10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

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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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	☑

DPL Inc. and The Dayton Power and Light Company are voluntary filers. 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	☐	☐	☑	☐	☐

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	☐

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 outstanding common stock of The Dayton Power and Light Company is owned by DPL Inc.

As of May 5, 2022, 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

2

This combined Form 10-Q 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.

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DPL Inc. and AES Ohio

Quarter Ended March 31, 2022

	Table of Contents	Page No.
Glossary of Terms		5
Forward-Looking Statements		6
Part I Financial Information
Item 1	Financial Statements – DPL Inc. and AES Ohio (Unaudited)
	DPL Inc.
	Condensed Consolidated Statements of Operations	10
	Condensed Consolidated Statements of Comprehensive Income	11
	Condensed Consolidated Balance Sheets	12
	Condensed Consolidated Statements of Cash Flows	13
	Condensed Consolidated Statements of Shareholder's Deficit	14
	Notes to Unaudited Condensed Consolidated Financial Statements	15
	Note 1 – Overview and Summary of Significant Accounting Policies	15
	Note 2 – Regulatory Matters	18
	Note 3 – Fair Value	18
	Note 4 – Derivative Instruments and Hedging Activities	20
	Note 5 – Long-term Debt	20
	Note 6 – Income Taxes	21
	Note 7 – Benefit Plans	22
	Note 8 – Contractual Obligations, Commercial Commitments and Contingencies	22
	Note 9 – Business Segments	23
	Note 10 – Revenue	24
	Note 11 – Discontinued Operations	25
	Note 12 – Risks and Uncertainties	26
	AES Ohio
	Condensed Statements of Operations	28
	Condensed Statements of Comprehensive Income	29
	Condensed Balance Sheets	30
	Condensed Statements of Cash Flows	31
	Condensed Statements of Shareholder's Equity	32
	Notes to Unaudited Condensed Financial Statements	33
	Note 1 – Overview and Summary of Significant Accounting Policies	33
	Note 2 – Regulatory Matters	36
	Note 3 – Fair Value	36
	Note 4 – Long-term Debt	37
	Note 5 – Income Taxes	38
	Note 6 – Benefit Plans	38
	Note 7 – Shareholder's Equity	39
	Note 8 – Contractual Obligations, Commercial Commitments and Contingencies	40
	Note 9 – Revenue	40
	Note 10 – Risks and Uncertainties
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	41
Item 3	Quantitative and Qualitative Disclosures about Market Risk	57
Item 4	Controls and Procedures	57
Part II Other Information
Item 1	Legal Proceedings	58
Item 1A	Risk Factors	58
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	59
Item 3	Defaults Upon Senior Securities	59
Item 4	Mine Safety Disclosures	59
Item 5	Other Information	59
Item 6	Exhibits	60
	Signatures	61

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GLOSSARY OF TERMS 

The following terms are used in this Form 10-Q:

Term	Definition
2017 ESP	DP&L's ESP - approved October 20, 2017, effective November 1, 2017
AES	The AES Corporation - a global power company and 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, which previously operated EGUs and made wholesale sales
AOCL	Accumulated Other Comprehensive Loss
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
CCR	Coal Combustion Residuals
Conesville	AES Ohio Generation's interest in Unit 4 at the Conesville EGU. This was sold on June 5, 2020.
COVID-19	The disease caused by the novel coronavirus that resulted in a global pandemic beginning in 2020.
DPL	DPL Inc. and its consolidated subsidiaries
DPL Credit Agreement	$95.0 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 that delivers electricity to residential, commercial, industrial and governmental customers in a 6,000-square mile area of West Central Ohio. DP&L does business as AES Ohio.
EBITDA	Earnings before interest, taxes, depreciation and amortization
EGU	Electric Generating Unit
ERISA	The Employee Retirement Income Security Act of 1974
ESP	The Electric Security Plan - a plan that a utility must 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 2017 ESP 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.
FASB	Financial Accounting Standards Board
FERC	Federal Energy Regulatory Commission
Form 10-K	DPL’s and DP&L’s combined Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was filed on February 28, 2022
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
kWh	Kilowatt-hours - a measure of electrical energy equivalent to a power consumption of 1,000 watts for 1 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.
MVIC	Miami Valley Insurance Company is a wholly-owned insurance subsidiary of DPL that provides insurance services to DPL and its subsidiaries
MW	Megawatt, a unit of power equal to one million watts
NAAQS	National Ambient Air Quality Standards - the USEPA’s health and environmental based standards for six specified pollutants, as found in the ambient air
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
NOx	Nitrogen Oxide - an air pollutant regulated by the NAAQS under the CAA

5

GLOSSARY OF TERMS (cont.)
Term	Definition
Ohio EPA	Ohio Environmental Protection Agency
OVEC	Ohio Valley Electric Corporation - an electric generating company in which DP&L holds a 4.9% equity interest
PJM	PJM Interconnection, LLC, an RTO
PUCO	Public Utilities Commission of Ohio
RTO	Regional Transmission Organization - an entity that is independent from all generation and power marketing interests and has exclusive responsibility for grid operations, short-term reliability, and transmission service within a region
SEC	U.S. Securities and Exchange Commission
SERP	Supplemental Executive Retirement Plan
Service Company	AES US Services, LLC - the shared services affiliate providing accounting, finance, and other support services to AES’ U.S. SBU businesses
SSO	Standard Service Offer represents the regulated rates, authorized by the PUCO, charged to DP&L retail customers that take retail generation service from DP&L within DP&L’s service territory
T&D	Transmission and distribution
U.S.	United States of America
USEPA	U.S. Environmental Protection Agency
USF	The Universal Service Fund 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. and Utilities Strategic Business Unit, AES’ reporting unit covering the businesses in the United States, including DPL
Utility segment	DPL's Utility segment is made up of DP&L’s electric transmission and distribution businesses, which distribute electricity to residential, commercial, industrial and governmental customers

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 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 or other projects;

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•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;

•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; 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 our Annual Report on Form 10-K and Item 1A - Risk Factors to Part II of this quarterly report and the “Management's Discussion and Analysis of Financial Condition and Results of Operations” section in our Form 10-K and this Quarterly Report on Form 10-Q 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.

Our SEC filings are available to the public from the SEC’s website at www.sec.gov.

COMPANY WEBSITE

DP&L’s public internet site is www.aes-ohio.com. The information on this website is not incorporated by reference into this report.

7

Part I – Financial Information

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 be clearly noted in the applicable section.

Item 1 – Financial Statements

8

FINANCIAL STATEMENTS

DPL INC.

9

DPL Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
	Three months ended
	March 31,
$ in millions	2022		2021
Revenues	$	199.3	$	175.2
Operating costs and expenses
Net fuel cost	—		0.4
Net purchased power cost	90.8		71.5
Operation and maintenance	40.8		34.8
Depreciation and amortization	19.5		19.1
Taxes other than income taxes	22.0		20.4
Gain on disposal of business	(0.6)		—
Total operating costs and expenses	172.5		146.2
Operating income	26.8		29.0
Other expense, net:
Interest expense	(15.5)		(15.6)
Other income	0.4		0.5
Total other expense, net	(15.1)		(15.1)
Income from continuing operations before income tax	11.7		13.9
Income tax benefit from continuing operations	(3.7)		(0.3)
Net income from continuing operations	15.4		14.2
Discontinued operations (Note 11):
Loss from discontinued operations before income tax	—		(0.8)
Income tax benefit from discontinued operations	—		(0.2)
Net loss from discontinued operations	—		(0.6)
Net income	$	15.4	$	13.6

See Notes to Condensed Consolidated Financial Statements.

10

DPL Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
	Three months ended
	March 31,
$ in millions	2022		2021
Net income	$	15.4	$	13.6
Derivative activity:
Reclassification to earnings, net of income tax expense of $0.1 and $0.0 for each respective period	(0.1)		(0.2)
Total derivative activity	(0.1)		(0.2)
Pension and postretirement activity:
Reclassification to earnings, net of income tax benefit of $(0.1) and $(0.1) for each respective period	0.2		0.5
Total change in unfunded pension and postretirement obligations	0.2		0.5
Other comprehensive income	0.1		0.3
Net comprehensive income	$	15.5	$	13.9

See Notes to Condensed Consolidated Financial Statements.

11

DPL Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
$ in millions	March 31, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	32.1	$	26.6
Accounts receivable, net of allowance for credit losses of $0.2 and $0.3, respectively (Note 1)	73.9		71.5
Inventories	17.4		14.4
Taxes applicable to subsequent years	60.9		83.1
Regulatory assets, current	19.4		24.5
Taxes receivable	6.0		2.7
Prepayments and other current assets	10.5		7.6
Total current assets	220.2		230.4
Property, plant & equipment:
Property, plant & equipment	2,032.6		1,990.4
Less: Accumulated depreciation and amortization	(475.3)		(464.0)
	1,557.3		1,526.4
Construction work in process	172.6		174.4
Total net property, plant & equipment	1,729.9		1,700.8
Other non-current assets:
Regulatory assets, non-current	174.3		176.8
Intangible assets, net of amortization	37.3		33.7
Other non-current assets	28.0		30.1
Total other non-current assets	239.6		240.6
Total assets	$	2,189.7	$	2,171.8
LIABILITIES AND SHAREHOLDER'S DEFICIT
Current liabilities:
Short-term and current portion of long-term debt (Note 5)	$	140.2	$	65.2
Accounts payable	76.4		111.0
Accrued taxes	87.7		85.1
Accrued interest	18.3		15.3
Customer deposits	20.1		15.0
Regulatory liabilities, current	19.9		14.6
Accrued and other current liabilities	14.8		17.1
Total current liabilities	377.4		323.3
Non-current liabilities:
Long-term debt (Note 5)	1,395.8		1,395.3
Deferred income taxes	189.6		187.9
Taxes payable	41.0		83.6
Regulatory liabilities, non-current	226.6		229.3
Accrued pension and other post-retirement benefits	54.3		62.3
Other non-current liabilities	10.9		11.5
Total non-current liabilities	1,918.2		1,969.9
Commitments and contingencies (Note 8)
Common shareholder's deficit
Common stock:
1,500 shares authorized; 1 share issued and outstanding	—		—
Other paid-in capital	2,601.3		2,601.3
Accumulated other comprehensive loss	(4.7)		(4.8)
Accumulated deficit	(2,702.5)		(2,717.9)
Total common shareholder's deficit	(105.9)		(121.4)
Total liabilities and shareholder's deficit	$	2,189.7	$	2,171.8

See Notes to Condensed Consolidated Financial Statements.

12

DPL Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
	Three months ended March 31,
$ in millions	2022		2021
Cash flows from operating activities:
Net income	$	15.4	$	13.6
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	19.5		19.1
Deferred income taxes	(0.4)		3.5
Gain on disposal of business	(0.6)		—
Changes in certain assets and liabilities:
Accounts receivable, net	(2.3)		6.0
Inventories	(3.0)		(0.3)
Taxes applicable to subsequent years	22.3		20.0
Deferred regulatory costs, net	10.4		(4.8)
Accounts payable	(15.7)		(1.6)
Accrued taxes payable / receivable	(43.3)		(40.2)
Accrued interest	3.0		2.4
Accrued pension and other post-retirement benefits	(8.0)		(10.5)
Other	2.5		(1.7)
Net cash provided by / (used in) operating activities	(0.2)		5.5
Cash flows from investing activities:
Capital expenditures	(64.4)		(51.9)
Cost of removal payments	(5.0)		(4.5)
Other investing activities, net	0.1		(0.4)
Net cash used in investing activities	(69.3)		(56.8)
Cash flows from financing activities:
Borrowings from revolving credit facilities	95.0		60.0
Repayment of borrowings from revolving credit facilities	(20.0)		—
Net cash provided by financing activities	75.0		60.0
Cash, cash equivalents, and restricted cash:
Net change	5.5		8.7
Balance at beginning of period	26.7		25.5
Cash, cash equivalents, and restricted cash at end of period	$	32.2	$	34.2
Supplemental cash flow information:
Interest paid, net of amounts capitalized	$	11.3	$	12.9
Non-cash investing activities:
Accruals for capital expenditures	$	23.7	$	16.3

See Notes to Condensed Consolidated Financial Statements.

13

DPL Inc.
Condensed Consolidated Statements of Shareholder's Deficit
(Unaudited)
	Common Stock (a)
$ in millions	Outstanding Shares	Amount		Other Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total
Balance, January 1, 2022	1	$	—	$	2,601.3	$	(4.8)	$	(2,717.9)	$	(121.4)
Net comprehensive income						0.1		15.4		15.5
Balance, March 31, 2022	1	$	—	$	2,601.3	$	(4.7)	$	(2,702.5)	$	(105.9)

	Common Stock (a)
$ in millions	Outstanding Shares	Amount		Other Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total
Balance, January 1, 2021	1	$	—	$	2,468.8	$	(12.3)	$	(2,740.0)	$	(283.5)
Net comprehensive income						0.3		13.6		13.9
Balance, March 31, 2021	1	$	—	$	2,468.8	$	(12.0)	$	(2,726.4)	$	(269.6)

(a)1,500 shares authorized.

See Notes to Condensed Consolidated Financial Statements.

14

DPL Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

For the three months ended March 31, 2022

Note 1 – Overview and Summary of Significant Accounting Policies

Description of Business

DPL is a regional energy company organized in 1985 under the laws of Ohio. DPL has one reportable segment, the Utility segment. See Note 9 – Business Segments for more information relating to this reportable segment. The terms “we,” “us,” “our” and “ours” are used to refer to DPL and its subsidiaries.

DPL is an indirectly wholly-owned subsidiary of AES.

DP&L, a wholly-owned subsidiary of DPL that does business as AES Ohio, is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, retail transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such transmission and distribution services to approximately 535,000 customers located in West Central Ohio. Additionally, 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. 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 owns numerous transmission facilities. AES Ohio 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 11 – Discontinued Operations for more information. DPL's subsidiaries are all 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

DPL’s Condensed 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.

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

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

These financial statements have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial statements and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. Therefore, our interim financial statements in this report should be read along with the annual financial statements included in our Form 10-K for the fiscal year ended December 31, 2021.

In the opinion of our management, the Condensed Consolidated Financial Statements presented in this report contain all adjustments necessary to fairly state our financial position as of March 31, 2022; our results of operations

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for the three months ended March 31, 2022 and 2021, our cash flows for the three months ended March 31, 2022 and 2021 and the changes in our equity for the three months ended March 31, 2022 and 2021. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three months ended March 31, 2022 may not be indicative of our results that will be realized for the full year ending December 31, 2022.

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: recognition of revenue including unbilled revenues; the carrying value of property, plant and equipment; the valuation of insurance and claims liabilities; the valuation of allowances for credit losses and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits.

Cash, Cash Equivalents and Restricted Cash

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

$ in millions	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	32.1	$	26.6
Restricted cash (included in Prepayments and other current assets)	0.1		0.1
Cash, Cash Equivalents, and Restricted Cash, End of Period	$	32.2	$	26.7

Accounts Receivable and Allowance for Credit Losses

Accounts receivable were as follows as of March 31, 2022 and December 31, 2021:

	March 31,		December 31,
$ in millions	2022		2021
Accounts receivable, net:
Customer receivables	$	47.4	$	42.3
Unbilled revenue	17.0		19.2
Amounts due from affiliates	3.7		3.1
Due from PJM transmission enhancement settlement	1.7		1.7
Other	4.3		5.5
Allowance for credit losses	(0.2)		(0.3)
Total accounts receivable, net	$	73.9	$	71.5

The following table is a roll forward of our allowance for credit losses related to the accounts receivable balances for the three months ended March 31, 2022 and 2021:

$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2022	$	0.3	$	(0.1)	$	(0.2)	$	0.2	$	0.2
2021	$	2.8	$	—	$	(0.7)	$	0.2	$	2.3

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 are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of March 31, 2022. Amounts are written off when reasonable collections efforts have been exhausted. During 2021, the current period provision and allowance for credit losses have decreased due to lower past due customer receivable balances.

Inventories

Inventories consist of materials and supplies as of March 31, 2022 and December 31, 2021.

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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. These taxes are accounted for on a net basis and not included in revenue. The amounts of such taxes collected for the three months ended March 31, 2022 and 2021 were as follows:

	Three months ended
	March 31,
$ in millions	2022		2021
Excise taxes collected	$	13.1	$	12.9

Accumulated other comprehensive loss

The amounts reclassified out of Accumulated other comprehensive loss by component during the three months ended March 31, 2022 and 2021 are as follows:

Details about Accumulated Other Comprehensive Loss components	Affected line item in the Condensed Consolidated Statements of Operations	Three months ended
		March 31,
$ in millions		2022		2021
Net gains on cash flow hedges (Note 4):
	Interest expense	$	(0.2)	$	(0.2)
	Income tax expense	0.1		—
	Net of income taxes	(0.1)		(0.2)
Amortization of defined benefit pension items (Note 7):
	Other expense	0.3		0.6
	Income tax benefit	(0.1)		(0.1)
	Net of income taxes	0.2		0.5
Total reclassifications for the period, net of income taxes		$	0.1	$	0.3

The changes in the components of Accumulated other comprehensive loss during the three months ended March 31, 2022 are as follows:

$ in millions	Change in cash flow hedges		Change in unfunded pension and postretirement benefit obligations		Total
Balance as of January 1, 2022	$	12.8	$	(17.6)	$	(4.8)
Amounts reclassified from AOCL to earnings	(0.1)		0.2		0.1
Net current period other comprehensive income / (loss)	(0.1)		0.2		0.1
Balance as of March 31, 2022	$	12.7	$	(17.4)	$	(4.7)

New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted did not have a material impact on our consolidated financial statements.

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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.

ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2020-04 and 2021-01, Reference Rate Form (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). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts.	Effective for all entities as of March 12, 2020 through December 31, 2022	We are implementing the reference rate reform and do not expect these amendments to have a material impact on our consolidated financial statements. See Implementation for further details.

Note 2 – Regulatory Matters

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. Certain parties that have intervened in the distribution rate case have argued that ESP 1 incorporates a distribution rate freeze. We are unable to predict the outcome of the distribution rate case, but if the PUCO were to impose a rate freeze that precludes AES Ohio’s ability to implement a distribution rate increase during ESP 1, it could have a material adverse effect on our results of operations, financial condition and cash flows.

Note 3 – Fair Value

The fair value of current financial assets and liabilities, debt service reserves and other deposits approximate their reported carrying amounts. The estimated fair values of our assets and liabilities have been determined using available market information. By virtue of these amounts being estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For further information on our valuation techniques and policies, see Note 4—Fair Value in Item 8. — Financial Statements and Supplementary Data of our Form 10-K.

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The following table presents the fair value, carrying value and cost of our non-derivative instruments as of March 31, 2022 and December 31, 2021.

	March 31, 2022				December 31, 2021
$ in millions	Cost		Fair Value		Cost		Fair Value
Assets
Money market funds	$	0.4	$	0.4	$	0.4	$	0.4
Equity securities	1.9		4.5		1.9		5.1
Debt securities	3.7		3.5		3.8		3.9
Total	$	6.0	$	8.4	$	6.1	$	9.4
	Carrying Value		Fair Value		Carrying Value		Fair Value
Liabilities
Long-term debt	$	1,396.0	$	1,403.7	$	1,395.5	$	1,519.7

These financial instruments are not subject to master netting agreements or collateral requirements and, as such, are presented in the Condensed Consolidated Balance Sheets at their gross fair value, except for Long-term debt, which is presented at amortized carrying value.

We did not have any transfers of the fair values of our financial instruments between Level 1, Level 2 or Level 3 of the fair value hierarchy during the three months ended March 31, 2022 or 2021.

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 Condensed Consolidated Balance Sheets and classified as equity investments. We recorded net unrealized gains / (losses) of $(0.7) million and $0.2 million during the three months ended March 31, 2022 and 2021, respectively. These amounts are included in "Other income" in our Condensed Consolidated Statements of Operations.

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

The fair value of assets and liabilities as of March 31, 2022 and December 31, 2021 and the respective category within the fair value hierarchy for DPL is as follows:

$ in millions	Fair value as of March 31, 2022 (a)								Fair value as of December 31, 2021 (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	$	0.4	$	—	$	—	$	0.4
Equity securities	—		4.5		—		4.5		—		5.1		—		5.1
Debt securities	—		3.5		—		3.5		—		3.9		—		3.9
Total assets	$	0.4	$	8.0	$	—	$	8.4	$	0.4	$	9.0	$	—	$	9.4
Liabilities
Long-term debt	$	—	$	1,386.6	$	17.1	$	1,403.7	$	—	$	1,502.5	$	17.2	$	1,519.7
Total Liabilities	$	—	$	1,386.6	$	17.1	$	1,403.7	$	—	$	1,502.5	$	17.2	$	1,519.7

(a)    Includes credit valuation adjustment

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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, the fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs.

Note 4 – Derivative Instruments and Hedging Activities

For further information on our derivative and hedge accounting policies, See Note 1 – Overview and Summary of Significant Accounting Policies – Financial Derivatives and Note 5 - Derivative Instruments and Hedging Activities of Item 8 – Financial Statements and Supplementary Data in our Form 10-K.

Cash Flow Hedges

We 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.

The following tables provide information concerning gains recognized in AOCL for the cash flow hedges for the three months ended March 31, 2022 and 2021:

	Three months ended
	March 31, 2022		March 31, 2021
	Interest		Interest
$ in millions (net of tax)	Rate Hedge		Rate Hedge
Beginning accumulated derivative gains in AOCL	$	12.8	$	13.6
Net gains reclassified to earnings
Interest expense	(0.1)		(0.2)
Ending accumulated derivative gains in AOCL	$	12.7	$	13.4
Portion expected to be reclassified to earnings in the next twelve months	$	(0.8)

Note 5 – Long-term Debt

Long-term debt is as follows:

	Interest		March 31,		December 31,
$ in millions	Rate	Maturity	2022		2021
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	17.1		17.2
Unamortized deferred financing costs			(5.3)		(5.4)
Unamortized debt discounts, net			(2.5)		(2.5)
Total long-term debt at AES Ohio			574.3		574.3
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			(8.1)		(8.6)
Unamortized debt discounts, net			(0.8)		(0.8)
Total long-term debt			1,396.0		1,395.5
Less: current portion			(0.2)		(0.2)
Long-term debt, net of current portion			$	1,395.8	$	1,395.3

(a)Note payable to related party.

Lines of credit

As of March 31, 2022 and December 31, 2021, the DPL Credit Agreement had outstanding borrowings of $65.0 million and $65.0 million, respectively. As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings of $75.0 million and $0.0 million, respectively.

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Significant transactions

DPL Inc. agreed to register the 2025 DPL Inc. Senior Unsecured Bonds under the Securities Act by filing an exchange offer registration statement or, under specified circumstances, a shelf registration statement with the SEC pursuant to a Registration Rights Agreement dated June 19, 2020. DPL Inc. filed a registration statement on Form S-4 with respect to the 2025 DPL Inc. Senior Unsecured Bonds with the SEC on March 15, 2021, and this registration statement was declared effective on March 31, 2021. The exchange offer closed on May 5, 2021.

Long-term debt covenants and restrictions

The DPL 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 March 31, 2022, DPL was in compliance with this financial covenant.

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 March 31, 2022, DPL Inc. was in compliance with this financial covenant.

The DPL Credit Agreement also restricts dividend payments from DPL Inc. to AES, such that DPL cannot make dividend payments unless at the time of, and/or as a result of the distribution, (i) DPL Inc.’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 March 31, 2022, DPL Inc. was prohibited from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries).

