for the period of four consecutive quarters exceed 7.00 to 1.00. As of December 31, 2021, DPL exceeded this ratio and the borrowing limit was reduced from $105.0 million to $100.0 million.

On June 19, 2020 DPL closed a $415.0 million issuance of senior unsecured notes. These notes carry an interest rate of 4.125% and mature on July 1, 2025. Proceeds from the issuance and cash on hand were used to redeem in-full the remaining balance of $380.0 million of DPL's 7.25% senior unsecured notes. These bonds were redeemed at par plus accrued interest and a make-whole premium of $30.8 million on July 20, 2020.

Debt Covenants and Restrictions

DPL’s revolving credit agreement has two financial covenants. The first financial covenant, a minimum EBITDA, calculated at the end of each fiscal quarter for the four prior fiscal quarters, of $125.0 million is required, stepping up to $130.0 million on September 30, 2022 and $150.0 million on December 31, 2022. As of December 31, 2021, this financial covenant was in compliance.

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 1.70 to 1.00, and steps up to 1.75 to 1.00 on September 30, 2022 and 2.00 to 1.00 as of December 31, 2022. As of December 31, 2021, this financial covenant was in compliance.

DPL’s secured revolving credit agreement 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 a result, as of December 31, 2021, DPL was prohibited from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries).

AES Ohio's unsecured revolving credit facility and Bond Purchase Agreement (financing document entered into in connection with the issuance of AES Ohio's First Mortgage Bonds, on July 31, 2020) has one financial covenant. The covenant 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. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. This financial covenant was in compliance as of December 31, 2021.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends to its parent, DPL. As of December 31, 2021, AES Ohio and DPL were in compliance with all debt covenants, including the financial covenants described above.

Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Debt Instrument [Line Items]

Debt

Long-term debt

Long-term debt is as follows:

$ in millions	Interest Rate	Maturity	December 31, 2021		December 31, 2020
First Mortgage Bonds	3.95%	2049	$	425.0	$	425.0
First Mortgage Bonds	3.2%	2040	140.0		140.0
U.S. Government note	4.2%	2061	17.2		17.4
Unamortized deferred financing costs			(5.4)		(5.7)
Unamortized debt discount			(2.5)		(2.6)
Total long-term debt			574.3		574.1
Less: current portion			(0.2)		(0.2)
Long-term debt, net of current portion			$	574.1	$	573.9

At December 31, 2021, maturities of long-term debt are summarized as follows:

Due during the years ending December 31,
$ in millions
2022	$	0.2
2023	0.2
2024	0.2
2025	0.2
2026	0.2
Thereafter	581.2
	582.2
Unamortized discounts	(5.4)
Deferred financing costs, net	(2.5)
Total long-term debt	$	574.3

Revolving Credit Agreement

At December 31, 2021 and 2020 the AES Ohio Credit Agreement had outstanding borrowings of $0.0 million and $20.0 million, respectively.

Significant Transactions

On July 31, 2020, AES Ohio issued $140.0 million of First Mortgage Bonds and on August 3, 2020 used the proceeds to purchase at par value the $140.0 million of outstanding tax-exempt Ohio Air Quality Development Authority (OAQDA) Collateralized Pollution Control Revenue Refunding Bonds that had been issued in 2015. The new First Mortgage Bonds carry an interest rate of 3.20% and mature on July 31, 2040. The OAQDA Revenue bonds have not been legally cancelled and can be re-issued at the discretion of AES Ohio at any time. These bonds will be held in trust while we continue to evaluate market conditions and explore suitable long-term financing alternatives. Accordingly, as of December 31, 2021 and 2020, the $140.0 million variable rate OAQDA Revenue bonds are not treated as being outstanding in the Balance Sheets.

Debt Covenants and Restrictions

AES Ohio's unsecured revolving credit facility and Bond Purchase Agreement (financing document entered into in connection with the issuance of AES Ohio's First Mortgage Bonds, on July 31, 2020) has one financial covenant. The covenant 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. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. This financial covenant was in compliance as of December 31, 2021.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends to its parent, DPL. As of December 31, 2021, AES Ohio was in compliance with all debt covenants, including the financial covenants described above.

Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage.

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Income Taxes

12 Months Ended

Dec. 31, 2021

Income Taxes [Line Items]

Income Taxes

Income Taxes

DPL’s components of income tax expense for both continuing and discontinued operations were as follows:

	Years ended December 31,
$ in millions	2021		2020		2019
Components of tax benefit
Federal - current	$	(5.5)	$	(45.1)	$	(22.0)
State and Local - current	—		(0.1)		0.6
Total current	(5.5)		(45.2)		(21.4)
Federal - deferred	4.4		38.7		14.1
State and local - deferred	0.4		1.1		1.1
Total deferred	4.8		39.8		15.2
Total tax benefit	$	(0.7)	$	(5.4)	$	(6.2)

Effective and Statutory Rate Reconciliation

The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to the effective tax rate, as a percentage of total income before taxes for the years ended December 31, 2021, 2020 and 2019:

	Years ended December 31,
	2021		2020		2019
Statutory Federal tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of Federal tax benefit	2.8	%	(13.1)	%	1.4	%
AFUDC - equity	3.3	%	(23.6)	%	(0.1)	%
Depreciation of flow-through differences	(29.0)	%	94.8	%	(28.2)	%
Amortization of investment tax credits	(0.6)	%	4.1	%	(0.3)	%
Other, net	(0.8)	%	1.2	%	(0.1)	%
Effective tax rate	(3.3)	%	84.4	%	(6.3)	%

Deferred Income Taxes

Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and (b) operating loss carryforwards. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. Investment tax credits related to utility property have been deferred and are being amortized over the estimated useful lives of the related property.

The components of our deferred taxes are as follows:

	December 31,
$ in millions	2021		2020
Net non-current assets / (liabilities)
Depreciation / property basis	$	(166.4)	$	(160.5)
Income taxes recoverable	13.6		14.4
Regulatory assets	(20.6)		(21.0)
Investment tax credit	0.6		0.6
Compensation and employee benefits	(3.4)		(1.7)
Intangibles	(0.4)		(0.4)
Long-term debt	(1.5)		(1.3)
Other (a)	(9.8)		(7.3)
Net non-current liabilities	$	(187.9)	$	(177.2)

(a)    The Other caption includes deferred tax assets of $37.1 million in 2021 and $39.0 million in 2020 related to state and local tax net operating loss carryforwards, with related valuation allowances of $37.1 million in 2021 and $39.0 million in 2020. These net operating loss carryforwards expire from 2020 to 2037.

During the year ended December 31, 2021, DPL received a payment from AES of $17.5 million against its tax receivable balance as part of a $150.0 million contribution from AES. During the year ended December 31, 2020, DPL received a payment from AES of $52.0 million against its tax receivable balance as part of a $150.0 million contribution from AES. See Note 9 – Shareholder's Deficit for additional information.

The following table presents the tax expense / (benefit) related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss.

	Years ended December 31,
$ in millions	2021		2020		2019
Tax expense / (benefit)	$	2.2	$	(2.6)	$	(0.5)

Uncertain Tax Positions

We apply the provisions of GAAP relating to the accounting for uncertainty in income taxes. The balance of unrecognized tax benefits was $0.4 million at December 31, 2021 and $1.4 million at December 31, 2020. Due to the closure of federal tax exams in 2021, the Company has reviewed its uncertain tax positions and determined that $1.0 million will not be sustained. Consequently, the $1.0 million of uncertain tax positions were reversed. The reversals did not affect the annual effective tax rate, but were reclassified to current tax payable. The total amount of remaining unrecognized tax benefits that would benefit the effective tax rate as of December 31, 2021 is $0.4 million.

The amount anticipated to result in a net decrease to unrecognized tax benefits within 12 months of December 31, 2021 is estimated to be $0.0 million.

The following table presents the changes to our uncertain tax positions:

$ in millions	2021		2020		2019
Unrecognized tax benefits at January 1	$	1.4	$	3.5	$	3.5
Gross increases - current period tax positions	—		—		—
Gross decreases - prior period tax positions	(1.0)		(2.1)		—
Unrecognized tax benefits at December 31	$	0.4	$	1.4	$	3.5

Tax years subsequent to 2011 remain open to examination by taxing authorities. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe we have appropriately accrued for our uncertain tax positions. However, audit outcomes and the timing of audit settlements and future events that would impact our previously recorded unrecognized tax benefits are subject to significant uncertainty. It is possible that the ultimate outcome of future examinations may exceed our provision for current unrecognized tax benefits.

We recognize interest and penalties related to unrecognized tax benefits in Income tax expense. The amounts accrued and the tax expense / (benefit) recorded were not material for each period presented.

DPL is no longer subject to U.S. federal income tax examinations for tax years through 2011, but is open for all subsequent periods. DPL is no longer subject to state income tax examinations for tax years through 2016, but is open for all subsequent periods.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Income Taxes [Line Items]

Income Taxes

Income Taxes

AES Ohio’s components of income tax expense were as follows:

	Years ended December 31,
$ in millions	2021		2020		2019
Components of tax expense / (benefit)
Federal - current	$	1.1	$	3.5	$	8.6
State and Local - current	0.1		0.1		0.6
Total current	1.2		3.6		9.2
Federal - deferred	4.1		2.4		(10.9)
State and local - deferred	0.4		1.0		1.1
Total deferred	4.5		3.4		(9.8)
Tax expense / (benefit)	$	5.7	$	7.0	$	(0.6)

Effective and Statutory Rate Reconciliation

The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to the effective tax rate, as a percentage of total income before taxes for the years ended December 31, 2021, 2020 and 2019:

	Years ended December 31,
	2021		2020		2019
Statutory Federal tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of Federal tax benefit	1.1	%	1.5	%	1.3	%
AFUDC - Equity	1.3	%	2.6	%	(0.1)	%
Amortization of investment tax credits	(0.2)	%	(0.5)	%	(0.2)	%
Depreciation of flow-through differences	(11.7)	%	(10.6)	%	(22.6)	%
Change in tax reserves	(0.1)	%	(6.1)	%	—	%
Other - net	(0.6)	%	4.1	%	0.1	%
Effective tax rate	10.8	%	12.0	%	(0.5)	%

Deferred Income Taxes

Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes and (b) operating loss carryforwards. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. Investment tax credits related to utility property have been deferred and are being amortized over the estimated useful lives of the related property.

The components of our deferred taxes are as follows:

	December 31,
$ in millions	2021		2020
Net non-current assets / (liabilities)
Depreciation / property basis	$	(167.7)	$	(161.7)
Income taxes recoverable	13.6		14.4
Regulatory assets	(21.4)		(21.7)
Investment tax credit	0.5		0.5
Compensation and employee benefits	(3.4)		(0.1)
Other	(5.0)		(3.5)
Net non-current liabilities	$	(183.4)	$	(172.1)

The following table presents the tax expense / (benefit) related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss.

	Years ended December 31,
$ in millions	2021		2020		2019
Tax expense / (benefit)	$	2.9	$	(2.3)	$	(0.4)

Uncertain Tax Positions

We apply the provisions of GAAP relating to the accounting for uncertainty in income taxes. The balance of unrecognized tax benefits was $0.4 million at December 31, 2021 and $1.4 million at December 31, 2020. Due to the closure of federal tax exams in 2021, the Company has reviewed its uncertain tax positions and determined that $1.0 million will not be sustained. Consequently, the $1.0 million of uncertain tax positions were reversed. The reversals did not affect the annual effective tax rate, but were reclassified to current tax payable. The total amount of remaining unrecognized tax benefits that would benefit the effective tax rate as of December 31, 2021 is $0.4 million.

The amount anticipated to result in a net decrease to unrecognized tax benefits within 12 months of December 31, 2021 is estimated to be $0.0 million.

The following table presents the changes to our uncertain tax positions:

$ in millions	2021		2020		2019
Unrecognized tax benefits at January 1	$	1.4	$	4.8	$	4.8
Gross increases - current period tax positions	—		—		—
Gross decreases - prior period tax positions	(1.0)		(3.4)		—
Unrecognized tax benefits at December 31	$	0.4	$	1.4	$	4.8

Tax years subsequent to 2011 remain open to examination by taxing authorities. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe we have appropriately accrued for our uncertain tax positions. However, audit outcomes and the timing of audit settlements and future events that would impact our previously recorded unrecognized tax benefits are subject to significant uncertainty. It is possible that the ultimate outcome of future examinations may exceed our provision for current unrecognized tax benefits.

We recognize interest and penalties related to unrecognized tax benefits in Income tax expense. The amounts accrued and the tax expense / (benefit) recorded were not material for each period presented.

AES Ohio is no longer subject to U.S. federal income tax examinations for tax years through 2011, but is open for all subsequent periods. AES Ohio is no longer subject to state income tax examinations for tax years through 2017, but is open for all subsequent periods.

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Benefit Plans

12 Months Ended

Dec. 31, 2021

Benefit Plans

Benefit Plans

Defined Contribution Plans

AES Ohio sponsors two defined contribution plans. One is for non-union employees (the management plan) and one is for collective bargaining employees (the union plan). Both plans are qualified under Section 401 of the Internal Revenue Code.

Certain non-union and union employees become eligible to participate in their respective plan upon date of hire.

Participants may elect to contribute up to 85% of eligible compensation to their plan. Non-union participant contributions are matched 100% on the first 1% of eligible compensation and 50% on the next 5% of eligible compensation and they are fully vested in their employer contributions after 2 years of service. Union participant

contributions are matched 150% but are capped at $2,650 for 2021 and they are fully vested in their employer contributions after 3 years of service. All participants are fully vested in their own contributions.

We contributed $3.3 million, $3.2 million and $3.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. AES Ohio matching contributions are paid bi-weekly, in arrears. The contributions by year may include the bi-weekly matching contribution that is paid in the following year in addition to employer matching true-up contributions. AES Ohio also contributes an annual bonus to the accounts of its union participants. This payment is typically made in January of the following year.

Defined Benefit Plans

AES Ohio sponsors a traditional defined benefit pension plan for most of the employees of DPL and its subsidiaries. For collective bargaining employees, the defined benefits are based on a specific dollar amount per year of service. For all other employees (management employees), the traditional defined benefit pension plan is based primarily on compensation and years of service. As of December 31, 2010, this traditional pension plan formula was closed to new management employees. A participant is 100% vested in all amounts credited to his or her account upon the completion of five vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. Employees that transferred from AES Ohio to the Service Company maintain their previous eligibility to participate in the AES Ohio pension plan.

Almost all management employees beginning employment on or after January 1, 2011 participate in a cash balance pension plan formula. Similar to the traditional pension plan for management employees, the cash balance benefits are based on compensation and years of service. A participant shall become 100% vested in all amounts credited to his or her account upon the completion of three vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. Vested benefits in the cash balance plan are fully portable upon termination of employment.

In addition, we have a Supplemental Executive Retirement Plan (SERP) for certain retired key executives. The SERP has an immaterial unfunded liability related to agreements for retirement benefits of certain terminated and retired key executives.

We recognize an asset for a plan’s overfunded status and a liability for a plan’s underfunded status and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. For the transmission and distribution areas of our electric business, these amounts are recorded as regulatory assets and liabilities which represent the regulated portion that would otherwise be charged or credited to AOCL. We have historically recorded these costs on the accrual basis, and this is how these costs have been historically recovered through customer rates. This factor, combined with the historical precedents from the PUCO and FERC, make these costs probable of future rate recovery.

Postretirement Benefits

Qualified employees who retired prior to 1987 and their dependents are eligible for health care and life insurance benefits until their death, while qualified employees who retired after 1987 are eligible for life insurance benefits and partially subsidized health care. The partially subsidized health care is at the election of the employee, who pays most of the cost, and is available only from their retirement until they are covered by Medicare. 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 $8.9 million and $9.0 million at December 31, 2021 and 2020, respectively, were not material to the consolidated financial statements in the periods covered by this report.

The following tables set forth the changes in our pension plans' obligations and assets recorded on the Consolidated Balance Sheets at December 31, 2021 and 2020. The amounts presented in the following tables for pension obligations include the collective bargaining plan formula, traditional management plan formula and cash balance plan formula and the SERP in the aggregate and have not been adjusted for $1.7 million, $1.4 million and

$1.4 million of costs billed to the Service Company for the years ended December 31, 2021, 2020 and 2019, respectively.

$ in millions	Years ended December 31,
Change in benefit obligation	2021		2020
Benefit obligation at January 1	$	449.5	$	421.5
Service cost	4.5		3.7
Interest cost	8.2		11.8
Plan amendments	2.3		—
Actuarial (gain) / loss	(12.7)		52.7
Benefits paid	(35.6)		(40.2)
Benefit obligation at December 31	416.2		449.5
Change in plan assets
Fair value of plan assets at January 1	365.1		352.0
Actual return on plan assets	24.0		45.6
Employer contributions	10.0		7.7
Benefits paid	(35.6)		(40.2)
Fair value of plan assets at December 31	363.5		365.1
Unfunded status of plan	$	(52.7)	$	(84.4)
	December 31,
Amounts recognized in the Balance sheets	2021		2020
Current liabilities	$	(0.2)	$	(0.2)
Non-current liabilities	(52.5)		(84.2)
Net liability at end of year	$	(52.7)	$	(84.4)
Amounts recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax
Components:
Prior service cost	$	8.3	$	6.9
Net actuarial loss	93.3		124.0
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	101.6	$	130.9
Recorded in:
Regulatory asset	$	74.1	$	92.7
Accumulated Other Comprehensive Loss	27.5		38.2
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	101.6	$	130.9

The accumulated benefit obligation for our defined benefit pension plans was $400.7 million and $436.4 million at December 31, 2021 and 2020, respectively.

The net periodic benefit cost of the pension plans was:

	Years ended December 31,
$ in millions	2021			2020			2019
Service cost	$	4.5		$	3.7		$	3.7
Interest cost	8.2			11.8			14.9
Expected return on assets	(15.0)			(18.6)			(20.1)
Amortization of unrecognized:
Actuarial loss	9.0			1.0			4.2
Prior service cost	0.9			6.1			1.3
Net periodic benefit cost	$	7.6		$	4.0		$	4.0
Rates relevant to each year's expense calculations
Discount rate	2.44		%	3.33		%	4.35		%
Expected return on plan assets	4.55		%	5.60		%	6.25		%

The following table presents other changes in plan assets and benefit obligations recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities.

	Years ended December 31,
$ in millions	2021		2020		2019
Net actuarial loss / (gain)	$	(21.7)	$	25.8	$	5.3
Prior service cost	2.3		—		—
Reversal of amortization item:
Net actuarial loss	(9.0)		(1.0)		(4.2)
Prior service cost	(0.9)		(6.1)		(1.3)
Total recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities	$	(29.3)	$	18.7	$	(0.2)
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities	$	(21.7)	$	22.7	$	3.8

Significant Gains and Losses Related to Changes in the Benefit Obligation

The actuarial gain of $12.7 million decreased the benefit obligation for the year ended December 31, 2021 and an actuarial loss of $52.7 million increased the benefit obligation for the year ended December 31, 2020. The actuarial gain in 2021 was primarily due to an increase in the discount rate and the actuarial loss in 2020 was primarily due to a decrease in the discount rate.

Assumptions

Our expected return on plan asset assumptions, used to determine benefit obligations, are based on historical long-term rates of return on investments, which use the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors, such as inflation and interest rates, as well as asset diversification and portfolio rebalancing, are evaluated when long-term capital market assumptions are determined. Peer data and historical returns are reviewed to verify reasonableness and appropriateness.

At December 31, 2021, we are increasing our long-term rate of return assumption to 4.60% for pension plan assets. The rate of return represents our long-term assumptions based on our long-term portfolio mix. Also, at December 31, 2021, we have increased our assumed discount rate to 2.83% from 2.44% for pension expense to reflect current duration-based yield curve discount rates. A one percent increase in the rate of return assumption for pension would result in a decrease in 2022 pension expense of approximately $3.4 million. A one percent decrease in the rate of return assumption for pension would result in an increase in 2022 pension expense of approximately $3.4 million. A 25-basis point increase in the discount rate for pension would result in a decrease of approximately $0.5 million to 2022 pension expense. A 25-basis point decrease in the discount rate for pension would result in an increase of approximately $0.5 million to 2022 pension expense.

In determining the discount rate to use for valuing liabilities, we used a market yield curve on high-quality fixed income investments as of December 31, 2021. We project the expected benefit payments under the plan based on participant data and based on certain assumptions concerning mortality, retirement rates, termination rates, etc. The expected benefit payments for each year are then discounted back to the measurement date using the appropriate spot rate for each half-year from the yield curve, thereby obtaining a present value of all expected future benefit payments using the yield curve. Finally, an equivalent single discount rate is determined which produces a present value equal to the present value determined using the full yield curve.

Consistent with the requirements of FASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans.

In future periods, differences in the actual return on pension plan assets and assumed return, or changes in the discount rate, will affect the timing of contributions, if any, to the plans.

The weighted average assumptions used to determine benefit obligations at December 31, 2021, 2020 and 2019 were:

Benefit Obligation Assumptions	Pension
	2021	2020	2019
Discount rate for obligations	2.83%	2.44%	3.33%
Rate of compensation increases	3.21%	3.21%	3.94%

Pension Plan Assets

Plan assets are invested in multiple asset classes using a de-risking framework designed to manage the Plan's funded status volatility and minimize future cash contributions. Investment strategies and asset allocations are intended to allocate additional assets to the fixed income asset class should the Plan's funded status improve and is therefore broadly described as the Dynamic De-risking Strategy. Investment performance and asset allocation are measured and monitored on an ongoing basis.

Plan assets are managed in a balanced portfolio comprised of two major components: return seeking assets and liability hedging assets. The expected role of plan return seeking assets is to provide additional return with associated higher levels of risk, while the role of liability hedging assets is to correlate the interest rate of the fixed income investments with that of the Plan's liabilities.

Strategic asset allocation guidelines are determined by a Risk/Advisory Committee and approved by a Fiduciary Committee. These allocations consider the plan’s long-term objectives. The long-term target allocations for plan assets are 40% – 50% for return seeking assets and 50% – 60% for liability hedging assets. Return seeking assets include U.S. and international equity, while liability hedging assets include long-duration and high-yield bond funds and emerging market debt funds.

The investment approach is to move the Plan to a more de-risked position, if and when the overall funded status of the Plan improves, by periodically rebalancing the allocation of the Plan's investments in growth assets and liability hedging assets in accordance with the committee's glide path. This strategy requires the daily monitoring of the Plan's ratio of assets to liabilities in order to determine whether approved trigger points have been met, requiring the rebalancing of the assets.

All plan assets at December 31, 2021 are common collective trusts. With the exception of the cash and cash equivalents, the collective trusts are valued using the net asset value method and are categorized as Level 2 in the fair value hierarchy. The underlying investments are mutual funds, common stock. or debt securities, in alignment with the target asset allocation.

The following table summarizes our target pension plan allocation for 2021:

	Long-Term Mid-Point Target Allocation	Percentage of plan assets as of December 31,
Asset category		2021	2020
Equity Securities	41%	42%	42%
Debt Securities	59%	57%	57%
Cash and Cash Equivalents	—%	1%	1%

The fair values of our pension plan assets at December 31, 2021 by asset category are as follows:

$ in millions	Market Value at December 31, 2021		Quoted prices in active markets for identical assets		Significant observable inputs		Significant unobservable inputs
Asset category			(Level 1)		(Level 2)		(Level 3)
Mutual fund - equities (a)	$	151.8	$	—	$	151.8	$	—
Mutual fund - debt (b)	144.0		—		144.0		—
Government debt securities (c)	65.8		—		65.8		—
Cash and cash equivalents (d)	1.9		1.9		—		—
Total pension plan assets	$	363.5	$	1.9	$	361.6	$	—

(a)    This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method.

(b)    This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method.

(c)    This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method.

(d)    This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost.

The fair values of our pension plan assets at December 31, 2020 by asset category are as follows:

$ in millions	Market Value at December 31, 2020		Quoted prices in active markets for identical assets		Significant observable inputs		Significant unobservable inputs
Asset category			(Level 1)		(Level 2)		(Level 3)
Mutual fund - equities (a)	$	153.8	$	—	$	153.8	$	—
Mutual fund - debt (b)	144.6		—		144.6		—
Government debt securities (c)	64.8		—		64.8		—
Cash and cash equivalents (d)	1.9		1.9		—		—
Total pension plan assets	$	365.1	$	1.9	$	363.2	$	—

(a)    This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method.

(b)    This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method.

(c)    This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method.

(d)    This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost.

Pension Funding

We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and, in addition, make voluntary contributions from time to time. We contributed $9.8 million to the pension plan in the year ended December 31, 2021, and $7.5 million in each of the years ended December 31, 2020 and 2019.

We expect to make contributions of $0.2 million to our SERP in 2022 to cover benefit payments. We also expect to make contributions of $7.5 million to our pension plan during 2022.

Funding for the qualified Defined Benefit Pension Plan is based upon actuarially determined contributions that consider the amount deductible for income tax purposes and the minimum contribution required under ERISA, as amended by the Pension Protection Act of 2006, as well as targeted funding levels necessary to meet certain thresholds.

From an ERISA funding perspective, AES Ohio’s funded target liability percentage was estimated to be 114%. In addition, AES Ohio must also contribute the normal service cost earned by active participants during the plan year. The funding of normal cost is expected to be approximately $5.8 million in 2022, which includes $1.7 million for plan expenses. Each year thereafter, if the plan’s underfunding increases to more than the present value of the remaining annual installments, the excess is separately amortized over seven years. AES Ohio’s funding policy for the pension plans is to contribute annually no less than the minimum required by applicable law, and no more than the maximum amount that can be deducted for federal income tax purposes.

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

Estimated future benefit payments
$ in millions due within the following years:	Pension
2022	$	24.5
2023	$	24.3
2024	$	24.1
2025	$	23.7
2026	$	23.6
2027 - 2031	$	114.4

THE DAYTON POWER AND LIGHT COMPANY [Member]

Benefit Plans

Benefit Plans

Defined Contribution Plans

AES Ohio sponsors two defined contribution plans. One is for non-union employees (the management plan) and one is for collective bargaining employees (the union plan). Both plans are qualified under Section 401 of the Internal Revenue Code.

Certain non-union and union employees become eligible to participate in their respective plan upon date of hire.

Participants may elect to contribute up to 85% of eligible compensation to their plan. Non-union participant contributions are matched 100% on the first 1% of eligible compensation and 50% on the next 5% of eligible compensation and they are fully vested in their employer contributions after 2 years of service. Union participant contributions are matched 150% but are capped at $2,650 for 2021 and they are fully vested in their employer contributions after 3 years of service. All participants are fully vested in their own contributions.

We contributed $3.3 million, $3.2 million and $3.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. AES Ohio matching contributions are paid bi-weekly, in arrears. The contributions by year may include the bi-weekly matching contribution that is paid in the following year in addition to employer matching true-up contributions. AES Ohio also contributes an annual bonus to the accounts of its union participants. This payment is typically made in January of the following year.

AES Ohio sponsors a traditional defined benefit pension plan for most of the employees of DPL and its subsidiaries. For collective bargaining employees, the defined benefits are based on a specific dollar amount per year of service. For all other employees (management employees), the traditional defined benefit pension plan is based primarily on compensation and years of service. As of December 31, 2010, this traditional pension plan formula was closed to new management employees. A participant is 100% vested in all amounts credited to his or her account upon the completion of five vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. Employees that transferred from AES Ohio to the Service Company maintain their previous eligibility to participate in the AES Ohio pension plan.

Almost all management employees beginning employment on or after January 1, 2011 participate in a cash balance pension plan formula. Similar to the traditional pension plan for management employees, the cash balance benefits are based on compensation and years of service. A participant shall become 100% vested in all amounts credited to his or her account upon the completion of three vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. Vested benefits in the cash balance plan are fully portable upon termination of employment.

In addition, we have a Supplemental Executive Retirement Plan (SERP) for certain retired key executives. The SERP has an immaterial unfunded liability related to agreements for retirement benefits of certain terminated and retired key executives.

We recognize an asset for a plan’s overfunded status and a liability for a plan’s underfunded status and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. For the transmission and distribution areas of our electric business, these amounts are recorded as regulatory assets and liabilities which represent the regulated portion that would otherwise be charged or credited to AOCL. We have historically recorded these costs on the accrual basis, and this is how these costs have been historically recovered through customer rates. This factor, combined with the historical precedents from the PUCO and FERC, make these costs probable of future rate recovery.

Postretirement Benefits

Qualified employees who retired prior to 1987 and their dependents are eligible for health care and life insurance benefits until their death, while qualified employees who retired after 1987 are eligible for life insurance benefits and partially subsidized health care. The partially subsidized health care is at the election of the employee, who pays most of the cost, and is available only from their retirement until they are covered by Medicare. 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 $8.9 million and $9.0 million at December 31, 2021 and 2020, respectively, were not material to the financial statements in the periods covered by this report.

