Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Entity Registrant Name | DPL INC |
Entity Central Index Key | 787250 |
Document Type | 10-K |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -19 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Entity Public Float | $0 |
DPL [Member] | |
Entity Common Stock, Shares Outstanding | 1 |
THE DAYTON POWER AND LIGHT COMPANY [Member] | |
Entity Common Stock, Shares Outstanding | 41,172,173 |
Consolidated_Statements_of_Res
Consolidated Statements of Results of Operations (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
THE DAYTON POWER AND LIGHT COMPANY [Member] | |||
Revenues | $1,668.30 | $1,551.50 | $1,531.80 |
Cost of revenues: | |||
Fuel | 314.9 | 362.5 | 354.9 |
Purchased power | 582.4 | 381.9 | 309.5 |
Total cost of revenues | 897.3 | 744.4 | 664.4 |
Gross margin | 771 | 807.1 | 867.4 |
Operating expenses: | |||
Operation and maintenance | 353.2 | 362.1 | 385.9 |
Depreciation and amortization | 144.8 | 140.2 | 141.3 |
General taxes | 87.7 | 76.4 | 74.4 |
Fixed asset impairment | 86 | 80.8 | |
(Gain) Loss on Sale of Assets and Asset Impairment Charges | -3.5 | 2.5 | 0.2 |
Total operating expenses | 582.2 | 667.2 | 682.6 |
Operating income | 188.8 | 139.9 | 184.8 |
Other income / (expense), net: | |||
Investment income | 0.9 | 2 | 2.3 |
Interest expense | -33.9 | -37.2 | -39.1 |
Other deductions | -1.1 | -2.5 | -1.7 |
Total other income / (expense), net | -34.1 | -37.7 | -38.5 |
Earnings before income tax | 154.7 | 102.2 | 146.3 |
Income tax expense | 39.7 | 18.6 | 55.1 |
Net income | 115 | 83.6 | 91.2 |
Dividends on preferred stock | 0.9 | 0.9 | 0.9 |
Earnings on common stock | 114.1 | 82.7 | 90.3 |
Successor [Member] | |||
Revenues | 1,763 | 1,636.90 | 1,668.40 |
Cost of revenues: | |||
Fuel | 304.5 | 366.7 | 361.9 |
Purchased power | 592.6 | 389 | 342.1 |
Amortization of intangibles | 1.2 | 7.1 | 95.1 |
Total cost of revenues | 898.3 | 762.8 | 799.1 |
Gross margin | 864.7 | 874.1 | 869.3 |
Operating expenses: | |||
Operation and maintenance | 388.3 | 396.7 | 406.4 |
Depreciation and amortization | 139.8 | 132.9 | 125.4 |
General taxes | 91.7 | 80.9 | 79.5 |
Goodwill Impairment | 135.8 | 306.3 | 1,817.20 |
Fixed asset impairment | 11.5 | 26.2 | |
(Gain) Loss on Sale of Assets and Asset Impairment Charges | -3.9 | 2.5 | 0.2 |
Total operating expenses | 763.2 | 945.5 | 2,428.70 |
Operating income | 101.5 | -71.4 | -1,559.40 |
Other income / (expense), net: | |||
Investment income | 0.9 | 1.4 | 2.5 |
Interest expense | -126.6 | -124 | -122.9 |
Charge for early redemption of debt | -30.9 | -2.8 | |
Other deductions | -1.5 | -2.9 | -2.3 |
Total other income / (expense), net | -158.1 | -128.3 | -122.7 |
Earnings before income tax | -56.6 | -199.7 | -1,682.10 |
Income tax expense | 18 | 22.3 | 47.7 |
Net income | ($74.60) | ($222) | ($1,729.80) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income/(Loss) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Available-for-sale securities activity: | |||
Reclassification to earnings of available-for-sale securities, net of income tax expense/(benefit) | ($0.20) | ($1.40) | $0.10 |
Derivative activity: | |||
Reclassification of earnings, net of income tax (expense)/benefit of $0.6 and $(0.3), respectively | -16.9 | -3.4 | 0.5 |
Pension and postretirement activity: | |||
Reclassification to earnings of Pension | -0.3 | ||
Other comprehensive income / (loss) | -17.1 | 28.5 | |
Successor [Member] | |||
Net income | -74.6 | -222 | -1,729.80 |
Available-for-sale securities activity: | |||
Change in fair value of available-for-sale securities | -0.3 | -1.2 | 0.5 |
Reclassification to earnings of available-for-sale securities, net of income tax expense/(benefit) | 0.2 | 1.4 | -0.1 |
Total change in fair value of available-for-sale securities | -0.1 | 0.2 | 0.4 |
Derivative activity: | |||
Change in derivative fair value | -19 | 19.7 | -1.5 |
Reclassification of earnings, net of income tax (expense)/benefit of $0.6 and $(0.3), respectively | 16.9 | 3.4 | -0.5 |
Total change in fair value of derivatives | -2.1 | 23.1 | -2 |
Pension and postretirement activity: | |||
Unrealized losses on pension and postretirement benefits net of income tax benefits | -14.9 | 4.9 | -1.9 |
Reclassification to earnings of Pension | 0.3 | ||
Total change in unfunded pension obligation | -14.9 | 5.2 | -1.9 |
Other comprehensive income / (loss) | -17.1 | 28.5 | -3.5 |
Net comprehensive income / (loss) | -91.7 | -193.5 | -1,733.30 |
THE DAYTON POWER AND LIGHT COMPANY [Member] | |||
Net income | 115 | 83.6 | 91.2 |
Available-for-sale securities activity: | |||
Change in fair value of available-for-sale securities | -0.3 | -1.6 | 0.5 |
Reclassification to earnings of available-for-sale securities, net of income tax expense/(benefit) | 0.2 | 1.4 | -0.1 |
Total change in fair value of available-for-sale securities | -0.1 | -0.2 | 0.4 |
Derivative activity: | |||
Change in derivative fair value | -18.8 | 1 | -3 |
Reclassification of earnings, net of income tax (expense)/benefit of $0.6 and $(0.3), respectively | 15.4 | 2.6 | -3.4 |
Total change in fair value of derivatives | -3.4 | 3.6 | -6.4 |
Pension and postretirement activity: | |||
Prior service cost for the period | 0.5 | 0.8 | |
Unrealized losses on pension and postretirement benefits net of income tax benefits | -12.1 | 4.3 | -1.5 |
Reclassification to earnings of Pension | 3.8 | 2.7 | |
Total change in unfunded pension obligation | -12.1 | 8.6 | 2 |
Other comprehensive income / (loss) | -15.6 | 12 | -4 |
Net comprehensive income / (loss) | $99.40 | $95.60 | $87.20 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | ($0.20) | ($0.70) | |
Income tax (expense)/benefit on reclassification of earnings related to derivative activity | -9.5 | -2.3 | 0.5 |
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity | 0.3 | ||
Successor [Member] | |||
Income tax (expense)/benefit on unrealized gains (losses) related to available-for-sale securities | 0.2 | 0.6 | -0.2 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | -0.2 | -0.7 | |
Income tax (expense)/benefit on unrealized gains (losses) related to derivative activity | 10.3 | -10.6 | 1.4 |
Income tax (expense)/benefit on reclassification of earnings related to derivative activity | -9.5 | -2.3 | 0.4 |
Income tax (expense)/benefit on net loss related to pension and postretirement activity | 8.3 | -2.7 | 1 |
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity | 0.3 | ||
THE DAYTON POWER AND LIGHT COMPANY [Member] | |||
Income tax (expense)/benefit on unrealized gains (losses) related to available-for-sale securities | 0.2 | 0.9 | -0.2 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | -0.2 | -0.7 | |
Income tax (expense)/benefit on unrealized gains (losses) related to derivative activity | 10.5 | -0.6 | 1.6 |
Income tax (expense)/benefit on reclassification of earnings related to derivative activity | -11.5 | -2.5 | 0.5 |
Income tax (expense)/benefit on prior service cost related to pension and postretirement activity | -0.2 | -0.5 | |
Income tax (expense)/benefit on net loss related to pension and postretirement activity | 6.9 | -1.9 | 0.8 |
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity | ($1.90) | ($1.50) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||||
Amortization of intangibles | ($35.20) | [1] | ($30.50) | [1] | |
Cash and cash equivalents: | |||||
Balance at beginning of period | 53.2 | ||||
Cash and cash equivalents at end of period | 17 | 53.2 | |||
THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||
Cash flows from operating activities: | |||||
Net income | 115 | 83.6 | 91.2 | ||
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||||
Depreciation and amortization | 144.8 | 140.2 | 141.3 | ||
Deferred income taxes | 7.5 | -16.8 | 3.6 | ||
Fixed asset impairment | 86 | 80.8 | |||
(Gain) Loss on Sale of Assets and Asset Impairment Charges | -3.5 | 2.5 | 0.2 | ||
Recognition of Deferred SECA Revenue | 17.8 | ||||
Changes in certain assets and liabilities: | |||||
Accounts receivable | -7.1 | 15 | 20.9 | ||
Inventories | -24.6 | 27.2 | 14.2 | ||
Prepaid taxes | -1.1 | 0.4 | 0.1 | ||
Increase (Decrease) in Property and Other Taxes Payable | 6.9 | 1.8 | -5.2 | ||
Deferred regulatory costs, net | 5.4 | 7.8 | -1.5 | ||
Accounts payable | 32.4 | -5.9 | -15.3 | ||
Accrued taxes payable | 9 | -9.1 | -8.5 | ||
Accrued interest payable | 0.1 | -3.4 | 5.2 | ||
Pension, retiree and other benefits | 19.1 | 1.8 | 28.5 | ||
Unamortized investment tax credit | -2.5 | -2.5 | -2.5 | ||
Increase (Decrease) in Deferred Liabilities | -18.1 | 5.9 | -22.1 | ||
Other | -17.8 | 4.4 | 16.3 | ||
Net cash provided by operating activities | 251.7 | 335.3 | 339.8 | ||
Cash flows from investing activities: | |||||
Capital expenditures | -114.2 | -122.1 | -195.5 | ||
Proceeds from Sale of other property assets | 10.7 | 0.8 | 0.2 | ||
Insurance proceeds | 0.9 | 14.2 | |||
Increase (Decrease) in Restricted Cash | -3.7 | -2.3 | 2.9 | ||
Other | 1.3 | -1.2 | 0.3 | ||
Net cash used for investing activities | -108.5 | -114.5 | -197.5 | ||
Cash flows from financing activities: | |||||
Dividends paid on common stock | -159 | -190 | -145 | ||
Dividends paid on preferred stock | -0.9 | -0.9 | -0.9 | ||
Deferred Finance Costs | -0.7 | -10.4 | |||
Payment of long-term debt | -0.1 | -470.1 | -0.1 | ||
Issuance of long-term debt | 445 | ||||
Net cash used for financing activities | -160.7 | -226.4 | -146 | ||
Cash and cash equivalents: | |||||
Net change | -17.5 | -5.6 | -3.7 | ||
Balance at beginning of period | 22.9 | 28.5 | 32.2 | ||
Cash and cash equivalents at end of period | 5.4 | 22.9 | 28.5 | ||
Supplemental cash flow information: | |||||
Interest paid, net of amounts capitalized | 26.6 | 41.5 | 35.1 | ||
Income taxes paid/(refund), net | 0.7 | -20.3 | 61.9 | ||
Non-cash financing and investing activities: | |||||
Accruals for capital expenditures | 16.3 | 14.7 | 16.7 | ||
Successor [Member] | |||||
Cash flows from operating activities: | |||||
Net income | -74.6 | -222 | -1,729.80 | ||
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||||
Depreciation and amortization | 139.8 | 132.9 | 125.4 | ||
Amortization of intangibles | 1.2 | 7.1 | 95.1 | ||
Amortization of debt market value adjustments | 0.3 | -14.4 | -19 | ||
Deferred income taxes | 17.7 | 24 | -4.2 | ||
Fixed asset impairment | 11.5 | 26.2 | |||
(Gain) Loss on Sale of Assets and Asset Impairment Charges | -3.9 | 2.5 | 0.2 | ||
Charge for early redemption of debt | 30.9 | 2.8 | |||
Goodwill Impairment | 135.8 | 306.3 | 1,817.20 | ||
Recognition of Deferred SECA Revenue | 17.8 | ||||
Changes in certain assets and liabilities: | |||||
Accounts receivable | 0.5 | 7.4 | 13.4 | ||
Inventories | -24.9 | 27.4 | 15.6 | ||
Prepaid taxes | -0.9 | 0.7 | |||
Increase (Decrease) in Property and Other Taxes Payable | 7.1 | 1.4 | -7.2 | ||
Deferred regulatory costs, net | 5.4 | 7.6 | -1.1 | ||
Accounts payable | 32.1 | -5.8 | -16.2 | ||
Accrued taxes payable | 20.7 | -5.5 | 5.1 | ||
Accrued interest payable | -1.3 | -3.3 | 1.5 | ||
Pension, retiree and other benefits | 19.1 | 1.8 | 28.5 | ||
Unamortized investment tax credit | -0.5 | -0.5 | -0.3 | ||
Insurance and claims costs | -0.2 | -4.8 | -2.8 | ||
Increase (Decrease) in Deferred Liabilities | -40.6 | 1.5 | -18.6 | ||
Other | -16.9 | 12.3 | -7.9 | ||
Net cash provided by operating activities | 244.1 | 302.8 | 291.5 | ||
Cash flows from investing activities: | |||||
Capital expenditures | -118.1 | -124.4 | -198.1 | ||
Proceeds from Sale of other property assets | 10.7 | 0.8 | 1.1 | ||
Insurance proceeds | 0.3 | 7.6 | |||
Increase (Decrease) in Restricted Cash | -3.3 | -2.8 | 2.9 | ||
Other | 1.3 | -1.2 | 0.3 | ||
Net cash used for investing activities | -112.6 | -123.9 | -199.2 | ||
Cash flows from financing activities: | |||||
Dividends paid on common stock | -64.1 | ||||
Payment to former warrant holders | -9 | ||||
Deferred Finance Costs | -3.6 | -15.3 | -0.8 | ||
Premium paid for early redemption of debt | -29.1 | -2.4 | |||
Payment of long-term debt | -335 | -945.1 | -0.1 | ||
Issuance of long-term debt | 200 | 645 | |||
Withdrawals from revolving credit facilities | 190 | 50 | |||
Repayments of borrowings from revolving credit facilities | -190 | -50 | |||
Contributions to additional paid-in capital from parent | 0.3 | ||||
Net cash used for financing activities | -167.7 | -317.8 | -73.7 | ||
Cash and cash equivalents: | |||||
Net change | -36.2 | -138.9 | 18.6 | ||
Balance at beginning of period | 53.2 | 192.1 | |||
Cash and cash equivalents at end of period | 17 | 53.2 | 192.1 | ||
Supplemental cash flow information: | |||||
Interest paid, net of amounts capitalized | 117.3 | 137.5 | 136.9 | ||
Income taxes paid/(refund), net | 0.7 | -5.2 | 47.6 | ||
Non-cash financing and investing activities: | |||||
Accruals for capital expenditures | 16.3 | 14.7 | 16.7 | ||
Customer Contracts [Member] | |||||
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||||
Amortization of intangibles | -27 | -25.8 | |||
Customer Relationships [Member] | |||||
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||||
Amortization of intangibles | -6.9 | [2] | -4.6 | [2] | |
Other Intangible Assets [Member] | |||||
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||||
Amortization of intangibles | -1.3 | [3] | -0.1 | [3] | |
Affiliated Entity [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||
Cash flows from financing activities: | |||||
Proceeds from Short-term Debt | 15 | ||||
Repayments of Short-term Debt | -15 | ||||
Renewable Energy Certificates [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | |||||
Cash flows from investing activities: | |||||
Payments to Acquire Intangible Assets | -3.5 | -3.9 | -5.4 | ||
Renewable Energy Certificates [Member] | Successor [Member] | |||||
Cash flows from investing activities: | |||||
Payments to Acquire Intangible Assets | ($3.50) | ($3.90) | ($5.40) | ||
[1] | (c)Consists of various intangible assets including renewable energy credits, emission allowances, and other intangibles, none of which are individually significant. | ||||
[2] | Represents above market contracts that DPLER has with third-party customers existing as of the Merger date. | ||||
[3] | (b)Represents relationships DPLER has with third-party customers as of the Merger date, where DPLER has regular contact with the customer, and the customer has the ability to make direct contact with DPLER. |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $17 | $53.20 |
Restricted Cash | 16.8 | 13.5 |
Accounts receivable, net (Note 2) | 200.9 | 203.3 |
Inventories (Note 2) | 100.2 | 82.7 |
Taxes applicable to subsequent years | 77.8 | 70.6 |
Regulatory assets, current (Note 3) | 44.2 | 20.8 |
Other prepayments and current assets | 41.8 | 35.1 |
Total current assets | 498.7 | 479.2 |
Property, plant and equipment: | ||
Property, plant and equipment | 2,759.30 | 2,677 |
Less: Accumulated depreciation and amortization | -318.4 | -206.7 |
Property, plant and equipment, net of depreciation | 2,440.90 | 2,470.30 |
Construction work in process | 76.7 | 63.9 |
Total net property, plant and equipment | 2,517.60 | 2,534.20 |
Other noncurrent assets: | ||
Regulatory assets, non-current (Note 3) | 167.5 | 159.7 |
Goodwill (Note 5) | 317 | 452.8 |
Intangible assets, Net of amortization (Note 5) | 37.4 | |
Other deferred assets | 39.6 | 52.8 |
Total other noncurrent assets | 561.5 | 708.1 |
Total Assets | 3,577.80 | 3,721.50 |
Current liabilities: | ||
Current portion - long-term debt (Note 6) | 20.1 | 10.2 |
Accounts payable | 109.2 | 78.2 |
Accrued taxes | 102.6 | 89.4 |
Accrued interest | 27.2 | 28.5 |
Customer security deposits | 14.4 | 13.9 |
Regulatory liabilities, current (Note 3) | 4.4 | |
Insurance and claims costs | 6.4 | 6.7 |
Other current liabilities | 48.7 | 64.2 |
Total current liabilities | 333 | 291.1 |
Noncurrent liabilities: | ||
Long-term debt (Note 6) | 2,139.60 | 2,284.20 |
Deferred taxes (Note 7) | 587.3 | 564.3 |
Taxes Payable | 80.9 | 79.1 |
Regulatory liabilities, non-current (Note 3) | 124.1 | 121.1 |
Pension, retiree and other benefits (Note 8) | 95.9 | 51.6 |
Unamortized investment tax credit | 2.2 | 2.8 |
Other deferred credits | 48.2 | 69.4 |
Total noncurrent liabilities | 3,078.20 | 3,172.50 |
Redeemable preferred stock of subsidiary | 18.4 | 18.4 |
Common shareholders' equity: | ||
Other paid-in capital | 2,237.40 | 2,237 |
Accumulated other comprehensive loss | 7.5 | 24.6 |
Retained earnings/ (deficit) | -2,096.70 | -2,022.10 |
Total common shareholders' equity | 148.2 | 239.5 |
Total Liabilities and Shareholders' Equity | 3,577.80 | 3,721.50 |
THE DAYTON POWER AND LIGHT COMPANY [Member] | ||
Current assets: | ||
Cash and cash equivalents | 5.4 | 22.9 |
Restricted Cash | 16.7 | 13 |
Accounts receivable, net (Note 2) | 152.7 | 147.5 |
Inventories (Note 2) | 99 | 81.7 |
Taxes applicable to subsequent years | 75.4 | 68.5 |
Regulatory assets, current (Note 3) | 44.2 | 20.8 |
Other prepayments and current assets | 41.1 | 32.5 |
Total current assets | 434.5 | 386.9 |
Property, plant and equipment: | ||
Property, plant and equipment | 5,120.70 | 5,105.30 |
Less: Accumulated depreciation and amortization | -2,495.70 | -2,448.10 |
Property, plant and equipment, net of depreciation | 2,625 | 2,657.20 |
Construction work in process | 75.4 | 60.9 |
Total net property, plant and equipment | 2,700.40 | 2,718.10 |
Other noncurrent assets: | ||
Regulatory assets, non-current (Note 3) | 167.5 | 159.7 |
Intangible assets, Net of amortization (Note 5) | 7.8 | 8.3 |
Other deferred assets | 28.5 | 40.1 |
Total other noncurrent assets | 203.8 | 208.1 |
Total Assets | 3,338.70 | 3,313.10 |
Current liabilities: | ||
Current portion - long-term debt (Note 6) | 0.1 | 0.2 |
Accounts payable | 104.8 | 73.9 |
Accrued taxes | 82.6 | 81 |
Accrued interest | 9.8 | 9.6 |
Customer security deposits | 34.5 | 33.1 |
Regulatory liabilities, current (Note 3) | 4.4 | |
Other current liabilities | 44.8 | 59.7 |
Total current liabilities | 281 | 257.5 |
Noncurrent liabilities: | ||
Long-term debt (Note 6) | 877 | 876.9 |
Deferred taxes (Note 7) | 650 | 632.3 |
Taxes Payable | 78.4 | 76.5 |
Regulatory liabilities, non-current (Note 3) | 124.1 | 121.1 |
Pension, retiree and other benefits (Note 8) | 95.9 | 51.6 |
Unamortized investment tax credit | 22.4 | 24.9 |
Other deferred credits | 43.6 | 45.4 |
Total noncurrent liabilities | 1,891.40 | 1,828.70 |
Redeemable preferred stock of subsidiary | 22.9 | 22.9 |
Common shareholders' equity: | ||
Common stock, at par value of $0.01 per share: | 0.4 | 0.4 |
Other paid-in capital | 803.5 | 803.5 |
Accumulated other comprehensive loss | -42.3 | -26.7 |
Retained earnings/ (deficit) | 381.8 | 426.8 |
Total common shareholders' equity | 1,143.40 | 1,204 |
Total Liabilities and Shareholders' Equity | 3,338.70 | 3,313.10 |
Successor [Member] | ||
Current assets: | ||
Cash and cash equivalents | 17 | 53.2 |
Common shareholders' equity: | ||
Total common shareholders' equity | $148.20 | $239.50 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) | Dec. 31, 2014 |
Consolidated Balance Sheets | |
Common stock, shares authorized | 1,500 |
Common stock, shares outstanding | 1 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | THE DAYTON POWER AND LIGHT COMPANY [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | THE DAYTON POWER AND LIGHT COMPANY [Member] | Common Stock [Member] | Common Stock Held By Employee Plans [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Retained Earnings [Member] | Retained Earnings [Member] | Successor [Member] | Total |
In Millions, except Share data | Common Stock [Member] | Other Paid-In Capital [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Retained Earnings [Member] | USD ($) | Successor [Member] | Successor [Member] | Successor [Member] | Successor [Member] | USD ($) | USD ($) | USD ($) |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||
Balance at Dec. 31, 2010 | ||||||||||||
Capitalization at merger | $2,237.30 | ($0.40) | ($6.20) | $2,230.70 | ||||||||
Balance at Dec. 31, 2011 | 0.4 | 803.2 | -34.7 | 589 | 1,357.90 | |||||||
Balance (in shares) at Dec. 31, 2011 | 41,172,173 | 1 | ||||||||||
Net income | 91.2 | -1,729.80 | ||||||||||
Total comprehensive income / (Loss) | -4 | 91.2 | 87.2 | -3.5 | -1,729.80 | -1,733.30 | ||||||
Common stock dividends | -145 | -145 | -70 | -70 | ||||||||
Preferred stock dividends | -0.9 | -0.9 | ||||||||||
Contribution from Parent | -0.6 | -0.6 | ||||||||||
Other | 0.1 | -0.2 | -0.1 | |||||||||
Balance at Dec. 31, 2012 | 0.4 | 803.3 | -38.7 | 534.1 | 1,299.10 | 2,236.70 | -3.9 | -1,806 | 426.8 | |||
Balance (in shares) at Dec. 31, 2012 | 41,172,173 | 1 | ||||||||||
Net income | 83.6 | -222 | ||||||||||
Total comprehensive income / (Loss) | 12 | 83.6 | 95.6 | 28.5 | -222 | -193.5 | ||||||
Common stock dividends | -190 | -190 | ||||||||||
Preferred stock dividends | -0.9 | -0.9 | ||||||||||
Other | 0.2 | 0.2 | 0.3 | 5.9 | 6.2 | |||||||
Balance at Dec. 31, 2013 | 0.4 | 803.5 | -26.7 | 426.8 | 1,204 | 2,237 | 24.6 | -2,022.10 | 239.5 | 239.5 | ||
Balance (in shares) at Dec. 31, 2013 | 41,172,173 | 1 | ||||||||||
Net income | 115 | -74.6 | ||||||||||
Total comprehensive income / (Loss) | -15.6 | 115 | 99.4 | -17.1 | -74.6 | -91.7 | ||||||
Common stock dividends | -159 | -159 | ||||||||||
Preferred stock dividends | -0.9 | -0.9 | ||||||||||
Other | -0.1 | -0.1 | 0.4 | 0.4 | ||||||||
Balance at Dec. 31, 2014 | $0.40 | $803.50 | ($42.30) | $381.80 | $1,143.40 | $2,237.40 | $7.50 | ($2,096.70) | $148.20 | $148.20 | ||
Balance (in shares) at Dec. 31, 2014 | 41,172,173 | 1 |
Overview_and_Summary_of_Signif
Overview and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Overview and Summary of Significant Accounting Policies | Note 1– Overview and Summary of Significant Accounting Policies | ||||||||||||
Description of Business | |||||||||||||
DPL is a diversified regional energy company organized in 1985 under the laws of Ohio. DPL’s two reportable segments are the Utility segment, comprised of its DP&L subsidiary, and the Competitive Retail segment, comprised of its DPLER subsidiary. See Note 14 for more information relating to these reportable segments. The terms “we,” “us,” “our” and “ours” are used to refer to DPL and its subsidiaries. | |||||||||||||
On November 28, 2011, DPL was acquired by AES in the Merger and DPL became a wholly-owned subsidiary of AES. Following the merger of DPL and Dolphin Subsidiary II, Inc., DPL became an indirectly wholly-owned subsidiary of AES. | |||||||||||||
DP&L is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service, however distribution and transmission retail service are still regulated. DP&L has the exclusive right to provide such service to its approximately 516,000 customers located in West Central Ohio. Additionally, DP&L procures and provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio and generates electricity at five coal-fired power stations. Beginning in 2014, DP&L no longer supplies 100% of the generation for SSO customers and by January 2016, SSO will be 100% competitively bid. Principal industries located in DP&L’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. DP&L's sales reflect the general economic conditions, seasonal weather patterns of the area and the market price of electricity. DP&L sells any excess energy and capacity into the wholesale market. DP&L also sells electricity to DPLER, an affiliate, to satisfy the electric requirements of its retail customers. | |||||||||||||
In accordance with the ESP Order, on December 30, 2013, DP&L filed an application with the PUCO stating its plan to transfer or sell its generation assets. Comments and reply comments were filed. DP&L amended its application on February 25, 2014 and again on May 23, 2014. Additional comments and reply comments were filed. On July 14, 2014, DP&L announced its decision to retain DP&L’s generation assets. On September 17, 2014 the PUCO ordered that DP&L’s application as amended and updated was approved. DP&L is required to sell or transfer its generation assets by January 1, 2017 and continues to look at multiple options to effectuate the separation including transfer into a new unregulated affiliate of DPL or through a sale. | |||||||||||||
DPLER sells competitive retail electric service, under contract, to residential, commercial and industrial customers. DPLER’s operations include those of its wholly-owned subsidiary MC Squared. DPLER has approximately 260,000 customers currently located throughout Ohio and Illinois. Approximately 131,000 of DPLER’s customers are also electric distribution customers of DP&L. DPLER does not own any transmission or generation assets, and purchases all of its electric energy from DP&L to meet its sales obligations. DPLER’s sales reflect the general economic conditions and seasonal weather patterns of the area. | |||||||||||||
DPL’s other significant subsidiaries include DPLE, which owns and operates peaking generating facilities from which it makes wholesale sales of electricity and MVIC, our captive insurance company that provides insurance services to us and our other subsidiaries. All of DPL’s subsidiaries are wholly-owned. | |||||||||||||
DPL also has a wholly-owned business trust, DPL Capital Trust II, formed for the purpose of issuing trust capital securities to investors. | |||||||||||||
DP&L’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators while its generation business is deemed competitive under Ohio law. Accordingly, DP&L applies the accounting standards for regulated operations to its electric transmission and distribution businesses and records regulatory assets when incurred costs are expected to be recovered in future customer rates, and regulatory liabilities when current cost recoveries in customer rates relate to expected future costs. | |||||||||||||
DPL and its subsidiaries employed 1,182 people as of December 31, 2014, of which 1,130 were employed by DP&L. Approximately 61% of all DPL employees are under a collective bargaining agreement which expires on October 31, 2017. | |||||||||||||
Financial Statement Presentation | |||||||||||||
We prepare Consolidated Financial Statements for DPL. DPL’s Consolidated Financial Statements include the accounts of DPL and its wholly-owned subsidiaries except for DPL Capital Trust II which is not consolidated, consistent with the provisions of GAAP. DP&L’s undivided ownership interests in certain coal-fired generating stations are included in the financial statements at amortized cost, which was adjusted to fair value at the Merger date. Operating revenues and expenses are included on a pro rata basis in the corresponding lines in the Consolidated Statement of Operations. See Note 4 for more information. | |||||||||||||
Certain immaterial amounts from prior periods have been reclassified to conform to the current period presentation. | |||||||||||||
All material intercompany accounts and transactions are eliminated in consolidation. | |||||||||||||
The preparation of financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the revenues and expenses of the periods reported. Actual results could differ from these estimates. Significant items subject to such estimates and judgments include: the carrying value of Property, plant and equipment; the valuation of goodwill; unbilled revenues; the valuation of derivative instruments; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; reserves recorded for income tax exposures; litigation; contingencies; the valuation of AROs; assets and liabilities related to employee benefits; goodwill; and intangibles. | |||||||||||||
Valuation of Goodwill | |||||||||||||
FASC 350, “Intangibles – Goodwill and Other”, requires that goodwill be tested for impairment at the reporting unit level at least annually or more frequently if impairment indicators are present. In evaluating the potential impairment of goodwill, we make estimates and assumptions about revenue, operating cash flows, capital expenditures, growth rates and discount rates based on our budgets and long term forecasts, macroeconomic projections, and current market expectations of returns on similar assets. There are inherent uncertainties related to these factors and management’s judgment in applying these factors. Generally, the fair value of a reporting unit is determined using a discounted cash flow valuation model. We could be required to evaluate the potential impairment of goodwill outside of the required annual assessment process if we experience situations, including but not limited to: deterioration in general economic conditions; operating or regulatory environment; increased competitive environment; increase in fuel costs particularly when we are unable to pass its effect to customers; negative or declining cash flows; loss of a key contract or customer particularly when we are unable to replace it on equally favorable terms; or adverse actions or assessments by a regulator. These types of events and the resulting analyses could result in goodwill impairment expense, which could substantially affect our results of operations for those periods. See Note 5 for information regarding the impairments of goodwill in 2014, 2013 and 2012. | |||||||||||||
Revenue Recognition | |||||||||||||
Revenues are recognized from retail and wholesale electricity sales and electricity transmission and distribution delivery services. We consider revenue realized, or realizable, and earned when persuasive evidence of an arrangement exists, the products or services have been provided to the customer, the sales price is fixed or determinable, and collection is reasonably assured. Energy sales to customers are based on the reading of their meters that occurs on a systematic basis throughout the month. We recognize the revenues on our statements of operations using an accrual method for retail and other energy sales that have not yet been billed, but where electricity has been consumed. This is termed “unbilled revenues” and is a widely recognized and accepted practice for utilities. At the end of each month, unbilled revenues are determined by the estimation of unbilled energy provided to customers since the date of the last meter reading, estimated line losses, the assignment of unbilled energy provided to customer classes and the average rate per customer class. | |||||||||||||
All of the power produced at the generation stations is sold to an RTO and we in turn purchase it back from the RTO to supply our customers. The power sales and purchases within DP&L’s service territory are reported on a net hourly basis as revenues or purchased power on our Statements of Operations. We record expenses when purchased electricity is received and when expenses are incurred, with the exception of the ineffective portion of certain power purchase contracts that are derivatives and qualify for hedge accounting. We also have certain derivative contracts that do not qualify for hedge accounting, and their unrealized gains or losses are recorded prior to the receipt of electricity. | |||||||||||||
Allowance for Uncollectible Accounts | |||||||||||||
We establish provisions for uncollectible accounts by using both historical average loss percentages to project future losses and by establishing specific provisions for known credit issues. Amounts are written off when reasonable collections efforts have been exhausted. | |||||||||||||
Sale of Receivables | |||||||||||||
DPLER and its subsidiary MC Squared sell receivables from their customers. These sales are at face value for cash at the billed amounts for their customers’ use of energy. Total receivables sold during the years ended December 31, 2014 and 2013 were $125.6 million and $96.1 million, respectively. | |||||||||||||
Property, Plant and Equipment | |||||||||||||
We record our ownership share of our undivided interest in jointly-held stations as an asset in property, plant and equipment. New property, plant and equipment additions are stated at cost. For regulated transmission and distribution property, cost includes direct labor and material, allocable overhead expenses and an allowance for funds used during construction (AFUDC). AFUDC represents the cost of borrowed funds and equity used to finance regulated construction projects. For non-regulated property, cost also includes capitalized interest. Capitalization of AFUDC and interest ceases at either project completion or at the date specified by regulators. AFUDC and capitalized interest was $1.5 million, $1.5 million and $4.0 million in the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
For unregulated generation property, cost includes direct labor and material, allocable overhead expenses and interest capitalized during construction using the provisions of GAAP relating to the accounting for capitalized interest. | |||||||||||||
For substantially all depreciable property, when a unit of property is retired, the original cost of that property less any salvage value is charged to Accumulated depreciation and amortization. | |||||||||||||
Property is evaluated for impairment when events or changes in circumstances indicate that its carrying amount may not be recoverable. | |||||||||||||
Repairs and Maintenance | |||||||||||||
Costs associated with maintenance activities, primarily power station outages, are recognized at the time the work is performed. These costs, which include labor, materials and supplies, and outside services required to maintain equipment and facilities, are capitalized or expensed based on defined units of property. | |||||||||||||
Depreciation – Changes in Estimates | |||||||||||||
Depreciation expense is calculated using the straight-line method, which allocates the cost of property over its estimated useful life. For DPL’s generation, transmission and distribution assets, straight-line depreciation is applied monthly on an average composite basis using group rates. | |||||||||||||
During the fourth quarter of 2013, the Company tested the recoverability of long-lived assets at certain generating stations. See Note 15 for more information. Gradual decreases in power prices as well as lower estimates of future capacity prices in conjunction with the DP&L reporting unit of DPL failing step 1 of the annual goodwill impairment test were collectively determined to be an impairment indicator. | |||||||||||||
For DPL’s generation, transmission, and distribution assets, straight-line depreciation is applied on an average annual composite basis using group rates that approximated 5.3% in 2014, 5.8% in 2013 and 4.8% in 2012. | |||||||||||||
The following is a summary of DPL’s Property, plant and equipment with corresponding composite depreciation rates at December 31, 2014 and 2013: | |||||||||||||
December 31, | |||||||||||||
$ in millions | 2014 | Composite Rate | 2013 | Composite Rate | |||||||||
Regulated: | |||||||||||||
Transmission | $ | 227.5 | 4.10% | $ | 213.1 | 4.10% | |||||||
Distribution | 1,011.7 | 5.40% | 970.1 | 5.60% | |||||||||
General | 62.5 | 12.40% | 56.8 | 12.10% | |||||||||
Non-depreciable | 61.6 | N/A | 60.8 | N/A | |||||||||
Total regulated | 1,363.3 | 1,300.8 | |||||||||||
Unregulated: | |||||||||||||
Production / Generation | 1,354.9 | 5.40% | 1,340.8 | 6.20% | |||||||||
Other | 21.3 | 8.10% | 15.7 | 8.90% | |||||||||
Non-depreciable | 19.8 | N/A | 19.7 | N/A | |||||||||
Total unregulated | 1,396.0 | 1,376.2 | |||||||||||
Total property, plant and equipment in service | $ | 2,759.3 | 5.30% | $ | 2,677.0 | 5.80% | |||||||
AROs | |||||||||||||
We recognize AROs in accordance with GAAP which requires legal obligations associated with the retirement of long-lived assets to be recognized at their fair value at the time those obligations are incurred. Upon initial recognition of a legal liability, costs are capitalized as part of the related long-lived asset and depreciated over the useful life of the related asset. Our legal obligations associated with the retirement of our long-lived assets consists primarily of river intake and discharge structures, coal unloading facilities, loading docks, ice breakers and ash disposal facilities. Our generation AROs are recorded within Other deferred credits on the consolidated balance sheets. | |||||||||||||
Estimating the amount and timing of future expenditures of this type requires significant judgment. Management routinely updates these estimates as additional information becomes available. | |||||||||||||
Changes in the Liability for Generation AROs | |||||||||||||
$ in millions | |||||||||||||
Balance at December 31, 2012 | $ | 23.9 | |||||||||||
Calendar 2013 | |||||||||||||
Accretion expense | 0.8 | ||||||||||||
Settlements | -0.3 | ||||||||||||
Balance at December 31, 2013 | 24.4 | ||||||||||||
Calendar 2014 | |||||||||||||
Additions | 3.6 | ||||||||||||
Accretion expense | 0.9 | ||||||||||||
Settlements | -2 | ||||||||||||
Balance at December 31, 2014 | $ | 26.9 | |||||||||||
Asset Removal Costs | |||||||||||||
We continue to record costs of removal for our regulated transmission and distribution assets through our depreciation rates and recover those amounts in rates charged to our customers. There are no known legal AROs associated with these assets. We have recorded $119.3 million and $115.0 million in estimated costs of removal at December 31, 2014 and 2013, respectively, as regulatory liabilities for our transmission and distribution property. These amounts represent the excess of the cumulative removal costs recorded through depreciation rates versus the cumulative removal costs actually incurred. See Note 3 for additional information. | |||||||||||||
Changes in the Liability for Transmission and Distribution Asset Removal Costs | |||||||||||||
$ in millions | |||||||||||||
Balance at December 31, 2012 | $ | 112.1 | |||||||||||
Calendar 2013 | |||||||||||||
Additions | 22.0 | ||||||||||||
Settlements | -19.1 | ||||||||||||
Balance at December 31, 2013 | 115.0 | ||||||||||||
Calendar 2014 | |||||||||||||
Additions | 19.6 | ||||||||||||
Settlements | -15.3 | ||||||||||||
Balance at December 31, 2014 | $ | 119.3 | |||||||||||
Regulatory Accounting | |||||||||||||
As a regulated utility, we apply the provisions of FASC 980 “Regulated Operations,” which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory assets have been included as allowable costs for ratemaking purposes, as authorized by the PUCO or established regulatory practices. Regulatory liabilities generally represent obligations to make refunds or future rate reductions to customers for previous over collections or the deferral of revenues collected for costs that DPL expects to incur in the future. | |||||||||||||
The deferral of costs (as regulatory assets) is appropriate only when the future recovery of such costs is probable. In assessing probability, we consider such factors as specific orders from the PUCO or FERC, regulatory precedent and the current regulatory environment. To the extent recovery of costs is no longer deemed probable, related regulatory assets would be required to be expensed in current period earnings. Our regulatory assets and liabilities have been created pursuant to a specific order of the PUCO or FERC or established regulatory practices, such as other utilities under the jurisdiction of the PUCO or FERC being granted recovery of similar costs. It is probable, but not certain, that these regulatory assets will be recoverable, subject to PUCO or FERC approval. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 3 for more information about Regulatory Assets and Liabilities. | |||||||||||||
Inventories | |||||||||||||
Inventories are carried at average cost and include coal, limestone, oil and gas used for electric generation, and materials and supplies used for utility operations. | |||||||||||||
Intangibles | |||||||||||||
Intangibles include emission allowances, renewable energy credits, customer relationships, customer contracts and trademark/trade name. Emission allowances are carried on a first-in, first-out (FIFO) basis for purchased emission allowances. Net gains or losses on the sale of excess emission allowances, representing the difference between the sales proceeds and the cost of emission allowances, are recorded as a component of our fuel costs and are reflected in Operating income when realized. | |||||||||||||
Customer relationships recognized as part of the purchase accounting are amortized over nine to fifteen years and customer contracts are amortized over the average length of the contracts. Emission allowances are amortized as they are used in our operations on a FIFO basis. Renewable energy credits are amortized as they are used or retired. Trademark/trade name have an indefinite life and accordingly are not amortized. See Note 5 for additional information. | |||||||||||||
Income Taxes | |||||||||||||
Income taxes are accounted in accordance with FASC 740, “Income Taxes”, which requires an asset and liability approach for financial accounting and reporting of income taxes with tax effects of differences, based on currently enacted income tax rates, between the financial reporting and tax basis of accounting reported as deferred tax assets or liabilities in the balance sheets. Valuation allowances are provided against deferred tax assets unless it is more likely than not that the asset will be realized. | |||||||||||||
Investment tax credits, which have been used to reduce federal income taxes payable, are deferred for financial reporting purposes and are amortized over the useful lives of the property to which they relate. For rate-regulated operations, additional deferred income taxes and offsetting regulatory assets or liabilities are recorded to recognize that income taxes will be recoverable or refundable through future revenues. | |||||||||||||
DPL and its subsidiaries file U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 7 for additional information. | |||||||||||||
Financial Instruments | |||||||||||||
We classify our investments in debt and equity financial instruments of publicly traded entities into different categories: held-to-maturity and available-for-sale. Available-for-sale securities are carried at fair value and unrealized gains and losses on those securities, net of deferred income taxes, are presented as a separate component of shareholders’ equity. Other than temporary declines in value are recognized currently in earnings. Financial instruments classified as held-to-maturity are carried at amortized cost. The cost basis for public equity security and fixed maturity investments is average cost and amortized cost, respectively. | |||||||||||||
Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities | |||||||||||||
DP&L collects certain excise taxes levied by state or local governments from its customers. DP&L’s excise taxes and certain other taxes are accounted for on a net basis and recorded as a reduction in revenues in the accompanying Statements of Operations. The amounts for the years ended December 31, 2014, 2013 and 2012, were $50.8 million, $50.5 million and $50.5 million, respectively. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents. | |||||||||||||
Restricted Cash | |||||||||||||
Restricted cash includes cash which is restricted as to withdrawal or usage. The nature of the restrictions include restrictions imposed by agreements related to deposits held as collateral. | |||||||||||||
Financial Derivatives | |||||||||||||
All derivatives are recognized as either assets or liabilities in the balance sheets and are measured at fair value. Changes in the fair value are recorded in earnings unless the derivative is designated as a cash flow hedge of a forecasted transaction or it qualifies for the normal purchases and sales exception. | |||||||||||||
We use forward contracts to reduce our exposure to changes in energy and commodity prices and as a hedge against the risk of changes in cash flows associated with expected electricity purchases. These purchases are used to hedge our full load requirements. We also hold forward sales contracts that hedge against the risk of changes in cash flows associated with power sales during periods of projected generation facility availability. We use cash flow hedge accounting when the hedge or a portion of the hedge is deemed to be highly effective, which results in changes in fair value being recorded within accumulated other comprehensive income, a component of shareholder’s equity. We have elected not to offset net derivative positions in the financial statements. Accordingly, we do not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 10 for additional information. | |||||||||||||
Insurance and Claims Costs | |||||||||||||
