Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2012

Sep. 30, 2011

Sep. 30, 2012

Sep. 30, 2011

Dec. 31, 2011

Schedule of Notional Amounts of Outstanding Derivative Positions

At September 30, 2012, DPL had the following outstanding derivative instruments:
Commodity	Accounting Treatment		Unit	Purchases (in thousands)		Sales (in thousands)		Net Purchases/ (Sales) (in thousands)
FTRs		Mark to Market	MWh		11.1		-		11.1
Heating Oil Futures		Mark to Market	Gallons		1,932.0		-		1,932.0
Forward Power Contracts		Cash Flow Hedge	MWh		886.2		(3,194.1)		(2,307.9)
Forward Power Contracts		Mark to Market	MWh		2,688.0		(4,877.6)		(2,189.6)
NYMEX-quality Coal Contracts*		Mark to Market	Tons		46.5		-		46.5
Interest Rate Swaps		Cash Flow Hedge	USD	$	160,000.0	$	-	$	160,000.0
*Includes our partners' share for the jointly-owned plants that DP&L operates.
At December 31, 2011, DPL had the following outstanding derivative instruments:
Commodity	Accounting Treatment		Unit	Purchases (in thousands)		Sales (in thousands)		Net Purchases/ (Sales) (in thousands)
FTRs		Mark to Market	MWh		7.1		(0.7)		6.4
Heating Oil Futures		Mark to Market	Gallons		2,772.0		-		2,772.0
Forward Power Contracts		Cash Flow Hedge	MWh		886.2		(341.6)		544.6
Forward Power Contracts		Mark to Market	MWh		1,769.4		(1,739.5)		29.9
NYMEX-quality Coal Contracts*		Mark to Market	Tons		2,015.0		-		2,015.0
Interest Rate Swaps		Cash Flow Hedge	USD	$	160,000.0	$	-	$	160,000.0
*Includes our partners' share for the jointly-owned plants that DP&L operates.

Gains or Losses Recognized in AOCI for the Cash Flow Hedges

	Three Months Ended				Three Months Ended
	September 30, 2012				September 30, 2011
	Successor				Predecessor
			Interest				Interest
$ in millions (net of tax)	Power		Rate Hedge		Power		Rate Hedge
Beginning accumulated derivative gain / (loss) in AOCI	$	(2.4)	$	(4.7)	$	(1.5)	$	12.3
Net gains / (losses) associated with current period hedging transactions		(2.2)		2.5		1.8		(49.8)
Net gains reclassified to earnings
Interest Expense		-		-		-		1.4
Revenues		(0.1)		-		0.1		-
Purchased Power		0.1		-		-		-
Ending accumulated derivative gain / (loss) in AOCI	$	(4.6)	$	(2.2)	$	0.4	$	(36.1)
Net gains / (losses) associated with the ineffective portion of the hedging transaction
Interest Expense	$	-	$	-	$	-	$	3.1
Revenues	$	-	$	-	$	-	$	-
Purchased Power	$	-	$	-	$	-	$	-
Portion expected to be reclassified to earnings in the next twelve months*	$	(7.9)	$	-
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months)		27		12
*The actual amounts that we reclassify from AOCI to earnings related to power can differ from the estimate above due to market price changes.

	Nine Months Ended				Nine Months Ended
	September 30, 2012				September 30, 2011
	Successor				Predecessor
			Interest				Interest
$ in millions (net of tax)	Power		Rate Hedge		Power		Rate Hedge
Beginning accumulated derivative gain / (loss) in AOCI	$	0.3	$	(0.8)	$	(1.8)	$	21.4
Net gains / (losses) associated with current period hedging transactions		(3.8)		(1.7)		0.8		(59.0)
Net gains reclassified to earnings
Interest Expense		-		0.3		-		1.5
Revenues		(0.1)		-		0.8		-
Purchased Power		(1.0)		-		0.6		-
Ending accumulated derivative gain / (loss) in AOCI	$	(4.6)	$	(2.2)	$	0.4	$	(36.1)
Net gains / (losses) associated with the ineffective portion of the hedging transaction
Interest Expense	$	-	$	(1.2)	$	-	$	5.1
Revenues	$	-	$	-	$	-	$	-
Purchased Power	$	-	$	-	$	-	$	-
Portion expected to be reclassified to earnings in the next twelve months*	$	(7.9)	$	-
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months)		27		12
*The actual amounts that we reclassify from AOCI to earnings related to power can differ from the estimate above due to market price changes.