The following tables set forth the changes in our pension plans' obligations and assets recorded on the Balance Sheets at December 31, 2021 and 2020. The amounts presented in the following tables for pension obligations include the collective bargaining plan formula, traditional management plan formula and cash balance plan formula and the SERP in the aggregate and have not been adjusted for $1.7 million, $1.4 million and $1.4 million of costs billed to the Service Company for the years ended December 31, 2021, 2020 and 2019, respectively, or $1.9 million,

$1.4 million and $1.5 million of costs billed to AES Ohio Generation for the years ended December 31, 2021, 2020 and 2019, respectively.

$ in millions	Years ended December 31,
Change in benefit obligation	2021		2020
Benefit obligation at January 1	$	449.5	$	421.5
Service cost	4.5		3.7
Interest cost	8.2		11.8
Plan amendments	2.3		—
Actuarial (gain) / loss	(12.7)		52.7
Benefits paid	(35.6)		(40.2)
Benefit obligation at December 31	416.2		449.5
Change in plan assets
Fair value of plan assets at January 1	365.1		352.0
Actual return on plan assets	24.0		45.6
Employer contributions	10.0		7.7
Benefits paid	(35.6)		(40.2)
Fair value of plan assets at December 31	363.5		365.1
Unfunded status of plan	$	(52.7)	$	(84.4)
	December 31,
Amounts recognized in the Balance sheets	2021		2020
Current liabilities	$	(0.2)	$	(0.2)
Non-current liabilities	(52.5)		(84.2)
Net liability at end of year	$	(52.7)	$	(84.4)
Amounts recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax
Components:
Prior service cost	$	8.5	$	7.3
Net actuarial loss	119.5		152.6
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	128.0	$	159.9
Recorded in:
Regulatory asset	$	74.0	$	92.7
Accumulated Other Comprehensive Loss	54.0		67.2
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	128.0	$	159.9

The accumulated benefit obligation for our defined benefit pension plans was $400.7 million and $436.4 million at December 31, 2021 and 2020, respectively.

The net periodic benefit cost of the pension plans was:

	Years ended December 31,
$ in millions	2021			2020			2019
Service cost	$	4.5		$	3.7		$	3.7
Interest cost	8.2			11.8			14.9
Expected return on assets	(15.0)			(18.6)			(20.1)
Amortization of unrecognized:
Actuarial loss	11.4			8.7			7.0
Prior service cost	1.1			1.3			1.8
Net periodic benefit cost	$	10.2		$	6.9		$	7.3
Rates relevant to each year's expense calculations
Discount rate	2.44		%	3.33		%	4.35		%
Expected return on plan assets	4.55		%	5.60		%	6.25		%

The following table presents other changes in plan assets and benefit obligations recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities.

	Years ended December 31,
$ in millions	2021		2020		2019
Net actuarial loss / (gain)	$	(21.7)	$	25.8	$	5.3
Prior service cost	2.3		—		—
Reversal of amortization item:
Net actuarial loss	(11.4)		(8.7)		(7.0)
Prior service cost	(1.1)		(1.3)		(1.8)
Total recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities	$	(31.9)	$	15.8	$	(3.5)
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities	$	(21.7)	$	22.7	$	3.8

Significant Gains and Losses Related to Changes in the Benefit Obligation

The actuarial gain of $12.7 million decreased the benefit obligation for the year ended December 31, 2021 and an actuarial loss of $52.7 million increased the benefit obligation for the year ended December 31, 2020. The actuarial gain in 2021 was primarily due to an increase in the discount rate and the actuarial loss in 2020 was primarily due to a decrease in the discount rate.

Assumptions

Our expected return on plan asset assumptions, used to determine benefit obligations, are based on historical long-term rates of return on investments, which use the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors, such as inflation and interest rates, as well as asset diversification and portfolio rebalancing, are evaluated when long-term capital market assumptions are determined. Peer data and historical returns are reviewed to verify reasonableness and appropriateness.

At December 31, 2021, we are increasing our long-term rate of return assumption to 4.60% for pension plan assets. The rate of return represents our long-term assumptions based on our long-term portfolio mix. Also, at December 31, 2021, we have increased our assumed discount rate to 2.83% from 2.44% for pension expense to reflect current duration-based yield curve discount rates. A one percent increase in the rate of return assumption for pension would result in a decrease in 2022 pension expense of approximately $3.4 million. A one percent decrease in the rate of return assumption for pension would result in an increase in 2022 pension expense of approximately $3.4 million. A 25-basis point increase in the discount rate for pension would result in a decrease of approximately $0.5 million to 2022 pension expense. A 25-basis point decrease in the discount rate for pension would result in an increase of approximately $0.5 million to 2022 pension expense.

In determining the discount rate to use for valuing liabilities, we used a market yield curve on high-quality fixed income investments as of December 31, 2021. We project the expected benefit payments under the plan based on participant data and based on certain assumptions concerning mortality, retirement rates, termination rates, etc. The expected benefit payments for each year are then discounted back to the measurement date using the appropriate spot rate for each half-year from the yield curve, thereby obtaining a present value of all expected future benefit payments using the yield curve. Finally, an equivalent single discount rate is determined which produces a present value equal to the present value determined using the full yield curve.

Consistent with the requirements of FASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans.

In future periods, differences in the actual return on pension plan assets and assumed return, or changes in the discount rate, will affect the timing of contributions, if any, to the plans.

The weighted average assumptions used to determine benefit obligations at December 31, 2021, 2020 and 2019 were:

Benefit Obligation Assumptions	Pension
	2021	2020	2019
Discount rate for obligations	2.83%	2.44%	3.33%
Rate of compensation increases	3.21%	3.21%	3.94%

Pension Plan Assets

Plan assets are invested in multiple asset classes using a de-risking framework designed to manage the Plan's funded status volatility and minimize future cash contributions. Investment strategies and asset allocations are intended to allocate additional assets to the fixed income asset class should the Plan's funded status improve and is therefore broadly described as the Dynamic De-risking Strategy. Investment performance and asset allocation are measured and monitored on an ongoing basis.

Plan assets are managed in a balanced portfolio comprised of two major components: return seeking assets and liability hedging assets. The expected role of plan return seeking assets is to provide additional return with associated higher levels of risk, while the role of liability hedging assets is to correlate the interest rate of the fixed income investments with that of the Plan's liabilities.

Strategic asset allocation guidelines are determined by a Risk/Advisory Committee and approved by a Fiduciary Committee. These allocations consider the plan’s long-term objectives. The long-term target allocations for plan assets are 40% – 50% for return seeking assets and 50% – 60% for liability hedging assets. Return seeking assets include U.S. and international equity, while liability hedging assets include long-duration and high-yield bond funds and emerging market debt funds.

The investment approach is to move the Plan to a more de-risked position, if and when the overall funded status of the Plan improves, by periodically rebalancing the allocation of the Plan's investments in growth assets and liability hedging assets in accordance with the committee's glide path. This strategy requires the daily monitoring of the Plan's ratio of assets to liabilities in order to determine whether approved trigger points have been met, requiring the rebalancing of the assets.

All plan assets at December 31, 2021 are common collective trusts. With the exception of the cash and cash equivalents, the collective trusts are valued using the net asset value method and are categorized as Level 2 in the fair value hierarchy. The underlying investments are mutual funds, common stock. or debt securities, in alignment with the target asset allocation.

The following table summarizes our target pension plan allocation for 2021:

	Long-Term Mid-Point Target Allocation	Percentage of plan assets as of December 31,
Asset category		2021	2020
Equity Securities	41%	42%	42%
Debt Securities	59%	57%	57%
Cash and Cash Equivalents	—%	1%	1%

The fair values of our pension plan assets at December 31, 2021 by asset category are as follows:

$ in millions	Market Value at December 31, 2021		Quoted prices in active markets for identical assets		Significant observable inputs		Significant unobservable inputs
Asset category			(Level 1)		(Level 2)		(Level 3)
Mutual fund - equities (a)	$	151.8	$	—	$	151.8	$	—
Mutual fund - debt (b)	144.0		—		144.0		—
Government debt securities (c)	65.8		—		65.8		—
Cash and cash equivalents (d)	1.9		1.9		—		—
Total pension plan assets	$	363.5	$	1.9	$	361.6	$	—

(a)    This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method.

(b)    This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method.

(c)    This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method.

(d)    This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost.

The fair values of our pension plan assets at December 31, 2020 by asset category are as follows:

$ in millions	Market Value at December 31, 2020		Quoted prices in active markets for identical assets		Significant observable inputs		Significant unobservable inputs
Asset category			(Level 1)		(Level 2)		(Level 3)
Mutual fund - equities (a)	$	153.8	$	—	$	153.8	$	—
Mutual fund - debt (b)	144.6		—		144.6		—
Government debt securities (c)	64.8		—		64.8		—
Cash and cash equivalents (d)	1.9		1.9		—		—
Total pension plan assets	$	365.1	$	1.9	$	363.2	$	—

(a)    This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method.

(b)    This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method.

(c)    This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method.

(d)    This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost.

Pension Funding

We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and, in addition, make voluntary contributions from time to time. We contributed $9.8 million to the pension plan in the year ended December 31, 2021, and $7.5 million in each of the years ended December 31, 2020 and 2019.

We expect to make contributions of $0.2 million to our SERP in 2022 to cover benefit payments. We also expect to make contributions of $7.5 million to our pension plan during 2022.

Funding for the qualified Defined Benefit Pension Plan is based upon actuarially determined contributions that consider the amount deductible for income tax purposes and the minimum contribution required under ERISA, as amended by the Pension Protection Act of 2006, as well as targeted funding levels necessary to meet certain thresholds.

From an ERISA funding perspective, AES Ohio’s funded target liability percentage was estimated to be 114%. In addition, AES Ohio must also contribute the normal service cost earned by active participants during the plan year. The funding of normal cost is expected to be approximately $5.8 million in 2022, which includes $1.7 million for plan expenses. Each year thereafter, if the plan’s underfunding increases to more than the present value of the remaining annual installments, the excess is separately amortized over seven years. AES Ohio’s funding policy for the pension plans is to contribute annually no less than the minimum required by applicable law, and no more than the maximum amount that can be deducted for federal income tax purposes.

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

Estimated future benefit payments
$ in millions due within the following years:	Pension
2022	$	24.5
2023	$	24.3
2024	$	24.1
2025	$	23.7
2026	$	23.6
2027 - 2031	$	114.4

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Equity

12 Months Ended

Dec. 31, 2021

Entity Information [Line Items]

Equity

Shareholder's Deficit

Dividend Restrictions

DPL’s Amended Articles of Incorporation (the Articles) and the DPL Credit Agreement contain provisions which state that DPL may not make a distribution to its shareholder or make a loan to any of its affiliates (other than its subsidiaries), unless: (a) there exists no Event of Default (as defined in the Articles) and no such Event of Default would result from the making of the distribution or loan; and either (b)(i) at the time of, and/or as a result of, the distribution or loan, 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, (b)(ii) if such ratios are not within the parameters, DPL’s senior long-term debt rating from one of the three major credit rating agencies is at least investment grade. Further, the restrictions on the payment of distributions to a shareholder and the making of loans to its affiliates (other than subsidiaries) cease to be in effect if the three major credit rating agencies confirm that a lowering of DPL’s senior long-term debt rating below investment grade by the credit rating agencies would not occur without these restrictions.

As described above, DPL’s Amended Articles of Incorporation and the DPL Credit Agreement contain restrictions on DPL’s ability to make dividends, distributions and affiliate loans (other than to its subsidiaries), including restrictions on making such dividends, distributions and loans if certain financial ratios exceed specified levels and DPL’s senior long-term debt rating from a rating agency is below investment grade. As of December 31, 2021, DPL did not meet these requirements. As a result, as of December 31, 2021, DPL was prohibited under its Articles of Incorporation and Credit Agreement from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries).

Common Stock

Effective on the Merger date, DPL's Amended Articles of Incorporation provided for 1,500 authorized common shares, of which one share is outstanding at December 31, 2021.

AES Ohio has 50,000,000 authorized common shares, of which 41,172,173 are outstanding at December 31, 2021. All common shares are held by AES Ohio’s parent, DPL.

Capital Contributions from AES

During each of the years ended December 31, 2021 and 2020, DPL received a $150.0 million cash contribution from AES, which DPL then used to make a $150.0 million equity contribution to AES Ohio. The cash contributions at DPL represented equity contributions of $132.5 million and $98.0 million in 2021 and 2020, respectively; and payments of $17.5 million and $52.0 million against its tax receivable in 2021 and 2020, respectively. The proceeds from the equity contributions at AES Ohio will enable AES Ohio to seek to improve its infrastructure and modernize its grid while maintaining liquidity.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

Equity

Shareholder's Equity

Common Stock

AES Ohio has 50,000,000 authorized common shares, of which 41,172,173 are outstanding at December 31, 2021. All common shares are held by AES Ohio’s parent, DPL.

Capital Contribution and Returns of Capital

During each of the years ended December 31, 2021 and 2020, DPL made capital contributions of $150.0 million to AES Ohio. The proceeds will enable AES Ohio to seek to improve its infrastructure and modernize its grid while maintaining liquidity.

In 2021, AES Ohio made return of capital payments to DPL of $52.0 million, of which $42.0 million was declared in 2021. In 2020, AES Ohio declared return of capital payments to DPL of $52.7 million, of which $42.7 million was paid in 2020. In 2019, AES Ohio made returns of capital payments to DPL of $95.0 million.

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Contractual Obligations, Commercial Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Contractual Obligations, Commercial Commitments and Contingencies

Contractual Obligations, Commercial Commitments and Contingencies

Equity Ownership Interest

AES Ohio has a 4.9% equity ownership interest in OVEC which is recorded using the cost method of accounting under GAAP. At December 31, 2021, AES Ohio could be responsible for the repayment of 4.9%, or $55.5 million, of a $1,131.7 million debt obligation comprised of both fixed and variable rate securities with maturities between 2022 and 2040. OVEC could also seek additional contributions from us to avoid a default in the event that other OVEC members defaulted on their respective OVEC obligations.

Contractual Obligations and Commercial Commitments

We enter into various contractual obligations and other commercial commitments that may affect the liquidity of our operations. At December 31, 2021, these include:

	Payments due in:
$ in millions	Total		Less than 1 year		2 - 3 years		4 - 5 years		More than 5 years
Electricity purchase commitments	$	82.9	$	82.9	$	—	$	—	$	—
Purchase orders and other contractual obligations	$	149.4	$	138.7	$	10.7	$	—	$	—

Electricity purchase commitments:

AES Ohio enters into long-term contracts for the purchase of electricity. In general, these contracts are subject to variable quantities or prices and are terminable only in limited circumstances.

Purchase orders and other contractual obligations:

At December 31, 2021, DPL had various other contractual obligations including contracts to purchase goods and services with various terms and expiration dates. Due to uncertainty regarding the timing and payment of future obligations to the Service Company, and DPL's ability to terminate such obligations upon 90 days' notice, we have excluded such amounts in the contractual obligations table above.

Contingencies

In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under laws and regulations. We believe the amounts provided in our 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, including the matters discussed below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in our Consolidated Financial Statements. As such, costs, if any, that may be incurred in excess of those amounts provided as of December 31, 2021, cannot be reasonably determined.

Environmental Matters

DPL’s facilities and operations are subject to a wide range of federal, state and local environmental laws, rules and regulations. The environmental issues that may affect us include the following; however, as a result of our exiting of our generation business, certain of these requirements are no longer expected to have a material impact on DPL and AES Ohio. See Item 1 - Business - Environmental Matters for a more comprehensive discussion of these and other environmental matters impacting us.

•The federal CAA and state laws and regulations (including SIPs) which require compliance, obtaining permits and reporting as to air emissions;

•Litigation with federal and certain state governments and certain special interest groups regarding whether modifications to or maintenance of certain coal-fired generating stations require additional permitting or pollution control technology, or whether emissions from coal-fired generating stations cause or contribute to global climate changes;

•Rules and future rules issued by the USEPA, the Ohio EPA or other authorities that require or will require substantial reductions in SO2, particulates, mercury, acid gases, NOx and other air emissions;

•Rules and future rules issued by the USEPA, the Ohio EPA or other authorities that require or will require reporting and reductions of GHGs;

•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. Most of the solid waste created from the combustion of coal and fossil fuels is fly ash and other coal combustion by-products.

In addition to imposing continuing compliance obligations, environmental laws, rules 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 laws, rules and 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 a number of 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 previously-owned and operated coal-fired generation units. We do not expect these matters to have a material adverse impact on our results of operations, financial condition or cash flows.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Contractual Obligations, Commercial Commitments and Contingencies

Contractual Obligations, Commercial Commitments and Contingencies

AES Ohio – Equity Ownership Interest

AES Ohio has a 4.9% equity ownership interest in OVEC which is recorded using the cost method of accounting under GAAP. At December 31, 2021, AES Ohio could be responsible for the repayment of 4.9%, or $55.5 million, of a $1,131.7 million debt obligation comprised of both fixed and variable rate securities with maturities between 2022 and 2040. OVEC could also seek additional contributions from us to avoid a default in the event that other OVEC members defaulted on their respective OVEC obligations.

Contractual Obligations and Commercial Commitments

We enter into various contractual obligations and other commercial commitments that may affect the liquidity of our operations. At December 31, 2021, these include:

	Payments due in:
$ in millions	Total		Less than 1 year		2 - 3 years		4 - 5 years		More than 5 years
Electricity purchase commitments	$	82.9	$	82.9	$	—	$	—	$	—
Purchase orders and other contractual obligations	$	146.8	$	136.1	$	10.7	$	—	$	—

Electricity purchase commitments:

AES Ohio enters into long-term contracts for the purchase of electricity. In general, these contracts are subject to variable quantities or prices and are terminable only in limited circumstances.

Purchase orders and other contractual obligations:

At December 31, 2021, AES Ohio had various other contractual obligations including contracts to purchase goods and services with various terms and expiration dates. Due to uncertainty regarding the timing and payment of future obligations to the Service Company, and AES Ohio's ability to terminate such obligations upon 90 days' notice, we have excluded such amounts in the contractual obligations table above.

Contingencies

In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under laws and regulations. We believe the amounts provided in our 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, including the matters discussed 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 as of December 31, 2021, cannot be reasonably determined.

Environmental Matters

AES Ohio's facilities and operations are subject to a wide range of federal, state and local environmental laws, rules and regulations. The environmental issues that may affect us include the following; however, as a result of our exiting of our generation business, certain of these requirements are no longer expected to have a material impact on AES Ohio. See Item 1 - Business - Environmental Matters for a more comprehensive discussion of these and other environmental matters impacting us.

•The federal CAA and state laws and regulations (including SIPs) which require compliance, obtaining permits and reporting as to air emissions;

•Rules and future rules issued by the USEPA, the Ohio EPA or other authorities that require or will require reporting and reductions of GHGs;

•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, environmental laws, rules 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 laws, rules and 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 a number of 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 previously-owned and operated coal-fired generation units. We do not expect these matters to have a material adverse impact on our results of operations, financial condition or cash flows.

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Related Party Transactions

12 Months Ended

Dec. 31, 2021

Entity Information [Line Items]

Related Party Transactions

Related Party Transactions

Service Company

The Service Company allocates the costs for services provided based on cost drivers designed to result in fair and equitable allocations. This includes ensuring that the regulated utilities served, including AES Ohio, are not subsidizing costs incurred for the benefit of other businesses.

Benefit Plans

DPL participates in an agreement with Health and Welfare Benefit Plans LLC, an affiliate of AES, to participate in a group benefits program, including but not limited to, health, dental, vision and life benefits. Health and Welfare Benefit Plans LLC administers the financial aspects of the group insurance program, receives all premium payments from the participating affiliates, and makes all vendor payments.

Long-term Compensation Plan

During 2021, 2020 and 2019, some of DPL’s non-union employees received benefits under the AES Long-term Compensation Plan, a deferred compensation program. This type of plan is a common employee retention tool used in our industry. Benefits under this plan are granted in the form of performance units payable in cash and AES restricted stock units. Restricted stock units vest ratably over a three-year period. The performance units payable in cash vest at the end of the three-year performance period and are subject to certain AES performance criteria. Total deferred compensation expense recorded during 2021, 2020 and 2019 was $0.0 million, $0.1 million and $0.0 million, respectively, and was included in “Operation and maintenance” on DPL’s Consolidated Statements of Operations. The value of these benefits is being recognized over the 36-month vesting period and a portion is recorded as miscellaneous deferred credits with the remainder recorded as “Other paid-in capital” on DPL’s Consolidated Balance Sheets in accordance with FASC 718 “Compensation - Stock Compensation.”

The following table provides a summary of our related party transactions:

	Years ended December 31,
$ in millions	2021		2020		2019
Transactions with the Service Company
Net charges for services provided	$	39.2	$	34.6	$	30.2
Transactions with other AES affiliates:
Payments for health, welfare and benefit plans	$	13.9	$	10.7	$	11.2
Consulting and other services	$	1.4	$	0.8	$	0.7
Balances with related parties:	At December 31, 2021		At December 31, 2020
Net payable to the Service Company	$	(24.7)	$	(14.8)
Net receivable from / (payable to) AES and other AES affiliates	$	0.7	$	(1.7)

DPL Capital Trust II

DPL has a wholly-owned business trust, DPL Capital Trust II (the Trust), formed for the purpose of issuing trust capital securities to third-party investors. Effective in 2003, DPL deconsolidated the Trust upon adoption of the accounting standards related to variable interest entities and currently treats the Trust as a nonconsolidated subsidiary. The Trust holds mandatorily redeemable trust capital securities. The investment in the Trust, which amounted to $0.2 million and $0.2 million at December 31, 2021 and 2020, respectively, is included in Other non-current assets. DPL also has a note payable to the Trust amounting to $15.6 million and $15.6 million at December 31, 2021 and 2020, respectively, that was established upon the Trust’s deconsolidation in 2003. See Note 6 – Long-term debt for additional information.

In addition to the obligations under the note payable mentioned above, DPL also agreed to a security obligation which represents a full and unconditional guarantee of payments to the capital security holders of the Trust.

Income Taxes

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.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

Related Party Transactions

Related Party Transactions

Service Company

The Service Company allocates the costs for services provided based on cost drivers designed to result in fair and equitable allocations. This includes ensuring that the regulated utilities served, including AES Ohio, are not subsidizing costs incurred for the benefit of other businesses.

Benefit Plans

DPL participates in an agreement with Health and Welfare Benefit Plans LLC, an affiliate of AES, to participate in a group benefits program, including but not limited to, health, dental, vision and life benefits. Health and Welfare Benefit Plans LLC administers the financial aspects of the group insurance program, receives all premium payments from the participating affiliates, and makes all vendor payments.

Long-term Compensation Plan

During 2021, 2020 and 2019, many of AES Ohio’s non-union employees received benefits under the AES Long-term Compensation Plan, a deferred compensation program. This type of plan is a common employee retention tool used in our industry. Benefits under this plan are granted in the form of performance units payable in cash and AES restricted stock units. Restricted stock units vest ratably over a three-year period. The performance units payable in cash vest at the end of the three-year performance period and are subject to certain AES performance criteria. Total deferred compensation expense recorded during 2021, 2020 and 2019 was $0.0 million, $0.1 million and $(0.3) million, respectively, and was included in “Operation and maintenance” on AES Ohio’s Statements of Operations. The value of these benefits is being recognized over the 36-month vesting period and a portion is recorded as miscellaneous deferred credits with the remainder recorded as “Other paid-in capital” on AES Ohio’s Balance Sheets in accordance with FASC 718 “Compensation - Stock Compensation.”

The following table provides a summary of our related party transactions:

	Years ended December 31,
$ in millions	2021		2020		2019
AES Ohio Operation & Maintenance Expenses:
Premiums charged for insurance services provided by MVIC (a)	$	3.3	$	3.4	$	3.1
Transactions with the Service Company:
Net charges for services provided	$	38.1	$	33.4	$	27.7
Transactions with other AES affiliates:
Charges for health, welfare and benefit plans	$	10.5	$	10.1	$	10.4
Charges to affiliates for non-power goods or services (b)	$	5.8	$	4.1	$	4.1
Consulting and other services	$	1.4	$	0.8	$	0.7
Balances with related parties:	At December 31, 2021		At December 31, 2020
Net payable to the Service Company	$	(24.7)	$	(14.8)
Net receivable from / (payable to) AES and other AES affiliates	$	0.5	$	(2.1)

(a)    MVIC, a wholly-owned captive insurance subsidiary of DPL, provides insurance coverage to AES Ohio and other DPL subsidiaries for workers’ compensation, general liability, property damages and directors’ and officers’ liability. These amounts represent insurance premiums charged by MVIC to AES Ohio.

(b)    In the normal course of business AES Ohio incurred and recorded expenses on behalf of DPL affiliates. Such expenses included but were not limited to employee-related expenses, accounting, information technology, payroll, legal and other administration expenses. AES Ohio subsequently charged these expenses to the affiliates at AES Ohio’s cost and credited the expense in which they were initially recorded.

Income Taxes

AES files federal and state income tax returns which consolidate DPL and its subsidiaries, including 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. Under this agreement, AES Ohio had a net receivable balance of $28.1 million and $32.5 million at December 31, 2021 and 2020, respectively, which is recorded in Taxes receivable on the accompanying Balance Sheets. During 2021, 2020 and 2019, AES Ohio made net payments of $0.0 million, $0.0 million and $22.5 million respectively, to DPL for its share of income taxes.

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Business Segments

12 Months Ended

Dec. 31, 2021

Segment Reporting Information [Line Items]

Business Segments

Business Segments

DPL manages its business through one reportable operating segment, the Utility 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 segments. The Utility segment is discussed further below:

Utility Segment

The Utility segment is comprised primarily of AES Ohio’s electric transmission and distribution businesses, which distribute electricity to residential, commercial, industrial and governmental customers. AES Ohio distributes electricity to more than 534,000 retail customers who are located in a 6,000-square mile area of West Central Ohio. AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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 AES Ohio’s Hutchings Coal Station, which was closed in 2013 and transferred to a third party in the fourth quarter of 2020.

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 and loss on early extinguishment of debt on DPL’s long-term debt as well as adjustments related to purchase accounting from the Merger. The accounting policies of the reportable segments are the same as those described in Note 1 – Overview and Summary of Significant Accounting Policies. 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 reportable business segment:

$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Year ended December 31, 2021
Revenues from external customers	$	663.0	$	9.7	$	—	$	672.7
Intersegment revenues	0.7		3.5		(4.2)		—
Total revenues	$	663.7	$	13.2	$	(4.2)	$	672.7
Depreciation and amortization	$	74.6	$	1.5	$	—	$	76.1
Interest expense	$	24.2	$	38.7	$	—	$	62.9
Income / (loss) from continuing operations before income tax	$	52.8	$	(30.4)	$	—	$	22.4
Cash capital expenditures	$	189.3	$	2.0	$	—	$	191.3

$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Year ended December 31, 2020
Revenues from external customers	$	651.2	$	9.3	$	—	$	660.5
Intersegment revenues	0.9		3.6		(4.5)		—
Total revenues	$	652.1	$	12.9	$	(4.5)	$	660.5
Depreciation and amortization	$	71.8	$	1.5	$	—	$	73.3
Interest expense	$	24.3	$	47.0	$	—	$	71.3
Loss on early extinguishment of debt	$	—	$	31.7	$	—	$	31.7
Income / (loss) from continuing operations before income tax	$	58.1	$	(70.0)	$	—	$	(11.9)
Cash capital expenditures	$	153.3	$	4.0	$	—	$	157.3

$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Year ended December 31, 2019
Revenues from external customers	$	734.3	$	9.4	$	—	$	743.7
Intersegment revenues	1.1		3.2		(4.3)		—
Total revenues	$	735.4	$	12.6	$	(4.3)	$	743.7
Depreciation and amortization	$	70.8	$	1.5	$	—	$	72.3
Interest expense	$	26.0	$	56.2	$	—	$	82.2
Loss on early extinguishment of debt	$	—	$	44.9	$	—	$	44.9
Income / (loss) from continuing operations before income tax	$	124.3	$	(92.8)	$	—	$	31.5
Cash capital expenditures	$	155.5	$	1.0	$	—	$	156.5

Total Assets	December 31, 2021		December 31, 2020		December 31, 2019
Utility	$	2,162.6	$	2,014.7	$	1,883.2
All Other (a)	9.2		21.3		52.6
DPL Consolidated	$	2,171.8	$	2,036.0	$	1,935.8

(a)    "All Other" includes Total assets related to the assets of discontinued operations and held-for-sale businesses and Eliminations as of December 31, 2021, 2020 and 2019. "All Other" Total assets as of December 31, 2021 and 2020 are primarily cash on hand from debt issuances.

