Equity

12 Months Ended

Dec. 31, 2022

Entity Information [Line Items]

Equity

SHAREHOLDER'S DEFICIT

Dividend Restrictions

DPL’s Amended Articles of Incorporation (the Articles) and the DPL Credit Agreement contain provisions which state that DPL may not make a distribution to its shareholder or make a loan to any of its affiliates (other than its subsidiaries), unless: (a) there exists no Event of Default (as defined in the Articles) and no such Event of Default would result from the making of the distribution or loan; and either (b)(i) at the time of, and/or as a result of, the distribution or loan, DPL’s leverage ratio does not exceed 0.67 to 1.00 and DPL’s interest coverage ratio is not less than 2.50 to 1.00 or, (b)(ii) if such ratios are not within the parameters, DPL’s senior long-term debt rating from one of the three major credit rating agencies is at least investment grade. Further, the restrictions on the payment of distributions to a shareholder and the making of loans to its affiliates (other than subsidiaries) cease to be in effect if the three major credit rating agencies confirm that a lowering of DPL’s senior long-term debt rating below investment grade by the credit rating agencies would not occur without these restrictions.

As described above, DPL’s Amended Articles of Incorporation and the DPL Credit Agreement contain restrictions on DPL’s ability to make dividends, distributions and affiliate loans (other than to its subsidiaries), including restrictions on making such dividends, distributions and loans if certain financial ratios exceed specified levels and DPL’s senior long-term debt rating from a rating agency is below investment grade. As of December 31, 2022, DPL did not meet these requirements. As a result, as of December 31, 2022, DPL was prohibited under its Articles of Incorporation and Credit Agreement from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries).

Common Stock

Effective on the Merger date, DPL's Amended Articles of Incorporation provided for 1,500 authorized common shares, of which one share is outstanding at December 31, 2022.

AES Ohio has 50,000,000 authorized common shares, of which 41,172,173 are outstanding at December 31, 2022. All common shares are held by AES Ohio’s parent, DPL.

Capital Contributions from AES

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

THE DAYTON POWER AND LIGHT COMPANY [Member]

Entity Information [Line Items]

Equity

SHAREHOLDER'S EQUITY

Common Stock

AES Ohio has 50,000,000 authorized common shares, of which 41,172,173 are outstanding at December 31, 2022. All common shares are held by AES Ohio’s parent, DPL.

Capital Contribution and Returns of Capital

During each of the years ended December 31, 2021 and 2020, DPL made capital contributions of $150.0 million to AES Ohio. The proceeds have enabled AES Ohio to seek to improve its infrastructure and modernize its grid while maintaining liquidity.

Return of capital payments and dividends were declared and paid in the amount of $64.0 million in the year ended December 31, 2022, declared in the amount of $42.0 million and paid in the amount of $52.0 million in the year ended December 31, 2021 and declared in the amount of $52.7 million and paid in the amount of $42.7 million in the year ended December 31, 2020.