Starting with the quarter ended September 30, 2021, the borrowing limit on the DPL Inc. Credit Agreement will be reduced by $5.0 million per quarter should the Total Debt to EBITDA ratio for the period of four consecutive quarters exceed 7.00 to 1.00. As of March 31, 2022, DPL Inc. exceeded this ratio and the borrowing limit was reduced from $100.0 million to $95.0 million.

The AES Ohio Credit Agreement 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. As of March 31, 2022, AES Ohio was in compliance with this financial covenant.

As of March 31, 2022, DPL and AES Ohio were in compliance with all debt covenants, including the financial covenants described above.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc.

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 6 – Income Taxes

DPL's provision for income taxes is based on the estimated annual effective tax rate, plus discrete items. The effective tax rate for the three months ended March 31, 2022 and 2021 was (31.6)% and (3.8)%, respectively. The year-to-date rate is different from the combined federal and state statutory rate of 22.1% primarily due to the flowthrough of the net tax benefit related to the reversal of excess deferred taxes of AES Ohio as a percentage of pre-tax book income.

DPL's income tax expense for the three months ended March 31, 2022 was calculated using the estimated annual effective income tax rate for 2022 of (34.8)% on ordinary income. Management estimates the annual effective tax rate based on its forecast of annual pre-tax income or loss.

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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.

Note 7 – Benefit Plans

AES Ohio sponsors a defined benefit pension plan for the majority of its employees.

We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of ERISA and, in addition, make voluntary contributions from time to time. There were $7.5 million and $9.8 million in employer contributions during the three months ended March 31, 2022 and 2021, respectively.

The amounts presented in the following tables for pension include the collective bargaining plan formula, the traditional management plan formula, the cash balance plan formula and the SERP, in the aggregate. The pension costs below have not been adjusted for amounts billed to the Service Company for former AES Ohio employees who are now employed by the Service Company or other AES affiliates that are still participants in the AES Ohio plan. The components of net periodic benefit costs other than service costs are included in Other income in the Condensed Consolidated Statements of Operations.

The net periodic benefit cost of the pension benefit plans for the three months ended March 31, 2022 and 2021 was:

	Three months ended
	March 31,
$ in millions	2022		2021
Service cost	$	1.3	$	1.1
Interest cost	2.4		2.0
Expected return on plan assets	(4.0)		(3.7)
Amortization of unrecognized:
Prior service cost	0.2		0.2
Actuarial loss	1.4		2.3
Net periodic benefit cost	$	1.3	$	1.9

In addition, AES Ohio provides postretirement health care and life insurance benefits to certain retired employees, their spouses and eligible dependents. 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 $8.8 million as of March 31, 2022 and $8.9 million as of December 31, 2021 were not material to the financial statements in the periods covered by this report.

Note 8 – 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. AES Ohio, along with several non-affiliated energy companies party to an OVEC arrangement, receive and pay for OVEC capacity and energy and are responsible for OVEC debt obligations and other fixed costs in proportion to their power participation ratios under the arrangement, which, for AES Ohio, is the same as its equity ownership interest. As of March 31, 2022, AES Ohio could be responsible for the repayment of 4.9%, or $54.8 million, of $1,118.8 million OVEC debt obligations if they came due, comprised of both fixed and variable rate securities with maturities from 2022 to 2040. OVEC could also seek additional contributions from AES Ohio to avoid a default in the event that other OVEC members defaulted on their respective OVEC obligations.

Contingencies

In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under various laws and regulations. We believe the amounts provided in our Condensed 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 discussed below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in our Condensed Consolidated Financial Statements. As such, costs, if any, that may be incurred in excess of those amounts provided as of March 31, 2022, cannot be reasonably determined.

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Environmental Matters

DPL’s and AES Ohio’s current and previously-owned facilities and operations are subject to a wide range of federal, state and local environmental regulations and laws. The environmental issues that may affect us include:

•The federal CAA and state laws and regulations (including State Implementation Plans) 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, federal, state and local environmental laws 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 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 several 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 and cash flows.

We have several pending environmental matters associated with our previously-owned and operated coal-fired generation units. Some of these matters could have a material adverse effect on our results of operations, financial condition and cash flows.

Note 9 – 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 segment. The Utility segment is discussed further below.

Utility Segment

The Utility segment is comprised of AES Ohio’s electric transmission and distribution businesses, which distribute electricity to residential, commercial, industrial and governmental customers. AES Ohio distributes electricity to approximately 535,000 retail customers 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.

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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 on DPL's long-term debt as well as adjustments related to purchase accounting from the Merger. The accounting policies of the reportable segment are the same as those described in Note 1 – Overview and Summary of Significant Accounting Policies of our 10-K. 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 Utility reportable business segment:

$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Three months ended March 31, 2022
Revenues from external customers	$	196.8	$	2.5	$	—	$	199.3
Intersegment revenues	0.2		0.9		(1.1)		—
Total revenues	$	197.0	$	3.4	$	(1.1)	$	199.3
Depreciation and amortization	$	19.2	$	0.3	$	—	$	19.5
Interest expense	$	5.9	$	9.6	$	—	$	15.5
Income / (loss) from continuing operations before income tax	$	19.6	$	(7.9)	$	—	$	11.7
$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Three months ended March 31, 2021
Revenues from external customers	$	172.6	$	2.6	$	—	$	175.2
Intersegment revenues	0.2		0.9		(1.1)		—
Total revenues	$	172.8	$	3.5	$	(1.1)	$	175.2
Depreciation and amortization	$	18.7	$	0.4	$	—	$	19.1
Interest expense	$	6.0	$	9.6	$	—	$	15.6
Income / (loss) from continuing operations before income tax	$	21.5	$	(7.6)	$	—	$	13.9

Total Assets	March 31, 2022		December 31, 2021
Utility	$	2,175.7	$	2,162.6
All Other (a)	14.0		9.2
DPL Consolidated	$	2,189.7	$	2,171.8

(a)    "All Other" includes Eliminations for all periods presented.

Note 10 – 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 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. For further discussion of our Retail, Wholesale, RTO ancillary, and Capacity revenues, see Note 13 — Revenue in Item 8.—Financial Statements and Supplementary Data of our Form 10-K.

DPL's revenue from contracts with customers was $197.7 million and $172.1 million for the three months ended March 31, 2022 and 2021, respectively.

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The following table presents our revenue from contracts with customers and other revenue by segment for the three months ended March 31, 2022 and 2021:

$ in millions	Utility		Other		Adjustments and Eliminations		Total
	Three months ended March 31, 2022
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	109.9	$	—	$	—	$	109.9
Commercial revenue	35.0		—		—		35.0
Industrial revenue	16.9		—		—		16.9
Governmental revenue	6.1		—		—		6.1
Other (a)	2.9		—		—		2.9
Total retail revenue from contracts with customers	170.8		—		—		170.8
Wholesale revenue
Wholesale revenue from contracts with customers	7.7		—		(0.2)		7.5
RTO ancillary revenue	15.1		—		—		15.1
Capacity revenue	1.8		—		—		1.8
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (b)	—		2.5		—		2.5
Other miscellaneous revenue	1.6		0.9		(0.9)		1.6
Total revenues	$	197.0	$	3.4	$	(1.1)	$	199.3
	Three months ended March 31, 2021
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	98.3	$	—	$	—	$	98.3
Commercial revenue	27.3		—		—		27.3
Industrial revenue	12.3		—		—		12.3
Governmental revenue	7.4		—		—		7.4
Other (a)	3.7		—		—		3.7
Total retail revenue from contracts with customers	149.0		—		—		149.0
Wholesale revenue
Wholesale revenue from contracts with customers	5.0		—		(0.2)		4.8
RTO ancillary revenue	14.8		0.1		—		14.9
Capacity revenue	0.9		—		—		0.9
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (b)	—		2.5		—		2.5
Other miscellaneous revenue	3.1		0.9		(0.9)		3.1
Total revenues	$	172.8	$	3.5	$	(1.1)	$	175.2

(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)    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 $64.4 million and $61.5 million as of March 31, 2022 and December 31, 2021, respectively. Payment terms for all receivables from contracts with customers are typically within 30 days, though, as a result of COVID-19, AES Ohio began offering expanded payment arrangements for customers.

Note 11 – 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. For the transaction, DPL will make quarterly cash expenditures, totaling $4.0 million, through July 2022, of which $3.8 million has been paid through March 31, 2022. The transfer of Conesville Unit 4 was the last step in DPL's plan to exit its AES Ohio Generation business operations.

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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 qualified to be presented as discontinued operations. Therefore, the results of operations of this group of components have been reported as such in the Condensed Consolidated Statements of Operations for the period indicated below.

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

	Three months ended
	March 31,
$ in millions	2021
Revenues	$	0.9
Operating costs and other expenses	(1.7)
Loss from discontinued operations before income tax	(0.8)
Income tax expense / (benefit) from discontinued operations	(0.2)
Net income / (loss) from discontinued operations	$	(0.6)

Cash flows related to discontinued operations are included in our Condensed Consolidated Statements of Cash Flows. For the three months ended March 31, 2021, cash flows from operating activities for discontinued operations and cash flows from investing activities for discontinued operations were $(0.2) million and $(0.4) million, respectively.

Note 12 – Risks and 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. 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 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. 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

27

AES Ohio
Condensed Statements of Operations
(Unaudited)
	Three months ended
	March 31,
$ in millions	2022		2021
Revenues	$	197.0	$	172.8
Operating costs and expenses
Net fuel cost	—		0.4
Net purchased power cost	90.5		71.2
Operation and maintenance	40.2		34.6
Depreciation and amortization	19.2		18.7
Taxes other than income taxes	21.9		20.3
Gain on disposal of business	(0.6)		—
Total operating costs and expenses	171.2		145.2
Operating income	25.8		27.6
Other expense, net:
Interest expense	(5.9)		(6.0)
Other expense	(0.3)		(0.1)
Total other expense, net	(6.2)		(6.1)
Income before income tax	19.6		21.5
Income tax expense	2.7		3.2
Net income	$	16.9	$	18.3

See Notes to Condensed Financial Statements.

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AES Ohio
Condensed Statements of Comprehensive Income
(Unaudited)
	Three months ended
	March 31,
$ in millions	2022		2021
Net income	$	16.9	$	18.3
Pension and postretirement activity:
Reclassification to earnings, net of income tax benefit of $(0.2) and $(0.3) for each respective period	0.7		1.0
Total change in unfunded pension and postretirement obligations	0.7		1.0
Other comprehensive income	0.7		1.0
Net comprehensive income	$	17.6	$	19.3

See Notes to Condensed Financial Statements.

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AES Ohio
Condensed Balance Sheets
(Unaudited)
$ in millions	March 31, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	17.9	$	14.4
Accounts receivable, net of allowance for credit losses of $0.2 and $0.3, respectively (Note 1)	73.6		71.9
Inventories	17.4		14.4
Taxes applicable to subsequent years	60.8		83.0
Regulatory assets, current	19.4		24.5
Taxes receivable	27.3		28.1
Prepayments and other current assets	12.8		8.0
Total current assets	229.2		244.3
Property, plant & equipment:
Property, plant & equipment	2,600.4		2,571.3
Less: Accumulated depreciation and amortization	(1,060.7)		(1,062.6)
	1,539.7		1,508.7
Construction work in process	168.4		170.5
Total net property, plant & equipment	1,708.1		1,679.2
Other non-current assets:
Regulatory assets, non-current	174.3		176.8
Intangible assets, net of amortization	36.0		32.4
Other non-current assets	28.1		29.9
Total other non-current assets	238.4		239.1
Total assets	$	2,175.7	$	2,162.6
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Short-term and current portion of long-term debt (Note 4)	$	75.2	$	0.2
Accounts payable	75.8		111.5
Accrued taxes	88.0		85.1
Accrued interest	5.9		2.6
Customer deposits	19.9		14.9
Regulatory liabilities, current	19.9		14.6
Accrued and other current liabilities	11.3		13.0
Total current liabilities	296.0		241.9
Non-current liabilities:
Long-term debt (Note 4)	574.1		574.1
Deferred income taxes	187.6		183.4
Taxes payable	40.9		83.5
Regulatory liabilities, non-current	226.6		229.3
Accrued pension and other post-retirement benefits	54.3		62.3
Other non-current liabilities	5.7		5.9
Total non-current liabilities	1,089.2		1,138.5
Commitments and contingencies (Note 8)
Common shareholder's equity:
Common stock, at 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	813.5		822.5
Accumulated other comprehensive loss	(31.1)		(31.8)
Retained earnings / (Accumulated deficit)	7.7		(8.9)
Total common shareholder's equity	790.5		782.2
Total liabilities and shareholder's equity	$	2,175.7	$	2,162.6

See Notes to Condensed Financial Statements.

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AES Ohio
Condensed Statements of Cash Flows
(Unaudited)
	Three months ended March 31,
$ in millions	2022		2021
Cash flows from operating activities:
Net income	$	16.9	$	18.3
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	19.2		18.7
Deferred income taxes	2.0		3.2
Gain on disposal of business	(0.6)		—
Changes in certain assets and liabilities:
Accounts receivable, net	(1.7)		5.9
Inventories	(3.0)		(0.3)
Taxes applicable to subsequent years	22.3		19.7
Deferred regulatory costs, net	10.4		(4.8)
Accounts payable	(16.7)		(4.3)
Accrued taxes payable / receivable	(38.8)		(38.8)
Accrued interest	3.3		3.2
Accrued pension and other post-retirement benefits	(8.0)		(10.5)
Other	0.9		1.0
Net cash provided by operating activities	6.2		11.3
Cash flows from investing activities:
Capital expenditures	(64.2)		(51.6)
Cost of removal payments	(5.0)		(4.5)
Other investing activities, net	0.5		(0.1)
Net cash used in investing activities	(68.7)		(56.2)
Cash flows from financing activities:
Returns of capital paid to parent	(9.0)		(10.0)
Borrowings from revolving credit facilities	95.0		60.0
Repayment of borrowings from revolving credit facilities	(20.0)		—
Net cash provided by financing activities	66.0		50.0
Cash, cash equivalents, and restricted cash:
Net change	3.5		5.1
Balance at beginning of period	14.5		11.8
Cash, cash equivalents, and restricted cash at end of period	$	18.0	$	16.9
Supplemental cash flow information:
Interest paid, net of amounts capitalized	$	1.8	$	2.7
Non-cash investing activities:
Accruals for capital expenditures	$	23.6	$	16.0

See Notes to Condensed Financial Statements.

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AES Ohio
Condensed Statements of Shareholder's Equity
(Unaudited)
	Common Stock (a)
$ in millions	Outstanding Shares	Amount		Other Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Earnings / (Accumulated Deficit)		Total
Balance, January 1, 2022	41,172,173	$	0.4	$	822.5	$	(31.8)	$	(8.9)	$	782.2
Net comprehensive income						0.7		16.9		17.6
Return of capital				(9.0)						(9.0)
Other								(0.3)		(0.3)
Balance, March 31, 2022	41,172,173	$	0.4	$	813.5	$	(31.1)	$	7.7	$	790.5

	Common Stock (a)
$ in millions	Outstanding Shares	Amount		Other Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total
Balance, January 1, 2021	41,172,173	$	0.4	$	714.4	$	(42.1)	$	(56.0)	$	616.7
Net comprehensive income						1.0		18.3		19.3
Balance, March 31, 2021	41,172,173	$	0.4	$	714.4	$	(41.1)	$	(37.7)	$	636.0

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

See Notes to Condensed Financial Statements.

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AES Ohio

Notes to Unaudited Condensed Financial Statements

Note 1 – Overview and Summary of Significant Accounting Policies

Description of Business

DP&L, which does business as AES Ohio, is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, retail transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such transmission and distribution services to approximately 535,000 customers located in West Central Ohio. Additionally, 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. 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 owns numerous transmission facilities. AES Ohio sells its proportional share of energy and capacity from its investment in OVEC into the wholesale market. AES Ohio has 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. AES Ohio is a subsidiary of DPL. The terms “we,” “us,” “our” and “ours” are used to refer to AES 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 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 immaterial amounts from prior periods have been reclassified to conform to the current period presentation.

These financial statements have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial statements and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. Therefore, our interim financial statements in this report should be read along with the annual financial statements included in our Form 10-K for the fiscal year ended December 31, 2021.

In the opinion of our management, the Condensed Financial Statements presented in this report contain all adjustments necessary to fairly state our financial position as of March 31, 2022; our results of operations for the three months ended March 31, 2022 and 2021, our cash flows for the three months ended March 31, 2022 and 2021 and the changes in our equity for the three months ended March 31, 2022 and 2021. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three months ended March 31, 2022 may not be indicative of our results that will be realized for the full year ending December 31, 2022.

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: recognition of revenue including unbilled revenues; the carrying value of property, plant and equipment; the valuation of insurance and claims liabilities; the valuation of allowances for credit losses and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits.

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Cash, Cash Equivalents and Restricted Cash

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

$ in millions	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	17.9	$	14.4
Restricted cash (included in Prepayments and other current assets)	0.1		0.1
Cash, Cash Equivalents, and Restricted Cash, End of Period	$	18.0	$	14.5

Accounts Receivable and Allowance for Credit Losses

Accounts receivable were as follows as of March 31, 2022 and December 31, 2021:

	March 31,		December 31,
$ in millions	2022		2021
Accounts receivable, net:
Customer receivables	46.5		$	41.6
Unbilled revenue	17.0		19.2
Amounts due from affiliates	4.3		4.4
Due from PJM transmission enhancement settlement	1.7		1.7
Other	4.3		5.3
Allowance for credit losses	(0.2)		(0.3)
Total accounts receivable, net	$	73.6	$	71.9

The following table is a roll forward of our allowance for credit losses related to the accounts receivable balances for the three months ended March 31, 2022 and 2021:

$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2022	$	0.3	$	(0.1)	$	(0.2)	$	0.2	$	0.2
2021	$	2.8	$	—	$	(0.7)	$	0.2	$	2.3

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 are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of March 31, 2022. Amounts are written off when reasonable collections efforts have been exhausted. During 2021, the current period provision and allowance for credit losses have decreased due to lower past due customer receivable balances.

Inventories

Inventories consist of materials and supplies as of March 31, 2022 and December 31, 2021.

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. These taxes are accounted for on a net basis and not included in revenue. The amounts of such taxes collected for the three months ended March 31, 2022 and 2021 were as follows:

	Three months ended
	March 31,
$ in millions	2022		2021
Excise taxes collected	$	13.1	$	12.9

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Accumulated other comprehensive loss

The amounts reclassified out of Accumulated other comprehensive loss by component during the three months ended March 31, 2022 and 2021 are as follows:

Details about Accumulated Other Comprehensive Loss components	Affected line item in the Condensed Consolidated Statements of Operations	Three months ended
		March 31,
$ in millions		2022		2021
Amortization of defined benefit pension items (Note 6):
	Other expense	0.9		1.3
	Income tax benefit	(0.2)		(0.3)
	Net of income taxes	0.7		1.0
Total reclassifications for the period, net of income taxes		$	0.7	$	1.0

The changes in the components of Accumulated other comprehensive loss during the three months ended March 31, 2022 are as follows:

$ in millions	Change in Accumulated other comprehensive loss
Balance as of January 1, 2022	$	(31.8)
Amounts reclassified from AOCL to earnings	0.7
Net current period other comprehensive income	0.7
Balance as of March 31, 2022	$	(31.1)

New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted 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.

ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2020-04 and 2021-01, Reference Rate Form (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). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts.	Effective for all entities as of March 12, 2020 through December 31, 2022	We are implementing the reference rate reform and do not expect these amendments to have a material impact on our financial statements. See Implementation for further details.

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Note 2 – Regulatory Matters

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. Certain parties that have intervened in the distribution rate case have argued that ESP 1 incorporates a distribution rate freeze. We are unable to predict the outcome of the distribution rate case, but if the PUCO were to impose a rate freeze that precludes AES Ohio’s ability to implement a distribution rate increase during ESP 1, it could have a material adverse effect on our results of operations, financial condition and cash flows.

Note 3 – Fair Value

The fair value of current financial assets and liabilities, debt service reserves and other deposits approximate their reported carrying amounts. The estimated fair values of our assets and liabilities have been determined using available market information. By virtue of these amounts being estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For further information on our valuation techniques and policies, see Note 4—Fair Value in Item 8. — Financial Statements and Supplementary Data of our Form 10-K.

The following table presents the fair value, carrying value and cost of our non-derivative instruments as of March 31, 2022 and December 31, 2021.

	March 31, 2022				December 31, 2021
$ in millions	Cost		Fair Value		Cost		Fair Value
Assets
Money market funds	$	0.4	$	0.4	$	0.4	$	0.4
Equity securities	1.9		4.5		1.9		5.1
Debt securities	3.7		3.5		3.8		3.9
Total	$	6.0	$	8.4	$	6.1	$	9.4
	Carrying Value		Fair Value		Carrying Value		Fair Value
Liabilities
Long-term debt	$	574.3	$	582.8	$	574.3	$	642.6

These financial instruments are not subject to master netting agreements or collateral requirements and, as such, are presented in the Condensed Balance Sheets at their gross fair value, except for Long-term debt, which is presented at amortized carrying value.

We did not have any transfers of the fair values of our financial instruments between Level 1, Level 2 or Level 3 of the fair value hierarchy during the three months ended March 31, 2022 or 2021.

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 Condensed Balance Sheets and classified as equity investments. We recorded net unrealized gains / (losses) of $(0.7) million and $0.2 million during the three months ended March 31, 2022 and 2021, respectively. These amounts are included in "Other expense" in our Condensed Statements of Operations.

Long-term 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 long-term debt is presented at carrying value, net of unamortized premium or discount and unamortized deferred financing costs in the financial statements. The long-

36

term debt amounts include the current portion payable in the next twelve months and have maturities that range from 2040 to 2061.

The fair value of assets and liabilities as of March 31, 2022 and December 31, 2021 and the respective category within the fair value hierarchy for AES Ohio is as follows:

$ in millions	Fair value as of March 31, 2022 (a)								Fair value as of December 31, 2021 (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	$	0.4	$	—	$	—	$	0.4
Equity securities	—		4.5		—		4.5		—		5.1		—		5.1
Debt securities	—		3.5		—		3.5		—		3.9		—		3.9
Total assets	$	0.4	$	8.0	$	—	$	8.4	$	0.4	$	9.0	$	—	$	9.4
Liabilities
Long-term debt	$	—	$	565.7	$	17.1	$	582.8	$	—	$	625.4	$	17.2	$	642.6
Total Liabilities	$	—	$	565.7	$	17.1	$	582.8	$	—	$	625.4	$	17.2	$	642.6

(a)    Includes credit valuation adjustment

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, the fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs.

Note 4 – Long-term Debt

Long-term debt is as follows:

	Interest			March 31,		December 31,
$ in millions	Rate		Maturity	2022		2021
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	17.1		17.2
Unamortized deferred financing costs				(5.3)		(5.4)
Unamortized debt discounts, net				(2.5)		(2.5)
Total long-term debt				574.3		574.3
Less: current portion				(0.2)		(0.2)
Long-term debt, net of current portion				$	574.1	$	574.1

Line of credit

As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings on its line of credit of $75.0 million and $0.0 million, respectively.

Long-term debt covenants and restrictions

The AES Ohio Credit Agreement 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. As of March 31, 2022, AES Ohio was in compliance with this financial covenant.