Schedule of Derivative Assets and Liabilities at Fair Value

Fair Values of Derivative Instruments Designated as Hedging Instruments
At September 30, 2012 (Successor)
$ in millions	Fair Value		Balance Sheet Location
Short-term Derivative Positions
Forward Power Contracts in an Asset Position	$	0.4	Other prepayments and current assets
Forward Power Contracts in a Liability Position		(7.3)	Other current liabilities
Total Short-term Cash Flow Hedges		(6.9)
Long-term Derivative Positions
Forward Power Contracts in an Asset Position		0.7	Other deferred assets
Forward Power Contracts in a Liability Position		(3.0)	Other deferred credits
Interest Rate Hedges in a Liability Position		(35.7)	Other deferred credits
Total Long-term Cash Flow Hedges		(38.0)
Total Cash Flow Hedges	$	(44.9)

Fair Values of Derivative Instruments Designated as Hedging Instruments
at December 31, 2011 (Successor)
$ in millions	Fair Value		Balance Sheet Location
Short-term Derivative Positions
Forward Power Contracts in an Asset Position	$	1.5	Other prepayments and current assets
Forward Power Contracts in a Liability Position		(0.2)	Other current liabilities
Total Short-term Cash Flow Hedges		1.3
Long-term Derivative Positions
Forward Power Contracts in an Asset Position		0.1	Other deferred assets
Forward Power Contracts in a Liability Position		(2.6)	Other deferred credits
Interest Rate Hedges in a Liability Position		(32.5)	Other deferred credits
Total Long-term Cash Flow Hedges		(35.0)
Total Cash Flow Hedges	$	(33.7)

Schedule of Gains and Losses on Derivatives Not Designated as Hedging Instruments

For the three months ended September 30, 2012 (Successor)
	NYMEX
$ in millions	Coal		Heating Oil		FTRs		Power		Total
Change in unrealized gain / (loss)	$	15.5	$	-	$	0.1	$	(2.9)	$	12.7
Realized gain / (loss)		(12.8)		0.5		0.1		0.1		(12.1)
Total	$	2.7	$	0.5	$	0.2	$	(2.8)	$	0.6
Recorded on Balance Sheet:
Partners' share of gain / (loss)	$	4.7	$	-	$	-	$	-	$	4.7
Regulatory (asset) / liability		1.2		(0.1)		-		-		1.1
Recorded in Income Statement:  gain / (loss)
Revenue		-		-		-		(2.4)		(2.4)
Purchased Power		-		-		0.2		(0.4)		(0.2)
Fuel		(3.2)		0.5		-		-		(2.7)
O&M		-		0.1		-		-		0.1
Total	$	2.7	$	0.5	$	0.2	$	(2.8)	$	0.6
For the three months ended September 30, 2011 (Predecessor)
	NYMEX
$ in millions	Coal		Heating Oil		FTRs		Power		Total
Change in unrealized gain / (loss)	$	(27.9)	$	(1.6)	$	(0.1)	$	(0.3)	$	(29.9)
Realized gain / (loss)		4.3		0.5		-		1.2		6.0
Total	$	(23.6)	$	(1.1)	$	(0.1)	$	0.9	$	(23.9)
Recorded on Balance Sheet:
Partners' share of gain / (loss)	$	(13.8)	$	-	$	-	$	-	$	(13.8)
Regulatory (asset) / liability		(4.0)		(0.6)		-		-		(4.6)
Recorded in Income Statement:  gain / (loss)
Revenue		-		-		-		(1.6)		(1.6)
Purchased Power		-		-		(0.1)		2.5		2.4
Fuel		(5.8)		(0.5)		-		-		(6.3)
O&M		-		-		-		-		-
Total	$	(23.6)	$	(1.1)	$	(0.1)	$	0.9	$	(23.9)

