Income Taxes

9 Months Ended

Sep. 30, 2022

Entity Information [Line Items]

Income Taxes

INCOME TAXESDPL’s provision for income taxes is based on the estimated annual effective tax rate, plus discrete items. The effective combined state and federal income tax rates were 17.2% and 67.7% for the three and nine months ended September 30, 2022, respectively, as compared to (10.4)% and (1.8)% for the three and nine months ended September 30, 2021, 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 or loss.

DPL's income tax expense for the nine months ended September 30, 2022 was calculated using the estimated annual effective income tax rate for 2022 of 69.8% 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 TAXES

AES Ohio's provision for income taxes is based on the estimated annual effective tax rate, plus discrete items. The effective combined state and federal income tax rates were 35.3% and (24.8)% for the three and nine months ended September 30, 2022, respectively, as compared to 16.8% and 13.7% for the three and nine months ended September 30, 2021, 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 or loss.

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