As of March 31, 2022, AES Ohio was in compliance with all debt covenants, including the financial covenants described above.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc.

37

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 5 – Income Taxes

AES Ohio's provision for income taxes is based on the estimated annual effective tax rate, plus discrete items. The effective tax rate for the three months ended March 31, 2022 and 2021 was 13.8% and 14.9%, respectively. The year-to-date rate is different from the combined federal and state statutory rate of 22.1% primarily due to the flowthrough of the net tax benefit related to the reversal of excess deferred taxes of AES Ohio as a percentage of pre-tax book income.

Note 6 – Benefit Plans

AES Ohio sponsors a defined benefit pension plan for the majority of its employees.

We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of ERISA and, in addition, make voluntary contributions from time to time. There were $7.5 million and $9.8 million in employer contributions during the three months ended March 31, 2022 and 2021, respectively.

The amounts presented in the following tables for pension include the collective bargaining plan formula, the traditional management plan formula, the cash balance plan formula and the SERP, in the aggregate. The pension costs below have not been adjusted for amounts billed to the Service Company for former AES Ohio employees who are now employed by the Service Company or other AES affiliates or for amounts billed to AES Ohio Generation for former employees that were employed by AES Ohio Generation that are still participants in the AES Ohio plan. The components of net periodic benefit costs other than service costs are included in Other expense in the Condensed Statements of Operations.

The net periodic benefit cost of the pension benefit plans for the three months ended March 31, 2022 and 2021 was:

	Three months ended
	March 31,
$ in millions	2022		2021
Service cost	$	1.3	$	1.1
Interest cost	2.4		2.0
Expected return on plan assets	(4.0)		(3.7)
Amortization of unrecognized:
Prior service cost	0.3		0.3
Actuarial loss	1.9		2.8
Net periodic benefit cost	$	1.9	$	2.5

In addition, AES Ohio provides postretirement health care and life insurance benefits to certain retired employees, their spouses and eligible dependents. 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 $8.8 million as of March 31, 2022 and $8.9 million as of December 31, 2021 were not material to the financial statements in the periods covered by this report.

Note 7 – Shareholder's Equity

Capital Contribution and Returns of Capital

During the three months ended March 31, 2022, AES Ohio made return of capital payments to DPL of $9.0 million.

During the three months ended March 31, 2021, AES Ohio made return of capital payments, which were declared in 2020, to DPL of $10.0 million.

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Note 8 – 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. AES Ohio, along with several non-affiliated energy companies party to an OVEC arrangement, receive and pay for OVEC capacity and energy and are responsible for OVEC debt obligations and other fixed costs in proportion to their power participation ratios under the arrangement, which, for AES Ohio, is the same as its equity ownership interest. As of March 31, 2022, AES Ohio could be responsible for the repayment of 4.9%, or $54.8 million, of $1,118.8 million OVEC debt obligations if they came due, comprised of both fixed and variable rate securities with maturities from 2022 to 2040. OVEC could also seek additional contributions from AES Ohio to avoid a default in the event that other OVEC members defaulted on their respective OVEC obligations.

Contingencies

In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under various laws and regulations. We believe the amounts provided in our Condensed 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 discussed below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in our Condensed Financial Statements. As such, costs, if any, that may be incurred in excess of those amounts provided as of March 31, 2022, cannot be reasonably determined.

Environmental Matters

AES Ohio’s current and previously-owned facilities and operations are subject to a wide range of federal, state and local environmental regulations and laws. The environmental issues that may affect us include:

•The federal CAA and state laws and regulations (including State Implementation Plans) 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, federal, state and local environmental laws 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 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 several 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 and cash flows.

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Note 9 – 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 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. For further discussion of our Retail, Wholesale, RTO ancillary, and Capacity revenues, see Note 12 — Revenue in Item 8.—Financial Statements and Supplementary Data of our Form 10-K.

AES Ohio's revenue from contracts with customers was $195.4 million and $169.7 million for the three months ended March 31, 2022 and 2021, respectively.

The following table presents our revenue from contracts with customers and other revenue for the three months ended March 31, 2022 and 2021:

	Three months ended
	March 31,
$ in millions	2022		2021
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	109.9	$	98.3
Commercial revenue	35.0		27.3
Industrial revenue	16.9		12.3
Governmental revenue	6.1		7.4
Other (a)	2.9		3.7
Total retail revenue from contracts with customers	170.8		149.0
Wholesale revenue
Wholesale revenue from contracts with customers	7.7		5.0
RTO ancillary revenue	15.1		14.8
Capacity revenue	1.8		0.9
Miscellaneous revenue	1.6		3.1
Total revenues	$	197.0	$	172.8

(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.

The balances of receivables from contracts with customers were $63.5 million and $60.8 million as of March 31, 2022 and December 31, 2021, respectively. Payment terms for all receivables from contracts with customers are typically within 30 days, though, as a result of COVID-19, AES Ohio began offering expanded payment arrangements for customers.

Note 10 – Risks and 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. 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 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. 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 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations

This report includes the combined filing of DPL and AES Ohio. AES Ohio is a wholly-owned subsidiary of DPL and is a public utility incorporated in 1911 under the laws of Ohio. On November 28, 2011, DPL became an indirectly 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 AES Ohio, respectively and together, unless the context indicates otherwise. Discussions or areas of this report that apply only to DPL or AES Ohio will clearly be noted in the section.

The condensed consolidated financial statements included in Item 1.—Financial Statements of this Form 10-Q and the discussions contained herein should be read in conjunction with our Form 10-K.

FORWARD-LOOKING INFORMATION

The following discussion may contain forward-looking statements regarding us, our business, prospects and our results of operations, including our expectations regarding the impact of the COVID-19 pandemic on our business, that are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. These statements include, but are not limited to, statements regarding management’s intents, beliefs, and current expectations and typically contain, but are not limited to, the terms “anticipate,” “potential,” “expect,” “forecast,” “target,” “will,” “would,” “intend,” “believe,” “project,” “estimate,” “plan,” and similar words. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute current expectations based on reasonable assumptions. Factors that could cause or contribute to such differences include, but are not limited to, those described in Item 1A of Part II of this quarterly report and Item 1A.—Risk Factors and Item 7.—Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 2021 Form 10-K and subsequent filings with the SEC.

Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the SEC that advise of the risks and factors that may affect our business.

OVERVIEW OF OUR BUSINESS

DPL is an indirectly wholly-owned subsidiary of AES.

DP&L, a wholly-owned subsidiary of DPL that does business as AES Ohio, is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, retail transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such transmission and distribution services to approximately 535,000 customers located in West Central Ohio. Additionally, 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.

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. For additional information, see Item 1 – Business of our Form 10-K. All of DPL's subsidiaries are wholly-owned.

As an electric public utility in Ohio, AES Ohio provides regulated transmission and distribution services to its customers as well as retail SSO electric service. 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.

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EXECUTIVE SUMMARY

DPL

Compared with the prior year, DPL's net income from continuing operations before income taxes was lower by $2.2 million, or 16%, for the three months ended March 31, 2022, primarily due to factors including, but not limited to:

	Three months ended
	March 31,
$ in millions	2022 vs. 2021
Decrease due to higher operation and maintenance expenses, excluding pass through costs with an offset in Revenues	$	(3.3)
Decrease due to higher taxes other than income taxes	(1.6)
Net increase in the volume of retail kWh sold primarily driven by favorable weather, partially offset by higher purchased power volume	3.7
Other	(1.0)
Net change in income from continuing operations before income tax	$	(2.2)

AES Ohio

Compared with the prior year, AES Ohio's net income from continuing operations before income taxes was lower by $1.9 million, or 9%, for the three months ended March 31, 2022, primarily due to factors including, but not limited to:

	Three months ended
	March 31,
$ in millions	2022 vs. 2021
Decrease due to higher operation and maintenance expenses, excluding pass through costs with an offset in Revenues	$	(2.9)
Decrease due to higher taxes other than income taxes	(1.6)
Net increase in the volume of retail kWh sold primarily driven by favorable weather, partially offset by higher purchased power volume	3.7
Other	(1.1)
Net change in income before income tax	$	(1.9)

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RESULTS OF OPERATIONS HIGHLIGHTS – DPL

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

	Three months ended
	March 31,
$ in millions	2022		2021		$ change		% change
Revenues:
Retail	$	170.8	$	149.0	$	21.8	14.6%
Wholesale	7.5		4.8		2.7		56.3%
RTO ancillary	15.1		14.9		0.2		1.3%
Capacity revenues	1.8		0.9		0.9		100.0%
Miscellaneous revenues	4.1		5.6		(1.5)		(26.8)%
Total revenues	199.3		175.2		24.1		13.8%
Operating costs and expenses
Net fuel cost	—		0.4		(0.4)		(100.0)%
Purchased power:
Purchased power	66.1		61.0		5.1		8.4%
RTO charges	24.7		10.5		14.2		135.2%
Net purchased power cost	90.8		71.5		19.3		27.0%
Operation and maintenance	40.8		34.8		6.0		17.2%
Depreciation and amortization	19.5		19.1		0.4		2.1%
Taxes other than income taxes	22.0		20.4		1.6		7.8%
Gain on disposal of business	(0.6)		—		(0.6)		—%
Total operating costs and expenses	172.5		146.2		26.3		18.0%
Operating income	26.8		29.0		(2.2)		(7.6)%
Other expense, net:
Interest expense	(15.5)		(15.6)		0.1		(0.6)%
Other income	0.4		0.5		(0.1)		(20.0)%
Total other expense, net	(15.1)		(15.1)		—		—%
Income from continuing operations before income tax (a)	$	11.7	$	13.9	$	(2.2)	(15.8)%

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

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

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regulated rates and riders including the changes to our ESP described in Note 2 - Regulatory Matters of our Form 10-K and Note 2 – Regulatory Matters of Notes to DPL's Condensed Consolidated Financial Statements.

HEATING AND COOLING DEGREE-DAYS (a)
	Three months ended
	March 31,
	2022	2021	change	% change
Actual
Heating degree-days	2,756	2,677	79	3.0	%
Cooling degree-days	—	—	—	—	%
30-year average (b)
Heating degree-days	2,836	2,833
Cooling degree-days	2	2

(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)
	Three months ended
	March 31,
	2022	2021	change	% change
Retail electric sales (b)
Residential	1,571	1,530	41	2.7%
Commercial	867	834	33	4.0%
Industrial	894	866	28	3.2%
Governmental	284	279	5	1.8%
Other	5	5	—	—%
Total retail electric sales	3,621	3,514	107	3.0%
Wholesale electric sales (c)	139	146	(7)	(4.8)%
Total electric sales	3,760	3,660	100	2.7%
Billed electric customers (end of period)	535,112	531,669	3,443	0.6%

(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 1,222 kWh and 1,070 kWh for the three months ended March 31, 2022 and 2021, respectively.

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

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The following chart shows the percentage changes in weather-normalized and actual retail electric sales volumes by customer class for the three months ended March 31, 2022 compared to the same period in the prior year:

During the three months ended March 31, 2022, Revenues increased $24.1 million to $199.3 million compared to $175.2 million in the same period of the prior year. This change was primarily the result of changes in the components of revenue shown below:

	Three months ended
	March 31,
$ in millions	2022 vs. 2021
Retail
Rate
Increase due to the TCRR Rider	$	15.0
Decrease in Competitive Bid Revenue Rate Rider (Standard Offer Rate)	(1.0)
Other	(2.7)
Net change in retail rate	11.3
Volume
Net increase in demand primarily due to favorable weather compared to the same period in the prior year.	11.3
Other miscellaneous	(0.8)
Total retail change	21.8
Wholesale
Increase primarily due to higher rates at OVEC	2.7
RTO ancillary and capacity revenues
Increase primarily due to higher transmission rates as of January 1st, 2022	1.1
Other
Miscellaneous revenues	(1.5)
Net change in Revenues	$	24.1

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DPL – Net Purchased Power

During the three months ended March 31, 2022, Net purchased power increased $19.3 million to $90.8 million compared to $71.5 million in the same period of the prior year. This change was primarily the result of changes in the cost of purchased power shown below.

	Three months ended
	March 31,
$ in millions	2022 vs. 2021
Net purchased power
Purchased power
Rate
Decrease primarily due to pricing in the competitive bid process	$	(2.5)
Volume
Increase due to higher retail load served primarily driven by weather	7.6
Total purchased power change	5.1
RTO charges
Increase primarily due to higher TCRR rates	14.2
Net change in purchased power	$	19.3

DPL – Operation and Maintenance

During the three months ended March 31, 2022, Operation and maintenance expense increased $6.0 million compared to the same period in the prior year. The main drivers of this change are as follows:

	Three months ended
	March 31,
$ in millions	2022 vs. 2021
Increase in uncollectible expenses for the low-income payment program, which is funded by the USF Revenue Rate Rider (a)	$	1.5
Increase in TCRR costs (a)	1.2
Increase in economic development costs	0.8
Increase in charges from Service Company	0.6
Increase in Smart Grid stipulation amortization	0.5
Other, net	1.4
Net change in operation and maintenance expense	$	6.0

(a)    There is a corresponding offset in Revenues associated with these costs.

DPL – Taxes Other Than Income Taxes

During the three months ended March 31, 2022, Taxes other than income taxes increased $1.6 million compared to the same period in the prior year. The increase was primarily the result of higher property taxes due to higher property, plant and equipment balances in the current year.

DPL – Income Tax Benefit From Continuing Operations

Income tax benefit was $3.7 million during the three months ended March 31, 2022 compared to a benefit of $0.3 million during the three months ended March 31, 2021. The increase was primarily due to a lower estimated effective tax rate in the current year versus the prior year as a result of the reversal of excess deferred items as a percentage of pre-tax book income.

See Note 6 – Income Taxes in the Notes to DPL's Condensed 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

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measure considered in DPL’s internal evaluation of the financial performance of its segment. The Utility segment is discussed further below.

Utility Segment

The Utility segment is comprised of AES Ohio’s electric transmission and distribution businesses, which distribute electricity to residential, commercial, industrial and governmental customers. AES Ohio distributes electricity to approximately 535,000 retail customers 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.

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 on DPL's long-term debt as well as adjustments related to purchase accounting from the Merger. The accounting policies of the reportable segment are the same as those described in Note 1 – Overview and Summary of Significant Accounting Policies of our 10-K. 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 Part I, Item 1, Note 9 – Business Segments of Notes to DPL's Condensed 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:

	Three months ended
	March 31,
$ in millions	2022		2021
Utility	$	19.6	$	21.5
Other	(7.9)		(7.6)
Income from continuing operations before income tax (a)	$	11.7	$	13.9

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

RESULTS 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 I, Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations (RESULTS OF OPERATIONS HIGHLIGHTS – AES Ohio) of this Form 10-Q.

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RESULTS OF OPERATIONS HIGHLIGHTS – AES Ohio

	Three months ended
	March 31,
$ in millions	2022		2021		$ change		% change
Revenues:
Retail	$	170.8	$	149.0	$	21.8	14.6	%
Wholesale	7.7		5.0		2.7		54.0	%
RTO ancillary	15.1		14.8		0.3		2.0	%
Capacity revenues	1.8		0.9		0.9		100.0	%
Miscellaneous revenues	1.6		3.1		(1.5)		(48.4)	%
Total revenues	197.0		172.8		24.2		14.0	%
Operating costs and expenses
Net fuel cost	—		0.4		(0.4)		(100.0)	%
Purchased power:
Purchased power	66.1		61.0		5.1		8.4	%
RTO charges	24.4		10.2		14.2		139.2	%
Net purchased power cost	90.5		71.2		19.3		27.1	%
Operation and maintenance	40.2		34.6		5.6		16.2	%
Depreciation and amortization	19.2		18.7		0.5		2.7	%
Taxes other than income taxes	21.9		20.3		1.6		7.9	%
Gain on disposal of business	(0.6)		—		(0.6)		—	%
Total operating costs and expenses	171.2		145.2		26.0		17.9	%
Operating income	25.8		27.6		(1.8)		(6.5)	%
Other expense, net:
Interest expense	(5.9)		(6.0)		0.1		(1.7)	%
Other expense	(0.3)		(0.1)		(0.2)		200.0	%
Total other expense, net	(6.2)		(6.1)		(0.1)		1.6	%
Income before income tax (a)	$	19.6	$	21.5	$	(1.9)	(8.8)	%

(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 used by management to make decisions regarding our financial performance.

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 our Form 10-K and Note 2 – Regulatory Matters of Notes to AES Ohio's Condensed Financial Statements.

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During the three months ended March 31, 2022, Revenues increased $24.2 million to $197.0 million compared to $172.8 million in the same period of the prior year. This change was primarily the result of changes in the components of revenue shown below:

	Three months ended
	March 31,
$ in millions	2022 vs. 2021
Retail
Rate
Increase due to the TCRR Rider	$	15.0
Decrease in Competitive Bid Revenue Rate Rider (Standard Offer Rate)	(1.0)
Other	(2.7)
Net change in retail rate	11.3
Volume
Net increase in demand primarily due to favorable weather compared to the same period in the prior year.	11.3
Other miscellaneous	(0.8)
Total retail change	21.8
Wholesale
Increase primarily due to higher rates at OVEC	2.7
RTO ancillary and capacity revenues
Increase primarily due to higher transmission rates as of January 1st, 2022	1.2
Other
Miscellaneous revenues	(1.5)
Net change in revenues	$	24.2

AES Ohio – Net Purchased Power

During the three months ended March 31, 2022, net purchased power increased $19.3 million to $90.5 million compared to $71.2 million in the same period of the prior year. This change was primarily the result of changes in the cost of purchased power shown below.

	Three months ended
	March 31,
$ in millions	2022 vs. 2021
Net purchased power
Purchased power
Rate
Decrease primarily due to pricing in the competitive bid process	$	(2.5)
Volume
Increase due to higher retail load served primarily driven by weather	7.6
Total purchased power change	5.1
RTO charges
Increase primarily due to higher TCRR rates	14.2
Net change in purchased power	$	19.3

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AES Ohio – Operation and Maintenance

During the three months ended March 31, 2022, Operation and Maintenance expense increased $5.6 million compared to the same period in the prior year. The main drivers of this change are as follows:

	Three months ended
	March 31,
$ in millions	2022 vs. 2021
Increase in uncollectible expenses for the low-income payment program, which is funded by the USF Revenue Rate Rider (a)	$	1.5
Increase in TCRR costs (a)	1.2
Increase in economic development costs	0.8
Increase in charges from Service Company	0.6
Increase in Smart Grid stipulation amortization	0.5
Other, net	1.0
Net change in operation and maintenance expense	$	5.6

(a)    There is a corresponding offset in Revenues associated with these costs.

AES Ohio – Taxes Other Than Income Taxes

During the three months ended March 31, 2022, Taxes other than income taxes increased $1.6 million compared to the same period in the prior year. The increase was primarily the result of higher property taxes due to higher property, plant and equipment balances in the current year.

AES Ohio – Income Tax Expense

Income tax expense was $2.7 million during the three months ended March 31, 2022 compared to $3.2 million during the same period in the prior year. The change was primarily due to a decrease in income before tax in the current year.

See Note 5 – Income Taxes of Notes to AES Ohio's Condensed Financial Statements for further discussion.

KEY TRENDS AND UNCERTAINTIES

During 2022 and beyond, we expect our financial results will be primarily impacted by retail demand and weather. As discussed in Note 2 – Regulatory Matters of Notes to DPL's Condensed Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Condensed 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 until its pending distribution rates are in effect. 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 regulation; and

•the timely recovery of transmission and distribution expenditures.

Operational

COVID-19 Pandemic - The COVID-19 pandemic has impacted global economic activity, including electricity and energy consumption, and caused significant volatility in financial markets. The following discussion highlights our assessment of the impacts of the pandemic on our current financial and operating status, and our financial and operational outlook based on information known as of this filing. Also see "Item 1A. Risk Factors" of our Form 10-K.

Throughout the COVID-19 pandemic we have conducted our essential operations without significant disruption. 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 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.

The COVID-19 pandemic primarily impacted our retail sales demand. Retail sales demand decreased in 2020 mostly from commercial and industrial customers but has recovered. While we have continued to experience some

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COVID-19 impacts into 2022, such impacts have not been material nor do we expect they will be material, particularly if reduced 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.

We have not had nor do we expect to have a significant impact to our access to capital or our liquidity position as a result of the COVID-19 pandemic. We also have not experienced any material credit-related impacts due to the COVID-19 pandemic.

The Company continues to monitor the potential impact of the COVID-19 pandemic on our financial results and operations.

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 - 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 I, Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations – Capital Resources and Liquidity of this Form 10-Q.

Macroeconomic and Political

Reference Rate Reform - As discussed in Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations, of our Form 10-K, in July 2017, the UK Financial Conduct Authority announced that it intended 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. The ICE Benchmark Association determined that it would cease publication of one-week and two-month LIBOR rates by December 31, 2021, and would cease publication of the one-month, three-month, six-month, and 12-month USD LIBOR rates by June 30, 2023. We maintain financial instruments that use LIBOR as an interest rate benchmark and will continue to engage with counterparties to make this transition.

U.S. Income Tax - The macroeconomic and political environments in the U.S. have changed during 2021 and 2022. This could result in significant impacts to tax law. For example, in the first quarter of 2022, the Biden Administration released its fiscal year 2023 budget, which includes proposed U.S. corporate tax reform proposals that would increase the U.S. corporate income tax rate. Additional details regarding these potential changes in law are expected to be made available later this year.

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. In addition, the standard service offer auction process has reflected current macroeconomic conditions in terms of pricing.

Regulatory

DPL’s, AES Ohio’s and our other subsidiaries’ facilities and operations are subject to a wide range of regulations and laws by federal, state and local authorities. As well as imposing continuing compliance obligations, these laws 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 these facilities and operations in an effort to comply, or to determine compliance, with such regulations. We record liabilities for losses that are probable and can be reasonably estimated. In addition to matters discussed or updated herein, our 2021 Form 10-K previously filed with the SEC during 2022 describes other regulatory matters which have not materially changed since that filing. See Part I, Item 1, Note 2 – Regulatory Matters of Notes to DPL's Condensed Consolidated Financial Statements and Part I, Item 1, Note 2 – Regulatory Matters of Notes to AES Ohio's Condensed Financial Statements for further information regarding regulatory matters.

Distribution Rate Case - On November 30, 2020, AES Ohio filed a new distribution rate case with the PUCO. Certain parties that have intervened in the distribution rate case have argued that ESP 1 incorporates a distribution rate freeze. We are unable to predict the outcome of the distribution rate case, but if the PUCO were to impose a

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rate freeze that precludes AES Ohio’s ability to implement a distribution rate increase during ESP 1, it could have a material adverse effect on our results of operations, financial condition and cash flows.

Environmental

In addition to imposing continuing compliance obligations, federal, state and local environmental laws 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 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 several 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 and cash flows. We refer to the discussion in “Item 1. Business - Environmental Matters” in our 2021 Form 10-K for a discussion of certain recent developments in environmental laws and regulations.

We have several pending environmental matters associated with our previously-owned stations. Some of these matters could have a material adverse effect on our results of operations, financial condition and cash flows.

As a result of DPL’s retirement and subsequent sale of its Stuart and Killen generating stations, the sale of its ownership interest in the Miami Fort and Zimmer generating stations and the retirement and subsequent sale of Conesville, the following environmental matters, regulations and requirements are now not expected to have a material impact on DPL:

•MATS and any associated regulatory or judicial processes;

•NAAQS; and

•potential Clean Air Act Section 111(d) regulations for greenhouse gases from existing electric generating units.