In addition to insurance obtained from third-party providers, MVIC, a wholly-owned captive subsidiary of DPL, provides insurance coverage solely to us, our subsidiaries and, in some cases, our partners in commonly-owned facilities we operate, for workers’ compensation, general liability, and property damage on an ongoing basis. MVIC maintains an active run-off policy for directors’ and officers’ liability and fiduciary through their expiration in 2017 and may or may not be renewed at that time. DP&L is responsible for claim costs below certain coverage thresholds of MVIC for the insurance coverage noted above. In addition, DP&L has estimated liabilities for medical, life, and disability reserves for claims costs below certain coverage thresholds of third-party providers. We record these additional insurance and claims costs of approximately $15.6 million and $18.8 million at December 31, 2014 and 2013, respectively, within Other current liabilities and Other deferred credits on the balance sheets. The estimated liabilities for workers’ compensation, medical, life and disability costs at DP&L are actuarially determined using certain assumptions. There is uncertainty associated with these loss estimates and actual results may differ from the estimates. Modification of these loss estimates based on experience and changed circumstances is reflected in the period in which the estimate is re-evaluated. | |||||||||||||
Pension and Postretirement Benefits | |||||||||||||
We account for and disclose pension and postemployment benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postemployment plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost, and funding requirements of the plans. | |||||||||||||
Related Party Transactions | |||||||||||||
In December 2013, an agreement was signed, effective January 1, 2014, whereby the Service Company began providing services including accounting, legal, human resources, information technology and other corporate services on behalf of companies that are part of the U.S. SBU, including, among other companies, DPL and DP&L. The Service Company allocates the costs for these services based on cost drivers designed to result in fair and equitable allocations. This includes ensuring that the regulated utilities served, including DP&L, are not subsidizing costs incurred for the benefit of non-regulated businesses. | |||||||||||||
The following table provides a summary of these transactions: | |||||||||||||
For the year ended | |||||||||||||
December 31, | |||||||||||||
$ in millions | 2014 | 2013 | |||||||||||
Transactions with the Service Company | |||||||||||||
Charges for services provided | $ | 35.8 | $ | - | |||||||||
Charges to the Service Company | $ | 0.1 | $ | - | |||||||||
Transactions with the Service Company: | At December 31, 2014 | At December 31, 2013 | |||||||||||
Net payable to the Service Company | $ | -4.7 | $ | - | |||||||||
DPL Capital Trust II | |||||||||||||
DPL has a wholly-owned business trust, DPL Capital Trust II (the Trust), formed for the purpose of issuing trust capital securities to third-party investors. Effective in 2003, DPL deconsolidated the Trust upon adoption of the accounting standards related to variable interest entities and currently treats the Trust as a nonconsolidated subsidiary. The Trust holds mandatorily redeemable trust capital securities. The investment in the Trust, which amounts to $0.3 million and $0.4 million at December 31, 2014 and 2013, respectively, is included in Other deferred assets within Other noncurrent assets. DPL also has a note payable to the Trust amounting to $14.9 million at December 31, 2014 and 2013, respectively that was established upon the Trust’s deconsolidation in 2003. See Note 6 for additional information. | |||||||||||||
In addition to the obligations under the note payable mentioned above, DPL also agreed to a security obligation which represents a full and unconditional guarantee of payments to the capital security holders of the Trust. | |||||||||||||
Recently Adopted Accounting Standards | |||||||||||||
Discontinued Operations | |||||||||||||
The FASB recently issued ASU 2014-08 “Presentation of Financial Statements” (Topic 205) and “Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” effective for annual and interim periods beginning after December 15, 2014. ASU 2014-08 updates the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. In addition, an entity is required to expand disclosures for discontinued operations by providing more information about the assets, liabilities, revenues and expenses of discontinued operations both on the face of the financial statements and in the Notes. For the disposal of an individually significant component of an entity that does not qualify for discontinued operations reporting, an entity is required to disclose the pretax profit or loss of the component in the Notes. Our early adoption of ASU No. 2014-008 in the third quarter of 2014 did not have any impact on our overall results of operations, financial position or cash flows. | |||||||||||||
Recently Issued Accounting Standards | |||||||||||||
Going Concern | |||||||||||||
The FASB recently issued ASU 2014-15 “Presentation of Financial Statements – Going Concern (Subtopic 205-40: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern)” effective for annual and interim periods ending after December 15, 2016. ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. There are required disclosures if substantial doubt is identified including documentation of: principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans), management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern. This ASU is not expected to have any impact on our overall results of operations, financial position or cash flows. | |||||||||||||
Revenue from Contracts with Customers | |||||||||||||
The FASB recently issued ASU 2014-09 “Revenue from Contracts with Customers” (Topic 606) effective for annual and interim periods beginning after December 15, 2016; with retrospective application. The core principle of the ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Because the guidance in this update is principles-based, it can be applied to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. We have not yet determined the extent, if any, to which our overall results of operations, financial position or cash flows may be affected by the implementation of this ASU. | |||||||||||||
DP&L [Member] | |||||||||||||
Overview and Summary of Significant Accounting Policies | Note 1 – Overview and Summary of Significant Accounting Policies | ||||||||||||
Description of Business | |||||||||||||
DP&L is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service, however distribution and transmission retail service are still regulated. DP&L has the exclusive right to provide such service to its more than 516,000 customers located in West Central Ohio. Additionally, DP&L procures and provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio and generates electricity at five coal-fired power stations. Beginning in 2014, DP&L no longer supplies 100% of the generation for SSO customers and by January 2016, SSO will be 100% competitively bid. Principal industries located in DP&L’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. DP&L's sales reflect the general economic conditions, seasonal weather patterns of the area and the market price of electricity. DP&L sells any excess energy and capacity into the wholesale market. DP&L also sells electricity to DPLER, an affiliate, to satisfy the electric requirements of its retail customers. | |||||||||||||
In accordance with the ESP Order, on December 30, 2013, DP&L filed an application with the PUCO stating its plan to transfer or sell its generation assets. Comments and reply comments were filed. DP&L amended its application on February 25, 2014 and again on May 23, 2014. Additional comments and reply comments were filed. On July 14, 2014, DP&L announced its decision to retain DP&L’s generation assets. On September 17, 2014 the PUCO ordered that DP&L’s application as amended and updated was approved. DP&L is required to sell or transfer its generation assets by January 1, 2017 and continues to look at multiple options to effectuate the separation including transfer into a new unregulated affiliate of DPL or through a sale. | |||||||||||||
On November 28, 2011, DP&L’s parent company DPL was acquired by AES in the Merger and DPL became a wholly-owned subsidiary of AES. Following the Merger of DPL and Dolphin Subsidiary II, Inc., DPL became an indirectly wholly-owned subsidiary of AES. | |||||||||||||
DP&L’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators while its generation business is deemed competitive under Ohio law. Accordingly, DP&L applies the accounting standards for regulated operations to its electric transmission and distribution businesses and records regulatory assets when incurred costs are expected to be recovered in future customer rates, and regulatory liabilities when current cost recoveries in customer rates relate to expected future costs. | |||||||||||||
DP&L employed 1,130 people as of December 31, 2014. Approximately 64% of all employees are under a collective bargaining agreement which expires on October 31, 2017. | |||||||||||||
Financial Statement Presentation | |||||||||||||
DP&L does not have any subsidiaries. DP&L has undivided ownership interests in five electric generating facilities and numerous transmission facilities. These undivided interests in jointly-owned facilities are accounted for on a pro rata basis in DP&L’s Financial Statements. | |||||||||||||
Certain immaterial amounts from prior periods have been reclassified to conform to the current period presentation. | |||||||||||||
The preparation of financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the revenues and expenses of the periods reported. Actual results could differ from these estimates. Significant items subject to such estimates and judgments include: the carrying value of Property, plant and equipment; unbilled revenues; the valuation of derivative instruments; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; Regulatory assets and liabilities; reserves recorded for income tax exposures; litigation; contingencies; the valuation of AROs; and assets and liabilities related to employee benefits. | |||||||||||||
Revenue Recognition | |||||||||||||
Revenues are recognized from retail and wholesale electricity sales and electricity transmission and distribution delivery services. We consider revenue realized, or realizable, and earned when persuasive evidence of an arrangement exists, the products or services have been provided to the customer, the sales price is fixed or determinable, and collection is reasonably assured. Energy sales to customers are based on the reading of their meters that occurs on a systematic basis throughout the month. We recognize the revenues on our statements of results of operations using an accrual method for retail and other energy sales that have not yet been billed, but where electricity has been consumed. This is termed “unbilled revenues” and is a widely recognized and accepted practice for utilities. At the end of each month, unbilled revenues are determined by the estimation of unbilled energy provided to customers since the date of the last meter reading, estimated line losses, the assignment of unbilled energy provided to customer classes and the average rate per customer class. | |||||||||||||
All of the power produced at the generation stations is sold to an RTO and we in turn purchase it back from the RTO to supply our customers. The power sales and purchases within DP&L’s service territory are reported on a net hourly basis as revenues or purchased power on our statements of results of operations. We record expenses when purchased electricity is received and when expenses are incurred, with the exception of the ineffective portion of certain power purchase contracts that are derivatives and qualify for hedge accounting. We also have certain derivative contracts that do not qualify for hedge accounting, and their unrealized gains or losses are recorded prior to the receipt of electricity. | |||||||||||||
Allowance for Uncollectible Accounts | |||||||||||||
We establish provisions for uncollectible accounts by using both historical average loss percentages to project future losses and by establishing specific provisions for known credit issues. Amounts are written off when reasonable collections efforts have been exhausted. | |||||||||||||
Property, Plant and Equipment | |||||||||||||
We record our ownership share of our undivided interest in jointly-held stations as an asset in property, plant and equipment. Property, plant and equipment are stated at cost. For regulated transmission and distribution property, cost includes direct labor and material, allocable overhead expenses and an allowance for funds used during construction (AFUDC). AFUDC represents the cost of borrowed funds and equity used to finance regulated construction projects. For non-regulated property, cost also includes capitalized interest. Capitalization of AFUDC and interest ceases at either project completion or at the date specified by regulators. AFUDC and capitalized interest was $1.5 million, $1.5 million, and $4.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
For unregulated generation property, cost includes direct labor and material, allocable overhead expenses and interest capitalized during construction using the provisions of GAAP relating to the accounting for capitalized interest. | |||||||||||||
For substantially all depreciable property, when a unit of property is retired, the original cost of that property less any salvage value is charged to Accumulated depreciation and amortization. | |||||||||||||
Property is evaluated for impairment when events or changes in circumstances indicate that its carrying amount may not be recoverable. | |||||||||||||
Repairs and Maintenance | |||||||||||||
Costs associated with maintenance activities, primarily station outages, are recognized at the time the work is performed. These costs, which include labor, materials and supplies, and outside services required to maintain equipment and facilities, are capitalized or expensed based on defined units of property. | |||||||||||||
Depreciation – Changes in Estimates | |||||||||||||
Depreciation expense is calculated using the straight-line method, which allocates the cost of property over its estimated useful life. For DP&L’s generation, transmission and distribution assets, straight-line depreciation is applied monthly on an average composite basis using group rates. | |||||||||||||
During the fourth quarter of 2013, the Company tested the recoverability of long-lived assets at certain generating stations. See Note 13 for more information. Gradual decreases in power prices as well as lower estimates of future capacity prices in conjunction with the DP&L reporting unit of DPL failing step 1 of the annual goodwill impairment test were collectively determined to be an impairment indicator. | |||||||||||||
In the third quarter of 2012, a series of events led DP&L management to conclude that there was impairment in the value of certain generating stations. See Note 13 for more information. | |||||||||||||
For DP&L’s generation, transmission, and distribution assets, straight-line depreciation is applied on an average annual composite basis using group rates that approximated 2.8% in 2014, 4.4% in 2013 and 4.2% in 2012. | |||||||||||||
The following is a summary of DP&L’s Property, plant and equipment with corresponding composite depreciation rates at December 31, 2014 and December 31, 2013: | |||||||||||||
December 31, | |||||||||||||
$ in millions | 2014 | Composite Rate | 2013 | Composite Rate | |||||||||
Regulated: | |||||||||||||
Transmission | $ | 402.4 | 2.30% | $ | 388.3 | 2.30% | |||||||
Distribution | 1,568.0 | 3.50% | 1,528.2 | 3.50% | |||||||||
General | 116.1 | 6.70% | 111.1 | 6.20% | |||||||||
Non-depreciable | 61.6 | N/A | 60.8 | N/A | |||||||||
Total regulated | 2,148.1 | 2,088.4 | |||||||||||
Unregulated: | |||||||||||||
Production / Generation | 2,957.7 | 2.40% | 3,002.1 | 5.20% | |||||||||
Non-depreciable | 14.9 | N/A | 14.8 | N/A | |||||||||
Total unregulated | 2,972.6 | 3,016.9 | |||||||||||
Total property, plant and equipment in service | $ | 5,120.7 | 2.80% | $ | 5,105.3 | 4.40% | |||||||
AROs | |||||||||||||
We recognize AROs in accordance with GAAP which requires legal obligations associated with the retirement of long-lived assets to be recognized at their fair value at the time those obligations are incurred. Upon initial recognition of a legal liability, costs are capitalized as part of the related long-lived asset and depreciated over the useful life of the related asset. Our legal obligations associated with the retirement of our long-lived assets consisted primarily of river intake and discharge structures, coal unloading facilities, loading docks, ice breakers and ash disposal facilities. Our generation AROs are recorded within other deferred credits on the balance sheets. | |||||||||||||
Estimating the amount and timing of future expenditures of this type requires significant judgment. Management routinely updates these estimates as additional information becomes available. | |||||||||||||
Changes in the Liability for Generation AROs | |||||||||||||
$ in millions | |||||||||||||
Balance at December 31, 2012 | $ | 19.2 | |||||||||||
Calendar 2013 | |||||||||||||
Accretion expense | 1.0 | ||||||||||||
Settlements | -0.3 | ||||||||||||
Balance at December 31, 2013 | 19.9 | ||||||||||||
Calendar 2014 | |||||||||||||
Additions | 3.6 | ||||||||||||
Accretion expense | 1.1 | ||||||||||||
Settlements | -1.7 | ||||||||||||
Balance at December 31, 2014 | $ | 22.9 | |||||||||||
Asset Removal Costs | |||||||||||||
We continue to record cost of removal for our regulated transmission and distribution assets through our depreciation rates and recover those amounts in rates charged to our customers. There are no known legal AROs associated with these assets. We have recorded $119.3 million and $115.0 million in estimated costs of removal at December 31, 2014 and 2013, respectively, as regulatory liabilities for our transmission and distribution property. These amounts represent the excess of the cumulative removal costs recorded through depreciation rates versus the cumulative removal costs actually incurred. See Note 3 for additional information. | |||||||||||||
Changes in the Liability for Transmission and Distribution Asset Removal Costs | |||||||||||||
$ in millions | |||||||||||||
Balance at December 31, 2012 | $ | 112.1 | |||||||||||
Calendar 2013 | |||||||||||||
Additions | 22.0 | ||||||||||||
Settlements | -19.1 | ||||||||||||
Balance at December 31, 2013 | 115.0 | ||||||||||||
Calendar 2014 | |||||||||||||
Additions | 19.6 | ||||||||||||
Settlements | -15.3 | ||||||||||||
Balance at December 31, 2014 | $ | 119.3 | |||||||||||
Regulatory Accounting | |||||||||||||
As a regulated utility, we apply the provisions of FASC 980 “Regulated Operations,” which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory assets have been included as allowable costs for ratemaking purposes, as authorized by the PUCO or established regulatory practices. Regulatory liabilities generally represent obligations to make refunds or future rate reductions to customers for previous over collections or the deferral of revenues collected for costs that DPL expects to incur in the future. | |||||||||||||
The deferral of costs (as regulatory assets) is appropriate only when the future recovery of such costs is probable. In assessing probability, we consider such factors as specific orders from the PUCO or FERC, regulatory precedent and the current regulatory environment. To the extent recovery of costs is no longer deemed probable, related regulatory assets would be required to be expensed in current period earnings. Our regulatory assets and liabilities have been created pursuant to a specific order of the PUCO or FERC or established regulatory practices, such as other utilities under the jurisdiction of the PUCO or FERC being granted recovery of similar costs. It is probable, but not certain, that these regulatory assets will be recoverable, subject to PUCO or FERC approval. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 3 for more information about Regulatory Assets and Liabilities. | |||||||||||||
Inventories | |||||||||||||
Inventories are carried at average cost and include coal, limestone, oil and gas used for electric generation, and materials and supplies used for utility operations. | |||||||||||||
Intangibles | |||||||||||||
Intangibles consist of emission allowances and renewable energy credits. Emission allowances are carried on a first-in, first out (FIFO) basis for purchased emission allowances. Net gains or losses on the sale of excess emission allowances, representing the difference between the sales proceeds and the cost of emission allowances, are recorded as a component of our fuel costs and are reflected in Operating income when realized. Part of the gains on emission allowances are used to reduce the overall fuel rider charged to our SSO retail customers. Emission allowances are amortized as they are used in our operations. Renewable energy credits are amortized as they are used or retired. | |||||||||||||
Income Taxes | |||||||||||||
Income taxes are accounted in accordance with FASC 740 which requires an asset and liability approach for financial accounting and reporting of income taxes with tax effects of differences, based on currently enacted income tax rates, between the financial reporting and tax basis of accounting reported as deferred tax assets or liabilities in the balance sheets. Valuation allowances are provided against deferred tax assets unless it is more likely than not that the asset will be realized. | |||||||||||||
Investment tax credits, which have been used to reduce federal income taxes payable, are deferred for financial reporting purposes and are amortized over the useful lives of the property to which they relate. For rate-regulated operations, additional deferred income taxes and offsetting regulatory assets or liabilities are recorded to recognize that income taxes will be recoverable or refundable through future revenues. | |||||||||||||
DPL and its subsidiaries file U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 6 for additional information. | |||||||||||||
Financial Instruments | |||||||||||||
We classify our investments in debt and equity financial instruments of publicly traded entities into different categories: available-for-sale and held-to-maturity. Available-for-sale securities are carried at fair value and unrealized gains and losses on those securities, net of deferred income taxes, are presented as a separate component of shareholders’ equity. Other-than-temporary declines in value are recognized currently in earnings. Financial instruments classified as held-to-maturity are carried at amortized cost. The cost basis for public equity security and fixed maturity investments is average cost and amortized cost, respectively. | |||||||||||||
Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities | |||||||||||||
DP&L collects certain excise taxes levied by state or local governments from its customers. DP&L’s excise taxes are accounted for on a net basis and recorded as a reduction in revenues in the accompanying Statements of Operations in accordance with AES policy. The amounts for the years ended December 31, 2014, 2013 and 2012 were $50.8 million, $50.5 million and $50.5 million, respectively. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents. | |||||||||||||
Restricted Cash | |||||||||||||
Restricted cash includes cash which is restricted as to withdrawal or usage. The nature of the restrictions include restrictions imposed by agreements related to deposits held as collateral. | |||||||||||||
Financial Derivatives | |||||||||||||
All derivatives are recognized as either assets or liabilities in the balance sheets and are measured at fair value. Changes in the fair value are recorded in earnings unless they are designated as a cash flow hedge of a forecasted transaction or qualify for the normal purchases and sales exception. | |||||||||||||
We use forward contracts to reduce our exposure to changes in energy and commodity prices and as a hedge against the risk of changes in cash flows associated with expected electricity purchases. These purchases are used to hedge our full load requirements. We also hold forward sales contracts that hedge against the risk of changes in cash flows associated with power sales during periods of projected generation facility availability. We use cash flow hedge accounting when the hedge or a portion of the hedge is deemed to be highly effective, which results in changes in fair value being recorded within accumulated other comprehensive income, a component of shareholder’s equity. We have elected not to offset net derivative positions in the financial statements. Accordingly, we do not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 9 for additional information. | |||||||||||||
Insurance and Claims Costs | |||||||||||||
In addition to insurance obtained from third-party providers, MVIC, a wholly-owned captive subsidiary of DPL, provides insurance coverage solely to us, our subsidiaries and, in some cases, our partners in commonly-owned facilities we operate, for workers’ compensation, general liability, and property damage on an ongoing basis. MVIC maintains an active run-off policy for directors’ and officers’ liability and fiduciary through their expiration in 2017 and may or may not be renewed at that time. DP&L is responsible for claim costs below certain coverage thresholds of MVIC for the insurance coverage noted above. In addition, DP&L has estimated liabilities for medical, life, and disability reserves for claims costs below certain coverage thresholds of third-party providers. We record these additional insurance and claims costs of approximately $15.6 million and $18.8 million at December 31, 2014 and 2013, respectively, within Other current liabilities and Other deferred credits on the balance sheets. The estimated liabilities for MVIC at DPL and the estimated liabilities for workers’ compensation, medical, life and disability costs at DP&L are actuarially determined using certain assumptions. There is uncertainty associated with these loss estimates and actual results may differ from the estimates. Modification of these loss estimates based on experience and changed circumstances is reflected in the period in which the estimate is re-evaluated. | |||||||||||||
Pension and Postretirement Benefits | |||||||||||||
We account for and disclose pension and postemployment benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postemployment plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost, and funding requirements of the plans. | |||||||||||||
Related Party Transactions | |||||||||||||
In the normal course of business, DP&L enters into transactions with other subsidiaries of DPL. All material intercompany accounts and transactions are eliminated in DPL’s Consolidated Financial Statements. | |||||||||||||
In December 2013, an agreement was signed, effective January 1, 2014, whereby the Service Company began providing services including accounting, legal, human resources, information technology and other corporate services on behalf of companies that are part of the U.S. SBU, including, among other companies, DPL and DP&L. The Service Company allocates the costs for these services based on cost drivers designed to result in fair and equitable allocations. This includes ensuring that the regulated utilities served, including DP&L, are not subsidizing costs incurred for the benefit of non-regulated businesses. | |||||||||||||
The following table provides a summary of these transactions: | |||||||||||||
Years ended December 31, | |||||||||||||
$ in millions | 2014 | 2013 | 2012 | ||||||||||
DP&L revenues: | |||||||||||||
Sales to DPLER (including MC Squared) (a) | $ | 487.1 | $ | 453.9 | $ | 390.8 | |||||||
DP&L Operation & Maintenance Expenses: | |||||||||||||
Premiums paid for insurance services | $ | -2.9 | $ | -2.9 | $ | -2.6 | |||||||
provided by MVIC (b) | |||||||||||||
Expense recoveries for services | $ | 2.2 | $ | 5.2 | $ | 4.0 | |||||||
provided to DPLER (c) | |||||||||||||
DP&L Customer security deposits: | |||||||||||||
Deposits received from DPLER (d) | $ | 20.1 | $ | 19.2 | $ | 20.2 | |||||||
Transactions with the Service Company: | |||||||||||||
Charges for services provided | $ | 30.5 | $ | - | $ | - | |||||||
Charges to the Service Company | $ | 0.1 | $ | - | $ | - | |||||||
Transactions with the Service Company: | At December 31, 2014 | At December 31, 2013 | |||||||||||
Net payable to the Service Company | $ | -4.7 | $ | - | |||||||||
(a)DP&L sells power to DPLER and MC Squared to satisfy the electric requirements of their retail customers. The revenue dollars associated with sales to DPLER and MC Squared are recorded as wholesale revenues in DP&L’s Financial Statements. DP&L started selling physical power to MC Squared during June 2012 and became their sole source of power in September 2012. | |||||||||||||
(b)MVIC, a wholly-owned captive insurance subsidiary of DPL, provides insurance coverage to DP&L and other DPL subsidiaries for workers’ compensation, general liability, property damages and directors’ and officers’ liability. These amounts represent insurance premiums paid by DP&L to MVIC. | |||||||||||||
(c)In the normal course of business DP&L incurs and records expenses on behalf of DPLER. Such expenses include but are not limited to employee-related expenses, accounting, information technology, payroll, legal and other administration expenses. DP&L subsequently charges these expenses to DPLER at DP&L’s cost and credits the expense in which they were initially recorded. | |||||||||||||
(d)DP&L requires credit assurance from the CRES providers serving customers in its service territory because DP&L is the default energy provider should the CRES provider fail to fulfill its obligations to provide electricity. Due to DPL’s credit downgrade, DP&L required cash collateral from DPLER. | |||||||||||||
Recently Adopted Accounting Standards | |||||||||||||
Discontinued Operations | |||||||||||||
The FASB recently issued ASU 2014-08 “Presentation of Financial Statements” (Topic 205) and “Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” effective for annual and interim periods beginning after December 15, 2014. ASU 2014-08 updates the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. In addition, an entity is required to expand disclosures for discontinued operations by providing more information about the assets, liabilities, revenues and expenses of discontinued operations both on the face of the financial statements and in the Notes. For the disposal of an individually significant component of an entity that does not qualify for discontinued operations reporting, an entity is required to disclose the pretax profit or loss of the component in the Notes. Our early adoption of ASU No. 2014-008 in the third quarter of 2014 did not have any impact on our overall results of operations, financial position or cash flows. | |||||||||||||
Recently Issued Accounting Standards | |||||||||||||
Going Concern | |||||||||||||
The FASB recently issued ASU 2014-15 “Presentation of Financial Statements – Going Concern (Subtopic 205-40: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern)” effective for annual and interim periods ending after December 15, 2016. ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. There are required disclosures if substantial doubt is identified including documentation of: principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans), management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern. This ASU is not expected to have any impact on our overall results of operations, financial position or cash flows. | |||||||||||||
Revenue from Contracts with Customers | |||||||||||||
The FASB recently issued ASU 2014-09 “Revenue from Contracts with Customers” (Topic 606) effective for annual and interim periods beginning after December 15, 2016; with retrospective application. The core principle of the ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Because the guidance in this update is principles-based, it can be applied to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. We have not yet determined the extent, if any, to which our overall results of operations, financial position or cash flows may be affected by the implementation of this ASU. | |||||||||||||
Supplemental_Financial_Informa
Supplemental Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Financial Information | |||||||||||||
Note 2 – Supplemental Financial Information | |||||||||||||
December 31, | |||||||||||||
$ in millions | 2014 | 2013 | |||||||||||
Accounts receivable, net | |||||||||||||
Unbilled revenue | $ | 79.2 | $ | 77.8 | |||||||||
Customer receivables | 104.8 | 102.7 | |||||||||||
Amounts due from partners in jointly-owned stations | 14.2 | 15.8 | |||||||||||
Other | 4.0 | 8.2 | |||||||||||
Provisions for uncollectible accounts | -1.3 | -1.2 | |||||||||||
Total accounts receivable, net | $ | 200.9 | $ | 203.3 | |||||||||
Inventories | |||||||||||||
Fuel and limestone | $ | 65.3 | $ | 42.7 | |||||||||
Plant materials and supplies | 33.5 | 38.2 | |||||||||||
Other | 1.4 | 1.8 | |||||||||||
Total inventories, at average cost | $ | 100.2 | $ | 82.7 | |||||||||
Accumulated Other Comprehensive Income / (Loss) | |||||||||||||
The amounts reclassified out of Accumulated Other Comprehensive Income / (Loss) by component during the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||
Details about Accumulated Other Comprehensive Income / (Loss) Components | Affected line item in the Consolidated Statements of Operations | Years ended December 31, | |||||||||||
$ in millions | 2014 | 2013 | 2012 | ||||||||||
Gains and losses on Available-for-sale securities activity (Note 9): | |||||||||||||
Other income / (deductions) | $ | 0.4 | $ | 2.1 | $ | -0.1 | |||||||
Total before income taxes | 0.4 | 2.1 | -0.1 | ||||||||||
Tax expense | -0.2 | -0.7 | - | ||||||||||
Net of income taxes | 0.2 | 1.4 | -0.1 | ||||||||||
Gains and losses on cash flow hedges (Note 10): | |||||||||||||
Interest Expense | -1.3 | - | 0.2 | ||||||||||
Revenue | 28.4 | 2.2 | -0.1 | ||||||||||
Purchased power | -0.7 | 3.5 | -1.1 | ||||||||||
Total before income taxes | 26.4 | 5.7 | -1 | ||||||||||
Tax expense | -9.5 | -2.3 | 0.5 | ||||||||||
Net of income taxes | 16.9 | 3.4 | -0.5 | ||||||||||
Amortization of defined benefit pension items (Note 8): | |||||||||||||
Tax benefit | - | 0.3 | - | ||||||||||
Net of income taxes | - | 0.3 | - | ||||||||||
Total reclassifications for the period, net of income taxes | $ | 17.1 | $ | 5.1 | $ | -0.6 | |||||||
The changes in the components of Accumulated Other Comprehensive Income / (Loss) during the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||
$ in millions | Gains / (losses) on available-for-sale securities | Gains / (losses) on cash flow hedges | Change in unfunded pension obligation | Total | |||||||||
Balance January 1, 2013 | $ | 0.4 | $ | -2.5 | $ | -1.8 | $ | -3.9 | |||||
Other comprehensive income / (loss) before reclassifications | -1.2 | 19.7 | 4.9 | 23.4 | |||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | 1.4 | 3.4 | 0.3 | 5.1 | |||||||||
Net current period other comprehensive income | 0.2 | 23.1 | 5.2 | 28.5 | |||||||||
Balance December 31, 2013 | 0.6 | 20.6 | 3.4 | 24.6 | |||||||||
Other comprehensive loss before reclassifications | -0.3 | -19 | -14.9 | -34.2 | |||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | 0.2 | 16.9 | - | 17.1 | |||||||||
Net current period other comprehensive loss | -0.1 | -2.1 | -14.9 | -17.1 | |||||||||
Balance December 31, 2014 | $ | 0.5 | $ | 18.5 | $ | -11.5 | $ | 7.5 | |||||
DP&L [Member] | |||||||||||||
Supplemental Financial Information | |||||||||||||
Note 2 – Supplemental Financial Information | |||||||||||||
December 31, | |||||||||||||
$ in millions | 2014 | 2013 | |||||||||||
Accounts receivable, net | |||||||||||||
Unbilled revenue | $ | 49.0 | $ | 47.2 | |||||||||
Customer receivables | 68.7 | 58.2 | |||||||||||
Amounts due from partners in jointly-owned stations | 14.2 | 15.8 | |||||||||||
Other | 21.7 | 27.2 | |||||||||||
Provisions for uncollectible accounts | -0.9 | -0.9 | |||||||||||
Total accounts receivable, net | $ | 152.7 | $ | 147.5 | |||||||||
Inventories | |||||||||||||
Fuel and limestone | $ | 65.3 | $ | 42.9 | |||||||||
Plant materials and supplies | 32.3 | 37.0 | |||||||||||
Other | 1.4 | 1.8 | |||||||||||
Total inventories, at average cost | $ | 99.0 | $ | 81.7 | |||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
The amounts reclassified out of Accumulated Other Comprehensive Income / (Loss) by component during the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||
Details about Accumulated Other Comprehensive Income / (Loss) Components | Affected line item in the Statements of Operations | Years ended December 31, | |||||||||||
$ in millions | 2014 | 2013 | 2012 | ||||||||||
Gains and losses on Available-for-sale securities activity (Note 8): | |||||||||||||
Other income / (deductions) | $ | 0.4 | $ | 2.1 | $ | -0.1 | |||||||
Total before income taxes | 0.4 | 2.1 | -0.1 | ||||||||||
Tax expense | -0.2 | -0.7 | - | ||||||||||
Net of income taxes | 0.2 | 1.4 | -0.1 | ||||||||||
Gains and losses on cash flow hedges (Note 9): | |||||||||||||
Interest expense | -1.1 | -2.1 | -2.5 | ||||||||||
Revenue | 28.4 | 2.2 | 0.3 | ||||||||||
Purchased power | -0.4 | 5.0 | -1.6 | ||||||||||
Total before income taxes | 26.9 | 5.1 | -3.8 | ||||||||||
Tax expense | -11.5 | -2.5 | 0.4 | ||||||||||
Net of income taxes | 15.4 | 2.6 | -3.4 | ||||||||||
Amortization of defined benefit pension items (Note 7): | |||||||||||||
Reclassification to Other income / (deductions) | - | 5.7 | 4.1 | ||||||||||
Tax benefit | - | -1.9 | -1.4 | ||||||||||
Net of income taxes | - | 3.8 | 2.7 | ||||||||||
Total reclassifications for the period, net of income taxes | $ | 15.6 | $ | 7.8 | $ | -0.8 | |||||||
The changes in the components of Accumulated Other Comprehensive Income / (Loss) during the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||
$ in millions | Gains / (losses) on available-for-sale securities | Gains / (losses) on cash flow hedges | Change in unfunded pension obligation | Total | |||||||||
Balance January 1, 2013 | $ | 1.0 | $ | 2.6 | $ | -42.3 | $ | -38.7 | |||||
Other comprehensive income / (loss) before reclassifications | -1.6 | 1.0 | 4.8 | 4.2 | |||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | 1.4 | 2.6 | 3.8 | 7.8 | |||||||||
Net current period other comprehensive income / (loss) | -0.2 | 3.6 | 8.6 | 12.0 | |||||||||
Balance December 31, 2013 | 0.8 | 6.2 | -33.7 | -26.7 | |||||||||
Other comprehensive loss before reclassifications | -0.3 | -18.8 | -12.1 | -31.2 | |||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | 0.2 | 15.4 | - | 15.6 | |||||||||
Net current period other comprehensive loss | -0.1 | -3.4 | -12.1 | -15.6 | |||||||||
Balance December 31, 2014 | $ | 0.7 | $ | 2.8 | $ | -45.8 | $ | -42.3 | |||||
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Regulatory Matters | |||||||||||||
Note 3 – Regulatory Matters | |||||||||||||
In accordance with FASC 980, we have recognized total regulatory assets of $211.7 million and $180.5 million as of December 31, 2014 and 2013 and total regulatory liabilities of $128.5 million and $121.1 million as of December 31, 2014 and 2013. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 1 for accounting policies regarding Regulatory Assets and Liabilities. | |||||||||||||
The following table presents DPL’s Regulatory assets and liabilities: | |||||||||||||
December 31, | |||||||||||||
$ in millions | Type of Recovery (a) | Amortization Through | 2014 | 2013 | |||||||||
Regulatory assets, current: | |||||||||||||
Deferred storm costs | A | 2015 | $ | 22.3 | $ | - | |||||||
Fuel and purchased power recovery costs | B | 2015 | 16.3 | 6.3 | |||||||||
Economic development costs | B | 2015 | 2.1 | 7.7 | |||||||||
Energy efficiency program | B | 2015 | 1.8 | - | |||||||||
Transmission costs | B | 2015 | - | 2.6 | |||||||||
Other miscellaneous | B | 2015 | 1.7 | 4.2 | |||||||||
Total regulatory assets, current | $ | 44.2 | $ | 20.8 | |||||||||
Regulatory assets, non-current: | |||||||||||||
Pension benefits | A | Ongoing | $ | 99.6 | $ | 77.1 | |||||||
Deferred recoverable income taxes | A/C | Ongoing | 43.1 | 32.4 | |||||||||
Unamortized loss on reacquired debt | A | Various | 9.9 | 10.9 | |||||||||
CCEM smart grid and advanced metering infrastructure costs | D | Undetermined | 6.6 | 6.6 | |||||||||
Retail settlement system costs | D | Undetermined | 3.1 | 3.1 | |||||||||
Consumer education campaign | D | Undetermined | 3.0 | 3.0 | |||||||||
Deferred storm costs | D | 2015 | - | 25.6 | |||||||||
Other miscellaneous | D | Undetermined | 2.2 | 1.0 | |||||||||
Total regulatory assets, non-current | $ | 167.5 | $ | 159.7 | |||||||||
Regulatory liabilities, current: | |||||||||||||
Transmission costs | $ | 2.9 | $ | - | |||||||||
Other miscellaneous | 1.5 | - | |||||||||||
Total regulatory liabilities, current | $ | 4.4 | $ | - | |||||||||
Regulatory liabilities, non-current: | |||||||||||||
Estimated costs of removal - regulated property | $ | 119.3 | $ | 115.0 | |||||||||
Postretirement benefits | 4.8 | 5.6 | |||||||||||
Other miscellaneous | - | 0.5 | |||||||||||
Total regulatory liabilities, non-current | $ | 124.1 | $ | 121.1 | |||||||||
A – Recovery of incurred costs without a rate of return. | |||||||||||||
B – Recovery of incurred costs plus rate of return. | |||||||||||||
C – Balance has an offsetting liability resulting in no effect on rate base. | |||||||||||||
D – Recovery not yet determined, but is probable of occurring in future rate proceedings. | |||||||||||||
Regulatory Assets | |||||||||||||
Deferred storm costs represent costs incurred to repair the damage to DP&L’s distribution equipment by major storms in 2008, 2011 and 2012. Such costs are included in “Regulatory Assets, non-current” on the accompanying Consolidated Balance Sheets as of December 31, 2013 and in “Regulatory Assets, current” as of December 31, 2014. DP&L filed an application with the PUCO in 2012 to recover these costs. On April 14, 2014, DP&L reached an agreement in principle whereby DP&L would recover storm costs of $22.3 million from all customers on a non-bypassable basis. As a result, using the best estimate of the amount that is probable of recovery, DP&L reduced the regulatory asset balance to $22.3 million. In accordance with FASC 980 “Regulated Operations”, the reduction was recognized as a current period expense, which is included in Operation and maintenance and the corresponding adjustment to carrying costs which is included in interest expense on the accompanying Statements of Operations. In accordance with the agreement reached with the PUCO staff, a Stipulation was filed and a final order was issued on December 17, 2014 that approved the Stipulation covering this agreement in principle. Recovery will begin in January 2015 therefore this asset was reclassified to current. | |||||||||||||
Fuel and purchased power recovery costs represent prudently incurred fuel, purchased power, derivative, emission and other related costs which will be recovered from or returned to customers in the future through the operation of the fuel and purchased power recovery rider. The fuel and purchased power recovery rider fluctuates based on actual costs and recoveries and is modified at the start of each seasonal quarter. As part of the PUCO approval process, an outside auditor reviews fuel costs and the fuel procurement process. An audit of 2012 fuel costs occurred in 2013, and on June 12, 2013 we received a report from the auditor recommending a pre-tax disallowance of $5.3 million. A reserve of $2.6 million was recorded against the regulatory asset. In August 2014, the PUCO issued an order, which overruled the auditor recommendation and instead included the disallowance of an immaterial amount of fuel costs. The impact of the order was a reversal in the third quarter of 2014 of the vast majority of the previously established $2.6 million reserve and a corresponding reduction to fuel expense. The 2013 audit was completed with no material disallowance of fuel expenses. The costs recovered through the fuel rider decrease each year as more SSO supply is provided through the competitive bid. The fuel rider will be completely phased out beginning January 1, 2016. | |||||||||||||
Economic development costs represent costs incurred to promote economic development within the State of Ohio. These costs are being recovered through an Economic Development Rider that is subject to a bi-annual true-up process for any over/under recovery of costs. | |||||||||||||
Energy efficiency program costs represent costs incurred to develop and implement various customer programs addressing energy efficiency. These costs are being recovered through an Energy Efficiency Rider (EER) that began July 1, 2009 and that is subject to an annual true-up for any over/under recovery of costs. | |||||||||||||
Transmission costs represent the costs related to transmission, ancillary service and other PJM-related charges that have been incurred as a member of PJM. On an annual basis, retail rates are adjusted to true-up costs with recovery in rates. | |||||||||||||