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Revenue (Notes)

12 Months Ended

Dec. 31, 2021

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 revenue

AES Ohio 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. AES Ohio 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, AES Ohio is subject to rate regulation by federal and state regulators. This regulation sets the framework for the prices (“tariffs”) that AES Ohio is allowed to charge customers for electricity. Since tariffs are approved by the regulator, the price that AES Ohio has the right to bill corresponds directly with the value to the customer of AES Ohio'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 AES Ohio only serves as a billing agent if requested by the CRES provider. As such, AES Ohio 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 revenue

AES Ohio's share of the power produced at OVEC is sold to PJM and these revenues are classified as Wholesale revenues.

In PJM, the promise to sell 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 ancillary revenue

Compensation for use of AES Ohio’s transmission assets and compensation for various ancillary services are classified as RTO ancillary revenues. As AES Ohio 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. AES Ohio) and recognized as transmission revenues.

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 AES Ohio, 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.

Capacity revenue

AES Ohio records its share of OVEC capacity revenues as Capacity revenues. The capacity price is set through a competitive auction process established by PJM. Depending on the availability and performance of the OVEC units, there may be additional performance bonuses or penalties, which would be recognized only if it becomes probable that such bonus or penalties will be incurred.

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 $667.6 million, $645.0 million and $720.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table presents our revenue from contracts with customers and other revenue by segment for the years ended December 31, 2021, 2020 and 2019:

$ in millions	Utility		Other		Adjustments and Eliminations		Total
	Year ended December 31, 2021
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	364.9	$	—	$	—	$	364.9
Commercial revenue	122.6		—		—		122.6
Industrial revenue	57.5		—		—		57.5
Governmental revenue	26.1		—		—		26.1
Other (a)	12.2		—		—		12.2
Total retail revenue from contracts with customers	583.3		—		—		583.3
Wholesale revenue
Wholesale revenue from contracts with customers	19.5		—		(0.7)		18.8
RTO ancillary revenue	49.9		0.1		—		50.0
Capacity revenue	5.9		—		—		5.9
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (c)	—		9.6		—		9.6
Miscellaneous revenue	5.1		3.5		(3.5)		5.1
Total revenues	$	663.7	$	13.2	$	(4.2)	$	672.7

$ in millions	Utility		Other		Adjustments and Eliminations		Total
	Year ended December 31, 2020
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	362.3	$	—	$	—	$	362.3
Commercial revenue	114.6		—		—		114.6
Industrial revenue	51.2		—		—		51.2
Governmental revenue	36.6		—		—		36.6
Other (a)	12.7		—		—		12.7
Total retail revenue from contracts with customers	577.4		—		—		577.4
Other retail revenue (b)	9.0		—		—		9.0
Wholesale revenue
Wholesale revenue from contracts with customers	11.0		—		(0.9)		10.1
RTO ancillary revenue	44.0		—		—		44.0
Capacity revenue	4.2		—		—		4.2
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (c)	—		9.3		—		9.3
Miscellaneous revenue	6.5		3.6		(3.6)		6.5
Total revenues	$	652.1	$	12.9	$	(4.5)	$	660.5

$ in millions	Utility		Other		Adjustments and Eliminations		Total
	Year ended December 31, 2019
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	403.5	$	—	$	—	$	403.5
Commercial revenue	130.3		—		—		130.3
Industrial revenue	55.3		—		—		55.3
Governmental revenue	42.4		—		—		42.4
Other (a)	13.8		—		—		13.8
Total retail revenue from contracts with customers	645.3		—		—		645.3
Other retail revenue (b)	22.0		—		—		22.0
Wholesale revenue
Wholesale revenue from contracts with customers	17.2		—		(1.0)		16.2
RTO ancillary revenue	43.5		—		—		43.5
Capacity revenue	6.2		—		—		6.2
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (c)	—		9.4		—		9.4
Miscellaneous revenue	1.2		3.2		(3.3)		1.1
Total revenues	$	735.4	$	12.6	$	(4.3)	$	743.7

(a)    "Other" primarily includes Wright-Patterson Air Force Base revenues, billing service fees from CRES providers and other miscellaneous retail revenues from contracts with customers.

(b)    Other retail revenue primarily includes alternative revenue programs not accounted for under FASC 606.

(c)    Miscellaneous revenue from contracts with customers primarily includes revenues for various services provided by Miami Valley Lighting.

The balances of receivables from contracts with customers were     $61.5 million and $70.1 million as of December 31, 2021 and 2020, 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.

THE DAYTON POWER AND LIGHT COMPANY [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 revenue

AES Ohio 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. AES Ohio 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, AES Ohio is subject to rate regulation by federal and state regulators. This regulation sets the framework for the prices (“tariffs”) that AES Ohio is allowed to charge customers for electricity. Since tariffs are approved by the regulator, the price that AES Ohio has the right to bill corresponds directly with the value to the customer of AES Ohio'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 AES Ohio only serves as a billing agent if requested by the CRES provider. As such, AES Ohio 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 revenue

AES Ohio's share of the power produced at OVEC is sold to PJM and these revenues are classified as Wholesale revenues.

In PJM, the promise to sell 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 ancillary revenue

Compensation for use of AES Ohio’s transmission assets and compensation for various ancillary services are classified as RTO ancillary revenues. As AES Ohio 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. AES Ohio) and recognized as transmission revenues.

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 AES Ohio, 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.

Capacity revenue

AES Ohio records its share of OVEC capacity revenues as Capacity revenues. The capacity price is set through a competitive auction process established by PJM. Depending on the availability and performance of the OVEC units, there may be additional performance bonuses or penalties, which would be recognized only if it becomes probable that such bonus or penalties will be incurred.

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.

AES Ohio's revenue from contracts with customers was $658.6 million, $636.6 million and $712.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table presents our revenue from contracts with customers and other revenue for the years ended December 31, 2021, 2020 and 2019:

	Years ended December 31,
$ in millions	2021		2020		2019
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	364.9	$	362.3	$	403.5
Commercial revenue	122.6		114.6		130.3
Industrial revenue	57.5		51.2		55.3
Governmental revenue	26.1		36.6		42.4
Other (a)	12.2		12.7		13.8
Total retail revenue from contracts with customers	583.3		577.4		645.3
Other retail revenue (b)	—		9.0		22.0
Wholesale revenue
Wholesale revenue from contracts with customers	19.5		11.0		17.2
RTO ancillary revenue	49.9		44.0		43.5
Capacity revenue	5.9		4.2		6.2
Miscellaneous revenue
Miscellaneous revenue	5.1		6.5		1.2
Total revenues	$	663.7	$	652.1	$	735.4

(a)    "Other" primarily includes Wright-Patterson Air Force Base revenues, billing service fees from CRES providers and other miscellaneous retail revenues from contracts with customers.

(b)    Other retail revenue primarily includes alternative revenue programs not accounted for under FASC 606.

The balances of receivables from contracts with customers were     $60.8 million and $69.2 million as of December 31, 2021 and 2020, 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 AES Ohio.

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Discontinued Operations

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Conesville - In May 2020, AEP, the operator of the formerly co-owned Conesville EGU, retired Conesville Unit 4 as planned. On June 5, 2020, DPL and AES Ohio Generation, together with AEP, completed the transfer of their interests in the retired Unit 4, including the associated environmental liabilities, to an unaffiliated third-party purchaser. As a result, DPL recognized a gain on the transfer of $4.5 million for the year ended December 31, 2020. For the transaction, DPL will make quarterly cash expenditures, totaling $4.0 million, through July 2022, of which $3.4 million has been paid through December 31, 2021. The transfer of Conesville Unit 4 was the last step in DPL's plan to exit its AES Ohio Generation business operations.

Stuart and Killen – On December 20, 2019, DPL and AES Ohio Generation, together with AES Ohio Generation's joint owners in the retired Stuart and Killen generating facilities, completed the transfer of the retired generating facilities, including the associated environmental liabilities, to an unaffiliated third-party purchaser. As a result, DPL made cash expenditures of $51.0 million and recognized a gain on the transfer of $20.0 million for the year ended December 31, 2019.

DPL determined that the transfer of Conesville and the previous transfers and sales of other AES Ohio Generation assets constitute the disposal of a group of components, which, as a whole, represent a strategic shift to exit its AES Ohio Generation business. As such, the disposal of this group of components qualifies to be presented as discontinued operations. Therefore, the results of operations of this group of components were reported as such in the Consolidated Statements of Operations for all periods presented.

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

	Years ended December 31,
$ in millions	2021		2020		2019
Revenues	$	1.4	$	24.2	$	70.9
Operating costs and other expenses	(2.4)		(24.8)		(19.8)
Fixed-asset impairment	—		—		(3.5)
Income / (loss) from discontinued operations	(1.0)		(0.6)		47.6
Gain from disposal of discontinued operations	—		6.1		20.1
Income tax expense / (benefit) from discontinued operations	(0.2)		0.1		14.1
Net income / (loss) from discontinued operations	$	(0.8)	$	5.4	$	53.6

Cash flows related to discontinued operations are included in our Consolidated Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $(0.8) million, $3.2 million and $21.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Cash flows from investing activities for discontinued operations were $(1.6) million, $4.9 million and $(51.0) million for the years ended December 31, 2021, 2020 and 2019, respectively.

Joint Owners' Agreement for Stuart and Killen

Pursuant to the Joint Owners' Agreements for Stuart and Killen entered into in December 2019, existing assets and liabilities between the joint owners were settled and resulted in a credit to DPL's operating costs and other expenses of $19.4 million for the year ended December 31, 2019 in the table above.

AROs of Discontinued Operations

Prior to the transfer of the retired Stuart and Killen generating facilities, the facilities carried ARO liabilities consisting primarily of river intake and discharge structures, coal unloading facilities, landfills and ash disposal facilities. In the first quarter of 2019, DPL reduced the ARO liability related to the Stuart and Killen ash ponds and landfills by $22.5 million based on an updated internal analysis that reduced estimated closure costs associated with these ash ponds and landfills. The remaining ARO liability related to Stuart and Killen was included in the 2019 transfer. As these plants were no longer in service, the reduction to the ARO liability was recorded as a credit to depreciation and amortization expense in the same amount. The credit to depreciation and amortization expense is included in operating costs and other expenses of discontinued operations for the years ended December 31, 2019 in the table above.

DispositionsHutchings Coal Station – On December 3, 2020, AES Ohio transferred its interests in the retired Hutchings Coal Station to a third party, including its obligations to remediate the Station and its site, and the transfer occurred on that same date. As a result, DPL recognized a loss on the transfer of $4.7 million and made cash expenditures of $7.0 million, inclusive of cash expenditures for the transfer charges. DPL paid an additional $2.3 million on December 1, 2021 for the transfer. The Hutchings Coal Station was retired in 2013, and, as such, the income / (loss) from continuing operations before income tax related to the Hutchings Coal Station was immaterial for the years ended December 31, 2020 and 2019, excluding the loss on transfer noted above. Prior to the transfer, the Hutchings Coal Station was included in the Utility segment.

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Dispositions (Notes)

12 Months Ended

Dec. 31, 2021

Discontinued Operations

Discontinued Operations

Conesville - In May 2020, AEP, the operator of the formerly co-owned Conesville EGU, retired Conesville Unit 4 as planned. On June 5, 2020, DPL and AES Ohio Generation, together with AEP, completed the transfer of their interests in the retired Unit 4, including the associated environmental liabilities, to an unaffiliated third-party purchaser. As a result, DPL recognized a gain on the transfer of $4.5 million for the year ended December 31, 2020. For the transaction, DPL will make quarterly cash expenditures, totaling $4.0 million, through July 2022, of which $3.4 million has been paid through December 31, 2021. The transfer of Conesville Unit 4 was the last step in DPL's plan to exit its AES Ohio Generation business operations.

Stuart and Killen – On December 20, 2019, DPL and AES Ohio Generation, together with AES Ohio Generation's joint owners in the retired Stuart and Killen generating facilities, completed the transfer of the retired generating facilities, including the associated environmental liabilities, to an unaffiliated third-party purchaser. As a result, DPL made cash expenditures of $51.0 million and recognized a gain on the transfer of $20.0 million for the year ended December 31, 2019.

DPL determined that the transfer of Conesville and the previous transfers and sales of other AES Ohio Generation assets constitute the disposal of a group of components, which, as a whole, represent a strategic shift to exit its AES Ohio Generation business. As such, the disposal of this group of components qualifies to be presented as discontinued operations. Therefore, the results of operations of this group of components were reported as such in the Consolidated Statements of Operations for all periods presented.

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

	Years ended December 31,
$ in millions	2021		2020		2019
Revenues	$	1.4	$	24.2	$	70.9
Operating costs and other expenses	(2.4)		(24.8)		(19.8)
Fixed-asset impairment	—		—		(3.5)
Income / (loss) from discontinued operations	(1.0)		(0.6)		47.6
Gain from disposal of discontinued operations	—		6.1		20.1
Income tax expense / (benefit) from discontinued operations	(0.2)		0.1		14.1
Net income / (loss) from discontinued operations	$	(0.8)	$	5.4	$	53.6

Cash flows related to discontinued operations are included in our Consolidated Statements of Cash Flows. Cash flows from operating activities for discontinued operations were $(0.8) million, $3.2 million and $21.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Cash flows from investing activities for discontinued operations were $(1.6) million, $4.9 million and $(51.0) million for the years ended December 31, 2021, 2020 and 2019, respectively.

Joint Owners' Agreement for Stuart and Killen

Pursuant to the Joint Owners' Agreements for Stuart and Killen entered into in December 2019, existing assets and liabilities between the joint owners were settled and resulted in a credit to DPL's operating costs and other expenses of $19.4 million for the year ended December 31, 2019 in the table above.

AROs of Discontinued Operations

Prior to the transfer of the retired Stuart and Killen generating facilities, the facilities carried ARO liabilities consisting primarily of river intake and discharge structures, coal unloading facilities, landfills and ash disposal facilities. In the first quarter of 2019, DPL reduced the ARO liability related to the Stuart and Killen ash ponds and landfills by $22.5 million based on an updated internal analysis that reduced estimated closure costs associated with these ash ponds and landfills. The remaining ARO liability related to Stuart and Killen was included in the 2019 transfer. As these plants were no longer in service, the reduction to the ARO liability was recorded as a credit to depreciation and amortization expense in the same amount. The credit to depreciation and amortization expense is included in operating costs and other expenses of discontinued operations for the years ended December 31, 2019 in the table above.

DispositionsHutchings Coal Station – On December 3, 2020, AES Ohio transferred its interests in the retired Hutchings Coal Station to a third party, including its obligations to remediate the Station and its site, and the transfer occurred on that same date. As a result, DPL recognized a loss on the transfer of $4.7 million and made cash expenditures of $7.0 million, inclusive of cash expenditures for the transfer charges. DPL paid an additional $2.3 million on December 1, 2021 for the transfer. The Hutchings Coal Station was retired in 2013, and, as such, the income / (loss) from continuing operations before income tax related to the Hutchings Coal Station was immaterial for the years ended December 31, 2020 and 2019, excluding the loss on transfer noted above. Prior to the transfer, the Hutchings Coal Station was included in the Utility segment.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Discontinued Operations

DispositionsHutchings Coal Station – On December 3, 2020, AES Ohio agreed to transfer its interests in the retired Hutchings Coal Station to a third party, including its obligations to remediate the Station and its site, and the transfer occurred on that same date. As a result, AES Ohio recognized a loss on the transfer of $4.7 million and made cash expenditures of $7.0 million, inclusive of cash expenditures for the transfer charges. AES Ohio paid an additional $2.3 million on December 1, 2021 for the transfer. The Hutchings Coal Station was retired in 2013, and, as such, the income / (loss) from continuing operations before income tax related to the Hutchings Coal Station was immaterial for the years ended December 31, 2020 and 2019, excluding the loss on transfer noted above.

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Risks and Uncertainties

12 Months Ended

Dec. 31, 2021

Risks and Uncertainties [Abstract]

Risks and Uncertainties

Risks & Uncertainties

COVID-19 Pandemic

The COVID-19 pandemic has impacted global economic activity, including electricity and energy consumption, and caused significant volatility in financial markets. Many countries, including the U.S., reacted to the pandemic by instituting quarantines and mandating business and school closures or limitations and other social distancing measures. Responses to the COVID-19 pandemic by the State of Ohio and its residents and businesses continue to evolve as virus variants emerge, vaccine availability and usage continues and the state and businesses review and adjust the scope and requirements of social distancing measures. Social distancing measures designed to slow the spread of the virus, such as business closures and operations limitations, impact energy demand within our service territory. We continue to take a variety of measures in response to the spread of COVID-19 to ensure our ability to generate, transmit, distribute and sell electric energy, ensure the health and safety of our employees, contractors, customers and communities and provide essential services to the communities in which we operate. In addition to the impacts to demand within our service territory, we also have incurred and expect to continue to incur expenses relating to COVID-19, including those that relate to events outside of our control. The magnitude and duration of the COVID-19 pandemic is unknown at this time and may have material and adverse effects on our results of operations, financial condition and cash flows in future periods.

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Schedule II Valuation And Qualifying Accounts

12 Months Ended

Dec. 31, 2021

Schedule II Valuation And Qualifying Accounts

Schedule II - Valuation and Qualifying Accounts

DPL Inc.
VALUATION AND QUALIFYING ACCOUNTS
For each of the three years in the period ended December 31, 2021
$ in millions
Description	Balance at Beginning of Period		Additions		Deductions - Net Write-offs		Balance at End of Period
Year ended December 31, 2021
Deducted from accounts receivable -
Provision for uncollectible accounts	$	2.8	$	(0.4)	$	2.1	$	0.3
Deducted from deferred tax assets -
Valuation allowance for deferred tax assets	$	39.0	$	1.5	$	3.4	$	37.1
Year ended December 31, 2020
Deducted from accounts receivable -
Provision for uncollectible accounts	$	0.4	$	3.0	$	0.6	$	2.8
Deducted from deferred tax assets -
Valuation allowance for deferred tax assets	$	29.0	$	11.0	$	1.0	$	39.0
Year ended December 31, 2019
Deducted from accounts receivable -
Provision for uncollectible accounts	$	0.9	$	3.0	$	3.5	$	0.4
Deducted from deferred tax assets -
Valuation allowance for deferred tax assets	$	29.9	$	2.2	$	3.1	$	29.0

THE DAYTON POWER AND LIGHT COMPANY [Member]

Schedule II Valuation And Qualifying Accounts

THE DAYTON POWER AND LIGHT COMPANY
VALUATION AND QUALIFYING ACCOUNTS
For each of the three years in the period ended December 31, 2021
$ in millions
Description	Balance at Beginning of Period		Additions		Deductions - Net Write-offs		Balance at End of Period
Year ended December 31, 2021
Deducted from accounts receivable -
Provision for uncollectible accounts	$	2.8	$	(0.4)	$	2.1	$	0.3
Year ended December 31, 2020
Deducted from accounts receivable -
Provision for uncollectible accounts	$	0.4	$	3.0	$	0.6	$	2.8
Year ended December 31, 2019
Deducted from accounts receivable -
Provision for uncollectible accounts	$	0.9	$	3.0	$	3.5	$	0.4

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Overview and Summary of Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2021

Significant Accounting Policies [Line Items]

Property, Plant and Equipment, Impairment

GAAP requires that we test long-lived assets for impairment when indicators of impairment exist. If an asset is deemed to be impaired, we are required to write down the asset to its fair value with a charge to current earnings. The net book value of our property, plant, and equipment was $1,700.8 million and $1,565.3 million as of December 31, 2021 and 2020, respectively. We do not believe any of these assets are currently impaired. In making this assessment, we consider such factors as: the overall condition and distribution capacity of the assets; the expected ability to recover additional expenditures in the assets; and the anticipated demand and relative pricing of retail electricity in our service territory.

Debt, Policy [Policy Text Block]

Costs incurred in connection with the issuance of long-term debt are deferred and presented as a direct reduction from the face amount of that debt and amortized over the related financing period using the effective interest method. Debt issuance costs related to a line-of-credit or revolving credit facility are deferred and presented as an asset and amortized over the related financing period. Make-whole payments in connection with early debt retirements are classified as cash flows used in financing activities.

Financial Statement Presentation

We prepare Consolidated Financial Statements for DPL. DPL’s 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.

All material intercompany accounts and transactions are eliminated in consolidation. We have evaluated subsequent events through the date this report is issued.

Reclassifications

Certain amounts from prior periods have been reclassified to conform to the current period presentation.

Discontinued Operations, Policy [Policy Text Block]

Discontinued operations reporting occurs only when the disposal of a business or a group of assets represents a strategic shift that has (or will have) a major effect on our operations and financial results. We report financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Prior period amounts in the statement of operations and balance sheets are retrospectively revised to reflect the businesses determined to be discontinued operations. The cash flows of businesses that are determined to be discontinued operations are included within the relevant categories within operating, investing and financing activities on the face of the Consolidated Statements of Cash Flows.

Transactions between the businesses determined to be discontinued operations and businesses that are expected to continue to exist after the disposal are not eliminated to appropriately reflect the continuing operations and balances held-for-sale. The results of discontinued operations include any gain or loss recognized on closing or adjustment of the carrying amount to fair value. See Note 14 – Discontinued Operations for further information.

Use of Estimates

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: the carrying value of Property, plant and equipment; unbilled revenues; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; reserves recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits.

Revenue Recognition

Revenues are recognized 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. Energy sales to customers are based on the reading of their meters that occurs on a systematic basis throughout the month. We recognize the revenues on our Consolidated Statements of Operations using an accrual method for retail and other energy sales that have not yet been billed, but where electricity has been consumed. This is termed “unbilled revenues” and is a widely recognized and accepted practice for utilities. At the end of each month, unbilled revenues are determined by the estimation of unbilled energy provided to customers since the date of the last meter reading, estimated line losses, the assignment of unbilled energy provided to customer classes and the average rate per customer class. For additional information, see Note 13 – Revenue.

Property, Plant and Equipment

New property, plant and equipment additions are stated at cost. For regulated transmission and distribution property, cost includes direct labor and material, allocable overhead expenses and an allowance for funds used during construction (AFUDC). AFUDC represents the cost of borrowed funds and equity used to finance regulated construction projects. Capitalization of AFUDC and interest ceases at either project completion or at the date specified by regulators. AFUDC and capitalized interest was $3.7 million, $3.0 million and $3.2 million in the years ended December 31, 2021, 2020 and 2019, respectively.

For substantially all depreciable property, when a unit of property is retired, the original cost of that property less any salvage value is charged to Accumulated depreciation and amortization, consistent with composite depreciation practices.

Repairs and Maintenance

Costs associated with maintenance activities are recognized at the time the work is performed. These costs, which include labor, materials and supplies and outside services required to maintain equipment and facilities, are capitalized or expensed based on defined units of property.

Depreciation - Change in Estimate

Depreciation expense is calculated using the straight-line method, which allocates the cost of property over its estimated useful life. For DPL’s transmission and distribution assets, straight-line depreciation is applied monthly on an average composite basis using group rates that approximated 3.7% in 2021, 3.8% in 2020 and 4.0% in 2019. Depreciation expense was $72.9 million, $70.0 million and $67.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Regulatory Accounting

As a regulated utility, AES Ohio applies the provisions of FASC 980 “Regulated Operations”, which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory assets have been included as allowable costs for ratemaking purposes, as authorized by the PUCO or established regulatory practices. Regulatory liabilities generally represent obligations to make refunds or future rate reductions to customers for previous over collections or the deferral of revenues collected for costs that AES Ohio expects to incur in the future.

The deferral of costs (as regulatory assets) is appropriate only when the future recovery of such costs is probable. In assessing probability, we consider such factors as specific orders from the PUCO or the FERC, regulatory precedent and the current regulatory environment. To the extent recovery of costs is no longer deemed probable, related regulatory assets would be required to be expensed in current period earnings. Our regulatory assets and liabilities have been created pursuant to a specific order of the PUCO or the FERC or established regulatory practices, such as other utilities under the jurisdiction of the PUCO or the FERC being granted recovery of similar costs. It is probable, but not certain, that these regulatory assets will be recoverable, subject to approval by the PUCO or the FERC. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 2 – Regulatory Matters for more information.

Inventories

Inventories are carried at average cost, net of reserves, and include materials and supplies used for utility operations.

Intangibles

Intangibles include software and renewable energy credits. Renewable energy credits are carried on a weighted average cost basis and amortized as they are used or retired.

Software is amortized over seven years. Amortization expense was $3.2 million, $3.3 million and $4.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. The estimated amortization expense of this internal-

use software over the next five years is $9.9 million ($2.8 million in 2022, $2.1 million in 2023, $1.9 million in 2024, $1.6 million in 2025 and $1.5 million in 2026).

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective income tax bases. We establish an allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Our tax positions are evaluated under a more likely than not recognition threshold and measurement analysis before they are recognized for financial statement reporting. Uncertain tax positions have been classified as noncurrent income tax liabilities unless expected to be paid within one year. Our policy for interest and penalties is to recognize interest and penalties as a component of the provision for income taxes in the Consolidated Statement of Operations.

Income taxes payable, which are includable in allowable costs for ratemaking purposes in future years, are recorded as regulatory assets or liabilities with a corresponding deferred tax liability or asset. Investment tax credits that reduced federal income taxes in the years they arose have been deferred and are being amortized to income over the useful lives of the properties in accordance with regulatory treatment. See Note 2 – Regulatory Matters for additional information.

DPL and its subsidiaries file U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 7 – Income Taxes for additional information.

Financial Instruments

Our Master Trust investments in debt and equity financial instruments of publicly traded entities are classified as equity investments. These equity securities are carried at fair value and unrealized gains and losses on these securities are recorded in Other income. As these financial instruments are held to be used for the benefit of employees or former employees participating in employee benefit plans and are not used for general operating purposes, they are classified as non-current in Other non-current assets on the Consolidated Balance Sheets. See

Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities

collects certain excise taxes levied by state or local governments from its customers. AES Ohio’s excise taxes and certain other taxes are accounted for on a net basis and recorded as a reduction in revenues in the accompanying Consolidated Statements of Operations. The amounts of such taxes were as follows:

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents.

Restricted Cash

Restricted cash includes cash which is restricted as to withdrawal or usage. The restrictions relate to cash required for certain balance requirements.

Financial Derivatives

Financial Derivatives

We have contracts involving the physical delivery of energy. Because these contracts qualify for the normal purchases and normal sales scope exception in ASC 815, we have elected to account for them as accrual contracts, which are not adjusted for changes in fair value.

We have, in the past, used interest rate hedges to manage the interest rate risk of our variable rate debt. We used cash flow hedge accounting when the hedge or a portion of the hedge was deemed to be highly effective, which resulted in changes in fair value being recorded within accumulated other comprehensive loss, a component of shareholder’s deficit. We elected not to offset net derivative positions in the financial statements. Accordingly, we did not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 5 – Derivative Instruments and Hedging Activities for additional information.

Insurance and Claims Costs

Insurance and Claims Costs

In addition to insurance obtained from third-party providers, MVIC, a wholly-owned captive subsidiary of DPL, provides insurance coverage solely to us and our subsidiaries for workers’ compensation, general liability and property damage on an ongoing basis. Insurance and claims costs associated with MVIC include estimated liabilities of approximately $2.3 million and $3.2 million at December 31, 2021 and 2020, respectively, within Accrued and other current liabilities on the DPL Consolidated Balance Sheets. DPL has estimated liabilities for medical, life, disability and other reserves for claims costs below certain coverage thresholds of third-party providers of approximately $9.7 million and $11.1 million at December 31, 2021 and 2020, respectively, within Accrued and other current liabilities and Other non-current liabilities on the balance sheets. The estimated liabilities for workers’ compensation, medical, life and disability costs at DPL are actuarially determined using certain assumptions. There is uncertainty associated with these loss estimates, and actual results may differ from the estimates. Modification of these loss estimates based on experience and changed circumstances is reflected in the period in which the estimate is re-evaluated.

Pension and Postretirement Benefits

We recognize in our Consolidated Balance Sheets an asset or liability reflecting the funded status of pension and other postretirement plans with current-year changes from actuarial gains or losses related to our regulated operations, that would otherwise be recognized in AOCL, recorded as a regulatory asset as this can be recovered through future rates. Such changes that are not related to our regulated operations are recognized in AOCL. All plan assets are recorded at fair value. We follow the measurement date provisions of the accounting guidance, which require a year-end measurement date of plan assets and obligations for all defined benefit plans.

We account for and disclose pension and postretirement benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postretirement plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost and funding requirements of the plans. Consistent with the requirements of FASC 715, we apply a disaggregated discount rate approach for determining service cost and interest cost for our defined benefit pension plans and postretirement plans.

See Note 8 – Benefit Plans for more information.

Related Party Transactions

In the normal course of business, DPL enters into transactions with related parties. All material intercompany accounts and transactions are eliminated in DPL’s Consolidated Financial Statements. See Note 11 – Related Party Transactions for more information on Related Party Transactions.

Recently Issued Accounting Standards

New accounting pronouncements

The following table provides a brief description of recent 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.

Accounting Standard	Description	Date of Adoption	Effect on the financial statements upon adoption
New Accounting Standards Adopted
2016-13, 2018-19, 2019-04, 2019-05, 2019-10, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	See discussion of the ASUs below.	January 1, 2020.	The adoption of this standard had no material effect on our consolidated financial statements.