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. On April 8, 2022, petitions for review were filed challenging these EPA actions. The petitions are consolidated in Electric Energy, Inc. v. EPA. It is too early to determine the direct or indirect impact of these letters or any determinations that may be made.

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CAPITAL RESOURCES AND LIQUIDITY

DPL and AES Ohio had unrestricted cash and cash equivalents of $32.1 million and $17.9 million, respectively, as of March 31, 2022. At that date, neither DPL nor AES Ohio had short-term investments. DPL and AES Ohio had aggregate principal amounts of long-term debt outstanding of $1,412.7 million and $582.1 million, respectively.

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.

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 could have a material adverse effect on our results of operations, financial condition and cash flows. In addition, changes in the timing of tariff increases or delays in regulatory determinations could affect the cash flows and results of operations of our businesses. On May 4, 2022, AES Ohio received approvals from the PUCO to re-issue the $140.0 million of tax-exempt Ohio Air Quality Development Authority (OAQDA) Collateralized Pollution Control Revenue Refunding Bonds currently held by AES Ohio.

Our discussion of DPL’s financial condition, liquidity and capital requirements include the results of its principal subsidiary AES Ohio.

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

The following table summarizes the cash flows of DPL:

	Three months ended March 31,
$ in millions	2022		2021
Net cash provided by / (used in) operating activities	$	(0.2)	$	5.5
Net cash used in investing activities	(69.3)		(56.8)
Net cash provided by financing activities	75.0		60.0
Net change	5.5		8.7
Balance at beginning of period	26.7		25.5
Cash, cash equivalents, and restricted cash at end of period	$	32.2	$	34.2

DPL – Net cash from operating activities is summarized below:

	Three months ended March 31,				$ change
$ in millions	2022		2021		2022 vs. 2021
Net income	$	15.4	$	13.6	$	1.8
Depreciation and amortization	19.5		19.1		0.4
Deferred income taxes	(0.4)		3.5		(3.9)
Gain on disposal of business	(0.6)		—		(0.6)
Net income, adjusted for non-cash items	33.9		36.2		(2.3)
Net change in operating assets and liabilities	(34.1)		(30.7)		(3.4)
Net cash provided by (used in) operating activities	$	(0.2)	$	5.5	$	(5.7)

The net change in operating assets and liabilities during the three months ended March 31, 2022, compared to the three months ended March 31, 2021 was driven by the following:

$ in millions	$ Change
Decrease from accounts payable primarily due to timing of payments	$	(14.1)
Decrease from accounts receivable primarily due to timing of collections	(8.3)
Increase from deferred regulatory costs, net primarily due to higher TCRR rates in the current year	15.2
Other	3.8
Net decrease in cash from changes in operating assets and liabilities	$	(3.4)

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DPL – Net cash from investing activities

Net cash used in investing activities increased $12.5 million during the three months ended March 31, 2022, compared to the three months ended March 31, 2021, primarily driven by the following:

$ in millions	$ Change
Higher capital expenditures due to increased spending on T&D projects	$	(12.5)
Higher cost of removal payments	(0.5)
Other	0.5
Net change in investing activities	$	(12.5)

DPL – Net cash from financing activities

Net cash provided by financing activities increased $15.0 million during the three months ended March 31, 2022, compared to the three months ended March 31, 2021, primarily driven by the following:

$ in millions	$ Change
Increase in net borrowings from revolving credit facilities	$	15.0
Net change in financing activities	$	15.0

Cash Flow Analysis - AES Ohio

The following table summarizes the cash flows of AES Ohio:

	Three months ended March 31,
$ in millions	2022		2021
Net cash provided by operating activities	$	6.2	$	11.3
Net cash used in investing activities	(68.7)		(56.2)
Net cash provided by financing activities	66.0		50.0
Net change	3.5		5.1
Balance at beginning of period	14.5		11.8
Cash, cash equivalents, and restricted cash at end of period	$	18.0	$	16.9

AES Ohio – Net cash from operating activities is summarized below:

	Three months ended March 31,				$ change
$ in millions	2022		2021		2022 vs. 2021
Net income	$	16.9	$	18.3	$	(1.4)
Depreciation and amortization	19.2		18.7		0.5
Deferred income taxes	2.0		3.2		(1.2)
Gain on disposal of business	(0.6)		—		(0.6)
Net income, adjusted for non-cash items	37.5		40.2		(2.7)
Net change in operating assets and liabilities	(31.3)		(28.9)		(2.4)
Net cash provided by operating activities	$	6.2	$	11.3	$	(5.1)

The net change in operating assets and liabilities during the three months ended March 31, 2022, compared to the three months ended March 31, 2021, was driven by the following:

$ in millions	$ Change
Decrease from accounts payable primarily due to timing of payments	(12.4)
Decrease from accounts receivable primarily due to timing of collections	(7.6)
Increase from deferred regulatory costs, net primarily due to higher TCRR rates in the current year	15.2
Other	2.4
Net decrease in cash from changes in operating assets and liabilities	$	(2.4)

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AES Ohio – Net cash from investing activities

Net cash used in investing activities increased $12.5 million during the three months ended March 31, 2022, compared to the three months ended March 31, 2021, primarily driven by the following:

$ in millions	$ Change
Higher capital expenditures due to increased spending on T&D projects	$	(12.6)
Higher cost of removal payments	(0.5)
Other	0.6
Net change in investing activities	$	(12.5)

AES Ohio – Net cash from financing activities

Net cash provided by financing activities increased $16.0 million during the three months ended March 31, 2022, compared to the three months ended March 31, 2021, primarily driven by the following:

$ in millions	$ Change
Increase in net borrowings from revolving credit facilities	$	15.0
Lower return of capital payments to DPL	1.0
Net change in financing activities	$	16.0

LIQUIDITY

We expect our existing sources of liquidity to remain sufficient to meet our anticipated operating needs. Our business is capital intensive, requiring significant resources to fund operating expenses, construction expenditures, scheduled debt maturities and carrying costs, taxes and dividend payments. For 2022 and subsequent years, we expect to satisfy these requirements with cash from operations, funds from debt financing and/or equity capital contributions as our internal liquidity needs and market conditions warrant. We also expect that the borrowing capacity under bank credit facilities will continue to be available to manage working capital requirements during those periods.

At March 31, 2022, AES Ohio and DPL have access to the following revolving credit facilities:

$ in millions	Type	Maturity	Commitment		Amounts available as of March 31, 2022
AES Ohio	Revolving	June 2024	$	175.0	$	100.0
DPL	Revolving	June 2023	95.0		30.0
			$	270.0	$	130.0

The AES Ohio Credit Agreement is an unsecured revolving credit facility with a syndicated bank group with a borrowing limit of $175.0 million and a $75.0 million letter of credit sublimit, as well as a feature that provides AES Ohio the ability to increase the size of the facility by an additional $100.0 million. This facility expires in June 2024. As of March 31, 2022, there were $75.0 million in borrowings under the facility, with the remaining $100.0 million available to AES Ohio.

The DPL Credit Agreement is a secured revolving credit facility with a syndicated bank group with a borrowing limit of $95.0 million, with a $75.0 million letter of credit sublimit and a feature that provides DPL the ability to increase the size of the facility by an additional $50.0 million. This facility is secured by a pledge of common stock that DPL owns in AES Ohio. The facility expires in June 2023. As of March 31, 2022, there were no letter of credits outstanding and $65.0 million in borrowings, with the remaining $30.0 million available to DPL.

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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 up to $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 (a)	$	88.0	$	106.0	$	108.0	$	302.0
Transmission-related additions and improvements	78.0		69.0		95.0		242.0
Smart Grid 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

(a)    AES Ohio's investments in distribution-related additions, improvements and extensions are dependent on favorable regulatory outcomes.

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 additional information in Note 2 – Regulatory Matters of Notes to DPL's Condensed Consolidated Financial Statements and Note 2 – Regulatory Matters of Notes to AES Ohio's Condensed Financial Statements.

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 $76.0 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.

Long-term debt covenants

For information regarding our long-term debt covenants, see Part I, Item 1, Note 5 – Long-term Debt of Notes to DPL's Condensed Consolidated Financial Statements and Part I, Item 1, Note 4 – Long-term Debt of Notes to AES Ohio's Condensed Financial Statements.

Debt and Credit Ratings

The following table presents, as of the filing of this report, the debt ratings and outlook for DPL and AES Ohio.

	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)	Negative

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

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

The following table presents, as of the filing of this report, the credit ratings (issuer/corporate rating) and outlook for DPL and AES Ohio.

	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+	Negative

If the rating agencies were to reduce our debt or credit ratings, our borrowing costs may increase, our potential pool of investors and funding resources may be reduced, and we may be required to post additional collateral under selected contracts. These events could have an adverse effect on our results of operations, financial condition and cash flows. In addition, any such reduction in our debt or credit ratings may adversely affect the trading price of our outstanding debt securities.

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Off-Balance Sheet Arrangements

For information on guarantees, commercial commitments, and contractual obligations, see Part I, Item 1, Note 8 – Contractual Obligations, Commercial Commitments and Contingencies of Notes to DPL's Condensed Consolidated Financial Statements and Part I, Item 1, Note 8 – Contractual Obligations, Commercial Commitments and Contingencies of Notes to AES Ohio's Condensed Financial Statements.

Critical Accounting Policies and Estimates

DPL’s Condensed Consolidated Financial Statements and AES Ohio’s Condensed 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.

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 insurance and claims liabilities; the valuation of allowances for credit losses and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; assets and liabilities related to employee benefits and intangible assets. Refer to our Form 10-K for the year ended December 31, 2021 for a complete listing of our critical accounting policies and estimates. We have reviewed and determined that these remain as critical accounting policies as of and for the three months ended March 31, 2022.

Item 3 – Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes to our quantitative and qualitative disclosure about market risk as previously disclosed in our Form 10-K.

Item 4 – Controls and Procedures

Disclosure Controls and Procedures

DPL and AES Ohio, under the supervision and with the participation of its management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), evaluated the effectiveness of our “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) under the Securities Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of March 31, 2022, to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and include controls and procedures designed to ensure that information required to be disclosed by us in such reports is accumulated and communicated to our management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Controls over Financial Reporting — There were no changes that occurred during the fiscal quarter covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II – Other Information

Item 1 – 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 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 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.

Our Form 10-K for the fiscal year ended December 31, 2021, and the Notes to DPL’s Consolidated Financial Statements and AES Ohio’s Financial Statements included therein, contain descriptions of certain legal proceedings in which we are or were involved. The information in or incorporated by reference into this Item 1 to Part II is limited to certain recent developments concerning our legal proceedings and new legal proceedings, since the filing of such Form 10-K, and should be read in conjunction with such Form 10-K.

The following information is incorporated by reference into this Item: information about the legal proceedings contained in Part I, Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations and Part I, Item 1, Note 2 – Regulatory Matters of Notes to DPL's Condensed Consolidated Financial Statements and Part I, Item 1, Note 2 – Regulatory Matters of Notes to AES Ohio's Condensed Financial Statements of this Quarterly Report on Form 10-Q.

Item 1A – Risk Factors

A listing of the risk factors that we consider to be the most significant to a decision to invest in our securities is provided in our Form 10-K. Except as described below, there has been no material change in our risk factors as previously disclosed in our Form 10-K. If any of the events described in our risk factors occur, it could have a material adverse effect on our results of operations, financial condition and cash flows.

The risks and uncertainties described in our risk factors are not the only ones we face. In addition, 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. Our risk factors should be read in conjunction with the other detailed information concerning DPL and AES Ohio set forth in the Notes to DPL’s and AES Ohio’s Financial Statements found in Part I, Item 1, and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections included in our filings.

As part of the filing of this Quarterly Report Form on Form 10-Q, we are further revising, clarifying and

supplementing a risk factor from our Form 10-K. The risk factor below should be considered together with the other risk factors described in our Form 10-K:

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, and there has been an increased focus on the U.S. energy grid that is believed to be related to the Russia/Ukraine conflict. 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

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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.

Item 2 – Unregistered Sale of Equity Securities and Use of Proceeds

None

Item 3 – Defaults Upon Senior Securities

None

Item 4 – Mine Safety Disclosures

Not applicable.

Item 5 – Other Information

None

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Item 6 – Exhibits

DPL	DP&L	Exhibit Number	Exhibit	Location
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	Filed herewith as Exhibit 101.INS
X	X	101.SCH	XBRL Taxonomy Extension Schema	Filed herewith as Exhibit 101.SCH
X	X	101.CAL	XBRL Taxonomy Extension Calculation Linkbase	Filed herewith as Exhibit 101.CAL
X	X	101.DEF	XBRL Taxonomy Extension Definition Linkbase	Filed herewith as Exhibit 101.DEF
X	X	101.LAB	XBRL Taxonomy Extension Label Linkbase	Filed herewith as Exhibit 101.LAB
X	X	101.PRE	XBRL Taxonomy Extension Presentation Linkbase	Filed 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.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, DPL Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		DPL Inc.
		(Registrant)
Date:	May 5, 2022	/s/ Ahmed Pasha
		Ahmed Pasha
		Vice President and Chief Financial Officer
		(principal financial officer)
	May 5, 2022	/s/ Jon S. Byers
		Jon S. Byers
		Controller
		(principal accounting officer)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, The Dayton Power and Light Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		The Dayton Power and Light Company
		(Registrant)
Date:	May 5, 2022	/s/ Ahmed Pasha
		Ahmed Pasha
		Vice President and Chief Financial Officer
		(principal financial officer)
	May 5, 2022	/s/ Jon S. Byers
		Jon S. Byers
		Controller
		(principal accounting officer)

62

EX-31.A

Exhibit 31(a)

CERTIFICATIONS

I, Kristina Lund, certify that:

1.I have reviewed this quarterly report on Form 10-Q 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: May 5, 2022

/s/ Kristina Lund

Kristina Lund

President and Chief Executive Officer

EX-31.B

Exhibit 31(b)

CERTIFICATIONS

I, Ahmed Pasha, certify that:

1.I have reviewed this quarterly report on Form 10-Q 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: May 5, 2022

/s/ Ahmed Pasha

Ahmed Pasha

Vice President and Chief Financial Officer

EX-31.C

 Exhibit 31(c)

CERTIFICATIONS

I, Kristina Lund, certify that:

1.I have reviewed this quarterly report on Form 10-Q 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: May 5, 2022

/s/ Kristina Lund

Kristina Lund

President and Chief Executive Officer

EX-31.D

Exhibit 31(d)

CERTIFICATIONS

I, Ahmed Pasha, certify that:

1.I have reviewed this quarterly report on Form 10-Q 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: May 5, 2022

/s/ Ahmed Pasha

Ahmed Pasha

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 Quarterly Report on Form 10-Q for the period ended March 31, 2022, 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 Issuer 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: May 5, 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 Quarterly Report on Form 10-Q for the period ended March 31, 2022, 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 Issuer and furnished to the Securities and Exchange Commission or its staff upon request.

Signed:

/s/ Ahmed Pasha

Ahmed Pasha

Vice President and Chief Financial Officer

Date: May 5, 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 Quarterly Report on Form 10-Q for the period ended March 31, 2022, 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 Issuer 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: May 5, 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 Quarterly Report on Form 10-Q for the period ended March 31, 2022, 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 Issuer and furnished to the Securities and Exchange Commission or its staff upon request.

Signed:

/s/ Ahmed Pasha

Ahmed Pasha

Vice President and Chief Financial Officer

Date: May 5, 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 Statement	3 Months Ended
	Mar. 31, 2022 shares
Entity Information [Line Items]
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000787250
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Current Reporting Status	No
Document Type	10-Q
Document Quarterly Report	true
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
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
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding	1
Subsidiaries [Member]
Entity Information [Line Items]
Entity Central Index Key	0000027430
Amendment Flag	false
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
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
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding	41,172,173

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues	$ 199.3	$ 175.2
Operating costs and expenses
Net fuel cost	0.0	0.4
Utilities Operating Expense, Purchased Power	90.8	71.5
Operating expenses:
Operation and maintenance	40.8	34.8
Depreciation and amortization	19.5	19.1
Taxes other than income taxes	22.0	20.4
Gain (Loss) on Sale of Assets and Asset Impairment Charges, excluding Discontinued Operations	(0.6)	0.0
Costs and Expenses	172.5	146.2
Operating income	26.8	29.0
Other expense, net:
Interest expense	(15.5)	(15.6)
Other income	0.4	0.5
Total other expense, net	(15.1)	(15.1)
Income from continuing operations before income tax	11.7	13.9
Income tax benefit from continuing operations	(3.7)	(0.3)
Net income from continuing operations	15.4	14.2
Loss from discontinued operations before income tax	0.0	(0.8)
Income tax benefit from discontinued operations	0.0	(0.2)
Net loss from discontinued operations	0.0	(0.6)
Net income	15.4	13.6
Subsidiaries [Member]
Revenues	197.0	172.8
Operating costs and expenses
Net fuel cost	0.0	0.4
Utilities Operating Expense, Purchased Power	90.5	71.2
Operating expenses:
Operation and maintenance	40.2	34.6
Depreciation and amortization	19.2	18.7
Taxes other than income taxes	21.9	20.3
Gain (Loss) on Sale of Assets and Asset Impairment Charges, excluding Discontinued Operations	(0.6)	0.0
Costs and Expenses	171.2	145.2
Operating income	25.8	27.6
Other expense, net:
Interest expense	(5.9)	(6.0)
Other income	(0.3)	(0.1)
Total other expense, net	(6.2)	(6.1)
Income from continuing operations before income tax	19.6	21.5
Income tax benefit from continuing operations	2.7	3.2
Net income	$ 16.9	$ 18.3

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net income	$ 15.4	$ 13.6
Derivative activity:
Reclassification of earnings, net of income tax	(0.1)	(0.2)
Total change in fair value of derivatives	(0.1)	(0.2)
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax	0.1	0.1
Pension and postretirement activity:
Reclassification to earnings, net of income tax	0.2	0.5
Total change in unfunded pension obligation	0.2	0.5
Other comprehensive income	0.1	0.3
Net comprehensive income	15.5	13.9
Income tax (expense)/benefit on reclassification of earnings related to derivative activity	0.1	0.0
Subsidiaries [Member]
Net income	16.9	18.3
Pension and postretirement activity:
Reclassification to earnings, net of income tax	0.7	1.0
Total change in unfunded pension obligation	0.7	1.0
Other comprehensive income	0.7	1.0
Net comprehensive income	17.6	19.3
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity	$ (0.2)	$ (0.3)

XML

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income tax (expense)/benefit on reclassification of earnings related to derivative activity	$ 0.1	$ 0.0
Subsidiaries [Member]
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity	$ (0.2)	$ (0.3)

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 32.1	$ 26.6
Accounts receivable, net	73.9	71.5
Accounts Receivable, Allowance for Credit Loss, Current	0.2	0.3
Inventories	17.4	14.4
Taxes applicable to subsequent years	60.9	83.1
Regulatory assets, current	19.4	24.5
Income Taxes Receivable, Current	6.0	2.7
Prepayments and other current assets	10.5	7.6
Total current assets	220.2	230.4
Property, plant & equipment:
Property, plant & equipment	2,032.6	1,990.4
Less: Accumulated depreciation and amortization	(475.3)	(464.0)
Property, plant and equipment, net of depreciation	1,557.3	1,526.4
Construction work in process	172.6	174.4
Total net property, plant & equipment	1,729.9	1,700.8
Other non-current assets:
Regulatory assets, non-current	174.3	176.8
Intangible assets, net of amortization	37.3	33.7
Other non-current assets	28.0	30.1
Total other non-current assets	239.6	240.6
Total assets	2,189.7	2,171.8
Current liabilities:
Current portion of long-term debt	140.2	65.2
Accounts payable	76.4	111.0
Accrued taxes	87.7	85.1
Accrued interest	18.3	15.3
Security deposits	20.1	15.0
Regulatory liabilities, current	19.9	14.6
Other current liabilities	14.8	17.1
Total current liabilities	377.4	323.3
Non-current liabilities:
Long-term debt	1,395.8	1,395.3
Deferred taxes	189.6	187.9
Taxes payable	41.0	83.6
Regulatory liabilities, non-current	226.6	229.3
Pension, retiree and other benefits	54.3	62.3
Other deferred credits	10.9	11.5
Total non-current liabilities	1,918.2	1,969.9
Commitments and contingencies
Common shareholder's equity:
Common stock	0.0	0.0
Other paid-in capital	2,601.3	2,601.3
Accumulated other comprehensive income	(4.7)	(4.8)
Retained Earnings (Accumulated Deficit)	(2,702.5)	(2,717.9)
Total common shareholder's equity	(105.9)	(121.4)
Total liabilities and shareholder's equity	$ 2,189.7	$ 2,171.8
Common Stock, Shares Authorized	1,500	1,500
Common stock, shares issued	1	1
Common Stock [Member]
Common shareholder's equity:
Total common shareholder's equity	$ 0.0	$ 0.0
Other Additional Capital [Member]
Common shareholder's equity:
Total common shareholder's equity	2,601.3	2,601.3
Subsidiaries [Member]
Current assets:
Cash and cash equivalents	17.9	14.4
Accounts receivable, net	73.6	71.9
Accounts Receivable, Allowance for Credit Loss, Current	0.2	0.3
Inventories	17.4	14.4
Taxes applicable to subsequent years	60.8	83.0
Regulatory assets, current	19.4	24.5
Income Taxes Receivable, Current	27.3	28.1
Prepayments and other current assets	12.8	8.0
Total current assets	229.2	244.3
Property, plant & equipment:
Property, plant & equipment	2,600.4	2,571.3
Less: Accumulated depreciation and amortization	(1,060.7)	(1,062.6)
Property, plant and equipment, net of depreciation	1,539.7	1,508.7
Construction work in process	168.4	170.5
Total net property, plant & equipment	1,708.1	1,679.2
Other non-current assets:
Regulatory assets, non-current	174.3	176.8
Intangible assets, net of amortization	36.0	32.4
Other non-current assets	28.1	29.9
Total other non-current assets	238.4	239.1
Total assets	2,175.7	2,162.6
Current liabilities:
Current portion of long-term debt	75.2	0.2
Accounts payable	75.8	111.5
Accrued taxes	88.0	85.1
Accrued interest	5.9	2.6
Security deposits	19.9	14.9
Regulatory liabilities, current	19.9	14.6
Other current liabilities	11.3	13.0
Total current liabilities	296.0	241.9
Non-current liabilities:
Long-term debt	574.1	574.1
Deferred taxes	187.6	183.4
Taxes payable	40.9	83.5
Regulatory liabilities, non-current	226.6	229.3
Pension, retiree and other benefits	54.3	62.3
Other deferred credits	5.7	5.9
Total non-current liabilities	1,089.2	1,138.5
Commitments and contingencies
Par value common shares (in USD per share)	$ 0.01	$ 0.01
Common shareholder's equity:
Common stock	$ 0.4	$ 0.4
Other paid-in capital	813.5	822.5
Accumulated other comprehensive income	(31.1)	(31.8)
Retained Earnings (Accumulated Deficit)	7.7	(8.9)
Total common shareholder's equity	790.5	782.2
Total liabilities and shareholder's equity	$ 2,175.7	$ 2,162.6
Common Stock, Shares, Outstanding	41,172,173	41,172,173
Common Stock, Shares Authorized	50,000,000	50,000,000
Subsidiaries [Member] | Common Stock [Member]
Common shareholder's equity:
Total common shareholder's equity	$ 0.4
Subsidiaries [Member] | Other Additional Capital [Member]
Common shareholder's equity:
Total common shareholder's equity	$ 813.5

