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Debt (Tables)
 3 Months Ended
Mar. 31, 2023
Debt Instrument [Line Items]  
Long-term Debt DEBT
Long-term debt is as follows:
InterestMarch 31,December 31,
$ in millionsRateDue20232022
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 %2027100.0 100.0 
Tax-exempt First Mortgage Bonds (b)
4.00 %202740.0 40.0 
U.S. Government note4.20 %206117.0 17.0 
Unamortized deferred financing costs(6.6)(6.9)
Unamortized debt discounts, net(2.4)(2.4)
Total long-term debt at AES Ohio713.0 712.7 
DPL Inc. debt
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(6.2)(6.7)
Unamortized debt discounts, net(0.7)(0.7)
Total DPL consolidated long-term debt1,536.7 1,535.9 
Less: current portion(0.2)(0.2)
DPL consolidated long-term debt, net of current portion$1,536.5 $1,535.7 

(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.
Revolving Credit Agreements
As of March 31, 2023 and December 31, 2022, the DPL Credit Agreement had outstanding borrowings of $30.0 million and $35.0 million, respectively. As of March 31, 2023 and December 31, 2022, the AES Ohio Credit Agreement had outstanding borrowings of $230.0 million and $120.0 million, respectively.

Significant transactions
On April 13, 2023, AES Ohio issued $100.0 million of First Mortgage Bonds and intends to use the proceeds from the offering to repay amounts outstanding under the AES Ohio Credit Agreement and for general corporate purposes. The new First Mortgage Bonds carry an interest rate of 5.19% and mature on April 13, 2033.

Long-term debt covenants and restrictions
The DPL Credit Agreement has two financial covenants. The first financial covenant, a minimum EBITDA, calculated at the end of each fiscal quarter for the four prior fiscal quarters of $150.0 million. As of March 31, 2023, 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 March 31, 2023, 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 March 31, 2023, 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 March 31, 2023, DPL exceeded this ratio, and the borrowing limit was reduced from $45.0 million to $40.0 million.

The AES Ohio Credit Agreement and Fifty-Third and Fifty-Fourth Supplemental Indentures to the First Mortgage, pursuant to which the 3.20% Bonds due 2040 and the 5.19% Bonds due 2033 were issued, respectively, each contain 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 at the end of the quarter by total capitalization at the end of the quarter. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. As of March 31, 2023, AES Ohio was in compliance with this financial covenant.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL. As of March 31, 2023, DPL and AES Ohio 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.
Schedule of Long-term Debt Instruments :
InterestMarch 31,December 31,
$ in millionsRateDue20232022
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 %2027100.0 100.0 
Tax-exempt First Mortgage Bonds (b)
4.00 %202740.0 40.0 
U.S. Government note4.20 %206117.0 17.0 
Unamortized deferred financing costs(6.6)(6.9)
Unamortized debt discounts, net(2.4)(2.4)
Total long-term debt at AES Ohio713.0 712.7 
DPL Inc. debt
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(6.2)(6.7)
Unamortized debt discounts, net(0.7)(0.7)
Total DPL consolidated long-term debt1,536.7 1,535.9 
Less: current portion(0.2)(0.2)
DPL consolidated long-term debt, net of current portion$1,536.5 $1,535.7 

(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.
Subsidiaries [Member]  
Debt Instrument [Line Items]  
Long-term Debt DEBT
Long-term debt is as follows:
InterestMarch 31,December 31,
$ in millionsRateDue20232022
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 %2027100.0 100.0 
Tax-exempt First Mortgage Bonds (b)
4.00 %202740.0 40.0 
U.S. Government note4.20 %206117.0 17.0 
Unamortized deferred financing costs(6.6)(6.9)
Unamortized debt discounts, net(2.4)(2.4)
Total long-term debt713.0 712.7 
Less: current portion(0.2)(0.2)
Long-term debt, net of current portion$712.8 $712.5 
(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 Agreements
As of March 31, 2023 and December 31, 2022, the AES Ohio Credit Agreement had outstanding borrowings of $230.0 million and $120.0 million, respectively.

Significant transactions
On April 13, 2023, AES Ohio issued $100.0 million of First Mortgage Bonds and intends to use the proceeds from the offering to repay amounts outstanding under the AES Ohio Credit Agreement and for general corporate purposes. The new First Mortgage Bonds carry an interest rate of 5.19% and mature on April 13, 2033.

Long-term debt covenants and restrictions
The AES Ohio Credit Agreement and Fifty-Third and Fifty-Fourth Supplemental Indentures to the First Mortgage, pursuant to which the 3.20% Bonds due 2040 and the 5.19% Bonds due 2033 were issued, respectively, each contain 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 at the end of the quarter by total capitalization at the end of the quarter. AES Ohio’s Total Debt to Total Capitalization ratio shall not be greater than 0.67 to 1.00. As of March 31, 2023, AES Ohio was in compliance with this financial covenant.

As of March 31, 2023, AES Ohio was in compliance with all debt covenants, including the financial covenants described above.

AES Ohio does not have any meaningful restrictions in its debt financing documents prohibiting dividends and return of capital payments to its parent, DPL.

Substantially all property, plant & equipment of AES Ohio is subject to the lien of the mortgage securing AES Ohio’s First and Refunding Mortgage.
Schedule of Long-term Debt Instruments
InterestMarch 31,December 31,
$ in millionsRateDue20232022
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 %2027100.0 100.0 
Tax-exempt First Mortgage Bonds (b)
4.00 %202740.0 40.0 
U.S. Government note4.20 %206117.0 17.0 
Unamortized deferred financing costs(6.6)(6.9)
Unamortized debt discounts, net(2.4)(2.4)
Total long-term debt713.0 712.7 
Less: current portion(0.2)(0.2)
Long-term debt, net of current portion$712.8 $712.5 
(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 Agreements