Adoption of FASC Topic 326, "Financial Instruments - Credit Losses"

On January 1, 2020, we adopted ASC 326 Financial Instruments - Credit Losses and its subsequent corresponding updates ("ASC 326"). The new standard updates the impairment model for financial assets measured at amortized cost, known as the Current Expected Credit Loss ("CECL") model. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities are required to use a new forward-looking "expected loss" model that generally results in the earlier recognition of an allowance for credit losses. For available-for-sale debt securities with unrealized losses, entities measure credit losses as it was done under previous GAAP, except that unrealized losses due to credit-related factors are now recognized as an allowance on the balance sheet with a corresponding adjustment to earnings in the income statement.

We applied the modified retrospective method of adoption for ASC 326. Under this transition method, we applied the transition provisions starting at the date of adoption. The CECL model primarily impacts the calculation of our expected credit losses in gross customer trade accounts receivable. The adoption of ASC 326 and the application of CECL on our trade accounts receivable did not have a material impact on our Consolidated Financial Statements.

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.

Accounting Standard	Description	Date of Adoption	Effect on the financial statements upon adoption
New Accounting Standards Issued but Not Yet Effective
2020-04 and 2021-01, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting	The amendments in these updates provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference to LIBOR or another reference rate expected to be discontinued by reference rate reform, and clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. These amendments are effective for a limited period of time (March 12, 2020 - December 31, 2022).	Effective for all entities as of March 12, 2020 through December 31, 2022.	We are currently evaluating the impact of adopting the standard on our consolidated financial statements.

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

DPL has a wholly-owned business trust, DPL Capital Trust II (the Trust), formed for the purpose of issuing trust capital securities to third-party investors. In 2003, DPL deconsolidated the Trust upon adoption of the accounting standards related to variable interest entities and currently treats the Trust as an unconsolidated subsidiary. The Trust holds mandatorily redeemable trust capital securities. The investment in the Trust, which amounts to $0.2 million and $0.2 million at December 31, 2021 and 2020, respectively, is included within Other noncurrent assets on the consolidated balance sheets. DPL also has a note payable to the Trust amounting to $15.6 million and $15.6 million at December 31, 2021 and 2020, respectively, that was established upon the Trust’s deconsolidation in 2003. See Note 6 – Long-term debt for additional information.

In addition to the obligations under the note payable mentioned above, DPL also agreed to a security obligation, which represents a full and unconditional guarantee of payments to the capital security holders of the Trust.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Significant Accounting Policies [Line Items]

Property, Plant and Equipment, Impairment

GAAP requires that we test long-lived assets for impairment when indicators of impairment exist. If an asset is deemed to be impaired, we are required to write down the asset to its fair value with a charge to current earnings. The net book value of our property, plant, and equipment was $1,679.2 million and $1,544.0 million as of December 31, 2021 and 2020, respectively. We do not believe any of these assets are currently impaired. In making this assessment, we consider such factors as: the overall condition and distribution capacity of the assets; the expected ability to recover additional expenditures in the assets; and the anticipated demand and relative pricing of retail electricity in our service territory.

Debt, Policy [Policy Text Block]

Costs incurred in connection with the issuance of long-term debt are deferred and presented as a direct reduction from the face amount of that debt and amortized over the related financing period using the effective interest method. Debt issuance costs related to a line-of-credit or revolving credit facility are deferred and presented as an asset and amortized over the related financing period. Make-whole payments in connection with early debt retirements are classified as cash flows used in financing activities.

Description of Business

is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such service to its approximately 534,000 customers located in West Central Ohio. AES Ohio provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio. AES Ohio sources all of the generation for its SSO customers through a competitive bid process. AES Ohio owned interests in the retired Hutchings Coal Station until its transfer in 2020 and currently owns numerous transmission facilities. Principal industries located in AES Ohio’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. AES Ohio's sales reflect the general economic conditions, seasonal weather patterns of the area, the market price of electricity and customer energy efficiency initiatives. AES Ohio also sells its proportional share of energy and capacity from its investment in OVEC into the wholesale market. AES Ohio has only one reportable segment, the Utility segment. In addition to AES Ohio's electric transmission and distribution businesses, the Utility segment includes revenues and costs associated with AES Ohio's investment in OVEC and the historical results of AES Ohio’s retired Hutchings Coal Station, which was sold in 2020.AES Ohio’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators. Accordingly, AES Ohio 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 or overcollections of riders.

Financial Statement Presentation

does not have any subsidiaries.We have evaluated subsequent events through the date this report is issued.

Reclassifications

Certain amounts from prior periods have been reclassified to conform to the current period presentation.

Use of Estimates

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: the carrying value of Property, plant and equipment; unbilled revenues; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; reserves recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits.

Property, Plant and Equipment

New property, plant and equipment additions are stated at cost. For regulated transmission and distribution property, cost includes direct labor and material, allocable overhead expenses and an allowance for funds used during construction (AFUDC). AFUDC represents the cost of borrowed funds and equity used to finance regulated construction projects. Capitalization of AFUDC and interest ceases at either project completion or at the date specified by regulators. AFUDC and capitalized interest was $3.7 million, $3.0 million and $3.2 million in the years ended December 31, 2021, 2020 and 2019, respectively.

For substantially all depreciable property, when a unit of property is retired, the original cost of that property less any salvage value is charged to Accumulated depreciation and amortization, consistent with composite depreciation practices.

Depreciation - Change in Estimate

Depreciation expense is calculated using the straight-line method, which allocates the cost of property over its estimated useful life. For AES Ohio’s transmission and distribution assets, straight-line depreciation is applied monthly on an average composite basis using group rates that approximated 2.8% in 2021, 2.8% in 2020 and 2.9% in 2019. Depreciation expense was $71.6 million, $68.6 million and $66.5 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Regulatory Accounting

As a regulated utility, AES Ohio applies the provisions of FASC 980 “Regulated Operations”, which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory assets have been included as allowable costs for ratemaking purposes, as authorized by the PUCO or established regulatory practices. Regulatory liabilities generally represent obligations to make refunds or future rate reductions to customers for previous over collections or the deferral of revenues collected for costs that AES Ohio expects to incur in the future.The deferral of costs (as regulatory assets) is appropriate only when the future recovery of such costs is probable. In assessing probability, we consider such factors as specific orders from the PUCO or the FERC, regulatory precedent and the current regulatory environment. To the extent recovery of costs is no longer deemed probable, related regulatory assets would be required to be expensed in current period earnings. Our regulatory assets and liabilities have been created pursuant to a specific order of the PUCO or the FERC or established regulatory practices, such as other utilities under the jurisdiction of the PUCO or the FERC being granted recovery of similar costs. It is probable, but not certain, that these regulatory assets will be recoverable, subject to approval by the PUCO or the FERC. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 2 – Regulatory Matters for more information.

Inventories

nventories are carried at average cost, net of reserves, and include materials and supplies used for utility operations.

Intangibles

Intangibles include software and renewable energy credits. Renewable energy credits are carried on a weighted average cost basis and amortized as they are used or retired.

Software is amortized over seven years. Amortization expense was $3.0 million, $3.2 million and $4.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. The estimated amortization expense of this internal-use software over the next five years is $9.9 million ($2.8 million in 2022, $2.1 million in 2023, $1.9 million in 2024, $1.6 million in 2025 and $1.5 million in 2026).

Financial Instruments

Our Master Trust investments in debt and equity financial instruments of publicly traded entities are classified as equity investments. These equity securities are carried at fair value and unrealized gains and losses on these securities are recorded in Other income. As these financial instruments are held to be used for the benefit of employees or former employees participating in employee benefit plans and are not used for general operating purposes, they are classified as non-current in Other non-current assets on the Balance Sheets. See Note 4 – Fair Value for additional information.

Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities

	Years ended December 31,
$ in millions	2021		2020		2019
Excise taxes collected	$	48.7	$	48.1	$	50.1

Cash and Cash Equivalents

Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents.

Restricted Cash

Restricted cash includes cash which is restricted as to withdrawal or usage. The restrictions relate to cash required for certain balance requirements.

The following table summarizes cash, cash equivalents and restricted cash amounts reported within the Balance Sheets that reconcile to the total of such amounts as shown on the Statements of Cash Flows:

	December 31,
$ in millions	2021		2020
Cash and cash equivalents	$	14.4	$	11.7
Restricted cash (included in Prepayments and other current assets)	0.1		0.1
Cash, Cash Equivalents and Restricted Cash, End of Period	$	14.5	$	11.8

Financial Derivatives

We have contracts involving the physical delivery of energy. Because these contracts qualify for the normal purchases and normal sales scope exception in ASC 815, we have elected to account for them as accrual contracts, which are not adjusted for changes in fair value.

We have, in the past, used interest rate hedges to manage the interest rate risk of our variable rate debt. We used cash flow hedge accounting when the hedge or a portion of the hedge was deemed to be highly effective, which resulted in changes in fair value being recorded within accumulated other comprehensive loss, a component of shareholder’s equity. We elected not to offset net derivative positions in the financial statements. Accordingly, we did not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 5 – Derivative Instruments and Hedging Activities for additional information.

Pension and Postretirement Benefits

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective income tax bases. We establish an allowance when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Our tax positions are evaluated under a more likely than not recognition threshold and measurement analysis before they are recognized for financial statement reporting. Uncertain tax positions have been classified as noncurrent income tax liabilities unless expected to be paid within one year. Our policy for interest and penalties is to recognize interest and penalties as a component of the provision for income taxes in the Statement of Operations.

Income taxes payable, which are includable in allowable costs for ratemaking purposes in future years, are recorded as regulatory assets or liabilities with a corresponding deferred tax liability or asset. Investment tax credits that reduced federal income taxes in the years they arose have been deferred and are being amortized to income over the useful lives of the properties in accordance with regulatory treatment. See Note 2 – Regulatory Matters for additional information.

AES Ohio files U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 7 – Income Taxes for additional information.

Recently Issued Accounting Standards

Accounting Standard	Description	Date of Adoption	Effect on the financial statements upon adoption
New Accounting Standards Adopted
2016-13, 2018-19, 2019-04, 2019-05, 2019-10, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments	See discussion of the ASUs below.	January 1, 2020.	The adoption of this standard had no material effect on our financial statements.

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Overview and Summary of Significant Accounting Policies Overview and Summary of Significant Accounting Polices (Tables)

12 Months Ended

Dec. 31, 2021

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule of Accounts, Notes, Loans and Financing Receivable

Accounts receivable are as follows at December 31, 2021 and 2020:

	December 31,
$ in millions	2021		2020
Accounts receivable, net
Customer receivables	$	42.3	$	48.5
Unbilled revenue	19.2		21.6
Amounts due from affiliates	3.1		0.2
Due from PJM transmission enhancement settlement (a)	1.7		1.7
Other	5.5		0.5
Allowance for credit losses	(0.3)		(2.8)
Total accounts receivable, net	$	71.5	$	69.7

(a)    See Note 2 – Regulatory Matters for more information.

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The changes in the components of Accumulated other comprehensive loss during the years ended December 31, 2021 and 2020 are as follows:

$ in millions	Gains / (losses) on cash flow hedges		Change in unfunded pension obligation		Total
Balance at January 1, 2020	$	14.5	$	(18.1)	$	(3.6)
Other comprehensive loss before reclassifications	—		(8.8)		(8.8)
Amounts reclassified from accumulated other comprehensive loss to earnings	(0.9)		1.0		0.1
Net current period other comprehensive loss	(0.9)		(7.8)		(8.7)
Balance at December 31, 2020	13.6		(25.9)		(12.3)
Other comprehensive income before reclassifications	—		6.4		6.4
Amounts reclassified from accumulated other comprehensive loss to earnings	(0.8)		1.9		1.1
Net current period other comprehensive income / (loss)	(0.8)		8.3		7.5
Balance at December 31, 2021	$	12.8	$	(17.6)	$	(4.8)

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The amounts reclassified out of Accumulated other comprehensive loss by component during the years ended December 31, 2021, 2020 and 2019 are as follows:

Details about Accumulated Other Comprehensive Loss Components	Affected line item in the Consolidated Statements of Operations	Years ended December 31,
$ in millions		2021		2020		2019
Gains and losses on cash flow hedges (Note 5):
	Interest expense	(1.0)		(1.1)		(1.2)
	Income tax expense	0.2		0.2		0.1
	Net of income taxes	(0.8)		(0.9)		(1.1)
	Income tax benefit from discontinued operations	—		—		(0.4)
Amortization of defined benefit pension items (Note 8):
	Other expense	2.5		1.3		0.2
	Income tax benefit	(0.6)		(0.3)		—
	Net of income taxes	1.9		1.0		0.2
Total reclassifications for the period, net of income taxes		$	1.1	$	0.1	$	(1.3)

Accounts Receivable, Allowance for Credit Loss

The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the years ended December 31, 2021 and 2020:

$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2021	$	2.8	$	(0.4)	$	(3.5)	$	1.4	$	0.3
2020	$	0.4	$	3.0	$	(2.3)	$	1.7	$	2.8

Schedule of Cash and Cash Equivalents [Table Text Block]

The following table summarizes cash, cash equivalents and restricted cash amounts reported within the Consolidated Balance Sheets that reconcile to the total of such amounts as shown on the Consolidated Statements of Cash Flows:

	December 31,
$ in millions	2021		2020
Cash and cash equivalents	$	26.6	$	25.4
Restricted cash (included in Prepayments and other current assets)	0.1		0.1
Cash, Cash Equivalents and Restricted Cash, End of Period	$	26.7	$	25.5

THE DAYTON POWER AND LIGHT COMPANY [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule of Accounts, Notes, Loans and Financing Receivable

Accounts receivable are as follows at December 31, 2021 and 2020:

	December 31,
$ in millions	2021		2020
Accounts receivable, net
Customer receivables	$	41.6	$	47.6
Unbilled revenue	19.2		21.6
Amounts due from affiliates	4.4		1.9
Due from PJM transmission enhancement settlement (a)	1.7		1.7
Other	5.3		0.2
Allowance for credit losses	(0.3)		(2.8)
Total accounts receivable, net	$	71.9	$	70.2

(a)    See Note 2 – Regulatory Matters for more information.

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

$ in millions	Gains / (losses) on cash flow hedges		Change in unfunded pension obligation		Total
Balance at January 1, 2020	$	(0.4)	$	(36.5)	$	(36.9)
Other comprehensive loss before reclassifications	(0.2)		(8.7)		(8.9)
Amounts reclassified from accumulated other comprehensive loss to earnings	0.6		3.1		3.7
Net current period other comprehensive income / (loss)	0.4		(5.6)		(5.2)
Balance at December 31, 2020	—		(42.1)		(42.1)
Other comprehensive income before reclassifications	—		6.4		6.4
Amounts reclassified from accumulated other comprehensive loss to earnings	—		3.9		3.9
Net current period other comprehensive income	—		10.3		10.3
Balance at December 31, 2021	$	—	$	(31.8)	$	(31.8)

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The amounts reclassified out of Accumulated other comprehensive loss by component during the years ended December 31, 2021, 2020 and 2019 are as follows:

Details about Accumulated Other Comprehensive Loss Components	Affected line item in the Statements of Operations	Years ended December 31,
$ in millions		2021		2020		2019
Gains and losses on cash flow hedges (Note 5):
	Interest expense	—		(0.2)		(0.2)
	Income tax expense	—		0.8		—
	Net of income taxes	—		0.6		(0.2)
Amortization of defined benefit pension items (Note 8):
	Other expense	5.0		4.0		3.5
	Income tax benefit	(1.1)		(0.9)		(0.5)
	Net of income taxes	3.9		3.1		3.0
Total reclassifications for the period, net of income taxes		$	3.9	$	3.7	$	2.8

Accounts Receivable, Allowance for Credit Loss

The following table is a rollforward of our allowance for credit losses related to the accounts receivable balances for the years ended December 31, 2021 and 2020:

$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2021	$	2.8	$	(0.4)	$	(3.5)	$	1.4	$	0.3
2020	$	0.4	$	3.0	$	(2.3)	$	1.7	$	2.8

Schedule of Cash and Cash Equivalents [Table Text Block]

The following table summarizes cash, cash equivalents and restricted cash amounts reported within the Balance Sheets that reconcile to the total of such amounts as shown on the Statements of Cash Flows:

	December 31,
$ in millions	2021		2020
Cash and cash equivalents	$	14.4	$	11.7
Restricted cash (included in Prepayments and other current assets)	0.1		0.1
Cash, Cash Equivalents and Restricted Cash, End of Period	$	14.5	$	11.8

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Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Regulatory Assets and Liabilities [Table Text Block]

The following table presents DPL’s Regulatory assets and liabilities:

	Type of Recovery	Amortization Through	December 31,
$ in millions			2021		2020
Regulatory assets, current:
Undercollections to be collected through rate riders	A/B	2022	$	23.9	$	26.8
Rate case expenses being recovered in base rates	B	2022	0.6		0.7
Total regulatory assets, current			24.5		27.5
Regulatory assets, non-current:
Pension benefits	B	Ongoing	76.2		94.4
Unrecovered OVEC charges	C	Undetermined	28.9		28.9
Regulatory compliance costs	B	Undetermined	6.3		6.3
Smart grid and AMI costs	B	2026	5.2		8.5
Unamortized loss on reacquired debt	B	Various	4.3		7.1
Deferred storm costs	A	Undetermined	15.2		11.5
Deferred rate case costs	B	Undetermined	1.8		—
Deferred vegetation management and other	A/B	Undetermined	18.7		15.7
Decoupling deferral	C	Undetermined	13.8		13.8
Uncollectible deferral	C	Undetermined	6.4		7.4
Total regulatory assets, non-current			176.8		193.6
Total regulatory assets			$	201.3	$	221.1
Regulatory liabilities, current:
Overcollection of costs to be refunded through rate riders	A/B	2022	$	14.2	$	18.0
Transmission formula rate credits	A	2022	$	0.4	$	—
Total regulatory liabilities, current			14.6		18.0
Regulatory liabilities, non-current:
Estimated costs of removal - regulated property		Not Applicable	145.2		138.8
Deferred income taxes payable through rates		Various	57.5		61.2
TCJA regulatory liability	B	Ongoing	6.5		7.2
Transmission formula rate credits	A	2023	12.2		—
PJM transmission enhancement settlement	A	2025	5.1		7.0
Postretirement benefits	B	Ongoing	2.8		4.1
Total regulatory liabilities, non-current			229.3		218.3
Total regulatory liabilities			$	243.9	$	236.3

A – Recovery of incurred costs plus rate of return.

B – Recovery of incurred costs without a rate of return.

C – Recovery not yet determined, but recovery is probable of occurring in future rate proceedings.

Subsidiaries [Member]

Schedule of Regulatory Assets and Liabilities [Table Text Block]

The following table presents AES Ohio’s Regulatory assets and liabilities:

	Type of Recovery	Amortization Through	December 31,
$ in millions			2021		2020
Regulatory assets, current:
Undercollections to be collected through rate riders	A/B	2022	$	23.9	$	26.8
Rate case expenses being recovered in base rates	B	2022	0.6		0.7
Total regulatory assets, current			24.5		27.5
Regulatory assets, non-current:
Pension benefits	B	Ongoing	76.2		94.4
Unrecovered OVEC charges	C	Undetermined	28.9		28.9
Regulatory compliance costs	B	Undetermined	6.3		6.3
Smart grid and AMI costs	B	2026	5.2		8.5
Unamortized loss on reacquired debt	B	Various	4.3		7.1
Deferred storm costs	A	Undetermined	15.2		11.5
Deferred rate case costs	B	Undetermined	1.8		—
Deferred vegetation management and other	A/B	Undetermined	18.7		15.7
Decoupling deferral	C	Undetermined	13.8		13.8
Uncollectible deferral	C	Undetermined	6.4		7.4
Total regulatory assets, non-current			176.8		193.6
Total regulatory assets			$	201.3	$	221.1
Regulatory liabilities, current:
Overcollection of costs to be refunded through rate riders	A/B	2022	$	14.2	$	18.0
Transmission formula rate credits	A	2022	0.4		—
Total regulatory liabilities, current			14.6		18.0
Regulatory liabilities, non-current:
Estimated costs of removal - regulated property		Not Applicable	145.2		138.8
Deferred income taxes payable through rates		Various	57.5		61.2
TCJA regulatory liability	B	Ongoing	6.5		7.2
Transmission formula rate credits	A	2023	12.2		—
PJM transmission enhancement settlement	A	2025	5.1		7.0
Postretirement benefits	B	Ongoing	2.8		4.1
Total regulatory liabilities, non-current			229.3		218.3
Total regulatory liabilities			$	243.9	$	236.3

A – Recovery of incurred costs plus rate of return.

B – Recovery of incurred costs without a rate of return.

C – Recovery not yet determined, but recovery is probable of occurring in future rate proceedings.

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Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Line Items]

Summary of 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%

Changes in the Liability for Generation AROs

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.

Changes in the Liability for Transmission and Distribution Asset Removal Costs

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]

Summary of 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%

Changes in the Liability for Generation AROs

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.

Changes in the 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

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Entity Information [Line Items]

Fair Value and Cost of Non-Derivative Instruments

The table below presents the fair value and cost of our non-derivative financial instruments at December 31, 2021 and 2020.

	December 31, 2021				December 31, 2020
$ in millions	Cost		Fair Value		Cost		Fair Value
Assets
Money market funds	$	0.4	$	0.4	$	0.3	$	0.3
Equity securities	1.9		5.1		2.1		4.5
Debt securities	3.8		3.9		4.0		4.1
Total assets	$	6.1	$	9.4	$	6.4	$	8.9
	Carrying Value		Fair Value		Carrying Value		Fair Value
Liabilities
Long-term debt	$	1,395.5	$	1,519.7	$	1,393.6	$	1,571.6

Fair Value of Assets and Liabilities Measured on Recurring Basis

The fair value of assets and liabilities at December 31, 2021 and 2020 and the respective category within the fair value hierarchy for DPL was determined as follows:

$ in millions	Fair Value at December 31, 2021 (a)								Fair Value at December 31, 2020 (a)
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Master trust assets
Money market funds	$	0.4	$	—	$	—	$	0.4	$	0.3	$	—	$	—	$	0.3
Equity securities	—		5.1		—		5.1		—		4.5		—		4.5
Debt securities	—		3.9		—		3.9		—		4.1		—		4.1
Total assets	$	0.4	$	9.0	$	—	$	9.4	$	0.3	$	8.6	$	—	$	8.9
Liabilities
Long-term debt	$	—	$	1,502.5	$	17.2	$	1,519.7	$	—	$	1,554.2	$	17.4	$	1,571.6
Total liabilities	$	—	$	1,502.5	$	17.2	$	1,519.7	$	—	$	1,554.2	$	17.4	$	1,571.6

(a)Includes credit valuation adjustment

THE DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

Fair Value and Cost of Non-Derivative Instruments

The table below presents the fair value and cost of our non-derivative instruments at December 31, 2021 and 2020. See also Note 5 – Derivative Instruments and Hedging Activities for the fair values of our derivative instruments.

	December 31, 2021				December 31, 2020
$ in millions	Cost		Fair Value		Cost		Fair Value
Assets
Money market funds	$	0.4	$	0.4	$	0.3	$	0.3
Equity securities	1.9		5.1		2.1		4.5
Debt securities	3.8		3.9		4.0		4.1
Total assets	$	6.1	$	9.4	$	6.4	$	8.9
	Carrying Value		Fair Value		Carrying Value		Fair Value
Liabilities
Long-term debt	$	574.3	$	642.6	$	574.1	$	656.0

Fair Value of Assets and Liabilities Measured on Recurring Basis

$ in millions	Fair Value at December 31, 2021 (a)								Fair Value at December 31, 2020 (a)
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Money market funds	$	0.4	$	—	$	—	$	0.4	$	0.3	$	—	$	—	$	0.3
Equity securities	—		5.1		—		5.1		—		4.5		—		4.5
Debt securities	—		3.9		—		3.9		—		4.1		—		4.1
Total assets	$	0.4	$	9.0	$	—	$	9.4	$	0.3	$	8.6	$	—	$	8.9
Liabilities
Long-term debt	$	—	$	625.4	$	17.2	$	642.6	$	—	$	638.6	$	17.4	$	656.0
Total liabilities	$	—	$	625.4	$	17.2	$	642.6	$	—	$	638.6	$	17.4	$	656.0

(a)    Includes credit valuation adjustment

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Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2021

Gains or Losses Recognized in AOCI for the Cash Flow Hedges

The following tables provide information on gains or losses recognized in AOCL for the cash flow hedges for the periods indicated:

	Years ended December 31,
	2021		2020		2019
$ in millions (net of tax)	Interest Rate Hedge		Interest Rate Hedge		Power		Interest Rate Hedge
Beginning accumulated derivative gain in AOCL	$	13.6	$	14.5	$	0.4	$	16.6
Net losses associated with current period hedging transactions	—		—		—		(1.0)
Net gains reclassified to earnings:
Interest expense	(0.8)		(0.9)		—		(1.1)
Income from discontinued operations before income tax	—		—		(0.4)		—
Ending accumulated derivative gain in AOCL	$	12.8	$	13.6	$	—	$	14.5
Portion expected to be reclassified to earnings in the next twelve months	$	(0.8)

THE DAYTON POWER AND LIGHT COMPANY [Member]

Gains or Losses Recognized in AOCI for the Cash Flow Hedges

	Years ended December 31,
	2020		2019
$ in millions (net of tax)	Interest Rate Hedge		Interest Rate Hedge
Beginning accumulated derivative gain / (loss) in AOCL	$	(0.4)	$	0.6
Net losses associated with current period hedging transactions	(0.2)		(0.8)
Net losses / (gains) reclassified to earnings:
Interest expense	0.6		(0.2)
Ending accumulated derivative loss in AOCL	$	—	$	(0.4)

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Debt (Tables)

12 Months Ended

Dec. 31, 2021

Debt Instrument [Line Items]

Long-term Debt

$ in millions	Interest Rate	Maturity	December 31, 2021		December 31, 2020
First Mortgage Bonds	3.95%	2049	$	425.0	$	425.0
First Mortgage Bonds	3.20%	2040	140.0		140.0
U.S. Government note	4.20%	2061	17.2		17.4
Unamortized deferred financing costs			(5.4)		(5.7)
Unamortized debt discounts and premiums, net			(2.5)		(2.6)
Total long-term debt at subsidiary			574.3		574.1
Senior unsecured bonds	4.125%	2025	415.0		415.0
Senior unsecured bonds	4.35%	2029	400.0		400.0
Note to DPL Capital Trust II (a)	8.125%	2031	15.6		15.6
Unamortized deferred financing costs			(8.6)		(10.2)
Unamortized debt discounts and premiums, net			(0.8)		(0.9)
Total long-term debt			1,395.5		1,393.6
Less: current portion			(0.2)		(0.2)
Long-term debt, net of current portion			$	1,395.3	$	1,393.4

(a)    Note payable to related party. See Note 11 – Related Party Transactions for additional information.