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Common Stock, Shares Authorized	1,500	1,500
Common stock, shares issued	1	1
Subsidiaries [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

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 15.4	$ 13.6
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	19.5	19.1
Deferred income taxes	(0.4)	3.5
Gain (Loss) on Disposition of Business, Including Discontinued Operation	(0.6)	0.0
Changes in certain assets and liabilities:
Accounts receivable, net	(2.3)	6.0
Inventories	(3.0)	(0.3)
Taxes applicable to subsequent years	22.3	20.0
Deferred regulatory costs, net	10.4	(4.8)
Accounts payable	(15.7)	(1.6)
Accrued taxes payable / receivable	(43.3)	(40.2)
Accrued interest	3.0	2.4
Increase (Decrease) in Obligation, Pension and Other Postretirement Benefits	(8.0)	(10.5)
Other	2.5	(1.7)
Net Cash Provided by (Used in) Operating Activities	(0.2)	5.5
Cash flows from investing activities:
Capital expenditures	(64.4)	(51.9)
Payments for (Proceeds from) Removal Costs	(5.0)	(4.5)
Other investing activities, net	0.1	(0.4)
Net cash used in investing activities	(69.3)	(56.8)
Cash flows from financing activities:
Proceeds from Lines of Credit	95.0	60.0
Repayments of Lines of Credit	(20.0)	0.0
Net cash provided by financing activities	75.0	60.0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	5.5	8.7
Cash, cash equivalents, and restricted cash:
Restricted Cash and Cash Equivalents	32.2	34.2
Non-cash financing and investing activities:
Accruals for capital expenditures	23.7	16.3
Supplemental cash flow information:
Interest paid, net of amounts capitalized	11.3	12.9
Subsidiaries [Member]
Cash flows from operating activities:
Net income	16.9	18.3
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	19.2	18.7
Deferred income taxes	2.0	3.2
Gain (Loss) on Disposition of Business, Including Discontinued Operation	(0.6)	0.0
Changes in certain assets and liabilities:
Accounts receivable, net	(1.7)	5.9
Inventories	(3.0)	(0.3)
Taxes applicable to subsequent years	22.3	19.7
Deferred regulatory costs, net	10.4	(4.8)
Accounts payable	(16.7)	(4.3)
Accrued taxes payable / receivable	(38.8)	(38.8)
Accrued interest	3.3	3.2
Increase (Decrease) in Obligation, Pension and Other Postretirement Benefits	(8.0)	(10.5)
Other	0.9	1.0
Net Cash Provided by (Used in) Operating Activities	6.2	11.3
Cash flows from investing activities:
Capital expenditures	(64.2)	(51.6)
Payments for (Proceeds from) Removal Costs	(5.0)	(4.5)
Other investing activities, net	0.5	(0.1)
Net cash used in investing activities	(68.7)	(56.2)
Cash flows from financing activities:
Payments of Ordinary Dividends, Common Stock	(9.0)	(10.0)
Proceeds from Lines of Credit	95.0	60.0
Repayments of Lines of Credit	(20.0)	0.0
Net cash provided by financing activities	66.0	50.0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	3.5	5.1
Cash, cash equivalents, and restricted cash:
Restricted Cash and Cash Equivalents	18.0	16.9
Non-cash financing and investing activities:
Accruals for capital expenditures	23.6	16.0
Supplemental cash flow information:
Interest paid, net of amounts capitalized	$ 1.8	$ 2.7

XML

Statement of Shareholders' Equity (Statement) - USD ($) $ in Millions	Total	Subsidiaries [Member]	Common Stock [Member]	Common Stock [Member] Subsidiaries [Member]	Other Additional Capital [Member]	Other Additional Capital [Member] Subsidiaries [Member]	AOCI Attributable to Parent [Member]	AOCI Attributable to Parent [Member] Subsidiaries [Member]	Retained Earnings [Member]	Retained Earnings [Member] Subsidiaries [Member]
Shares, Issued			1	41,172,173
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ (283.5)	$ 616.7	$ 0.0	$ 0.4	$ 2,468.8	$ 714.4	$ (12.3)	$ (42.1)	$ (2,740.0)	$ (56.0)
Other Comprehensive Income (Loss), Net of Tax	0.3	1.0
Net income	13.6	18.3
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	13.9	19.3
Net Income (Loss) Attributable to Parent		18.3
Dividends, Common Stock, Cash		(10.0)
Shares, Issued			1	41,172,173
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	(269.6)	636.0	$ 0.0	$ 0.4	2,468.8	714.4	(12.0)	(41.1)	(2,726.4)	(37.7)
Shares, Issued			1	41,172,173
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ (121.4)	$ 782.2	$ 0.0		2,601.3		(4.8)		(2,717.9)
Common Stock, Shares Authorized	1,500	50,000,000
Common Stock, Value, Issued	$ 0.0	$ 0.4
Other paid-in capital	2,601.3	822.5
Accumulated other comprehensive income	(4.8)	(31.8)
Retained Earnings (Accumulated Deficit)	(2,717.9)	$ (8.9)
Par value common shares (in USD per share)		$ 0.01
Other Comprehensive Income (Loss), Net of Tax	0.1	$ 0.7						0.7
Net income	15.4	16.9
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest	15.5	17.6
Net Income (Loss) Attributable to Parent										16.9
Dividends, Common Stock, Cash		(9.0)				(9.0)
Stockholders' Equity, Other		(0.3)								(0.3)
Shares, Issued			1	41,172,173
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ (105.9)	$ 790.5	$ 0.0	$ 0.4	$ 2,601.3	$ 813.5	$ (4.7)	$ (31.1)	$ (2,702.5)	$ 7.7
Common Stock, Shares Authorized	1,500	50,000,000
Common Stock, Value, Issued	$ 0.0	$ 0.4
Other paid-in capital	2,601.3	813.5
Accumulated other comprehensive income	(4.7)	(31.1)
Retained Earnings (Accumulated Deficit)	$ (2,702.5)	$ 7.7
Par value common shares (in USD per share)		$ 0.01

XML

Overview and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Significant Accounting Policies [Line Items]

Overview and Summary of Significant Accounting Policies

Overview and Summary of Significant Accounting Policies

Description of Business

DPL is a regional energy company organized in 1985 under the laws of Ohio. DPL has one reportable segment, the Utility segment. See Note 9 – Business Segments for more information relating to this reportable segment. The terms “we,” “us,” “our” and “ours” are used to refer to DPL and its subsidiaries.

DPL is an indirectly wholly-owned subsidiary of AES.

DP&L, a wholly-owned subsidiary of DPL that does business as AES Ohio, is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, retail transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such transmission and distribution services to approximately 535,000 customers located in West Central Ohio. Additionally, 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. 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 owns numerous transmission facilities. AES Ohio 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 11 – Discontinued Operations for more information. DPL's subsidiaries are all 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

DPL’s Condensed 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.

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

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

These financial statements have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial statements and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. Therefore, our interim financial statements in this report should be read along with the annual financial statements included in our Form 10-K for the fiscal year ended December 31, 2021.

In the opinion of our management, the Condensed Consolidated Financial Statements presented in this report contain all adjustments necessary to fairly state our financial position as of March 31, 2022; our results of operations

for the three months ended March 31, 2022 and 2021, our cash flows for the three months ended March 31, 2022 and 2021 and the changes in our equity for the three months ended March 31, 2022 and 2021. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three months ended March 31, 2022 may not be indicative of our results that will be realized for the full year ending December 31, 2022.

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: recognition of revenue including unbilled revenues; the carrying value of property, plant and equipment; the valuation of insurance and claims liabilities; the valuation of allowances for credit losses and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits.

Cash, Cash Equivalents and Restricted Cash

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

$ in millions	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	32.1	$	26.6
Restricted cash (included in Prepayments and other current assets)	0.1		0.1
Cash, Cash Equivalents, and Restricted Cash, End of Period	$	32.2	$	26.7

Accounts Receivable and Allowance for Credit Losses

Accounts receivable were as follows as of March 31, 2022 and December 31, 2021:

	March 31,		December 31,
$ in millions	2022		2021
Accounts receivable, net:
Customer receivables	$	47.4	$	42.3
Unbilled revenue	17.0		19.2
Amounts due from affiliates	3.7		3.1
Due from PJM transmission enhancement settlement	1.7		1.7
Other	4.3		5.5
Allowance for credit losses	(0.2)		(0.3)
Total accounts receivable, net	$	73.9	$	71.5

The following table is a roll forward of our allowance for credit losses related to the accounts receivable balances for the three months ended March 31, 2022 and 2021:

$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2022	$	0.3	$	(0.1)	$	(0.2)	$	0.2	$	0.2
2021	$	2.8	$	—	$	(0.7)	$	0.2	$	2.3

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 are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of March 31, 2022. Amounts are written off when reasonable collections efforts have been exhausted. During 2021, the current period provision and allowance for credit losses have decreased due to lower past due customer receivable balances.

Inventories

Inventories consist of materials and supplies as of March 31, 2022 and December 31, 2021.

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. These taxes are accounted for on a net basis and not included in revenue. The amounts of such taxes collected for the three months ended March 31, 2022 and 2021 were as follows:

	Three months ended
	March 31,
$ in millions	2022		2021
Excise taxes collected	$	13.1	$	12.9

Accumulated other comprehensive loss

The amounts reclassified out of Accumulated other comprehensive loss by component during the three months ended March 31, 2022 and 2021 are as follows:

Details about Accumulated Other Comprehensive Loss components	Affected line item in the Condensed Consolidated Statements of Operations	Three months ended
		March 31,
$ in millions		2022		2021
Net gains on cash flow hedges (Note 4):
	Interest expense	$	(0.2)	$	(0.2)
	Income tax expense	0.1		—
	Net of income taxes	(0.1)		(0.2)
Amortization of defined benefit pension items (Note 7):
	Other expense	0.3		0.6
	Income tax benefit	(0.1)		(0.1)
	Net of income taxes	0.2		0.5
Total reclassifications for the period, net of income taxes		$	0.1	$	0.3

The changes in the components of Accumulated other comprehensive loss during the three months ended March 31, 2022 are as follows:

$ in millions	Change in cash flow hedges		Change in unfunded pension and postretirement benefit obligations		Total
Balance as of January 1, 2022	$	12.8	$	(17.6)	$	(4.8)
Amounts reclassified from AOCL to earnings	(0.1)		0.2		0.1
Net current period other comprehensive income / (loss)	(0.1)		0.2		0.1
Balance as of March 31, 2022	$	12.7	$	(17.4)	$	(4.7)

New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted 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.

ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2020-04 and 2021-01, Reference Rate Form (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). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts.	Effective for all entities as of March 12, 2020 through December 31, 2022	We are implementing the reference rate reform and do not expect these amendments to have a material impact on our consolidated financial statements. See Implementation for further details.

Subsidiaries [Member]

Significant Accounting Policies [Line Items]

Overview and Summary of Significant Accounting Policies

Overview and Summary of Significant Accounting Policies

Description of Business

DP&L, which does business as AES Ohio, is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, retail transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such transmission and distribution services to approximately 535,000 customers located in West Central Ohio. Additionally, 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. 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 owns numerous transmission facilities. AES Ohio sells its proportional share of energy and capacity from its investment in OVEC into the wholesale market. AES Ohio has 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. AES Ohio is a subsidiary of DPL. The terms “we,” “us,” “our” and “ours” are used to refer to AES 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 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 immaterial amounts from prior periods have been reclassified to conform to the current period presentation.

These financial statements have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial statements and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. Therefore, our interim financial statements in this report should be read along with the annual financial statements included in our Form 10-K for the fiscal year ended December 31, 2021.

In the opinion of our management, the Condensed Financial Statements presented in this report contain all adjustments necessary to fairly state our financial position as of March 31, 2022; our results of operations for the three months ended March 31, 2022 and 2021, our cash flows for the three months ended March 31, 2022 and 2021 and the changes in our equity for the three months ended March 31, 2022 and 2021. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three months ended March 31, 2022 may not be indicative of our results that will be realized for the full year ending December 31, 2022.

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: recognition of revenue including unbilled revenues; the carrying value of property, plant and equipment; the valuation of insurance and claims liabilities; the valuation of allowances for credit losses and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits.

Cash, Cash Equivalents and Restricted Cash

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

$ in millions	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	17.9	$	14.4
Restricted cash (included in Prepayments and other current assets)	0.1		0.1
Cash, Cash Equivalents, and Restricted Cash, End of Period	$	18.0	$	14.5

Accounts Receivable and Allowance for Credit Losses

Accounts receivable were as follows as of March 31, 2022 and December 31, 2021:

	March 31,		December 31,
$ in millions	2022		2021
Accounts receivable, net:
Customer receivables	46.5		$	41.6
Unbilled revenue	17.0		19.2
Amounts due from affiliates	4.3		4.4
Due from PJM transmission enhancement settlement	1.7		1.7
Other	4.3		5.3
Allowance for credit losses	(0.2)		(0.3)
Total accounts receivable, net	$	73.6	$	71.9

The following table is a roll forward of our allowance for credit losses related to the accounts receivable balances for the three months ended March 31, 2022 and 2021:

$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2022	$	0.3	$	(0.1)	$	(0.2)	$	0.2	$	0.2
2021	$	2.8	$	—	$	(0.7)	$	0.2	$	2.3

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 are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of March 31, 2022. Amounts are written off when reasonable collections efforts have been exhausted. During 2021, the current period provision and allowance for credit losses have decreased due to lower past due customer receivable balances.

Inventories

Inventories consist of materials and supplies as of March 31, 2022 and December 31, 2021.

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. These taxes are accounted for on a net basis and not included in revenue. The amounts of such taxes collected for the three months ended March 31, 2022 and 2021 were as follows:

	Three months ended
	March 31,
$ in millions	2022		2021
Excise taxes collected	$	13.1	$	12.9

Accumulated other comprehensive loss

The amounts reclassified out of Accumulated other comprehensive loss by component during the three months ended March 31, 2022 and 2021 are as follows:

Details about Accumulated Other Comprehensive Loss components	Affected line item in the Condensed Consolidated Statements of Operations	Three months ended
		March 31,
$ in millions		2022		2021
Amortization of defined benefit pension items (Note 6):
	Other expense	0.9		1.3
	Income tax benefit	(0.2)		(0.3)
	Net of income taxes	0.7		1.0
Total reclassifications for the period, net of income taxes		$	0.7	$	1.0

The changes in the components of Accumulated other comprehensive loss during the three months ended March 31, 2022 are as follows:

$ in millions	Change in Accumulated other comprehensive loss
Balance as of January 1, 2022	$	(31.8)
Amounts reclassified from AOCL to earnings	0.7
Net current period other comprehensive income	0.7
Balance as of March 31, 2022	$	(31.1)

New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted 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.

ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2020-04 and 2021-01, Reference Rate Form (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). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts.	Effective for all entities as of March 12, 2020 through December 31, 2022	We are implementing the reference rate reform and do not expect these amendments to have a material impact on our financial statements. See Implementation for further details.

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Regulatory Matters (Notes)

3 Months Ended

Mar. 31, 2022

Schedule of Regulatory Assets and Liabilities [Text Block]

Regulatory Matters

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. Certain parties that have intervened in the distribution rate case have argued that ESP 1 incorporates a distribution rate freeze. We are unable to predict the outcome of the distribution rate case, but if the PUCO were to impose a rate freeze that precludes AES Ohio’s ability to implement a distribution rate increase during ESP 1, it could have a material adverse effect on our results of operations, financial condition and cash flows.

Subsidiaries [Member]

Schedule of Regulatory Assets and Liabilities [Text Block]

Regulatory Matters

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. Certain parties that have intervened in the distribution rate case have argued that ESP 1 incorporates a distribution rate freeze. We are unable to predict the outcome of the distribution rate case, but if the PUCO were to impose a rate freeze that precludes AES Ohio’s ability to implement a distribution rate increase during ESP 1, it could have a material adverse effect on our results of operations, financial condition and cash flows.

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Fair Value

3 Months Ended

Mar. 31, 2022

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value

Fair ValueThe fair value of current financial assets and liabilities, debt service reserves and other deposits approximate their reported carrying amounts. The estimated fair values of our assets and liabilities have been determined using available market information. By virtue of these amounts being estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For further information on our valuation techniques and policies, see Note 4—Fair Value in Item 8. — Financial Statements and Supplementary Data of our Form 10-K.

The following table presents the fair value, carrying value and cost of our non-derivative instruments as of March 31, 2022 and December 31, 2021.

	March 31, 2022				December 31, 2021
$ in millions	Cost		Fair Value		Cost		Fair Value
Assets
Money market funds	$	0.4	$	0.4	$	0.4	$	0.4
Equity securities	1.9		4.5		1.9		5.1
Debt securities	3.7		3.5		3.8		3.9
Total	$	6.0	$	8.4	$	6.1	$	9.4
	Carrying Value		Fair Value		Carrying Value		Fair Value
Liabilities
Long-term debt	$	1,396.0	$	1,403.7	$	1,395.5	$	1,519.7

These financial instruments are not subject to master netting agreements or collateral requirements and, as such, are presented in the Condensed Consolidated Balance Sheets at their gross fair value, except for Long-term debt, which is presented at amortized carrying value.

We did not have any transfers of the fair values of our financial instruments between Level 1, Level 2 or Level 3 of the fair value hierarchy during the three months ended March 31, 2022 or 2021.

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 Condensed Consolidated Balance Sheets and classified as equity investments. We recorded net unrealized gains / (losses) of $(0.7) million and $0.2 million during the three months ended March 31, 2022 and 2021, respectively. These amounts are included in "Other income" in our Condensed Consolidated Statements of Operations.

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

The fair value of assets and liabilities as of March 31, 2022 and December 31, 2021 and the respective category within the fair value hierarchy for DPL is as follows:

$ in millions	Fair value as of March 31, 2022 (a)								Fair value as of December 31, 2021 (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	$	0.4	$	—	$	—	$	0.4
Equity securities	—		4.5		—		4.5		—		5.1		—		5.1
Debt securities	—		3.5		—		3.5		—		3.9		—		3.9
Total assets	$	0.4	$	8.0	$	—	$	8.4	$	0.4	$	9.0	$	—	$	9.4
Liabilities
Long-term debt	$	—	$	1,386.6	$	17.1	$	1,403.7	$	—	$	1,502.5	$	17.2	$	1,519.7
Total Liabilities	$	—	$	1,386.6	$	17.1	$	1,403.7	$	—	$	1,502.5	$	17.2	$	1,519.7

(a)    Includes credit valuation adjustment

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, the fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs.

Subsidiaries [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value

Fair Value

The fair value of current financial assets and liabilities, debt service reserves and other deposits approximate their reported carrying amounts. The estimated fair values of our assets and liabilities have been determined using available market information. By virtue of these amounts being estimates and based on hypothetical transactions to sell assets or transfer liabilities, the use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. For further information on our valuation techniques and policies, see Note 4—Fair Value in Item 8. — Financial Statements and Supplementary Data of our Form 10-K.

The following table presents the fair value, carrying value and cost of our non-derivative instruments as of March 31, 2022 and December 31, 2021.

	March 31, 2022				December 31, 2021
$ in millions	Cost		Fair Value		Cost		Fair Value
Assets
Money market funds	$	0.4	$	0.4	$	0.4	$	0.4
Equity securities	1.9		4.5		1.9		5.1
Debt securities	3.7		3.5		3.8		3.9
Total	$	6.0	$	8.4	$	6.1	$	9.4
	Carrying Value		Fair Value		Carrying Value		Fair Value
Liabilities
Long-term debt	$	574.3	$	582.8	$	574.3	$	642.6

These financial instruments are not subject to master netting agreements or collateral requirements and, as such, are presented in the Condensed Balance Sheets at their gross fair value, except for Long-term debt, which is presented at amortized carrying value.

We did not have any transfers of the fair values of our financial instruments between Level 1, Level 2 or Level 3 of the fair value hierarchy during the three months ended March 31, 2022 or 2021.

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 Condensed Balance Sheets and classified as equity investments. We recorded net unrealized gains / (losses) of $(0.7) million and $0.2 million during the three months ended March 31, 2022 and 2021, respectively. These amounts are included in "Other expense" in our Condensed Statements of Operations.

Long-term 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 long-term debt is presented at carrying value, net of unamortized premium or discount and unamortized deferred financing costs in the financial statements. The long-

term debt amounts include the current portion payable in the next twelve months and have maturities that range from 2040 to 2061.

The fair value of assets and liabilities as of March 31, 2022 and December 31, 2021 and the respective category within the fair value hierarchy for AES Ohio is as follows:

$ in millions	Fair value as of March 31, 2022 (a)								Fair value as of December 31, 2021 (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	$	0.4	$	—	$	—	$	0.4
Equity securities	—		4.5		—		4.5		—		5.1		—		5.1
Debt securities	—		3.5		—		3.5		—		3.9		—		3.9
Total assets	$	0.4	$	8.0	$	—	$	8.4	$	0.4	$	9.0	$	—	$	9.4
Liabilities
Long-term debt	$	—	$	565.7	$	17.1	$	582.8	$	—	$	625.4	$	17.2	$	642.6
Total Liabilities	$	—	$	565.7	$	17.1	$	582.8	$	—	$	625.4	$	17.2	$	642.6

(a)    Includes credit valuation adjustment

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, the fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs.

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Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

For further information on our derivative and hedge accounting policies, See Note 1 – Overview and Summary of Significant Accounting Policies – Financial Derivatives and Note 5 - Derivative Instruments and Hedging Activities of Item 8 – Financial Statements and Supplementary Data in our Form 10-K.

Cash Flow Hedges

We 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.

The following tables provide information concerning gains recognized in AOCL for the cash flow hedges for the three months ended March 31, 2022 and 2021:

	Three months ended
	March 31, 2022		March 31, 2021
	Interest		Interest
$ in millions (net of tax)	Rate Hedge		Rate Hedge
Beginning accumulated derivative gains in AOCL	$	12.8	$	13.6
Net gains reclassified to earnings
Interest expense	(0.1)		(0.2)
Ending accumulated derivative gains in AOCL	$	12.7	$	13.4
Portion expected to be reclassified to earnings in the next twelve months	$	(0.8)

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Debt Obligations

3 Months Ended

Mar. 31, 2022

Debt Instrument [Line Items]

Long-term Debt

Long-term Debt

Long-term debt is as follows:

	Interest		March 31,		December 31,
$ in millions	Rate	Maturity	2022		2021
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	17.1		17.2
Unamortized deferred financing costs			(5.3)		(5.4)
Unamortized debt discounts, net			(2.5)		(2.5)
Total long-term debt at AES Ohio			574.3		574.3
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			(8.1)		(8.6)
Unamortized debt discounts, net			(0.8)		(0.8)
Total long-term debt			1,396.0		1,395.5
Less: current portion			(0.2)		(0.2)
Long-term debt, net of current portion			$	1,395.8	$	1,395.3

(a)Note payable to related party.

Lines of credit

As of March 31, 2022 and December 31, 2021, the DPL Credit Agreement had outstanding borrowings of $65.0 million and $65.0 million, respectively. As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings of $75.0 million and $0.0 million, respectively.