Pension benefits represent the qualifying FASC 715 “Compensation – Retirement Benefits” costs of our regulated operations that for ratemaking purposes are deferred for future recovery. We recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory asset represents the regulated portion that would otherwise be charged as a loss to OCI. | |||||||||||||
Deferred recoverable income taxes represent deferred income tax assets recognized from the normalization of flow-through items as the result of tax benefits previously provided to customers. This is the cumulative flow-through benefit given to regulated customers that will be collected from them in future years. Since currently existing temporary differences between the financial statements and the related tax basis of assets will reverse in subsequent periods, these deferred recoverable income taxes will decrease over time. | |||||||||||||
Unamortized loss on reacquired debt represents losses on long-term debt reacquired or redeemed in prior periods. These costs are being amortized over the lives of the original issues in accordance with FERC and PUCO rules. | |||||||||||||
CCEM smart grid and AMI costs represent costs incurred as a result of studying and developing distribution system upgrades and implementation of AMI. On October 19, 2010, DP&L elected to withdraw its case pertaining to the Smart Grid and AMI programs. The PUCO accepted the withdrawal in an order issued on January 5, 2011. The PUCO also indicated that it expects DP&L to continue to monitor other utilities’ Smart Grid and AMI programs and to explore the potential benefits of investing in Smart Grid and AMI programs and that DP&L will, when appropriate, file new Smart Grid and/or AMI business cases in the future. We plan to file to recover these deferred costs in a future regulatory rate proceeding. Based on past PUCO precedent, we believe these costs are probable of future recovery in rates. | |||||||||||||
Retail settlement system costs represent costs to implement a retail settlement system that reconciles the energy a CRES supplier delivers to its customers with what its customers actually use. Based on case precedent in other utilities’ cases, the costs are recoverable through a future DP&L rate proceeding. | |||||||||||||
Consumer education campaign represents costs for consumer education advertising regarding electric deregulation. DP&L will be seeking recovery of these costs as part of our next distribution rate case filing at the PUCO. The timing of such a filing has not yet been determined. | |||||||||||||
Regulatory Liabilities | |||||||||||||
Transmission Costs see “Regulatory Assets – Transmission costs” above. | |||||||||||||
Estimated costs of removal – regulated property reflect an estimate of amounts collected in customer rates for costs that are expected to be incurred in the future to remove existing transmission and distribution property from service when the property is retired. | |||||||||||||
Postretirement benefits represent the qualifying FASC 715 “Compensation – Retirement Benefits” gains related to our regulated operations that, for ratemaking purposes, are probable of being reflected in future rates. We recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory liability represents the regulated portion that would otherwise be reflected as a gain to OCI. | |||||||||||||
DP&L [Member] | |||||||||||||
Regulatory Matters | |||||||||||||
Note 3 – Regulatory Matters | |||||||||||||
In accordance with FASC 980, we have recognized total regulatory assets of $211.7 million and $180.5 million as of December 31, 2014 and 2013, respectively and total regulatory liabilities of $128.5 million and $121.1 million as of December 31, 2014 and 2013, respectively. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 1 for accounting policies regarding Regulatory Assets and Liabilities. | |||||||||||||
The following table presents DP&L’s Regulatory assets and liabilities: | |||||||||||||
December 31, | |||||||||||||
$ in millions | Type of Recovery (a) | Amortization Through | 2014 | 2013 | |||||||||
Regulatory assets, current: | |||||||||||||
Deferred storm costs | A | 2015 | $ | 22.3 | $ | - | |||||||
Fuel and purchased power recovery costs | B | 2015 | 16.3 | 6.3 | |||||||||
Economic development costs | B | 2015 | 2.1 | 7.7 | |||||||||
Energy efficiency program | B | 2015 | 1.8 | - | |||||||||
Transmission costs | B | 2015 | - | 2.6 | |||||||||
Other miscellaneous | B | 2015 | 1.7 | 4.2 | |||||||||
Total regulatory assets, current | $ | 44.2 | $ | 20.8 | |||||||||
Regulatory assets, non-current: | |||||||||||||
Pension benefits | A | Ongoing | $ | 99.6 | $ | 77.1 | |||||||
Deferred recoverable income taxes | A/C | Ongoing | 43.1 | 32.4 | |||||||||
Unamortized loss on reacquired debt | A | Various | 9.9 | 10.9 | |||||||||
CCEM smart grid and advanced metering infrastructure costs | D | Undetermined | 6.6 | 6.6 | |||||||||
Retail settlement system costs | D | Undetermined | 3.1 | 3.1 | |||||||||
Consumer education campaign | D | Undetermined | 3.0 | 3.0 | |||||||||
Deferred storm costs | D | 2015 | - | 25.6 | |||||||||
Other miscellaneous | D | Undetermined | 2.2 | 1.0 | |||||||||
Total regulatory assets, non-current | $ | 167.5 | $ | 159.7 | |||||||||
Regulatory liabilities, current: | |||||||||||||
Transmission costs | $ | 2.9 | $ | - | |||||||||
Other miscellaneous | 1.5 | - | |||||||||||
Total regulatory liabilities, current | $ | 4.4 | $ | - | |||||||||
Regulatory liabilities, non-current: | |||||||||||||
Estimated costs of removal - regulated property | $ | 119.3 | $ | 115.0 | |||||||||
Postretirement benefits | 4.8 | 5.6 | |||||||||||
Other miscellaneous | - | 0.5 | |||||||||||
Total regulatory liabilities, non-current | $ | 124.1 | $ | 121.1 | |||||||||
A – Recovery of incurred costs without a rate of return. | |||||||||||||
B – Recovery of incurred costs plus rate of return. | |||||||||||||
C – Balance has an offsetting liability resulting in no effect on rate base. | |||||||||||||
D – Recovery not yet determined, but is probable of occurring in future rate proceedings. | |||||||||||||
Regulatory Assets | |||||||||||||
Deferred storm costs represent costs incurred to repair the damage cause to DP&L’s distribution equipment by major storms in 2008, 2011 and 2012. Such costs are included in Regulatory Assets, non-current on the accompanying Balance Sheets as of December 31, 2013 and in Regulatory Assets, current as of December 31, 2014. DP&L filed an application with the PUCO in 2012 to recover these costs. On April 14, 2014, DP&L reached an agreement in principle with the PUCO staff whereby DP&L would recover storm costs of $22.3 million from all customers on a non-bypassable basis. As a result, using the best estimate of the amount that is probable of recovery, DP&L reduced the regulatory asset balance to $22.3 million. In accordance with FASC 980 “Regulated Operations”, the reduction was recognized as a current period expense, which is included in Operation and maintenance and the corresponding adjustment to carrying costs which is included in interest expense on the accompanying Statements of Operations. In accordance with the agreement reached with the PUCO staff, a stipulation was filed and a final order was issued on December 17, 2014 that approved the Stipulation. Recovery will begin in January 2015 therefore this asset was reclassified to current. | |||||||||||||
Fuel and purchased power recovery costs represent prudently incurred fuel, purchased power, derivative, emission and other related costs which will be recovered from or returned to customers in the future through the operation of the fuel and purchased power recovery rider. The fuel and purchased power recovery rider fluctuates based on actual costs and recoveries and is modified at the start of each seasonal quarter. As part of the PUCO approval process, an outside auditor reviews fuel costs and the fuel procurement process. An audit of 2012 fuel costs occurred in 2013, and on June 12, 2013 we received a report from the auditor recommending a pre-tax disallowance of $5.3 million. A reserve of $2.6 million was recorded against the regulatory asset. In August 2014, the PUCO issued an order, which overruled the auditor recommendation and instead included the disallowance of an immaterial amount of fuel costs. The impact of the order was a reversal in the third quarter of 2014 of the vast majority of the previously established $2.6 million reserve and a corresponding reduction to fuel expense. The 2013 audit was completed with no material disallowance of fuel expenses. The costs recovered through the fuel rider decrease each year as more SSO supply is provided through the competitive bid. The fuel rider will be completely phased out beginning January 1, 2016. | |||||||||||||
Economic development costs represent costs incurred to promote economic development within the State of Ohio. These costs are being recovered through an Economic Development Rider that is subject to a bi-annual true-up process for any over/under recovery of costs. | |||||||||||||
Energy efficiency program costs represent costs incurred to develop and implement various customer programs addressing energy efficiency. These costs are being recovered through an Energy Efficiency Rider (EER) that began July 1, 2009 and that is subject to an annual true-up for any over/under recovery of costs. | |||||||||||||
Transmission costs represent the costs related to transmission, ancillary service and other PJM-related charges that have been incurred as a member of PJM. On an annual basis, retail rates are adjusted to true-up costs with recovery in rates. | |||||||||||||
Pension benefits represent the qualifying FASC 715 “Compensation – Retirement Benefits” costs of our regulated operations that for ratemaking purposes are deferred for future recovery. We recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory asset represents the regulated portion that would otherwise be charged as a loss to OCI. | |||||||||||||
Deferred recoverable income taxes represent deferred income tax assets recognized from the normalization of flow-through items as the result of tax benefits previously provided to customers. This is the cumulative flow-through benefit given to regulated customers that will be collected from them in future years. Since currently existing temporary differences between the financial statements and the related tax basis of assets will reverse in subsequent periods, these deferred recoverable income taxes will decrease over time. | |||||||||||||
Unamortized loss on reacquired debt represents losses on long-term debt reacquired or redeemed in prior periods. These costs are being amortized over the lives of the original issues in accordance with FERC and PUCO rules. | |||||||||||||
CCEM smart grid and AMI costs represent costs incurred as a result of studying and developing distribution system upgrades and implementation of AMI. On October 19, 2010, DP&L elected to withdraw its case pertaining to the Smart Grid and AMI programs. The PUCO accepted the withdrawal in an order issued on January 5, 2011. The PUCO also indicated that it expects DP&L to continue to monitor other utilities’ Smart Grid and AMI programs and to explore the potential benefits of investing in Smart Grid and AMI programs and that DP&L will, when appropriate, file new Smart Grid and/or AMI business cases in the future. We plan to file to recover these deferred costs in a future regulatory rate proceeding. Based on past PUCO precedent, we believe these costs are probable of future recovery in rates. | |||||||||||||
Retail settlement system costs represent costs to implement a retail settlement system that reconciles the energy a CRES supplier delivers to its customers with what its customers actually use. Based on case precedent in other utilities’ cases, the costs are recoverable through a future DP&L rate proceeding. | |||||||||||||
Consumer education campaign represents costs for consumer education advertising regarding electric deregulation. DP&L will be seeking recovery of these costs as part of our next distribution rate case filing at the PUCO. The timing of such a filing has not yet been determined. | |||||||||||||
Regulatory Liabilities | |||||||||||||
Transmission Costs see “Regulatory Assets – Transmission costs” above. | |||||||||||||
Estimated costs of removal – regulated property reflect an estimate of amounts collected in customer rates for costs that are expected to be incurred in the future to remove existing transmission and distribution property from service when the property is retired. | |||||||||||||
Postretirement benefits represent the qualifying FASC 715 “Compensation – Retirement Benefits” gains related to our regulated operations that, for ratemaking purposes, are probable of being reflected in future rates. We recognize an asset for a plan’s overfunded status or a liability for a plan’s underfunded status, and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. This regulatory liability represents the regulated portion that would otherwise be reflected as a gain to OCI. | |||||||||||||
Ownership_of_Coalfired_Facilit
Ownership of Coal-fired Facilities | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Ownership of Coal-fired Facilities | Note 4 – Ownership of Coal-fired Facilities | |||||||||||||||||
DP&L and certain other Ohio utilities have undivided ownership interests in five coal-fired electric generating facilities and numerous transmission facilities. Certain expenses, primarily fuel costs for the generating units, are allocated to the owners based on their energy usage. The remaining expenses, investments in fuel inventory, plant materials and operating supplies, and capital additions are allocated to the owners in accordance with their respective ownership interests. As of December 31, 2014, DP&L had $25.0 million of construction work in process at such facilities. DP&L’s share of the operating cost of such facilities is included within the corresponding line in the Statements of Operations, and DP&L’s share of the investment in the facilities is included within Total net property, plant and equipment in the Balance Sheets. Each joint owner provides their own financing for their share of the operations and capital expenditures of the jointly-owned station. | ||||||||||||||||||
DP&L’s undivided ownership interest in such facilities at December 31, 2014, is as follows: | ||||||||||||||||||
DP&L Share | DPL Carrying Value | |||||||||||||||||
Ownership | Summer Production Capacity | Gross Plant | Accumulated | Construction | SCR and FGD | |||||||||||||
(%) | (MW) | In Service | Depreciation | Work in | Equipment | |||||||||||||
($ in millions) | ($ in millions) | Process | Installed | |||||||||||||||
($ in millions) | and in | |||||||||||||||||
Service | ||||||||||||||||||
(Yes/No) | ||||||||||||||||||
Jointly-owned production units | ||||||||||||||||||
Conesville - Unit 4 | 16.5 | 129 | $ | 24 | $ | 2 | $ | 1 | Yes | |||||||||
Killen - Unit 2 | 67.0 | 402 | 308 | 19 | 2 | Yes | ||||||||||||
Miami Fort - Units 7 and 8 | 36.0 | 368 | 214 | 23 | 2 | Yes | ||||||||||||
Stuart - Units 1 through 4 | 35.0 | 808 | 219 | 16 | 14 | Yes | ||||||||||||
Zimmer - Unit 1 | 28.1 | 371 | 182 | 35 | 6 | Yes | ||||||||||||
Transmission (at varying percentages) | 42 | 6 | - | |||||||||||||||
Total | 2,078 | $ | 989 | $ | 101 | $ | 25 | |||||||||||
Beckjord Unit 6 was retired effective October 1, 2014 and DP&L’s sale of its interest in East Bend closed on December 30, 2014. | ||||||||||||||||||
DP&L [Member] | ||||||||||||||||||
Ownership of Coal-fired Facilities | ||||||||||||||||||
Note 4 – Ownership of Coal-fired Facilities | ||||||||||||||||||
DP&L and certain other Ohio utilities have undivided ownership interests in five coal-fired electric generating facilities and numerous transmission facilities. Certain expenses, primarily fuel costs for the generating units, are allocated to the owners based on their energy usage. The remaining expenses, investments in fuel inventory, plant materials and operating supplies, and capital additions are allocated to the owners in accordance with their respective ownership interests. As of December 31, 2014, DP&L had $25.0 million of construction work in process at such facilities. DP&L’s share of the operating cost of such facilities is included within the corresponding line in the Statements of Operations and DP&L’s share of the investment in the facilities is included within Total net property, plant and equipment in the Balance Sheets. Each joint owner provides their own financing for their share of the operations and capital expenditures of the jointly-owned station. | ||||||||||||||||||
DP&L’s undivided ownership interest in such facilities at December 31, 2014, is as follows: | ||||||||||||||||||
DP&L Share | DP&L Carrying Value | |||||||||||||||||
Ownership | Summer Production Capacity | Gross Plant | Accumulated | Construction | SCR and FGD | |||||||||||||
% | (MW) | In Service | Depreciation | Work in | Equipment | |||||||||||||
($ in millions) | ($ in millions) | Process | Installed | |||||||||||||||
($ in millions) | and in | |||||||||||||||||
Service | ||||||||||||||||||
(Yes/No) | ||||||||||||||||||
Jointly-owned production units | ||||||||||||||||||
Conesville - Unit 4 | 16.5 | 129 | $ | 23 | $ | 4 | $ | 1 | Yes | |||||||||
Killen - Unit 2 | 67.0 | 402 | 624 | 314 | 2 | Yes | ||||||||||||
Miami Fort - Units 7 and 8 | 36.0 | 368 | 361 | 162 | 2 | Yes | ||||||||||||
Stuart - Units 1 through 4 | 35.0 | 808 | 756 | 323 | 14 | Yes | ||||||||||||
Zimmer - Unit 1 | 28.1 | 371 | 1,101 | 675 | 6 | Yes | ||||||||||||
Transmission (at varying percentages) | 98 | 62 | - | |||||||||||||||
Total | 2,078 | $ | 2,963 | $ | 1,540 | $ | 25 | |||||||||||
Beckjord Unit 6 was retired effective October 1, 2014 and DP&L sold its interest in East Bend on December 30, 2014. | ||||||||||||||||||
As part of the provisional DPL purchase accounting adjustments related to the Merger, four stations (Beckjord, Conesville, East Bend and Hutchings) had future expected cash flows that, when discounted, produced a fair market value different than DP&L’s carrying value. Since DP&L did not apply push down accounting, this valuation did not affect the carrying value of these stations’ valuation at DP&L. In the fourth quarter of 2013, DP&L performed an impairment review of its stations and recorded impairment expense of $86.0 million related to two of its stations, Conesville and East Bend. In addition, in the third quarter of 2012, DP&L recorded impairment expense of $80.8 million on its Conesville and Hutchings stations. See Note 13 for more information on these impairments. | ||||||||||||||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||
Goodwill and Intangible Assets | Note 5 – Goodwill and Other Intangible Assets | ||||||||||||||||||
Impairment of Goodwill | |||||||||||||||||||
In connection with the acquisition of DPL by AES, DPL allocated the purchase price to goodwill for two reporting units, the DP&L reporting unit, which includes DP&L and other entities, and DPLER. Of the total goodwill, approximately $2.4 billion was allocated to the DP&L reporting unit and the remainder was allocated to DPLER. Goodwill represents the value assigned at the Merger date, as adjusted for subsequent changes in the purchase price allocation, less recognized impairments. | |||||||||||||||||||
During the first quarter of 2014, we performed an interim impairment test on the $135.8 million in goodwill at our DPLER reporting unit. The DPLER reporting unit was identified as being "at risk" during the fourth quarter of 2013. The impairment indicators arose based on market information available regarding actual and proposed sales of competitive retail marketers, which indicated a significant decline in valuations during the first quarter of 2014. In Step 1 of the interim impairment test, the fair value of the reporting unit was determined to be less than its carrying amount under both the market approach and the income approach using a discounted cash flow valuation model. The significant assumptions included commodity price curves, estimated electricity to be demanded by its customers, changes in its customer base through attrition and expansion, discount rates, the assumed tax structure and the level of working capital required to run the business. During the second quarter of 2014, we finalized the work to determine the implied fair value for the DPLER reporting unit. There were no further adjustments to the full impairment of $135.8 million recognized in the first quarter. | |||||||||||||||||||
As of October 1, 2013, DPL performed its annual goodwill impairment test and recognized a goodwill impairment at its DP&L reporting unit of $306.3 million. In performing the annual goodwill impairment test as of October 1, 2013, Step 1 of the test failed as the fair value of the reporting unit no longer exceeded its carrying amount due primarily to lower estimates of capacity prices in future years as well as lower dark spreads contributing to lower overall operating margins for the business. The fair value of the reporting unit was determined under the income approach using a discounted cash flow valuation model. The significant assumptions included within the discounted cash flow valuation model were capacity price curves, amount of the non-bypassable charge, commodity price curves, dispatching, valuation of regulatory assets and liabilities, discount rates and deferred income taxes. In Step 2, goodwill was determined to have an implied fair value of $317.0 million after the hypothetical purchase price allocation under the accounting guidance for business combinations. | |||||||||||||||||||
DPL recognized a goodwill impairment expense of $1.817.2 million in 2012 at the DP&L reporting unit. During 2012, North American natural gas prices fell significantly compared to the previous year, which exerted downward pressure on wholesale power prices in the Ohio power market. These falling power prices compressed wholesale margins at DP&L and led to increased customer switching from DP&L to other CRES providers, including DPLER, who were offering retail prices lower than DP&L’s standard service offer. In addition, several municipalities in DP&L’s service territory passed ordinances allowing them to become government aggregators and contracted with CRES providers to provide generation service to the customers located within the municipal boundaries, further contributing to the switching trend. CRES providers also became more active in DP&L’s service territory. These developments reduced DP&L’s forecasted profitability, operating cash flows and liquidity. As a result, in September 2012, management lowered its previous forecasts of profitability and operating cash flows. Collectively, these events were considered an interim goodwill impairment indicator at the DP&L reporting unit. There were no interim impairment indicators identified for the goodwill at DPLER in 2012. | |||||||||||||||||||
The goodwill associated with the Merger is not deductible for tax purposes. Accordingly, there is no cash or financial statement tax benefit related to the impairment. The Company’s effective tax rates were impacted by the pretax impairment, however. The Company’s effective tax rates were (31.8%), (11.2%) and (2.8%) for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||
The following table summarizes the changes in Goodwill: | |||||||||||||||||||
$ in millions | DP&L Reporting Unit | DPLER Reporting Unit | Total | ||||||||||||||||
Balance at December 31, 2012 | |||||||||||||||||||
Goodwill | $ | 2,440.5 | $ | 135.8 | $ | 2,576.3 | |||||||||||||
Accumulated impairment losses | -1,817.20 | - | -1,817.20 | ||||||||||||||||
Net balance at December 31, 2012 | $ | 623.3 | $ | 135.8 | $ | 759.1 | |||||||||||||
Goodwill impairments during 2013 | $ | -306.3 | $ | - | $ | -306.3 | |||||||||||||
Balance at December 31, 2013 | |||||||||||||||||||
Goodwill | $ | 2,440.5 | $ | 135.8 | $ | 2,576.3 | |||||||||||||
Accumulated impairment losses | -2,123.50 | - | -2,123.50 | ||||||||||||||||
Net balance at December 31, 2013 | $ | 317.0 | $ | 135.8 | $ | 452.8 | |||||||||||||
Goodwill impairments during 2014 | $ | - | $ | -135.8 | $ | -135.8 | |||||||||||||
Balance at December 31, 2014 | |||||||||||||||||||
Goodwill | $ | 2,440.5 | $ | 135.8 | $ | 2,576.3 | |||||||||||||
Accumulated impairment losses | -2,123.50 | -135.8 | -2,259.30 | ||||||||||||||||
Net balance at December 31, 2014 | $ | 317.0 | $ | - | $ | 317.0 | |||||||||||||
The following tables summarize the balances comprising intangible assets as of December 31, 2014: | |||||||||||||||||||
$ in millions | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||
Balance | Amortization | Balance | Balance | Amortization | Balance | ||||||||||||||
Subject to Amortization | |||||||||||||||||||
Customer Contracts (a) | $ | 27.0 | $ | -27 | $ | - | $ | 27.0 | $ | -25.8 | $ | k | |||||||
Customer Relationships (b) | 31.8 | -6.9 | 24.9 | 31.8 | -4.6 | 27.2 | |||||||||||||
Other (c) | 7.7 | -1.3 | 6.4 | 8.4 | -0.1 | 8.3 | |||||||||||||
66.5 | -35.2 | 31.3 | 67.2 | -30.5 | 35.5 | ||||||||||||||
Not subject to Amortization | |||||||||||||||||||
Trademark/Trade name (d) | 6.1 | - | 6.1 | 6.1 | - | 6.1 | |||||||||||||
Total intangibles | $ | 72.6 | $ | -35.2 | $ | 37.4 | $ | 73.3 | $ | -30.5 | $ | 41.6 | |||||||
(a)Represents above market contracts that DPLER has with third-party customers existing as of the Merger date. | |||||||||||||||||||
(b)Represents relationships DPLER has with third-party customers as of the Merger date, where DPLER has regular contact with the customer, and the customer has the ability to make direct contact with DPLER. | |||||||||||||||||||
(c)Consists of various intangible assets including renewable energy credits, emission allowances, and other intangibles, none of which are individually significant. | |||||||||||||||||||
(d)Trademark/Trade name represents the value assigned to the trade names of DPLER and MC Squared. | |||||||||||||||||||
The following table summarizes, by category, intangible assets acquired during the period ended December 31, 2014: | |||||||||||||||||||
$ in millions | Amount | Subject to | Weighted | Amortization | |||||||||||||||
Amortization/ | Average | Method | |||||||||||||||||
Indefinite-lived | Amortization | ||||||||||||||||||
Period | |||||||||||||||||||
(years) | |||||||||||||||||||
Renewable Energy Certificates | $ | 7.7 | Subject to amortization | Various | As Utilized | ||||||||||||||
The following table summarizes the amortization expense, broken down by intangible asset category for 2015 through 2019: | |||||||||||||||||||
Estimated amortization expense | |||||||||||||||||||
Years ending December 31, | |||||||||||||||||||
$ in millions | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||
Customer relationships | $ | 3.8 | $ | 3.1 | $ | 2.7 | $ | 2.3 | $ | 2.1 | |||||||||
Renewable Energy Certificates | 4.2 | 3.5 | - | - | - | ||||||||||||||
$ | 8.0 | $ | 6.6 | $ | 2.7 | $ | 2.3 | $ | 2.1 | ||||||||||
Debt_Obligations
Debt Obligations | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Debt Obligations | |||||||
Note 6 – Debt Obligations | |||||||
Long-term debt | |||||||
$ in millions | 31-Dec-14 | 31-Dec-13 | |||||
First mortgage bonds due in September 2016 - 1.875% | $ | 445.0 | $ | 445.0 | |||
Pollution control series due in January 2028 - 4.7% | 35.3 | 35.3 | |||||
Pollution control series due in January 2034 - 4.8% | 179.1 | 179.1 | |||||
Pollution control series due in September 2036 - 4.8% | 100.0 | 100.0 | |||||
Pollution control series due in November 2040 - variable rates: 0.04% - 0.15% and 0.04% - 0.26% (a) | 100.0 | 100.0 | |||||
U.S. Government note due in February 2061 - 4.2% | 18.1 | 18.3 | |||||
Unamortized debt discount | -2.8 | -3.1 | |||||
Total long-term debt at subsidiary | 874.7 | 874.6 | |||||
Bank term loan due in May 2018 - variable rates: 2.41% - 2.42% (a) | 140.0 | 180.0 | |||||
Senior unsecured bonds due in October 2016 - 6.50% | 130.0 | 430.0 | |||||
Senior unsecured bonds due in October 2019 - 6.75% | 200.0 | - | |||||
Senior unsecured bonds due in October 2021 - 7.25% | 780.0 | 780.0 | |||||
Note to DPL Capital Trust II due in September 2031 - 8.125% | 15.6 | 20.6 | |||||
Unamortized debt discount | -0.7 | -1 | |||||
Total long-term debt | $ | 2,139.6 | $ | 2,284.2 | |||
(a) - range of interest rates for the twelve months ended December 31, 2014 and December 31, 2013, respectively | |||||||
Current portion - long-term debt | |||||||
$ in millions | 31-Dec-14 | 31-Dec-13 | |||||
Bank term loan due in May 2018 - variable rates: 2.41% - 2.42% (a) | $ | 20.0 | $ | 10.0 | |||
U.S. Government note due in February 2061 - 4.2% | 0.1 | 0.1 | |||||
Capital lease obligations | - | 0.1 | |||||
Total current portion - long-term debt | $ | 20.1 | $ | 10.2 | |||
(a) - range of interest rates for the twelve months ended December 31, 2014 and December 31, 2013, respectively | |||||||
At December 31, 2014, maturities of long-term debt are summarized as follows: | |||||||
Due within the twelve months ending December 31, | |||||||
$ in millions | |||||||
2015 | $ | 20.1 | |||||
2016 | 615.1 | ||||||
2017 | 40.1 | ||||||
2018 | 60.1 | ||||||
2019 | 200.1 | ||||||
Thereafter | 1,227.7 | ||||||
2,163.2 | |||||||
Unamortized discounts and premiums, net | -3.5 | ||||||
Total long-term debt | $ | 2,159.7 | |||||
Premiums or discounts recognized at the Merger date are amortized over the life of the debt using the effective interest method. | |||||||
On December 4, 2008, the OAQDA issued $100.0 million of collateralized, variable rate Revenue Refunding Bonds Series A and B due November 1, 2040. In turn, DP&L borrowed these funds from the OAQDA and issued corresponding first mortgage bonds to support repayment of the funds. The payment of principal and interest on each series of the bonds when due is backed by a standby letter of credit issued by JPMorgan Chase Bank, N.A. This letter of credit facility, which expires in June 2018, is irrevocable and has no subjective acceleration clauses. Fees associated with this letter of credit facility were not material during the years ended December 31, 2014, 2013 and 2012. | |||||||
On May 10, 2013, DP&L entered into a $300.0 million unsecured revolving credit agreement with a syndicated bank group. This $300.0 million facility has a five year term expiring on May 10, 2018, a $100.0 million letter of credit sublimit and a feature which provides DP&L the ability to increase the size of the facility by an additional $100.0 million. At December 31, 2014, there were two letters of credit in the amount of $0.7 million outstanding, with the remaining $299.3 million available to DP&L. Fees associated with this revolving credit facility were not material during the years ended December 31, 2014 or 2013. | |||||||
DP&L’s unsecured revolving credit agreement and DP&L’s amended standby letters of credit have two financial covenants, the first being Total Debt to Total Capitalization and the second being EBITDA to Interest Expense. The EBITDA to Interest Expense ratio 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. | |||||||
On March 1, 2011, DP&L completed the purchase of $18.7 million of electric transmission and distribution assets from the federal government that are located at the Wright-Patterson Air Force Base (WPAFB). DP&L financed the acquisition of these assets with a note payable to the federal government that is payable monthly over 50 years and bears interest at 4.2% per annum. | |||||||
On September 19, 2013, DP&L closed a $445.0 million issuance of senior secured first mortgage bonds. These new bonds mature on September 15, 2016, and are secured by DP&L’s First & Refunding Mortgage. Substantially all property, plant and equipment of DP&L is subject to the lien of the First and Refunding Mortgage. | |||||||
On May 10, 2013, DPL entered into a $200.0 million unsecured term loan agreement. This term loan has a five year term expiring on May 10, 2018; however, if DPL has not either: (a) prepaid the full $200.0 million term loan balance; or (b) refinanced its senior unsecured bonds due October 2016 before July 15, 2016, then the maturity of this DPL term loan shall be July 15, 2016. This term loan amortizes at 5% of the original balance per quarter from September 2014 to maturity. As of December 31, 2014 there was $160 million outstanding on this Term Loan. Fees associated with this new term loan were not material during the years ended December 31, 2014 or 2013. | |||||||
On May 10, 2013, DPL entered into a $100.0 million unsecured revolving credit facility. This facility has a $100.0 million letter of credit sublimit and a feature which provides DPL the ability to increase the size of the facility by an additional $50.0 million. This facility has a five year term expiring on May 10, 2018; however, if DPL has not refinanced its senior unsecured bonds due October 2016 before July 15, 2016, then the maturity of this DPL credit facility shall be July 15, 2016. As of December 31, 2014 there was one letter of credit issued in the amount of $2.3 million, with the remaining $97.7 million available to DPL. Fees associated with this revolving credit facility were not material during the years ended December 31, 2014 or 2013. | |||||||
DPL’s unsecured revolving credit agreement and unsecured term loan have two financial covenants. The first financial covenant, a Total Debt to EBITDA ratio, is calculated at the end of each fiscal quarter by dividing total debt at the end of the current quarter by consolidated EBITDA for the four prior fiscal quarters. 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. | |||||||
DPL’s unsecured revolving credit agreement and unsecured term loan restrict dividend payments from DPL to AES and adjust the cost of borrowing under the facilities under certain credit rating scenarios. | |||||||
In connection with the closing of the Merger, DPL assumed $1,250.0 million of debt that Dolphin Subsidiary II, Inc., a subsidiary of AES, issued on October 3, 2011 to partially finance the Merger. The $1,250.0 million was issued in two tranches. The first tranche was $450.0 million of five year senior unsecured notes issued with a 6.50% coupon maturing on October 15, 2016. The second tranche was $800.0 million of ten year senior unsecured notes issued with a 7.25% coupon maturing on October 15, 2021. In December 2013, DPL executed an Open Market Repurchase Program and successfully bought back $20 million of the first tranche of five year senior unsecured notes issued with a 6.50% coupon and $20 million of the second tranche of ten year senior unsecured notes issued with a 7.25% coupon. Subsequent to repurchasing these bonds DPL immediately retired them. | |||||||
On September 6, 2014, DPL announced its intent to purchase a maximum of $280.0 million of aggregate principal of the Senior Unsecured bonds maturing October 2016 through a tender offer. On October 6, 2014, DPL increased the maximum amount of the tender to $300.0 million and on October 20th the tender expired. DPL settled the $300.0 million on October 6th through (a) net proceeds from a $200.0 million Senior Unsecured note issuance (maturing October 2019 and priced at 6.75%); (b) a draw on the DPL revolving line of credit and (c) cash on hand. | |||||||
In October 2014, DPL repaid $5.0 million of the note due to Capital Trust II, which used the funds to repurchase securities in the open market at a slight premium. Subsequent to repurchasing these securities Capital Trust II immediately retired them. | |||||||
DP&L [Member] | |||||||
Debt Obligations | |||||||
Note 5 – Debt Obligations | |||||||
Long-term debt is as follows: | |||||||
Long-term debt | |||||||
$ in millions | 31-Dec-14 | 31-Dec-13 | |||||
First mortgage bonds due in September 2016 - 1.875% | $ | 445.0 | $ | 445.0 | |||
Pollution control series due in January 2028 - 4.7% | 35.3 | 35.3 | |||||
Pollution control series due in January 2034 - 4.8% | 179.1 | 179.1 | |||||
Pollution control series due in September 2036 - 4.8% | 100.0 | 100.0 | |||||
Pollution control series due in November 2040 - variable rates: 0.04% - 0.15% and 0.04% - 0.26% (a) | 100.0 | 100.0 | |||||
U.S. Government note due in February 2061 - 4.2% | 18.1 | 18.2 | |||||
Capital lease obligations | - | - | |||||
Unamortized debt discount | -0.5 | -0.7 | |||||
Total long-term debt | $ | 877.0 | $ | 876.9 | |||
(a) - range of interest rates for the twelve months ended December 31, 2014 and December 31, 2013, respectively | |||||||
Current portion - long-term debt | |||||||
$ in millions | 31-Dec-14 | 31-Dec-13 | |||||
U.S. Government note due in February 2061 - 4.2% | $ | 0.1 | $ | 0.1 | |||
Capital lease obligations | - | 0.1 | |||||
Total current portion - long-term debt | $ | 0.1 | $ | 0.2 | |||
(a) - range of interest rates for the twelve months ended December 31, 2014 and December 31, 2013, respectively | |||||||
At December 31, 2014, maturities of long-term debt are summarized as follows: | |||||||
Due within the twelve months ending December 31, | |||||||
$ in millions | |||||||
2015 | $ | 0.1 | |||||
2016 | 445.1 | ||||||
2017 | 0.1 | ||||||
2018 | 0.1 | ||||||
2019 | 0.1 | ||||||
Thereafter | 432.1 | ||||||
877.6 | |||||||
Unamortized discount | -0.5 | ||||||
Total long-term debt | $ | 877.1 | |||||
On December 4, 2008, the OAQDA issued $100.0 million of collateralized, variable rate Revenue Refunding Bonds Series A and B due November 1, 2040. In turn, DP&L borrowed these funds from the OAQDA and issued corresponding first mortgage bonds to support repayment of the funds. The payment of principal and interest on each series of the bonds when due is backed by two standby letters of credit issued by JPMorgan Chase Bank, N.A. DP&L amended these standby letters of credit on May 31, 2013 and extended the stated maturities to June 2018. These facilities are irrevocable and have no subjective acceleration clauses. Fees associated with this letter of credit facility were not material during the years ended December 31, 2014, 2013 or 2012. | |||||||
On May 10, 2013, DP&L entered into a $300.0 million unsecured revolving credit agreement with a syndicated bank group. This new $300.0 million facility has a five year term expiring on May 10, 2018, a $100.0 million letter of credit sublimit and a feature which provides DP&L the ability to increase the size of the facility by an additional $100.0 million. At December 31, 2014, there were two letters of credit in the amount of $0.7 million outstanding, with the remaining $299.3 million available to DP&L. Fees associated with this revolving credit facility were not material during the years ended December 31, 2014 or 2013. | |||||||
DP&L’s unsecured revolving credit agreements and standby letters of credit have two financial covenants, the first measures Total Debt to Total Capitalization, the ratio 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. The second financial covenant measures EBITDA to Interest Expense. EBITDA to Interest Expense ratio 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. | |||||||
On March 31, 2014, DP&L borrowed $15.0 million from DPL at an interest rate of LIBOR plus 2.0%. This note was due on or before April 30, 2014 and was repaid on April 30, 2014. | |||||||
On March 1, 2011, DP&L completed the purchase of $18.7 million of electric transmission and distribution assets from the federal government that are located at the Wright-Patterson Air Force Base (WPAFB). DP&L financed the acquisition of these assets with a note payable to the federal government that is payable monthly over 50 years and bears interest at 4.2% per annum. | |||||||
On September 19, 2013, DP&L closed a $445.0 million issuance of senior secured first mortgage bonds. These new bonds mature on September 15, 2016, and are secured by DP&L’s First & Refunding Mortgage. | |||||||
Substantially all property, plant and equipment of DP&L is subject to the lien of the First and Refunding Mortgage. | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes | ||||||||||
Note 7 – Income Taxes | ||||||||||
DPL’s components of income tax expense were as follows: | ||||||||||
Years ended December 31, | ||||||||||
$ in millions | 2014 | 2013 | 2012 | |||||||
Computation of tax expense | ||||||||||
Federal income tax expense / (benefit)(a) | $ | -19.8 | $ | -69.9 | $ | -588.7 | ||||
Increases (decreases) in tax resulting from: | ||||||||||
State income taxes, net of federal effect | 1.2 | 1.7 | 3.5 | |||||||
Depreciation of AFUDC - Equity | -3.4 | -3.2 | -2.4 | |||||||
Investment tax credit amortized | -0.5 | -0.5 | -0.3 | |||||||
Section 199 - domestic production deduction | -1.1 | -4.1 | -2.1 | |||||||
Non-deductible merger-related compensation | - | - | 0.6 | |||||||
Non-deductible goodwill impairment | 47.5 | 107.2 | 636.0 | |||||||
Accrual (settlement) for open tax years | -6.6 | -8.8 | -0.1 | |||||||
Other, net (b) | 0.7 | -0.1 | 1.2 | |||||||
Total tax expense | $ | 18.0 | $ | 22.3 | $ | 47.7 | ||||
Components of tax expense | ||||||||||
Federal - current | $ | -0.1 | $ | 1.8 | $ | 48.6 | ||||
State and Local - current | 0.9 | 0.7 | 1.2 | |||||||
Total current | 0.8 | 2.5 | 49.8 | |||||||
Federal - deferred | 16.6 | 18.1 | -4.9 | |||||||
State and local - deferred | 0.6 | 1.7 | 2.8 | |||||||
Total deferred | 17.2 | 19.8 | -2.1 | |||||||
Total tax expense | $ | 18.0 | $ | 22.3 | $ | 47.7 | ||||
Components of Deferred Tax Assets and Liabilities | ||||||||||
December 31, | ||||||||||
$ in millions | 2014 | 2013 | ||||||||
Net non-current Assets / (Liabilities) | ||||||||||
Depreciation / property basis | $ | -548.2 | $ | -531.5 | ||||||
Income taxes recoverable | -14.8 | -11.4 | ||||||||
Regulatory assets | -18 | -15.6 | ||||||||
Investment tax credit | 1.5 | 1.0 | ||||||||
Compensation and employee benefits | 3.2 | -3.9 | ||||||||
Intangibles | -7 | -2 | ||||||||
Long-term debt | -1.5 | -1.7 | ||||||||
Other (c) | -2.5 | 0.8 | ||||||||
Net non-current liabilities | $ | -587.3 | $ | -564.3 | ||||||
Net current Assets / (Liabilities) (d) | ||||||||||
Other | $ | 1.1 | $ | -2.6 | ||||||
Net current assets / (liabilities) | $ | 1.1 | $ | -2.6 | ||||||
(a)The statutory tax rate of 35% was applied to pre-tax earnings. | ||||||||||
(b)Includes expense of $0.4 million, $0.0 million and benefits of $1.2 million in the years ended December 31, 2014 2013, and 2012, respectively, of income tax related to adjustments from prior years. | ||||||||||
(c)The Other non-current liabilities caption includes deferred tax assets of $27.1 million in 2014 and $20.7 million in 2013 related to state and local tax net operating loss carryforwards, net of related valuation allowances of $21.9 million in 2014 and $16.6 million in 2013. These net operating loss carryforwards expire from 2014 to 2027. | ||||||||||
(d)Amounts are included within Other prepayments and current assets and Other current liabilities on the Consolidated Balance Sheets of DPL. | ||||||||||
The following table presents the tax expense / (benefit) related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss. | ||||||||||
Years ended December 31, | ||||||||||
$ in millions | 2014 | 2013 | 2012 | |||||||
Tax expense / (benefit) | $ | -9.1 | $ | 15.4 | $ | -2.5 | ||||
Accounting for Uncertainty in Income Taxes | ||||||||||
We apply the provisions of GAAP relating to the accounting for uncertainty in income taxes. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||
$ in millions | ||||||||||
Balance at December 31, 2012 | $ | 18.3 | ||||||||
Calendar 2013 | ||||||||||
Tax positions taken during prior period | -0.1 | |||||||||
Lapse of Statute of Limitations | -6.9 | |||||||||
Settlement with taxing authorities | -2.5 | |||||||||
Balance at December 31, 2013 | 8.8 | |||||||||
Calendar 2014 | ||||||||||
Tax positions taken during prior period | 2.8 | |||||||||
Lapse of Statute of Limitations | -8.6 | |||||||||
Balance at December 31, 2014 | $ | 3.0 | ||||||||
Of the December 31, 2014 balance of unrecognized tax benefits, $0.9 million is due to uncertainty in the timing of deductibility. | ||||||||||
We recognize interest and penalties related to unrecognized tax benefits in Income tax expense. The amounts accrued as well as the expense / (benefit) recorded were not material for the years ended December 31, 2014, 2013 and 2012. | ||||||||||
Following is a summary of the tax years open to examination by major tax jurisdiction: | ||||||||||
U.S. Federal – 2010 and forward | ||||||||||
State and Local – 2010 and forward | ||||||||||
None of the unrecognized tax benefits are expected to significantly increase or decrease within the next twelve months other than those subject to expiring statutes of limitations. | ||||||||||
The Internal Revenue Service began an examination of our 2008 Federal income tax return during the second quarter of 2010. The results of the examination were approved by the Joint Committee on Taxation on January 18, 2013. As a result of the examination, DPL received a refund of $19.9 million and recorded a $1.2 million reduction to income tax expense. | ||||||||||
