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Debt
 12 Months Ended
Dec. 31, 2022
Debt Instrument [Line Items]  
Debt Disclosure DEBT
Long-term debt is as follows:
$ in millionsInterest RateMaturityDecember 31, 2022December 31, 2021
AES Ohio debt
First Mortgage Bonds3.95%2049$425.0 $425.0 
First Mortgage Bonds3.20%2040140.0 140.0 
Tax-exempt First Mortgage Bonds (a)
4.25%2027100.0 — 
Tax-exempt First Mortgage Bonds (b)
4.00%202740.0 — 
U.S. Government note4.20%206117.0 17.2 
Unamortized deferred financing costs(6.9)(5.4)
Unamortized debt discounts and premiums, net(2.4)(2.5)
Total long-term debt at AES Ohio712.7 574.3 
Senior unsecured bonds4.125%2025415.0 415.0 
Senior unsecured bonds4.35%2029400.0 400.0 
Note to DPL Capital Trust II (c)
8.125%203115.6 15.6 
Unamortized deferred financing costs(6.7)(8.6)
Unamortized debt discounts and premiums, net(0.7)(0.8)
Total long-term debt1,535.9 1,395.5 
Less: current portion(0.2)(0.2)
Long-term debt, net of current portion$1,535.7 $1,395.3 

(a)First mortgage bonds issued to the OAQDA, to secure the loan of proceeds from tax-exempt bonds issued by the OAQDA. The bonds have a final maturity date of November 1, 2040 but are subject to a mandatory put in June 2027.
(b)First mortgage bonds issued to the OAQDA, to secure the loan of proceeds from tax-exempt bonds issued by the OAQDA. The bonds have a final maturity date of January 1, 2034 but are subject to a mandatory put in June 2027.
(c)    Note payable to related party. See Note 11 – RELATED PARTY TRANSACTIONS for additional information.

Revolving Credit Agreements
The DPL Credit Agreement is a committed line of credit secured by a pledge of common stock that DPL owns in AES Ohio and is used: (i) to finance capital expenditures; (ii) to refinance certain existing indebtedness, (iii) to support working capital; and (iv) for general corporate purposes. This agreement matures on June 19, 2023, and bears interest at variable rates as described in the agreement. It includes an uncommitted $50.0 million accordion feature to provide DPL with an option to request an increase in the size of the facility, subject to approval by the lenders. At December 31, 2022 and 2021, the DPL Credit Agreement had outstanding borrowings of $35.0 million and $65.0 million, respectively.

AES Ohio entered into a second amendment and restatement of the AES Ohio Credit Agreement on December 22, 2022 with a syndication of bank lenders. The AES Ohio Credit Agreement is an unsecured committed line of credit to be used: (i) to finance capital expenditures; (ii) to refinance certain existing indebtedness, (iii) to support working capital; and (iv) for general corporate purposes. This agreement matures on December 22, 2027, and bears interest at variable rates as described in the agreement. It includes an uncommitted $100.0 million accordion feature to provide AES Ohio with an option to request an increase in the size of the facility, subject to approval by the lenders.
The AES Ohio Credit Agreement also includes two one-year extension options, allowing AES Ohio to extend the maturity date subject to approval by the lenders. At December 31, 2022 and 2021, the AES Ohio Credit Agreement had outstanding borrowings of $120.0 million and $0.0 million, respectively.

Debt Maturities
At December 31, 2022, maturities of long-term debt are summarized as follows:
Due during the years ending December 31,
$ in millions
2023$0.2 
20240.2 
2025415.2 
20260.2 
2027140.2 
Thereafter996.6 
1,552.6 
Unamortized discounts(3.1)
Deferred financing costs, net(13.6)
Total long-term debt$1,535.9 

Significant Transactions
On June 1, 2022, AES Ohio re-issued $140.0 million of tax-exempt OAQDA Collateralized Pollution Revenue Refunding Bonds that had been held in trust, Series 2015A&B. AES Ohio re-issued $140.0 million aggregate principal amount of first mortgage bonds to the OAQDA in two series: $100.0 million Series 2015A bonds at an interest rate of 4.25% and $40.0 million Series 2015B at an interest rate of 4.00% to secure the loan of proceeds from these bonds issued by the OAQDA. These bonds are subject to a mandatory put date of June 1, 2027.