Significant transactions

DPL Inc. agreed to register the 2025 DPL Inc. Senior Unsecured Bonds under the Securities Act by filing an exchange offer registration statement or, under specified circumstances, a shelf registration statement with the SEC pursuant to a Registration Rights Agreement dated June 19, 2020. DPL Inc. filed a registration statement on Form S-4 with respect to the 2025 DPL Inc. Senior Unsecured Bonds with the SEC on March 15, 2021, and this registration statement was declared effective on March 31, 2021. The exchange offer closed on May 5, 2021.

Long-term debt covenants and restrictions

The DPL 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 March 31, 2022, DPL was in compliance with this financial covenant.

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 March 31, 2022, DPL Inc. was in compliance with this financial covenant.

The DPL Credit Agreement also restricts dividend payments from DPL Inc. to AES, such that DPL cannot make dividend payments unless at the time of, and/or as a result of the distribution, (i) DPL Inc.’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 March 31, 2022, DPL Inc. was prohibited from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries).

Starting with the quarter ended September 30, 2021, the borrowing limit on the DPL Inc. Credit Agreement will be reduced by $5.0 million per quarter should the Total Debt to EBITDA ratio for the period of four consecutive quarters exceed 7.00 to 1.00. As of March 31, 2022, DPL Inc. exceeded this ratio and the borrowing limit was reduced from $100.0 million to $95.0 million.

The AES Ohio Credit Agreement 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. As of March 31, 2022, AES Ohio was in compliance with this financial covenant.

As of March 31, 2022, DPL and AES Ohio were in compliance with all debt covenants, including the financial covenants described above.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc.

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

Subsidiaries [Member]

Debt Instrument [Line Items]

Long-term Debt

Long-term Debt

Long-term debt is as follows:

	Interest			March 31,		December 31,
$ in millions	Rate		Maturity	2022		2021
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	17.1		17.2
Unamortized deferred financing costs				(5.3)		(5.4)
Unamortized debt discounts, net				(2.5)		(2.5)
Total long-term debt				574.3		574.3
Less: current portion				(0.2)		(0.2)
Long-term debt, net of current portion				$	574.1	$	574.1

Line of credit

As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings on its line of credit of $75.0 million and $0.0 million, respectively.

Long-term debt covenants and restrictions

The AES Ohio Credit Agreement 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. As of March 31, 2022, AES Ohio was in compliance with this financial covenant.

As of March 31, 2022, AES Ohio was in compliance with all debt covenants, including the financial covenants described above.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc.

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

3 Months Ended

Mar. 31, 2022

Entity Information [Line Items]

Income Taxes

Income Taxes

DPL's provision for income taxes is based on the estimated annual effective tax rate, plus discrete items. The effective tax rate for the three months ended March 31, 2022 and 2021 was (31.6)% and (3.8)%, respectively. The year-to-date rate is different from the combined federal and state statutory rate of 22.1% primarily due to the flowthrough of the net tax benefit related to the reversal of excess deferred taxes of AES Ohio as a percentage of pre-tax book income.

DPL's income tax expense for the three months ended March 31, 2022 was calculated using the estimated annual effective income tax rate for 2022 of (34.8)% on ordinary income. Management estimates the annual effective tax rate based on its forecast of annual pre-tax income or loss.

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

Subsidiaries [Member]

Entity Information [Line Items]

Income Taxes

Income TaxesAES Ohio's provision for income taxes is based on the estimated annual effective tax rate, plus discrete items. The effective tax rate for the three months ended March 31, 2022 and 2021 was 13.8% and 14.9%, respectively. The year-to-date rate is different from the combined federal and state statutory rate of 22.1% primarily due to the flowthrough of the net tax benefit related to the reversal of excess deferred taxes of AES Ohio as a percentage of pre-tax book income.

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Equity

3 Months Ended

Mar. 31, 2022

Subsidiaries [Member]

Stockholders' Equity Note Disclosure

Shareholder's Equity

Capital Contribution and Returns of Capital

During the three months ended March 31, 2022, AES Ohio made return of capital payments to DPL of $9.0 million.

During the three months ended March 31, 2021, AES Ohio made return of capital payments, which were declared in 2020, to DPL of $10.0 million.

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Benefit Plans

3 Months Ended

Mar. 31, 2022

Pension [Member]

Entity Information [Line Items]

Pension and Postretirement Benefits

Benefit Plans

AES Ohio sponsors a defined benefit pension plan for the majority of its employees.

We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of ERISA and, in addition, make voluntary contributions from time to time. There were $7.5 million and $9.8 million in employer contributions during the three months ended March 31, 2022 and 2021, respectively.

The amounts presented in the following tables for pension include the collective bargaining plan formula, the traditional management plan formula, the cash balance plan formula and the SERP, in the aggregate. The pension costs below have not been adjusted for amounts billed to the Service Company for former AES Ohio employees who are now employed by the Service Company or other AES affiliates that are still participants in the AES Ohio plan. The components of net periodic benefit costs other than service costs are included in Other income in the Condensed Consolidated Statements of Operations.

The net periodic benefit cost of the pension benefit plans for the three months ended March 31, 2022 and 2021 was:

	Three months ended
	March 31,
$ in millions	2022		2021
Service cost	$	1.3	$	1.1
Interest cost	2.4		2.0
Expected return on plan assets	(4.0)		(3.7)
Amortization of unrecognized:
Prior service cost	0.2		0.2
Actuarial loss	1.4		2.3
Net periodic benefit cost	$	1.3	$	1.9

In addition, AES Ohio provides postretirement health care and life insurance benefits to certain retired employees, their spouses and eligible dependents. 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 $8.8 million as of March 31, 2022 and $8.9 million as of December 31, 2021 were not material to the financial statements in the periods covered by this report.

Subsidiaries [Member]

Entity Information [Line Items]

Pension and Postretirement Benefits

Benefit Plans

AES Ohio sponsors a defined benefit pension plan for the majority of its employees.

We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of ERISA and, in addition, make voluntary contributions from time to time. There were $7.5 million and $9.8 million in employer contributions during the three months ended March 31, 2022 and 2021, respectively.

The amounts presented in the following tables for pension include the collective bargaining plan formula, the traditional management plan formula, the cash balance plan formula and the SERP, in the aggregate. The pension costs below have not been adjusted for amounts billed to the Service Company for former AES Ohio employees who are now employed by the Service Company or other AES affiliates or for amounts billed to AES Ohio Generation for former employees that were employed by AES Ohio Generation that are still participants in the AES Ohio plan. The components of net periodic benefit costs other than service costs are included in Other expense in the Condensed Statements of Operations.

The net periodic benefit cost of the pension benefit plans for the three months ended March 31, 2022 and 2021 was:

	Three months ended
	March 31,
$ in millions	2022		2021
Service cost	$	1.3	$	1.1
Interest cost	2.4		2.0
Expected return on plan assets	(4.0)		(3.7)
Amortization of unrecognized:
Prior service cost	0.3		0.3
Actuarial loss	1.9		2.8
Net periodic benefit cost	$	1.9	$	2.5

In addition, AES Ohio provides postretirement health care and life insurance benefits to certain retired employees, their spouses and eligible dependents. 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 $8.8 million as of March 31, 2022 and $8.9 million as of December 31, 2021 were not material to the financial statements in the periods covered by this report.

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Contractual Obligations, Commercial Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Entity Information [Line Items]

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. AES Ohio, along with several non-affiliated energy companies party to an OVEC arrangement, receive and pay for OVEC capacity and energy and are responsible for OVEC debt obligations and other fixed costs in proportion to their power participation ratios under the arrangement, which, for AES Ohio, is the same as its equity ownership interest. As of March 31, 2022, AES Ohio could be responsible for the repayment of 4.9%, or $54.8 million, of $1,118.8 million OVEC debt obligations if they came due, comprised of both fixed and variable rate securities with maturities from 2022 to 2040. OVEC could also seek additional contributions from AES Ohio to avoid a default in the event that other OVEC members defaulted on their respective OVEC obligations.

Contingencies

In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under various laws and regulations. We believe the amounts provided in our Condensed 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 discussed below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in our Condensed Consolidated Financial Statements. As such, costs, if any, that may be incurred in excess of those amounts provided as of March 31, 2022, cannot be reasonably determined.

Environmental Matters

DPL’s and AES Ohio’s current and previously-owned facilities and operations are subject to a wide range of federal, state and local environmental regulations and laws. The environmental issues that may affect us include:

•The federal CAA and state laws and regulations (including State Implementation Plans) 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, federal, state and local environmental laws 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 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 several 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 and cash flows.

We have several pending environmental matters associated with our previously-owned and operated coal-fired generation units. Some of these matters could have a material adverse effect on our results of operations, financial condition and cash flows.

Subsidiaries [Member]

Entity Information [Line Items]

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. AES Ohio, along with several non-affiliated energy companies party to an OVEC arrangement, receive and pay for OVEC capacity and energy and are responsible for OVEC debt obligations and other fixed costs in proportion to their power participation ratios under the arrangement, which, for AES Ohio, is the same as its equity ownership interest. As of March 31, 2022, AES Ohio could be responsible for the repayment of 4.9%, or $54.8 million, of $1,118.8 million OVEC debt obligations if they came due, comprised of both fixed and variable rate securities with maturities from 2022 to 2040. OVEC could also seek additional contributions from AES Ohio to avoid a default in the event that other OVEC members defaulted on their respective OVEC obligations.

Contingencies

In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under various laws and regulations. We believe the amounts provided in our Condensed 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 discussed below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in our Condensed Financial Statements. As such, costs, if any, that may be incurred in excess of those amounts provided as of March 31, 2022, cannot be reasonably determined.

Environmental Matters

AES Ohio’s current and previously-owned facilities and operations are subject to a wide range of federal, state and local environmental regulations and laws. The environmental issues that may affect us include:

•The federal CAA and state laws and regulations (including State Implementation Plans) 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, federal, state and local environmental laws 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 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 several 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 and cash flows.

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Business Segments

3 Months Ended

Mar. 31, 2022

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 segment. The Utility segment is discussed further below.

Utility Segment

The Utility segment is comprised of AES Ohio’s electric transmission and distribution businesses, which distribute electricity to residential, commercial, industrial and governmental customers. AES Ohio distributes electricity to approximately 535,000 retail customers 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.

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 on DPL's long-term debt as well as adjustments related to purchase accounting from the Merger. The accounting policies of the reportable segment are the same as those described in Note 1 – Overview and Summary of Significant Accounting Policies of our 10-K. 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 Utility reportable business segment:

$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Three months ended March 31, 2022
Revenues from external customers	$	196.8	$	2.5	$	—	$	199.3
Intersegment revenues	0.2		0.9		(1.1)		—
Total revenues	$	197.0	$	3.4	$	(1.1)	$	199.3
Depreciation and amortization	$	19.2	$	0.3	$	—	$	19.5
Interest expense	$	5.9	$	9.6	$	—	$	15.5
Income / (loss) from continuing operations before income tax	$	19.6	$	(7.9)	$	—	$	11.7
$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Three months ended March 31, 2021
Revenues from external customers	$	172.6	$	2.6	$	—	$	175.2
Intersegment revenues	0.2		0.9		(1.1)		—
Total revenues	$	172.8	$	3.5	$	(1.1)	$	175.2
Depreciation and amortization	$	18.7	$	0.4	$	—	$	19.1
Interest expense	$	6.0	$	9.6	$	—	$	15.6
Income / (loss) from continuing operations before income tax	$	21.5	$	(7.6)	$	—	$	13.9

Total Assets	March 31, 2022		December 31, 2021
Utility	$	2,175.7	$	2,162.6
All Other (a)	14.0		9.2
DPL Consolidated	$	2,189.7	$	2,171.8

(a)    "All Other" includes Eliminations for all periods presented.

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Revenue (Notes)

3 Months Ended

Mar. 31, 2022

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 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. For further discussion of our Retail, Wholesale, RTO ancillary, and Capacity revenues, see Note 13 — Revenue in Item 8.—Financial Statements and Supplementary Data of our Form 10-K.

DPL's revenue from contracts with customers was $197.7 million and $172.1 million for the three months ended March 31, 2022 and 2021, respectively.

The following table presents our revenue from contracts with customers and other revenue by segment for the three months ended March 31, 2022 and 2021:

$ in millions	Utility		Other		Adjustments and Eliminations		Total
	Three months ended March 31, 2022
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	109.9	$	—	$	—	$	109.9
Commercial revenue	35.0		—		—		35.0
Industrial revenue	16.9		—		—		16.9
Governmental revenue	6.1		—		—		6.1
Other (a)	2.9		—		—		2.9
Total retail revenue from contracts with customers	170.8		—		—		170.8
Wholesale revenue
Wholesale revenue from contracts with customers	7.7		—		(0.2)		7.5
RTO ancillary revenue	15.1		—		—		15.1
Capacity revenue	1.8		—		—		1.8
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (b)	—		2.5		—		2.5
Other miscellaneous revenue	1.6		0.9		(0.9)		1.6
Total revenues	$	197.0	$	3.4	$	(1.1)	$	199.3
	Three months ended March 31, 2021
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	98.3	$	—	$	—	$	98.3
Commercial revenue	27.3		—		—		27.3
Industrial revenue	12.3		—		—		12.3
Governmental revenue	7.4		—		—		7.4
Other (a)	3.7		—		—		3.7
Total retail revenue from contracts with customers	149.0		—		—		149.0
Wholesale revenue
Wholesale revenue from contracts with customers	5.0		—		(0.2)		4.8
RTO ancillary revenue	14.8		0.1		—		14.9
Capacity revenue	0.9		—		—		0.9
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (b)	—		2.5		—		2.5
Other miscellaneous revenue	3.1		0.9		(0.9)		3.1
Total revenues	$	172.8	$	3.5	$	(1.1)	$	175.2

(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)    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 $64.4 million and $61.5 million as of March 31, 2022 and December 31, 2021, respectively. Payment terms for all receivables from contracts with customers are typically within 30 days, though, as a result of COVID-19, AES Ohio began offering expanded payment arrangements for customers.

Subsidiaries [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 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. For further discussion of our Retail, Wholesale, RTO ancillary, and Capacity revenues, see Note 12 — Revenue in Item 8.—Financial Statements and Supplementary Data of our Form 10-K.

AES Ohio's revenue from contracts with customers was $195.4 million and $169.7 million for the three months ended March 31, 2022 and 2021, respectively.

The following table presents our revenue from contracts with customers and other revenue for the three months ended March 31, 2022 and 2021:

	Three months ended
	March 31,
$ in millions	2022		2021
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	109.9	$	98.3
Commercial revenue	35.0		27.3
Industrial revenue	16.9		12.3
Governmental revenue	6.1		7.4
Other (a)	2.9		3.7
Total retail revenue from contracts with customers	170.8		149.0
Wholesale revenue
Wholesale revenue from contracts with customers	7.7		5.0
RTO ancillary revenue	15.1		14.8
Capacity revenue	1.8		0.9
Miscellaneous revenue	1.6		3.1
Total revenues	$	197.0	$	172.8

(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.

The balances of receivables from contracts with customers were $63.5 million and $60.8 million as of March 31, 2022 and December 31, 2021, respectively. Payment terms for all receivables from contracts with customers are typically within 30 days, though, as a result of COVID-19, AES Ohio began offering expanded payment arrangements for customers.

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Discontinued Operations

3 Months Ended

Mar. 31, 2022

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Discontinued Operations

Discontinued OperationsConesville - 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. For the transaction, DPL will make quarterly cash expenditures, totaling $4.0 million, through July 2022, of which $3.8 million has been paid through March 31, 2022. The transfer of Conesville Unit 4 was the last step in DPL's plan to exit its AES Ohio Generation business operations.

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 qualified to be presented as discontinued operations. Therefore, the results of operations of this group of components have been reported as such in the Condensed Consolidated Statements of Operations for the period indicated below.

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

	Three months ended
	March 31,
$ in millions	2021
Revenues	$	0.9
Operating costs and other expenses	(1.7)
Loss from discontinued operations before income tax	(0.8)
Income tax expense / (benefit) from discontinued operations	(0.2)
Net income / (loss) from discontinued operations	$	(0.6)

Cash flows related to discontinued operations are included in our Condensed Consolidated Statements of Cash Flows. For the three months ended March 31, 2021, cash flows from operating activities for discontinued operations and cash flows from investing activities for discontinued operations were $(0.2) million and $(0.4) million, respectively.

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Risk & Uncertainties (Notes)

3 Months Ended

Mar. 31, 2022

Unusual Risk or Uncertainty [Line Items]

Risks and Uncertainties [Text Block]

Risks and 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. 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 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. 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.

Subsidiaries [Member]

Unusual Risk or Uncertainty [Line Items]

Risks and Uncertainties [Text Block]

Risks and 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. 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 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. 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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Summary of Significant Accounting Policies (Policy)

3 Months Ended

Mar. 31, 2022

Significant Accounting Policies [Line Items]

Inventory, Policy

Inventories

Inventories consist of materials and supplies as of March 31, 2022 and December 31, 2021.

Description of Business

Description of Business

DPL is a regional energy company organized in 1985 under the laws of Ohio. DPL has one reportable segment, the Utility segment. See Note 9 – Business Segments for more information relating to this reportable segment. The terms “we,” “us,” “our” and “ours” are used to refer to DPL and its subsidiaries.

DPL is an indirectly wholly-owned subsidiary of AES.

DP&L, a wholly-owned subsidiary of DPL that does business as AES Ohio, is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, retail transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such transmission and distribution services to approximately 535,000 customers located in West Central Ohio. Additionally, 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. 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 owns numerous transmission facilities. AES Ohio 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 11 – Discontinued Operations for more information. DPL's subsidiaries are all 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

Financial Statement Presentation

DPL’s Condensed 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.

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

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

These financial statements have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial statements and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. Therefore, our interim financial statements in this report should be read along with the annual financial statements included in our Form 10-K for the fiscal year ended December 31, 2021.

In the opinion of our management, the Condensed Consolidated Financial Statements presented in this report contain all adjustments necessary to fairly state our financial position as of March 31, 2022; our results of operations

for the three months ended March 31, 2022 and 2021, our cash flows for the three months ended March 31, 2022 and 2021 and the changes in our equity for the three months ended March 31, 2022 and 2021. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three months ended March 31, 2022 may not be indicative of our results that will be realized for the full year ending December 31, 2022.

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: recognition of revenue including unbilled revenues; the carrying value of property, plant and equipment; the valuation of insurance and claims liabilities; the valuation of allowances for credit losses and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits.

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. These taxes are accounted for on a net basis and not included in revenue. The amounts of such taxes collected for the three months ended March 31, 2022 and 2021 were as follows:

	Three months ended
	March 31,
$ in millions	2022		2021
Excise taxes collected	$	13.1	$	12.9

Recently Issued Accounting Standards

New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted 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.

ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2020-04 and 2021-01, Reference Rate Form (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). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts.	Effective for all entities as of March 12, 2020 through December 31, 2022	We are implementing the reference rate reform and do not expect these amendments to have a material impact on our consolidated financial statements. See Implementation for further details.

Subsidiaries [Member]

Significant Accounting Policies [Line Items]

Description of Business

Description of Business

DP&L, which does business as AES Ohio, is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service; however, retail transmission and distribution services are still regulated. AES Ohio has the exclusive right to provide such transmission and distribution services to approximately 535,000 customers located in West Central Ohio. Additionally, 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. 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 owns numerous transmission facilities. AES Ohio sells its proportional share of energy and capacity from its investment in OVEC into the wholesale market. AES Ohio has 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. AES Ohio is a subsidiary of DPL. The terms “we,” “us,” “our” and “ours” are used to refer to AES 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 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

Financial Statement Presentation

AES Ohio does not have any subsidiaries.

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

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

These financial statements have been prepared in accordance with GAAP, as contained in the FASB ASC, for interim financial statements and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual fiscal reporting periods. Therefore, our interim financial statements in this report should be read along with the annual financial statements included in our Form 10-K for the fiscal year ended December 31, 2021.

In the opinion of our management, the Condensed Financial Statements presented in this report contain all adjustments necessary to fairly state our financial position as of March 31, 2022; our results of operations for the three months ended March 31, 2022 and 2021, our cash flows for the three months ended March 31, 2022 and 2021 and the changes in our equity for the three months ended March 31, 2022 and 2021. Unless otherwise noted, all adjustments are normal and recurring in nature. Due to various factors, interim results for the three months ended March 31, 2022 may not be indicative of our results that will be realized for the full year ending December 31, 2022.

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: recognition of revenue including unbilled revenues; the carrying value of property, plant and equipment; the valuation of insurance and claims liabilities; the valuation of allowances for credit losses and deferred income taxes; regulatory assets and liabilities; liabilities recorded for income tax exposures; litigation; contingencies; and assets and liabilities related to employee benefits.

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. These taxes are accounted for on a net basis and not included in revenue. The amounts of such taxes collected for the three months ended March 31, 2022 and 2021 were as follows:

	Three months ended
	March 31,
$ in millions	2022		2021
Excise taxes collected	$	13.1	$	12.9

Recently Issued Accounting Standards

New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted did not have a material impact on our financial statements.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

Related Party Transaction [Line Items]

Schedule of Accumulated Other Comprehensive Income (Loss)

The changes in the components of Accumulated other comprehensive loss during the three months ended March 31, 2022 are as follows:

$ in millions	Change in cash flow hedges		Change in unfunded pension and postretirement benefit obligations		Total
Balance as of January 1, 2022	$	12.8	$	(17.6)	$	(4.8)
Amounts reclassified from AOCL to earnings	(0.1)		0.2		0.1
Net current period other comprehensive income / (loss)	(0.1)		0.2		0.1
Balance as of March 31, 2022	$	12.7	$	(17.4)	$	(4.7)

Reclassification out of Accumulated Other Comprehensive Income

The amounts reclassified out of Accumulated other comprehensive loss by component during the three months ended March 31, 2022 and 2021 are as follows:

Details about Accumulated Other Comprehensive Loss components	Affected line item in the Condensed Consolidated Statements of Operations	Three months ended
		March 31,
$ in millions		2022		2021
Net gains on cash flow hedges (Note 4):
	Interest expense	$	(0.2)	$	(0.2)
	Income tax expense	0.1		—
	Net of income taxes	(0.1)		(0.2)
Amortization of defined benefit pension items (Note 7):
	Other expense	0.3		0.6
	Income tax benefit	(0.1)		(0.1)
	Net of income taxes	0.2		0.5
Total reclassifications for the period, net of income taxes		$	0.1	$	0.3

Schedule of Supplemental Financial Information

Accounts receivable were as follows as of March 31, 2022 and December 31, 2021:

	March 31,		December 31,
$ in millions	2022		2021
Accounts receivable, net:
Customer receivables	$	47.4	$	42.3
Unbilled revenue	17.0		19.2
Amounts due from affiliates	3.7		3.1
Due from PJM transmission enhancement settlement	1.7		1.7
Other	4.3		5.5
Allowance for credit losses	(0.2)		(0.3)
Total accounts receivable, net	$	73.9	$	71.5

Accounts Receivable, Allowance for Credit Loss

The following table is a roll forward of our allowance for credit losses related to the accounts receivable balances for the three months ended March 31, 2022 and 2021:

$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2022	$	0.3	$	(0.1)	$	(0.2)	$	0.2	$	0.2
2021	$	2.8	$	—	$	(0.7)	$	0.2	$	2.3

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 are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of March 31, 2022. Amounts are written off when reasonable collections efforts have been exhausted. During 2021, the current period provision and allowance for credit losses have decreased due to lower past due customer receivable balances.

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted 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.

ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2020-04 and 2021-01, Reference Rate Form (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). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts.	Effective for all entities as of March 12, 2020 through December 31, 2022	We are implementing the reference rate reform and do not expect these amendments to have a material impact on our consolidated financial statements. See Implementation for further details.