Long-term Debt Maturities

At December 31, 2021, maturities of long-term debt are summarized as follows:

Due during the years ending December 31,
$ in millions
2022	$	0.2
2023	0.2
2024	0.2
2025	415.2
2026	0.2
Thereafter	996.8
	1,412.8
Unamortized discounts	(3.3)
Deferred financing costs, net	(14.0)
Total long-term debt	$	1,395.5

THE DAYTON POWER AND LIGHT COMPANY [Member]

Debt Instrument [Line Items]

Long-term Debt

$ in millions	Interest Rate	Maturity	December 31, 2021		December 31, 2020
First Mortgage Bonds	3.95%	2049	$	425.0	$	425.0
First Mortgage Bonds	3.2%	2040	140.0		140.0
U.S. Government note	4.2%	2061	17.2		17.4
Unamortized deferred financing costs			(5.4)		(5.7)
Unamortized debt discount			(2.5)		(2.6)
Total long-term debt			574.3		574.1
Less: current portion			(0.2)		(0.2)
Long-term debt, net of current portion			$	574.1	$	573.9

Long-term Debt Maturities

At December 31, 2021, maturities of long-term debt are summarized as follows:

Due during the years ending December 31,
$ in millions
2022	$	0.2
2023	0.2
2024	0.2
2025	0.2
2026	0.2
Thereafter	581.2
	582.2
Unamortized discounts	(5.4)
Deferred financing costs, net	(2.5)
Total long-term debt	$	574.3

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes [Line Items]

Schedule of Unrecognized Tax Benefits Roll Forward

$ in millions	2021		2020		2019
Unrecognized tax benefits at January 1	$	1.4	$	3.5	$	3.5
Gross increases - current period tax positions	—		—		—
Gross decreases - prior period tax positions	(1.0)		(2.1)		—
Unrecognized tax benefits at December 31	$	0.4	$	1.4	$	3.5

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The amounts reclassified out of Accumulated other comprehensive loss by component during the years ended December 31, 2021, 2020 and 2019 are as follows:

Details about Accumulated Other Comprehensive Loss Components	Affected line item in the Consolidated Statements of Operations	Years ended December 31,
$ in millions		2021		2020		2019
Gains and losses on cash flow hedges (Note 5):
	Interest expense	(1.0)		(1.1)		(1.2)
	Income tax expense	0.2		0.2		0.1
	Net of income taxes	(0.8)		(0.9)		(1.1)
	Income tax benefit from discontinued operations	—		—		(0.4)
Amortization of defined benefit pension items (Note 8):
	Other expense	2.5		1.3		0.2
	Income tax benefit	(0.6)		(0.3)		—
	Net of income taxes	1.9		1.0		0.2
Total reclassifications for the period, net of income taxes		$	1.1	$	0.1	$	(1.3)

Components of Income Tax Expense

DPL’s components of income tax expense for both continuing and discontinued operations were as follows:

	Years ended December 31,
$ in millions	2021		2020		2019
Components of tax benefit
Federal - current	$	(5.5)	$	(45.1)	$	(22.0)
State and Local - current	—		(0.1)		0.6
Total current	(5.5)		(45.2)		(21.4)
Federal - deferred	4.4		38.7		14.1
State and local - deferred	0.4		1.1		1.1
Total deferred	4.8		39.8		15.2
Total tax benefit	$	(0.7)	$	(5.4)	$	(6.2)

Schedule of Effective Income Tax Rate Reconciliation

The following table summarizes a reconciliation of the U.S. statutory federal income tax rate to the effective tax rate, as a percentage of total income before taxes for the years ended December 31, 2021, 2020 and 2019:

	Years ended December 31,
	2021		2020		2019
Statutory Federal tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of Federal tax benefit	2.8	%	(13.1)	%	1.4	%
AFUDC - equity	3.3	%	(23.6)	%	(0.1)	%
Depreciation of flow-through differences	(29.0)	%	94.8	%	(28.2)	%
Amortization of investment tax credits	(0.6)	%	4.1	%	(0.3)	%
Other, net	(0.8)	%	1.2	%	(0.1)	%
Effective tax rate	(3.3)	%	84.4	%	(6.3)	%

Components of Deferred Tax Assets and Liabilities

	December 31,
$ in millions	2021		2020
Net non-current assets / (liabilities)
Depreciation / property basis	$	(166.4)	$	(160.5)
Income taxes recoverable	13.6		14.4
Regulatory assets	(20.6)		(21.0)
Investment tax credit	0.6		0.6
Compensation and employee benefits	(3.4)		(1.7)
Intangibles	(0.4)		(0.4)
Long-term debt	(1.5)		(1.3)
Other (a)	(9.8)		(7.3)
Net non-current liabilities	$	(187.9)	$	(177.2)

(a)    The Other caption includes deferred tax assets of $37.1 million in 2021 and $39.0 million in 2020 related to state and local tax net operating loss carryforwards, with related valuation allowances of $37.1 million in 2021 and $39.0 million in 2020. These net operating loss carryforwards expire from 2020 to 2037.

Tax expense / (benefit) credited to Accumulated other comprehensive loss

The following table presents the tax expense / (benefit) related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss.

	Years ended December 31,
$ in millions	2021		2020		2019
Tax expense / (benefit)	$	2.2	$	(2.6)	$	(0.5)

THE DAYTON POWER AND LIGHT COMPANY [Member]

Income Taxes [Line Items]

Schedule of Unrecognized Tax Benefits Roll Forward

$ in millions	2021		2020		2019
Unrecognized tax benefits at January 1	$	1.4	$	4.8	$	4.8
Gross increases - current period tax positions	—		—		—
Gross decreases - prior period tax positions	(1.0)		(3.4)		—
Unrecognized tax benefits at December 31	$	0.4	$	1.4	$	4.8

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

The amounts reclassified out of Accumulated other comprehensive loss by component during the years ended December 31, 2021, 2020 and 2019 are as follows:

Details about Accumulated Other Comprehensive Loss Components	Affected line item in the Statements of Operations	Years ended December 31,
$ in millions		2021		2020		2019
Gains and losses on cash flow hedges (Note 5):
	Interest expense	—		(0.2)		(0.2)
	Income tax expense	—		0.8		—
	Net of income taxes	—		0.6		(0.2)
Amortization of defined benefit pension items (Note 8):
	Other expense	5.0		4.0		3.5
	Income tax benefit	(1.1)		(0.9)		(0.5)
	Net of income taxes	3.9		3.1		3.0
Total reclassifications for the period, net of income taxes		$	3.9	$	3.7	$	2.8

Components of Income Tax Expense

’s components of income tax expense were as follows:

	Years ended December 31,
$ in millions	2021		2020		2019
Components of tax expense / (benefit)
Federal - current	$	1.1	$	3.5	$	8.6
State and Local - current	0.1		0.1		0.6
Total current	1.2		3.6		9.2
Federal - deferred	4.1		2.4		(10.9)
State and local - deferred	0.4		1.0		1.1
Total deferred	4.5		3.4		(9.8)
Tax expense / (benefit)	$	5.7	$	7.0	$	(0.6)

Schedule of Effective Income Tax Rate Reconciliation

December 31, 2021, 2020 and 2019:

	Years ended December 31,
	2021		2020		2019
Statutory Federal tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of Federal tax benefit	1.1	%	1.5	%	1.3	%
AFUDC - Equity	1.3	%	2.6	%	(0.1)	%
Amortization of investment tax credits	(0.2)	%	(0.5)	%	(0.2)	%
Depreciation of flow-through differences	(11.7)	%	(10.6)	%	(22.6)	%
Change in tax reserves	(0.1)	%	(6.1)	%	—	%
Other - net	(0.6)	%	4.1	%	0.1	%
Effective tax rate	10.8	%	12.0	%	(0.5)	%

Components of Deferred Tax Assets and Liabilities

	December 31,
$ in millions	2021		2020
Net non-current assets / (liabilities)
Depreciation / property basis	$	(167.7)	$	(161.7)
Income taxes recoverable	13.6		14.4
Regulatory assets	(21.4)		(21.7)
Investment tax credit	0.5		0.5
Compensation and employee benefits	(3.4)		(0.1)
Other	(5.0)		(3.5)
Net non-current liabilities	$	(183.4)	$	(172.1)

Tax expense / (benefit) credited to Accumulated other comprehensive loss

The following table presents the tax expense / (benefit) related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss.

	Years ended December 31,
$ in millions	2021		2020		2019
Tax expense / (benefit)	$	2.9	$	(2.3)	$	(0.4)

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Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2021

Defined Benefit Plan, Plan Assets, Category

The fair values of our pension plan assets at December 31, 2021 by asset category are as follows:

$ in millions	Market Value at December 31, 2021		Quoted prices in active markets for identical assets		Significant observable inputs		Significant unobservable inputs
Asset category			(Level 1)		(Level 2)		(Level 3)
Mutual fund - equities (a)	$	151.8	$	—	$	151.8	$	—
Mutual fund - debt (b)	144.0		—		144.0		—
Government debt securities (c)	65.8		—		65.8		—
Cash and cash equivalents (d)	1.9		1.9		—		—
Total pension plan assets	$	363.5	$	1.9	$	361.6	$	—

(a)    This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method.

(b)    This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method.

(c)    This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method.

(d)    This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost.

The fair values of our pension plan assets at December 31, 2020 by asset category are as follows:

$ in millions	Market Value at December 31, 2020		Quoted prices in active markets for identical assets		Significant observable inputs		Significant unobservable inputs
Asset category			(Level 1)		(Level 2)		(Level 3)
Mutual fund - equities (a)	$	153.8	$	—	$	153.8	$	—
Mutual fund - debt (b)	144.6		—		144.6		—
Government debt securities (c)	64.8		—		64.8		—
Cash and cash equivalents (d)	1.9		1.9		—		—
Total pension plan assets	$	365.1	$	1.9	$	363.2	$	—

(a)    This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method.

(b)    This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method.

(c)    This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method.

(d)    This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost.

Pension And Postretirement Benefit Plans' Obligations And Assets

The following tables set forth the changes in our pension plans' obligations and assets recorded on the Consolidated Balance Sheets at December 31, 2021 and 2020. The amounts presented in the following tables for pension obligations include the collective bargaining plan formula, traditional management plan formula and cash balance plan formula and the SERP in the aggregate and have not been adjusted for $1.7 million, $1.4 million and

$1.4 million of costs billed to the Service Company for the years ended December 31, 2021, 2020 and 2019, respectively.

$ in millions	Years ended December 31,
Change in benefit obligation	2021		2020
Benefit obligation at January 1	$	449.5	$	421.5
Service cost	4.5		3.7
Interest cost	8.2		11.8
Plan amendments	2.3		—
Actuarial (gain) / loss	(12.7)		52.7
Benefits paid	(35.6)		(40.2)
Benefit obligation at December 31	416.2		449.5
Change in plan assets
Fair value of plan assets at January 1	365.1		352.0
Actual return on plan assets	24.0		45.6
Employer contributions	10.0		7.7
Benefits paid	(35.6)		(40.2)
Fair value of plan assets at December 31	363.5		365.1
Unfunded status of plan	$	(52.7)	$	(84.4)
	December 31,
Amounts recognized in the Balance sheets	2021		2020
Current liabilities	$	(0.2)	$	(0.2)
Non-current liabilities	(52.5)		(84.2)
Net liability at end of year	$	(52.7)	$	(84.4)
Amounts recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax
Components:
Prior service cost	$	8.3	$	6.9
Net actuarial loss	93.3		124.0
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	101.6	$	130.9
Recorded in:
Regulatory asset	$	74.1	$	92.7
Accumulated Other Comprehensive Loss	27.5		38.2
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	101.6	$	130.9

Schedule of Net Periodic Benefit Cost / (Income)

The net periodic benefit cost of the pension plans was:

	Years ended December 31,
$ in millions	2021			2020			2019
Service cost	$	4.5		$	3.7		$	3.7
Interest cost	8.2			11.8			14.9
Expected return on assets	(15.0)			(18.6)			(20.1)
Amortization of unrecognized:
Actuarial loss	9.0			1.0			4.2
Prior service cost	0.9			6.1			1.3
Net periodic benefit cost	$	7.6		$	4.0		$	4.0
Rates relevant to each year's expense calculations
Discount rate	2.44		%	3.33		%	4.35		%
Expected return on plan assets	4.55		%	5.60		%	6.25		%

Schedule of Allocation of Plan Assets

The following table summarizes our target pension plan allocation for 2021:

	Long-Term Mid-Point Target Allocation	Percentage of plan assets as of December 31,
Asset category		2021	2020
Equity Securities	41%	42%	42%
Debt Securities	59%	57%	57%
Cash and Cash Equivalents	—%	1%	1%

Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets And Regulatory Liabilities

The following table presents other changes in plan assets and benefit obligations recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities.

	Years ended December 31,
$ in millions	2021		2020		2019
Net actuarial loss / (gain)	$	(21.7)	$	25.8	$	5.3
Prior service cost	2.3		—		—
Reversal of amortization item:
Net actuarial loss	(9.0)		(1.0)		(4.2)
Prior service cost	(0.9)		(6.1)		(1.3)
Total recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities	$	(29.3)	$	18.7	$	(0.2)
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities	$	(21.7)	$	22.7	$	3.8

Weighted Average Assumptions Used to Determine Benefit Obligations

The weighted average assumptions used to determine benefit obligations at December 31, 2021, 2020 and 2019 were:

Benefit Obligation Assumptions	Pension
	2021	2020	2019
Discount rate for obligations	2.83%	2.44%	3.33%
Rate of compensation increases	3.21%	3.21%	3.94%

Estimated Future Benefit Payments and Medicare Part D Reimbursements

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

Estimated future benefit payments
$ in millions due within the following years:	Pension
2022	$	24.5
2023	$	24.3
2024	$	24.1
2025	$	23.7
2026	$	23.6
2027 - 2031	$	114.4

Schedule of Unrecognized Tax Benefits Roll Forward

$ in millions	2021		2020		2019
Unrecognized tax benefits at January 1	$	1.4	$	3.5	$	3.5
Gross increases - current period tax positions	—		—		—
Gross decreases - prior period tax positions	(1.0)		(2.1)		—
Unrecognized tax benefits at December 31	$	0.4	$	1.4	$	3.5

THE DAYTON POWER AND LIGHT COMPANY [Member]

Schedule of Net Periodic Benefit Cost / (Income)

	Years ended December 31,
$ in millions	2021			2020			2019
Service cost	$	4.5		$	3.7		$	3.7
Interest cost	8.2			11.8			14.9
Expected return on assets	(15.0)			(18.6)			(20.1)
Amortization of unrecognized:
Actuarial loss	11.4			8.7			7.0
Prior service cost	1.1			1.3			1.8
Net periodic benefit cost	$	10.2		$	6.9		$	7.3
Rates relevant to each year's expense calculations
Discount rate	2.44		%	3.33		%	4.35		%
Expected return on plan assets	4.55		%	5.60		%	6.25		%

Schedule of Allocation of Plan Assets

The following table summarizes our target pension plan allocation for 2021:

	Long-Term Mid-Point Target Allocation	Percentage of plan assets as of December 31,
Asset category		2021	2020
Equity Securities	41%	42%	42%
Debt Securities	59%	57%	57%
Cash and Cash Equivalents	—%	1%	1%

Weighted Average Assumptions Used to Determine Benefit Obligations

The weighted average assumptions used to determine benefit obligations at December 31, 2021, 2020 and 2019 were:

Benefit Obligation Assumptions	Pension
	2021	2020	2019
Discount rate for obligations	2.83%	2.44%	3.33%
Rate of compensation increases	3.21%	3.21%	3.94%

Estimated Future Benefit Payments and Medicare Part D Reimbursements

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

Estimated future benefit payments
$ in millions due within the following years:	Pension
2022	$	24.5
2023	$	24.3
2024	$	24.1
2025	$	23.7
2026	$	23.6
2027 - 2031	$	114.4

Schedule of Unrecognized Tax Benefits Roll Forward

$ in millions	2021		2020		2019
Unrecognized tax benefits at January 1	$	1.4	$	4.8	$	4.8
Gross increases - current period tax positions	—		—		—
Gross decreases - prior period tax positions	(1.0)		(3.4)		—
Unrecognized tax benefits at December 31	$	0.4	$	1.4	$	4.8

Pension [Member]

Pension And Postretirement Benefit Plans' Obligations And Assets

The following tables set forth the changes in our pension plans' obligations and assets recorded on the Consolidated Balance Sheets at December 31, 2021 and 2020. The amounts presented in the following tables for pension obligations include the collective bargaining plan formula, traditional management plan formula and cash balance plan formula and the SERP in the aggregate and have not been adjusted for $1.7 million, $1.4 million and

$1.4 million of costs billed to the Service Company for the years ended December 31, 2021, 2020 and 2019, respectively.

$ in millions	Years ended December 31,
Change in benefit obligation	2021		2020
Benefit obligation at January 1	$	449.5	$	421.5
Service cost	4.5		3.7
Interest cost	8.2		11.8
Plan amendments	2.3		—
Actuarial (gain) / loss	(12.7)		52.7
Benefits paid	(35.6)		(40.2)
Benefit obligation at December 31	416.2		449.5
Change in plan assets
Fair value of plan assets at January 1	365.1		352.0
Actual return on plan assets	24.0		45.6
Employer contributions	10.0		7.7
Benefits paid	(35.6)		(40.2)
Fair value of plan assets at December 31	363.5		365.1
Unfunded status of plan	$	(52.7)	$	(84.4)
	December 31,
Amounts recognized in the Balance sheets	2021		2020
Current liabilities	$	(0.2)	$	(0.2)
Non-current liabilities	(52.5)		(84.2)
Net liability at end of year	$	(52.7)	$	(84.4)
Amounts recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax
Components:
Prior service cost	$	8.3	$	6.9
Net actuarial loss	93.3		124.0
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	101.6	$	130.9
Recorded in:
Regulatory asset	$	74.1	$	92.7
Accumulated Other Comprehensive Loss	27.5		38.2
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	101.6	$	130.9

Fair Value Measurements for Plan Assets

The fair values of our pension plan assets at December 31, 2021 by asset category are as follows:

$ in millions	Market Value at December 31, 2021		Quoted prices in active markets for identical assets		Significant observable inputs		Significant unobservable inputs
Asset category			(Level 1)		(Level 2)		(Level 3)
Mutual fund - equities (a)	$	151.8	$	—	$	151.8	$	—
Mutual fund - debt (b)	144.0		—		144.0		—
Government debt securities (c)	65.8		—		65.8		—
Cash and cash equivalents (d)	1.9		1.9		—		—
Total pension plan assets	$	363.5	$	1.9	$	361.6	$	—

(a)    This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method.

(b)    This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method.

(c)    This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method.

(d)    This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost.

The fair values of our pension plan assets at December 31, 2020 by asset category are as follows:

$ in millions	Market Value at December 31, 2020		Quoted prices in active markets for identical assets		Significant observable inputs		Significant unobservable inputs
Asset category			(Level 1)		(Level 2)		(Level 3)
Mutual fund - equities (a)	$	153.8	$	—	$	153.8	$	—
Mutual fund - debt (b)	144.6		—		144.6		—
Government debt securities (c)	64.8		—		64.8		—
Cash and cash equivalents (d)	1.9		1.9		—		—
Total pension plan assets	$	365.1	$	1.9	$	363.2	$	—

(a)    This category includes investments in equity securities of U.S. companies of any market capitalization and other investments (i.e.: futures, swaps, currency forwards) of foreign, emerging markets and seeks to provide long-term total return, which includes capital appreciation and income. The funds are valued using the net asset value method.

(b)    This category includes investments in high quality issues within the U.S. corporate bond markets and global high yield bonds and emerging markets debt denominated in local currency. The funds seek to provide current income and long-term capital preservation along with access to higher yielding, relatively liquid fixed income securities. The funds are valued using the net asset value method.

(c)    This category is comprised of investments U.S. treasury strips, U.S. government agency obligations, and U.S. treasury obligations. The funds seek investment returns over the long term and are valued using the net asset value method.

(d)    This category represents an investment that seeks to maximize current income on cash reserves to the extent consistent with principal preservation and maintenance of liquidity from a portfolio of obligations of the U.S. Government, its agencies or municipalities, and related money market instruments. Principal preservation is a primary objective. The fund is valued at cost.

Pension [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]

Pension And Postretirement Benefit Plans' Obligations And Assets

The following tables set forth the changes in our pension plans' obligations and assets recorded on the Balance Sheets at December 31, 2021 and 2020. The amounts presented in the following tables for pension obligations include the collective bargaining plan formula, traditional management plan formula and cash balance plan formula and the SERP in the aggregate and have not been adjusted for $1.7 million, $1.4 million and $1.4 million of costs billed to the Service Company for the years ended December 31, 2021, 2020 and 2019, respectively, or $1.9 million,

$1.4 million and $1.5 million of costs billed to AES Ohio Generation for the years ended December 31, 2021, 2020 and 2019, respectively.

$ in millions	Years ended December 31,
Change in benefit obligation	2021		2020
Benefit obligation at January 1	$	449.5	$	421.5
Service cost	4.5		3.7
Interest cost	8.2		11.8
Plan amendments	2.3		—
Actuarial (gain) / loss	(12.7)		52.7
Benefits paid	(35.6)		(40.2)
Benefit obligation at December 31	416.2		449.5
Change in plan assets
Fair value of plan assets at January 1	365.1		352.0
Actual return on plan assets	24.0		45.6
Employer contributions	10.0		7.7
Benefits paid	(35.6)		(40.2)
Fair value of plan assets at December 31	363.5		365.1
Unfunded status of plan	$	(52.7)	$	(84.4)
	December 31,
Amounts recognized in the Balance sheets	2021		2020
Current liabilities	$	(0.2)	$	(0.2)
Non-current liabilities	(52.5)		(84.2)
Net liability at end of year	$	(52.7)	$	(84.4)
Amounts recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax
Components:
Prior service cost	$	8.5	$	7.3
Net actuarial loss	119.5		152.6
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	128.0	$	159.9
Recorded in:
Regulatory asset	$	74.0	$	92.7
Accumulated Other Comprehensive Loss	54.0		67.2
Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities, pre-tax	$	128.0	$	159.9

Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets And Regulatory Liabilities

	Years ended December 31,
$ in millions	2021		2020		2019
Net actuarial loss / (gain)	$	(21.7)	$	25.8	$	5.3
Prior service cost	2.3		—		—
Reversal of amortization item:
Net actuarial loss	(11.4)		(8.7)		(7.0)
Prior service cost	(1.1)		(1.3)		(1.8)
Total recognized in Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities	$	(31.9)	$	15.8	$	(3.5)
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Loss, Regulatory Assets and Regulatory Liabilities	$	(21.7)	$	22.7	$	3.8

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Contractual Obligations, Commercial Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Schedule Of Contractual Obligations And Commercial Commitments

We enter into various contractual obligations and other commercial commitments that may affect the liquidity of our operations. At December 31, 2021, these include:

	Payments due in:
$ in millions	Total		Less than 1 year		2 - 3 years		4 - 5 years		More than 5 years
Electricity purchase commitments	$	82.9	$	82.9	$	—	$	—	$	—
Purchase orders and other contractual obligations	$	149.4	$	138.7	$	10.7	$	—	$	—

THE DAYTON POWER AND LIGHT COMPANY [Member]

Schedule Of Contractual Obligations And Commercial Commitments

We enter into various contractual obligations and other commercial commitments that may affect the liquidity of our operations. At December 31, 2021, these include:

	Payments due in:
$ in millions	Total		Less than 1 year		2 - 3 years		4 - 5 years		More than 5 years
Electricity purchase commitments	$	82.9	$	82.9	$	—	$	—	$	—
Purchase orders and other contractual obligations	$	146.8	$	136.1	$	10.7	$	—	$	—

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Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2021

Entity Information [Line Items]

Schedule of Related Party Transactions [Table Text Block]

The following table provides a summary of our related party transactions:

	Years ended December 31,
$ in millions	2021		2020		2019
Transactions with the Service Company
Net charges for services provided	$	39.2	$	34.6	$	30.2
Transactions with other AES affiliates:
Payments for health, welfare and benefit plans	$	13.9	$	10.7	$	11.2
Consulting and other services	$	1.4	$	0.8	$	0.7
Balances with related parties:	At December 31, 2021		At December 31, 2020
Net payable to the Service Company	$	(24.7)	$	(14.8)
Net receivable from / (payable to) AES and other AES affiliates	$	0.7	$	(1.7)

THE DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

Schedule of Related Party Transactions [Table Text Block]

The following table provides a summary of our related party transactions:

	Years ended December 31,
$ in millions	2021		2020		2019
AES Ohio Operation & Maintenance Expenses:
Premiums charged for insurance services provided by MVIC (a)	$	3.3	$	3.4	$	3.1
Transactions with the Service Company:
Net charges for services provided	$	38.1	$	33.4	$	27.7
Transactions with other AES affiliates:
Charges for health, welfare and benefit plans	$	10.5	$	10.1	$	10.4
Charges to affiliates for non-power goods or services (b)	$	5.8	$	4.1	$	4.1
Consulting and other services	$	1.4	$	0.8	$	0.7
Balances with related parties:	At December 31, 2021		At December 31, 2020
Net payable to the Service Company	$	(24.7)	$	(14.8)
Net receivable from / (payable to) AES and other AES affiliates	$	0.5	$	(2.1)

(a)    MVIC, a wholly-owned captive insurance subsidiary of DPL, provides insurance coverage to AES Ohio and other DPL subsidiaries for workers’ compensation, general liability, property damages and directors’ and officers’ liability. These amounts represent insurance premiums charged by MVIC to AES Ohio.

(b)    In the normal course of business AES Ohio incurred and recorded expenses on behalf of DPL affiliates. Such expenses included but were not limited to employee-related expenses, accounting, information technology, payroll, legal and other administration expenses. AES Ohio subsequently charged these expenses to the affiliates at AES Ohio’s cost and credited the expense in which they were initially recorded.

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Business Segments Business Segments (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting Information [Line Items]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

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

$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Year ended December 31, 2021
Revenues from external customers	$	663.0	$	9.7	$	—	$	672.7
Intersegment revenues	0.7		3.5		(4.2)		—
Total revenues	$	663.7	$	13.2	$	(4.2)	$	672.7
Depreciation and amortization	$	74.6	$	1.5	$	—	$	76.1
Interest expense	$	24.2	$	38.7	$	—	$	62.9
Income / (loss) from continuing operations before income tax	$	52.8	$	(30.4)	$	—	$	22.4
Cash capital expenditures	$	189.3	$	2.0	$	—	$	191.3

$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Year ended December 31, 2020
Revenues from external customers	$	651.2	$	9.3	$	—	$	660.5
Intersegment revenues	0.9		3.6		(4.5)		—
Total revenues	$	652.1	$	12.9	$	(4.5)	$	660.5
Depreciation and amortization	$	71.8	$	1.5	$	—	$	73.3
Interest expense	$	24.3	$	47.0	$	—	$	71.3
Loss on early extinguishment of debt	$	—	$	31.7	$	—	$	31.7
Income / (loss) from continuing operations before income tax	$	58.1	$	(70.0)	$	—	$	(11.9)
Cash capital expenditures	$	153.3	$	4.0	$	—	$	157.3

$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Year ended December 31, 2019
Revenues from external customers	$	734.3	$	9.4	$	—	$	743.7
Intersegment revenues	1.1		3.2		(4.3)		—
Total revenues	$	735.4	$	12.6	$	(4.3)	$	743.7
Depreciation and amortization	$	70.8	$	1.5	$	—	$	72.3
Interest expense	$	26.0	$	56.2	$	—	$	82.2
Loss on early extinguishment of debt	$	—	$	44.9	$	—	$	44.9
Income / (loss) from continuing operations before income tax	$	124.3	$	(92.8)	$	—	$	31.5
Cash capital expenditures	$	155.5	$	1.0	$	—	$	156.5

Total Assets	December 31, 2021		December 31, 2020		December 31, 2019
Utility	$	2,162.6	$	2,014.7	$	1,883.2
All Other (a)	9.2		21.3		52.6
DPL Consolidated	$	2,171.8	$	2,036.0	$	1,935.8

(a)    "All Other" includes Total assets related to the assets of discontinued operations and held-for-sale businesses and Eliminations as of December 31, 2021, 2020 and 2019. "All Other" Total assets as of December 31, 2021 and 2020 are primarily cash on hand from debt issuances.

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Revenue (Tables)

12 Months Ended

Dec. 31, 2021

Disaggregation of Revenue [Table Text Block]

DPL's revenue from contracts with customers was $667.6 million, $645.0 million and $720.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table presents our revenue from contracts with customers and other revenue by segment for the years ended December 31, 2021, 2020 and 2019:

$ in millions	Utility		Other		Adjustments and Eliminations		Total
	Year ended December 31, 2021
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	364.9	$	—	$	—	$	364.9
Commercial revenue	122.6		—		—		122.6
Industrial revenue	57.5		—		—		57.5
Governmental revenue	26.1		—		—		26.1
Other (a)	12.2		—		—		12.2
Total retail revenue from contracts with customers	583.3		—		—		583.3
Wholesale revenue
Wholesale revenue from contracts with customers	19.5		—		(0.7)		18.8
RTO ancillary revenue	49.9		0.1		—		50.0
Capacity revenue	5.9		—		—		5.9
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (c)	—		9.6		—		9.6
Miscellaneous revenue	5.1		3.5		(3.5)		5.1
Total revenues	$	663.7	$	13.2	$	(4.2)	$	672.7

$ in millions	Utility		Other		Adjustments and Eliminations		Total
	Year ended December 31, 2020
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	362.3	$	—	$	—	$	362.3
Commercial revenue	114.6		—		—		114.6
Industrial revenue	51.2		—		—		51.2
Governmental revenue	36.6		—		—		36.6
Other (a)	12.7		—		—		12.7
Total retail revenue from contracts with customers	577.4		—		—		577.4
Other retail revenue (b)	9.0		—		—		9.0
Wholesale revenue
Wholesale revenue from contracts with customers	11.0		—		(0.9)		10.1
RTO ancillary revenue	44.0		—		—		44.0
Capacity revenue	4.2		—		—		4.2
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (c)	—		9.3		—		9.3
Miscellaneous revenue	6.5		3.6		(3.6)		6.5
Total revenues	$	652.1	$	12.9	$	(4.5)	$	660.5

$ in millions	Utility		Other		Adjustments and Eliminations		Total
	Year ended December 31, 2019
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	403.5	$	—	$	—	$	403.5
Commercial revenue	130.3		—		—		130.3
Industrial revenue	55.3		—		—		55.3
Governmental revenue	42.4		—		—		42.4
Other (a)	13.8		—		—		13.8
Total retail revenue from contracts with customers	645.3		—		—		645.3
Other retail revenue (b)	22.0		—		—		22.0
Wholesale revenue
Wholesale revenue from contracts with customers	17.2		—		(1.0)		16.2
RTO ancillary revenue	43.5		—		—		43.5
Capacity revenue	6.2		—		—		6.2
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (c)	—		9.4		—		9.4
Miscellaneous revenue	1.2		3.2		(3.3)		1.1
Total revenues	$	735.4	$	12.6	$	(4.3)	$	743.7

(a)    "Other" primarily includes Wright-Patterson Air Force Base revenues, billing service fees from CRES providers and other miscellaneous retail revenues from contracts with customers.