Debt Covenants and Restrictions
The DPL Credit Agreement has two financial covenants. The first financial covenant, minimum EBITDA of $150.0 million, is calculated at the end of each fiscal quarter for the four prior fiscal quarters. As of December 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 2.00 to 1.00. As of December 31, 2022, DPL was in compliance with this financial covenant.

The DPL Credit Agreement also restricts dividend payments from DPL to AES, such that DPL cannot make dividend payments unless at the time of, and/or as a result of the distribution, (i) DPL’s leverage ratio does not exceed 0.67 to 1.00 and DPL’s interest coverage ratio is not less than 2.50 to 1.00 or, if such ratios are not within the parameters, (ii) DPL’s senior long-term debt rating from two of the three major credit rating agencies is at least investment grade. As a result, as of December 31, 2022, DPL 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 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 December 31, 2022, DPL exceeded this ratio and the borrowing limit was reduced from $50.0 million to $45.0 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 by total capitalization. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. As of December 31, 2022 AES Ohio was in compliance with this financial covenant.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends to its parent, DPL. As of December 31, 2022, AES Ohio and DPL were in compliance with all debt covenants, including the financial covenants described above.
Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage.
THE DAYTON POWER AND LIGHT COMPANY [Member]  
Debt Instrument [Line Items]  
Debt DEBT
Long-term debt is as follows:
$ in millionsInterest RateMaturityDecember 31, 2022December 31, 2021
First Mortgage Bonds3.95%2049$425.0 $425.0 
First Mortgage Bonds3.20%2040140.0 140.0 
Tax-exempt First Mortgage Bonds (a)
4.25%2027100.0 — 
Tax-exempt First Mortgage Bonds (b)
4.00%202740.0 — 
U.S. Government note4.20%206117.0 17.2 
Unamortized deferred financing costs(6.9)(5.4)
Unamortized debt discount(2.4)(2.5)
Total long-term debt712.7 574.3 
Less: current portion(0.2)(0.2)
Long-term debt, net of current portion$712.5 $574.1 

(a)First mortgage bonds issued to the OAQDA, to secure the loan of proceeds from tax-exempt bonds issued by the OAQDA. The bonds have a final maturity date of November 1, 2040 but are subject to a mandatory put in June 2027.
(b)First mortgage bonds issued to the OAQDA, to secure the loan of proceeds from tax-exempt bonds issued by the OAQDA. The bonds have a final maturity date of January 1, 2034 but are subject to a mandatory put in June 2027.

Revolving Credit Agreement
AES Ohio entered into a second amendment and restatement of the AES Ohio Credit Agreement on December 22, 2022 with a syndication of bank lenders. The AES Ohio Credit Agreement is an unsecured committed line of credit to be used: (i) to finance capital expenditures; (ii) to refinance certain existing indebtedness, (iii) to support working capital; and (iv) for general corporate purposes. This agreement matures on December 22, 2027, and bears interest
at variable rates as described in the agreement. It includes an uncommitted $100.0 million accordion feature to provide AES Ohio with an option to request an increase in the size of the facility, subject to approval by the lenders. The AES Ohio Credit Agreement also includes two one-year extension options, allowing AES Ohio to extend the maturity date subject to approval by the lenders. At December 31, 2022 and 2021 the AES Ohio Credit Agreement had outstanding borrowings of $120.0 million and $0.0 million, respectively.

Debt Maturities
At December 31, 2022, maturities of long-term debt are summarized as follows:
Due during the years ending December 31,
$ in millions
2023$0.2 
20240.2 
20250.2 
20260.2 
2027140.2 
Thereafter581.0 
722.0 
Unamortized discounts(6.9)
Deferred financing costs, net(2.4)
Total long-term debt$712.7 

Significant Transactions
On June 1, 2022, AES Ohio re-issued $140.0 million of tax-exempt OAQDA Collateralized Pollution Revenue Refunding Bonds that had been held in trust, Series 2015A&B. AES Ohio re-issued $140.0 million aggregate principal amount of first mortgage bonds to the OAQDA in two series: $100.0 million Series 2015A bonds at an interest rate of 4.25% and $40.0 million Series 2015B at an interest rate of 4.00% to secure the loan of proceeds from these bonds issued by the OAQDA. These bonds are subject to a mandatory put date of June 1, 2027.

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 by total capitalization. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. As of December 31, 2022 AES Ohio was in compliance with this financial covenant.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends to its parent, DPL. As of December 31, 2022, AES Ohio was in compliance with all debt covenants, including the financial covenants described above.

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