Schedule of Cash and Cash Equivalents [Table Text Block]

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

$ in millions	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	32.1	$	26.6
Restricted cash (included in Prepayments and other current assets)	0.1		0.1
Cash, Cash Equivalents, and Restricted Cash, End of Period	$	32.2	$	26.7

Schedule of New Accounting Pronouncements

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.

ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2020-04 and 2021-01, Reference Rate Form (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). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts.	Effective for all entities as of March 12, 2020 through December 31, 2022	We are implementing the reference rate reform and do not expect these amendments to have a material impact on our consolidated financial statements. See Implementation for further details.

Subsidiaries [Member]

Related Party Transaction [Line Items]

Schedule of Accumulated Other Comprehensive Income (Loss)

The changes in the components of Accumulated other comprehensive loss during the three months ended March 31, 2022 are as follows:

$ in millions	Change in Accumulated other comprehensive loss
Balance as of January 1, 2022	$	(31.8)
Amounts reclassified from AOCL to earnings	0.7
Net current period other comprehensive income	0.7
Balance as of March 31, 2022	$	(31.1)

Reclassification out of Accumulated Other Comprehensive Income

The amounts reclassified out of Accumulated other comprehensive loss by component during the three months ended March 31, 2022 and 2021 are as follows:

Details about Accumulated Other Comprehensive Loss components	Affected line item in the Condensed Consolidated Statements of Operations	Three months ended
		March 31,
$ in millions		2022		2021
Amortization of defined benefit pension items (Note 6):
	Other expense	0.9		1.3
	Income tax benefit	(0.2)		(0.3)
	Net of income taxes	0.7		1.0
Total reclassifications for the period, net of income taxes		$	0.7	$	1.0

Schedule of Supplemental Financial Information

Accounts receivable were as follows as of March 31, 2022 and December 31, 2021:

	March 31,		December 31,
$ in millions	2022		2021
Accounts receivable, net:
Customer receivables	46.5		$	41.6
Unbilled revenue	17.0		19.2
Amounts due from affiliates	4.3		4.4
Due from PJM transmission enhancement settlement	1.7		1.7
Other	4.3		5.3
Allowance for credit losses	(0.2)		(0.3)
Total accounts receivable, net	$	73.6	$	71.9

Accounts Receivable, Allowance for Credit Loss

The following table is a roll forward of our allowance for credit losses related to the accounts receivable balances for the three months ended March 31, 2022 and 2021:

$ in millions	Beginning Allowance Balance		Current Period Provision		Write-offs Charged Against Allowances		Recoveries Collected		Ending Allowance Balance
2022	$	0.3	$	(0.1)	$	(0.2)	$	0.2	$	0.2
2021	$	2.8	$	—	$	(0.7)	$	0.2	$	2.3

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 are expected to impact collectability, as applicable, including the economic impacts of the COVID-19 pandemic on our receivable balance as of March 31, 2022. Amounts are written off when reasonable collections efforts have been exhausted. During 2021, the current period provision and allowance for credit losses have decreased due to lower past due customer receivable balances.

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements Adopted in 2022 – We have assessed and determined that the new accounting pronouncements adopted did not have a material impact on our financial statements.

Schedule of Cash and Cash Equivalents [Table Text Block]

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

$ in millions	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	17.9	$	14.4
Restricted cash (included in Prepayments and other current assets)	0.1		0.1
Cash, Cash Equivalents, and Restricted Cash, End of Period	$	18.0	$	14.5

Schedule of New Accounting Pronouncements

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.

ASU Number and Name	Description	Date of Adoption	Effect on the financial statements upon adoption
2020-04 and 2021-01, Reference Rate Form (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). Implementation - We have established a process to measure and mitigate risks associated with the cessation of LIBOR. As part of this initiative, alternative benchmark rates have been, and continue to be, assessed, and implemented for newly executed agreements. Many of our existing agreements include provisions designed to facilitate an orderly transition from LIBOR. To the extent that the terms of the credit agreements do not align following the cessation of LIBOR rates, we will seek to negotiate contract amendments with counterparties or additional derivatives contracts.	Effective for all entities as of March 12, 2020 through December 31, 2022	We are implementing the reference rate reform and do not expect these amendments to have a material impact on our financial statements. See Implementation for further details.

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value and Cost Of Non-Derivative Instruments

The following table presents the fair value, carrying value and cost of our non-derivative instruments as of March 31, 2022 and December 31, 2021.

	March 31, 2022				December 31, 2021
$ in millions	Cost		Fair Value		Cost		Fair Value
Assets
Money market funds	$	0.4	$	0.4	$	0.4	$	0.4
Equity securities	1.9		4.5		1.9		5.1
Debt securities	3.7		3.5		3.8		3.9
Total	$	6.0	$	8.4	$	6.1	$	9.4
	Carrying Value		Fair Value		Carrying Value		Fair Value
Liabilities
Long-term debt	$	1,396.0	$	1,403.7	$	1,395.5	$	1,519.7

Fair Value of Assets and Liabilities Measured on Recurring Basis

The fair value of assets and liabilities as of March 31, 2022 and December 31, 2021 and the respective category within the fair value hierarchy for DPL is as follows:

$ in millions	Fair value as of March 31, 2022 (a)								Fair value as of December 31, 2021 (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	$	0.4	$	—	$	—	$	0.4
Equity securities	—		4.5		—		4.5		—		5.1		—		5.1
Debt securities	—		3.5		—		3.5		—		3.9		—		3.9
Total assets	$	0.4	$	8.0	$	—	$	8.4	$	0.4	$	9.0	$	—	$	9.4
Liabilities
Long-term debt	$	—	$	1,386.6	$	17.1	$	1,403.7	$	—	$	1,502.5	$	17.2	$	1,519.7
Total Liabilities	$	—	$	1,386.6	$	17.1	$	1,403.7	$	—	$	1,502.5	$	17.2	$	1,519.7

(a)    Includes credit valuation adjustment

Subsidiaries [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value and Cost Of Non-Derivative Instruments

The following table presents the fair value, carrying value and cost of our non-derivative instruments as of March 31, 2022 and December 31, 2021.

	March 31, 2022				December 31, 2021
$ in millions	Cost		Fair Value		Cost		Fair Value
Assets
Money market funds	$	0.4	$	0.4	$	0.4	$	0.4
Equity securities	1.9		4.5		1.9		5.1
Debt securities	3.7		3.5		3.8		3.9
Total	$	6.0	$	8.4	$	6.1	$	9.4
	Carrying Value		Fair Value		Carrying Value		Fair Value
Liabilities
Long-term debt	$	574.3	$	582.8	$	574.3	$	642.6

Fair Value of Assets and Liabilities Measured on Recurring Basis

The fair value of assets and liabilities as of March 31, 2022 and December 31, 2021 and the respective category within the fair value hierarchy for AES Ohio is as follows:

$ in millions	Fair value as of March 31, 2022 (a)								Fair value as of December 31, 2021 (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	$	0.4	$	—	$	—	$	0.4
Equity securities	—		4.5		—		4.5		—		5.1		—		5.1
Debt securities	—		3.5		—		3.5		—		3.9		—		3.9
Total assets	$	0.4	$	8.0	$	—	$	8.4	$	0.4	$	9.0	$	—	$	9.4
Liabilities
Long-term debt	$	—	$	565.7	$	17.1	$	582.8	$	—	$	625.4	$	17.2	$	642.6
Total Liabilities	$	—	$	565.7	$	17.1	$	582.8	$	—	$	625.4	$	17.2	$	642.6

(a)    Includes credit valuation adjustment

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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Gains or Losses Recognized in AOCI for the Cash Flow Hedges

The following tables provide information concerning gains recognized in AOCL for the cash flow hedges for the three months ended March 31, 2022 and 2021:

	Three months ended
	March 31, 2022		March 31, 2021
	Interest		Interest
$ in millions (net of tax)	Rate Hedge		Rate Hedge
Beginning accumulated derivative gains in AOCL	$	12.8	$	13.6
Net gains reclassified to earnings
Interest expense	(0.1)		(0.2)
Ending accumulated derivative gains in AOCL	$	12.7	$	13.4
Portion expected to be reclassified to earnings in the next twelve months	$	(0.8)

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Debt (Tables)

3 Months Ended

Mar. 31, 2022

Debt Instrument [Line Items]

Long-term Debt

Long-term Debt

Long-term debt is as follows:

	Interest		March 31,		December 31,
$ in millions	Rate	Maturity	2022		2021
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	17.1		17.2
Unamortized deferred financing costs			(5.3)		(5.4)
Unamortized debt discounts, net			(2.5)		(2.5)
Total long-term debt at AES Ohio			574.3		574.3
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			(8.1)		(8.6)
Unamortized debt discounts, net			(0.8)		(0.8)
Total long-term debt			1,396.0		1,395.5
Less: current portion			(0.2)		(0.2)
Long-term debt, net of current portion			$	1,395.8	$	1,395.3

(a)Note payable to related party.

Lines of credit

As of March 31, 2022 and December 31, 2021, the DPL Credit Agreement had outstanding borrowings of $65.0 million and $65.0 million, respectively. As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings of $75.0 million and $0.0 million, respectively.

Significant transactions

DPL Inc. agreed to register the 2025 DPL Inc. Senior Unsecured Bonds under the Securities Act by filing an exchange offer registration statement or, under specified circumstances, a shelf registration statement with the SEC pursuant to a Registration Rights Agreement dated June 19, 2020. DPL Inc. filed a registration statement on Form S-4 with respect to the 2025 DPL Inc. Senior Unsecured Bonds with the SEC on March 15, 2021, and this registration statement was declared effective on March 31, 2021. The exchange offer closed on May 5, 2021.

Long-term debt covenants and restrictions

The DPL 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 March 31, 2022, DPL was in compliance with this financial covenant.

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 March 31, 2022, DPL Inc. was in compliance with this financial covenant.

The DPL Credit Agreement also restricts dividend payments from DPL Inc. to AES, such that DPL cannot make dividend payments unless at the time of, and/or as a result of the distribution, (i) DPL Inc.’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 March 31, 2022, DPL Inc. was prohibited from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries).

Starting with the quarter ended September 30, 2021, the borrowing limit on the DPL Inc. Credit Agreement will be reduced by $5.0 million per quarter should the Total Debt to EBITDA ratio for the period of four consecutive quarters exceed 7.00 to 1.00. As of March 31, 2022, DPL Inc. exceeded this ratio and the borrowing limit was reduced from $100.0 million to $95.0 million.

The AES Ohio Credit Agreement 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. As of March 31, 2022, AES Ohio was in compliance with this financial covenant.

As of March 31, 2022, DPL and AES Ohio were in compliance with all debt covenants, including the financial covenants described above.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc.

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

Schedule of Long-term Debt Instruments

Long-term debt is as follows:

	Interest		March 31,		December 31,
$ in millions	Rate	Maturity	2022		2021
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	17.1		17.2
Unamortized deferred financing costs			(5.3)		(5.4)
Unamortized debt discounts, net			(2.5)		(2.5)
Total long-term debt at AES Ohio			574.3		574.3
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			(8.1)		(8.6)
Unamortized debt discounts, net			(0.8)		(0.8)
Total long-term debt			1,396.0		1,395.5
Less: current portion			(0.2)		(0.2)
Long-term debt, net of current portion			$	1,395.8	$	1,395.3

(a)Note payable to related party.

Subsidiaries [Member]

Debt Instrument [Line Items]

Long-term Debt

Long-term Debt

Long-term debt is as follows:

	Interest			March 31,		December 31,
$ in millions	Rate		Maturity	2022		2021
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	17.1		17.2
Unamortized deferred financing costs				(5.3)		(5.4)
Unamortized debt discounts, net				(2.5)		(2.5)
Total long-term debt				574.3		574.3
Less: current portion				(0.2)		(0.2)
Long-term debt, net of current portion				$	574.1	$	574.1

Line of credit

As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings on its line of credit of $75.0 million and $0.0 million, respectively.

Long-term debt covenants and restrictions

The AES Ohio Credit Agreement 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. As of March 31, 2022, AES Ohio was in compliance with this financial covenant.

As of March 31, 2022, AES Ohio was in compliance with all debt covenants, including the financial covenants described above.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc.

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

Schedule of Long-term Debt Instruments

Long-term debt is as follows:

	Interest			March 31,		December 31,
$ in millions	Rate		Maturity	2022		2021
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	17.1		17.2
Unamortized deferred financing costs				(5.3)		(5.4)
Unamortized debt discounts, net				(2.5)		(2.5)
Total long-term debt				574.3		574.3
Less: current portion				(0.2)		(0.2)
Long-term debt, net of current portion				$	574.1	$	574.1

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Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2022

Entity Information [Line Items]

Schedule of Net Periodic Benefit Cost / (Income)

The net periodic benefit cost of the pension benefit plans for the three months ended March 31, 2022 and 2021 was:

	Three months ended
	March 31,
$ in millions	2022		2021
Service cost	$	1.3	$	1.1
Interest cost	2.4		2.0
Expected return on plan assets	(4.0)		(3.7)
Amortization of unrecognized:
Prior service cost	0.2		0.2
Actuarial loss	1.4		2.3
Net periodic benefit cost	$	1.3	$	1.9

Subsidiaries [Member]

Entity Information [Line Items]

Schedule of Net Periodic Benefit Cost / (Income)

The net periodic benefit cost of the pension benefit plans for the three months ended March 31, 2022 and 2021 was:

	Three months ended
	March 31,
$ in millions	2022		2021
Service cost	$	1.3	$	1.1
Interest cost	2.4		2.0
Expected return on plan assets	(4.0)		(3.7)
Amortization of unrecognized:
Prior service cost	0.3		0.3
Actuarial loss	1.9		2.8
Net periodic benefit cost	$	1.9	$	2.5

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Business Segments (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting Information [Line Items]

Financial Reporting for Reportable Business Segments

The following tables present financial information for DPL’s Utility reportable business segment:

$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Three months ended March 31, 2022
Revenues from external customers	$	196.8	$	2.5	$	—	$	199.3
Intersegment revenues	0.2		0.9		(1.1)		—
Total revenues	$	197.0	$	3.4	$	(1.1)	$	199.3
Depreciation and amortization	$	19.2	$	0.3	$	—	$	19.5
Interest expense	$	5.9	$	9.6	$	—	$	15.5
Income / (loss) from continuing operations before income tax	$	19.6	$	(7.9)	$	—	$	11.7
$ in millions	Utility		Other		Adjustments and Eliminations		DPL Consolidated
Three months ended March 31, 2021
Revenues from external customers	$	172.6	$	2.6	$	—	$	175.2
Intersegment revenues	0.2		0.9		(1.1)		—
Total revenues	$	172.8	$	3.5	$	(1.1)	$	175.2
Depreciation and amortization	$	18.7	$	0.4	$	—	$	19.1
Interest expense	$	6.0	$	9.6	$	—	$	15.6
Income / (loss) from continuing operations before income tax	$	21.5	$	(7.6)	$	—	$	13.9

Total Assets	March 31, 2022		December 31, 2021
Utility	$	2,175.7	$	2,162.6
All Other (a)	14.0		9.2
DPL Consolidated	$	2,189.7	$	2,171.8

(a)    "All Other" includes Eliminations for all periods presented.

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Revenue (Tables)

3 Months Ended

Mar. 31, 2022

Disaggregation of Revenue [Table Text Block]

The following table presents our revenue from contracts with customers and other revenue by segment for the three months ended March 31, 2022 and 2021:

$ in millions	Utility		Other		Adjustments and Eliminations		Total
	Three months ended March 31, 2022
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	109.9	$	—	$	—	$	109.9
Commercial revenue	35.0		—		—		35.0
Industrial revenue	16.9		—		—		16.9
Governmental revenue	6.1		—		—		6.1
Other (a)	2.9		—		—		2.9
Total retail revenue from contracts with customers	170.8		—		—		170.8
Wholesale revenue
Wholesale revenue from contracts with customers	7.7		—		(0.2)		7.5
RTO ancillary revenue	15.1		—		—		15.1
Capacity revenue	1.8		—		—		1.8
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (b)	—		2.5		—		2.5
Other miscellaneous revenue	1.6		0.9		(0.9)		1.6
Total revenues	$	197.0	$	3.4	$	(1.1)	$	199.3
	Three months ended March 31, 2021
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	98.3	$	—	$	—	$	98.3
Commercial revenue	27.3		—		—		27.3
Industrial revenue	12.3		—		—		12.3
Governmental revenue	7.4		—		—		7.4
Other (a)	3.7		—		—		3.7
Total retail revenue from contracts with customers	149.0		—		—		149.0
Wholesale revenue
Wholesale revenue from contracts with customers	5.0		—		(0.2)		4.8
RTO ancillary revenue	14.8		0.1		—		14.9
Capacity revenue	0.9		—		—		0.9
Miscellaneous revenue
Miscellaneous revenue from contracts with customers (b)	—		2.5		—		2.5
Other miscellaneous revenue	3.1		0.9		(0.9)		3.1
Total revenues	$	172.8	$	3.5	$	(1.1)	$	175.2

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

Subsidiaries [Member]

Disaggregation of Revenue [Table Text Block]

The following table presents our revenue from contracts with customers and other revenue for the three months ended March 31, 2022 and 2021:

	Three months ended
	March 31,
$ in millions	2022		2021
Retail revenue
Retail revenue from contracts with customers
Residential revenue	$	109.9	$	98.3
Commercial revenue	35.0		27.3
Industrial revenue	16.9		12.3
Governmental revenue	6.1		7.4
Other (a)	2.9		3.7
Total retail revenue from contracts with customers	170.8		149.0
Wholesale revenue
Wholesale revenue from contracts with customers	7.7		5.0
RTO ancillary revenue	15.1		14.8
Capacity revenue	1.8		0.9
Miscellaneous revenue	1.6		3.1
Total revenues	$	197.0	$	172.8

(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.

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Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2022

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Disposal Groups, Including Discontinued Operations [Table Text Block]

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

	Three months ended
	March 31,
$ in millions	2021
Revenues	$	0.9
Operating costs and other expenses	(1.7)
Loss from discontinued operations before income tax	(0.8)
Income tax expense / (benefit) from discontinued operations	(0.2)
Net income / (loss) from discontinued operations	$	(0.6)

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Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) mi² customer segment	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Significant Accounting Policies [Line Items]
Number of reportable segments | segment	1
Cash and Cash Equivalents, at Carrying Value	$ 32.1		$ 26.6
Restricted Cash	0.1		0.1
Excise taxes collected	13.1	$ 12.9
Restricted Cash and Cash Equivalents	32.2	34.2	26.7	$ 25.5
Customer receivables	47.4		42.3
Unbilled Revenue	17.0		19.2
Amounts due from partners in jointly owned stations	3.7		3.1
Due from PJM transmission settlement	1.7		1.7
Other	4.3		5.5
Accounts Receivable, Allowance for Credit Loss	(0.2)		(0.3)
Accounts receivable, net	73.9		71.5
Accounts Receivable, Allowance for Credit Loss, Current	0.2	2.3	0.3	2.8
Accounts Receivable, Credit Loss Expense (Reversal)	(0.1)	0.0
Accounts Receivable, Allowance for Credit Loss, Writeoff	(0.2)	(0.7)
Accounts Receivable, Allowance for Credit Loss, Recovery	0.2	0.2
Interest and Debt Expense	(15.5)	(15.6)
Income Tax Expense (Benefit)	3.7	0.3
Net income	15.4	13.6
Nonoperating Income (Expense)	(15.1)	(15.1)
Income tax benefit from discontinued operations	0.0	(0.2)
Accumulated other comprehensive income	(4.7)		(4.8)
Other Comprehensive Income (Loss), Net of Tax	0.1	0.3
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent	(0.1)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	(0.1)	(0.2)
Other Comprehensive Income (Loss), Defined Benefit Plan, Transition Asset (Obligation), Reclassification Adjustment from AOCI, after Tax	0.2	0.5
Income tax (expense)/benefit on reclassification of earnings related to derivative activity	0.1	0.0
Contract with Customer, Asset, before Allowance for Credit Loss	64.4		61.5
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Significant Accounting Policies [Line Items]
Accumulated other comprehensive income	12.7		12.8
Other Comprehensive Income (Loss), Net of Tax	(0.1)
Change in unfunded pension obligation [Member]
Significant Accounting Policies [Line Items]
Accumulated other comprehensive income	(17.4)		(17.6)
Other Comprehensive Income (Loss), Net of Tax	0.2
Reclassification out of Accumulated Other Comprehensive Income [Member]
Significant Accounting Policies [Line Items]
Net income	0.1	0.3
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Significant Accounting Policies [Line Items]
Interest and Debt Expense	(0.2)	(0.2)
Income Tax Expense (Benefit)		0.0
Net income		(0.2)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Change in unfunded pension obligation [Member]
Significant Accounting Policies [Line Items]
Income Tax Expense (Benefit)		(0.1)
Net income		0.5
Nonoperating Income (Expense)	$ 0.3	0.6
Subsidiaries [Member]
Significant Accounting Policies [Line Items]
Number of reportable segments | segment	1
Cash and Cash Equivalents, at Carrying Value	$ 17.9		14.4
Restricted Cash	$ 0.1		0.1
Approximate number of retail customers | customer	535,000
Service area, square miles | mi²	6,000
Number of Operating Segments | segment	1
Excise taxes collected	$ 13.1	12.9
Restricted Cash and Cash Equivalents	18.0	16.9	14.5	11.8
Customer receivables	46.5		41.6
Unbilled Revenue	17.0		19.2
Amounts due from partners in jointly owned stations	4.3		4.4
Due from PJM transmission settlement	1.7		1.7
Other	4.3		5.3
Accounts Receivable, Allowance for Credit Loss	(0.2)		(0.3)
Accounts receivable, net	73.6		71.9
Accounts Receivable, Allowance for Credit Loss, Current	0.2	2.3	0.3	$ 2.8
Accounts Receivable, Credit Loss Expense (Reversal)	(0.1)	0.0
Accounts Receivable, Allowance for Credit Loss, Writeoff	0.2	0.7
Interest and Debt Expense	(5.9)	(6.0)
Income Tax Expense (Benefit)	(2.7)	(3.2)
Net income	16.9	18.3
Nonoperating Income (Expense)	(6.2)	(6.1)
Accumulated other comprehensive income	(31.1)		(31.8)
Other Comprehensive Income (Loss), Net of Tax	0.7	1.0
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent	(0.7)
Other Comprehensive Income (Loss), Defined Benefit Plan, Transition Asset (Obligation), Reclassification Adjustment from AOCI, after Tax	0.7	1.0
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity	(0.2)	(0.3)
Contract with Customer, Asset, before Allowance for Credit Loss	63.5		$ 60.8
Subsidiaries [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Significant Accounting Policies [Line Items]
Net income	0.7	1.0
Subsidiaries [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Change in unfunded pension obligation [Member]
Significant Accounting Policies [Line Items]
Income Tax Expense (Benefit)		(0.3)
Net income	0.7	1.0
Nonoperating Income (Expense)	$ 0.9	$ 1.3

XML

Regulatory Matters (Details) - USD ($)
$ in Millions

3 Months Ended

Nov. 30, 2020

Mar. 31, 2022

Schedule of Regulatory Assets and Liabilities [Text Block]

Regulatory Matters

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. Certain parties that have intervened in the distribution rate case have argued that ESP 1 incorporates a distribution rate freeze. We are unable to predict the outcome of the distribution rate case, but if the PUCO were to impose a rate freeze that precludes AES Ohio’s ability to implement a distribution rate increase during ESP 1, it could have a material adverse effect on our results of operations, financial condition and cash flows.