For the nine months ended September 30, 2012 (Successor)
	NYMEX
$ in millions	Coal		Heating Oil		FTRs		Power		Total
Change in unrealized gain / (loss)	$	13.4	$	(1.5)	$	(0.1)	$	(0.6)	$	11.2
Realized gain / (loss)		(27.2)		1.9		0.5		(4.2)		(29.0)
Total	$	(13.8)	$	0.4	$	0.4	$	(4.8)	$	(17.8)
Recorded on Balance Sheet:
Partners' share of gain / (loss)	$	3.5	$	-	$	-	$	-	$	3.5
Regulatory (asset) / liability		0.9		(0.6)		-		-		0.3
Recorded in Income Statement: gain / (loss)
Revenue		-		-		-		(1.7)		(1.7)
Purchased Power		-		-		0.4		(3.1)		(2.7)
Fuel		(18.2)		0.8		-		-		(17.4)
O&M		-		0.2		-		-		0.2
Total	$	(13.8)	$	0.4	$	0.4	$	(4.8)	$	(17.8)
For the nine months ended September 30, 2011 (Predecessor)
	NYMEX
$ in millions	Coal		Heating Oil		FTRs		Power		Total
Change in unrealized gain / (loss)	$	(41.6)	$	-	$	(0.1)	$	0.6	$	(41.1)
Realized gain / (loss)		8.1		1.5		(0.6)		(0.8)		8.2
Total	$	(33.5)	$	1.5	$	(0.7)	$	(0.2)	$	(32.9)
Recorded on Balance Sheet:
Partners' share of gain / (loss)	$	(21.2)	$	-	$	-	$	-	$	(21.2)
Regulatory (asset) / liability		(5.9)		0.1		-		-		(5.8)
Recorded in Income Statement: gain / (loss)
Revenue		-		-		-		(6.3)		(6.3)
Purchased Power		-		-		(0.7)		6.1		5.4
Fuel		(6.4)		1.3		-		-		(5.1)
O&M		-		0.1		-		-		0.1
Total	$	(33.5)	$	1.5	$	(0.7)	$	(0.2)	$	(32.9)

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

Fair Values of Derivative Instruments Not Designated as Hedging Instruments
At September 30, 2012 (Successor)
$ in millions	Fair Value		Balance Sheet Location
Short-term Derivative Positions
FTRs in an Asset Position	$	0.1	Other prepayments and current assets
FTRs in a Liability Position		(0.1)	Other current liabilities
Forward Power Contracts in an Asset Position		12.0	Other prepayments and current assets
Forward Power Contracts in a Liability Position		(8.3)	Other current liabilities
NYMEX-quality Coal Forwards in a Liability Position		(1.1)	Other current liabilities
Heating Oil Futures in an Asset Position		0.3	Other prepayments and current assets
Total Short-term Derivative MTM Positions		2.9
Long-term Derivative Positions
Forward Power Contracts in an Asset Position		3.7	Other deferred assets
Forward Power Contracts in a Liability Position		(2.4)	Other deferred credits
NYMEX-quality Coal Forwards in a Liability Position		-	Other deferred credits
Heating Oil Futures in an Asset Position		0.1	Other deferred assets
Total Long-term Derivative MTM Positions		1.4
Net MTM Position	$	4.3

Fair Values of Derivative Instruments Not Designated as Hedging Instruments
at December 31, 2011 (Successor)
$ in millions	Fair Value		Balance Sheet Location
Short-term Derivative Positions
FTRs in an Asset Position	$	0.1	Other current liabilities
Forward Power Contracts in an Asset Position		9.9	Other prepayments and current assets
Forward Power Contracts in a Liability Position		(6.5)	Other current liabilities
NYMEX-quality Coal Forwards in a Liability Position		(8.3)	Other current liabilities
Heating Oil Futures in an Asset Position		1.8	Other prepayments and current assets
Total Short-term Derivative MTM Positions		(3.0)
Long-term Derivative Positions
Forward Power Contracts in an Asset Position		5.8	Other deferred assets
Forward Power Contracts in a Liability Position		(4.0)	Other deferred credits
NYMEX-quality Coal Forwards in a Liability Position		(6.2)	Other deferred credits
Total Long-term Derivative MTM Positions		(4.4)
Net MTM Position	$	(7.4)