(b)    Other retail revenue primarily includes alternative revenue programs not accounted for under FASC 606.

(c)    Miscellaneous revenue from contracts with customers primarily includes revenues for various services provided by Miami Valley Lighting.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Disaggregation of Revenue [Table Text Block]

's revenue from contracts with customers was $658.6 million, $636.6 million and $712.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table presents our revenue from contracts with customers and other revenue for the years ended December 31, 2021, 2020 and 2019:

	Years ended December 31,
$ in millions	2021		2020		2019
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	364.9	$	362.3	$	403.5
Commercial revenue	122.6		114.6		130.3
Industrial revenue	57.5		51.2		55.3
Governmental revenue	26.1		36.6		42.4
Other (a)	12.2		12.7		13.8
Total retail revenue from contracts with customers	583.3		577.4		645.3
Other retail revenue (b)	—		9.0		22.0
Wholesale revenue
Wholesale revenue from contracts with customers	19.5		11.0		17.2
RTO ancillary revenue	49.9		44.0		43.5
Capacity revenue	5.9		4.2		6.2
Miscellaneous revenue
Miscellaneous revenue	5.1		6.5		1.2
Total revenues	$	663.7	$	652.1	$	735.4

(a)    "Other" primarily includes Wright-Patterson Air Force Base revenues, billing service fees from CRES providers and other miscellaneous retail revenues from contracts with customers.

(b)    Other retail revenue primarily includes alternative revenue programs not accounted for under FASC 606.

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Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2021

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Summary of Balance Sheet and Profit and Loss Information for Discontinued Operations

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

	Years ended December 31,
$ in millions	2021		2020		2019
Revenues	$	1.4	$	24.2	$	70.9
Operating costs and other expenses	(2.4)		(24.8)		(19.8)
Fixed-asset impairment	—		—		(3.5)
Income / (loss) from discontinued operations	(1.0)		(0.6)		47.6
Gain from disposal of discontinued operations	—		6.1		20.1
Income tax expense / (benefit) from discontinued operations	(0.2)		0.1		14.1
Net income / (loss) from discontinued operations	$	(0.8)	$	5.4	$	53.6

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Risks and Uncertainties (Tables)	12 Months Ended
	Dec. 31, 2021
Risks and Uncertainties [Abstract]
Unusual Risks and Uncertainties

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Overview and Summary of Significant Accounting Policies (Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Excise Taxes Collected	$ 48.7	$ 48.1	$ 50.1
THE DAYTON POWER AND LIGHT COMPANY [Member]
Excise Taxes Collected	$ 48.7	$ 48.1	$ 50.1

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Overview and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) mi² customer segment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Aug. 01, 2018 USD ($)
Significant Accounting Policies [Line Items]
Other Investments	$ 0.2	$ 0.2
Cash and Cash Equivalents, at Carrying Value	26.6	25.4
Restricted Cash and Cash Equivalents, Current	0.1	0.1
Capitalized Software, estimated amortization expense for year after next	$ 2.1
Number of reportable segments | segment	1
Service area, square miles | mi²	6,000
Capitalized interest for unregulated generation property	$ 3.7	$ 3.0	$ 3.2
Straight-line depreciation average annual composite basis (percent)	3.70%	3.80%	4.00%
Depreciation and amortization	$ 76.1	$ 73.3	$ 72.3
Insurance and claims costs	2.3	3.2
Insurance costs below coverage thresholds of third-party providers	9.7	11.1
Capitalized Computer Software, Amortization	3.2	3.3	4.4
Capitalized Software, estimated amortization over remaining useful life	9.9
Capitalized Software, estimated amortization expense for next twelve months	2.8
Capitalized Software, estimated amortization expense for three years in the future	1.9
Capitalized Software, estimated amortization expense for four years in the future	1.6
Capitalized Software, estimated amortization expense for five years in the future	1.5
Restricted Cash and Cash Equivalents	26.7	25.5	47.0	$ 111.7
Carrying Value	1,700.8	1,565.3
Other Assets, Noncurrent	30.1	24.6
Customer receivables	42.3	48.5
Unbilled revenue	19.2	21.6
Amounts due from partners in jointly owned stations	3.1	0.2
Due from PJM transmission settlement	1.7	1.7			$ 40.6
Other	5.5	0.5
Accounts Receivable, Allowance for Credit Loss	(0.3)	(2.8)
Accounts receivable, net	71.5	69.7
Accounts Receivable, Allowance for Credit Loss, Current	0.3	2.8	0.4
Accounts Receivable, Credit Loss Expense (Reversal)	(0.4)	3.0
Accounts Receivable, Allowance for Credit Loss, Writeoff	(3.5)	(2.3)
Accounts Receivable, Allowance for Credit Loss, Recovery	1.4	1.7
Accumulated other comprehensive income/(loss)	(4.8)	(12.3)	(3.6)
Other comprehensive loss before reclassifications	6.4	(8.8)
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent	1.1	0.1
Other Comprehensive Income (Loss), Net of Tax	7.5	(8.7)	(5.8)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	(0.8)	(0.9)	(1.1)
Other Comprehensive Income (Loss), Defined Benefit Plan, Transition Asset (Obligation), Reclassification Adjustment from AOCI, after Tax	1.9	1.0	0.2
Interest expense	62.9	71.3	82.2
Income Tax Expense (Benefit)	(0.5)	(5.5)	(20.3)
Income tax expense from discontinued operations	(0.2)	0.1	14.1
Other income	(62.9)	(101.0)	(123.4)
Prepaid Implementation Costs for Software as a Service
Significant Accounting Policies [Line Items]
Other Assets, Noncurrent	8.0	4.1
THE DAYTON POWER AND LIGHT COMPANY [Member]
Significant Accounting Policies [Line Items]
Cash and Cash Equivalents, at Carrying Value	14.4	11.7
Restricted Cash and Cash Equivalents, Current	0.1	0.1
Payments of Ordinary Dividends, Common Stock	52.0		95.0
Capitalized Software, estimated amortization expense for year after next	$ 2.1
Approximate number of retail customers | customer	534,000
Service area, square miles | mi²	6,000
Capitalized interest for unregulated generation property	$ 3.7	$ 3.0	$ 3.2
Straight-line depreciation average annual composite basis (percent)	2.80%	2.80%	2.90%
Depreciation and amortization	$ 74.6	$ 71.8	$ 70.8
Insurance costs below coverage thresholds of third-party providers	3.4	3.5
Capitalized Software, estimated amortization over remaining useful life		9.9
Capitalized Software, estimated amortization expense for next twelve months	2.8
Capitalized Software, estimated amortization expense for three years in the future	1.9
Capitalized Software, estimated amortization expense for four years in the future	1.6
Capitalized Software, estimated amortization expense for five years in the future	1.5
Restricted Cash and Cash Equivalents	14.5	11.8	21.3	$ 66.2
Carrying Value	1,679.2	1,544.0
Other Assets, Noncurrent	29.9	24.0
Customer receivables	41.6	47.6
Unbilled revenue	19.2	21.6
Amounts due from partners in jointly owned stations	4.4	1.9
Due from PJM transmission settlement	1.7	1.7			$ 40.6
Other	5.3	0.2
Accounts Receivable, Allowance for Credit Loss	(0.3)	(2.8)
Accounts receivable, net	71.9	70.2
Accounts Receivable, Allowance for Credit Loss, Current	0.3	2.8	0.4
Accounts Receivable, Credit Loss Expense (Reversal)	(0.4)	3.0
Accounts Receivable, Allowance for Credit Loss, Writeoff	(3.5)	(2.3)
Accounts Receivable, Allowance for Credit Loss, Recovery	1.4	1.7
Accumulated other comprehensive income/(loss)	(31.8)	(42.1)	(36.9)
Other comprehensive loss before reclassifications		(8.9)
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent	3.9	3.7
Other Comprehensive Income (Loss), Net of Tax	10.3	(5.2)	(1.6)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	0.0	0.6	(0.2)
Other Comprehensive Income (Loss), Defined Benefit Plan, Transition Asset (Obligation), Reclassification Adjustment from AOCI, after Tax	3.9	3.1	3.0
Interest expense	24.2	24.3	26.0
Income Tax Expense (Benefit)	5.7	7.0	(0.6)
Other income	(26.7)	(25.4)	(26.4)
THE DAYTON POWER AND LIGHT COMPANY [Member] | Prepaid Implementation Costs for Software as a Service
Significant Accounting Policies [Line Items]
Other Assets, Noncurrent	8.0	4.1
Note to DPL Capital Trust II Maturing in 2031 - 8.125% [Member]
Significant Accounting Policies [Line Items]
Note payable to trust	15.6	15.6
Electric Generation, Transmission and Distribution Equipment [Member]
Significant Accounting Policies [Line Items]
Depreciation and amortization	72.9	70.0	67.9
Electric Generation, Transmission and Distribution Equipment [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Significant Accounting Policies [Line Items]
Depreciation and amortization	71.6	68.6	66.5
Reclassification out of Accumulated Other Comprehensive Income [Member]
Net income (loss)	1.1	0.1	(1.3)
Reclassification out of Accumulated Other Comprehensive Income [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Net income (loss)	3.9	3.7	2.8
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | THE DAYTON POWER AND LIGHT COMPANY [Member]
Accumulated other comprehensive income/(loss)			(0.4)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Accumulated other comprehensive income/(loss)	(17.6)	(25.9)	(18.1)
Other comprehensive loss before reclassifications	6.4	(8.8)
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent		1.0
Other Comprehensive Income (Loss), Net of Tax	8.3	(7.8)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Accumulated other comprehensive income/(loss)	(31.8)	(42.1)	(36.5)
Other comprehensive loss before reclassifications	6.4	(8.7)
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent		3.1
Other Comprehensive Income (Loss), Net of Tax	10.3	(5.6)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Income Tax Expense (Benefit)	0.6	0.3	0.0
Net income (loss)	1.9	1.0	0.2
Other income	2.5	1.3	0.2
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Income Tax Expense (Benefit)	1.1	0.9	0.5
Net income (loss)	3.9	3.1	3.0
Other income	5.0	4.0	3.5
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Accumulated other comprehensive income/(loss)	12.8	13.6	14.5
Other comprehensive loss before reclassifications	0.0	0.0
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent		(0.9)
Other Comprehensive Income (Loss), Net of Tax	(0.8)	(0.9)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Accumulated other comprehensive income/(loss)	0.0	0.0
Other comprehensive loss before reclassifications	0.0	(0.2)
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent		0.6
Other Comprehensive Income (Loss), Net of Tax	0.0	0.4
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Interest expense	1.0	1.1	1.2
Income Tax Expense (Benefit)	(0.2)	(0.2)	(0.1)
Net income (loss)	(0.8)	(0.9)	(1.1)
Income tax expense from discontinued operations	0.0	0.0	0.4
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Interest expense	0.0	0.2	0.2
Income Tax Expense (Benefit)	(0.0)	(0.8)	0.0
Net income (loss)	$ 0.0	$ 0.6	$ (0.2)

XML

Regulatory Matters (Details) - USD ($) $ in Millions		12 Months Ended
	Nov. 30, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Aug. 01, 2018
Regulatory assets earning a return		$ 8.1
Regulatory Assets, Noncurrent		176.8	$ 193.6
Regulatory Assets, Current		24.5	27.5
Regulatory Assets		201.3	221.1
Regulatory Liability, Noncurrent		229.3	218.3
Regulatory Liability, Current		14.6	18.0
Regulatory Liabilities		243.9	236.3
Distribution Investment Rider	$ 120.8
TCJA Yearly Refund to Customers Per DRO		4.0
DRO Vegetation Management Cost Baseline					$ 10.7
DRO Vegetation Management Cost Deferral Cap		4.6
RSC Rider		$ 79.0
Return on Equity SEET Threshold		9.85%
Due from PJM transmission settlement		$ 1.7	1.7			$ 40.6
PJM transmission enhancement repayment amount		33.8
Recovery of Smart Grid Plan Phase 1 capital investments		249.0
Aggregate cap of recoverable Smart Grid Plan investments and expenses		267.6
DP&L shareholder funding under Smart Grid Plan		30.0
Transmission System Refund		4.4
Cash Contribution from Parent Company		150.0	150.0
Equity Contribution from Parent		132.5	98.0	$ 0.0
Proceeds from Capital Contribution from Parent		150.0
TFR True-Up Liability		12.6
TFR True-up Liability, Current		0.4
Vegetation Management and Other [Member]
Regulatory Assets, Noncurrent		$ 18.7
Undercollections to be collected [Member]
Regulatory Assets Type of Recovery		A/B
Regulatory Assets, Current		$ 23.9	26.8
Amounts being recovered through base rates [Member]
Regulatory Assets Type of Recovery		B
Regulatory Assets, Current		$ 0.6	0.7
Pension Costs [Member]
Regulatory Assets Type of Recovery		B
Regulatory Assets, Noncurrent		$ 76.2	94.4
Unrecovered OVEC Charges [Member]
Regulatory Assets Type of Recovery		C
Regulatory Assets, Noncurrent		$ 28.9	28.9
Deferred Regulatory Compliance Costs [Member]
Regulatory Assets Type of Recovery		B
Regulatory Assets, Noncurrent		$ 6.3	6.3
Ccem Smart Grid And Advanced Metering Infrastructure Cost [Member]
Regulatory Assets Type of Recovery		B
Regulatory Assets, Noncurrent		$ 5.2	8.5
Loss on Reacquired Debt [Member]
Regulatory Assets Type of Recovery		B
Regulatory Assets, Noncurrent		$ 4.3	7.1
Storm Costs [Member]
Regulatory Assets Type of Recovery		A
Regulatory Assets, Noncurrent		$ 15.2	11.5
Vegetation Management [Member]
Regulatory Assets Type of Recovery		A/B
Regulatory Assets, Noncurrent			15.7
Decoupling Deferral and Other [Member] [Domain]
Regulatory Assets Type of Recovery		C
Regulatory Assets, Noncurrent		$ 13.8	13.8
Uncollectible and Other [Member] [Domain]
Regulatory Assets Type of Recovery		C
Regulatory Assets, Noncurrent		$ 6.4	7.4
COVID-19 Deferral [Member]
Regulatory Assets, Noncurrent		$ 0.9	1.2
Storm Costs
Regulatory Assets Type of Recovery		B
Regulatory Assets, Noncurrent		$ 1.8	0.0
Subsidiaries [Member]
Regulatory assets earning a return		8.1
Regulatory Assets, Noncurrent		176.8	193.6
Regulatory Assets, Current		24.5	27.5
Regulatory Assets		201.3	221.1
Regulatory Liability, Noncurrent		229.3	218.3
Regulatory Liability, Current		14.6	18.0
Regulatory Liabilities		243.9	236.3
Distribution Investment Rider	$ 120.8
TCJA Yearly Refund to Customers Per DRO		4.0
DRO Vegetation Management Cost Baseline					$ 10.7
DRO Vegetation Management Cost Deferral Cap		4.6
RSC Rider		$ 79.0
Return on Equity SEET Threshold		9.85%
Due from PJM transmission settlement		$ 1.7	1.7			$ 40.6
PJM transmission enhancement repayment amount		33.8
Recovery of Smart Grid Plan Phase 1 capital investments		249.0
Aggregate cap of recoverable Smart Grid Plan investments and expenses		267.6
DP&L shareholder funding under Smart Grid Plan		30.0
Transmission System Refund		4.4
Equity Contribution from Parent		150.0	150.0	$ 0.0
TFR True-Up Liability		12.6
TFR True-up Liability, Current		0.4
Subsidiaries [Member] | Vegetation Management and Other [Member]
Regulatory Assets, Noncurrent		$ 18.7
Subsidiaries [Member] | Undercollections to be collected [Member]
Regulatory Assets Type of Recovery		A/B
Regulatory Assets, Current		$ 23.9	26.8
Subsidiaries [Member] | Amounts being recovered through base rates [Member]
Regulatory Assets Type of Recovery		B
Regulatory Assets, Current		$ 0.6	0.7
Subsidiaries [Member] | Pension Costs [Member]
Regulatory Assets Type of Recovery		B
Regulatory Current Asset, End Date for Recovery		Ongoing
Regulatory Assets, Noncurrent		$ 76.2	94.4
Subsidiaries [Member] | Unrecovered OVEC Charges [Member]
Regulatory Assets Type of Recovery		C
Regulatory Current Asset, End Date for Recovery		Undetermined
Regulatory Assets, Noncurrent		$ 28.9	28.9
Subsidiaries [Member] | Deferred Regulatory Compliance Costs [Member]
Regulatory Assets Type of Recovery		B
Regulatory Current Asset, End Date for Recovery		Undetermined
Regulatory Assets, Noncurrent		$ 6.3	6.3
Subsidiaries [Member] | Ccem Smart Grid And Advanced Metering Infrastructure Cost [Member]
Regulatory Assets Type of Recovery		B
Regulatory Current Asset, End Date for Recovery		2026
Regulatory Assets, Noncurrent		$ 5.2	8.5
Subsidiaries [Member] | Loss on Reacquired Debt [Member]
Regulatory Assets Type of Recovery		B
Regulatory Current Asset, End Date for Recovery		Various
Regulatory Assets, Noncurrent		$ 4.3	7.1
Subsidiaries [Member] | Storm Costs [Member]
Regulatory Assets Type of Recovery		A
Regulatory Current Asset, End Date for Recovery		Undetermined
Regulatory Assets, Noncurrent		$ 15.2	11.5
Subsidiaries [Member] | Vegetation Management [Member]
Regulatory Assets Type of Recovery		A/B
Regulatory Current Asset, End Date for Recovery		Undetermined
Regulatory Assets, Noncurrent			15.7
Subsidiaries [Member] | Decoupling Deferral and Other [Member] [Domain]
Regulatory Assets Type of Recovery		C
Regulatory Current Asset, End Date for Recovery		Undetermined
Regulatory Assets, Noncurrent		$ 13.8	13.8
Subsidiaries [Member] | Uncollectible Receivables [Member]
Regulatory Current Asset, End Date for Recovery		Undetermined
Subsidiaries [Member] | Uncollectible and Other [Member] [Domain]
Regulatory Assets Type of Recovery		C
Regulatory Assets, Noncurrent		$ 6.4	7.4
Subsidiaries [Member] | COVID-19 Deferral [Member]
Regulatory Assets, Noncurrent		$ 0.9	1.2
Subsidiaries [Member] | Storm Costs
Regulatory Assets Type of Recovery		B
Regulatory Current Asset, End Date for Recovery		Undetermined
Postretirement Benefit Costs [Member]
Regulatory Liabilities Type of Recovery		B
Regulatory Liability, Noncurrent		$ 2.8	4.1
Postretirement Benefit Costs [Member] | Subsidiaries [Member]
Regulatory Liabilities Type of Recovery		B
Regulatory Liability, Amortization Through		Ongoing
Regulatory Liability, Noncurrent		$ 2.8	4.1
PJM transmission enhancement settlement repayment amount [Member]
Regulatory Liabilities Type of Recovery		A
Regulatory Liability, Noncurrent		$ 5.1	7.0
PJM transmission enhancement settlement repayment amount [Member] | Subsidiaries [Member]
Regulatory Liabilities Type of Recovery		A
Regulatory Liability, Noncurrent		$ 5.1	7.0
Deferred Income Tax Charge [Member]
Regulatory Liability, Noncurrent		$ 57.5	61.2
Deferred Income Tax Charge [Member] | Subsidiaries [Member]
Regulatory Liability, Amortization Through		Various
Regulatory Liability, Noncurrent		$ 57.5	61.2
TCJA Regulatory Liability [Member] [Domain]
Regulatory Liabilities Type of Recovery		B
Regulatory Liability, Noncurrent		$ 6.5	7.2
TCJA Regulatory Liability [Member] [Domain] | Subsidiaries [Member]
Regulatory Liabilities Type of Recovery		B
Regulatory Liability, Amortization Through		Ongoing
Regulatory Liability, Noncurrent		$ 6.5	7.2
Removal Costs [Member]
Regulatory Liability, Noncurrent		145.2	138.8
Removal Costs [Member] | Subsidiaries [Member]
Regulatory Liability, Noncurrent		$ 145.2	138.8
Overcollection of costs to be refunded [Member]
Regulatory Liabilities Type of Recovery		A/B
Regulatory Liability, Noncurrent		$ 14.2	18.0
Overcollection of costs to be refunded [Member] | Subsidiaries [Member]
Regulatory Liabilities Type of Recovery		A/B
Regulatory Liability, Noncurrent		$ 14.2	18.0
Transmission Formula Rate Credits
Regulatory Liabilities Type of Recovery		A
Regulatory Liability, Noncurrent		$ 0.4	0.0
Transmission Formula Rate Credits | Subsidiaries [Member]
Regulatory Liabilities Type of Recovery		A
Regulatory Liability, Noncurrent		$ 0.4	0.0
Transmission Formula Rate Credits, Noncurrent
Regulatory Liability, Noncurrent		12.2	0.0
Transmission Formula Rate Credits, Noncurrent | Subsidiaries [Member]
Regulatory Liability, Noncurrent		12.2	$ 0.0
Forecast [Member]
DRO Vegetation Management Cost Baseline		15.7
Forecast [Member] | Subsidiaries [Member]
DRO Vegetation Management Cost Baseline		15.7
Long-term [Member]
Due from PJM transmission settlement		5.1
Long-term [Member] | Subsidiaries [Member]
Due from PJM transmission settlement		5.1
Short-term [Member]
Due from PJM transmission settlement		1.7
Short-term [Member] | Subsidiaries [Member]
Due from PJM transmission settlement		$ 1.7

XML

Regulatory Matters (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Regulatory Assets, Noncurrent	$ 176.8	$ 193.6
RSC Rider	79.0
Recovery of Smart Grid Plan Phase 1 capital investments	249.0
COVID-19 Deferral [Member]
Regulatory Assets, Noncurrent	0.9	1.2
THE DAYTON POWER AND LIGHT COMPANY [Member]
Regulatory Assets, Noncurrent	176.8	193.6
RSC Rider	79.0
Recovery of Smart Grid Plan Phase 1 capital investments	249.0
THE DAYTON POWER AND LIGHT COMPANY [Member] | COVID-19 Deferral [Member]
Regulatory Assets, Noncurrent	$ 0.9	$ 1.2

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Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Jointly Owned Utility Plant Interests [Line Items]
Proceeds from Sale of Property, Plant, and Equipment	$ 0.0	$ 5.1	$ 0.0
Estimated costs of removal	145.2	138.8	143.6
Property, Plant and Equipment [Line Items]
Proceeds from Sale of Property, Plant, and Equipment	0.0	5.1	0.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Jointly Owned Utility Plant Interests [Line Items]
Estimated costs of removal	$ 145.2	$ 138.8	$ 143.6

XML

Property, Plant and Equipment (Changes in the Liability for Transmission and Distribution Asset Removal Costs) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Changes in Liability for Transmission and Distribution Asset Removal Costs [Roll Forward]
Balance at January 1	$ 138.8	$ 143.6
Additions	17.0	15.6
Settlements	(10.6)	(20.4)
Balance at December 31	145.2	138.8
THE DAYTON POWER AND LIGHT COMPANY [Member]
Changes in Liability for Transmission and Distribution Asset Removal Costs [Roll Forward]
Balance at January 1	138.8	143.6
Additions	17.0	15.6
Settlements	(10.6)	(20.4)
Balance at December 31	$ 145.2	$ 138.8

XML

Property, Plant and Equipment with Corresponding Depreciation Rates (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Public Utility, Property, Plant and Equipment [Line Items]
Total property, plant and equipment in service	$ 1,990.4	$ 1,839.3
Total property, plant and equipment in service, Composite Rate	3.70%	3.80%	4.00%
Regulated Operation [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Transmission	$ 306.9	$ 273.0
Distribution	1,547.0	1,453.7
General	34.1	17.7
Non-depreciable	71.2	65.1
Total property, plant and equipment in service	$ 1,959.2	$ 1,809.5
Transmission, Composite Rate	3.10%	3.20%
Distribution, Composite Rate	4.00%	4.00%
General, Composite Rate	3.20%	7.60%
Unregulated Operation [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Non-depreciable	$ 4.7	$ 5.0
Total property, plant and equipment in service	31.2	29.8
Other	$ 26.5	$ 24.8
Other, Composite Rate	4.20%	4.50%
THE DAYTON POWER AND LIGHT COMPANY [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Total property, plant and equipment in service	$ 2,571.3	$ 2,437.3
Total property, plant and equipment in service, Composite Rate	2.80%	2.80%	2.90%
THE DAYTON POWER AND LIGHT COMPANY [Member] | Regulated Operation [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Transmission	$ 456.5	$ 425.5
Distribution	1,996.6	1,917.0
General	48.0	29.7
Non-depreciable	$ 70.2	$ 65.1
Transmission, Composite Rate	2.10%	2.10%
Distribution, Composite Rate	3.10%	3.10%
General, Composite Rate	2.30%	3.60%

XML

Property, Plant and Equipment (Changes in the Liability for Generation of AROs) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)
Property, Plant and Equipment [Line Items]
Balance at January 1	$ 4.7
Settlements	(4.7)
Balance at December 31	0.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Property, Plant and Equipment [Line Items]
Balance at January 1	4.7
Settlements	(4.7)
Balance at December 31	$ 0.0

XML

Fair Value Measurements (Fair Value and Cost of Non-Derivative Instruments) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Carrying Value [Member]
Total Assets	$ 6.1	$ 6.4
Carrying Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Assets	6.1	6.4
Carrying Value [Member] | Money Market Funds [Member]
Total Master Trust Assets, Cost	0.4	0.3
Carrying Value [Member] | Money Market Funds [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Cost	0.4	0.3
Carrying Value [Member] | Equity Securities [Member]
Total Master Trust Assets, Cost	1.9	2.1
Carrying Value [Member] | Equity Securities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Cost	1.9	2.1
Carrying Value [Member] | Debt Securities [Member]
Total Master Trust Assets, Cost	3.8	4.0
Carrying Value [Member] | Debt Securities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Cost	3.8	4.0
Carrying Value [Member] | Debt [Member]
Long-term Debt	1,395.5	1,393.6
Carrying Value [Member] | Debt [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Long-term Debt	574.3	574.1
Fair Value [Member]
Total Assets	9.4	8.9
Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Assets	9.4	8.9
Fair Value [Member] | Money Market Funds [Member]
Total Master Trust Assets, Fair Value	0.4	0.3
Fair Value [Member] | Money Market Funds [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.4	0.3
Fair Value [Member] | Equity Securities [Member]
Total Master Trust Assets, Fair Value	5.1	4.5
Fair Value [Member] | Equity Securities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	5.1	4.5
Fair Value [Member] | Debt Securities [Member]
Total Master Trust Assets, Fair Value	3.9	4.1
Fair Value [Member] | Debt Securities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	3.9	4.1
Fair Value [Member] | Debt [Member]
Debt, Fair Value	1,519.7	1,571.6
Fair Value [Member] | Debt [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt, Fair Value	$ 642.6	$ 656.0

XML

Fair Value Measurements (Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	$ 1,700.8	$ 1,565.3
THE DAYTON POWER AND LIGHT COMPANY [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Value	$ 1,679.2	$ 1,544.0