DP&L [Member] | ||||||||||
Income Taxes | ||||||||||
Note 6 – Income Taxes | ||||||||||
DP&L’s components of income tax expense were as follows: | ||||||||||
Years ended December 31, | ||||||||||
$ in millions | 2014 | 2013 | 2012 | |||||||
Computation of tax expense | ||||||||||
Federal income tax expense / (benefit)(a) | $ | 53.8 | $ | 35.5 | $ | 50.9 | ||||
Increases (decreases) in tax resulting from: | ||||||||||
State income taxes, net of federal effect | 1.2 | 0.3 | -2 | |||||||
Depreciation of AFUDC - Equity | -2.7 | -2.5 | 3.0 | |||||||
Investment tax credit amortized | -2.5 | -2.5 | -2.5 | |||||||
Section 199 - domestic production deduction | -4.6 | -4.1 | -2.5 | |||||||
Non-deductible merger-related compensation | - | - | 0.6 | |||||||
Accrual (settlement) for open tax years | -6.6 | -8.8 | - | |||||||
Other, net (b) | 1.1 | 0.7 | 7.6 | |||||||
Total tax expense | $ | 39.7 | $ | 18.6 | $ | 55.1 | ||||
Components of Tax Expense | ||||||||||
Federal - current | $ | 34.1 | $ | 38.6 | $ | 52.1 | ||||
State and Local - current | 0.5 | -0.1 | 1.0 | |||||||
Total current | 34.6 | 38.5 | 53.1 | |||||||
Federal - deferred | 4.1 | -20.4 | 4.7 | |||||||
State and local - deferred | 1.0 | 0.5 | -2.7 | |||||||
Total deferred | 5.1 | -19.9 | 2.0 | |||||||
Total tax expense | $ | 39.7 | $ | 18.6 | $ | 55.1 | ||||
December 31, | ||||||||||
$ in millions | 2014 | 2013 | ||||||||
Net non-current Assets / (Liabilities) | ||||||||||
Depreciation / property basis | $ | -618.8 | $ | -607.1 | ||||||
Income taxes recoverable | -14.8 | -11.4 | ||||||||
Regulatory assets | -18 | -15.6 | ||||||||
Investment tax credit | 8.6 | 8.8 | ||||||||
Compensation and employee benefits | 5.2 | -0.2 | ||||||||
Other | -12.2 | -6.8 | ||||||||
Net non-current liabilities | $ | -650 | $ | -632.3 | ||||||
Net current Assets / (Liabilities) (c) | ||||||||||
Other | $ | 0.5 | $ | -5 | ||||||
Net current assets / (liabilities) | $ | 0.5 | $ | -5 | ||||||
(a)The statutory tax rate of 35% was applied to pre-tax earnings. | ||||||||||
(b)Includes expense of $0.7 million, $1.1 million and benefit of $7.6 million in the years ended December 31, 2014, 2013 and 2012, respectively, of income tax related to adjustments from prior years. | ||||||||||
(c)Amounts are included within Other prepayments and current assets and Other current liabilities on the Balance Sheets of DP&L. | ||||||||||
The following table presents the tax (benefit) / expense related to pensions, postemployment benefits, cash flow hedges and financial instruments that were credited to Accumulated other comprehensive loss. | ||||||||||
Years ended December 31, | ||||||||||
$ in millions | 2014 | 2013 | 2012 | |||||||
Tax expense / (benefit) | $ | -6 | $ | 7.0 | $ | -0.8 | ||||
Accounting for Uncertainty in Income Taxes | ||||||||||
We apply the provisions of GAAP relating to the accounting for uncertainty in income taxes. A reconciliation of the beginning and ending amount of unrecognized tax benefits for DP&L is as follows: | ||||||||||
$ in millions | ||||||||||
Balance at December 31, 2012 | $ | 18.3 | ||||||||
Calendar 2013 | ||||||||||
Tax positions taken during prior period | -0.1 | |||||||||
Lapse of Statute of Limitations | -6.9 | |||||||||
Settlement with taxing authorities | -2.5 | |||||||||
Balance at December 31, 2013 | 8.8 | |||||||||
Calendar 2014 | ||||||||||
Tax positions taken during prior period | 2.8 | |||||||||
Lapse of Statute of Limitations | -8.6 | |||||||||
Balance at December 31, 2014 | $ | 3.0 | ||||||||
Of the December 31, 2014 balance of unrecognized tax benefits, $0.9 million is due to uncertainty in the timing of deductibility. | ||||||||||
We recognize interest and penalties related to unrecognized tax benefits in Income tax expense. The amounts accrued and expense (benefit) recorded were not material for each period presented. | ||||||||||
Following is a summary of the tax years open to examination by major tax jurisdiction: | ||||||||||
U.S. Federal – 2010 and forward | ||||||||||
State and Local – 2010 and forward | ||||||||||
None of the unrecognized tax benefits are expected to significantly increase or decrease within the next twelve months other than those subject to expiring statutes of limitations. | ||||||||||
The Internal Revenue Service began an examination of our 2008 Federal income tax return during the second quarter of 2010. The results of the examination were approved by the Joint Committee on Taxation on January 18, 2013. As a result of the examination, DPL received a refund of $19.9 million and recorded a $1.2 million reduction to income tax expense. | ||||||||||
Pension_and_Postretirement_Ben
Pension and Postretirement Benefits | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Pension and Postretirement Benefits | |||||||||||||||||||
Note 8 – Pension and Postretirement Benefits | |||||||||||||||||||
DP&L sponsors a traditional defined benefit pension plan for most of the employees of DPL and its subsidiaries. For collective bargaining employees, the defined benefits are based on a specific dollar amount per year of service. For all other employees (management employees), the traditional defined benefit pension plan is based primarily on compensation and years of service. As of December 31, 2010, this traditional pension plan was closed to new management employees. A participant is 100% vested in all amounts credited to his or her account upon the completion of five vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. In December 2013, an agreement was signed, effective January 1, 2014, whereby the Service Company began providing services including accounting, legal, human resources, information technology and other corporate services on behalf of companies that are part of the U.S. SBU, including among other companies, DPL and DP&L. Employees that transferred from DP&L to the Service Company maintain their previous eligibility to participate in the DP&L pension plan. | |||||||||||||||||||
Almost all management employees beginning employment on or after January 1, 2011 participate in a cash balance pension plan. Similar to the traditional pension plan for management employees, the cash balance benefits are based on compensation and years of service. A participant shall become 100% vested in all amounts credited to his or her account upon the completion of three vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. Vested benefits in the cash balance plan are fully portable upon termination of employment. | |||||||||||||||||||
In addition, we have a Supplemental Executive Retirement Plan (SERP) for certain retired key executives. The SERP has an immaterial unfunded liability related to agreements for retirement benefits of certain terminated and retired key executives. We also include our net liability to our partners related to our share of their pension costs within Pension, retiree and other benefits on our Consolidated Balance Sheets. | |||||||||||||||||||
We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and, in addition, make voluntary contributions from time to time. There were no contributions during the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||
Qualified employees who retired prior to 1987 and their dependents are eligible for health care and life insurance benefits until their death, while qualified employees who retired after 1987 are eligible for life insurance benefits and partially subsidized health care. The partially subsidized health care is at the election of the employee, who pays the majority of the cost, and is available only from their retirement until they are covered by Medicare. We have funded a portion of the union-eligible benefits using a Voluntary Employee Beneficiary Association Trust. | |||||||||||||||||||
We recognize an asset for a plan’s overfunded status and a liability for a plan’s underfunded status and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. For the transmission and distribution areas of our electric business, these amounts are recorded as regulatory assets and liabilities which represent the regulated portion that would otherwise be charged or credited to AOCI. We have historically recorded these costs on the accrual basis and this is how these costs have been historically recovered through customer rates. This factor, combined with the historical precedents from the PUCO and FERC, make these costs probable of future rate recovery. | |||||||||||||||||||
The following tables set forth the changes in our pension and postemployment benefit plans’ obligations and assets recorded on the balance sheets as of December 31, 2014 and 2013. The amounts presented in the following tables for pension include the collective bargaining plan formula, traditional management plan formula and cash balance plan formula and the SERP in the aggregate. The amounts presented for postemployment include both health and life insurance benefits. | |||||||||||||||||||
$ in millions | Pension | ||||||||||||||||||
Year ended December 31, 2014 | Year ended December 31, 2013 | ||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||
Benefit obligation at beginning of period | $ | 370.5 | $ | 395.6 | |||||||||||||||
Service cost | 5.9 | 7.2 | |||||||||||||||||
Interest cost | 17.5 | 15.6 | |||||||||||||||||
Plan amendments | 6.8 | - | |||||||||||||||||
Actuarial (gain) / loss | 67.3 | -26.5 | |||||||||||||||||
Benefits paid | -24.2 | -21.4 | |||||||||||||||||
Benefit obligation at end of period | 443.8 | 370.5 | |||||||||||||||||
Change in plan assets | |||||||||||||||||||
Fair value of plan assets at beginning of period | 349.1 | 361.4 | |||||||||||||||||
Actual return on plan assets | 46.4 | 8.7 | |||||||||||||||||
Contributions to plan assets | 0.4 | 0.4 | |||||||||||||||||
Benefits paid | -24.2 | -21.4 | |||||||||||||||||
Fair value of plan assets at end of period | 371.7 | 349.1 | |||||||||||||||||
Funded status of plan | $ | -72.1 | $ | -21.4 | |||||||||||||||
$ in millions | Postretirement | ||||||||||||||||||
Year ended December 31, 2014 | Year ended December 31, 2013 | ||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||
Benefit obligation at beginning of period | $ | 19.7 | $ | 22.4 | |||||||||||||||
Service cost | 0.2 | 0.2 | |||||||||||||||||
Interest cost | 0.8 | 0.8 | |||||||||||||||||
Actuarial (gain) / loss | 0.2 | -2.2 | |||||||||||||||||
Benefits paid | -1.3 | -1.5 | |||||||||||||||||
Benefit obligation at end of period | 19.6 | 19.7 | |||||||||||||||||
Change in plan assets | |||||||||||||||||||
Fair value of plan assets at beginning of period | 3.7 | 4.2 | |||||||||||||||||
Contributions to plan assets | 0.9 | 1.0 | |||||||||||||||||
Benefits paid | -1.3 | -1.5 | |||||||||||||||||
Fair value of plan assets at end of period | 3.3 | 3.7 | |||||||||||||||||
Funded status of plan | $ | -16.3 | $ | -16 | |||||||||||||||
$ in millions | Pension | Postretirement | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Amounts recognized in the Balance sheets | |||||||||||||||||||
Current liabilities | $ | -0.4 | $ | -0.4 | $ | -0.5 | $ | -0.5 | |||||||||||
Non-current liabilities | -71.7 | -21 | -15.8 | -15.5 | |||||||||||||||
Net liability at Year ended December 31, | $ | -72.1 | $ | -21.4 | $ | -16.3 | $ | -16 | |||||||||||
Amounts recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | |||||||||||||||||||
Components: | |||||||||||||||||||
Prior service cost | $ | 14.1 | $ | 8.8 | $ | 0.4 | $ | 0.5 | |||||||||||
Net actuarial loss / (gain) | 103.4 | 63.0 | -5 | -6 | |||||||||||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | 117.5 | $ | 71.8 | $ | -4.6 | $ | -5.5 | |||||||||||
Recorded as: | |||||||||||||||||||
Regulatory asset | $ | 99.0 | $ | 76.3 | $ | 0.4 | $ | 0.4 | |||||||||||
Regulatory liability | - | - | -4.8 | -5.6 | |||||||||||||||
Accumulated other comprehensive income | 18.5 | -4.5 | -0.2 | -0.3 | |||||||||||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | 117.5 | $ | 71.8 | $ | -4.6 | $ | -5.5 | |||||||||||
The accumulated benefit obligation for our defined benefit pension plans was $431.0 million and $359.8 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||
The net periodic benefit cost (income) of the pension and postemployment benefit plans were: | |||||||||||||||||||
Net Periodic Benefit Cost - Pension | |||||||||||||||||||
$ in millions | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | ||||||||||||||||
Service cost | $ | 5.9 | $ | 7.2 | $ | 6.2 | |||||||||||||
Interest cost | 17.5 | 15.6 | 17.3 | ||||||||||||||||
Expected return on assets (a) | -22.9 | -23.3 | -22.7 | ||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||
Actuarial gain | 3.4 | 4.9 | 5.0 | ||||||||||||||||
Prior service cost | 1.5 | 1.5 | 1.5 | ||||||||||||||||
Net periodic benefit cost | $ | 5.4 | $ | 5.9 | $ | 7.3 | |||||||||||||
Net Periodic Benefit Cost - Postretirement | |||||||||||||||||||
$ in millions | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | ||||||||||||||||
Service cost | $ | 0.2 | $ | 0.2 | $ | 0.1 | |||||||||||||
Interest cost | 0.8 | 0.8 | 0.9 | ||||||||||||||||
Expected return on assets (a) | -0.2 | -0.1 | -0.3 | ||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||
Actuarial loss | -0.6 | -0.5 | -0.6 | ||||||||||||||||
Net periodic benefit cost | $ | 0.2 | $ | 0.4 | $ | 0.1 | |||||||||||||
(a)For purposes of calculating the expected return on pension plan assets under GAAP, the market-related value of assets (MRVA) is used. GAAP requires that the difference between actual plan asset returns and estimated plan asset returns be amortized into the MRVA equally over a period not to exceed five years. We use a methodology under which we include the difference between actual and estimated asset returns in the MRVA equally over a three year period. The MRVA used in the calculation of expected return on pension plan assets was approximately $361.0 million in 2014, $351.2 million in 2013, and $346.0 million in 2012. | |||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | |||||||||||||||||||
Pension | |||||||||||||||||||
$ in millions | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | ||||||||||||||||
Net actuarial loss / (gain) | $ | 43.8 | $ | -12 | $ | 5.5 | |||||||||||||
Prior service cost | 6.8 | - | - | ||||||||||||||||
Reversal of amortization item: | |||||||||||||||||||
Net actuarial loss | -3.4 | -4.9 | -5 | ||||||||||||||||
Prior service cost | -1.5 | -1.5 | -1.5 | ||||||||||||||||
Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 45.7 | $ | -18.4 | $ | -1 | |||||||||||||
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 51.1 | $ | -12.5 | $ | 6.3 | |||||||||||||
Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities (cont.) | |||||||||||||||||||
Postretirement | |||||||||||||||||||
$ in millions | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | ||||||||||||||||
Net actuarial loss / (gain) | $ | 0.4 | $ | -2 | $ | 1.0 | |||||||||||||
Reversal of amortization item: | |||||||||||||||||||
Net actuarial gain | 0.6 | 0.5 | 0.7 | ||||||||||||||||
Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 1.0 | $ | -1.5 | $ | 1.7 | |||||||||||||
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 1.2 | $ | -1.1 | $ | - | |||||||||||||
Estimated amounts that will be amortized from AOCI, Regulatory assets and Regulatory liabilities into net periodic benefit costs during 2015 are: | |||||||||||||||||||
$ in millions | Pension | Postretirement | |||||||||||||||||
Net actuarial gain / (loss) | $ | 5.8 | $ | -0.5 | |||||||||||||||
Prior service cost | $ | 2.0 | $ | - | |||||||||||||||
Our expected return on plan asset assumptions, used to determine benefit obligations, are based on historical long-term rates of return on investments, which use the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors, such as inflation and interest rates, as well as asset diversification and portfolio rebalancing, are evaluated when long-term capital market assumptions are determined. Peer data and historical returns are reviewed to verify reasonableness and appropriateness. | |||||||||||||||||||
For 2015, we are decreasing our expected long-term rate of return assumption to 6.50% from 6.75% for pension plan assets. In addition, we are decreasing our long-term rate of return assumption from to 4.50% from 6.00% for other postemployment benefit plan assets. These rates of return represent our long-term assumptions based on our current portfolio mixes. Also, for 2015, we have decreased our assumed discount rate to 4.02% from 4.86% for pension and to 3.71% from 4.58% for postemployment benefits expense to reflect current duration-based yield curve discount rates. A one percent change in the rate of return assumption for pension would result in an increase or decrease to the 2015 pension expense of approximately $3.5 million. A 25 basis point increase in the discount rate for pension would result in a decrease of approximately $0.5 million to 2015 pension expense. A 25 basis point decrease in the discount rate for pension would result in an increase of approximately $0.8 million to 2015 pension expense. | |||||||||||||||||||
In determining the discount rate to use for valuing liabilities, we used a market yield curve on high-quality fixed income investments as of December 31, 2014. We project the expected benefit payments under the plan based on participant data and based on certain assumptions concerning mortality, retirement rates, termination rates, etc. The expected benefit payments for each year are then discounted back to the measurement date using the appropriate spot rate for each half-year from the yield curve, thereby obtaining a present value of all expected future benefit payments using the yield curve. Finally, an equivalent single discount rate is determined which produces a present value equal to the present value determined using the full yield curve. | |||||||||||||||||||
The weighted average assumptions used to determine benefit obligations at December 31, 2014, 2013 and 2012 were: | |||||||||||||||||||
Benefit Obligation Assumptions | Pension | Postretirement | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Discount rate for obligations | 4.02% | 4.86% | 4.04% | 3.71% | 4.58% | 3.75% | |||||||||||||
Rate of compensation increases | 3.94% | 3.94% | 3.94% | N/A | N/A | N/A | |||||||||||||
The weighted-average assumptions used to determine net periodic benefit cost (income) for the years ended December 31, 2014, 2013 and 2012 were: | |||||||||||||||||||
Net Periodic Benefit | Pension | Postretirement | |||||||||||||||||
Cost / (Income) Assumptions | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Discount rate | 4.86% | 4.04% | 4.88% | 4.51% | 4.58% | 4.62% | |||||||||||||
Expected rate of return | 6.75% | 6.75% | 7.00% | 6.00% | 6.00% | 6.00% | |||||||||||||
on plan assets | |||||||||||||||||||
Rate of compensation increases | 3.94% | 3.94% | 3.94% | N/A | N/A | N/A | |||||||||||||
The assumed health care cost trend rates at December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||||||||
Health Care Cost Assumptions | Expense | Benefit Obligation | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Pre - age 65 | |||||||||||||||||||
Current health care cost trend rate | 7.75% | 8.00% | 8.50% | 6.97% | 7.75% | 8.00% | |||||||||||||
Year trend reaches ultimate | 2023 | 2019 | 2019 | 2029 | 2023 | 2019 | |||||||||||||
Post - age 65 | |||||||||||||||||||
Current health care cost trend rate | 6.75% | 7.50% | 8.00% | 6.97% | 6.75% | 7.50% | |||||||||||||
Year trend reaches ultimate | 2021 | 2018 | 2018 | 2029 | 2021 | 2018 | |||||||||||||
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% | 4.50% | 5.00% | 5.00% | |||||||||||||
The assumed health care cost trend rates have an effect on the amounts reported for the health care plans. A one-percentage point change in assumed health care cost trend rates would have the following effects on the net periodic postemployment benefit cost and the accumulated postemployment benefit obligation: | |||||||||||||||||||
Effect of change in health care cost trend rate | |||||||||||||||||||
$ in millions | One-percent | One-percent | |||||||||||||||||
increase | decrease | ||||||||||||||||||
Service cost plus interest cost | $ | 0.1 | $ | - | |||||||||||||||
Benefit obligation | $ | 1.0 | $ | -0.9 | |||||||||||||||
Benefit payments, which reflect future service, are expected to be paid as follows: | |||||||||||||||||||
Estimated future benefit payments and Medicare Part D reimbursements | |||||||||||||||||||
$ in millions due within the following years: | Pension | Postretirement | |||||||||||||||||
2015 | $ | 24.8 | $ | 1.9 | |||||||||||||||
2016 | $ | 25.2 | $ | 1.8 | |||||||||||||||
2017 | $ | 25.7 | $ | 1.7 | |||||||||||||||
2018 | $ | 26.3 | $ | 1.6 | |||||||||||||||
2019 | $ | 26.7 | $ | 1.5 | |||||||||||||||
2020 - 2024 | $ | 137.0 | $ | 6.1 | |||||||||||||||
We expect to make contributions of $0.4 million to our SERP in 2015 to cover benefit payments. We also expect to contribute $1.9 million to our other postemployment benefit plans in 2015 to cover benefit payments. We do not expect to make any contributions to our pension plan during 2015. | |||||||||||||||||||
The Pension Protection Act of 2006 (the Act) contained new requirements for our single employer defined benefit pension plan. In addition to establishing a 100% funding target for plan years beginning after December 31, 2008, the Act also limits some benefits if the funded status of pension plans drops below certain thresholds. Among other restrictions under the Act, if the funded status of a plan falls below a predetermined ratio of 80%, lump-sum payments to new retirees are limited to 50% of amounts that otherwise would have been paid and new benefit improvements may not go into effect. For the 2014 plan year, the funded status of our defined benefit pension plan as calculated under the requirements of the Act was 113.86% and is estimated to be 113.86% until the 2015 status is certified in September 2015 for the 2015 plan year. The Worker, Retiree, and Employer Recovery Act of 2008 (WRERA), which was signed into law on December 23, 2008, grants plan sponsors certain relief from funding requirements and benefit restrictions of the Act. | |||||||||||||||||||
Plan Assets | |||||||||||||||||||
Plan assets are invested using a total return investment approach whereby a mix of equity securities, debt securities and other investments are used to preserve asset values, diversify risk and achieve our target investment return benchmark. Investment strategies and asset allocations are based on careful consideration of plan liabilities, the plan's funded status and our financial condition. Investment performance and asset allocation are measured and monitored on an ongoing basis. | |||||||||||||||||||
Plan assets are managed in a balanced portfolio comprised of two major components: an equity portion and a fixed income portion. The expected role of plan equity investments is to maximize the long-term real growth of plan assets, while the role of fixed income investments is to generate current income, provide for more stable periodic returns and provide some protection against a prolonged decline in the market value of plan equity investments. | |||||||||||||||||||
Long-term strategic asset allocation guidelines are determined by management and take into account the Plan’s long-term objectives as well as its short-term constraints. The target allocations for plan assets are 2 – 41% for equity securities, 60 – 82% for fixed income securities and 8 – 16% for other investments. Equity securities include U.S. and international equity, while fixed income securities include long-duration and high-yield bond funds and emerging market debt funds. Other investments include hedge funds that follow several different strategies. | |||||||||||||||||||
Most of our Plan assets are measured using quoted, observable prices which are considered Level One inputs in the Fair Value Hierarchy. The Core property collective fund and the Common collective fund are measured using Level Two inputs that are quoted prices for identical assets in markets that are less active. | |||||||||||||||||||
The following table summarizes the Company’s target pension plan allocation for 2014: | |||||||||||||||||||
Target | |||||||||||||||||||
Allocation | |||||||||||||||||||
Equity Securities | 19% | ||||||||||||||||||
Debt Securities | 69% | ||||||||||||||||||
Real Estate | 6% | ||||||||||||||||||
Other | 6% | ||||||||||||||||||
The fair values of our pension plan assets at December 31, 2014 by asset category are as follows: | |||||||||||||||||||
Fair Value Measurements for Pension Plan Assets at December 31, 2014 | |||||||||||||||||||
Asset Category | Market Value | Quoted prices | Significant | Significant | |||||||||||||||
$ in millions | at December 31, 2014 | in active | observable | unobservable | |||||||||||||||
markets for | inputs | inputs | |||||||||||||||||
identical assets | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Equity securities (a) | |||||||||||||||||||
Small/Mid cap equity | $ | 10.6 | $ | 10.6 | $ | - | $ | - | |||||||||||
Large cap equity | 22.2 | 22.2 | - | - | |||||||||||||||
International equity | 18.2 | 18.2 | - | - | |||||||||||||||
Emerging markets equity | 2.8 | 2.8 | - | - | |||||||||||||||
SIIT dynamic equity | 11.6 | 11.6 | - | - | |||||||||||||||
Total equity securities | 65.4 | 65.4 | - | - | |||||||||||||||
Debt securities (b) | |||||||||||||||||||
Emerging markets debt | 6.0 | 6.0 | - | - | |||||||||||||||
High yield bond | 6.5 | 6.5 | - | - | |||||||||||||||
Long duration fund | 242.7 | 242.7 | - | - | |||||||||||||||
Total debt securities | 255.2 | 255.2 | - | - | |||||||||||||||
Cash and cash equivalents (c) | |||||||||||||||||||
Cash | 1.6 | 1.6 | - | - | |||||||||||||||
Other investments (d) | |||||||||||||||||||
Core property collective fund | 26.3 | - | 26.3 | - | |||||||||||||||
Common collective fund | 23.2 | - | 23.2 | - | |||||||||||||||
Total other investments | 49.5 | - | 49.5 | - | |||||||||||||||
Total pension plan assets | $ | 371.7 | $ | 322.2 | $ | 49.5 | $ | - | |||||||||||
(a)This category includes investments in equity securities of large, small and medium sized companies and equity securities of foreign companies including those in developing countries. | |||||||||||||||||||
(b)This category includes investments in investment-grade fixed-income instruments that are designed to mirror the term of the pension assets and generally have a tenor between 10 and 30 years. | |||||||||||||||||||
(c)This category comprises cash held to pay beneficiaries. The fair value of cash equals its book value. | |||||||||||||||||||
(d)This category represents a hedge fund of funds made up of 30+ different hedge fund managers diversified over eight different hedge strategies. | |||||||||||||||||||
The fair values of our pension plan assets at December 31, 2013 by asset category are as follows: | |||||||||||||||||||
Fair Value Measurements for Pension Plan Assets at December 31, 2013 | |||||||||||||||||||
Asset Category | Market Value | Quoted prices | Significant | Significant | |||||||||||||||
$ in millions | at December 31, 2013 | in active | observable | unobservable | |||||||||||||||
markets for | inputs | inputs | |||||||||||||||||
identical assets | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Equity securities (a) | |||||||||||||||||||
Small/Mid cap equity | $ | 10.5 | $ | 10.5 | $ | - | $ | - | |||||||||||
Large cap equity | 20.8 | 20.8 | - | - | |||||||||||||||
International equity | 20.3 | 20.3 | - | - | |||||||||||||||
Emerging markets equity | 3.2 | 3.2 | - | - | |||||||||||||||
SIIT dynamic equity | 10.5 | 10.5 | - | - | |||||||||||||||
Total equity securities | 65.3 | 65.3 | - | - | |||||||||||||||
Debt securities (b) | |||||||||||||||||||
Emerging markets debt | 6.6 | 6.6 | - | - | |||||||||||||||
High yield bond | 6.9 | 6.9 | - | - | |||||||||||||||
Long duration fund | 223.3 | 223.3 | - | - | |||||||||||||||
Total debt securities | 236.8 | 236.8 | - | - | |||||||||||||||
Cash and cash equivalents (c) | |||||||||||||||||||
Cash | 0.9 | 0.9 | - | - | |||||||||||||||
Other investments (d) | |||||||||||||||||||
Core property collective fund | 23.5 | - | 23.5 | - | |||||||||||||||
Common collective fund | 22.6 | - | 22.6 | - | |||||||||||||||
Total other investments | 46.1 | - | 46.1 | - | |||||||||||||||
Total pension plan assets | $ | 349.1 | $ | 303.0 | $ | 46.1 | $ | - | |||||||||||
(a)This category includes investments in equity securities of large, small and medium sized companies and equity securities of foreign companies including those in developing countries. | |||||||||||||||||||
(b)This category includes investments in investment-grade fixed-income instruments that are designed to mirror the term of the pension assets and generally have a tenor between 10 and 30 years. | |||||||||||||||||||
(c)This category comprises cash held to pay beneficiaries. The fair value of cash equals its book value. | |||||||||||||||||||
(d)This category represents a hedge fund of funds made up of 30+ different hedge fund managers diversified over eight different hedge strategies. | |||||||||||||||||||
The fair values of our other postemployment benefit plan assets at December 31, 2014 by asset category are as follows: | |||||||||||||||||||
Fair Value Measurements for Postemployment Benefit Plan Assets at December 31, 2014 | |||||||||||||||||||
Asset Category | Market Value | Quoted prices | Significant | Significant | |||||||||||||||
$ in millions | at December 31, 2014 | in active | observable | unobservable | |||||||||||||||
markets for | inputs | inputs | |||||||||||||||||
identical assets | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
JP Morgan Core Bond Fund (a) | $ | 3.2 | $ | 3.2 | $ | - | $ | - | |||||||||||
(a)This category includes investments in U.S. government obligations and mortgage-backed and asset-backed securities. | |||||||||||||||||||
The fair values of our other postemployment benefit plan assets at December 31, 2013 by asset category are as follows: | |||||||||||||||||||
Fair Value Measurements for Postemployment Benefit Plan Assets at December 31, 2013 | |||||||||||||||||||
Asset Category | Market Value | Quoted prices | Significant | Significant | |||||||||||||||
$ in millions | at December 31, 2013 | in active | observable | unobservable | |||||||||||||||
markets for | inputs | inputs | |||||||||||||||||
identical assets | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
JP Morgan Core Bond Fund (a) | $ | 3.7 | $ | 3.7 | $ | - | $ | - | |||||||||||
(a)This category includes investments in U.S. government obligations and mortgage-backed and asset-backed securities. | |||||||||||||||||||
DP&L [Member] | |||||||||||||||||||
Pension and Postretirement Benefits | |||||||||||||||||||
Note 7 – Pension and Postretirement Benefits | |||||||||||||||||||
DP&L sponsors a traditional defined benefit pension plan for most of the employees of DPL and its subsidiaries. For collective bargaining employees, the defined benefits are based on a specific dollar amount per year of service. For all other employees (management employees), the traditional defined benefit pension plan is based primarily on compensation and years of service. As of December 31, 2010, this traditional pension plan was closed to new management employees. A participant is 100% vested in all amounts credited to his or her account upon the completion of five vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. In December 2013, an agreement was signed, effective January 1, 2014, whereby the Service Company began providing services including accounting, legal, human resources, information technology and other corporate services on behalf of companies that are part of the U.S. SBU, including among other companies, DPL and DP&L. Employees that transferred from DP&L to the Service Company maintain their previous eligibility to participate in the DP&L pension plan. | |||||||||||||||||||
Almost all management employees beginning employment on or after January 1, 2011 participate in a cash balance pension plan. Similar to the traditional pension plan for management employees, the cash balance benefits are based on compensation and years of service. A participant shall become 100% vested in all amounts credited to his or her account upon the completion of three vesting years, as defined in The Dayton Power and Light Company Retirement Income Plan, or the participant’s death or disability. If a participant’s employment is terminated, other than by death or disability, prior to such participant becoming 100% vested in his or her account, the account shall be forfeited as of the date of termination. Vested benefits in the cash balance plan are fully portable upon termination of employment. | |||||||||||||||||||
In addition, we have a Supplemental Executive Retirement Plan (SERP) for certain retired key executives as well as an immaterial unfunded liability related to agreements for retirement benefits of certain terminated and retired key executives. We also include our net liability to our partners related to our share of their pension costs within the Pension, retiree and other benefits on our Balance Sheets. | |||||||||||||||||||
We generally fund pension plan benefits as accrued in accordance with the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (ERISA) and, in addition, make voluntary contributions from time to time. There were no contributions during the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||
Qualified employees who retired prior to 1987 and their dependents are eligible for health care and life insurance benefits until their death, while qualified employees who retired after 1987 are eligible for life insurance benefits and partially subsidized health care. The partially subsidized health care is at the election of the employee, who pays the majority of the cost, and is available only from their retirement until they are covered by Medicare. We have funded a portion of the union-eligible benefits using a Voluntary Employee Beneficiary Association Trust. | |||||||||||||||||||
We recognize an asset for a plan’s overfunded status and a liability for a plan’s underfunded status and recognize, as a component of OCI, the changes in the funded status of the plan that arise during the year that are not recognized as a component of net periodic benefit cost. For the transmission and distribution areas of our electric business, these amounts are recorded as regulatory assets and liabilities which represent the regulated portion that would otherwise be charged or credited to AOCI. We have historically recorded these costs on the accrual basis and this is how these costs have been historically recovered through customer rates. This factor, combined with the historical precedents from the PUCO and FERC, make these costs probable of future rate recovery. | |||||||||||||||||||
The following tables set forth the changes in our pension and postemployment benefit plans’ obligations and assets recorded on the balance sheets as of December 31, 2014 and 2013. The amounts presented in the following tables for pension include the collective bargaining plan formula, traditional management plan formula and cash balance plan formula and the SERP in the aggregate. The amounts presented for postemployment include both health and life insurance benefits. | |||||||||||||||||||
$ in millions | Pension | ||||||||||||||||||
Years ended December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||
Benefit obligation at beginning of period | $ | 370.5 | $ | 395.6 | |||||||||||||||
Service cost | 5.9 | 7.2 | |||||||||||||||||
Interest cost | 17.5 | 15.6 | |||||||||||||||||
Plan amendments | 6.8 | - | |||||||||||||||||
Actuarial (gain) / loss | 67.3 | -26.5 | |||||||||||||||||
Benefits paid | -24.2 | -21.4 | |||||||||||||||||
Benefit obligation at end of period | 443.8 | 370.5 | |||||||||||||||||
Change in plan assets | |||||||||||||||||||
Fair value of plan assets at beginning of period | 349.1 | 361.4 | |||||||||||||||||
Actual return on plan assets | 46.4 | 8.7 | |||||||||||||||||
Contributions to plan assets | 0.4 | 0.4 | |||||||||||||||||
Benefits paid | -24.2 | -21.4 | |||||||||||||||||
Fair value of plan assets at end of period | 371.7 | 349.1 | |||||||||||||||||
Funded status of plan | $ | -72.1 | $ | -21.4 | |||||||||||||||
$ in millions | Postretirement | ||||||||||||||||||
Years ended December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||
Benefit obligation at beginning of period | $ | 19.7 | $ | 22.4 | |||||||||||||||
Service cost | 0.2 | 0.2 | |||||||||||||||||
Interest cost | 0.8 | 0.8 | |||||||||||||||||
Actuarial (gain) / loss | 0.2 | -2.2 | |||||||||||||||||
Benefits paid | -1.3 | -1.5 | |||||||||||||||||
Benefit obligation at end of period | 19.6 | 19.7 | |||||||||||||||||
Change in plan assets | |||||||||||||||||||
Fair value of plan assets at beginning of period | 3.7 | 4.2 | |||||||||||||||||
Contributions to plan assets | 0.9 | 1.0 | |||||||||||||||||
Benefits paid | -1.3 | -1.5 | |||||||||||||||||
Fair value of plan assets at end of period | 3.3 | 3.7 | |||||||||||||||||
Funded status of plan | $ | -16.3 | $ | -16 | |||||||||||||||
$ in millions | Pension | Postretirement | |||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Amounts recognized in the Balance sheets | |||||||||||||||||||
Current liabilities | $ | -0.4 | $ | -0.4 | $ | -0.5 | $ | -0.5 | |||||||||||
Non-current liabilities | -71.7 | -21 | -15.8 | -15.5 | |||||||||||||||
Net liability at Year ended December 31, | $ | -72.1 | $ | -21.4 | $ | -16.3 | $ | -16 | |||||||||||
Amounts recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | |||||||||||||||||||
Components: | |||||||||||||||||||
Prior service cost | $ | 20.3 | $ | 16.3 | $ | 0.6 | $ | 0.7 | |||||||||||
Net actuarial loss / (gain) | 152.5 | 115.1 | -5.8 | -6.9 | |||||||||||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | 172.8 | $ | 131.4 | $ | -5.2 | $ | -6.2 | |||||||||||
Recorded as: | |||||||||||||||||||
Regulatory asset | $ | 99.0 | $ | 76.3 | $ | - | $ | - | |||||||||||
Regulatory liability | - | - | -4.5 | -5.2 | |||||||||||||||
Accumulated other comprehensive income | 73.8 | 55.1 | -0.7 | -1 | |||||||||||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | 172.8 | $ | 131.4 | $ | -5.2 | $ | -6.2 | |||||||||||
The accumulated benefit obligation for our defined benefit pension plans was $431.0 million and $359.8 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||
The net periodic benefit cost (income) of the pension and postemployment benefit plans were: | |||||||||||||||||||
Net Periodic Benefit Cost - Pension | |||||||||||||||||||
Years ended December 31, | |||||||||||||||||||
$ in millions | 2014 | 2013 | 2012 | ||||||||||||||||
Service cost | $ | 5.9 | $ | 7.2 | $ | 6.2 | |||||||||||||
Interest cost | 17.5 | 15.6 | 17.3 | ||||||||||||||||
Expected return on assets (a) | -22.9 | -23.6 | -22.7 | ||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||
Actuarial gain | 6.4 | 9.3 | 8.8 | ||||||||||||||||
Prior service cost | 2.8 | 2.8 | 2.8 | ||||||||||||||||
Net periodic benefit cost before adjustments | 9.7 | 11.3 | 12.4 | ||||||||||||||||
Settlement Expense | - | - | 0.6 | ||||||||||||||||
Net periodic benefit cost after adjustments | $ | 9.7 | $ | 11.3 | $ | 13.0 | |||||||||||||
(a)For purposes of calculating the expected return on pension plan assets under GAAP, the market-related value of assets (MRVA) is used. GAAP requires that the difference between actual plan asset returns and estimated plan asset returns be amortized into the MRVA equally over a period not to exceed five years. We use a methodology under which we include the difference between actual and estimated asset returns in the MRVA equally over a three year period. The MRVA used in the calculation of expected return on pension plan assets was approximately $361.0 million in 2014, $351.2 million in 2013, and $346.0 million in 2012. | |||||||||||||||||||
Net Periodic Benefit Cost / (Income) - Postretirement | |||||||||||||||||||
Years ended December 31, | |||||||||||||||||||
$ in millions | 2014 | 2013 | 2012 | ||||||||||||||||
Service cost | $ | 0.2 | $ | 0.2 | $ | 0.1 | |||||||||||||
Interest cost | 0.8 | 0.8 | 0.9 | ||||||||||||||||
Expected return on assets | -0.2 | -0.2 | -0.3 | ||||||||||||||||
Amortization of unrecognized: | |||||||||||||||||||
Actuarial loss | -0.8 | -0.7 | -0.9 | ||||||||||||||||
Prior service credit | 0.1 | 0.1 | 0.1 | ||||||||||||||||
Net periodic benefit cost / (income) | $ | 0.1 | $ | 0.2 | $ | -0.1 | |||||||||||||
Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | |||||||||||||||||||
Pension | |||||||||||||||||||
Years ended December 31, | |||||||||||||||||||
$ in millions | 2014 | 2013 | 2012 | ||||||||||||||||
Net actuarial loss / (gain) | $ | 43.8 | $ | -11.7 | $ | 5.2 | |||||||||||||
Prior service cost | 6.8 | - | - | ||||||||||||||||
Reversal of amortization item: | |||||||||||||||||||
Net actuarial loss | -6.4 | -9.3 | -9.4 | ||||||||||||||||
Prior service cost | -2.8 | -2.8 | -2.8 | ||||||||||||||||
Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 41.4 | $ | -23.8 | $ | -7 | |||||||||||||
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 51.1 | $ | -12.5 | $ | 6.0 | |||||||||||||
Postretirement | |||||||||||||||||||
Years ended December 31, | |||||||||||||||||||
$ in millions | 2014 | 2013 | 2012 | ||||||||||||||||
Net actuarial loss / (gain) | $ | 0.4 | $ | -1.9 | $ | 1.1 | |||||||||||||
Reversal of amortization item: | |||||||||||||||||||
Net actuarial gain | 0.8 | 0.7 | 0.9 | ||||||||||||||||
Prior service credit | -0.1 | -0.1 | -0.1 | ||||||||||||||||
Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 1.1 | $ | -1.3 | $ | 1.9 | |||||||||||||
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 1.2 | $ | -1.1 | $ | 1.8 | |||||||||||||
Estimated amounts that will be amortized from AOCI, Regulatory assets and Regulatory liabilities into net periodic benefit costs during 2015 are: | |||||||||||||||||||
$ in millions | Pension | Postretirement | |||||||||||||||||
Net actuarial gain / (loss) | $ | 9.8 | $ | -0.7 | |||||||||||||||
Prior service cost | $ | 3.3 | $ | 0.1 | |||||||||||||||
Our expected return on plan asset assumptions, used to determine benefit obligations, are based on historical long-term rates of return on investments, which use the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors, such as inflation and interest rates, as well as asset diversification and portfolio rebalancing, are evaluated when long-term capital market assumptions are determined. Peer data and historical returns are reviewed to verify reasonableness and appropriateness. | |||||||||||||||||||
For 2015, we are decreasing our expected long-term rate of return assumption to 6.50% from 6.75% for pension plan assets. In addition, we are decreasing our long-term rate of return assumption to 4.50% from 6.00% for other postemployment benefit plan assets. These rates of return represent our long-term assumptions based on our current portfolio mixes. Also, for 2015, we are decreasing our assumed discount rate to 4.02% from 4.86% for pension and to 3.71% from 4.58% for postemployment benefits expense to reflect current duration-based yield curve discount rates. A one percent change in the rate of return assumption for pension would result in an increase or decrease to the 2015 pension expense of approximately $3.5 million. A 25 basis point change in the discount rate for pension would result in a decrease of approximately $0.5 million to 2015 pension expense. A 25 basis point decrease in the discount rate for pension would result in an increase of approximately $0.8 million to 2015 pension expense. | |||||||||||||||||||
In determining the discount rate to use for valuing liabilities, we used a market yield curve on high-quality fixed income investments as of December 31, 2014. We project the expected benefit payments under the plan based on participant data and based on certain assumptions concerning mortality, retirement rates, termination rates, etc. The expected benefit payments for each year are then discounted back to the measurement date using the appropriate spot rate for each half-year from the yield curve, thereby obtaining a present value of all expected future benefit payments using the yield curve. Finally, an equivalent single discount rate is determined which produces a present value equal to the present value determined using the full yield curve. | |||||||||||||||||||
The weighted average assumptions used to determine benefit obligations during the years ended December 31, 2014, 2013 and 2012 were: | |||||||||||||||||||
Benefit Obligation Assumptions | Pension | Postretirement | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Discount rate for obligations | 4.02% | 4.86% | 4.04% | 3.71% | 4.58% | 3.75% | |||||||||||||
Rate of compensation increases | 3.94% | 3.94% | 3.94% | N/A | N/A | N/A | |||||||||||||
The weighted-average assumptions used to determine net periodic benefit cost (income) for the years ended December 31, 2014, 2013 and 2012 were: | |||||||||||||||||||
Net Periodic Benefit | Pension | Postretirement | |||||||||||||||||
