Shareholder's Equity

9 Months Ended

Sep. 30, 2018

Class of Stock [Line Items]

Shareholder's Equity

Shareholder's Equity

Capital Contributions from AES

DP&L's approved six-year 2017 ESP restricts DPL from making dividend payments to its parent company, AES, during the term of the ESP, as well as making tax-sharing payments to AES during the term of the DMR. The 2017 ESP also requires that existing tax payments owed by DPL to AES, and similar tax payments that accrue during the term of the DMR, be converted into equity investments in DPL.

For the nine months ended September 30,2018, AES made capital contributions of $30.2 million by converting the amount owed to it by DPL related to tax-sharing payments for current tax liabilities.

THE DAYTON POWER AND LIGHT COMPANY [Member]

Class of Stock [Line Items]

Shareholder's Equity

Shareholder’s Equity

DP&L has 250,000,000 authorized shares of common stock, $0.01 par value, of which 41,172,173 are outstanding at September 30, 2018. All common shares are held by DP&L’s parent, DPL.

As part of the PUCO’s approval of the Merger, DP&L agreed to maintain a capital structure that includes an equity ratio, calculated as total equity divided by total capitalization, of at least 50 percent and to not have a negative retained earnings balance. As of September 30, 2018, DP&L's equity ratio was 42% and retained earnings balance was negative. It is unknown what impact, if any, this will have on DP&L. In the generation separation order dated September 17, 2014, the PUCO permitted DP&L to temporarily maintain long-term debt of $750.0 million or 75% of its rate base, whichever is greater, until January 1, 2018. The order also stated that, if DP&L cannot rebalance its capital structure by January 1, 2018, it should file an application explaining why it was unable to do so and the steps that it was taking to get its equity ratio back to at least 50 percent. DP&L has complied with the PUCO's order by filing such an application. After considering the payments noted in Note 7 – Long-term Debt, DP&L's long-term debt is $594.9 million.

Capital Contribution and Returns of Capital

During the nine months ended September 30, 2018, DP&L received an $80.0 million capital contribution from its parent, DPL. In addition, DP&L made returns of capital payments of $43.8 million to DPL.

During the nine months ended September 30, 2017, DP&L made return of capital payments of $19.0 million to DPL. In addition, DPL made a $70.0 million capital contribution to DP&L during the third quarter of 2017.