DP&L [Member]

Schedule of Notional Amounts of Outstanding Derivative Positions

At September 30, 2012, DP&L had the following outstanding derivative instruments:
Commodity	Accounting Treatment		Unit	Purchases (in thousands)		Sales (in thousands)		Net Purchases/ (Sales) (in thousands)
FTRs		Mark to Market	MWh		11.1		-		11.1
Heating Oil Futures		Mark to Market	Gallons		1,932.0		-		1,932.0
Forward Power Contracts		Cash Flow Hedge	MWh		886.2		(3,194.1)		(2,307.9)
Forward Power Contracts		Mark to Market	MWh		2,366.9		(3,955.6)		(1,588.7)
NYMEX-quality Coal Contracts*		Mark to Market	Tons		46.5		-		46.5
*Includes our partners' share for the jointly-owned plants that DP&L operates.
At December 31, 2011, DP&L had the following outstanding derivative instruments:
Commodity	Accounting Treatment		Unit	Purchases (in thousands)		Sales (in thousands)		Net Purchases/ (Sales) (in thousands)
FTRs		Mark to Market	MWh		7.1		(0.7)		6.4
Heating Oil Futures		Mark to Market	Gallons		2,772.0		-		2,772.0
Forward Power Contracts		Cash Flow Hedge	MWh		886.2		(341.6)		544.6
Forward Power Contracts		Mark to Market	MWh		525.1		(525.1)		-
NYMEX-quality Coal Contracts*		Mark to Market	Tons		2,015.0		-		2,015.0
*Includes our partners' share for the jointly-owned plants that DP&L operates.

Gains or Losses Recognized in AOCI for the Cash Flow Hedges

	Three Months Ended				Three Months Ended
	September 30, 2012				September 30, 2011
			Interest				Interest
$ in millions (net of tax)	Power		Rate Hedge		Power		Rate Hedge
Beginning accumulated derivative gain / (loss) in AOCI	$	(3.4)	$	8.6	$	(1.5)	$	11.0
Net gains / (losses) associated with current period hedging transactions		(2.5)		(0.6)		1.8		-
Net gains reclassified to earnings
Interest Expense		-		-		-		(0.6)
Revenues		-		-		0.1		-
Purchased Power		(0.1)		-		-		-
Ending accumulated derivative gain / (loss) in AOCI	$	(6.0)	$	8.0	$	0.4	$	10.4
Net gains / (losses) associated with the ineffective portion of the hedging transaction
Interest Expense	$	-	$	-
Revenues	$	-	$	-
Purchased Power	$	-	$	-
Portion expected to be reclassified to  earnings in the next twelve months*	$	(6.9)	$	(2.4)
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months)		27		-
*The actual amounts that we reclassify from AOCI to earnings related to power can differ from the estimate above due to market price changes.

	Nine Months Ended				Nine Months Ended
	September 30, 2012				September 30, 2011
			Interest				Interest
$ in millions (net of tax)	Power		Rate Hedge		Power		Rate Hedge
Beginning accumulated derivative gain / (loss) in AOCI	$	(0.7)	$	9.8	$	(1.8)	$	12.3
Net gains / (losses) associated with current period hedging transactions		(4.0)		-		0.8		-
Net gains reclassified to earnings
Interest Expense		-		(1.8)		-		(1.9)
Revenues		0.1		-		0.8		-
Purchased Power		(1.4)		-		0.6		-
Ending accumulated derivative gain / (loss) in AOCI	$	(6.0)	$	8.0	$	0.4	$	10.4
Net gains / (losses) associated with the ineffective portion of the hedging transaction
Interest Expense	$	-	$	-
Revenues	$	-	$	-
Purchased Power	$	-	$	-
Portion expected to be reclassified to earnings in the next twelve months*	$	(6.9)	$	(2.4)
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months)		27		-
*The actual amounts that we reclassify from AOCI to earnings related to power can differ from the estimate above due to market price changes.