XML

Fair Value Measurements (Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Inputs, Level 1 [Member]
Total Assets	$ 0.4	$ 0.3
Total Liabilities	0.0	0.0
Fair Value, Inputs, Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Assets	0.4	0.3
Debt Instrument, Fair Value Disclosure		0.0
Total Liabilities	0.0	0.0
Fair Value, Inputs, Level 2 [Member]
Total Assets	9.0	8.6
Total Liabilities	1,502.5	1,554.2
Fair Value, Inputs, Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Assets	9.0	8.6
Debt Instrument, Fair Value Disclosure		638.6
Total Liabilities	625.4	638.6
Fair Value, Inputs, Level 3 [Member]
Total Assets	0.0	0.0
Total Liabilities	17.2	17.4
Fair Value, Inputs, Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Assets		0.0
Debt Instrument, Fair Value Disclosure		17.4
Total Liabilities	17.2	17.4
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Total Master Trust Assets, Fair Value	5.1	4.5
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	5.1	4.5
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Total Master Trust Assets, Fair Value	3.9	4.1
Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	3.9	4.1
Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Total Master Trust Assets, Fair Value	0.4	0.3
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.4	0.3
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Total Master Trust Assets, Fair Value	0.0	0.0
Debt [Member] | Fair Value, Inputs, Level 1 [Member]
Debt Instrument, Fair Value Disclosure	0.0	0.0
Debt [Member] | Fair Value, Inputs, Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument, Fair Value Disclosure	0.0
Debt [Member] | Fair Value, Inputs, Level 2 [Member]
Debt Instrument, Fair Value Disclosure	1,502.5	1,554.2
Debt [Member] | Fair Value, Inputs, Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument, Fair Value Disclosure	625.4
Debt [Member] | Fair Value, Inputs, Level 3 [Member]
Debt Instrument, Fair Value Disclosure	17.2	17.4
Debt [Member] | Fair Value, Inputs, Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument, Fair Value Disclosure	17.2
Fair Value [Member]
Total Assets	9.4	8.9
Total Liabilities	1,519.7	1,571.6
Fair Value [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Assets	9.4	8.9
Total Liabilities	642.6	656.0
Fair Value [Member] | Equity Securities [Member]
Total Master Trust Assets, Fair Value	5.1	4.5
Fair Value [Member] | Equity Securities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	5.1	4.5
Fair Value [Member] | Debt Securities [Member]
Total Master Trust Assets, Fair Value	3.9	4.1
Fair Value [Member] | Debt Securities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	3.9	4.1
Fair Value [Member] | Money Market Funds [Member]
Total Master Trust Assets, Fair Value	0.4	0.3
Fair Value [Member] | Money Market Funds [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Total Master Trust Assets, Fair Value	0.4	0.3
Fair Value [Member] | Debt [Member]
Debt Instrument, Fair Value Disclosure	1,519.7	1,571.6
Fair Value [Member] | Debt [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument, Fair Value Disclosure	$ 642.6	$ 656.0

XML

Derivative Instruments and Hedging Activities (Gains or Losses Recognized in AOCI for the Cash Flow Hedges) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Forward Contract Power [Member]
Beginning accumulated derivative gain / (loss) in AOCI		$ 0.0	$ 0.4
Net gains / (losses) associated with current period hedging transactions			0.0
Ending accumulated derivative gain / (loss) in AOCI			0.0
Interest Rate Contract [Member]
Beginning accumulated derivative gain / (loss) in AOCI	$ 13.6	14.5	16.6
Net gains / (losses) associated with current period hedging transactions	0.0	0.0	(1.0)
Ending accumulated derivative gain / (loss) in AOCI	12.8	13.6	14.5
Portion expected to be reclassified to earnings in the next twelve months	(0.8)
THE DAYTON POWER AND LIGHT COMPANY [Member] | Interest Rate Contract [Member]
Beginning accumulated derivative gain / (loss) in AOCI	0.0	(0.4)	0.6
Net gains / (losses) associated with current period hedging transactions		(0.2)	(0.8)
Ending accumulated derivative gain / (loss) in AOCI		0.0	(0.4)
Interest Expense [Member] | Forward Contract Power [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net			0.0
Interest Expense [Member] | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	(0.8)	(0.9)	(1.1)
Interest Expense [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net		0.6	(0.2)
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Forward Contract Power [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net			(0.4)
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ 0.0	$ 0.0	$ 0.0

XML

Derivative Instruments and Hedging Activities (Narrative) (Details) $ in Millions	Dec. 31, 2020 USD ($) Number_of_interest_rate_swaps
THE DAYTON POWER AND LIGHT COMPANY [Member]
Number of Interest Rate Swaps | Number_of_interest_rate_swaps	2
Tax-exempt First Mortgage Bonds - rates from: 2.49% - 2.93% (a) and 1.29% - 1.42% (b)
Long-term Debt, Gross	$ 140.0
Tax-exempt First Mortgage Bonds - rates from: 2.49% - 2.93% (a) and 1.29% - 1.42% (b) | 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
Interest Rate Swap [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Designated as Hedging Instrument [Member]
Derivative, Notional Amount, Purchase (Sales), Net	$ 140.0

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Derivative Instruments and Hedging Activities (Outstanding Derivative Instruments) (Details) - Designated as Hedging Instrument [Member] - Interest Rate Swap [Member] $ in Millions	Dec. 31, 2020 USD ($)
Derivative, Notional Amount, Purchase (Sales), Net	$ 140.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Derivative, Notional Amount, Purchase (Sales), Net	$ 140.0

XML

Debt (Long-term Debt) (Details) $ in Millions				12 Months Ended
	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Jun. 01, 2020	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Long-Term Debt, Maturity, Year One				$ 0.2
Unamortized Deferred Financing Costs				(8.6)	$ (10.2)
Line of Credit Facility, quarterly borrowing limit reduction				5.0
Debt Instrument, Unamortized Discount (Premium), Net				(0.8)	(0.9)
Total long-term debt at subsidiary				574.3	574.1
Less: current portion				(0.2)	(0.2)
Long-term debt, net of current portion				1,395.3	1,393.4
Long-Term Debt, Maturity, Year Two				0.2
Long-Term Debt, Maturity, Year Three				0.2
Long-Term Debt, Maturity, Year Four				415.2
Long-Term Debt, Maturity, Year Five				0.2
Long-Term Debt, Maturity, after Year Five				996.8
Total Maturities Before Unamortized Adjustments				1,412.8
Unamortized adjustments to market value from purchase accounting				(3.3)
Unamortized Deferred Financing Costs, Consolidated				(14.0)
Long Term Debt Maturities Repayments Of Principal, Total				1,395.5
Long-term Line of Credit				$ 65.0	80.0
Debt Covenant, Interest Coverage Ratio, Minimum			2.25	1.70
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum				$ 125.0
Debt instrument, Debt covenant, Total Debt to EBITDA, Current Borrowing Limit				105.0
Debt Instrument, Debt Covenant, Total Debt to EBITDA, Maximum Borrowing Limit				100.0
Forecast [Member]
Debt Instrument [Line Items]
Debt Covenant, Interest Coverage Ratio, Minimum	2.00	1.75
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum	$ 150.0	$ 130.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-Term Debt, Maturity, Year One				0.2
Unamortized Deferred Financing Costs					(5.7)
Unamortized Deferred Financing Costs (Subsidiary)				(5.4)	(5.7)
Debt Instrument, Unamortized Discount				(2.5)	(2.6)
Debt Instrument, Unamortized Discount (Premium), Net				(2.5)	(2.6)
Less: current portion				(0.2)	(0.2)
Long-term debt, net of current portion				574.1	573.9
Long-Term Debt, Maturity, Year Two				0.2
Long-Term Debt, Maturity, Year Three				0.2
Long-Term Debt, Maturity, Year Four				0.2
Long-Term Debt, Maturity, Year Five				0.2
Long-Term Debt, Maturity, after Year Five				581.2
Total Maturities Before Unamortized Adjustments				582.2
Unamortized Deferred Financing Costs, Consolidated				(5.4)
Long Term Debt Maturities Repayments Of Principal, Total				574.3
Long-term Line of Credit				0.0	20.0
3.95% Senior Notes due 2049 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross				$ 425.0	425.0
Debt instrument interest percentage				3.95%
Ten Year Senior Unsecured Bonds At 435 Maturing At April 15 2029 [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage				4.35%
Tax-exempt First Mortgage Bonds - rates from: 2.49% - 2.93% (a) and 1.29% - 1.42% (b)
Debt Instrument [Line Items]
Long-term Debt, Gross					140.0
Tax-exempt First Mortgage Bonds - rates from: 2.49% - 2.93% (a) and 1.29% - 1.42% (b) | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross					140.0
U.S. Government note maturing in 2061 - 4.20% [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross				$ 17.2	17.4
U.S. Government note maturing in 2061 - 4.20% [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross				$ 17.2	17.4
Debt instrument interest percentage				4.20%
Senior Unsecured Bonds at 7.25% maturing in 2021 [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage				7.25%
4.35% Senior Notes due 2029 [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross				$ 400.0	400.0
Note to DPL Capital Trust II Maturing in 2031 - 8.125% [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross				$ 15.6	15.6
Debt instrument interest percentage				8.125%
Debt [Member]
Debt Instrument [Line Items]
Long-term Debt and Lease Obligation, Including Current Maturities				$ 1,395.5	1,393.6
Debt [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt and Lease Obligation, Including Current Maturities				$ 574.3	$ 574.1

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Debt (Long-term Debt Maturities) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Aug. 03, 2020 USD ($)
Debt Instrument [Line Items]
Long-term Line of Credit	$ 65.0	$ 80.0
Line of Credit Facility, Maximum Borrowing Capacity	110.0
Proceeds from Issuance of Long-term Debt	0.0	555.0	$ 821.7
Unamortized Deferred Financing Costs, Consolidated	(14.0)
Current portion - long-term debt	0.2
Long-Term Debt, Maturity, Year Two	0.2
2018	0.2
2019	415.2
2020	0.2
Thereafter	996.8
Total Maturities	1,412.8
Unamortized adjustments to market value from purchase accounting	(3.3)
Total long-term debt	1,395.5
Unamortized Deferred Financing Costs	(8.6)	(10.2)
Current portion - long-term debt	0.2	0.2
Long-term Debt, Excluding Current Maturities	1,395.3	1,393.4
THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Line of Credit	0.0	20.0
Proceeds from Issuance of Long-term Debt	0.0	140.0	$ 422.3
Unamortized Deferred Financing Costs, Consolidated	(5.4)
Current portion - long-term debt	0.2
Long-Term Debt, Maturity, Year Two	0.2
2018	0.2
2019	0.2
2020	0.2
Thereafter	581.2
Total Maturities	582.2
Debt Instrument, Unamortized Discount	(2.5)	(2.6)
Total long-term debt	574.3
Unamortized Deferred Financing Costs		(5.7)
Current portion - long-term debt	0.2	0.2
Long-term Debt, Excluding Current Maturities	574.1	573.9
Unamortized Deferred Financing Costs (Subsidiary)	$ (5.4)	(5.7)
3.95% Senior Notes due 2049 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.95%
Long-term Debt, Gross	$ 425.0	425.0
Ten Year Senior Unsecured Bonds At 435 Maturing At April 15 2029 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.35%
Senior Unsecured Bonds at 7.25% maturing in 2021 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	7.25%
One Point One Three To One Point One Seven Bonds Maturing In August Two Thousand Twenty [Member]
Debt Instrument [Line Items]
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]
Debt Instrument [Line Items]
Long-term Debt, Gross		140.0
Four Point Two Zero Percentage Of U S Government Note Maturing In February Two Thousand Sixty One [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 17.2	17.4
Four Point Two Zero Percentage Of U S Government Note Maturing In February Two Thousand Sixty One [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.20%
Long-term Debt, Gross	$ 17.2	17.4
Variable Rate Notes Backed by Term Loan and First Mortgage Bonds [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 140.0	140.0		$ 140.0
Revolving Credit Facility [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Debt Covenant, Total Debt to Total Capitalization Ratio, Maximum	0.67
Debt [Member]
Debt Instrument [Line Items]
Long-term Debt and Lease Obligation, Including Current Maturities	$ 1,395.5	1,393.6
Debt [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt and Lease Obligation, Including Current Maturities	$ 574.3	$ 574.1

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Debt (Narrative) (Details) $ in Millions						12 Months Ended
	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Jul. 31, 2020 USD ($)	Jun. 19, 2020 USD ($)	Jun. 01, 2020 USD ($)	Dec. 31, 2021 USD ($) fiscal_quarter debt_covenant	Dec. 31, 2020 USD ($) Number_of_interest_rate_swaps	Dec. 31, 2019 USD ($)	Aug. 03, 2020 USD ($)
Debt Instrument [Line Items]
Current portion - long-term debt						$ 0.2
Unamortized adjustments to market value from purchase accounting						(3.3)
Issuance of long-term debt						0.0	$ 555.0	$ 821.7
Unamortized Deferred Financing Costs						(8.6)	(10.2)
Current portion - long-term debt						$ 0.2	0.2
Debt Covenant, Leverage Ratio, Maximum						0.67
Debt Covenant, Interest Coverage Ratio, Minimum					2.25	1.70
Debt Instrument, Unamortized Discount (Premium), Net						$ 0.8	0.9
Total Long-term Debt At Subsidiary With Purchase Accounting Adjustments						574.3	574.1
Long-term Debt, Excluding Current Maturities						1,395.3	1,393.4
Long-Term Debt, Maturity, Year Two						0.2
Long-term Line of Credit						65.0	80.0
Line of Credit Facility, Current Borrowing Capacity					$ 125.0
Line of Credit Facility, Maximum Borrowing Capacity						110.0
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum						$ 125.0
Debt Instrument, Debt Covenant, Total Debt to EBITDA Ratio						7.00
Phase 2 [Member]
Debt Instrument [Line Items]
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum	$ 150.0
Phase 1
Debt Instrument [Line Items]
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum		$ 130.0
Forecast [Member]
Debt Instrument [Line Items]
Debt Covenant, Interest Coverage Ratio, Minimum	2.00	1.75
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum	$ 150.0	$ 130.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Current portion - long-term debt						$ 0.2
Issuance of long-term debt						0.0	140.0	$ 422.3
Unamortized Deferred Financing Costs							(5.7)
Current portion - long-term debt						0.2	0.2
Unamortized Deferred Financing Costs (Subsidiary)						(5.4)	(5.7)
Debt Instrument, Unamortized Discount (Premium), Net						2.5	2.6
Long-term Debt, Excluding Current Maturities						574.1	573.9
Long-Term Debt, Maturity, Year Two						0.2
Long-term Line of Credit						0.0	$ 20.0
Number of Interest Rate Swaps | Number_of_interest_rate_swaps							2
3.95% Senior Notes due 2049 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross						$ 425.0	$ 425.0
Debt instrument interest percentage						3.95%
U.S. Government note maturing in 2061 - 4.20% [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross						$ 17.2	17.4
U.S. Government note maturing in 2061 - 4.20% [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross						$ 17.2	17.4
Debt instrument interest percentage						4.20%
DPL Revolving Credit Agreement and Term Loan Maturing July 2020 [Member]
Debt Instrument [Line Items]
Number of financial covenants | debt_covenant						2
Number of prior quarters included in debt to EBITDA ratio | fiscal_quarter						4
Debt Covenant, Interest Coverage Ratio, Minimum						2.50
Senior Unsecured Bonds at 7.25% maturing in 2021 [Member]
Debt Instrument [Line Items]
Debt instrument interest percentage						7.25%
Note to DPL Capital Trust II Maturing in 2031 - 8.125% [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross						$ 15.6	15.6
Debt instrument interest percentage						8.125%
Variable Rate Notes Backed by Term Loan and First Mortgage Bonds [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross						$ 140.0	140.0		$ 140.0
One Point One Three To One Point One Seven Bonds Maturing In August Two Thousand Twenty [Member]
Debt Instrument [Line Items]
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]
Debt Instrument [Line Items]
Long-term Debt, Gross							140.0
3.20% First Mortgage Bonds due 2040 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Issuance of long-term debt			$ 140.0
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum (Deprecated 2016-01-31)						3.20%
Revolving Credit Facility [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Debt Covenant, Total Debt to Total Capitalization Ratio, Maximum						0.67
4.125% Senior Notes due 2025 [Member]
Debt Instrument [Line Items]
Issuance of long-term debt				$ 415.0
Debt instrument interest percentage						4.125%
3.2% Senior Notes due 2049
Debt Instrument [Line Items]
Long-term Debt, Gross						$ 140.0	140.0
Debt instrument interest percentage						3.20%
3.2% Senior Notes due 2049 | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross						$ 140.0	140.0
Debt instrument interest percentage						3.20%
Ten Year Senior Unsecured Notes At725 Maturing At October152025
Debt Instrument [Line Items]
Debt instrument interest percentage						4.125%
Five Year Senior Unsecured Notes At 4125 Maturing on July12025
Debt Instrument [Line Items]
Long-term Debt, Gross						$ 415.0	415.0
Make Whole Premium							30.8
Extinguishment of Debt, Amount						380.0
Debt [Member]
Debt Instrument [Line Items]
Long-term Debt and Lease Obligation, Including Current Maturities						1,395.5	1,393.6
Debt [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Debt Instrument [Line Items]
Long-term Debt and Lease Obligation, Including Current Maturities						$ 574.3	$ 574.1

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Income Taxes (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2021	Jan. 01, 2020	Jan. 01, 2019
Income Taxes [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards	$ 37.1	$ 39.0
Deferred tax assets related to state and local tax net operating loss carryforwards, net of related valuation allowances	37.1	39.0
Unrecognized Tax Benefits	0.4	1.4	$ 3.5	$ 1.4	$ 3.5	$ 3.5
Decrease in Unrecognized Tax Benefits Due To Uncertainty In Timing of Deductibility	(1.0)	(2.1)	0.0
Cash Contribution from Parent Company	150.0	150.0
Payment against tax receivable balance from Parent	17.5	52.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Income Taxes [Line Items]
Unrecognized Tax Benefits	0.4	1.4	4.8	$ 1.4	$ 4.8	$ 4.8
Decrease in Unrecognized Tax Benefits Due To Uncertainty In Timing of Deductibility	(1.0)	$ (3.4)	$ 0.0
Forecast [Member]
Income Taxes [Line Items]
Unrecognized tax benefits anticipated to result in a decrease of unrecognized tax benefits with 12 months of the balance sheet date, minimum	$ 0.0

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Income Taxes (Effective and Statutory Rate Reconciliation) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Entity Information [Line Items]
Non-cash capital contribution		$ 98.0
Statutory Federal tax rate	21.00%	21.00%	21.00%
State taxes, net of Federal tax benefit	2.80%	(13.10%)	1.40%
Depreciation of flow-through differences	3.30%	(23.60%)	(0.10%)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Depreciation and Amortization, Percent	(29.00%)	94.80%	(28.20%)
Effective Income Tax Rate Reconciliation, Tax Credit, Percent	(0.60%)	4.10%	(0.30%)
Other, net	(0.80%)	1.20%	(0.10%)
Effective tax rate	(3.30%)	84.40%	(6.30%)
THE DAYTON POWER AND LIGHT COMPANY [Member]
Entity Information [Line Items]
Statutory Federal tax rate	21.00%	21.00%	21.00%
State taxes, net of Federal tax benefit	1.10%	1.50%	1.30%
Depreciation of flow-through differences	1.30%	2.60%	(0.10%)
Effective Income Tax Rate Reconciliation, Tax Credit, Investment, Percent	(0.20%)	(0.50%)	(0.20%)
Effective Income Tax Rate Reconciliation, Depreciation of flow-through years	(11.70%)	(10.60%)	(22.60%)
Effective Income Tax Rate Reconciliation, Change in Tax Reserves, Percent	(0.10%)	(6.10%)	0.00%
Other, net	(0.60%)	4.10%	0.10%
Effective tax rate	10.80%	12.00%	(0.50%)

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Income Taxes (Tax or Benefit credited to AOCI) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Taxes [Line Items]
Tax expense/ (benefit)	$ 2.2	$ (2.6)	$ (0.5)
THE DAYTON POWER AND LIGHT COMPANY [Member]
Income Taxes [Line Items]
Tax expense/ (benefit)	$ 2.9	$ (2.3)	$ (0.4)

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Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Income Taxes [Line Items]
Depreciation / property basis	$ (166.4)	$ (160.5)
Income taxes recoverable	13.6	14.4
Deferred Tax Liabilities, Regulatory Assets and Liabilities	(20.6)	(21.0)
Investment tax credit	0.6	0.6
Compensation and employee benefits	(3.4)	(1.7)
Intangibles	(0.4)	(0.4)
Long-term debt	(1.5)	(1.3)
Other	(9.8)	(7.3)
Net non-current liabilities	(187.9)	(177.2)
THE DAYTON POWER AND LIGHT COMPANY [Member]
Income Taxes [Line Items]
Depreciation / property basis	(167.7)	(161.7)
Income taxes recoverable	13.6	14.4
Deferred Tax Liabilities, Regulatory Assets and Liabilities	(21.4)	(21.7)
Investment tax credit	0.5	0.5
Compensation and employee benefits	3.4	0.1
Other	(5.0)	(3.5)
Net non-current liabilities	$ (183.4)	$ (172.1)

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Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ 1.4	$ 3.5
Balance at end of year	0.4	1.4	$ 3.5
Decrease in Unrecognized Tax Benefits Due To Uncertainty In Timing of Deductibility	(1.0)	(2.1)	0.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	1.4	4.8
Balance at end of year	0.4	1.4	4.8
Decrease in Unrecognized Tax Benefits Due To Uncertainty In Timing of Deductibility	(1.0)	$ (3.4)	$ 0.0
Forecast [Member]
Income Tax Contingency [Line Items]
Unrecognized tax benefits anticipated to result in a decrease of unrecognized tax benefits with 12 months of the balance sheet date, minimum	$ 0.0

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Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Taxes [Line Items]
Federal - Current	$ (5.5)	$ (45.1)	$ (22.0)
State and Local - Current	0.0	(0.1)	0.6
Total Current	(5.5)	(45.2)	(21.4)
Federal - Deferred	4.4	38.7	14.1
State and Local - Deferred	0.4	1.1	1.1
Total Deferred	4.8	39.8	15.2
Income Tax Expense (Benefit), Continuing Operations, Discontinued Operations	(0.7)	(5.4)	(6.2)
THE DAYTON POWER AND LIGHT COMPANY [Member]
Income Taxes [Line Items]
Federal - Current	1.1	3.5	8.6
State and Local - Current	0.1	0.1	0.6
Total Current	1.2	3.6	9.2
Federal - Deferred	4.1	2.4	(10.9)
State and Local - Deferred	0.4	1.0	1.1
Total Deferred	4.5	3.4	(9.8)
Income Tax Expense (Benefit), Continuing Operations, Discontinued Operations	$ 5.7	$ 7.0	$ (0.6)

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Benefit Plans (Weighted Average Assumptions Used to Determine Benefit Obligations) (Details) - Pension [Member]	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Discount rate for obligations	2.83%	2.44%	3.33%
Rate of compensation increases	3.21%	3.21%	3.94%
THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate for obligations	2.83%	2.44%	3.33%
Rate of compensation increases	3.21%	3.21%	3.94%

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Benefit Plans (Pension and Postretirement Benefit Plans' Obligations and Assets) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Noncurrent liabilities	$ (62.3)	$ (93.9)
THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Defined Benefit Plan, Funded (Unfunded) Status of Plan	(8.9)
Noncurrent liabilities	(62.3)	(93.9)
Postretirement [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Defined Benefit Plan, Funded (Unfunded) Status of Plan		9.0
Postretirement [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Defined Benefit Plan, Funded (Unfunded) Status of Plan	8.9	9.0
Pension [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at January 1	449.5	421.5
Service cost	4.5	3.7	$ 3.7
Interest cost	8.2	11.8	14.9
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	(12.7)	52.7
Benefit obligation at December 31	416.2	449.5	421.5
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at January 1	365.1	352.0
Actual return / (loss) on plan assets	24.0	45.6
Contributions to plan assets	10.0	7.7
Fair value of plan assets at December 31	363.5	365.1	352.0
Defined Benefit Plan, Funded (Unfunded) Status of Plan	(52.7)	(84.4)
Current liabilities	(0.2)	(0.2)
Noncurrent liabilities	(52.5)	(84.2)
Net asset / (liability) at December 31	(52.7)	(84.4)
Prior service cost	8.3	6.9
Net actuarial loss	93.3	124.0
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax	101.6	130.9
Defined Benefit Plan, Plan Assets, Benefits Paid	35.6	40.2
Defined Benefit Plan, Benefit Obligation, Benefits Paid	35.6	40.2
Pension [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at January 1	449.5	421.5
Service cost	4.5	3.7	3.7
Interest cost	8.2	11.8	14.9
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	(12.7)	52.7
Benefit obligation at December 31	416.2	449.5	421.5
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at January 1	365.1	352.0
Actual return / (loss) on plan assets	24.0	45.6
Contributions to plan assets	10.0	7.7
Fair value of plan assets at December 31	363.5	365.1	$ 352.0
Defined Benefit Plan, Funded (Unfunded) Status of Plan	(52.7)	(84.4)
Current liabilities	(0.2)	(0.2)
Noncurrent liabilities	(52.5)	(84.2)
Net asset / (liability) at December 31	(52.7)	(84.4)
Prior service cost	8.5	7.3
Net actuarial loss	119.5	152.6
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax	128.0	159.9
Defined Benefit Plan, Plan Assets, Benefits Paid	35.6	40.2
Defined Benefit Plan, Benefit Obligation, Benefits Paid	35.6	40.2
Regulatory Asset [Member] | Pension [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax	74.1	92.7
Regulatory Asset [Member] | Pension [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax	74.0	92.7
Accumulated Other Comprehensive Income/(Loss) [Member] | Pension [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax	27.5	38.2
Accumulated Other Comprehensive Income/(Loss) [Member] | Pension [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax	$ 54.0	$ 67.2

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Benefit Plans (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Amount Billed to Service Company	$ 1,700,000	$ 1,400,000	$ 1,400,000
Defined contribution plan, maximum annual contributions per employee (percent)	85.00%
Employer contributions to defined contribution plan	$ 3,300,000	3,200,000	3,100,000
Accumulated benefit obligation for our defined benefit pension plans	400,700,000	436,400,000
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax	6,400,000	(8,800,000)	(3,400,000)
THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Amount Billed to Service Company	$ 1,700,000	1,400,000	1,400,000
Defined contribution plan, maximum annual contributions per employee (percent)	85.00%
Employer contributions to defined contribution plan	$ 3,300,000	3,200,000	3,100,000
Accumulated benefit obligation for our defined benefit pension plans	400,700,000	436,400,000
Defined Benefit Plan, Funded (Unfunded) Status of Plan	(8,900,000)
Defined Benefit Plan, Amount Billed to AES Ohio Generation	1,900,000	1,400,000	1,500,000
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax	$ 6,400,000	(8,700,000)	$ (3,600,000)
Defined Benefit Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan employee vested percentage	100.00%
Defined benefit plan, percent forfeited if terminated, other than by death or disability, prior to full vesting (percent)	100.00%
Defined Benefit Plan [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan employee vested percentage	100.00%
Defined benefit plan, percent forfeited if terminated, other than by death or disability, prior to full vesting (percent)	100.00%
Management Employees [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan employee vested percentage	100.00%
Defined benefit plan, percent forfeited if terminated, other than by death or disability, prior to full vesting (percent)	100.00%
Cash Balance Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan employee vested percentage	100.00%
Defined benefit plan, percent forfeited if terminated, other than by death or disability, prior to full vesting (percent)	100.00%
Pension [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	$ (12,700,000)	$ 52,700,000
Payment for Pension Benefits	$ 9,800,000
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	4.55%	5.60%	6.25%
Discount rate for obligations	2.83%	2.44%	3.33%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	2.44%	3.33%	4.35%
Defined Benefit Plan, Plan Assets, Amount	$ 363,500,000	$ 365,100,000	$ 352,000,000.0
Service cost	4,500,000	3,700,000	3,700,000
Interest cost	8,200,000	11,800,000	14,900,000
Defined Benefit Plan, Funded (Unfunded) Status of Plan	$ (52,700,000)	(84,400,000)
Defined benefit plan, amortization period for underfunding excess	7 years
Pension [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	$ (12,700,000)	52,700,000
Payment for Pension Benefits	$ 9,800,000	$ 7,500,000	$ 7,500,000
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	4.55%	5.60%	6.25%
Discount rate for obligations	2.83%	2.44%	3.33%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	2.44%	3.33%	4.35%
Defined Benefit Plan, Plan Assets, Amount	$ 363,500,000	$ 365,100,000	$ 352,000,000.0
Service cost	4,500,000	3,700,000	3,700,000
Interest cost	8,200,000	11,800,000	$ 14,900,000
Defined Benefit Plan, Funded (Unfunded) Status of Plan	$ (52,700,000)	(84,400,000)
Defined benefit plan, amortization period for underfunding excess	7 years
Postretirement [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Funded (Unfunded) Status of Plan		9,000,000
Postretirement [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Funded (Unfunded) Status of Plan	$ 8,900,000	$ 9,000,000
SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Target Allocation Percentage	114.00%
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	41.00%
Equity Securities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	41.00%
Forecast [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	4.60%
Increase in pension cost due to change in return on assets	$ 3,400,000
Decrease in pension cost due to change in return on assets	(3,400,000)
Decrease in pension cost due to change in discount rate	(500,000)
Increase in pension cost due to change in discount rate	$ 500,000
Forecast [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	4.60%
Increase in pension cost due to change in return on assets	$ 3,400,000
Decrease in pension cost due to change in return on assets	(3,400,000)
Decrease in pension cost due to change in discount rate	(500,000)
Increase in pension cost due to change in discount rate	500,000
Forecast [Member] | Pension [Member]
Defined Benefit Plan Disclosure [Line Items]
Payment for Pension Benefits	7,500,000
Service cost	5,800,000
Defined Benefit Plan, Plan Assets, Administration Expense	1,700,000
Forecast [Member] | Pension [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Payment for Pension Benefits	7,500,000
Service cost	5,800,000
Defined Benefit Plan, Plan Assets, Administration Expense	1,700,000
Forecast [Member] | SERP [Member]
Defined Benefit Plan Disclosure [Line Items]
Estimated contribution to the defined benefit plans next year	$ 200,000
Forecast [Member] | SERP [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Target Allocation Percentage	114.00%
Estimated contribution to the defined benefit plans next year	$ 200,000
Increase in Expected Rate of Return [Member]
Defined Benefit Plan Disclosure [Line Items]
Change in Expected rate of return on plan assets	1.00%
Increase in Expected Rate of Return [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Change in Expected rate of return on plan assets	1.00%
Decrease in Expected Rate of Return [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Change in Expected rate of return on plan assets	1.00%
Expected Increase in Discount Rate [Member]
Defined Benefit Plan Disclosure [Line Items]
Change in discount rate for plan assets	25.00%
Expected Increase in Discount Rate [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Change in discount rate for plan assets	25.00%
Expected Decrease in Discount Rate [Member]
Defined Benefit Plan Disclosure [Line Items]
Change in discount rate for plan assets	25.00%
Expected Decrease in Discount Rate [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Change in discount rate for plan assets	25.00%
Non-union Participant [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, period after which participant is fully vested in employer contributions	2 years
Non-union Participant [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, period after which participant is fully vested in employer contributions	2 years
Non-union Participant [Member] | First 1% of Eligible Compensation [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, employer matching contribution (percent)	100.00%
Defined contribution plan, employer matching contribution, percent of employees' gross pay (percent)	1.00%
Non-union Participant [Member] | First 1% of Eligible Compensation [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, employer matching contribution (percent)	100.00%
Defined contribution plan, employer matching contribution, percent of employees' gross pay (percent)	1.00%
Non-union Participant [Member] | Next 5% of Eligible Compensation [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, employer matching contribution (percent)	50.00%
Defined contribution plan, employer matching contribution, percent of employees' gross pay (percent)	5.00%
Non-union Participant [Member] | Next 5% of Eligible Compensation [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, employer matching contribution (percent)	50.00%
Defined contribution plan, employer matching contribution, percent of employees' gross pay (percent)	5.00%
Union Participant [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, employer matching contribution, percent of employees' gross pay (percent)	150.00%
Defined contribution plan, period after which participant is fully vested in employer contributions	3 years
Defined contribution plan, employer matching contribution cap	$ 2,650
Union Participant [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, employer matching contribution, percent of employees' gross pay (percent)	150.00%
Defined contribution plan, period after which participant is fully vested in employer contributions	3 years
Defined contribution plan, employer matching contribution cap	$ 2,650
Minimum [Member] | Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	40.00%
Minimum [Member] | Equity Securities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	40.00%
Minimum [Member] | Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	50.00%
Minimum [Member] | Fixed Income Securities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	50.00%
Maximum [Member] | Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	50.00%
Maximum [Member] | Equity Securities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	50.00%
Maximum [Member] | Fixed Income Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	60.00%
Maximum [Member] | Fixed Income Securities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage	60.00%