Subsidiaries [Member]

Distribution Investment Rider

$ 120.8

Schedule of Regulatory Assets and Liabilities [Text Block]

Regulatory Matters

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. Certain parties that have intervened in the distribution rate case have argued that ESP 1 incorporates a distribution rate freeze. We are unable to predict the outcome of the distribution rate case, but if the PUCO were to impose a rate freeze that precludes AES Ohio’s ability to implement a distribution rate increase during ESP 1, it could have a material adverse effect on our results of operations, financial condition and cash flows.

XML

Fair Value (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Unrealized Gain (Loss) on Investments	$ (0.7)	$ 0.2
Subsidiaries [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Unrealized Gain (Loss) on Investments	$ (0.7)	$ 0.2

XML

Fair Value (Fair Value and Cost of Non-Derivative Instruments) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Long-term Debt	$ 1,396.0	$ 1,395.5
Subsidiaries [Member]
Long-term Debt	574.3	574.3
Cost [Member]
Total Assets	6.0	6.1
Cost [Member] | Subsidiaries [Member]
Total Assets	6.0	6.1
Fair Value [Member]
Total Assets	8.4	9.4
Fair Value [Member] | Subsidiaries [Member]
Total Assets	8.4	9.4
Money Market Funds [Member] | Cost [Member]
6000000	0.4	0.4
Money Market Funds [Member] | Cost [Member] | Subsidiaries [Member]
6000000	0.4	0.4
Money Market Funds [Member] | Fair Value [Member]
Investments, Fair Value Disclosure	0.4	0.4
Money Market Funds [Member] | Fair Value [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	0.4	0.4
Equity Securities [Member] | Cost [Member]
6000000	1.9	1.9
Equity Securities [Member] | Cost [Member] | Subsidiaries [Member]
6000000	1.9	1.9
Equity Securities [Member] | Fair Value [Member]
Investments, Fair Value Disclosure	4.5	5.1
Equity Securities [Member] | Fair Value [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	4.5	5.1
Debt Securities [Member] | Cost [Member]
6000000	3.7	3.8
Debt Securities [Member] | Cost [Member] | Subsidiaries [Member]
6000000	3.7	3.8
Debt Securities [Member] | Fair Value [Member]
Investments, Fair Value Disclosure	3.5	3.9
Debt Securities [Member] | Fair Value [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	3.5	3.9
Debt [Member] | Fair Value [Member]
Debt, Fair Value	1,403.7	1,519.7
Debt [Member] | Fair Value [Member] | Subsidiaries [Member]
Debt, Fair Value	$ 582.8	$ 642.6

XML

Fair Value (Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Level 1 [Member]
Total Assets	$ 0.4	$ 0.4
Total Liabilities	0.0	0.0
Level 1 [Member] | Subsidiaries [Member]
Total Assets	0.4	0.4
Total Liabilities	0.0	0.0
Level 2 [Member]
Total Assets	8.0	9.0
Total Liabilities	1,386.6	1,502.5
Level 2 [Member] | Subsidiaries [Member]
Total Assets	8.0	9.0
Total Liabilities	565.7	625.4
Level 3 [Member]
Total Assets	0.0	0.0
Total Liabilities	17.1	17.2
Level 3 [Member] | Subsidiaries [Member]
Total Assets	0.0	0.0
Total Liabilities	17.1	17.2
Fair Value [Member]
Total Assets	8.4	9.4
Total Liabilities	1,403.7	1,519.7
Fair Value [Member] | Subsidiaries [Member]
Total Assets	8.4	9.4
Total Liabilities	582.8	642.6
Money Market Funds [Member] | Level 1 [Member]
Investments, Fair Value Disclosure	0.4	0.4
Money Market Funds [Member] | Level 1 [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	0.4	0.4
Money Market Funds [Member] | Level 2 [Member]
Investments, Fair Value Disclosure	0.0	0.0
Money Market Funds [Member] | Level 2 [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	0.0	0.0
Money Market Funds [Member] | Level 3 [Member]
Investments, Fair Value Disclosure	0.0	0.0
Money Market Funds [Member] | Level 3 [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	0.0	0.0
Money Market Funds [Member] | Fair Value [Member]
Investments, Fair Value Disclosure	0.4	0.4
Money Market Funds [Member] | Fair Value [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	0.4	0.4
Equity Securities [Member] | Level 1 [Member]
Investments, Fair Value Disclosure	0.0	0.0
Equity Securities [Member] | Level 1 [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	0.0	0.0
Equity Securities [Member] | Level 2 [Member]
Investments, Fair Value Disclosure	4.5	5.1
Equity Securities [Member] | Level 2 [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	4.5	5.1
Equity Securities [Member] | Level 3 [Member]
Investments, Fair Value Disclosure	0.0	0.0
Equity Securities [Member] | Level 3 [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	0.0	0.0
Equity Securities [Member] | Fair Value [Member]
Investments, Fair Value Disclosure	4.5	5.1
Equity Securities [Member] | Fair Value [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	4.5	5.1
Debt Securities [Member] | Level 1 [Member]
Investments, Fair Value Disclosure	0.0	0.0
Debt Securities [Member] | Level 1 [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	0.0	0.0
Debt Securities [Member] | Level 2 [Member]
Investments, Fair Value Disclosure	3.5	3.9
Debt Securities [Member] | Level 2 [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	3.5	3.9
Debt Securities [Member] | Level 3 [Member]
Investments, Fair Value Disclosure	0.0	0.0
Debt Securities [Member] | Level 3 [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	0.0	0.0
Debt Securities [Member] | Fair Value [Member]
Investments, Fair Value Disclosure	3.5	3.9
Debt Securities [Member] | Fair Value [Member] | Subsidiaries [Member]
Investments, Fair Value Disclosure	3.5	3.9
Debt [Member] | Level 1 [Member]
Debt	0.0	0.0
Debt [Member] | Level 1 [Member] | Subsidiaries [Member]
Debt	0.0	0.0
Debt [Member] | Level 2 [Member]
Debt	1,386.6	1,502.5
Debt [Member] | Level 2 [Member] | Subsidiaries [Member]
Debt	565.7	625.4
Debt [Member] | Level 3 [Member]
Debt	17.1	17.2
Debt [Member] | Level 3 [Member] | Subsidiaries [Member]
Debt	17.1	17.2
Debt [Member] | Fair Value [Member]
Debt	1,403.7	1,519.7
Debt [Member] | Fair Value [Member] | Subsidiaries [Member]
Debt	$ 582.8	$ 642.6

XML

Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Interest Rate Contract [Member]
Derivative [Line Items]
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	$ 12.7	$ 12.8	$ 13.4	$ 13.6

XML

Derivative Instruments and Hedging Activities (Gains or Losses Recognized in AOCI for the Cash Flow Hedges) (Details) - Interest Rate Contract [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2022
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Beginning accumulated derivative gain / (loss) in AOCI	$ 13.6
Ending accumulated derivative gain / (loss) in AOCI	13.4
Portion expected to be reclassified to earnings in the next twelve months		$ (0.8)
Interest Expense [Member]
Accumulated Derivative Gain/Loss in AOCI [Roll Forward]
Net gains losses reclassified to earnings	$ (0.2)

XML

Debt (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) fiscal_quarter debt_covenant	Dec. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Long-term Line of Credit	$ 65.0			$ 65.0
Debt Covenant, Leverage Ratio, Maximum	0.67
Debt Covenant, Interest Coverage Ratio, Minimum	1.70
Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum	$ 125.0
Less: current portion	(0.2)			(0.2)
Debt Instrument, Unamortized Discount (Premium), Net	(0.8)			(0.8)
Debt Instrument, Debt Covenant, Total Debt to EBITDA, Borrowing Limit	100.0
Debt Instrument, Debt Covenant, Total Debt to EBITDA, New Borrowing Limit	95.0
Debt Instrument, Debt Covenant, Total Debt to EBITDA, Borrowing Limit Quarterly Reduction	5.0
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
Subsidiaries [Member]
Debt Instrument [Line Items]
Long-term Line of Credit	75.0			0.0
Less: current portion	(0.2)			(0.2)
Deferred Finance Costs, Net, Including Acquisition Adjustments	(5.3)			(5.4)
Debt Instrument, Unamortized Discount (Premium), Net	(2.5)			(2.5)
3.95% Senior Notes due 2049 [Member] | Subsidiaries [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 425.0			425.0
Debt Instrument, Interest Rate, Effective Percentage	3.95%
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 EBITDA to interest calculation | fiscal_quarter	4
Debt Covenant, Interest Coverage Ratio, Minimum	2.50
Revolving Credit Facility [Member] | Subsidiaries [Member]
Debt Instrument [Line Items]
Debt Covenant, Debt to EBITDA Ratio, Maximum	7.00
Debt Covenant, Total Debt to Total Capitalization Ratio, Maximum	0.67
3.25% First Mortgage Bonds due 2040 [Member] | Subsidiaries [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 140.0			140.0
Debt Instrument, Interest Rate, Effective Percentage	3.20%
U.S. Government note maturing in February 2061 - 4.20% [Member] | Subsidiaries [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 17.1			$ 17.2
Debt instrument interest percentage	4.20%

XML

Debt (Long-term Debt) (Details)
$ in Millions

3 Months Ended

Mar. 31, 2022

USD ($)

Dec. 31, 2022

USD ($)

Sep. 30, 2022

USD ($)

Dec. 31, 2021

USD ($)

Debt Instrument [Line Items]

Unamortized deferred finance costs

$ (8.1)

$ (8.6)

Unamortized debt discounts, net

(0.8)

(0.8)

Total long-term debt

1,396.0

1,395.5

Less: current portion

(0.2)

(0.2)

Long-term debt

1,395.8

1,395.3

Long-term Line of Credit

$ 65.0

65.0

Debt Covenant, Interest Coverage Ratio, Minimum

1.70

Debt Instrument, Debt Covenant, EBITDA to Interest Expense, EBITDA Minimum

$ 125.0

Long-term Debt

Long-term Debt

Long-term debt is as follows:

	Interest		March 31,		December 31,
$ in millions	Rate	Maturity	2022		2021
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	17.1		17.2
Unamortized deferred financing costs			(5.3)		(5.4)
Unamortized debt discounts, net			(2.5)		(2.5)
Total long-term debt at AES Ohio			574.3		574.3
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			(8.1)		(8.6)
Unamortized debt discounts, net			(0.8)		(0.8)
Total long-term debt			1,396.0		1,395.5
Less: current portion			(0.2)		(0.2)
Long-term debt, net of current portion			$	1,395.8	$	1,395.3

(a)Note payable to related party.

Lines of credit

As of March 31, 2022 and December 31, 2021, the DPL Credit Agreement had outstanding borrowings of $65.0 million and $65.0 million, respectively. As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings of $75.0 million and $0.0 million, respectively.

Significant transactions

DPL Inc. agreed to register the 2025 DPL Inc. Senior Unsecured Bonds under the Securities Act by filing an exchange offer registration statement or, under specified circumstances, a shelf registration statement with the SEC pursuant to a Registration Rights Agreement dated June 19, 2020. DPL Inc. filed a registration statement on Form S-4 with respect to the 2025 DPL Inc. Senior Unsecured Bonds with the SEC on March 15, 2021, and this registration statement was declared effective on March 31, 2021. The exchange offer closed on May 5, 2021.

Long-term debt covenants and restrictions

The DPL 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 March 31, 2022, DPL was in compliance with this financial covenant.

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 March 31, 2022, DPL Inc. was in compliance with this financial covenant.

The DPL Credit Agreement also restricts dividend payments from DPL Inc. to AES, such that DPL cannot make dividend payments unless at the time of, and/or as a result of the distribution, (i) DPL Inc.’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 March 31, 2022, DPL Inc. was prohibited from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries).

Starting with the quarter ended September 30, 2021, the borrowing limit on the DPL Inc. Credit Agreement will be reduced by $5.0 million per quarter should the Total Debt to EBITDA ratio for the period of four consecutive quarters exceed 7.00 to 1.00. As of March 31, 2022, DPL Inc. exceeded this ratio and the borrowing limit was reduced from $100.0 million to $95.0 million.

The AES Ohio Credit Agreement 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. As of March 31, 2022, AES Ohio was in compliance with this financial covenant.

As of March 31, 2022, DPL and AES Ohio were in compliance with all debt covenants, including the financial covenants described above.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc.

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

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

Subsidiaries [Member]

Debt Instrument [Line Items]

Unamortized deferred finance costs

$ (5.3)

(5.4)

Unamortized debt discounts, net

(2.5)

(2.5)

Total long-term debt at subsidiary

574.3

574.3

Total long-term debt

574.3

574.3

Less: current portion

(0.2)

(0.2)

Long-term debt

574.1

574.1

Long-term Line of Credit

$ 75.0

0.0

Long-term Debt

Long-term Debt

Long-term debt is as follows:

	Interest			March 31,		December 31,
$ in millions	Rate		Maturity	2022		2021
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	17.1		17.2
Unamortized deferred financing costs				(5.3)		(5.4)
Unamortized debt discounts, net				(2.5)		(2.5)
Total long-term debt				574.3		574.3
Less: current portion				(0.2)		(0.2)
Long-term debt, net of current portion				$	574.1	$	574.1

Line of credit

As of March 31, 2022 and December 31, 2021, the AES Ohio Credit Agreement had outstanding borrowings on its line of credit of $75.0 million and $0.0 million, respectively.

Long-term debt covenants and restrictions

The AES Ohio Credit Agreement 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. As of March 31, 2022, AES Ohio was in compliance with this financial covenant.

As of March 31, 2022, AES Ohio was in compliance with all debt covenants, including the financial covenants described above.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL Inc.

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

3.95% Senior Notes due 2049 [Member] | Subsidiaries [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Effective Percentage

3.95%

Long-term Debt, Gross

$ 425.0

425.0

DPL Revolving Credit Agreement and Term Loan Maturing July 2020 [Member]

Debt Instrument [Line Items]

Debt Covenant, Interest Coverage Ratio, Minimum

2.50

U.S. Government note maturing in February 2061 - 4.20% [Member] | Subsidiaries [Member]

Debt Instrument [Line Items]

Debt instrument interest percentage

4.20%

Long-term Debt, Gross

$ 17.1

17.2

4.35% Senior Notes due 2029 [Member]

Debt Instrument [Line Items]

Debt instrument interest percentage

4.35%

Long-term Debt, Gross

$ 400.0

400.0

Note to DPL Capital Trust II Maturing in September 2031 - 8.125% [Member]

Debt Instrument [Line Items]

Debt instrument interest percentage

8.125%

Long-term Debt, Gross

$ 15.6

15.6

4.13% Senior Notes due 2025

Debt Instrument [Line Items]

Debt instrument interest percentage

4.125%

Long-term Debt, Gross

$ 415.0

415.0

3.25% First Mortgage Bonds due 2040 [Member] | Subsidiaries [Member]

Debt Instrument [Line Items]

Debt Instrument, Interest Rate, Effective Percentage

3.20%

Long-term Debt, Gross

$ 140.0

$ 140.0

XML

Income Taxes (Narrative) (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Entity Information [Line Items]
Estimated annual effective income tax rate	(34.80%)
Effective Income Tax Rate Reconciliation, Including Discontinued Operations, Percent	(31.60%)	(3.80%)
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	22.10%
Subsidiaries [Member]
Entity Information [Line Items]
Effective income tax rates		14.90%
Effective Income Tax Rate Reconciliation, Including Discontinued Operations, Percent	13.80%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	22.10%

XML

Benefit Plans (Net Periodic Benefit Cost (Income)) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Pension [Member]
Contributions by employer	$ 7.5	$ 9.8
Service cost	1.3	1.1
Interest cost	2.4	2.0
Expected return on assets	(4.0)	(3.7)
Prior service cost	0.2	0.2
Actuarial loss / (gain)	1.4	2.3
Net periodic benefit cost	1.3	1.9
Postretirement [Member]
Defined Benefit Plan, Funded (Unfunded) Status of Plan	8.8		$ 8.9
Subsidiaries [Member] | Pension [Member]
Contributions by employer	7.5	9.8
Service cost	1.3	1.1
Interest cost	2.4	2.0
Expected return on assets	(4.0)	(3.7)
Prior service cost	0.3	0.3
Actuarial loss / (gain)	1.9	2.8
Net periodic benefit cost	1.9	$ 2.5
Subsidiaries [Member] | Postretirement [Member]
Defined Benefit Plan, Funded (Unfunded) Status of Plan	$ 8.8		$ 8.9

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Benefit Plans (Estimated Future Benefit Payments and Medicare Part D Reimbursements) (Details) - Postretirement [Member] - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Defined Benefit Plan, Funded (Unfunded) Status of Plan	$ 8.8	$ 8.9
Subsidiaries [Member]
Defined Benefit Plan, Funded (Unfunded) Status of Plan	$ 8.8	$ 8.9

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Contractual Obligations, Commercial Commitments and Contingencies (Narrative) (Details) - Subsidiaries [Member] $ in Millions	Mar. 31, 2022 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	$ 54.8
Electric Generation Company [Member]
Public Utility, Property, Plant and Equipment [Line Items]
Debt obligation	$ 1,118.8

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Business Segments (Narrative) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) mi² segment customer	Dec. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Total assets	$ 2,189.7	$ 2,171.8
Subsidiaries [Member]
Segment Reporting Information [Line Items]
Number of Operating Segments | segment	1
Approximate number of retail customers | customer	535,000
Service area, square miles | mi²	6,000
Total assets	$ 2,175.7	2,162.6
Operating Segments [Member] | Utility [Member]
Segment Reporting Information [Line Items]
Total assets		2,162.6
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Total assets	$ 14.0	$ 9.2

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Business Segments (Segment Financial Information) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
External customer revenues	$ 199.3	$ 175.2
Intersegment revenues	0.0	0.0
Total revenues	199.3	175.2
Depreciation and amortization	19.5	19.1
Interest expense	15.5	15.6
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	11.7	13.9
Total assets	2,189.7		$ 2,171.8
Operating Segments [Member] | Utility [Member]
Segment Reporting Information [Line Items]
External customer revenues	196.8	172.6
Intersegment revenues	0.2	0.2
Total revenues	197.0	172.8
Depreciation and amortization	19.2	18.7
Interest expense	5.9	6.0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	19.6	21.5
Total assets			2,162.6
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
External customer revenues	2.5	2.6
Intersegment revenues	0.9	0.9
Total revenues	3.4	3.5
Depreciation and amortization	0.3	0.4
Interest expense	9.6	9.6
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	(7.9)	(7.6)
Total assets	14.0		9.2
Adjustments and Eliminations [Member]
Segment Reporting Information [Line Items]
External customer revenues	0.0	0.0
Intersegment revenues	(1.1)	(1.1)
Total revenues	(1.1)	(1.1)
Depreciation and amortization	0.0	0.0
Interest expense	0.0	0.0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	0.0	0.0
Subsidiaries [Member]
Segment Reporting Information [Line Items]
Depreciation and amortization	19.2	18.7
Interest expense	5.9	6.0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	19.6	$ 21.5
Total assets	$ 2,175.7		$ 2,162.6

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Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Revenue from Contract with Customer, Excluding Assessed Tax	$ 197.7	$ 172.1
RTO Revenue	15.1	14.9
RTO Capacity Revenue	1.8	0.9
Revenues	199.3	175.2
Contract with Customer, Asset, before Allowance for Credit Loss	64.4		$ 61.5
Subsidiaries [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	195.4	169.7
RTO Revenue	15.1	14.8
RTO Capacity Revenue	1.8	0.9
Revenues	197.0	172.8
Contract with Customer, Asset, before Allowance for Credit Loss	63.5		$ 60.8
Utility [Member]
RTO Revenue	15.1	14.8
RTO Capacity Revenue	1.8	0.9
Revenues	197.0	172.8
Corporate and Other
RTO Revenue	0.0	0.1
RTO Capacity Revenue	0.0	0.0
Revenues	3.4	3.5
Adjustments and Eliminations
RTO Revenue	0.0	0.0
RTO Capacity Revenue	0.0	0.0
Revenues	(1.1)	(1.1)
Other Revenues [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	2.5	2.5
Other non-606 revenue	1.6	3.1
Other Revenues [Member] | Subsidiaries [Member]
Other non-606 revenue	1.6	3.1
Other Revenues [Member] | Utility [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0
Other non-606 revenue	1.6	3.1
Other Revenues [Member] | Corporate and Other
Revenue from Contract with Customer, Excluding Assessed Tax	2.5	2.5
Other non-606 revenue	0.9	0.9
Other Revenues [Member] | Adjustments and Eliminations
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0
Other non-606 revenue	(0.9)	(0.9)
Wholesale Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	7.5	4.8
Wholesale Revenue [Member] | Subsidiaries [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	7.7	5.0
Wholesale Revenue [Member] | Utility [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	7.7	5.0
Wholesale Revenue [Member] | Corporate and Other
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0
Wholesale Revenue [Member] | Adjustments and Eliminations
Revenue from Contract with Customer, Excluding Assessed Tax	(0.2)	(0.2)
Retail Revenue [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	170.8	149.0
Retail Revenue [Member] | Residential Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	109.9	98.3
Retail Revenue [Member] | Commercial Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	35.0	27.3
Retail Revenue [Member] | Industrial Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	16.9	12.3
Retail Revenue [Member] | Governmental Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	6.1	7.4
Retail Revenue [Member] | Other Revenues [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	2.9	3.7
Retail Revenue [Member] | Utility [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	170.8	149.0
Retail Revenue [Member] | Utility [Member] | Residential Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	109.9	98.3
Retail Revenue [Member] | Utility [Member] | Commercial Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	35.0	27.3
Retail Revenue [Member] | Utility [Member] | Industrial Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	16.9	12.3
Retail Revenue [Member] | Utility [Member] | Governmental Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	6.1	7.4
Retail Revenue [Member] | Utility [Member] | Other Revenues [Member]
Revenue from Contract with Customer, Excluding Assessed Tax	2.9	3.7
Retail Revenue [Member] | Corporate and Other
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0
Retail Revenue [Member] | Corporate and Other | Residential Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0
Retail Revenue [Member] | Corporate and Other | Commercial Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0
Retail Revenue [Member] | Corporate and Other | Industrial Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0
Retail Revenue [Member] | Corporate and Other | Governmental Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	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
Retail Revenue [Member] | Adjustments and Eliminations
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0
Retail Revenue [Member] | Adjustments and Eliminations | Residential Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0
Retail Revenue [Member] | Adjustments and Eliminations | Commercial Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0
Retail Revenue [Member] | Adjustments and Eliminations | Industrial Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	0.0	0.0
Retail Revenue [Member] | Adjustments and Eliminations | Governmental Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	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

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Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Revenue		$ 0.9
Disposal Group, Including Discontinued Operation, Operating and Other Expenses		(1.7)
Loss from discontinued operations before income taxes	$ 0.0	(0.8)
Income tax benefit from discontinued operations	0.0	(0.2)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	0.0	(0.6)
Cash Provided by (Used in) Operating Activities, Discontinued Operations		(0.2)
Cash Provided by (Used in) Investing Activities, Discontinued Operations		(0.4)
Cash flows from investing activities for discontinued operations		$ (0.4)
Conesville [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Payments for Removal Costs	3.8
Conesville [Member] | Forecast [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Payments for Removal Costs	$ 4.0