Cost / (Income) Assumptions | |||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Discount rate | 4.86% | 4.04% | 4.88% | 4.51% | 4.58% | 4.62% | |||||||||||||
Expected rate of return | 6.75% | 6.75% | 7.00% | 6.00% | 6.00% | 6.00% | |||||||||||||
on plan assets | |||||||||||||||||||
Rate of compensation increases | 3.94% | 3.94% | 3.94% | N/A | N/A | N/A | |||||||||||||
The assumed health care cost trend rates at December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||||||||
Health Care Cost Assumptions | Expense | Benefit Obligation | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Pre - age 65 | |||||||||||||||||||
Current health care cost trend rate | 7.75% | 8.00% | 8.50% | 6.97% | 7.75% | 8.00% | |||||||||||||
Year trend reaches ultimate | 2023 | 2019 | 2019 | 2029 | 2023 | 2019 | |||||||||||||
Post - age 65 | |||||||||||||||||||
Current health care cost trend rate | 6.75% | 7.50% | 8.00% | 6.97% | 6.75% | 7.50% | |||||||||||||
Year trend reaches ultimate | 2021 | 2018 | 2018 | 2029 | 2021 | 2018 | |||||||||||||
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% | 4.50% | 5.00% | 5.00% | |||||||||||||
The assumed health care cost trend rates have an effect on the amounts reported for the health care plans. A one-percentage point change in assumed health care cost trend rates would have the following effects on the net periodic postemployment benefit cost and the accumulated postemployment benefit obligation: | |||||||||||||||||||
Effect of change in health care cost trend rate | |||||||||||||||||||
$ in millions | One-percent | One-percent | |||||||||||||||||
increase | decrease | ||||||||||||||||||
Service cost plus interest cost | $ | 0.1 | $ | - | |||||||||||||||
Benefit obligation | $ | 1.0 | $ | -0.9 | |||||||||||||||
Benefit payments, which reflect future service, are expected to be paid as follows: | |||||||||||||||||||
Estimated future benefit payments and Medicare Part D reimbursements | |||||||||||||||||||
$ in millions due within the following years: | Pension | Postretirement | |||||||||||||||||
2015 | $ | 24.8 | $ | 1.9 | |||||||||||||||
2016 | $ | 25.2 | $ | 1.8 | |||||||||||||||
2017 | $ | 25.7 | $ | 1.7 | |||||||||||||||
2018 | $ | 26.3 | $ | 1.6 | |||||||||||||||
2019 | $ | 26.7 | $ | 1.5 | |||||||||||||||
2020 - 2024 | $ | 137.0 | $ | 6.1 | |||||||||||||||
We expect to make contributions of $0.4 million to our SERP in 2015 to cover benefit payments. We also expect to contribute $1.9 million to our other postemployment benefit plans in 2015 to cover benefit payments. We do not expect to make any contributions to our pension plan during 2015. | |||||||||||||||||||
The Pension Protection Act of 2006 (the Act) contained new requirements for our single employer defined benefit pension plan. In addition to establishing a 100% funding target for plan years beginning after December 31, 2008, the Act also limits some benefits if the funded status of pension plans drops below certain thresholds. Among other restrictions under the Act, if the funded status of a plan falls below a predetermined ratio of 80%, lump-sum payments to new retirees are limited to 50% of amounts that otherwise would have been paid and new benefit improvements may not go into effect. For the 2014 plan year, the funded status of our defined benefit pension plan as calculated under the requirements of the Act was 113.86% and is estimated to be 113.86% until the 2015 status is certified in September 2015 for the 2015 plan year. The Worker, Retiree, and Employer Recovery Act of 2008 (WRERA), which was signed into law on December 23, 2008, grants plan sponsors certain relief from funding requirements and benefit restrictions of the Act. | |||||||||||||||||||
Plan Assets | |||||||||||||||||||
Plan assets are invested using a total return investment approach whereby a mix of equity securities, debt securities and other investments are used to preserve asset values, diversify risk and achieve our target investment return benchmark. Investment strategies and asset allocations are based on careful consideration of plan liabilities, the plan's funded status and our financial condition. Investment performance and asset allocation are measured and monitored on an ongoing basis. | |||||||||||||||||||
Plan assets are managed in a balanced portfolio comprised of two major components: an equity portion and a fixed income portion. The expected role of plan equity investments is to maximize the long-term real growth of plan assets, while the role of fixed income investments is to generate current income, provide for more stable periodic returns and provide some protection against a prolonged decline in the market value of plan equity investments. | |||||||||||||||||||
Long-term strategic asset allocation guidelines are determined by management and take into account the Plan’s long-term objectives as well as its short-term constraints. The target allocations for plan assets are 2 – 41% for equity securities, 60 – 82% for fixed income securities and 8 – 16% for other investments. Equity securities include U.S. and international equity, while fixed income securities include long-duration and high-yield bond funds and emerging market debt funds. Other investments include hedge funds that follow several different strategies. | |||||||||||||||||||
Most of our Plan assets are measured using quoted, observable prices which are considered Level One inputs in the Fair Value Hierarchy. The Core property collective fund and the Common collective fund are measured using Level Two inputs that are quoted prices for identical assets in markets that are less active. | |||||||||||||||||||
he following table summarizes the Company’s target pension plan allocation for 2014: | |||||||||||||||||||
Target | |||||||||||||||||||
Allocation | |||||||||||||||||||
Equity Securities | 19% | ||||||||||||||||||
Debt Securities | 69% | ||||||||||||||||||
Real Estate | 6% | ||||||||||||||||||
Other | 6% | ||||||||||||||||||
The fair values of our pension plan assets at December 31, 2014 by asset category are as follows: | |||||||||||||||||||
Fair Value Measurements for Pension Plan Assets at December 31, 2014 | |||||||||||||||||||
Asset Category | Market Value | Quoted prices | Significant | Significant | |||||||||||||||
$ in millions | at December 31, 2014 | in active | observable | unobservable | |||||||||||||||
markets for | inputs | inputs | |||||||||||||||||
identical assets | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Equity securities (a) | |||||||||||||||||||
Small/Mid cap equity | $ | 10.6 | $ | 10.6 | $ | - | $ | - | |||||||||||
Large cap equity | 22.2 | 22.2 | - | - | |||||||||||||||
International equity | 18.2 | 18.2 | - | - | |||||||||||||||
Emerging markets equity | 2.8 | 2.8 | - | - | |||||||||||||||
SIIT dynamic equity | 11.6 | 11.6 | - | - | |||||||||||||||
Total equity securities | 65.4 | 65.4 | - | - | |||||||||||||||
Debt Securities (b) | |||||||||||||||||||
Emerging markets debt | 6.0 | 6.0 | - | - | |||||||||||||||
High yield bond | 6.5 | 6.5 | - | - | |||||||||||||||
Long duration fund | 242.7 | 242.7 | - | - | |||||||||||||||
Total debt securities | 255.2 | 255.2 | - | - | |||||||||||||||
Cash and cash equivalents (c) | |||||||||||||||||||
Cash | 1.6 | 1.6 | - | - | |||||||||||||||
Other investments (d) | |||||||||||||||||||
Core property collective fund | 26.3 | - | 26.3 | - | |||||||||||||||
Common collective fund | 23.2 | - | 23.2 | - | |||||||||||||||
Total other investments | 49.5 | - | 49.5 | - | |||||||||||||||
Total pension plan assets | $ | 371.7 | $ | 322.2 | $ | 49.5 | $ | - | |||||||||||
(a)This category includes investments in equity securities of large, small and medium sized companies and equity securities of foreign companies including those in developing countries. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the funds. | |||||||||||||||||||
(b)This category includes investments in investment-grade fixed-income instruments, U.S. dollar-denominated debt securities of emerging market issuers and high yield fixed-income securities that are rated below investment grade. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. | |||||||||||||||||||
(c)This category comprises cash held to pay beneficiaries. The fair value of cash equals its book value. | |||||||||||||||||||
(d)This category represents a property fund that invests in commercial real estate and a hedge fund of funds made up of 30+ different hedge fund managers diversified over eight different hedge strategies. The fair value of the hedge fund is valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. | |||||||||||||||||||
The fair values of our pension plan assets at December 31, 2013 by asset category are as follows: | |||||||||||||||||||
Fair Value Measurements for Pension Plan Assets at December 31, 2013 | |||||||||||||||||||
Asset Category | Market Value | Quoted prices | Significant | Significant | |||||||||||||||
$ in millions | at December 31, 2013 | in active | observable | unobservable | |||||||||||||||
markets for | inputs | inputs | |||||||||||||||||
identical assets | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Equity securities (a) | |||||||||||||||||||
Small/Mid cap equity | $ | 10.5 | $ | 10.5 | $ | - | $ | - | |||||||||||
Large cap equity | 20.8 | 20.8 | - | - | |||||||||||||||
International equity | 20.3 | 20.3 | - | - | |||||||||||||||
Emerging markets equity | 3.2 | 3.2 | - | - | |||||||||||||||
SIIT dynamic equity | 10.5 | 10.5 | - | - | |||||||||||||||
Total equity securities | 65.3 | 65.3 | - | - | |||||||||||||||
Debt Securities (b) | |||||||||||||||||||
Emerging markets debt | 6.6 | 6.6 | - | - | |||||||||||||||
High yield bond | 6.9 | 6.9 | - | - | |||||||||||||||
Long duration fund | 223.3 | 223.3 | - | - | |||||||||||||||
Total debt securities | 236.8 | 236.8 | - | - | |||||||||||||||
Cash and cash equivalents (c) | |||||||||||||||||||
Cash | 0.9 | 0.9 | - | - | |||||||||||||||
Other investments (d) | |||||||||||||||||||
Core property collective fund | 23.5 | - | 23.5 | - | |||||||||||||||
Common collective fund | 22.6 | - | 22.6 | - | |||||||||||||||
Total other investments | 46.1 | - | 46.1 | - | |||||||||||||||
Total pension plan assets | $ | 349.1 | $ | 303.0 | $ | 46.1 | $ | - | |||||||||||
(a)This category includes investments in equity securities of large, small and medium sized companies and equity securities of foreign companies including those in developing countries. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund except for the DPL common stock which is valued using the closing price on the New York Stock Exchange. | |||||||||||||||||||
(b)This category includes investments in investment-grade fixed-income instruments, U.S. dollar-denominated debt securities of emerging market issuers and high yield fixed-income securities that are rated below investment grade. The funds are valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. | |||||||||||||||||||
(c)This category comprises cash held to pay beneficiaries. The fair value of cash equals its book value. | |||||||||||||||||||
(d)This category represents a property fund that invests in commercial real estate and a hedge fund of funds made up of 30+ different hedge fund managers diversified over eight different hedge strategies. The fair value of the hedge fund is valued using the net asset value method in which an average of the market prices for the underlying investments is used to value the fund. | |||||||||||||||||||
The fair values of our other postemployment benefit plan assets at December 31, 2014 by asset category are as follows: | |||||||||||||||||||
Fair Value Measurements for Postemployment Benefit Plan Assets at December 31, 2014 | |||||||||||||||||||
Asset Category | Market Value | Quoted prices | Significant | Significant | |||||||||||||||
$ in millions | at December 31, 2014 | in active | observable | unobservable | |||||||||||||||
markets for | inputs | inputs | |||||||||||||||||
identical assets | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
JP Morgan Core Bond Fund (a) | $ | 3.2 | $ | 3.2 | $ | - | $ | - | |||||||||||
(a)This category includes investments in U.S. government obligations and mortgage-backed and asset-backed securities. | |||||||||||||||||||
The fair values of our other postemployment benefit plan assets at December 31, 2013 by asset category are as follows: | |||||||||||||||||||
Fair Value Measurements for Postemployment Benefit Plan Assets at December 31, 2013 | |||||||||||||||||||
Asset Category | Market Value | Quoted prices | Significant | Significant | |||||||||||||||
$ in millions | at December 31, 2013 | in active | observable | unobservable | |||||||||||||||
markets for | inputs | inputs | |||||||||||||||||
identical assets | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
JP Morgan Core Bond Fund (a) | $ | 3.7 | $ | 3.7 | $ | - | $ | - | |||||||||||
(a)This category includes investments in U.S. government obligations and mortgage-backed and asset-backed securities. | |||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
Note 9 – Fair Value Measurements | |||||||||||||||||||||
The fair values of our financial instruments are based on published sources for pricing when possible. We rely on valuation models only when no other method is available to us. The fair value of our financial instruments represents estimates of possible value that may or may not be realized in the future. The table below presents the fair value and cost of our non-derivative instruments at December 31, 2014 and 2013. See Note 10 for the fair values of our derivative instruments. | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
$ in millions | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||
Assets | |||||||||||||||||||||
Money market funds | $ | 0.1 | $ | 0.1 | $ | 0.3 | $ | 0.3 | |||||||||||||
Equity securities | 2.7 | 3.7 | 3.3 | 4.4 | |||||||||||||||||
Debt securities | 4.7 | 4.7 | 5.4 | 5.5 | |||||||||||||||||
Hedge Funds | 0.8 | 0.8 | 0.9 | 0.9 | |||||||||||||||||
Real Estate | 0.4 | 0.4 | 0.4 | 0.4 | |||||||||||||||||
Total assets | $ | 8.7 | $ | 9.7 | $ | 10.3 | $ | 11.5 | |||||||||||||
Liabilities | |||||||||||||||||||||
Debt | $ | 2,159.7 | $ | 2,204.8 | $ | 2,294.4 | $ | 2,334.6 | |||||||||||||
Debt | |||||||||||||||||||||
Unrealized gains or losses are not recognized in the financial statements as debt is presented at the carrying value, net of unamortized premium or discount in the financial statements. The debt amounts include the current portion payable in the next twelve months and have maturities that range from 2016 to 2061. | |||||||||||||||||||||
Master Trust Assets | |||||||||||||||||||||
DP&L established a Master Trust to hold assets that could be used for the benefit of employees participating in employee benefit plans. These assets are primarily comprised of open-ended mutual funds which are valued using the net asset value per unit. These investments are recorded at fair value within Other deferred assets on the balance sheets and classified as available for sale. Any unrealized gains or losses are recorded in AOCI until the securities are sold. | |||||||||||||||||||||
DPL had $0.8 million ($0.5 million after tax) in unrealized gains and immaterial unrealized losses on the Master Trust assets in AOCI at December 31, 2014 and $0.9 million ($0.6 million after tax) in unrealized gains and immaterial unrealized losses in AOCI at December 31, 2013. | |||||||||||||||||||||
Various investments were sold during the past twelve months to facilitate the distribution of benefits. During the past twelve months, $0.4 million ($0.2 million after tax) of unrealized gains were reversed into earnings. Over the next twelve months, $0.4 million ($0.2 million after tax) of unrealized gains are expected to be reversed to earnings. | |||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. These inputs are then categorized as: | |||||||||||||||||||||
· | Level 1 (quoted prices in active markets for identical assets or liabilities); | ||||||||||||||||||||
· | Level 2 (observable inputs such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active); | ||||||||||||||||||||
· | Level 3 (unobservable inputs). | ||||||||||||||||||||
Valuations of assets and liabilities reflect the value of the instrument including the values associated with counterparty risk. We include our own credit risk and our counterparty’s credit risk in our calculation of fair value using global average default rates based on an annual study conducted by a large rating agency. | |||||||||||||||||||||
We did not have any transfers of the fair values of our financial instruments between Level 1 and Level 2 of the fair value hierarchy during the twelve months ended December 31, 2014 and 2013. | |||||||||||||||||||||
The fair value of assets and liabilities at December 31, 2014 measured on a recurring basis and the respective category within the fair value hierarchy for DPL was determined as follows: | |||||||||||||||||||||
Assets and Liabilities at Fair Value | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
$ in millions | Fair Value at December 31, 2014 (a) | Based on | Other | Unobservable inputs | |||||||||||||||||
Quoted Prices | observable | ||||||||||||||||||||
in | inputs | ||||||||||||||||||||
Active Markets | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Master trust assets | |||||||||||||||||||||
Money market funds | $ | 0.1 | $ | 0.1 | $ | - | $ | - | |||||||||||||
Equity securities | 3.7 | 3.7 | - | - | |||||||||||||||||
Debt securities | 4.7 | 4.7 | - | - | |||||||||||||||||
Hedge Funds | 0.8 | - | 0.8 | - | |||||||||||||||||
Real Estate | 0.4 | 0.4 | - | - | |||||||||||||||||
Total Master trust assets | 9.7 | 8.9 | 0.8 | - | |||||||||||||||||
Derivative assets | |||||||||||||||||||||
Forward power contracts | 14.9 | - | 13.7 | 1.2 | |||||||||||||||||
Total derivative assets | 14.9 | - | 13.7 | 1.2 | |||||||||||||||||
Total assets | $ | 24.6 | $ | 8.9 | $ | 14.5 | $ | 1.2 | |||||||||||||
Liabilities | |||||||||||||||||||||
FTRs | $ | 0.6 | $ | - | $ | - | $ | 0.6 | |||||||||||||
Heating oil futures | 0.4 | 0.4 | - | - | |||||||||||||||||
Natural gas futures | 0.1 | 0.1 | - | - | |||||||||||||||||
Forward power contracts | 11.1 | - | 11.1 | - | |||||||||||||||||
Total derivative liabilities | 12.2 | 0.5 | 11.1 | 0.6 | |||||||||||||||||
Long-term debt | 2,204.8 | - | 2,186.6 | 18.2 | |||||||||||||||||
Total liabilities | $ | 2,217.0 | $ | 0.5 | $ | 2,197.7 | $ | 18.8 | |||||||||||||
(a)Includes credit valuation adjustment. | |||||||||||||||||||||
The fair value of assets and liabilities at December 31, 2013 measured on a recurring basis and the respective category within the fair value hierarchy for DPL was determined as follows: | |||||||||||||||||||||
Assets and Liabilities at Fair Value | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
$ in millions | Fair Value at December 31, 2013 (a) | Based on | Other | Unobservable inputs | |||||||||||||||||
Quoted Prices | observable | ||||||||||||||||||||
in | inputs | ||||||||||||||||||||
Active Markets | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Master trust assets | |||||||||||||||||||||
Money market funds | $ | 0.3 | $ | 0.3 | $ | - | $ | - | |||||||||||||
Equity securities | 4.4 | 4.4 | - | - | |||||||||||||||||
Debt securities | 5.5 | 5.5 | - | - | |||||||||||||||||
Hedge Funds | 0.9 | - | 0.9 | - | |||||||||||||||||
Real Estate | 0.4 | 0.4 | - | - | |||||||||||||||||
Total Master trust assets | 11.5 | 10.6 | 0.9 | - | |||||||||||||||||
Derivative assets | |||||||||||||||||||||
FTRs | 0.2 | - | - | 0.2 | |||||||||||||||||
Heating oil futures | 0.2 | 0.2 | - | - | |||||||||||||||||
Forward power contracts | 13.4 | - | 13.4 | - | |||||||||||||||||
Total derivative assets | 13.8 | 0.2 | 13.4 | 0.2 | |||||||||||||||||
Total assets | $ | 25.3 | $ | 10.8 | $ | 14.3 | $ | 0.2 | |||||||||||||
Liabilities | |||||||||||||||||||||
Forward power contracts | $ | 10.6 | $ | - | $ | 10.6 | $ | - | |||||||||||||
Total derivative liabilities | 10.6 | - | 10.6 | - | |||||||||||||||||
Long-term debt | 2,334.6 | - | 2,316.1 | 18.5 | |||||||||||||||||
Total liabilities | $ | 2,345.2 | $ | - | $ | 2,326.7 | $ | 18.5 | |||||||||||||
(a)Includes credit valuation adjustment. | |||||||||||||||||||||
Our financial instruments are valued using the market approach in the following categories: | |||||||||||||||||||||
· | Level 1 inputs are used for derivative contracts such as heating oil futures and for money market accounts that are considered cash equivalents. The fair value is determined by reference to quoted market prices and other relevant information generated by market transactions. | ||||||||||||||||||||
· | Level 2 inputs are used to value derivatives such as forward power contracts and forward NYMEX-quality coal contracts (which are traded on the OTC market but which are valued using prices on the NYMEX for similar contracts on the OTC market). Other Level 2 assets include: open-ended mutual funds that are in the Master Trust, which are valued using the end of day NAV per unit; and interest rate hedges, which use observable inputs to populate a pricing model. | ||||||||||||||||||||
· | Level 3 inputs such as financial transmission rights are considered a Level 3 input because the monthly auctions are considered inactive. Our Level 3 inputs are immaterial to our derivative balances as a whole and as such no further disclosures are presented. | ||||||||||||||||||||
Our debt is fair valued for disclosure purposes only and most of the fair values are determined using quoted market prices in inactive markets. These fair value inputs are considered Level 2 in the fair value hierarchy. The WPAFB note is not publicly traded. Fair value is assumed to equal carrying value. These fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs. Additional Level 3 disclosures were not presented since debt is not recorded at fair value. | |||||||||||||||||||||
Approximately 97% of the inputs to the fair value of our derivative instruments are from quoted market prices. | |||||||||||||||||||||
Non-recurring Fair Value Measurements | |||||||||||||||||||||
We use the cost approach to determine the fair value of our AROs which are estimated by discounting expected cash outflows to their present value at the initial recording of the liability. Cash outflows are based on the approximate future disposal cost as determined by market information, historical information or other management estimates. These inputs to the fair value of the AROs would be considered Level 3 inputs under the fair value hierarchy. In 2014, AROs for asbestos, landfills, and river structures decreased by $1.5 million ($1.0 million after tax) primarily due to the sale of a generation plant. The ARO for ash ponds was increased by $2.4 million ($1.6 million after tax) due to new rules issued by the USEPA in December 2014 that will be effective in June 2015. The December 2014 increase of the AROs for ash ponds was limited to the ponds located at plants which are no longer in operation. Additional ash pond AROs will be recorded in the first quarter of 2015 for the ponds located at plants which remain in operation. There were no additions to our AROs during the year ended December 31, 2013. | |||||||||||||||||||||
When evaluating impairment of goodwill and long-lived assets, we measure fair value using the applicable fair value measurement guidance. Impairment expense is measured by comparing the fair value at the evaluation date to the carrying amount. The following table summarizes major categories of assets and liabilities measured at fair value on a nonrecurring basis during the period and their level within the fair value hierarchy: | |||||||||||||||||||||
$ in millions | Year ended December 31, 2014 | ||||||||||||||||||||
Carrying | Fair Value | Gross | |||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Loss | |||||||||||||||||
Assets | |||||||||||||||||||||
Long-lived assets held and used (a) | |||||||||||||||||||||
DP&L (East Bend) | $ | 14.2 | $ | - | $ | - | $ | 2.7 | $ | 11.5 | |||||||||||
Goodwill (b) | |||||||||||||||||||||
DPLER Reporting unit | $ | 135.8 | $ | - | $ | - | $ | - | $ | 135.8 | |||||||||||
$ in millions | Year ended December 31, 2013 | ||||||||||||||||||||
Carrying | Fair Value | Gross | |||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Loss | |||||||||||||||||
Assets | |||||||||||||||||||||
Long-lived assets held and used (a) | |||||||||||||||||||||
DP&L (Conesville) | $ | 26.2 | $ | - | $ | - | $ | - | $ | 26.2 | |||||||||||
Goodwill (b) | |||||||||||||||||||||
DP&L Reporting unit | $ | 623.3 | $ | - | $ | - | $ | 317.0 | $ | 306.3 | |||||||||||
(a)See Note 15 for further information | |||||||||||||||||||||
(b)See Note 5 for further information | |||||||||||||||||||||
The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets during the year ended December 31, 2014: | |||||||||||||||||||||
$ in millions | Fair Value | Valuation Technique | Unobservable input | Range (Weighted Average) | |||||||||||||||||
Long-lived assets held and used: | |||||||||||||||||||||
DP&L (East Bend) | $ | - | Discounted cash flows | Annual revenue growth | -31% to 18% (0%) | ||||||||||||||||
Annual pretax operating margin | 3% to 34% (15%) | ||||||||||||||||||||
DP&L [Member] | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
Note 8 – Fair Value Measurements | |||||||||||||||||||||
The fair values of our financial instruments are based on published sources for pricing when possible. We rely on valuation models only when no other method is available to us. The fair value of our financial instruments represents estimates of possible value that may or may not be realized in the future. The table below presents the fair value and cost of our non-derivative instruments at December 31, 2014 and 2013. See also Note 9 for the fair values of our derivative instruments. | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
$ in millions | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||
Assets | |||||||||||||||||||||
Money market funds | $ | 0.1 | $ | 0.1 | $ | 0.3 | $ | 0.3 | |||||||||||||
Equity securities | 2.7 | 3.7 | 3.3 | 4.4 | |||||||||||||||||
Debt securities | 4.7 | 4.7 | 5.4 | 5.5 | |||||||||||||||||
Hedge Funds | 0.8 | 0.8 | 0.9 | 0.9 | |||||||||||||||||
Real Estate | 0.4 | 0.4 | 0.4 | 0.4 | |||||||||||||||||
Total assets | $ | 8.7 | $ | 9.7 | $ | 10.3 | $ | 11.5 | |||||||||||||
Liabilities | |||||||||||||||||||||
Debt | $ | 877.1 | $ | 882.5 | $ | 877.1 | $ | 859.6 | |||||||||||||
Debt | |||||||||||||||||||||
The fair value of debt is based on current public market prices for disclosure purposes only. Unrealized gains or losses are not recognized in the financial statements as debt is presented at amortized cost in the financial statements. The debt amounts include the current portion payable in the next twelve months and have maturities that range from 2016 to 2061. | |||||||||||||||||||||
Master Trust Assets | |||||||||||||||||||||
DP&L established a Master Trust to hold assets that could be used for the benefit of employees participating in employee benefit plans and these assets are not used for general operating purposes. These assets are primarily comprised of open-ended mutual funds which are valued using the net asset value per unit. These investments are recorded at fair value within Other assets on the balance sheets and classified as available for sale. Any unrealized gains or losses are recorded in AOCI until the securities are sold. | |||||||||||||||||||||
DP&L had $1.1 million ($0.7 million after tax) in unrealized gains and immaterial unrealized losses on the Master Trust assets in AOCI at December 31, 2014 and $1.2 million ($0.8 million after tax) in unrealized gains and immaterial unrealized losses in AOCI at December 31, 2013. | |||||||||||||||||||||
Various investments were sold during the past twelve months to facilitate the distribution of benefits. During the past twelve months, $0.4 million ($0.2 million after tax) of unrealized gains were reversed into earnings. Over the next twelve months, $0.4 million ($0.2 million after tax) of unrealized gains are expected to be reversed to earnings. | |||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. These inputs are then categorized as: | |||||||||||||||||||||
· | Level 1 (quoted prices in active markets for identical assets or liabilities); | ||||||||||||||||||||
· | Level 2 (observable inputs such as quoted prices for similar assets or liabilities or quoted prices in markets that are not active); | ||||||||||||||||||||
· | Level 3 (unobservable inputs). | ||||||||||||||||||||
Valuations of assets and liabilities reflect the value of the instrument including the values associated with counterparty risk. We include our own credit risk and our counterparty’s credit risk in our calculation of fair value using global average default rates based on an annual study conducted by a large rating agency. | |||||||||||||||||||||
We did not have any transfers of the fair values of our financial instruments between Level 1 and Level 2 of the fair value hierarchy during the twelve months ended December 31, 2014 and 2013. | |||||||||||||||||||||
The fair value of assets and liabilities at December 31, 2014 and 2013 measured on a recurring basis and the respective category within the fair value hierarchy for DP&L was determined as follows: | |||||||||||||||||||||
Assets and Liabilities at Fair Value | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
$ in millions | Fair Value at December 31, 2014 (a) | Based on | Other | Unobservable inputs | |||||||||||||||||
Quoted Prices | observable | ||||||||||||||||||||
in | inputs | ||||||||||||||||||||
Active Markets | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Master trust assets | |||||||||||||||||||||
Money market funds | $ | 0.1 | $ | 0.1 | $ | - | $ | - | |||||||||||||
Equity securities | 3.7 | 3.7 | - | - | |||||||||||||||||
Debt securities | 4.7 | 4.7 | - | - | |||||||||||||||||
Hedge Funds | 0.8 | - | 0.8 | - | |||||||||||||||||
Real Estate | 0.4 | 0.4 | - | - | |||||||||||||||||
Total Master trust assets | 9.7 | 8.9 | 0.8 | - | |||||||||||||||||
Derivative assets | |||||||||||||||||||||
Forward power contracts | 15.1 | - | 13.9 | 1.2 | |||||||||||||||||
Total derivative assets | 15.1 | - | 13.9 | 1.2 | |||||||||||||||||
Total assets | $ | 24.8 | $ | 8.9 | $ | 14.7 | $ | 1.2 | |||||||||||||
Liabilities | |||||||||||||||||||||
FTRs | $ | 0.6 | $ | - | $ | - | $ | 0.6 | |||||||||||||
Heating oil futures | 0.4 | 0.4 | - | - | |||||||||||||||||
Natural gas futures | 0.1 | 0.1 | - | - | |||||||||||||||||
Forward power contracts | 11.2 | - | 11.2 | - | |||||||||||||||||
Total derivative liabilities | 12.3 | 0.5 | 11.2 | 0.6 | |||||||||||||||||
Long-term debt | 882.5 | - | 864.3 | 18.2 | |||||||||||||||||
Total liabilities | $ | 894.8 | $ | 0.5 | $ | 875.5 | $ | 18.8 | |||||||||||||
(a)Includes credit valuation adjustment. | |||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||
$ in millions | Fair Value at December 31, 2013 (a) | Based on | Other | Unobservable inputs | |||||||||||||||||
Quoted Prices | observable | ||||||||||||||||||||
in | inputs | ||||||||||||||||||||
Active Markets | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Master trust assets | |||||||||||||||||||||
Money market funds | $ | 0.3 | $ | 0.3 | $ | - | $ | - | |||||||||||||
Equity securities | 4.4 | 4.4 | - | - | |||||||||||||||||
Debt securities | 5.5 | 5.5 | - | - | |||||||||||||||||
Hedge Funds | 0.9 | - | 0.9 | - | |||||||||||||||||
Real Estate | 0.4 | 0.4 | - | - | |||||||||||||||||
Total Master trust assets | 11.5 | 10.6 | 0.9 | - | |||||||||||||||||
Derivative assets | |||||||||||||||||||||
Heating oil futures | 0.2 | 0.2 | - | - | |||||||||||||||||
FTRs | 0.2 | - | - | 0.2 | |||||||||||||||||
Forward power contracts | 13.4 | - | 13.4 | - | |||||||||||||||||
Total derivative assets | 13.8 | 0.2 | 13.4 | 0.2 | |||||||||||||||||
Total assets | $ | 25.3 | $ | 10.8 | $ | 14.3 | $ | 0.2 | |||||||||||||
Liabilities | |||||||||||||||||||||
Forward power contracts | $ | 10.6 | $ | - | $ | 10.6 | $ | - | |||||||||||||
Total derivative liabilities | 10.6 | - | 10.6 | - | |||||||||||||||||
Long-term debt | 859.6 | - | 841.1 | 18.5 | |||||||||||||||||
Total liabilities | $ | 870.2 | $ | - | $ | 851.7 | $ | 18.5 | |||||||||||||
(a)Includes credit valuation adjustment. | |||||||||||||||||||||
Our financial instruments are valued using the market approach in the following categories: | |||||||||||||||||||||
· | Level 1 inputs are used for derivative contracts such as heating oil futures and for money market accounts that are considered cash equivalents. The fair value is determined by reference to quoted market prices and other relevant information generated by market transactions. | ||||||||||||||||||||
· | Level 2 inputs are used to value derivatives such as forward power contracts and forward NYMEX-quality coal contracts (which are traded on the OTC market but which are valued using prices on the NYMEX for similar contracts on the OTC market). Other Level 2 assets include: open-ended mutual funds that are in the Master Trust, which are valued using the end of day NAV per unit; and interest rate hedges, which use observable inputs to populate a pricing model. | ||||||||||||||||||||
· | Level 3 inputs such as financial transmission rights are considered a Level 3 input because the monthly auctions are considered inactive. Our Level 3 inputs are immaterial to our derivative balances as a whole and as such no further disclosures are presented. | ||||||||||||||||||||
Our debt is fair valued for disclosure purposes only and most of the fair values are determined using quoted market prices in inactive markets. These fair value inputs are considered Level 2 in the fair value hierarchy. The WPAFB note is not publicly traded. Fair value is assumed to equal carrying value. These fair value inputs are considered Level 3 in the fair value hierarchy as there are no observable inputs. Additional Level 3 disclosures were not presented since debt is not recorded at fair value. | |||||||||||||||||||||
Approximately 97% of the inputs to the fair value of our derivative instruments are from quoted market prices for DP&L. | |||||||||||||||||||||
Non-recurring Fair Value Measurements | |||||||||||||||||||||
We use the cost approach to determine the fair value of our AROs which are estimated by discounting expected cash outflows to their present value at the initial recording of the liability. Cash outflows are based on the approximate future disposal cost as determined by market information, historical information or other management estimates. These inputs to the fair value of the AROs would be considered Level 3 inputs under the fair value hierarchy. In 2014, AROs for asbestos, landfills, and river structures decreased by $1.5 million ($1.0 million after tax) primarily due to the sale of a generation plant. The ARO for ash ponds was increased by $2.4 million ($1.6 million after tax) due to new rules issued by the USEPA in December 2014 that will be effective in June 2015. The December 2014 increase of the AROs for ash ponds was limited to the ponds located at plants which are no longer in operation. Additional ash pond AROs will be recorded in the first quarter of 2015 for the ponds located at plants which remain in operation. There were no additions to our AROs during the year ended December 31, 2013. | |||||||||||||||||||||
When evaluating impairment of goodwill and long-lived assets, we measure fair value using the applicable fair value measurement guidance. Impairment expense is measured by comparing the fair value at the evaluation date to the carrying amount. The following table summarizes major categories of assets and liabilities measured at fair value on a nonrecurring basis during the period and their level within the fair value hierarchy: | |||||||||||||||||||||
$ in millions | Year ended December 31, 2013 | ||||||||||||||||||||
Carrying | Fair Value | Gross | |||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Loss | |||||||||||||||||
Assets | |||||||||||||||||||||
Long-lived assets held and used (a) | |||||||||||||||||||||
Conesville | $ | 30.0 | $ | - | $ | - | $ | 20.0 | $ | 10.0 | |||||||||||
East Bend | $ | 76.0 | $ | - | $ | - | $ | - | $ | 76.0 | |||||||||||
(a)See Note 13 for further information. | |||||||||||||||||||||
The following table summarizes the significant unobservable inputs used in the Level 3 measurement of long-lived assets during the year ended December 31, 2013: | |||||||||||||||||||||
$ in millions | Fair Value | Valuation Technique | Unobservable input | Range (Weighted Average) | |||||||||||||||||
Long-lived assets held and used: | |||||||||||||||||||||
DP&L (Conesville) | $ | - | Discounted cash flows | Annual revenue growth | -31% to 18% (0) | ||||||||||||||||
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities | |||||||||||||||||||
Note 10 – Derivative Instruments and Hedging Activities | |||||||||||||||||||
In the normal course of business, DPL enters into various financial instruments, including derivative financial instruments. We use derivatives principally to manage the risk of changes in market prices for commodities and interest rate risk associated with our long-term debt. The derivatives that we use to economically hedge these risks are governed by our risk management policies for forward and futures contracts. Our net positions are continually assessed within our structured hedging programs to determine whether new or offsetting transactions are required. The objective of the hedging program is to mitigate financial risks while ensuring that we have adequate resources to meet our requirements. We monitor and value derivative positions monthly as part of our risk management processes. We use published sources for pricing, when possible, to mark positions to market. All of our derivative instruments are used for risk management purposes and are designated as cash flow hedges or not designated as hedges for accounting purposes, which we refer to as mark to market. | |||||||||||||||||||
At December 31, 2014, DPL had the following outstanding derivative instruments: | |||||||||||||||||||
Commodity | Accounting Treatment | Unit | Purchases | Sales | Net Purchases/ (Sales) | ||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||
FTRs | Mark to Market | MWh | 10.5 | - | 10.5 | ||||||||||||||
Heating Oil Futures | Mark to Market | Gallons | 378.0 | - | 378.0 | ||||||||||||||
Natural Gas Futures | Mark to Market | Dths | 200.0 | - | 200.0 | ||||||||||||||
Forward Power Contracts | Cash Flow Hedge | MWh | 175.0 | -2,991.00 | -2,816.00 | ||||||||||||||
Forward Power Contracts | Mark to Market | MWh | 1,725.2 | -2,707.80 | -982.6 | ||||||||||||||
At December 31, 2013, DPL had the following outstanding derivative instruments: | |||||||||||||||||||
Commodity | Accounting Treatment | Unit | Purchases | Sales | Net Purchases/ (Sales) | ||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||
FTRs | Mark to Market | MWh | 7.1 | - | 7.1 | ||||||||||||||
Heating Oil Futures | Mark to Market | Gallons | 1,428.0 | - | 1,428.0 | ||||||||||||||
Forward Power Contracts | Cash Flow Hedge | MWh | 140.4 | -4,705.70 | -4,565.30 | ||||||||||||||
Forward Power Contracts | Mark to Market | MWh | 3,177.8 | -2,883.10 | 294.7 | ||||||||||||||
Cash Flow Hedges | |||||||||||||||||||
As part of our risk management processes, we identify the relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. The fair values of cash flow hedges determined by current public market prices will continue to fluctuate with changes in market prices up to contract expiration. The effective portion of the hedging transaction is recognized in AOCI and transferred to earnings using specific identification of each contract when the forecasted hedged transaction takes place or when the forecasted hedged transaction is probable of not occurring. The ineffective portion of the cash flow hedge is recognized in earnings in the current period. All risk components were taken into account to determine the hedge effectiveness of the cash flow hedges. | |||||||||||||||||||
We enter into forward power contracts to manage commodity price risk exposure related to our generation of electricity and our sale of retail power to third parties through our subsidiary DPLER. We do not hedge all commodity price risk. We reclassify gains and losses on forward power contracts from AOCI into earnings in those periods in which the contracts settle. | |||||||||||||||||||
We also entered into interest rate derivative contracts to manage interest rate exposure related to anticipated borrowings of fixed-rate debt. These interest rate derivative contracts were settled in the third quarter of 2013. We do not hedge all interest rate exposure. We reclassify gains and losses on interest rate derivative hedges out of AOCI and into earnings in those periods in which hedged interest payments occur. | |||||||||||||||||||
The following table provides information for DPL concerning gains or losses recognized in AOCI for the cash flow hedges: | |||||||||||||||||||
Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||
$ in millions (net of tax) | Power | Interest Rate | Power | Interest Rate | Power | Interest Rate | |||||||||||||
Hedges | Hedges | Hedges | |||||||||||||||||
Beginning accumulated derivative gain / (loss) in AOCI | $ | 1.4 | $ | 19.2 | $ | -3 | $ | 0.5 | $ | 0.3 | $ | -0.8 | |||||||
Net gains / (losses) associated with current period hedging transactions | -19 | - | 1.0 | 18.7 | -2.6 | 1.1 | |||||||||||||
Net gains reclassified to earnings: | |||||||||||||||||||
Interest Expense | - | -0.9 | - | - | - | 0.2 | |||||||||||||
Revenues | 18.3 | - | 2.1 | - | -0.7 | - | |||||||||||||
Purchased Power | -0.5 | - | 1.3 | - | - | - | |||||||||||||
Ending accumulated derivative gain / (loss) in AOCI | $ | 0.2 | $ | 18.3 | $ | 1.4 | $ | 19.2 | $ | -3 | $ | 0.5 | |||||||
Net gains / (losses) associated with the ineffective portion of the hedging transaction | |||||||||||||||||||
Interest Expense | $ | - | $ | - | $ | - | $ | 0.8 | $ | - | $ | 0.2 | |||||||
Portion expected to be reclassified to earnings in the next twelve months (a) | $ | 3.5 | $ | -0.9 | |||||||||||||||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 24 | 0 | |||||||||||||||||
(a)The actual amounts that we reclassify from AOCI to earnings related to power can differ from the estimate above due to market price changes. | |||||||||||||||||||
Mark to Market Accounting | |||||||||||||||||||
Certain derivative contracts are entered into on a regular basis as part of our risk management program but do not qualify for hedge accounting or the normal purchases and sales exceptions under FASC 815. Accordingly, such contracts are recorded at fair value with changes in the fair value charged or credited to the consolidated statements of results of operations in the period in which the change occurred. This is commonly referred to as “MTM accounting.” Contracts we enter into as part of our risk management program may be settled financially, by physical delivery or net settled with the counterparty. We mark to market FTRs, heating oil futures and certain forward power contracts. | |||||||||||||||||||
Certain qualifying derivative instruments have been designated as normal purchases or normal sales contracts, as provided under GAAP. Derivative contracts that have been designated as normal purchases or normal sales under GAAP are not subject to MTM accounting treatment and are recognized in the consolidated statements of results of operations on an accrual basis. | |||||||||||||||||||
Regulatory Assets and Liabilities | |||||||||||||||||||
In accordance with regulatory accounting under GAAP, a cost that is probable of recovery in future rates should be deferred as a regulatory asset and a gain that is probable of being returned to customers should be deferred as a regulatory liability. Portions of the derivative contracts that are marked to market each reporting period and are related to the retail portion of DP&L’s load requirements are included as part of the fuel and purchased power recovery rider approved by the PUCO which began January 1, 2010. Therefore, the Ohio retail customers’ portion of the heating oil futures are deferred as a regulatory asset or liability until the contracts settle. If these unrealized gains and losses are no longer deemed to be probable of recovery through our rates, they will be reclassified into earnings in the period such determination is made. | |||||||||||||||||||
The following tables show the amount and classification within the consolidated statements of results of operations or balance sheets of the gains and losses on DPL’s derivatives not designated as hedging instruments for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||
$ in millions | Heating Oil | FTRs | Power | Natural Gas | Total | ||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Change in unrealized loss | $ | -0.6 | $ | -0.8 | $ | -1.5 | $ | -0.1 | -3 | ||||||||||
Realized gain / (loss) | -0.1 | 0.7 | -3.6 | -0.1 | -3.1 | ||||||||||||||
Total | $ | -0.7 | $ | -0.1 | $ | -5.1 | $ | -0.2 | -6.1 | ||||||||||