Schedule of Derivative Assets and Liabilities at Fair Value

Fair Values of Derivative Instruments Designated as Hedging Instruments
at September 30, 2012
$ in millions	Fair Value		Balance Sheet Location
Short-term Derivative Positions
Forward Power Contracts in an Asset Position	$	0.4	Other prepayments and current assets
Forward Power Contracts in a Liability Position		(7.3)	Other current liabilities
Total Short-term Cash Flow Hedges		(6.9)
Long-term Derivative Positions
Forward Power Contracts in an Asset Position		0.7	Other deferred assets
Forward Power Contracts in a Liability Position		(3.0)	Other deferred credits
Total Long-term Cash Flow Hedges		(2.3)
Total Cash Flow Hedges	$	(9.2)

Fair Values of Derivative Instruments Designated as Hedging Instruments
at December 31, 2011
$ in millions	Fair Value		Balance Sheet Location
Short-term Derivative Positions
Forward Power Contracts in an Asset Position	$	1.5	Other prepayments and current assets
Forward Power Contracts in a Liability Position		(0.2)	Other current liabilities
Total Short-term Cash Flow Hedges		1.3
Long-term Derivative Positions
Forward Power Contracts in an Asset Position		0.1	Other deferred assets
Forward Power Contracts in a Liability Position		(2.6)	Other deferred credits
Total Long-term Cash Flow Hedges		(2.5)
Total Cash Flow Hedges	$	(1.2)

Schedule of Gains and Losses on Derivatives Not Designated as Hedging Instruments

For the three months ended September 30, 2012
	NYMEX
$ in millions	Coal		Heating Oil		FTRs		Power		Total
Change in unrealized gain / (loss)	$	15.5	$	-	$	0.1	$	(5.5)	$	10.1
Realized gain / (loss)		(12.8)		0.5		0.1		4.2		(8.0)
Total	$	2.7	$	0.5	$	0.2	$	(1.3)	$	2.1
Recorded on Balance Sheet:
Partners' share of gain / (loss)	$	4.7	$	-	$	-	$	-	$	4.7
Regulatory (asset) / liability		1.2		(0.1)		-		-		1.1
Recorded in Income Statement: gain / (loss)
Revenue		-		-		-		0.3		0.3
Purchased Power		-		-		0.2		(1.6)		(1.4)
Fuel		(3.2)		0.5		-		-		(2.7)
O&M		-		0.1		-		-		0.1
Total	$	2.7	$	0.5	$	0.2	$	(1.3)	$	2.1

For the three months ended September 30, 2011
	NYMEX
$ in millions	Coal		Heating Oil		FTRs		Power		Total
Change in unrealized gain / (loss)	$	(27.9)	$	(1.6)	$	(0.1)	$	0.3	$	(29.3)
Realized gain / (loss)		4.3		0.5		-		(0.3)		4.5
Total	$	(23.6)	$	(1.1)	$	(0.1)	$	-	$	(24.8)
Recorded on Balance Sheet:
Partners' share of gain / (loss)	$	(13.8)	$	-	$	-	$	-	$	(13.8)
Regulatory (asset) / liability		(4.0)		(0.6)		-		-		(4.6)
Recorded in Income Statement: gain / (loss)
Revenue		-		-		-		(0.1)		(0.1)
Purchased Power		-		-		(0.1)		0.1		-
Fuel		(5.8)		(0.5)		-		-		(6.3)
O&M		-		-		-		-		-
Total	$	(23.6)	$	(1.1)	$	(0.1)	$	-	$	(24.8)