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Benefit Plans (Net Periodic Benefit Cost (Income)) (Details) - Pension [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Service cost	$ 4.5	$ 3.7	$ 3.7
Interest cost	8.2	11.8	14.9
Expected return on assets	(15.0)	(18.6)	(20.1)
Actuarial gain / (loss)	9.0	1.0	4.2
Prior service cost	0.9	6.1	1.3
Net Periodic benefit cost / (income) before adjustments	$ 7.6	$ 4.0	$ 4.0
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	2.44%	3.33%	4.35%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	4.55%	5.60%	6.25%
THE DAYTON POWER AND LIGHT COMPANY [Member]
Service cost	$ 4.5	$ 3.7	$ 3.7
Interest cost	8.2	11.8	14.9
Expected return on assets	(15.0)	(18.6)	(20.1)
Actuarial gain / (loss)	11.4	8.7	7.0
Prior service cost	1.1	1.3	1.8
Net Periodic benefit cost / (income) before adjustments	$ 10.2	$ 6.9	$ 7.3
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	2.44%	3.33%	4.35%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	4.55%	5.60%	6.25%

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Benefit Plans (Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Income)) (Details) - Pension [Member]	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	2.44%	3.33%	4.35%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	4.55%	5.60%	6.25%
THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	2.44%	3.33%	4.35%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets	4.55%	5.60%	6.25%

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Benefit Plans (Estimated Future Benefit Payments and Medicare Part D Reimbursements) (Details) - Pension [Member] $ in Millions	Dec. 31, 2021 USD ($)
2016	$ 24.5
2017	24.3
2018	24.1
2019	23.7
2020	23.6
2021 - 2025	114.4
THE DAYTON POWER AND LIGHT COMPANY [Member]
2016	24.5
2017	24.3
2018	24.1
2019	23.7
2020	23.6
2021 - 2025	$ 114.4

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Benefit Plans (Fair Value Measurements for Pension Plan Assets) (Details) - Pension [Member] - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Total Pension Plan Assets	$ 363.5	$ 365.1	$ 352.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Pension Plan Assets	363.5	365.1	$ 352.0
Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Pension Plan Assets	1.9	1.9
Fair Value, Inputs, Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Pension Plan Assets	1.9	1.9
Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Pension Plan Assets	361.6	363.2
Fair Value, Inputs, Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Pension Plan Assets	361.6	363.2
Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Pension Plan Assets	0.0	0.0
Fair Value, Inputs, Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Pension Plan Assets	0.0	0.0
U.S. Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	151.8	153.8
U.S. Equities [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	151.8	153.8
U.S. Equities [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
U.S. Equities [Member] | Fair Value, Inputs, Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
U.S. Equities [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	151.8	153.8
U.S. Equities [Member] | Fair Value, Inputs, Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	151.8	153.8
U.S. Equities [Member] | Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
U.S. Equities [Member] | Fair Value, Inputs, Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
Mutual Fund - Debt
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	144.0	144.6
Mutual Fund - Debt | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	144.0	144.6
Mutual Fund - Debt | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
Mutual Fund - Debt | Fair Value, Inputs, Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
Mutual Fund - Debt | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	144.0	144.6
Mutual Fund - Debt | Fair Value, Inputs, Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	144.0	144.6
Mutual Fund - Debt | Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
Mutual Fund - Debt | Fair Value, Inputs, Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	1.9	1.9
Cash and Cash Equivalents [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	1.9	1.9
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	1.9	1.9
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	1.9	1.9
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
US Government Debt Securities
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	65.8	64.8
US Government Debt Securities | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	65.8	64.8
US Government Debt Securities | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
US Government Debt Securities | Fair Value, Inputs, Level 1 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
US Government Debt Securities | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	65.8	64.8
US Government Debt Securities | Fair Value, Inputs, Level 2 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	65.8	64.8
US Government Debt Securities | Fair Value, Inputs, Level 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	0.0	0.0
US Government Debt Securities | Fair Value, Inputs, Level 3 [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Total Equity Securities	$ 0.0	$ 0.0

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Benefit Plans (Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets And Regulatory Liabilities) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Prior service cost for the period, net of income tax benefit/(expense)	$ 0.0	$ 0.0	$ (0.1)
Pension [Member]
Defined Benefit Plan Disclosure [Line Items]
Reversal of amortization item, Net actuarial (gain) / loss	(9.0)	(1.0)	(4.2)
Reversal of amortization item, Prior service cost / (credit)	(0.9)	(6.1)	(1.3)
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax	(29.3)	18.7	(0.2)
Total recognized in net periodic benefit cost and Accumulated other comprehensive income, Regulatory assets and Regulatory liabilities	(21.7)	22.7	3.8
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax	(21.7)	25.8	5.3
Prior service cost for the period, net of income tax benefit/(expense)	2.3	0.0	0.0
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment	2.3	0.0
Pension [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Defined Benefit Plan Disclosure [Line Items]
Reversal of amortization item, Net actuarial (gain) / loss	(11.4)	(8.7)	(7.0)
Reversal of amortization item, Prior service cost / (credit)	(1.1)	(1.3)	(1.8)
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax	(31.9)	15.8	(3.5)
Total recognized in net periodic benefit cost and Accumulated other comprehensive income, Regulatory assets and Regulatory liabilities	(21.7)	22.7	3.8
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax	(21.7)	25.8	5.3
Prior service cost for the period, net of income tax benefit/(expense)	2.3	0.0	$ 0.0
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment	$ 2.3	$ 0.0

XML

Benefit Plans (Defined Benefits Plan Assets, Target Allocations) (Details)	Dec. 31, 2021	Dec. 31, 2020
Equity Securities [Member]
Target Allocation	41.00%
Percentage of plan assets	42.00%	42.00%
Debt Securities [Member]
Target Allocation	59.00%
Percentage of plan assets	57.00%	57.00%
Cash and Cash Equivalents [Member]
Target Allocation	0.00%
Percentage of plan assets	1.00%	1.00%
THE DAYTON POWER AND LIGHT COMPANY [Member] | Equity Securities [Member]
Target Allocation	41.00%
Percentage of plan assets	42.00%	42.00%
THE DAYTON POWER AND LIGHT COMPANY [Member] | Debt Securities [Member]
Target Allocation	59.00%
Percentage of plan assets	57.00%	57.00%
THE DAYTON POWER AND LIGHT COMPANY [Member] | Cash and Cash Equivalents [Member]
Target Allocation	0.00%
Percentage of plan assets	1.00%	1.00%

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Equity (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Retained earnings / (deficit)	$ (2,717.9)	$ (2,740.0)
Common stock, shares authorized	1,500	1,500
Common stock, shares outstanding	1	1
Accounts Payable, Related Parties, Current	$ 24.7	$ 14.8
Non-cash capital contribution		98.0
Cash Contribution from Parent Company	150.0	150.0
Payment against tax receivable balance from Parent	17.5	52.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Class of Stock [Line Items]
Retained earnings / (deficit)	$ (8.9)	$ (56.0)
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares outstanding	41,172,173	41,172,173
Accounts Payable, Related Parties, Current	$ 24.7	$ 14.8
Dividends, Common Stock, Cash	42.0	(52.7)	$ 95.0
Payments of Ordinary Dividends, Common Stock	52.0		95.0
Other Paid-In Capital [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Class of Stock [Line Items]
Dividends, Common Stock, Cash	42.0	52.7	95.0
Payments of Ordinary Dividends, Common Stock	52.0	42.7
Dividends, Common Stock	$ 42.0	$ 42.7	$ 95.0

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Contractual Obligations, Commercial Commitments and Contingencies (Schedule Of Contractual Obligations And Commercial Commitments) (Details) $ in Millions	Dec. 31, 2021 USD ($)
Electricity Purchase Commitments [Member]
Contractual Obligations, Commercial Commitments And Contingencies [Line Items]
Electricity Purchase Commitments	$ 82.9
Electricity Purchase Agreements Less Than 1 Year	82.9
Electricity Purchase Agreements in Years 2 and 3	0.0
Electricity Purchase Agreements in Years 4 and 5	0.0
Electricity Purchase Agreements, After Year 5	0.0
Electricity Purchase Commitments [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Contractual Obligations, Commercial Commitments And Contingencies [Line Items]
Electricity Purchase Commitments	82.9
Electricity Purchase Agreements Less Than 1 Year	82.9
Electricity Purchase Agreements in Years 2 and 3	0.0
Electricity Purchase Agreements in Years 4 and 5	0.0
Electricity Purchase Agreements, After Year 5	0.0
Other Intangible Assets [Member]
Contractual Obligations, Commercial Commitments And Contingencies [Line Items]
Total Purchase orders and other contractual obligations	149.4
Purchase orders and other contractual obligations, Less than 1 year	138.7
Purchase orders and other contractual obligations, 2 - 3 years	10.7
Purchase orders and other contractual obligations, 4 - 5 years	0.0
Purchase orders and other contractual obligations, More than 5 years	0.0
Other Intangible Assets [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Contractual Obligations, Commercial Commitments And Contingencies [Line Items]
Total Purchase orders and other contractual obligations	146.8
Purchase orders and other contractual obligations, Less than 1 year	136.1
Purchase orders and other contractual obligations, 2 - 3 years	10.7
Purchase orders and other contractual obligations, 4 - 5 years	0.0
Purchase orders and other contractual obligations, More than 5 years	$ 0.0

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Contractual Obligations, Commercial Commitments and Contingencies (Narrative) (Details) - THE DAYTON POWER AND LIGHT COMPANY [Member] $ in Millions	Dec. 31, 2021 USD ($)
Debt Obligation on 4.9% Equity Ownership [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Equity ownership interest	4.90%
Equity ownership interest aggregate cost	$ 55.5
Electric Generation Company [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Debt obligation	$ 1,131.7

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Related Party Transactions (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Related Party Transaction [Line Items]

Schedule of Related Party Transactions

The following table provides a summary of our related party transactions:

	Years ended December 31,
$ in millions	2021		2020		2019
Transactions with the Service Company
Net charges for services provided	$	39.2	$	34.6	$	30.2
Transactions with other AES affiliates:
Payments for health, welfare and benefit plans	$	13.9	$	10.7	$	11.2
Consulting and other services	$	1.4	$	0.8	$	0.7
Balances with related parties:	At December 31, 2021		At December 31, 2020
Net payable to the Service Company	$	(24.7)	$	(14.8)
Net receivable from / (payable to) AES and other AES affiliates	$	0.7	$	(1.7)

Other Investments

$ 0.2

$ 0.2

Deferred Compensation Arrangement with Individual, Compensation Expense

0.0

0.1

$ 0.0

Net payable to the Service Company

(24.7)

(14.8)

Due to Affiliate

$ 0.7

(1.7)

THE DAYTON POWER AND LIGHT COMPANY [Member]

Related Party Transaction [Line Items]

Schedule of Related Party Transactions

The following table provides a summary of our related party transactions:

	Years ended December 31,
$ in millions	2021		2020		2019
AES Ohio Operation & Maintenance Expenses:
Premiums charged for insurance services provided by MVIC (a)	$	3.3	$	3.4	$	3.1
Transactions with the Service Company:
Net charges for services provided	$	38.1	$	33.4	$	27.7
Transactions with other AES affiliates:
Charges for health, welfare and benefit plans	$	10.5	$	10.1	$	10.4
Charges to affiliates for non-power goods or services (b)	$	5.8	$	4.1	$	4.1
Consulting and other services	$	1.4	$	0.8	$	0.7
Balances with related parties:	At December 31, 2021		At December 31, 2020
Net payable to the Service Company	$	(24.7)	$	(14.8)
Net receivable from / (payable to) AES and other AES affiliates	$	0.5	$	(2.1)

(a)    MVIC, a wholly-owned captive insurance subsidiary of DPL, provides insurance coverage to AES Ohio and other DPL subsidiaries for workers’ compensation, general liability, property damages and directors’ and officers’ liability. These amounts represent insurance premiums charged by MVIC to AES Ohio.

(b)    In the normal course of business AES Ohio incurred and recorded expenses on behalf of DPL affiliates. Such expenses included but were not limited to employee-related expenses, accounting, information technology, payroll, legal and other administration expenses. AES Ohio subsequently charged these expenses to the affiliates at AES Ohio’s cost and credited the expense in which they were initially recorded.

Deferred Compensation Arrangement with Individual, Compensation Expense

$ 0.0

0.1

(0.3)

Net payable to the Service Company

(24.7)

(14.8)

Premiums paid for Insurance Services provided by MVIC

3.3

3.4

3.1

Due to Affiliate

(0.5)

2.1

Note to DPL Capital Trust II Maturing in 2031 - 8.125% [Member]

Related Party Transaction [Line Items]

Note payable to trust

15.6

15.6

Income Taxes Paid, Net [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]

Related Party Transaction [Line Items]

Related Party Transaction, Amounts of Transaction

0.0

0.0

22.5

Charges for health, welfare and benefit plans [Member] | Subsidiary of Common Parent [Member]

Related Party Transaction [Line Items]

Related Party Transaction, Amounts of Transaction

13.9

10.7

11.2

Charges for health, welfare and benefit plans [Member] | Subsidiary of Common Parent [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]

Related Party Transaction [Line Items]

Related Party Transaction, Amounts of Transaction

10.5

10.1

10.4

Consulting Services [Member] | Subsidiary of Common Parent [Member]

Related Party Transaction [Line Items]

Related Party Transaction, Amounts of Transaction

1.4

0.8

0.7

Consulting Services [Member] | Subsidiary of Common Parent [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]

Related Party Transaction [Line Items]

Related Party Transaction, Amounts of Transaction

1.4

0.8

0.7

Charges for affiliates for non-power goods or services [Member] | Subsidiary of Common Parent [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]

Related Party Transaction [Line Items]

Related Party Transaction, Amounts of Transaction

5.8

4.1

4.1

Service Company

Related Party Transaction [Line Items]

Related Party Transaction, Amounts of Transaction

39.2

34.6

30.2

Service Company | THE DAYTON POWER AND LIGHT COMPANY [Member]

Related Party Transaction [Line Items]

Related Party Transaction, Amounts of Transaction

$ 38.1

$ 33.4

$ 27.7

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Business Segments (Segment Financial Information) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
External customer revenues	$ 672.7	$ 660.5	$ 743.7
Intersegment revenues	0.0	0.0	0.0
Total revenues	672.7	660.5	743.7
Fuel Costs	0.5	1.7	2.5
Depreciation and amortization	76.1	73.3	72.3
Interest expense	62.9	71.3	82.2
Gain (Loss) on Extinguishment of Debt	0.0	31.7	44.9
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	22.4	(11.9)	31.5
Net loss from continuing operations	22.9	(6.4)	51.8
Discontinued operations, net of tax	(0.8)	5.4	53.6
Cash capital expenditures	191.3	157.3	156.5
Total assets (end of year)	2,171.8	2,036.0	1,935.8
Operating Segments [Member] | Utility [Member]
Segment Reporting Information [Line Items]
External customer revenues	663.0	651.2	734.3
Intersegment revenues	0.7	0.9	1.1
Total revenues	663.7	652.1	735.4
Depreciation and amortization	74.6	71.8	70.8
Interest expense	24.2	24.3	26.0
Gain (Loss) on Extinguishment of Debt		0.0	0.0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	52.8	58.1	124.3
Cash capital expenditures	189.3	153.3	155.5
Total assets (end of year)	2,171.8	2,014.7	1,883.2
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
External customer revenues	9.7	9.3	9.4
Intersegment revenues	3.5	3.6	3.2
Total revenues	13.2	12.9	12.6
Depreciation and amortization	1.5	1.5	1.5
Interest expense	38.7	47.0	56.2
Gain (Loss) on Extinguishment of Debt		31.7	44.9
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	(30.4)	(70.0)	(92.8)
Cash capital expenditures	2.0	4.0	1.0
Total assets (end of year)	9.2	21.3	52.6
Consolidation, Eliminations [Member]
Segment Reporting Information [Line Items]
External customer revenues	0.0	0.0	0.0
Intersegment revenues	(4.2)	(4.5)	(4.3)
Total revenues	(4.2)	(4.5)	(4.3)
Depreciation and amortization	0.0	0.0	0.0
Interest expense	0.0	0.0	0.0
Gain (Loss) on Extinguishment of Debt		0.0	0.0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	0.0	0.0	0.0
Cash capital expenditures	0.0	0.0	0.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Segment Reporting Information [Line Items]
Fuel Costs	0.5	1.6	2.5
Depreciation and amortization	74.6	71.8	70.8
Interest expense	24.2	24.3	26.0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	52.8	58.1	$ 124.3
Total assets (end of year)	$ 2,162.6	$ 2,014.7

XML

Business Segments (Narrative) (Details)	12 Months Ended
	Dec. 31, 2021 mi² customer segment
Segment Reporting Information [Line Items]
Service area, square miles	6,000
THE DAYTON POWER AND LIGHT COMPANY [Member]
Segment Reporting Information [Line Items]
Number of Operating Segments | segment	1
Approximate number of retail customers | customer	534,000
Service area, square miles	6,000

XML

Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer, Excluding Assessed Tax	$ 667.6	$ 645.0	$ 720.6
Revenues	672.7	660.5	743.7
RTO Revenue	50.0	44.0	43.5
RTO Capacity Revenue	5.9	4.2	6.2
Contract with Customer, Asset, before Allowance for Credit Loss	61.5	70.1
Utility [Member]
Revenues	663.7	652.1	735.4
RTO Revenue	49.9	44.0	43.5
RTO Capacity Revenue	5.9	4.2	6.2
Corporate and Other
Revenues	13.2	12.9	12.6
RTO Revenue	0.1	0.0	0.0
RTO Capacity Revenue	0.0	0.0	0.0
Adjustments and Eliminations
Revenues	(4.2)	(4.5)	(4.3)
RTO Revenue	0.0	0.0	0.0
RTO Capacity Revenue	0.0	0.0	0.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	658.6	636.6	712.2
Revenues	663.7	652.1	735.4
RTO Revenue	49.9	44.0	43.5
RTO Capacity Revenue	5.9	4.2	6.2
Contract with Customer, Asset, before Allowance for Credit Loss	60.8	69.2
Wholesale Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	18.8	10.1	16.2
Wholesale Revenue [Member] | Utility [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	19.5	11.0	17.2
Wholesale Revenue [Member] | Corporate and Other
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Wholesale Revenue [Member] | Adjustments and Eliminations
Revenue from Contract with Customer, Excluding Assessed Tax	(0.7)	(0.9)	(1.0)
Wholesale Revenue [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	19.5	11.0	17.2
Other Revenues [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	9.6	9.3	9.4
Other non-606 revenue	5.1	6.5	1.1
Other Revenues [Member] | Utility [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Other non-606 revenue	5.1	6.5	1.2
Other Revenues [Member] | Corporate and Other
Revenue from Contract with Customer, Excluding Assessed Tax	9.6	9.3	9.4
Other non-606 revenue	3.5	3.6	3.2
Other Revenues [Member] | Adjustments and Eliminations
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Other non-606 revenue	(3.5)	(3.6)	(3.3)
Other Revenues [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
Other non-606 revenue	5.1	6.5	1.2
Retail Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	583.3	577.4	645.3
Other non-606 revenue		9.0	22.0
Retail Revenue [Member] | Residential Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	364.9	362.3	403.5
Retail Revenue [Member] | Commercial Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	122.6	114.6	130.3
Retail Revenue [Member] | Industrial Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	57.5	51.2	55.3
Retail Revenue [Member] | Governmental Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	26.1	36.6	42.4
Retail Revenue [Member] | Other Revenues [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	12.2	12.7	13.8
Retail Revenue [Member] | Utility [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	583.3	577.4	645.3
Other non-606 revenue	0.0	9.0	22.0
Retail Revenue [Member] | Utility [Member] | Residential Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	364.9	362.3	403.5
Retail Revenue [Member] | Utility [Member] | Commercial Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	122.6	114.6	130.3
Retail Revenue [Member] | Utility [Member] | Industrial Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	57.5	51.2	55.3
Retail Revenue [Member] | Utility [Member] | Governmental Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	26.1	36.6	42.4
Retail Revenue [Member] | Utility [Member] | Other Revenues [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	12.2	12.7	13.8
Retail Revenue [Member] | Corporate, Non-Segment [Member]
Other non-606 revenue		0.0	0.0
Retail Revenue [Member] | Consolidation, Eliminations [Member]
Other non-606 revenue		0.0	0.0
Retail Revenue [Member] | Corporate and Other
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Retail Revenue [Member] | Corporate and Other | Residential Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Retail Revenue [Member] | Corporate and Other | Commercial Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Retail Revenue [Member] | Corporate and Other | Industrial Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Retail Revenue [Member] | Corporate and Other | Governmental Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Retail Revenue [Member] | Corporate and Other | Other Revenues [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Retail Revenue [Member] | Adjustments and Eliminations
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Retail Revenue [Member] | Adjustments and Eliminations | Residential Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Retail Revenue [Member] | Adjustments and Eliminations | Commercial Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Retail Revenue [Member] | Adjustments and Eliminations | Industrial Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Retail Revenue [Member] | Adjustments and Eliminations | Governmental Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0	0.0
Retail Revenue [Member] | Adjustments and Eliminations | Other Revenues [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 0.0	$ 0.0	$ 0.0

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Discontinued Operations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property, Plant and Equipment, Additions	$ 3.9	$ 8.9	$ 51.0
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	0.0	6.1	20.1
Proceeds from disposal and sale of business interests	0.0	1.6	0.0
Revenues	1.4	24.2	70.9
Cost of revenues	(2.4)	(24.8)	(19.8)
Income / (loss) from discontinued operations before income tax	(1.0)	(0.6)	47.6
Income tax expense / (benefit) from discontinued operations	(0.2)	0.1	14.1
Net income / (loss) from discontinued operations	(0.8)	5.4	53.6
Cash Provided by (Used in) Operating Activities, Discontinued Operations	(0.8)	3.2	21.3
Cash Provided by (Used in) Investing Activities, Discontinued Operations	(1.6)	4.9	(51.0)
Settlement of Joint Operating Agreement			19.4
Disposal Group, Including Discontinued Operation, Fixed-Asset Impairment	0.0	0.0	(3.5)
Disposal Group, Including Discontinued Operation, Asset Retirement Obligation, Revision of Estimate			22.5
Stuart and Killen [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property, Plant and Equipment, Additions			51.0
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax			$ 20.0
Conesville [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property, Plant and Equipment, Additions	3.4
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax		$ 4.5
Forecast [Member] | Conesville [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Property, Plant and Equipment, Additions	$ 4.0

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Dispositions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	$ 22.4	$ (11.9)	$ 31.5
Payments for Removal Costs	3.9	8.9	51.0
THE DAYTON POWER AND LIGHT COMPANY [Member]
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	52.8	58.1	124.3
Payments for Removal Costs	0.0	7.0	$ 0.0
THE DAYTON POWER AND LIGHT COMPANY [Member] | Hutchings
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest		4.7
Payments for Removal Costs		$ 7.0
Payments for Removal Costs, Additional Payments	$ 2.3

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Risks and Uncertainties (Details)

12 Months Ended

Dec. 31, 2021

Unusual Risk or Uncertainty [Line Items]

Unusual Risks and Uncertainties

Risks and Uncertainties

Risks & Uncertainties

COVID-19 Pandemic

The COVID-19 pandemic has impacted global economic activity, including electricity and energy consumption, and caused significant volatility in financial markets. Many countries, including the U.S., reacted to the pandemic by instituting quarantines and mandating business and school closures or limitations and other social distancing measures. Responses to the COVID-19 pandemic by the State of Ohio and its residents and businesses continue to evolve as virus variants emerge, vaccine availability and usage continues and the state and businesses review and adjust the scope and requirements of social distancing measures. Social distancing measures designed to slow the spread of the virus, such as business closures and operations limitations, impact energy demand within our service territory. We continue to take a variety of measures in response to the spread of COVID-19 to ensure our ability to generate, transmit, distribute and sell electric energy, ensure the health and safety of our employees, contractors, customers and communities and provide essential services to the communities in which we operate. In addition to the impacts to demand within our service territory, we also have incurred and expect to continue to incur expenses relating to COVID-19, including those that relate to events outside of our control. The magnitude and duration of the COVID-19 pandemic is unknown at this time and may have material and adverse effects on our results of operations, financial condition and cash flows in future periods.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Unusual Risk or Uncertainty [Line Items]

Risks and Uncertainties

Risks & Uncertainties

COVID-19 Pandemic

The COVID-19 pandemic has impacted global economic activity, including electricity and energy consumption, and caused significant volatility in financial markets. Many countries, including the U.S., reacted to the pandemic by instituting quarantines and mandating business and school closures or limitations and other social distancing measures. Responses to the COVID-19 pandemic by the State of Ohio and its residents and businesses continue to evolve as virus variants emerge, vaccine availability and usage continues and the state and businesses review and adjust the scope and requirements of social distancing measures. Social distancing measures designed to slow the spread of the virus, such as business closures and operations limitations, impact energy demand within our service

territory. We continue to take a variety of measures in response to the spread of COVID-19 to ensure our ability to generate, transmit, distribute and sell electric energy, ensure the health and safety of our employees, contractors, customers and communities and provide essential services to the communities in which we operate. In addition to the impacts to demand within our service territory, we also have incurred and expect to continue to incur expenses relating to COVID-19, including those that relate to events outside of our control. The magnitude and duration of the COVID-19 pandemic is unknown at this time and may have material and adverse effects on our results of operations, financial condition and cash flows in future periods.

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Schedule II Valuation And Qualifying Accounts (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Provision for Uncollectible Accounts [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 2.8	$ 0.4	$ 0.9
Additions	(0.4)	3.0	3.0
Deductions	2.1	0.6	3.5
Balance at End of Period	0.3	2.8	0.4
Provision for Uncollectible Accounts [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	2.8	0.4	0.9
Additions	(0.4)	3.0	3.0
Deductions	2.1	0.6	3.5
Balance at End of Period	0.3	2.8	0.4
Valuation Allowance For Deferred Tax Assets [Member]
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	39.0	29.0	29.9
Additions	1.5	11.0	2.2
Deductions	3.4	1.0	3.1
Balance at End of Period	$ 37.1	$ 39.0	$ 29.0