Recorded on Balance Sheet: | |||||||||||||||||||
Regulatory asset | $ | -0.1 | $ | - | $ | - | $ | - | $ | -0.1 | |||||||||
Recorded in Income Statement: gain / (loss) | |||||||||||||||||||
Purchased Power | - | -0.1 | -5.1 | -0.2 | -5.4 | ||||||||||||||
Fuel | -0.6 | - | - | - | -0.6 | ||||||||||||||
Total | $ | -0.7 | $ | -0.1 | $ | -5.1 | $ | -0.2 | -6.1 | ||||||||||
Year ended December 31, 2013 | |||||||||||||||||||
$ in millions | Heating Oil | FTRs | Power | Total | |||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Change in unrealized gain | $ | - | $ | 0.3 | $ | 0.6 | $ | 0.9 | |||||||||||
Realized gain | 0.1 | 1.2 | 1.1 | 2.4 | |||||||||||||||
Total | $ | 0.1 | $ | 1.5 | $ | 1.7 | $ | 3.3 | |||||||||||
Recorded in Income Statement: gain / (loss) | |||||||||||||||||||
Revenue | $ | - | $ | - | $ | - | $ | - | |||||||||||
Purchased Power | - | 1.5 | 1.7 | 3.2 | |||||||||||||||
Fuel | 0.1 | - | - | 0.1 | |||||||||||||||
O&M | - | - | - | - | |||||||||||||||
Total | $ | 0.1 | $ | 1.5 | $ | 1.7 | $ | 3.3 | |||||||||||
Year ended December 31, 2012 | |||||||||||||||||||
$ in millions | NYMEX | Heating Oil | FTRs | Power | Total | ||||||||||||||
Coal | |||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Change in unrealized gain / (loss) | $ | 14.5 | $ | -1.6 | $ | -0.2 | $ | 4.3 | $ | 17.0 | |||||||||
Realized gain / (loss) | -29.5 | 1.9 | 0.5 | -5 | -32.1 | ||||||||||||||
Total | $ | -15 | $ | 0.3 | $ | 0.3 | $ | -0.7 | $ | -15.1 | |||||||||
Recorded on Balance Sheet: | |||||||||||||||||||
Partners' share of gain | $ | 4.2 | $ | - | $ | - | $ | - | $ | 4.2 | |||||||||
Regulatory (asset) / liability | 1.0 | -0.6 | - | - | 0.4 | ||||||||||||||
Recorded in Income Statement: gain / (loss) | |||||||||||||||||||
Revenue | - | - | - | -5.1 | -5.1 | ||||||||||||||
Purchased Power | - | - | 0.3 | 4.4 | 4.7 | ||||||||||||||
Fuel | -20.2 | 0.7 | - | - | -19.5 | ||||||||||||||
O&M | - | 0.2 | - | - | 0.2 | ||||||||||||||
Total | $ | -15 | $ | 0.3 | $ | 0.3 | $ | -0.7 | $ | -15.1 | |||||||||
The following tables show the fair value and balance sheet classification of DPL’s derivative instruments at December 31, 2014 and 2013. | |||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||
31-Dec-14 | |||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Consolidated Balance Sheets (a) | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | ||||||||||||||
Assets | |||||||||||||||||||
Short-term derivative positions (presented in Other current assets) | |||||||||||||||||||
Forward power contracts | Cash Flow | $ | 5.6 | $ | -2 | $ | - | $ | 3.6 | ||||||||||
Forward power contracts | MTM | 5.5 | -3.4 | - | 2.1 | ||||||||||||||
Long-term derivative positions (presented in Other deferred assets) | |||||||||||||||||||
Forward power contracts | Cash Flow | 0.3 | -0.3 | - | - | ||||||||||||||
Forward power contracts | MTM | 3.5 | -0.9 | - | 2.6 | ||||||||||||||
Total assets | $ | 14.9 | $ | -6.6 | $ | - | $ | 8.3 | |||||||||||
Liabilities | |||||||||||||||||||
Short-term derivative positions (presented in Other current liabilities) | |||||||||||||||||||
Forward power contracts | Cash Flow | $ | 2.1 | $ | -2 | $ | - | $ | 0.1 | ||||||||||
Forward power contracts | MTM | 7.5 | -3.4 | -4.1 | - | ||||||||||||||
FTRs | MTM | 0.6 | - | - | 0.6 | ||||||||||||||
Heating oil futures | MTM | 0.4 | - | -0.4 | - | ||||||||||||||
Natural gas | MTM | 0.1 | - | -0.1 | - | ||||||||||||||
Long-term derivative positions (presented in Other deferred liabilities) | |||||||||||||||||||
Forward power contracts | Cash Flow | 0.6 | -0.3 | -0.3 | - | ||||||||||||||
Forward power contracts | MTM | 0.9 | -0.9 | - | - | ||||||||||||||
Total liabilities | $ | 12.2 | $ | -6.6 | $ | -4.9 | $ | 0.7 | |||||||||||
(a)Includes credit valuation adjustment. | |||||||||||||||||||
As of December 31, 2014, the above table includes Forward power contracts in a short-term asset position of $11.1 million. This table does not include a short-term asset position of $0.1 million of Forward power contracts that had been, but no longer need to be, accounted for as derivatives at fair value that are to be amortized to earnings over the remaining term of the associated forward contract. | |||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Consolidated Balance Sheets (a) | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | ||||||||||||||
Assets | |||||||||||||||||||
Short-term derivative positions (presented in Other current assets) | |||||||||||||||||||
Forward power contracts | Cash Flow | $ | 0.5 | $ | -0.2 | $ | - | $ | 0.3 | ||||||||||
Forward power contracts | MTM | 4.9 | -4.2 | - | 0.7 | ||||||||||||||
FTRs | MTM | 0.2 | - | - | 0.2 | ||||||||||||||
Heating oil futures | MTM | 0.2 | - | -0.2 | - | ||||||||||||||
Long-term derivative positions (presented in Other deferred assets) | |||||||||||||||||||
Forward power contracts | Cash Flow | 3.0 | - | -3 | - | ||||||||||||||
Forward power contracts | MTM | 5.0 | -0.3 | - | 4.7 | ||||||||||||||
Total assets | $ | 13.8 | $ | -4.7 | $ | -3.2 | $ | 5.9 | |||||||||||
Liabilities | |||||||||||||||||||
Short-term derivative positions (presented in Other current liabilities) | |||||||||||||||||||
Forward power contracts | Cash Flow | $ | 2.7 | $ | -0.2 | $ | -2.3 | $ | 0.2 | ||||||||||
Forward power contracts | MTM | 6.6 | -4.2 | -2.3 | 0.1 | ||||||||||||||
Long-term derivative positions (presented in Other deferred liabilities) | |||||||||||||||||||
Forward power contracts | MTM | 1.3 | -0.3 | -1 | - | ||||||||||||||
Total liabilities | $ | 10.6 | $ | -4.7 | $ | -5.6 | $ | 0.3 | |||||||||||
(a)Includes credit valuation adjustment. | |||||||||||||||||||
As of December 31, 2013, this table includes Forward power contracts in a short-term asset position of $5.4 million and a long-term asset position of $8.0 million. This table does not include a short-term asset position of $0.9 million or a long-term asset position of $0.1 million of Forward power contracts that had been, but no longer need to be, accounted for as derivatives at fair value that are to be amortized to earnings over the remaining term of the associated forward contract. | |||||||||||||||||||
Certain of our OTC commodity derivative contracts are under master netting agreements that contain provisions that require our debt to maintain an investment grade credit rating from credit rating agencies. Since our debt has fallen below investment grade, we are in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization of the MTM loss. Since our debt has fallen below investment grade, some of our counterparties to the derivative instruments have requested collateralization of the MTM loss. | |||||||||||||||||||
The aggregate fair value of DPL’s derivative instruments that are in a MTM loss position at December 31, 2014 is $12.2 million. This amount is offset by $4.9 million of collateral posted directly with third parties and in a broker margin account which offsets our loss positions on the forward contracts. This liability position is further offset by the asset position of counterparties with master netting agreements of $6.6 million. Since our debt is below investment grade, we could have to post collateral for the remaining $0.7 million. | |||||||||||||||||||
DP&L [Member] | |||||||||||||||||||
Derivative Instruments and Hedging Activities | |||||||||||||||||||
Note 9 – Derivative Instruments and Hedging Activities | |||||||||||||||||||
In the normal course of business, DP&L enters into various financial instruments, including derivative financial instruments. We use derivatives principally to manage the risk of changes in market prices for commodities and interest rate risk associated with our long-term debt. The derivatives that we use to economically hedge these risks are governed by our risk management policies for forward and futures contracts. Our net positions are continually assessed within our structured hedging programs to determine whether new or offsetting transactions are required. The objective of the hedging program is to mitigate financial risks while ensuring that we have adequate resources to meet our requirements. We monitor and value derivative positions monthly as part of our risk management processes. We use published sources for pricing, when possible, to mark positions to market. All of our derivative instruments are used for risk management purposes and are designated as cash flow hedges or not designated as hedges for accounting purposes, which we refer to as mark to market. | |||||||||||||||||||
At December 31, 2014, DP&L had the following outstanding derivative instruments: | |||||||||||||||||||
Commodity | Accounting Treatment | Unit | Purchases | Sales | Net Purchases/ (Sales) | ||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||
FTRs | Mark to Market | MWh | 10.5 | - | 10.5 | ||||||||||||||
Heating Oil Futures | Mark to Market | Gallons | 378.0 | - | 378.0 | ||||||||||||||
Natural Gas | Mark to Market | Dths | 200.0 | - | 200.0 | ||||||||||||||
Forward Power Contracts | Cash Flow Hedge | MWh | 175.0 | -2,991.00 | -2,816.00 | ||||||||||||||
Forward Power Contracts | Mark to Market | MWh | 1,725.2 | -2,804.00 | -1,078.80 | ||||||||||||||
At December 31, 2013, DP&L had the following outstanding derivative instruments: | |||||||||||||||||||
Commodity | Accounting Treatment | Unit | Purchases | Sales | Net Purchases/ (Sales) | ||||||||||||||
(in thousands) | (in thousands) | (in thousands) | |||||||||||||||||
FTRs | Mark to Market | MWh | 7.1 | - | 7.1 | ||||||||||||||
Heating Oil Futures | Mark to Market | Gallons | 1,428.0 | - | 1,428.0 | ||||||||||||||
Forward Power Contracts | Cash Flow Hedge | MWh | 140.4 | -4,705.70 | -4,565.30 | ||||||||||||||
Forward Power Contracts | Mark to Market | MWh | 3,172.4 | -2,888.50 | 283.9 | ||||||||||||||
Cash Flow Hedges | |||||||||||||||||||
As part of our risk management processes, we identify the relationships between hedging instruments and hedged items, as well as the risk management objective and strategy for undertaking various hedge transactions. The fair values of cash flow hedges determined by current public market prices will continue to fluctuate with changes in market prices up to contract expiration. The effective portion of the hedging transaction is recognized in AOCI and transferred to earnings using specific identification of each contract when the forecasted hedged transaction takes place or when the forecasted hedged transaction is probable of not occurring. The ineffective portion of the cash flow hedge is recognized in earnings in the current period. All risk components were taken into account to determine the hedge effectiveness of the cash flow hedges. | |||||||||||||||||||
We enter into forward power contracts to manage commodity price risk exposure related to our generation of electricity. We do not hedge all commodity price risk. We reclassify gains and losses on forward power contracts from AOCI into earnings in those periods in which the contracts settle. | |||||||||||||||||||
The following table provides information for DP&L concerning gains or losses recognized in AOCI for the cash flow hedges: | |||||||||||||||||||
Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||
$ in millions (net of tax) | Power | Interest Rate | Power | Interest Rate | Power | Interest Rate | |||||||||||||
Hedge | Hedge | Hedge | |||||||||||||||||
Beginning accumulated derivative gain / (loss) in AOCI | $ | 1.0 | $ | 5.2 | $ | -4.7 | $ | 7.3 | $ | -0.8 | $ | 9.8 | |||||||
Net gains / (losses) associated with current period hedging transactions | -18.8 | - | 1.0 | - | -3 | - | |||||||||||||
Net gains reclassified to earnings: | |||||||||||||||||||
Interest Expense | - | -2.6 | - | -2.1 | - | -2.5 | |||||||||||||
Revenues | 18.2 | - | 1.4 | - | -1.1 | - | |||||||||||||
Purchased Power | -0.2 | - | 3.3 | - | 0.2 | - | |||||||||||||
Ending accumulated derivative gain / (loss) in AOCI | $ | 0.2 | $ | 2.6 | $ | 1.0 | $ | 5.2 | $ | -4.7 | $ | 7.3 | |||||||
Net gains or losses associated with the ineffective portion of the hedging transactions were immaterial in the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||
Portion expected to be reclassified to earnings in the next twelve months (a) | $ | 3.5 | $ | -2.6 | |||||||||||||||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 24 | 0 | |||||||||||||||||
(a)The actual amounts that we reclassify from AOCI to earnings related to power can differ from the estimate above due to market price changes. | |||||||||||||||||||
Mark to Market Accounting | |||||||||||||||||||
Certain derivative contracts are entered into on a regular basis as part of our risk management program but do not qualify for hedge accounting or the normal purchases and sales exceptions under FASC 815. Accordingly, such contracts are recorded at fair value with changes in the fair value charged or credited to the statements of results of operations in the period in which the change occurred. This is commonly referred to as “MTM accounting.” Contracts we enter into as part of our risk management program may be settled financially, by physical delivery or net settled with the counterparty. We mark to market FTRs, heating oil futures, forward NYMEX-quality coal contracts and certain forward power contracts. | |||||||||||||||||||
Certain qualifying derivative instruments have been designated as normal purchases or normal sales contracts, as provided under GAAP. Derivative contracts that have been designated as normal purchases or normal sales under GAAP are not subject to MTM accounting treatment and are recognized in the statements of results of operations on an accrual basis. | |||||||||||||||||||
Regulatory Assets and Liabilities | |||||||||||||||||||
In accordance with regulatory accounting under GAAP, a cost that is probable of recovery in future rates should be deferred as a regulatory asset and a gain that is probable of being returned to customers should be deferred as a regulatory liability. Portions of the derivative contracts that are marked to market each reporting period and are related to the retail portion of DP&L’s load requirements are included as part of the fuel and purchased power recovery rider approved by the PUCO which began January 1, 2010. Therefore, the Ohio retail customers’ portion of the heating oil futures are deferred as a regulatory asset or liability until the contracts settle. If these unrealized gains and losses are no longer deemed to be probable of recovery through our rates, they will be reclassified into earnings in the period such determination is made. | |||||||||||||||||||
The following tables show the amount and classification within the statements of results of operations or balance sheets of the gains and losses on DP&L’s derivatives not designated as hedging instruments for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||
$ in millions | Heating Oil | FTRs | Power | Natural Gas | Total | ||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Change in unrealized loss | $ | -0.6 | $ | -0.8 | $ | -1.5 | $ | -0.1 | $ | -3 | |||||||||
Realized gain / (loss) | -0.1 | 0.7 | -3 | -0.1 | -2.5 | ||||||||||||||
Total | $ | -0.7 | $ | -0.1 | $ | -4.5 | $ | -0.2 | $ | -5.5 | |||||||||
Recorded on Balance Sheet: | |||||||||||||||||||
Regulatory asset | $ | -0.1 | $ | - | $ | - | $ | - | $ | -0.1 | |||||||||
Recorded in Income Statement: gain / (loss) | |||||||||||||||||||
Revenue | - | - | 0.7 | - | 0.7 | ||||||||||||||
Purchased Power | - | -0.1 | -5.2 | -0.2 | -5.5 | ||||||||||||||
Fuel | -0.6 | - | - | - | -0.6 | ||||||||||||||
Total | $ | -0.7 | $ | -0.1 | $ | -4.5 | $ | -0.2 | $ | -5.5 | |||||||||
Year ended December 31, 2013 | |||||||||||||||||||
$ in millions | Heating Oil | FTRs | Power | Total | |||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Change in unrealized gain / (loss) | $ | - | $ | 0.3 | $ | -1.2 | $ | -0.9 | |||||||||||
Realized gain | 0.1 | 1.2 | 1.6 | 2.9 | |||||||||||||||
Total | $ | 0.1 | $ | 1.5 | $ | 0.4 | $ | 2.0 | |||||||||||
Recorded in Income Statement: gain / (loss) | |||||||||||||||||||
Revenue | $ | - | $ | - | $ | 0.2 | $ | 0.2 | |||||||||||
Purchased Power | - | 1.5 | 0.2 | 1.7 | |||||||||||||||
Fuel | 0.1 | - | - | 0.1 | |||||||||||||||
Total | $ | 0.1 | $ | 1.5 | $ | 0.4 | $ | 2.0 | |||||||||||
Year ended December 31, 2012 | |||||||||||||||||||
$ in millions | NYMEX | Heating Oil | FTRs | Power | Total | ||||||||||||||
Coal | |||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Change in unrealized gain / (loss) | $ | 14.5 | $ | -1.6 | $ | -0.2 | $ | 3.0 | $ | 15.7 | |||||||||
Realized gain / (loss) | -29.5 | 1.9 | 0.5 | 4.9 | -22.2 | ||||||||||||||
Total | $ | -15 | $ | 0.3 | $ | 0.3 | $ | 7.9 | $ | -6.5 | |||||||||
Recorded on Balance Sheet: | |||||||||||||||||||
Partners' share of gain | $ | 4.2 | $ | - | $ | - | $ | - | $ | 4.2 | |||||||||
Regulatory (asset) / liability | 1.0 | -0.6 | - | - | 0.4 | ||||||||||||||
Recorded in Income Statement: gain / (loss) | |||||||||||||||||||
Revenue | - | - | - | 2.7 | 2.7 | ||||||||||||||
Purchased Power | - | - | 0.3 | 5.2 | 5.5 | ||||||||||||||
Fuel | -20.2 | 0.7 | - | - | -19.5 | ||||||||||||||
O&M | - | 0.2 | - | - | 0.2 | ||||||||||||||
Total | $ | -15 | $ | 0.3 | $ | 0.3 | $ | 7.9 | $ | -6.5 | |||||||||
The following tables show the fair value and balance sheet classification of DP&L’s derivative instruments at December 31, 2014 and 2013. | |||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||
31-Dec-14 | |||||||||||||||||||
Gross Amounts Not Offset in the Balance Sheets | |||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Balance Sheets | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | ||||||||||||||
Assets | |||||||||||||||||||
Short-term derivative positions (presented in Other current assets) | |||||||||||||||||||
Forward power contracts | Cash Flow | $ | 5.6 | $ | -2 | $ | - | $ | 3.6 | ||||||||||
Forward power contracts | MTM | 5.6 | -3.4 | - | 2.2 | ||||||||||||||
Long-term derivative positions (presented in Other deferred assets) | |||||||||||||||||||
Forward power contracts | Cash Flow | 0.3 | -0.3 | - | - | ||||||||||||||
Forward power contracts | MTM | 3.6 | -0.9 | - | 2.7 | ||||||||||||||
Total assets | $ | 15.1 | $ | -6.6 | $ | - | $ | 8.5 | |||||||||||
Liabilities | |||||||||||||||||||
Short-term derivative positions (presented in Other current liabilities) | |||||||||||||||||||
Forward power contracts | Cash Flow | $ | 2.1 | $ | -2 | $ | - | $ | 0.1 | ||||||||||
Forward power contracts | MTM | 7.5 | -3.4 | -4.1 | - | ||||||||||||||
FTRs | MTM | 0.6 | - | - | 0.6 | ||||||||||||||
Heating oil futures | MTM | 0.4 | - | -0.4 | - | ||||||||||||||
Natural gas futures | MTM | 0.1 | - | -0.1 | - | ||||||||||||||
Long-term derivative positions (presented in Other deferred liabilities) | |||||||||||||||||||
Forward power contracts | Cash Flow | 0.6 | -0.3 | -0.3 | - | ||||||||||||||
Forward power contracts | MTM | 1.0 | -0.9 | - | 0.1 | ||||||||||||||
Total liabilities | $ | 12.3 | $ | -6.6 | $ | -4.9 | $ | 0.8 | |||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||
Gross Amounts Not Offset in the Balance Sheets | |||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Balance Sheets | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | ||||||||||||||
Assets | |||||||||||||||||||
Short-term derivative positions (presented in Other current assets) | |||||||||||||||||||
Forward power contracts | Cash Flow | $ | 0.5 | $ | -0.2 | $ | - | $ | 0.3 | ||||||||||
Forward power contracts | MTM | 4.9 | -4.2 | - | 0.7 | ||||||||||||||
FTRs | MTM | 0.2 | - | - | 0.2 | ||||||||||||||
Heating oil futures | MTM | 0.2 | - | -0.2 | - | ||||||||||||||
Long-term derivative positions (presented in Other deferred assets) | |||||||||||||||||||
Forward power contracts | Cash Flow | 3.0 | - | -3 | - | ||||||||||||||
Forward power contracts | MTM | 5.0 | -0.3 | - | 4.7 | ||||||||||||||
Total assets | $ | 13.8 | $ | -4.7 | $ | -3.2 | $ | 5.9 | |||||||||||
Liabilities | |||||||||||||||||||
Short-term derivative positions (presented in Other current liabilities) | |||||||||||||||||||
Forward power contracts | Cash Flow | $ | 2.7 | $ | -0.2 | $ | -2.3 | $ | 0.2 | ||||||||||
Forward power contracts | MTM | 6.6 | -4.2 | -2.3 | 0.1 | ||||||||||||||
Long-term derivative positions (presented in Other deferred liabilities) | |||||||||||||||||||
Forward power contracts | MTM | 1.3 | -0.3 | -1 | - | ||||||||||||||
Total liabilities | $ | 10.6 | $ | -4.7 | $ | -5.6 | $ | 0.3 | |||||||||||
Certain of our OTC commodity derivative contracts are under master netting agreements that contain provisions that require our debt to maintain an investment grade credit rating from credit rating agencies. Since our debt has fallen below investment grade, we are in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization of the MTM loss. Since our debt has fallen below investment grade, some of our counterparties to the derivative instruments have requested collateralization of the MTM loss. | |||||||||||||||||||
The aggregate fair value of DP&L’s derivative instruments that are in a MTM loss position at December 31, 2014 is $12.3 million. This amount is offset by $4.9 million in a broker margin account and with other counterparties which offsets our loss positions on the forward contracts. This liability position is further offset by the asset position of counterparties with master netting agreements of $6.6 million. If DP&L debt were to fall below investment grade, DP&L could be required to post collateral for the remaining $0.8 million. | |||||||||||||||||||
Redeemable_Preferred_Stock
Redeemable Preferred Stock | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Redeemable Preferred Stock | ||||||||||||||||
Note 11 – Redeemable Preferred Stock | ||||||||||||||||
DP&L has $100 par value preferred stock, 4,000,000 shares authorized, of which 228,508 were outstanding as of December 31, 2014. DP&L also has $25 par value preferred stock, 4,000,000 shares authorized, none of which was outstanding as of December 31, 2014. The table below details the preferred shares outstanding at December 31, 2014: | ||||||||||||||||
December 31, 2014 and 2013 | Carrying Value (a) | |||||||||||||||
($ in millions) | ||||||||||||||||
Preferred | Redemption price | Shares | 31-Dec-14 | 31-Dec-13 | ||||||||||||
Stock | ($ per share) | Outstanding | ||||||||||||||
Rate | ||||||||||||||||
DP&L Series A | 3.75% | $ | 102.50 | 93,280 | $ | 7.4 | $ | 7.4 | ||||||||
DP&L Series B | 3.75% | $ | 103.00 | 69,398 | 5.6 | 5.6 | ||||||||||
DP&L Series C | 3.90% | $ | 101.00 | 65,830 | 5.4 | 5.4 | ||||||||||
Total | 228,508 | $ | 18.4 | $ | 18.4 | |||||||||||
(a)Carrying value is fair value at the Merger date plus cumulative accrued dividends, of which there were none at December 31, 2014. | ||||||||||||||||
The DP&L preferred stock may be redeemed at DP&L’s option as determined by its Board of Directors at the per-share redemption prices indicated above, plus cumulative accrued dividends, of which there were none as of December 31, 2014. In addition, DP&L’s Amended Articles of Incorporation contain provisions that permit preferred stockholders to elect members of the Board of Directors in the event that cumulative dividends on the preferred stock are in arrears in an aggregate amount equivalent to at least four full quarterly dividends. Since this potential redemption-triggering event is not solely within the control of DP&L, the preferred stock is presented on the Consolidated Balance Sheets as “Redeemable Preferred Stock” in a manner consistent with temporary equity. | ||||||||||||||||
As long as any DP&L preferred stock is outstanding, DP&L’s Amended Articles of Incorporation also contain provisions restricting the payment of cash dividends on any of its common stock if, after giving effect to such dividend, the aggregate of all such dividends distributed subsequent to December 31, 1946 exceeds the net income of DP&L available for dividends on its common stock subsequent to December 31, 1946, plus $1.2 million. This dividend restriction has historically not affected DP&L’s ability to pay cash dividends and, as of December 31, 2014, DP&L’s retained earnings of $381.8 million were all available for common stock dividends payable to DPL. We do not expect this restriction to have an effect on the payment of cash dividends in the future. DPL records dividends on preferred stock of DP&L within Interest expense on the Statements of Operations. | ||||||||||||||||
DP&L [Member] | ||||||||||||||||
Redeemable Preferred Stock | Note 10 – Redeemable Preferred Stock | |||||||||||||||
DP&L has $100 par value preferred stock, 4,000,000 shares authorized, of which 228,508 were outstanding as of December 31, 2014. DP&L also has $25 par value preferred stock, 4,000,000 shares authorized, none of which was outstanding as of December 31, 2014. The table below details the preferred shares outstanding at December 31, 2014 and 2013: | ||||||||||||||||
December 31, 2014 and 2013 | Par Value | |||||||||||||||
($ in millions) | ||||||||||||||||
$ in millions except per share amounts | Preferred | Redemption price | Shares | 31-Dec-14 | 31-Dec-13 | |||||||||||
Stock | ($ per share) | Outstanding | ||||||||||||||
Rate | ||||||||||||||||
DP&L Series A | 3.75% | $ | 102.50 | 93,280 | $ | 9.3 | $ | 9.3 | ||||||||
DP&L Series B | 3.75% | $ | 103.00 | 69,398 | 7.0 | 7.0 | ||||||||||
DP&L Series C | 3.90% | $ | 101.00 | 65,830 | 6.6 | 6.6 | ||||||||||
Total | 228,508 | $ | 22.9 | $ | 22.9 | |||||||||||
The DP&L preferred stock may be redeemed at DP&L’s option as determined by its Board of Directors at the per-share redemption prices indicated above, plus cumulative accrued dividends, of which there were none at December 31, 2014. In addition, DP&L’s Amended Articles of Incorporation contain provisions that permit preferred stockholders to elect members of the Board of Directors in the event that cumulative dividends on the preferred stock are in arrears in an aggregate amount equivalent to at least four full quarterly dividends. Since this potential redemption-triggering event is not solely within the control of DP&L, the preferred stock is presented on the Balance Sheets as “Redeemable Preferred Stock” in a manner consistent with temporary equity. | ||||||||||||||||
As long as any DP&L preferred stock is outstanding, DP&L’s Amended Articles of Incorporation also contain provisions restricting the payment of cash dividends on any of its common stock if, after giving effect to such dividend, the aggregate of all such dividends distributed subsequent to December 31, 1946 exceeds the net income of DP&L available for dividends on its common stock subsequent to December 31, 1946, plus $1.2 million. This dividend restriction has historically not impacted DP&L’s ability to pay cash dividends and, as of December 31, 2014, DP&L’s retained earnings of $381.8 million were all available for common stock dividends payable to DPL. We do not expect this restriction to have an effect on the payment of cash dividends in the future. | ||||||||||||||||
Common_Shareholders_Equity
Common Shareholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Common Shareholders' Equity | |
Note 12 – Common Shareholders’ Equity | |
Effective on the Merger date, DPL adopted Amended Articles of Incorporation providing for 1,500 authorized common shares, of which one share is outstanding at December 31, 2014. | |
As of December 31, 2014, there was no Event of Default - DPL’s Articles generally define an “Event of Default” as either (i) a breach of a covenant or obligation under the Articles; (ii) the entering of an order of insolvency or bankruptcy by a court and that order remains in effect and unstayed for 180 days; or (iii) DPL, DP&L or one of its principal subsidiaries commences a voluntary case under bankruptcy or insolvency laws or consents to the appointment of a trustee, receiver or custodian to manage all of the assets of DPL, DP&L or one of its principal subsidiaries – but DPL’s leverage ratio was at 0.93 to 1.00 and DPL’s senior long-term debt rating from all three major credit rating agencies was below investment grade. As a result, as of December 31, 2014, DPL was prohibited under its Articles from making a distribution to its shareholder or making a loan to any of its affiliates (other than its subsidiaries). | |
DP&L [Member] | |
Common Shareholders' Equity | |
Note 11 – Common Shareholders’ Equity | |
DP&L has 250,000,000 authorized common shares, of which 41,172,173 are outstanding at December 31, 2014. 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 of at least 50 percent and not to have a negative retained earnings balance. | |
Contractual_Obligations_Commer
Contractual Obligations, Commercial Commitments and Contingencies | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Contractual Obligations, Commercial Commitments And Contingencies | ||||||||||||||||
Note13 – Contractual Obligations, Commercial Commitments and Contingencies | ||||||||||||||||
DPL – Guarantees | ||||||||||||||||
In the normal course of business, DPL enters into various agreements with its wholly-owned subsidiaries, DPLE and DPLER and its wholly-owned subsidiary, MC Squared, providing financial or performance assurance to third parties. These agreements are entered into primarily to support or enhance the creditworthiness otherwise attributed to these subsidiaries on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish these subsidiaries’ intended commercial purposes. | ||||||||||||||||
At December 31, 2014, DPL had $20.5 million of guarantees to third parties for future financial or performance assurance under such agreements, including $2.0 million of guarantees on behalf of DPLER, $18.3 million of guarantees on behalf of DPLE and $0.2 million of guarantees on behalf of MC Squared. The guarantee arrangements entered into by DPL with these third parties cover present and future obligations of DPLER, DPLE and MC Squared to such beneficiaries and are terminable at any time by DPL upon written notice to the beneficiaries. The carrying amount of obligations for commercial transactions covered by these guarantees and recorded in our Consolidated Balance Sheets was $1.6 million and $0.2 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||
To date, DPL has not incurred any losses related to the guarantees of DPLER’s, DPLE’s and MC Squared’s obligations and we believe it is remote that DPL would be required to perform or incur any losses in the future associated with any of the above guarantees of DPLER’s, DPLE’s and MC Squared’s obligations. | ||||||||||||||||
Equity Ownership Interest | ||||||||||||||||
DP&L has a 4.9% equity ownership interest in an electric generation company which is recorded using the cost method of accounting under GAAP. As of December 31, 2014, DP&L could be responsible for the repayment of 4.9%, or $74.4 million, of a $1,517.9 million debt obligation comprised of both fixed and variable rate securities with maturities between 2015 and 2040. This would only happen if this electric generation company defaulted on its debt payments. At December 31, 2014, we have no knowledge of such a default. | ||||||||||||||||
Contractual Obligations and Commercial Commitments | ||||||||||||||||
We enter into various contractual obligations and other commercial commitments that may affect the liquidity of our operations. At December 31, 2014, these include: | ||||||||||||||||
Payments due in: | ||||||||||||||||
$ in millions | Total | Less than | 3-Feb | 5-Apr | More than | |||||||||||
1 year | years | years | 5 years | |||||||||||||
DPL: | ||||||||||||||||
Coal contracts (a) | 486.2 | 255.6 | 161.2 | 69.4 | - | |||||||||||
Limestone contracts (a) | 18.3 | 6.1 | 12.2 | - | - | |||||||||||
Purchase orders and other contractual obligations | 72.4 | 39.2 | 17.3 | 15.9 | - | |||||||||||
(a)Total at DP&L operated units. | ||||||||||||||||
Coal contracts: | ||||||||||||||||
DPL, through its principal subsidiary DP&L, has entered into various long-term coal contracts to supply the coal requirements for the generating stations it operates. As of December 31, 2014, 57% of our future committed coal obligations are with a single supplier. Some contract prices are subject to periodic adjustment and have features that limit price escalation in any given year. | ||||||||||||||||
Limestone contracts: | ||||||||||||||||
DPL, through its principal subsidiary DP&L, has entered into various limestone contracts to supply limestone used in the operation of FGD equipment at its generating facilities. | ||||||||||||||||
Purchase orders and other contractual obligations: | ||||||||||||||||
As of December 31, 2014, DPL had various other contractual obligations including non-cancelable contracts to purchase goods and services with various terms and expiration dates. | ||||||||||||||||
Contingencies | ||||||||||||||||
In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under laws and regulations. We believe the amounts provided in our Consolidated Financial Statements, as prescribed by GAAP, are adequate in light of the probable and estimable contingencies. However, there can be no assurances that the actual amounts required to satisfy alleged liabilities from various legal proceedings, claims, tax examinations, and other matters, including the matters discussed below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in our Consolidated Financial Statements. As such, costs, if any, that may be incurred in excess of those amounts provided as of December 31, 2014, cannot be reasonably determined. | ||||||||||||||||
Environmental Matters | ||||||||||||||||
DPL’s and DP&L’s facilities and operations are subject to a wide range of federal, state and local environmental regulations and laws. The environmental issues that may affect us include: | ||||||||||||||||
· | The federal CAA and state laws and regulations (including SIPs) which require compliance, obtaining permits and reporting as to air emissions, | |||||||||||||||
· | Litigation with federal and certain state governments and certain special interest groups regarding whether modifications to or maintenance of certain coal-fired generating stations require additional permitting or pollution control technology, or whether emissions from coal-fired generating stations cause or contribute to global climate changes, | |||||||||||||||
· | Rules and future rules issued by the USEPA and the Ohio EPA that require substantial reductions in SO2, particulates, mercury, acid gases, NOx, and other air emissions. DP&L has installed emission control technology and is taking other measures to comply with required and anticipated reductions, | |||||||||||||||
· | Rules and future rules issued by the USEPA and the Ohio EPA that require reporting and reductions of GHGs, | |||||||||||||||
· | Rules and future rules issued by the USEPA associated with the federal Clean Water Act, which prohibits the discharge of pollutants into waters of the United States except pursuant to appropriate permits, and | |||||||||||||||
· | Solid and hazardous waste laws and regulations, which govern the management and disposal of certain waste. The majority of solid waste created from the combustion of coal and fossil fuels is fly ash and other coal combustion by-products. | |||||||||||||||
In addition to imposing continuing compliance obligations, these laws and regulations authorize the imposition of substantial penalties for noncompliance, including fines, injunctive relief and other sanctions. In the normal course of business, we have investigatory and remedial activities underway at our facilities to comply, or to determine compliance, with such regulations. We record liabilities for loss contingencies related to environmental matters when a loss is probable of occurring and can be reasonably estimated in accordance with the provisions of GAAP. Accordingly, we have accruals for loss contingencies of approximately $0.8 million for environmental matters. We also have a number of environmental matters for which we have not accrued loss contingencies because the risk of loss is not probable or a loss cannot be reasonably estimated, which are disclosed in the paragraphs below. We evaluate the potential liability related to environmental matters quarterly and may revise our estimates. Such revisions in the estimates of the potential liabilities could have a material adverse effect on our results of operations, financial condition or cash flows. | ||||||||||||||||
We have several pending environmental matters associated with our coal-fired generation units. Some of these matters could have material adverse impacts on the operation of the power stations. | ||||||||||||||||
Environmental Matters Related to Air Quality | ||||||||||||||||
Clean Air Act Compliance | ||||||||||||||||
In 1990, the federal government amended the CAA to further regulate air pollution. Under the CAA, the USEPA sets limits on how much of a pollutant can be in the ambient air anywhere in the United States. The CAA allows individual states to have stronger pollution controls than those set under the CAA, but states are not allowed to have weaker pollution controls than those set for the whole country. The CAA has a material effect on our operations and such effects are detailed below with respect to certain programs under the CAA. | ||||||||||||||||
Clean Air Interstate Rule/Cross-State Air Pollution Rule | ||||||||||||||||
The USEPA promulgated CAIR on March 10, 2005, which required allowance surrender for SO2 and NOx emissions from existing power stations located in 27 eastern states and the District of Columbia. To implement the required emission reductions for this rule, the states were to establish emission-allowance-based “cap-and-trade” programs. CAIR was subsequently challenged in federal court, and on July 11, 2008, the United States Court of Appeals for the D.C. Circuit issued an opinion striking down much of CAIR and remanding it to the USEPA. | ||||||||||||||||
On July 7, 2011, the USEPA proposed CSAPR to replace CAIR. CSAPR required significant reductions in SO2 and NOx emissions from covered sources, such as power stations in 28 eastern states including Ohio. On August 21, 2012, a three-judge panel of the D.C. Circuit Court vacated CSAPR, ruling that the USEPA overstepped its regulatory authority by requiring states to make reductions beyond the levels required in the CAA and failed to provide states an initial opportunity to adopt their own measures for achieving federal compliance. As a result of this ruling, the surviving provisions of CAIR continued to serve as the governing program. On June 24, 2013, the U.S. Supreme Court agreed to review the D.C. Circuit Court’s decision to vacate CSAPR, and on April 29, 2014, the U.S. Supreme Court reversed the 2012 decision by the D.C. Circuit Court, reinstating CSAPR, and remanded the case back to the D.C. Circuit Court for further proceedings consistent with the U. S. Supreme Court decision. On June 26, 2014, the U.S. Department of Justice, on behalf of the USEPA, filed a motion with the D.C. Circuit Court to lift the stay, and CSAPR was reinstated on October 23, 2014. The USEPA established new effective dates for compliance with the reduced emissions levels, beginning in 2015 with additional reductions in 2017. Oral arguments to address the remaining litigation regarding CSAPR are schedule for March 2015. At this time, it is not possible to predict with precision what impacts CSAPR may have on our consolidated financial condition, results of operations or cash flows, but we do not expect to have material capital costs to comply with CSAPR. | ||||||||||||||||
Mercury and Other Hazardous Air Pollutants | ||||||||||||||||
On May 3, 2011, the USEPA published proposed Maximum Achievable Control Technology (MACT) standards for coal- and oil-fired electric generating units. The standards include new requirements for emissions of mercury and a number of other heavy metals. The USEPA Administrator signed the final rule, now called MATS, on December 16, 2011, and the rule was published in the Federal Register on February 16, 2012. Our affected EGUs must come into compliance with the new requirements by April 16, 2015. All of our operating EGUs are expected to be able to achieve compliance through control technologies that are currently in place. | ||||||||||||||||
On January 31, 2013, the USEPA finalized a rule regulating emissions of toxic air pollutants from new and existing industrial, commercial and institutional boilers and process heaters at major and area source facilities. This regulation affects seven auxiliary boilers used for start-up purposes at DP&L’s generation facilities. The regulation contains emissions limitations, operating limitations and other requirements. DP&L expects to be in compliance with this rule and the costs are not currently expected to be material to DP&L’s operations. | ||||||||||||||||
National Ambient Air Quality Standards | ||||||||||||||||
On January 5, 2005, the USEPA published its final non-attainment designations for the National Ambient Air Quality Standard (NAAQS) for Fine Particulate Matter 2.5 (PM 2.5). These designations included counties and partial counties in which DP&L operates and/or owns generating facilities. On December 31, 2012, the USEPA re-designated Adams County, where the Stuart and Killen generating stations are located, to attainment status. On December 14, 2012, the USEPA tightened the PM 2.5 standard to 12.0 micrograms per cubic meter, and on December 18, 2014, issued a pre-publication version of the final attainment designations. No counties containing DP&L operated generating facilities were designated as non-attainment, however, several co-owned units are located in non-attainment counties. Attainment in those counties will be required by the end of 2021. We cannot predict the effect the revisions to the PM 2.5 standard will have on DP&L’s financial condition or results of operations. | ||||||||||||||||
The USEPA published the national ground level ozone standard on March 12, 2008, lowering the 8-hour level from 0.08 ppm to 0.075 ppm, which was upheld by the U.S. Circuit Court of Appeals in July 2013. No DP&L operations are currently located in non-attainment areas. On December 17, 2014, the USEPA published a proposed rule lowering the 8-hour ozone standard from 0.075 to a value between 0.065 and 0.070 ppm. The USEPA intends to finalize the rule regarding the ozone NAAQS by October 2015, with initial designations to be issued in October 2017. In addition, in December 2013, eight northeastern states petitioned the USEPA to add nine upwind states, including Ohio, to the Ozone Transport Region, a group of states required to impose enhanced restrictions on ozone emissions. If the petition is granted, our facilities could be subject to such enhanced requirements. We cannot predict the effect the revisions of the ozone standard will have on DP&L’s financial condition or results of operations. | ||||||||||||||||
Effective April 12, 2010, the USEPA implemented revisions to its primary NAAQS for nitrogen dioxide. This change may affect certain emission sources in heavy traffic areas like the I-75 corridor between Cincinnati and Dayton after 2016. Several of our facilities or co-owned facilities are within this area. DP&L cannot determine the effect of this potential change, if any, on its operations. | ||||||||||||||||
Effective August 23, 2010, the USEPA implemented its revisions to its primary NAAQS for SO2 replacing the previous 24-hour standard and annual standard with a one-hour standard. Initial non-attainment designations were made July 25, 2013, and Pierce Township in Clermont County, location of DP&L’s co-owned unit Beckjord Unit 6, was the only area with DP&L operations designated as non-attainment. Beckjord Unit 6 was retired effective October 1, 2014. Non-attainment areas will be required to meet the 2010 standard by October 2018. On April 17, 2014, the USEPA proposed a data requirements rule for air agencies to ascertain attainment characterization more extensively across the country by additional modeling and/or monitoring requirements of areas with sources that exceed specified thresholds of SO2 emissions. The rule, if finalized, could require the installation of monitors at one or more of DP&L’s coal-fired power plants and result in additional non-attainment designations that could impact our operations. DP&L is unable to determine the effect of the proposed rule on its operations. | ||||||||||||||||
On May 5, 2004, the USEPA issued its proposed regional haze rule, which addresses how states should determine the Best Available Retrofit Technology (BART) for sources covered under the regional haze rule. Final rules were published July 6, 2005, providing states with several options for determining whether sources in the state should be subject to BART. Numerous units owned and operated by us will be affected by BART. We cannot determine the extent of the impact until Ohio determines how BART will be implemented. | ||||||||||||||||
Carbon Dioxide and Other Greenhouse Gas Emissions | ||||||||||||||||