For the nine months ended September 30, 2012
	NYMEX
$ in millions	Coal		Heating Oil		FTRs		Power		Total
Change in unrealized gain / (loss)	$	13.4	$	(1.5)	$	(0.1)	$	(4.6)	$	7.2
Realized gain / (loss)		(27.2)		1.9		0.5		4.2		(20.6)
Total	$	(13.8)	$	0.4	$	0.4	$	(0.4)	$	(13.4)
Recorded on Balance Sheet:
Partners' share of gain / (loss)	$	3.5	$	-	$	-	$	-	$	3.5
Regulatory (asset) / liability		0.9		(0.6)		-		-		0.3
Recorded in Income Statement:  gain / (loss)
Revenue		-		-		-		2.0		2.0
Purchased Power		-		-		0.4		(2.4)		(2.0)
Fuel		(18.2)		0.8		-		-		(17.4)
O&M		-		0.2		-		-		0.2
Total	$	(13.8)	$	0.4	$	0.4	$	(0.4)	$	(13.4)

For the nine months ended September 30, 2011
	NYMEX
$ in millions	Coal		Heating Oil		FTRs		Power		Total
Change in unrealized gain / (loss)	$	(41.6)	$	-	$	(0.1)	$	-	$	(41.7)
Realized gain / (loss)		8.1		1.5		(0.6)		(0.8)		8.2
Total	$	(33.5)	$	1.5	$	(0.7)	$	(0.8)	$	(33.5)
Recorded on Balance Sheet:
Partners' share of gain / (loss)	$	(21.2)	$	-	$	-	$	-	$	(21.2)
Regulatory (asset) / liability		(5.9)		0.1		-		-		(5.8)
Recorded in Income Statement:  gain / (loss)
Revenue		-		-		-		(0.2)		(0.2)
Purchased Power		-		-		(0.7)		(0.6)		(1.3)
Fuel		(6.4)		1.3		-		-		(5.1)
O&M		-		0.1		-		-		0.1
Total	$	(33.5)	$	1.5	$	(0.7)	$	(0.8)	$	(33.5)

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

Fair Values of Derivative Instruments Not Designated as Hedging Instruments
at September 30, 2012
$ in millions	Fair Value		Balance Sheet Location
Short-term Derivative Positions
FTRs in an Asset Position	$	0.1	Other prepayments and current assets
FTRs in a Liability Position		(0.1)	Other current liabilities
Forward Power Contracts in an Asset Position		3.0	Other prepayments and current assets
Forward Power Contracts in a Liability Position		(6.1)	Other current liabilities
NYMEX-quality Coal Forwards in a Liability Position		(1.1)	Other current liabilities
Heating Oil Futures in an Asset Position		0.3	Other prepayments and current assets
Total Short-term Derivative MTM Positions		(3.9)
Long-term Derivative Positions
Forward Power Contracts in an Asset Position		0.9	Other deferred assets
Forward Power Contracts in a Liability Position		(2.2)	Other deferred credits
NYMEX-quality Coal Forwards in a Liability Position		-	Other deferred credits
Heating Oil Futures in an Asset Position		0.1	Other deferred assets
Total Long-term Derivative MTM Positions		(1.2)
Net MTM Position	$	(5.1)

Fair Values of Derivative Instruments Not Designated as Hedging Instruments
at December 31, 2011
$ in millions	Fair Value		Balance Sheet Location
Short-term Derivative Positions
FTRs in an Asset Position	$	0.1	Other prepayments and current assets
Forward Power Contracts in an Asset Position		1.0	Other prepayments and current assets
Forward Power Contracts in a Liability Position		(0.9)	Other current liabilities
NYMEX-quality Coal Forwards in a Liability Position		(8.3)	Other current liabilities
Heating Oil Futures in an Asset Position		1.8	Other prepayments and current assets
Total Short-term Derivative MTM Positions		(6.3)
Long-term Derivative Positions
Forward Power Contracts in an Asset Position		1.5	Other deferred assets
Forward Power Contracts in a Liability Position		(1.3)	Other deferred credits
NYMEX-quality Coal Forwards in a Liability Position		(6.2)	Other deferred credits
Total Long-term Derivative MTM Positions		(6.0)
Net MTM Position	$	(12.3)