The USEPA began regulating GHG emissions from certain stationary sources in January 2011 under regulations referred to as the “Tailoring Rule.” The regulations are implemented pursuant to two CAA programs: the Title V Operating Permit program and the program requiring a permit if undergoing certain new construction or major modifications, the Prevention of Significant Deterioration, or PSD, program. Obligations relating to Title V permits include recordkeeping and monitoring requirements. Sources subject to PSD can be required to implement Best Available Control Technology, or BACT. In June 2014, the U.S. Supreme Court ruled that the USEPA had exceeded its statutory authority in issuing the Tailoring Rule under Section 165 of the CAA by regulating sources under the PSD program based solely on their GHG emissions. However, the U.S. Supreme Court also held that the USEPA could impose GHG BACT requirements for sources already required to implement PSD for certain other pollutants. Therefore, if future modifications to DP&L’s sources require PSD review for other pollutants, it may also trigger GHG BACT requirements. The USEPA has issued guidance on what BACT entails for the control of GHG and individual states are now required to determine what controls are required for facilities within their jurisdiction on a case-by-case basis. The ultimate impact of the BACT requirements applicable to us on our operations cannot be determined at this time as DP&L will not be required to implement BACT until DP&L constructs a new major source or makes a major modification of an existing major source. However, the cost of compliance could be material. | ||||||||||||||||
In January 2014, the USEPA proposed revised GHG New Source Performance Standards for new EGUs under CAA subsection 111(b), which would require new EGUs to limit the amount of CO2 emitted per megawatt-hour. The proposal anticipates that affected coal-fired units would need to rely upon partial implementation of carbon capture and storage or other expensive CO2 emission control technology to meet the standard. In addition, new natural gas-fired EGUs must meet a standard of no greater than 1,000 pounds of CO2 per megawatt hour (if the rule is finalized in its current form). The rule is expected to be finalized this summer. | ||||||||||||||||
The USEPA issued proposed rules establishing GHG performance standards for existing power plants under CAA Section 111(d) on June 2, 2014. Under the proposed rule, called the Clean Power Plan, states would be judged against state-specific carbon dioxide emissions targets beginning in 2020, with expected total U.S. power section emissions reduction of 30% from 2005 levels by 2030. For Ohio specifically, the Clean Power Plan proposes an interim goal for 2020-2029 and a proposed 2030 final goal of 1,452 pounds of CO2 per megawatt hour and 1,338 pounds of CO2 per megawatt hour, respectively, a reduction of approximately 28% from 2012 levels. The proposed rule requires states to submit SIPs to meet the standards set forth in the rule by June 30, 2016, with the possibility of one- or two-year extensions under certain circumstances. The proposed rule requires states to submit SIPs to meet the standards set forth in the rule by June 30, 2016, with the possibility of one or two-year extensions under certain circumstances. The proposed rule requires states to submit SIPs to meet the standards set forth in the rule by June 30, 2016, with the possibility of one- or two-year extensions under certain circumstances. The proposed rule was subject to a public comment process and the USEPA is expected to finalize it by the summer of 2015. Among other things, we could be required to make efficiency improvements to existing facilities. The USEPA also issued proposed carbon pollution standards for modified and reconstructed power plants on June 2, 2014, which are also expected to be finalized by the summer of 2015. Various states and certain regulated entities have filed lawsuits challenging the Clean Power Plan. However, it is too soon to determine what the rule, and the corresponding SIPs affecting our operations, will require once they are finalized, whether they will survive judicial and other challenges, and if so, whether and when the rule and the corresponding SIP would materially impact our business, operations or financial condition. | ||||||||||||||||
Approximately 99% of the energy we produce is generated by coal. DP&L’s share of CO2 emissions at generating stations we own and co-own is approximately 14 million tons annually. Further GHG legislation or regulation implemented at a future date could have a significant effect on DP&L’s operations and costs, which could adversely affect our net income, cash flows and financial condition. However, due to the uncertainty associated with such legislation or regulation, we cannot predict the final outcome or the financial effect that such legislation or regulation may have on DP&L. | ||||||||||||||||
Litigation, Notices of Violation and Other Matters Related to Air Quality | ||||||||||||||||
Litigation Involving Co-Owned Stations | ||||||||||||||||
As a result of a 2008 consent decree entered into with the Sierra Club and approved by the U.S. District Court for the Southern District of Ohio, DP&L and the other owners of the Stuart generating station are subject to certain specified emission targets related to NOx, SO2 and particulate matter. The consent decree also includes commitments for energy efficiency and renewable energy activities. An amendment to the consent decree was entered into and approved in 2010 to clarify how emissions would be computed during malfunctions. Continued compliance with the consent decree, as amended, is not expected to have a material effect on DP&L’s results of operations, financial condition or cash flows in the future. | ||||||||||||||||
Notices of Violation Involving Co-Owned Units | ||||||||||||||||
In June 2000, the USEPA issued an NOV to the DP&L-operated Stuart generating station (co-owned by DP&L, Duke Energy and AEP Generation) for alleged violations of the CAA. The NOV contained allegations consistent with NOVs and complaints that the USEPA had brought against numerous other coal-fired utilities in the Midwest. The NOV indicated the USEPA may: (1) issue an order requiring compliance with the requirements of the Ohio SIP; or (2) bring a civil action seeking injunctive relief and civil penalties of up to $27,500 per day for each violation. To date, neither action has been taken. DP&L cannot predict the outcome of this matter. | ||||||||||||||||
In December 2007, the Ohio EPA issued an NOV to the DP&L-operated Killen generating station (co-owned by DP&L and Duke Energy) for alleged violations of the CAA. The NOV alleged deficiencies in the continuous monitoring of opacity. We submitted a compliance plan to the Ohio EPA on December 19, 2007. To date, no further actions have been taken by the Ohio EPA. | ||||||||||||||||
On March 13, 2008, Duke Energy, the operator of the Zimmer generating station, received an NOV and a Finding of Violation (FOV) from the USEPA alleging violations of the CAA, the Ohio SIP and permits for the station in areas including SO2, opacity and increased heat input. A second NOV and FOV with similar allegations was issued on November 4, 2010. Also in 2010, the USEPA issued an NOV to Zimmer for excess emissions. In addition, Zimmer received an NOV from the USEPA dated December 16, 2014 alleging violations in opacity on two dates in 2014. DP&L is a co-owner of the Zimmer generating station and could be affected by the eventual resolution of these matters. Duke Energy is expected to act on behalf of itself and the co-owners with respect to these matters. DP&L is unable to predict the outcome of these matters. | ||||||||||||||||
In January 2015, DP&L received NOVs from the USEPA alleging violations in opacity at the Stuart and Killen generating stations in 2014. DP&L is beginning the process of discussions with the USEPA on these NOVs. DP&L is unable to predict the outcome of these matters. | ||||||||||||||||
Notices of Violation Involving Wholly-Owned Stations | ||||||||||||||||
On November 18, 2009, the USEPA issued an NOV to DP&L for alleged NSR violations of the CAA at the Hutchings Station relating to capital projects performed in 2001 involving Unit 3 and Unit 6. DP&L does not believe that the two projects described in the NOV were modifications subject to NSR. As a result of the cessation of operations of the six coal-fired units at the Hutchings Station, DP&L believes that the USEPA is unlikely to pursue the NSR complaint. | ||||||||||||||||
Environmental Matters Related to Water Quality, Waste Disposal and Ash Ponds | ||||||||||||||||
Clean Water Act – Regulation of Water Intake | ||||||||||||||||
On May 19, 2014, the USEPA finalized new regulations pursuant to the CWA governing existing facilities that have cooling water intake structures. The rules require an assessment of impingement and/or entrainment of organisms as a result of cooling water withdrawal. Although we do not yet know the full impact the final rules will have on our operations, the final rules may require material changes to the intake structure at Stuart Station to reduce impingement with the possibility of additional site specific requirements for reducing entrainment. We do not believe the final rules will have a material impact on operations at any of the other DP&L-operated facilities. | ||||||||||||||||
Clean Water Act – Regulation of Water Discharge | ||||||||||||||||
In December 2006, DP&L submitted a renewal application for the Stuart generating station NPDES permit that was due to expire on June 30, 2007. The Ohio EPA issued a revised draft permit that was received on November 12, 2008. In September 2010, the USEPA formally objected to the November 12, 2008 revised permit due to questions regarding the basis for the alternate thermal limitation. At DP&L’s request, a public hearing was held on March 23, 2011, where DP&L presented its position on the issue and provided written comments. In a letter to the Ohio EPA dated September 28, 2011, the USEPA reaffirmed its objection to the revised permit as previously drafted by the Ohio EPA. This reaffirmation stipulated that if the Ohio EPA did not re-draft the permit to address the USEPA’s objection, then the authority for issuing the permit would pass to the USEPA. The Ohio EPA issued another draft permit in December 2011 and a public hearing was held on February 2, 2012. | ||||||||||||||||
The draft permit required DP&L, over the 54 months following issuance of a final permit, to take undefined actions to lower the temperature of its discharged water to a level unachievable by the station under its current design or alternatively make other significant modifications to the cooling water system. DP&L submitted comments to the draft permit. In November 2012, the Ohio EPA issued another draft which included a compliance schedule for performing a study to justify an alternate thermal limitation and to which DP&L submitted comments. In December 2012, the USEPA formally withdrew their objection to the permit. On January 7, 2013, the Ohio EPA issued a final permit. On February 1, 2013, DP&L appealed various aspects of the final permit to the Environmental Review Appeals Commission. A hearing before the Commission is scheduled for March 2015. Depending on the outcome of the appeal process, the effects on DP&L’s operations could be material. | ||||||||||||||||
In September 2009, the USEPA announced that it would be revising technology-based regulations governing water discharges from steam electric generating facilities. The rulemaking included the collection of information via an industry-wide questionnaire as well as targeted water sampling efforts at selected facilities. The proposed rule was released on June 7, 2013. Under a consent decree, the USEPA is required to issue a final rule by September 2015. At present, DP&L is unable to predict the impact this rulemaking will have on its operations. | ||||||||||||||||
A final NPDES permit for Killen Station was issued on September 4, 2014. We do not expect the new permit to have a material impact on Killen’s operations. | ||||||||||||||||
In January 2014, DP&L submitted an application for the renewal of the Hutchings Station NPDES permit which expired in July 2014. A final permit was issued on September 19, 2014 with an effective date of November 1, 2014. We do not expect the new permit to have a material impact on Hutchings’ operations. | ||||||||||||||||
Regulation of Waste Disposal | ||||||||||||||||
In September 2002, DP&L and other parties received a special notice that the USEPA considers us to be a PRP for the clean-up of hazardous substances at the South Dayton Dump landfill site. In August 2005, DP&L and other parties received a general notice regarding the performance of a Remedial Investigation and Feasibility Study (RI/FS) under a Superfund Alternative Approach. In October 2005, DP&L received a special notice letter inviting it to enter into negotiations with the USEPA to conduct the RI/FS. No recent activity has occurred with respect to that notice or PRP status. On August 16, 2006, an Administrative Settlement Agreement and Order on Consent (“ASAOC”) was executed and became effective among a group of PRPs, not including DP&L, and the USEPA. On August 25, 2009, the USEPA issued an Administrative Order requiring that access to DP&L’s service center building site, which is across the street from the landfill site, be given to the USEPA and the existing PRP group to help determine the extent of the landfill site’s contamination as well as to assess whether certain chemicals used at the service center building site might have migrated through groundwater to the landfill site. DP&L granted such access and drilling of soil borings and installation of monitoring wells occurred in late 2009 and early 2010. On May 24, 2010, three members of the existing PRP group, Hobart Corporation, Kelsey-Hayes Company and NCR Corporation, filed a civil complaint in the United States District Court for the Southern District of Ohio against DP&L and numerous other defendants alleging that DP&L and the other defendants contributed to the contamination at the South Dayton Dump landfill site and seeking reimbursement of the PRP group’s costs associated with the investigation and remediation of the site. On February 10, 2011, the Court dismissed claims against DP&L that related to allegations that chemicals used by DP&L at its service center contributed to the landfill site’s contamination. The Court, however, did not dismiss claims alleging financial responsibility for remediation costs based on hazardous substances from DP&L that were allegedly directly delivered by truck to the landfill. Discovery, including depositions of past and present DP&L employees, was conducted in 2012. On February 8, 2013, the Court granted DP&L’s motion for summary judgment on statute of limitations grounds with respect to claims seeking a contribution toward the costs that are expected to be incurred by the PRP group in performing an RI/FS under the August 15, 2006 ASAOC. That summary judgment ruling was appealed on March 4, 2013, and on July 14, 2014, a three-judge panel of the U.S. Court of Appeals for the 6th Circuit affirmed the lower Court’s ruling and subsequently denied a request by the plaintiffs for rehearing. On November 14, 2014, the PRP group appealed the decision to the U.S. Supreme Court, but the writ of certiorari was denied by the Court on January 20, 2015. On January 14, 2015, the PRP group served DP&L and other defendants a request for production of documents related to any survey regarding waste management or waste disposal. Information responsive to this request was provided on February 17, 2015. In addition, on January 16, 2015, the USEPA issued a Special Notice Letter and Section 104(e) Information Request to DP&L and other defendants, requesting historical information related to waste management practices. DP&L is in the process of developing its response to the request which is due by March 20, 2015. DP&L is unable to predict the outcome of this action by the plaintiffs and USEPA. Additionally, the Court’s 2013 ruling and the Court of Appeals’ affirmation of that ruling in 2014 does not address future litigation that may arise with respect to actual remediation costs. While DP&L is unable to predict the outcome of these matters, if DP&L were required to contribute to the clean-up of the site, it could have a material adverse effect on its operations. | ||||||||||||||||
In December 2003, DP&L and other parties received a special notice that the USEPA considers us to be a PRP for the clean-up of hazardous substances at the Tremont City landfill site. Information available to DP&L does not demonstrate that it contributed hazardous substances to the site. While DP&L is unable to predict the outcome of this matter, if DP&L were required to contribute to the clean-up of the site, it could have a material adverse effect on its operations. | ||||||||||||||||
On April 7, 2010, the USEPA published an Advance Notice of Proposed Rulemaking announcing that it is reassessing existing regulations governing the use and distribution in commerce of polychlorinated biphenyls (PCBs). While this reassessment is in the early stages and the USEPA is seeking information from potentially affected parties on how it should proceed, the outcome may have a material effect on DP&L. A proposed rule is expected in mid-2015, with a final rule expected in 2016. At present, DP&L is unable to predict the impact this initiative will have on its operations. | ||||||||||||||||
Regulation of Ash Ponds | ||||||||||||||||
In March 2009, the USEPA, through a formal Information Collection Request, collected information on ash pond facilities across the country, including those at Killen and Stuart Stations. Subsequently, the USEPA collected similar information for the Hutchings Station. | ||||||||||||||||
In August 2010, the USEPA conducted an inspection of the Hutchings Station ash ponds. In June 2011, the USEPA issued a final report from the inspection including recommendations relative to the Hutchings Station ash ponds. DP&L is unable to predict whether there will be additional USEPA action relative to DP&L’s proposed plan or the effect on operations that might arise under a different plan. | ||||||||||||||||
In June 2011, the USEPA conducted an inspection of the Killen Station ash ponds. In May 2012, we received a draft report on the inspection. DP&L submitted comments on the draft report in June 2012. On March 14, 2013, DP&L received the final report on the inspection of the Killen Station ash pond inspection from the USEPA which included recommended actions. DP&L has submitted a response with its actions to the USEPA. DP&L is unable to predict the outcome this inspection will have on its operations. | ||||||||||||||||
There has been increasing advocacy to regulate coal combustion residuals (CCR) under the Resource Conservation Recovery Act (RCRA). On June 21, 2010, the USEPA published a proposed rule seeking comments on two options under consideration for the regulation of coal combustion byproducts including regulating the material as a hazardous waste under RCRA Subtitle C or as a solid waste under RCRA Subtitle D. The USEPA released its final rule on December 19, 2014, designating coal combustion residuals that are not beneficially reused as non-hazardous solid waste under RCRA Subtitle D. The rule becomes effective six months after publication of the rule in the Federal Register, expected in February 2015, and applies new detailed management practices to new and existing landfills and surface impoundments, including lateral expansions of such units. DP&L is currently reviewing the rule and assessing the impact on our operations. Our business, financial condition or operations could be materially and adversely affected by this regulation. | ||||||||||||||||
Notice of Violation Involving Co-Owned Units | ||||||||||||||||
On September 9, 2011, DP&L received an NOV from the USEPA with respect to its co-owned Stuart generating station based on a compliance evaluation inspection conducted by the USEPA and Ohio EPA in 2009. The notice alleged non-compliance by DP&L with certain provisions of the RCRA, the CWA NPDES permit program and the station’s storm water pollution prevention plan. The notice requested that DP&L respond with the actions it has subsequently taken or plans to take to remedy the USEPA’s findings and ensure that further violations will not occur. Based on its review of the findings, although there can be no assurance, we believe that the notice will not result in any material effect on DP&L’s results of operations, financial condition or cash flows. | ||||||||||||||||
Legal and Other Matters | ||||||||||||||||
In February 2007, DP&L filed a lawsuit in the United States District Court for Southern District of Ohio against Appalachian Fuels, LLC (“Appalachian”) seeking damages incurred due to Appalachian’s failure to supply approximately 1.5 million tons of coal to two commonly-owned stations under a coal supply agreement, of which approximately 570 thousand tons was DP&L’s share. DP&L obtained replacement coal to meet its needs. Appalachian has denied liability, and is currently in federal bankruptcy proceedings in which DP&L is participating as an unsecured creditor. DP&L is unable to determine the ultimate resolution of this matter. DP&L has not recorded any assets relating to possible recovery of costs in this lawsuit. | ||||||||||||||||
In connection with DP&L and other utilities joining PJM, in 2006, the FERC ordered utilities to eliminate certain charges to implement transitional payments, known as SECA, effective December 1, 2004 through March 31, 2006, subject to refund. Through this proceeding, DP&L was obligated to pay SECA charges to other utilities, but received a net benefit from these transitional payments. A hearing was held and an initial decision was issued in August 2006. A final FERC order on this issue was issued on May 21, 2010 that substantially supports DP&L’s and other utilities’ position that SECA obligations should be paid by parties that used the transmission system during the timeframe stated above. Prior to this final order being issued, DP&L entered into a significant number of bilateral settlement agreements with certain parties to resolve the matter, which by design will be unaffected by the final decision. On July 5, 2012, a Stipulation was executed and filed with the FERC that resolved SECA claims against BP Energy Company (“BP”) and DP&L, AEP (and its subsidiaries) and Exelon Corporation (and its subsidiaries). On October 1, 2012, DP&L received the $14.6 million (including interest income of $1.8 million) from BP and recorded the settlement in the third quarter; at December 31, 2012, there is no remaining balance in other deferred credits related to SECA. | ||||||||||||||||
DP&L [Member] | ||||||||||||||||
Contractual Obligations, Commercial Commitments And Contingencies | ||||||||||||||||
Note 12 – Contractual Obligations, Commercial Commitments and Contingencies | ||||||||||||||||
DP&L – Equity Ownership Interest | ||||||||||||||||
DP&L has a 4.9% equity ownership interest in an electric generation company which is recorded using the cost method of accounting under GAAP. As of December 31, 2014, DP&L could be responsible for the repayment of 4.9%, or $74.4 million, of a $1,517.9 million debt obligation comprised of both fixed and variable rate securities with maturities between 2015 and 2040. This would only happen if this electric generation company defaulted on its debt payments. As of December 31, 2014, we have no knowledge of such a default. | ||||||||||||||||
Contractual Obligations and Commercial Commitments | ||||||||||||||||
We enter into various contractual obligations and other commercial commitments that may affect the liquidity of our operations. At December 31, 2014, these include: | ||||||||||||||||
Payments due in: | ||||||||||||||||
$ in millions | Total | Less than | 3-Feb | 5-Apr | More than | |||||||||||
1 year | years | years | 5 years | |||||||||||||
DP&L: | ||||||||||||||||
Coal contracts (a) | 486.2 | 255.6 | 161.2 | 69.4 | - | |||||||||||
Limestone contracts (a) | 18.3 | 6.1 | 12.2 | - | - | |||||||||||
Purchase orders and other contractual obligations | 72.4 | 39.2 | 17.3 | 15.9 | - | |||||||||||
(a)Total at DP&L operated units. | ||||||||||||||||
Coal contracts: | ||||||||||||||||
DP&L has entered into various long-term coal contracts to supply the coal requirements for the generating stations it operates. As of December 31, 2014, 57% of our future committed coal obligations are with a single supplier. Some contract prices are subject to periodic adjustment and have features that limit price escalation in any given year. | ||||||||||||||||
Limestone contracts: | ||||||||||||||||
DP&L has entered into various limestone contracts to supply limestone used in the operation of FGD equipment at its generating facilities. | ||||||||||||||||
Purchase orders and other contractual obligations: | ||||||||||||||||
As of December 31, 2014, DP&L had various other contractual obligations including non-cancelable contracts to purchase goods and services with various terms and expiration dates. | ||||||||||||||||
Contingencies | ||||||||||||||||
In the normal course of business, we are subject to various lawsuits, actions, proceedings, claims and other matters asserted under laws and regulations. We believe the amounts provided in our Financial Statements, as prescribed by GAAP, are adequate in light of the probable and estimable contingencies. However, there can be no assurances that the actual amounts required to satisfy alleged liabilities from various legal proceedings, claims, tax examinations, and other matters, including the matters discussed below, and to comply with applicable laws and regulations, will not exceed the amounts reflected in our Financial Statements. As such, costs, if any, that may be incurred in excess of those amounts provided as of December 31, 2014, cannot be reasonably determined. | ||||||||||||||||
Environmental Matters | ||||||||||||||||
DPL’s and DP&L’s facilities and operations are subject to a wide range of federal, state and local environmental regulations and laws. The environmental issues that may affect us include: | ||||||||||||||||
· | The federal CAA and state laws and regulations (including SIPs) which require compliance, obtaining permits and reporting as to air emissions, | |||||||||||||||
· | Litigation with federal and certain state governments and certain special interest groups regarding whether modifications to or maintenance of certain coal-fired generating stations require additional permitting or pollution control technology, or whether emissions from coal-fired generating stations cause or contribute to global climate changes, | |||||||||||||||
· | Rules and future rules issued by the USEPA and the Ohio EPA that require substantial reductions in SO2, particulates, mercury, acid gases, NOx, and other air emissions. DP&L has installed emission control technology and is taking other measures to comply with required and anticipated reductions, | |||||||||||||||
· | Rules and future rules issued by the USEPA and the Ohio EPA that require reporting and reductions of GHGs, | |||||||||||||||
· | Rules and future rules issued by the USEPA associated with the federal Clean Water Act, which prohibits the discharge of pollutants into waters of the United States except pursuant to appropriate permits, and | |||||||||||||||
· | Solid and hazardous waste laws and regulations, which govern the management and disposal of certain waste. The majority of solid waste created from the combustion of coal and fossil fuels is fly ash and other coal combustion by-products. | |||||||||||||||
In addition to imposing continuing compliance obligations, these laws and regulations authorize the imposition of substantial penalties for noncompliance, including fines, injunctive relief and other sanctions. In the normal course of business, we have investigatory and remedial activities underway at our facilities to comply, or to determine compliance, with such regulations. We record liabilities for loss contingencies related to environmental matters when a loss is probable of occurring and can be reasonably estimated in accordance with the provisions of GAAP. Accordingly, we have accruals for loss contingencies of approximately $0.8 million for environmental matters. We also have a number of environmental matters for which we have not accrued loss contingencies because the risk of loss is not probable or a loss cannot be reasonably estimated, which are disclosed in the paragraphs below. We evaluate the potential liability related to environmental matters quarterly and may revise our estimates. Such revisions in the estimates of the potential liabilities could have a material adverse effect on our results of operations, financial condition or cash flows. | ||||||||||||||||
We have several pending environmental matters associated with our coal-fired generation units. Some of these matters could have material adverse impacts on the operation of the power stations. | ||||||||||||||||
Environmental Matters Related to Air Quality | ||||||||||||||||
Clean Air Act Compliance | ||||||||||||||||
In 1990, the federal government amended the CAA to further regulate air pollution. Under the CAA, the USEPA sets limits on how much of a pollutant can be in the ambient air anywhere in the United States. The CAA allows individual states to have stronger pollution controls than those set under the CAA, but states are not allowed to have weaker pollution controls than those set for the whole country. The CAA has a material effect on our operations and such effects are detailed below with respect to certain programs under the CAA. | ||||||||||||||||
Clean Air Interstate Rule/Cross-State Air Pollution Rule | ||||||||||||||||
The USEPA promulgated CAIR on March 10, 2005, which required allowance surrender for SO2 and NOx emissions from existing power stations located in 27 eastern states and the District of Columbia. To implement the required emission reductions for this rule, the states were to establish emission-allowance-based “cap-and-trade” programs. CAIR was subsequently challenged in federal court, and on July 11, 2008, the United States Court of Appeals for the D.C. Circuit issued an opinion striking down much of CAIR and remanding it to the USEPA. | ||||||||||||||||
On July 7, 2011, the USEPA proposed CSAPR to replace CAIR. CSAPR required significant reductions in SO2 and NOx emissions from covered sources, such as power stations in 28 eastern states including Ohio. On August 21, 2012, a three-judge panel of the D.C. Circuit Court vacated CSAPR, ruling that the USEPA overstepped its regulatory authority by requiring states to make reductions beyond the levels required in the CAA and failed to provide states an initial opportunity to adopt their own measures for achieving federal compliance. As a result of this ruling, the surviving provisions of CAIR continued to serve as the governing program. On June 24, 2013, the U.S. Supreme Court agreed to review the D.C. Circuit Court’s decision to vacate CSAPR, and on April 29, 2014, the U.S. Supreme Court reversed the 2012 decision by the D.C. Circuit Court, reinstating CSAPR, and remanded the case back to the D.C. Circuit Court for further proceedings consistent with the U. S. Supreme Court decision. On June 26, 2014, the U.S. Department of Justice, on behalf of the USEPA, filed a motion with the D.C. Circuit Court to lift the stay, and CSAPR was reinstated on October 23, 2014. The USEPA established new effective dates for compliance with the reduced emissions levels, beginning in 2015 with additional reductions in 2017. Oral arguments to address the remaining litigation regarding CSAPR are schedule for March 2015. At this time, it is not possible to predict with precision what impacts CSAPR may have on our consolidated financial condition, results of operations or cash flows, but we do not expect to have material capital costs to comply with CSAPR. | ||||||||||||||||
Mercury and Other Hazardous Air Pollutants | ||||||||||||||||
On May 3, 2011, the USEPA published proposed Maximum Achievable Control Technology (MACT) standards for coal- and oil-fired electric generating units. The standards include new requirements for emissions of mercury and a number of other heavy metals. The USEPA Administrator signed the final rule, now called MATS, on December 16, 2011, and the rule was published in the Federal Register on February 16, 2012. Our affected EGUs must come into compliance with the new requirements by April 16, 2015. All of our operating EGUs are expected to be able to achieve compliance through control technologies that are currently in place. | ||||||||||||||||
On January 31, 2013, the USEPA finalized a rule regulating emissions of toxic air pollutants from new and existing industrial, commercial and institutional boilers and process heaters at major and area source facilities. This regulation affects seven auxiliary boilers used for start-up purposes at DP&L’s generation facilities. The regulation contains emissions limitations, operating limitations and other requirements. DP&L expects to be in compliance with this rule and the costs are not currently expected to be material to DP&L’s operations. | ||||||||||||||||
National Ambient Air Quality Standards | ||||||||||||||||
On January 5, 2005, the USEPA published its final non-attainment designations for the National Ambient Air Quality Standard (NAAQS) for Fine Particulate Matter 2.5 (PM 2.5). These designations included counties and partial counties in which DP&L operates and/or owns generating facilities. On December 31, 2012, the USEPA re-designated Adams County, where the Stuart and Killen generating stations are located, to attainment status. On December 14, 2012, the USEPA tightened the PM 2.5 standard to 12.0 micrograms per cubic meter, and on December 18, 2014, issued a pre-publication version of the final attainment designations. No counties containing DP&L operated generating facilities were designated as non-attainment, however, several co-owned units are located in non-attainment counties. Attainment in those counties will be required by the end of 2021. We cannot predict the effect the revisions to the PM 2.5 standard will have on DP&L’s financial condition or results of operations. | ||||||||||||||||
The USEPA published the national ground level ozone standard on March 12, 2008, lowering the 8-hour level from 0.08 ppm to 0.075 ppm, which was upheld by the U.S. Circuit Court of Appeals in July 2013. No DP&L operations are currently located in non-attainment areas. On December 17, 2014, the USEPA published a proposed rule lowering the 8-hour ozone standard from 0.075 to a value between 0.065 and 0.070 ppm. The USEPA intends to finalize the rule regarding the ozone NAAQS by October 2015, with initial designations to be issued in October 2017. In addition, in December 2013, eight northeastern states petitioned the USEPA to add nine upwind states, including Ohio, to the Ozone Transport Region, a group of states required to impose enhanced restrictions on ozone emissions. If the petition is granted, our facilities could be subject to such enhanced requirements. We cannot predict the effect the revisions of the ozone standard will have on DP&L’s financial condition or results of operations. | ||||||||||||||||
Effective April 12, 2010, the USEPA implemented revisions to its primary NAAQS for nitrogen dioxide. This change may affect certain emission sources in heavy traffic areas like the I-75 corridor between Cincinnati and Dayton after 2016. Several of our facilities or co-owned facilities are within this area. DP&L cannot determine the effect of this potential change, if any, on its operations. | ||||||||||||||||
Effective August 23, 2010, the USEPA implemented its revisions to its primary NAAQS for SO2 replacing the previous 24-hour standard and annual standard with a one-hour standard. Initial non-attainment designations were made July 25, 2013, and Pierce Township in Clermont County, location of DP&L’s co-owned unit Beckjord Unit 6, was the only area with DP&L operations designated as non-attainment. Beckjord Unit 6 was retired effective October 1, 2014. Non-attainment areas will be required to meet the 2010 standard by October 2018. On April 17, 2014, the USEPA proposed a data requirements rule for air agencies to ascertain attainment characterization more extensively across the country by additional modeling and/or monitoring requirements of areas with sources that exceed specified thresholds of SO2 emissions. The rule, if finalized, could require the installation of monitors at one or more of DP&L’s coal-fired power plants and result in additional non-attainment designations that could impact our operations. DP&L is unable to determine the effect of the proposed rule on its operations. | ||||||||||||||||
On May 5, 2004, the USEPA issued its proposed regional haze rule, which addresses how states should determine the Best Available Retrofit Technology (BART) for sources covered under the regional haze rule. Final rules were published July 6, 2005, providing states with several options for determining whether sources in the state should be subject to BART. Numerous units owned and operated by us will be affected by BART. We cannot determine the extent of the impact until Ohio determines how BART will be implemented. | ||||||||||||||||
Carbon Dioxide and Other Greenhouse Gas Emissions | ||||||||||||||||
The USEPA began regulating GHG emissions from certain stationary sources in January 2011 under regulations referred to as the “Tailoring Rule.” The regulations are implemented pursuant to two CAA programs: the Title V Operating Permit program and the program requiring a permit if undergoing certain new construction or major modifications, the Prevention of Significant Deterioration, or PSD, program. Obligations relating to Title V permits include recordkeeping and monitoring requirements. Sources subject to PSD can be required to implement Best Available Control Technology, or BACT. In June 2014, the U.S. Supreme Court ruled that the USEPA had exceeded its statutory authority in issuing the Tailoring Rule under Section 165 of the CAA by regulating sources under the PSD program based solely on their GHG emissions. However, the U.S. Supreme Court also held that the USEPA could impose GHG BACT requirements for sources already required to implement PSD for certain other pollutants. Therefore, if future modifications to DP&L’s sources require PSD review for other pollutants, it may also trigger GHG BACT requirements. The USEPA has issued guidance on what BACT entails for the control of GHG and individual states are now required to determine what controls are required for facilities within their jurisdiction on a case-by-case basis. The ultimate impact of the BACT requirements applicable to us on our operations cannot be determined at this time as DP&L will not be required to implement BACT until DP&L constructs a new major source or makes a major modification of an existing major source. However, the cost of compliance could be material. | ||||||||||||||||
In January 2014, the USEPA proposed revised GHG New Source Performance Standards for new EGUs under CAA subsection 111(b), which would require new EGUs to limit the amount of CO2 emitted per megawatt-hour. The proposal anticipates that affected coal-fired units would need to rely upon partial implementation of carbon capture and storage or other expensive CO2 emission control technology to meet the standard. In addition, new natural gas-fired EGUs must meet a standard of no greater than 1,000 pounds of CO2 per megawatt hour (if the rule is finalized in its current form). The rule is expected to be finalized this summer. | ||||||||||||||||
The USEPA issued proposed rules establishing GHG performance standards for existing power plants under CAA Section 111(d) on June 2, 2014. Under the proposed rule, called the Clean Power Plan, states would be judged against state-specific carbon dioxide emissions targets beginning in 2020, with expected total U.S. power section emissions reduction of 30% from 2005 levels by 2030. For Ohio specifically, the Clean Power Plan proposes an interim goal for 2020-2029 and a proposed 2030 final goal of 1,452 pounds of CO2 per megawatt hour and 1,338 pounds of CO2 per megawatt hour, respectively, a reduction of approximately 28% from 2012 levels. The proposed rule requires states to submit SIPs to meet the standards set forth in the rule by June 30, 2016, with the possibility of one or two-year extensions under certain circumstances. The proposed rule requires states to submit SIPs to meet the standards set forth in the rule by June 30, 2016, with the possibility of one- or two-year extensions under certain circumstances. The proposed rule was subject to a public comment process and the USEPA is expected to finalize it by the summer of 2015. Among other things, we could be required to make efficiency improvements to existing facilities. The USEPA also issued proposed carbon pollution standards for modified and reconstructed power plants on June 2, 2014, which are also expected to be finalized by the summer of 2015. Various states and certain regulated entities have filed lawsuits challenging the Clean Power Plan. However, it is too soon to determine what the rule, and the corresponding SIPs affecting our operations, will require once they are finalized, whether they will survive judicial and other challenges, and if so, whether and when the rule and the corresponding SIP would materially impact our business, operations or financial condition. | ||||||||||||||||
Approximately 99% of the energy we produce is generated by coal. DP&L’s share of CO2 emissions at generating stations we own and co-own is approximately 14 million tons annually. Further GHG legislation or regulation implemented at a future date could have a significant effect on DP&L’s operations and costs, which could adversely affect our net income, cash flows and financial condition. However, due to the uncertainty associated with such legislation or regulation, we cannot predict the final outcome or the financial effect that such legislation or regulation may have on DP&L. | ||||||||||||||||
Litigation, Notices of Violation and Other Matters Related to Air Quality | ||||||||||||||||
Litigation Involving Co-Owned Stations | ||||||||||||||||
As a result of a 2008 consent decree entered into with the Sierra Club and approved by the U.S. District Court for the Southern District of Ohio, DP&L and the other owners of the Stuart generating station are subject to certain specified emission targets related to NOx, SO2 and particulate matter. The consent decree also includes commitments for energy efficiency and renewable energy activities. An amendment to the consent decree was entered into and approved in 2010 to clarify how emissions would be computed during malfunctions. Continued compliance with the consent decree, as amended, is not expected to have a material effect on DP&L’s results of operations, financial condition or cash flows in the future. | ||||||||||||||||
Notices of Violation Involving Co-Owned Units | ||||||||||||||||
In June 2000, the USEPA issued an NOV to the DP&L-operated Stuart generating station (co-owned by DP&L, Duke Energy and AEP Generation) for alleged violations of the CAA. The NOV contained allegations consistent with NOVs and complaints that the USEPA had brought against numerous other coal-fired utilities in the Midwest. The NOV indicated the USEPA may: (1) issue an order requiring compliance with the requirements of the Ohio SIP; or (2) bring a civil action seeking injunctive relief and civil penalties of up to $27,500 per day for each violation. To date, neither action has been taken. DP&L cannot predict the outcome of this matter. | ||||||||||||||||
In December 2007, the Ohio EPA issued an NOV to the DP&L-operated Killen generating station (co-owned by DP&L and Duke Energy) for alleged violations of the CAA. The NOV alleged deficiencies in the continuous monitoring of opacity. We submitted a compliance plan to the Ohio EPA on December 19, 2007. To date, no further actions have been taken by the Ohio EPA. | ||||||||||||||||
On March 13, 2008, Duke Energy, the operator of the Zimmer generating station, received an NOV and a Finding of Violation (FOV) from the USEPA alleging violations of the CAA, the Ohio SIP and permits for the station in areas including SO2, opacity and increased heat input. A second NOV and FOV with similar allegations was issued on November 4, 2010. Also in 2010, the USEPA issued an NOV to Zimmer for excess emissions. In addition, Zimmer received an NOV from the USEPA dated December 16, 2014 alleging violations in opacity on two dates in 2014. DP&L is a co-owner of the Zimmer generating station and could be affected by the eventual resolution of these matters. Duke Energy is expected to act on behalf of itself and the co-owners with respect to these matters. DP&L is unable to predict the outcome of these matters. | ||||||||||||||||
In January 2015, DP&L received NOVs from the USEPA alleging violations in opacity at the Stuart and Killen generating stations in 2014. DP&L is beginning the process of discussions with the USEPA on these NOVs. DP&L is unable to predict the outcome of these matters. | ||||||||||||||||
Notices of Violation Involving Wholly-Owned Stations | ||||||||||||||||
On November 18, 2009, the USEPA issued an NOV to DP&L for alleged NSR violations of the CAA at the Hutchings Station relating to capital projects performed in 2001 involving Unit 3 and Unit 6. DP&L does not believe that the two projects described in the NOV were modifications subject to NSR. As a result of the cessation of operations of the six coal-fired units at the Hutchings Station, DP&L believes that the USEPA is unlikely to pursue the NSR complaint. | ||||||||||||||||
Environmental Matters Related to Water Quality, Waste Disposal and Ash Ponds | ||||||||||||||||
Clean Water Act – Regulation of Water Intake | ||||||||||||||||
On May 19, 2014, the USEPA finalized new regulations pursuant to the CWA governing existing facilities that have cooling water intake structures. The rules require an assessment of impingement and/or entrainment of organisms as a result of cooling water withdrawal. Although we do not yet know the full impact the final rules will have on our operations, the final rules may require material changes to the intake structure at Stuart Station to reduce impingement with the possibility of additional site specific requirements for reducing entrainment. We do not believe the final rules will have a material impact on operations at any of the other DP&L-operated facilities. | ||||||||||||||||
Clean Water Act – Regulation of Water Discharge | ||||||||||||||||
In December 2006, DP&L submitted a renewal application for the Stuart generating station NPDES permit that was due to expire on June 30, 2007. The Ohio EPA issued a revised draft permit that was received on November 12, 2008. In September 2010, the USEPA formally objected to the November 12, 2008 revised permit due to questions regarding the basis for the alternate thermal limitation. At DP&L’s request, a public hearing was held on March 23, 2011, where DP&L presented its position on the issue and provided written comments. In a letter to the Ohio EPA dated September 28, 2011, the USEPA reaffirmed its objection to the revised permit as previously drafted by the Ohio EPA. This reaffirmation stipulated that if the Ohio EPA did not re-draft the permit to address the USEPA’s objection, then the authority for issuing the permit would pass to the USEPA. The Ohio EPA issued another draft permit in December 2011 and a public hearing was held on February 2, 2012. | ||||||||||||||||
The draft permit required DP&L, over the 54 months following issuance of a final permit, to take undefined actions to lower the temperature of its discharged water to a level unachievable by the station under its current design or alternatively make other significant modifications to the cooling water system. DP&L submitted comments to the draft permit. In November 2012, the Ohio EPA issued another draft which included a compliance schedule for performing a study to justify an alternate thermal limitation and to which DP&L submitted comments. In December 2012, the USEPA formally withdrew their objection to the permit. On January 7, 2013, the Ohio EPA issued a final permit. On February 1, 2013, DP&L appealed various aspects of the final permit to the Environmental Review Appeals Commission. A hearing before the Commission is scheduled for March 2015. Depending on the outcome of the appeal process, the effects on DP&L’s operations could be material. | ||||||||||||||||
In September 2009, the USEPA announced that it would be revising technology-based regulations governing water discharges from steam electric generating facilities. The rulemaking included the collection of information via an industry-wide questionnaire as well as targeted water sampling efforts at selected facilities. The proposed rule was released on June 7, 2013. Under a consent decree, the USEPA is required to issue a final rule by September 2015. At present, DP&L is unable to predict the impact this rulemaking will have on its operations. | ||||||||||||||||
A final NPDES permit for Killen Station was issued on September 4, 2014. We do not expect the new permit to have a material impact on Killen’s operations. | ||||||||||||||||
In January 2014, DP&L submitted an application for the renewal of the Hutchings Station NPDES permit which expired in July 2014. A final permit was issued on September 19, 2014 with an effective date of November 1, 2014. We do not expect the new permit to have a material impact on Hutchings’ operations. | ||||||||||||||||
Regulation of Waste Disposal | ||||||||||||||||
In September 2002, DP&L and other parties received a special notice that the USEPA considers us to be a PRP for the clean-up of hazardous substances at the South Dayton Dump landfill site. In August 2005, DP&L and other parties received a general notice regarding the performance of a Remedial Investigation and Feasibility Study (RI/FS) under a Superfund Alternative Approach. In October 2005, DP&L received a special notice letter inviting it to enter into negotiations with the USEPA to conduct the RI/FS. No recent activity has occurred with respect to that notice or PRP status. On August 16, 2006, an Administrative Settlement Agreement and Order on Consent (“ASAOC”) was executed and became effective among a group of PRPs, not including DP&L, and the USEPA. On August 25, 2009, the USEPA issued an Administrative Order requiring that access to DP&L’s service center building site, which is across the street from the landfill site, be given to the USEPA and the existing PRP group to help determine the extent of the landfill site’s contamination as well as to assess whether certain chemicals used at the service center building site might have migrated through groundwater to the landfill site. DP&L granted such access and drilling of soil borings and installation of monitoring wells occurred in late 2009 and early 2010. On May 24, 2010, three members of the existing PRP group, Hobart Corporation, Kelsey-Hayes Company and NCR Corporation, filed a civil complaint in the United States District Court for the Southern District of Ohio against DP&L and numerous other defendants alleging that DP&L and the other defendants contributed to the contamination at the South Dayton Dump landfill site and seeking reimbursement of the PRP group’s costs associated with the investigation and remediation of the site. On February 10, 2011, the Court dismissed claims against DP&L that related to allegations that chemicals used by DP&L at its service center contributed to the landfill site’s contamination. The Court, however, did not dismiss claims alleging financial responsibility for remediation costs based on hazardous substances from DP&L that were allegedly directly delivered by truck to the landfill. Discovery, including depositions of past and present DP&L employees, was conducted in 2012. On February 8, 2013, the Court granted DP&L’s motion for summary judgment on statute of limitations grounds with respect to claims seeking a contribution toward the costs that are expected to be incurred by the PRP group in performing an RI/FS under the August 15, 2006 ASAOC. That summary judgment ruling was appealed on March 4, 2013, and on July 14, 2014, a three-judge panel of the U.S. Court of Appeals for the 6th Circuit affirmed the lower Court’s ruling and subsequently denied a request by the plaintiffs for rehearing. On November 14, 2014, the PRP group appealed the decision to the U.S. Supreme Court, but the writ of certiorari was denied by the Court on January 20, 2015. On January 14, 2015, the PRP group served DP&L and other defendants a request for production of documents related to any survey regarding waste management or waste disposal. Information responsive to this request was provided on February 17, 2015. In addition, on January 16, 2015, the USEPA issued a Special Notice Letter and Section 104(e) Information Request to DP&L and other defendants, requesting historical information related to waste management practices. DP&L is in the process of developing its response to the request which is due by March 20, 2015. DP&L is unable to predict the outcome of this action by the plaintiffs and USEPA. Additionally, the Court’s 2013 ruling and the Court of Appeals’ affirmation of that ruling in 2014 does not address future litigation that may arise with respect to actual remediation costs. While DP&L is unable to predict the outcome of these matters, if DP&L were required to contribute to the clean-up of the site, it could have a material adverse effect on its operations. | ||||||||||||||||
In December 2003, DP&L and other parties received a special notice that the USEPA considers us to be a PRP for the clean-up of hazardous substances at the Tremont City landfill site. Information available to DP&L does not demonstrate that it contributed hazardous substances to the site. While DP&L is unable to predict the outcome of this matter, if DP&L were required to contribute to the clean-up of the site, it could have a material adverse effect on its operations. | ||||||||||||||||
On April 7, 2010, the USEPA published an Advance Notice of Proposed Rulemaking announcing that it is reassessing existing regulations governing the use and distribution in commerce of polychlorinated biphenyls (PCBs). While this reassessment is in the early stages and the USEPA is seeking information from potentially affected parties on how it should proceed, the outcome may have a material effect on DP&L. A proposed rule is expected in mid-2015, with a final rule expected in 2016. At present, DP&L is unable to predict the impact this initiative will have on its operations. | ||||||||||||||||
Regulation of Ash Ponds | ||||||||||||||||
In March 2009, the USEPA, through a formal Information Collection Request, collected information on ash pond facilities across the country, including those at Killen and Stuart Stations. Subsequently, the USEPA collected similar information for the Hutchings Station. | ||||||||||||||||
In August 2010, the USEPA conducted an inspection of the Hutchings Station ash ponds. In June 2011, the USEPA issued a final report from the inspection including recommendations relative to the Hutchings Station ash ponds. DP&L is unable to predict whether there will be additional USEPA action relative to DP&L’s proposed plan or the effect on operations that might arise under a different plan. | ||||||||||||||||
In June 2011, the USEPA conducted an inspection of the Killen Station ash ponds. In May 2012, we received a draft report on the inspection. DP&L submitted comments on the draft report in June 2012. On March 14, 2013, DP&L received the final report on the inspection of the Killen Station ash pond inspection from the USEPA which included recommended actions. DP&L has submitted a response with its actions to the USEPA. DP&L is unable to predict the outcome this inspection will have on its operations. | ||||||||||||||||
There has been increasing advocacy to regulate coal combustion residuals (CCR) under the Resource Conservation Recovery Act (RCRA). On June 21, 2010, the USEPA published a proposed rule seeking comments on two options under consideration for the regulation of coal combustion byproducts including regulating the material as a hazardous waste under RCRA Subtitle C or as a solid waste under RCRA Subtitle D. The USEPA released its final rule on December 19, 2014 designating coal combustion residuals that are not beneficially reused as non-hazardous solid waste under RCRA Subtitle D. The rule becomes effective six months after publication of the rule in the Federal Register, expected in February 2015, and applies new detailed management practices to new and existing landfills and surface impoundments, including lateral expansions of such units. DP&L is currently reviewing the rule and assessing the impact on our operations. Our business, financial condition or operations could be materially and adversely affected by this regulation. | ||||||||||||||||
Notice of Violation Involving Co-Owned Units | ||||||||||||||||
On September 9, 2011, DP&L received an NOV from the USEPA with respect to its co-owned Stuart generating station based on a compliance evaluation inspection conducted by the USEPA and Ohio EPA in 2009. The notice alleged non-compliance by DP&L with certain provisions of the RCRA, the CWA NPDES permit program, and the station’s storm water pollution prevention plan. The notice requested that DP&L respond with the actions it has subsequently taken or plans to take to remedy the USEPA’s findings and ensure that further violations will not occur. Based on its review of the findings, although there can be no assurance, we believe that the notice will not result in any material effect on DP&L’s results of operations, financial condition or cash flows. | ||||||||||||||||
Legal and Other Matters | ||||||||||||||||
In February 2007, DP&L filed a lawsuit against a coal supplier seeking damages incurred due to the supplier’s failure to supply approximately 1.5 million tons of coal to two commonly-owned stations under a coal supply agreement, of which approximately 570 thousand tons was DP&L’s share. DP&L obtained replacement coal to meet its needs. The supplier has denied liability, and is currently in federal bankruptcy proceedings in which DP&L is participating as an unsecured creditor. DP&L is unable to determine the ultimate resolution of this matter. DP&L has not recorded any assets relating to possible recovery of costs in this lawsuit. | ||||||||||||||||
In connection with DP&L and other utilities joining PJM, in 2006 the FERC ordered utilities to eliminate certain charges to implement transitional payments, known as SECA, effective December 1, 2004 through March 31, 2006, subject to refund. Through this proceeding, DP&L was obligated to pay SECA charges to other utilities, but received a net benefit from these transitional payments. A hearing was held and an initial decision was issued in August 2006. A final FERC order on this issue was issued on May 21, 2010 that substantially supports DP&L’s and other utilities’ position that SECA obligations should be paid by parties that used the transmission system during the timeframe stated above. Prior to this final order being issued, DP&L entered into a significant number of bilateral settlement agreements with certain parties to resolve the matter, which by design will be unaffected by the final decision. On July 5, 2012, a Stipulation was executed and filed with the FERC that resolves SECA claims against BP Energy Company (“BP”) and DP&L, AEP (and its subsidiaries) and Exelon Corporation (and its subsidiaries). On October 1, 2012, DP&L received $14.6 million (including interest income of $1.8 million) from BP and recorded the settlement in the third quarter; at December 31, 2012, there is no remaining balance in other deferred credits related to SECA. | ||||||||||||||||
Business_Segments
Business Segments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Business Segments [Abstract] | ||||||||||||||||
Business Segments | ||||||||||||||||
Note 14 – Business Segments | ||||||||||||||||
DPL operates through two segments consisting of the operations of two of its wholly-owned subsidiaries, DP&L (Utility segment) and DPLER (Competitive Retail segment which includes DPLER’s wholly-owned subsidiary, MC Squared). This is how we view our business and make decisions on how to allocate resources and evaluate performance. | ||||||||||||||||
The Utility segment is comprised of DP&L’s electric generation, transmission and distribution businesses which generate and deliver electricity to residential, commercial, industrial and governmental customers. DP&L generates electricity at five coal-fired electric generating stations and distributes electricity to more than 516,000 retail customers who are located in a 6,000 square mile area of West Central Ohio. DP&L also sells electricity to DPLER and any excess energy and capacity is sold into the wholesale market. DP&L’s transmission and distribution businesses are subject to rate regulation by federal and state regulators while its generation business is deemed competitive under Ohio law. | ||||||||||||||||
The Competitive Retail segment is DPLER’s competitive retail electric service businesses which sell retail electric energy under contract to residential, commercial, industrial and governmental customers who have selected DPLER or its subsidiary MC Squared as their alternative electric supplier. The Competitive Retail segment sells electricity to approximately 260,000 customers currently located throughout Ohio and in Illinois. The Competitive Retail segment’s electric energy used to meet its sales obligations was purchased from DP&L. Intercompany sales from DP&L to DPLER are based on fixed-price contracts for each customer; the price approximates market prices for wholesale power at the inception of each customer’s contract. DP&L started selling power to MC Squared during June 2012 and became their sole source of power in September 2012 under the same terms as above. The operations of the Competitive Retail segment are not subject to cost-of-service rate regulation by federal or state regulators. | ||||||||||||||||
Included within the “Other” column are other businesses that do not meet the GAAP requirements for disclosure as reportable segments as well as certain corporate costs which include interest expense on DPL’s debt. | ||||||||||||||||
Management evaluates segment performance based on gross margin. The accounting policies of the reportable segments are the same as those described in Note 1 – Overview and Summary of Significant Accounting Policies. Intersegment sales and profits are eliminated in consolidation. | ||||||||||||||||
The following tables present financial information for each of DPL’s reportable business segments: | ||||||||||||||||
$ in millions | Utility | Competitive Retail | Other | Adjustments and Eliminations | DPL Consolidated | |||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Revenues from external customers | $ | 1,181.2 | $ | 533.6 | $ | 48.2 | $ | - | $ | 1,763.0 | ||||||
Intersegment revenues | 487.1 | - | 5.5 | -492.6 | - | |||||||||||
Total revenues | 1,668.3 | 533.6 | 53.7 | -492.6 | 1,763.0 | |||||||||||
Fuel | 314.9 | - | -10.4 | - | 304.5 | |||||||||||
Purchased power | 582.4 | 491.8 | 7.5 | -489.1 | 592.6 | |||||||||||
Amortization of intangibles | - | - | 1.2 | - | 1.2 | |||||||||||
Gross margin (a) | $ | 771.0 | $ | 41.8 | $ | 55.4 | $ | -3.5 | $ | 864.7 | ||||||
Depreciation and amortization | $ | 144.8 | $ | 0.8 | $ | -5.8 | $ | - | $ | 139.8 | ||||||
Goodwill impairment (Note 5) | $ | - | $ | - | $ | 135.8 | $ | - | $ | 135.8 | ||||||
Fixed asset impairment | $ | - | $ | - | $ | 11.5 | $ | - | $ | 11.5 | ||||||
Interest expense | $ | 33.9 | $ | 0.5 | $ | 92.9 | $ | -0.7 | $ | 126.6 | ||||||
Income tax expense / (benefit) | $ | 39.7 | $ | 2.0 | $ | -23.7 | $ | - | $ | 18.0 | ||||||
Net income / (loss) | $ | 115.0 | $ | 3.2 | $ | -192.8 | $ | - | $ | -74.6 | ||||||
Cash capital expenditures | $ | 114.2 | $ | 2.5 | $ | 1.4 | $ | - | $ | 118.1 | ||||||
Total assets (end of year) | $ | 3,338.7 | $ | 94.9 | $ | 1,440.1 | $ | -1,295.90 | $ | 3,577.8 | ||||||
(a)For purposes of discussing operating results, we present and discuss gross margins. This format is useful to investors because it allows analysis and comparability of operating trends and includes the same information that is used by management to make decisions regarding our financial performance. | ||||||||||||||||
$ in millions | Utility | Competitive Retail | Other | Adjustments and Eliminations | DPL Consolidated | |||||||||||
Year ended December 31, 2013 | ||||||||||||||||
Revenues from external customers | $ | 1,098.2 | $ | 511.6 | $ | 27.1 | $ | - | $ | 1,636.9 | ||||||
Intersegment revenues | 453.3 | - | 4.0 | -457.3 | - | |||||||||||
Total revenues | 1,551.5 | 511.6 | 31.1 | -457.3 | 1,636.9 | |||||||||||
Fuel | 362.5 | - | 4.2 | - | 366.7 | |||||||||||
Purchased power | 381.9 | 459.7 | 1.1 | -453.7 | 389.0 | |||||||||||
Amortization of intangibles | - | - | 7.1 | - | 7.1 | |||||||||||
Gross margin (a) | $ | 807.1 | $ | 51.9 | $ | 18.7 | $ | -3.6 | $ | 874.1 | ||||||
Depreciation and amortization | $ | 140.2 | $ | 0.6 | $ | -7.9 | $ | - | $ | 132.9 | ||||||
Goodwill impairment (Note 5) | $ | - | $ | - | $ | 306.3 | $ | - | $ | 306.3 | ||||||
Fixed asset impairment | $ | 86.0 | $ | - | $ | -59.8 | $ | - | $ | 26.2 | ||||||
Interest expense | $ | 37.2 | $ | 0.5 | $ | 86.9 | $ | -0.6 | $ | 124.0 | ||||||
Income tax expense / (benefit) | $ | 18.6 | $ | 4.2 | $ | -0.5 | $ | - | $ | 22.3 | ||||||
Net income / (loss) | $ | 83.6 | $ | 6.6 | $ | -312.2 | $ | - | $ | -222 | ||||||
Cash capital expenditures | $ | 122.1 | $ | - | $ | 2.3 | $ | - | $ | 124.4 | ||||||
Total assets (end of year) | $ | 3,313.1 | $ | 105.0 | $ | 1,675.8 | $ | -1,372.40 | $ | 3,721.5 | ||||||
(a)For purposes of discussing operating results, we present and discuss gross margins. This format is useful to investors because it allows analysis and comparability of operating trends and includes the same information that is used by management to make decisions regarding our financial performance. | ||||||||||||||||
$ in millions | Utility | Competitive Retail | Other | Adjustments and Eliminations | DPL Consolidated | |||||||||||
Year ended December 31, 2012 | ||||||||||||||||
Revenues from external customers | $ | 1,138.4 | $ | 493.1 | $ | 36.9 | $ | - | $ | 1,668.4 | ||||||
Intersegment revenues | 393.4 | - | 3.4 | -396.8 | - | |||||||||||
Total revenues | 1,531.8 | 493.1 | 40.3 | -396.8 | 1,668.4 | |||||||||||
Fuel | 354.9 | - | 7.0 | - | 361.9 | |||||||||||
Purchased power | 309.5 | 424.5 | 1.5 | -393.4 | 342.1 | |||||||||||
Amortization of intangibles | - | - | 95.1 | - | 95.1 | |||||||||||
Gross margin (a) | $ | 867.4 | $ | 68.6 | $ | -63.3 | $ | -3.4 | $ | 869.3 | ||||||
Depreciation and amortization | $ | 141.3 | $ | 0.4 | $ | -16.3 | $ | - | $ | 125.4 | ||||||
Goodwill impairment (Note 5) | $ | - | $ | - | $ | 1,817.2 | $ | - | $ | 1,817.2 | ||||||
Fixed asset impairment | $ | 80.8 | $ | - | $ | -80.8 | $ | - | $ | - | ||||||
Interest expense | $ | 39.1 | $ | 0.6 | $ | 83.9 | $ | -0.7 | $ | 122.9 | ||||||
Income tax expense / (benefit) | $ | 55.1 | $ | 18.1 | $ | -25.5 | $ | - | $ | 47.7 | ||||||
Net income / (loss) | $ | 91.2 | $ | 22.8 | $ | -1,725.40 | $ | -118.4 | $ | -1,729.80 | ||||||
Cash capital expenditures | $ | 195.5 | $ | - | $ | 2.6 | $ | - | $ | 198.1 | ||||||
Total assets (end of year) | $ | 3,464.2 | $ | 99.2 | $ | 683.9 | $ | - | $ | 4,247.3 | ||||||
(a)For purposes of discussing operating results, we present and discuss gross margins. This format is useful to investors because it allows analysis and comparability of operating trends and includes the same information that is used by management to make decisions regarding our financial performance. | ||||||||||||||||
Fixed_Asset_Impairment
Fixed Asset Impairment | 12 Months Ended |
Dec. 31, 2014 | |
Fixed-asset Impairment | |
Note 15 – Fixed-asset Impairment | |
During the first quarter of 2014, DP&L tested the recoverability of long-lived assets at East Bend, a 186 MW coal-fired plant in Kentucky jointly-owned by DP&L. Indications during that quarter that the fair value of the asset group was less than its carrying amount were determined to be impairment indicators given how narrowly these long-lived assets had passed the recoverability test during the fourth quarter of 2013. DP&L performed a long-lived asset impairment test and determined that the carrying amount of the asset group was not recoverable. The East Bend asset group was determined to have a fair value of $2.7 million using the market approach. As a result, we recognized an asset impairment expense of $11.5 million. East Bend is reported in the Utility segment, however, this impairment is shown within Other in Business Segments (Note 14) due to acquisition adjustments at DPL which were not pushed down to the utility segment.. In May 2014, an agreement was signed for the sale of DP&L’s interest in the generating assets at East Bend. This transaction closed on December 30, 2014. | |
During the fourth quarter of 2013, the Company tested the recoverability of the long-lived assets at Conesville, a 129 MW coal-fired station in Ohio jointly-owned by DP&L. Gradual decreases in power prices as well as lower estimates of future capacity prices in conjunction with the DP&L reporting unit failing step 1 of the annual goodwill impairment test were determined to be an impairment indicator for long-lived assets. The Company performed a long-lived asset impairment test and determined that the carrying amount of the asset group was not recoverable. The long-lived asset group subject to the impairment evaluation was determined to be each individual station of DP&L. This determination was based on the assessment of the stations’ ability to generate independent cash flows. The Conesville asset group was determined to have zero fair value using discounted cash flows under the income approach. As a result, the Company recognized an asset impairment expense of $26.2 million. Conesville is reported in the Utility segment. | |
DP&L [Member] | |
Fixed-asset Impairment | |
Note 13 – Fixed-asset Impairment | |
During the fourth quarter of 2013, the Company tested the recoverability of long-lived assets at Conesville, a 129 MW coal-fired station in Ohio, and East Bend, a 186 MW coal-fired station in Kentucky jointly-owned by DP&L. Gradual decreases in power prices, as well as lower estimates of future capacity prices in conjunction with the DP&L reporting unit of DPL failing step 1 of the annual goodwill impairment test were collectively determined to be an impairment indicator for the DP&L long-lived assets. The Company performed a long-lived asset impairment test and determined that the carrying amounts of the asset groups were not recoverable. The long-lived asset group subject to the impairment evaluation was determined to be each individual station of DP&L. This determination was based on the assessment of the stations’ ability to generate independent cash flows. The Conesville and East Bend asset groups were each determined to have a zero fair value using discounted cash flows under the income approach. As a result, the Company recognized an asset impairment expense of $10.0 million and $76.0 million for Conesville and East Bend, respectively. | |
On October 5, 2012, DP&L filed for approval an ESP with the PUCO which reflected a shift in our outlook for the regulatory environment. Within the ESP filing, DP&L agreed to request a separation of its generation assets from its transmission and distribution assets in recognition that a restructuring of DP&L operations will be necessary, in compliance with Ohio law. Also, during 2012, North American natural gas prices fell significantly from the previous year, exerting downward pressure on wholesale electricity prices in the Ohio power market. Falling power prices compressed wholesale margins at DP&L’s generating stations. Furthermore, these lower power prices led to increased customer switching from DP&L to CRES providers, who were offering retail prices lower than DP&L’s standard service offer. Also, several municipalities in DP&L’s service territory have passed ordinances allowing them to become government aggregators with some having already contracted with CRES providers, further contributing to the switching trend. In September 2012, management revised its cash flow forecasts based on these developments as part of its annual budgeting process and forecasted lower operating cash flows than in prior reporting periods. Collectively, in the third quarter of 2012, these events were considered to be an impairment indicator for the long-lived asset group as management believed that these developments represent a significant adverse change in the business climate that could affect the value of the long-lived asset group. | |
The long-lived asset group subject to the impairment evaluation was determined to be each individual station of DP&L. This determination was based on the assessment of the stations’ ability to generate independent cash flows. When the recoverability test of the long-lived asset group was performed, management concluded that, on an undiscounted cash flow basis, the carrying amount of two stations, Conesville and Hutchings, were not recoverable. | |
The fair value using the income approach was considered the most appropriate and resulted in a $25.0 million fair value for the Conesville Station. The carrying value of the Conesville station prior to the impairment was $97.5 million. Accordingly, the Conesville station was considered impaired and $72.5 million of impairment expense was recognized in the third quarter of 2012. | |
The fair value using the income approach was considered the most appropriate and resulted in a zero fair value for the Hutchings Station. The carrying value of the Hutchings Station prior to the impairment was $8.3 million. Accordingly, the Hutchings Station was considered impaired and $8.3 million of impairment expense was recognized in the third quarter of 2012. | |
Schedule_II_Valuation_And_Qual
Schedule II Valuation And Qualifying Accounts | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule II Valuation And Qualifying Accounts | |||||||||||||
DPL Inc. | |||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||
For each of the three years ended December 31, 2012 - 2014 | |||||||||||||
$ in thousands | |||||||||||||
Description | Balance at | Additions | Deductions (a) | Balance at | |||||||||
Beginning | End of Period | ||||||||||||
of Period | |||||||||||||
Year ended December 31, 2014 | |||||||||||||
Deducted from accounts receivable - | |||||||||||||
Provision for uncollectible accounts | $ | 1,160 | $ | 7,644 | $ | 7,537 | $ | 1,267 | |||||
Deducted from deferred tax assets - | |||||||||||||
Valuation allowance for deferred tax assets | $ | 13,721 | $ | 5,179 | $ | - | $ | 18,900 | |||||
Year ended December 31, 2013 | |||||||||||||
Deducted from accounts receivable - | |||||||||||||
Provision for uncollectible accounts | $ | 1,084 | $ | 6,156 | $ | 6,080 | $ | 1,160 | |||||
Deducted from deferred tax assets - | |||||||||||||
Valuation allowance for deferred tax assets | $ | 12,349 | $ | 2,159 | $ | 787 | $ | 13,721 | |||||
Year ended December 31, 2012 | |||||||||||||
Deducted from accounts receivable - | |||||||||||||
Provision for uncollectible accounts | $ | 1,136 | $ | 5,902 | $ | 5,954 | $ | 1,084 | |||||
Deducted from deferred tax assets - | |||||||||||||
Valuation allowance for deferred tax assets | $ | 6,702 | $ | 6,747 | $ | 1,100 | $ | 12,349 | |||||
(a) Amounts written off, net of recoveries of accounts previously written off. | |||||||||||||
DP&L [Member] | |||||||||||||
Schedule II Valuation And Qualifying Accounts | |||||||||||||
THE DAYTON POWER AND LIGHT COMPANY | |||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||
For each of the three years ended December 31, 2012 - 2014 | |||||||||||||
$ in thousands | |||||||||||||
Description | Balance at | Additions | Deductions (a) | Balance at | |||||||||
Beginning | End of Period | ||||||||||||
of Period | |||||||||||||
Year ended December 31, 2014 | |||||||||||||
Deducted from accounts receivable - | |||||||||||||
Provision for uncollectible accounts | $ | 909 | $ | 4,011 | $ | 4,023 | $ | 897 | |||||
Year ended December 31, 2013 | |||||||||||||
Deducted from accounts receivable - | |||||||||||||
Provision for uncollectible accounts | $ | 923 | $ | 4,924 | $ | 4,938 | $ | 909 | |||||
Year ended December 31, 2012 | |||||||||||||
Deducted from accounts receivable - | |||||||||||||
Provision for uncollectible accounts | $ | 941 | $ | 5,393 | $ | 5,411 | $ | 923 | |||||
(a) Amounts written off, net of recoveries of accounts previously written off. | |||||||||||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Policy) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Description of Business | Description of Business | ||||||||||||
DPL is a diversified regional energy company organized in 1985 under the laws of Ohio. DPL’s two reportable segments are the Utility segment, comprised of its DP&L subsidiary, and the Competitive Retail segment, comprised of its DPLER subsidiary. See Note 14 for more information relating to these reportable segments. The terms “we,” “us,” “our” and “ours” are used to refer to DPL and its subsidiaries. | |||||||||||||
On November 28, 2011, DPL was acquired by AES in the Merger and DPL became a wholly-owned subsidiary of AES. Following the merger of DPL and Dolphin Subsidiary II, Inc., DPL became an indirectly wholly-owned subsidiary of AES. | |||||||||||||
DP&L is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service, however distribution and transmission retail service are still regulated. DP&L has the exclusive right to provide such service to its approximately 516,000 customers located in West Central Ohio. Additionally, DP&L procures and provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio and generates electricity at five coal-fired power stations. Beginning in 2014, DP&L no longer supplies 100% of the generation for SSO customers and by January 2016, SSO will be 100% competitively bid. Principal industries located in DP&L’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. DP&L's sales reflect the general economic conditions, seasonal weather patterns of the area and the market price of electricity. DP&L sells any excess energy and capacity into the wholesale market. DP&L also sells electricity to DPLER, an affiliate, to satisfy the electric requirements of its retail customers. | |||||||||||||
In accordance with the ESP Order, on December 30, 2013, DP&L filed an application with the PUCO stating its plan to transfer or sell its generation assets. Comments and reply comments were filed. DP&L amended its application on February 25, 2014 and again on May 23, 2014. Additional comments and reply comments were filed. On July 14, 2014, DP&L announced its decision to retain DP&L’s generation assets. On September 17, 2014 the PUCO ordered that DP&L’s application as amended and updated was approved. DP&L is required to sell or transfer its generation assets by January 1, 2017 and continues to look at multiple options to effectuate the separation including transfer into a new unregulated affiliate of DPL or through a sale. | |||||||||||||
DPLER sells competitive retail electric service, under contract, to residential, commercial and industrial customers. DPLER’s operations include those of its wholly-owned subsidiary MC Squared. DPLER has approximately 260,000 customers currently located throughout Ohio and Illinois. Approximately 131,000 of DPLER’s customers are also electric distribution customers of DP&L. DPLER does not own any transmission or generation assets, and purchases all of its electric energy from DP&L to meet its sales obligations. DPLER’s sales reflect the general economic conditions and seasonal weather patterns of the area. | |||||||||||||
DPL’s other significant subsidiaries include DPLE, which owns and operates peaking generating facilities from which it makes wholesale sales of electricity and MVIC, our captive insurance company that provides insurance services to us and our other subsidiaries. All of DPL’s subsidiaries are wholly-owned. | |||||||||||||
DPL also has a wholly-owned business trust, DPL Capital Trust II, formed for the purpose of issuing trust capital securities to investors. | |||||||||||||
DP&L’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators while its generation business is deemed competitive under Ohio law. Accordingly, DP&L applies the accounting standards for regulated operations to its electric transmission and distribution businesses and records regulatory assets when incurred costs are expected to be recovered in future customer rates, and regulatory liabilities when current cost recoveries in customer rates relate to expected future costs. | |||||||||||||
DPL and its subsidiaries employed 1,182 people as of December 31, 2014, of which 1,130 were employed by DP&L. Approximately 61% of all DPL employees are under a collective bargaining agreement which expires on October 31, 2017. | |||||||||||||
Financial Statement Presentation | Financial Statement Presentation | ||||||||||||
We prepare Consolidated Financial Statements for DPL. DPL’s Consolidated Financial Statements include the accounts of DPL and its wholly-owned subsidiaries except for DPL Capital Trust II which is not consolidated, consistent with the provisions of GAAP. DP&L’s undivided ownership interests in certain coal-fired generating stations are included in the financial statements at amortized cost, which was adjusted to fair value at the Merger date. Operating revenues and expenses are included on a pro rata basis in the corresponding lines in the Consolidated Statement of Operations. See Note 4 for more information. | |||||||||||||
Certain immaterial amounts from prior periods have been reclassified to conform to the current period presentation. | |||||||||||||
All material intercompany accounts and transactions are eliminated in consolidation. | |||||||||||||
The preparation of financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the revenues and expenses of the periods reported. Actual results could differ from these estimates. Significant items subject to such estimates and judgments include: the carrying value of Property, plant and equipment; the valuation of goodwill; unbilled revenues; the valuation of derivative instruments; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; regulatory assets and liabilities; reserves recorded for income tax exposures; litigation; contingencies; the valuation of AROs; assets and liabilities related to employee benefits; goodwill; and intangibles. | |||||||||||||
Valuation of Goodwill | |||||||||||||
FASC 350, “Intangibles – Goodwill and Other”, requires that goodwill be tested for impairment at the reporting unit level at least annually or more frequently if impairment indicators are present. In evaluating the potential impairment of goodwill, we make estimates and assumptions about revenue, operating cash flows, capital expenditures, growth rates and discount rates based on our budgets and long term forecasts, macroeconomic projections, and current market expectations of returns on similar assets. There are inherent uncertainties related to these factors and management’s judgment in applying these factors. Generally, the fair value of a reporting unit is determined using a discounted cash flow valuation model. We could be required to evaluate the potential impairment of goodwill outside of the required annual assessment process if we experience situations, including but not limited to: deterioration in general economic conditions; operating or regulatory environment; increased competitive environment; increase in fuel costs particularly when we are unable to pass its effect to customers; negative or declining cash flows; loss of a key contract or customer particularly when we are unable to replace it on equally favorable terms; or adverse actions or assessments by a regulator. These types of events and the resulting analyses could result in goodwill impairment expense, which could substantially affect our results of operations for those periods. See Note 5 for information regarding the impairments of goodwill in 2014, 2013 and 2012. | |||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||
Revenues are recognized from retail and wholesale electricity sales and electricity transmission and distribution delivery services. We consider revenue realized, or realizable, and earned when persuasive evidence of an arrangement exists, the products or services have been provided to the customer, the sales price is fixed or determinable, and collection is reasonably assured. Energy sales to customers are based on the reading of their meters that occurs on a systematic basis throughout the month. We recognize the revenues on our statements of operations using an accrual method for retail and other energy sales that have not yet been billed, but where electricity has been consumed. This is termed “unbilled revenues” and is a widely recognized and accepted practice for utilities. At the end of each month, unbilled revenues are determined by the estimation of unbilled energy provided to customers since the date of the last meter reading, estimated line losses, the assignment of unbilled energy provided to customer classes and the average rate per customer class. | |||||||||||||
All of the power produced at the generation stations is sold to an RTO and we in turn purchase it back from the RTO to supply our customers. The power sales and purchases within DP&L’s service territory are reported on a net hourly basis as revenues or purchased power on our Statements of Operations. We record expenses when purchased electricity is received and when expenses are incurred, with the exception of the ineffective portion of certain power purchase contracts that are derivatives and qualify for hedge accounting. We also have certain derivative contracts that do not qualify for hedge accounting, and their unrealized gains or losses are recorded prior to the receipt of electricity. | |||||||||||||
Receivables | Allowance for Uncollectible Accounts | ||||||||||||
We establish provisions for uncollectible accounts by using both historical average loss percentages to project future losses and by establishing specific provisions for known credit issues. Amounts are written off when reasonable collections efforts have been exhausted. | |||||||||||||
Sale of Receivables | |||||||||||||
DPLER and its subsidiary MC Squared sell receivables from their customers. These sales are at face value for cash at the billed amounts for their customers’ use of energy. Total receivables sold during the years ended December 31, 2014 and 2013 were $125.6 million and $96.1 million, respectively. | |||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||
We record our ownership share of our undivided interest in jointly-held stations as an asset in property, plant and equipment. New property, plant and equipment additions are stated at cost. For regulated transmission and distribution property, cost includes direct labor and material, allocable overhead expenses and an allowance for funds used during construction (AFUDC). AFUDC represents the cost of borrowed funds and equity used to finance regulated construction projects. For non-regulated property, cost also includes capitalized interest. Capitalization of AFUDC and interest ceases at either project completion or at the date specified by regulators. AFUDC and capitalized interest was $1.5 million, $1.5 million and $4.0 million in the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
For unregulated generation property, cost includes direct labor and material, allocable overhead expenses and interest capitalized during construction using the provisions of GAAP relating to the accounting for capitalized interest. | |||||||||||||
For substantially all depreciable property, when a unit of property is retired, the original cost of that property less any salvage value is charged to Accumulated depreciation and amortization. | |||||||||||||
Property is evaluated for impairment when events or changes in circumstances indicate that its carrying amount may not be recoverable. | |||||||||||||
Repairs and Maintenance | Repairs and Maintenance | ||||||||||||
Costs associated with maintenance activities, primarily power station outages, are recognized at the time the work is performed. These costs, which include labor, materials and supplies, and outside services required to maintain equipment and facilities, are capitalized or expensed based on defined units of property. | |||||||||||||
Depreciation Study - Change in Estimate | Depreciation – Changes in Estimates | ||||||||||||
Depreciation expense is calculated using the straight-line method, which allocates the cost of property over its estimated useful life. For DPL’s generation, transmission and distribution assets, straight-line depreciation is applied monthly on an average composite basis using group rates. | |||||||||||||
During the fourth quarter of 2013, the Company tested the recoverability of long-lived assets at certain generating stations. See Note 15 for more information. Gradual decreases in power prices as well as lower estimates of future capacity prices in conjunction with the DP&L reporting unit of DPL failing step 1 of the annual goodwill impairment test were collectively determined to be an impairment indicator. | |||||||||||||
For DPL’s generation, transmission, and distribution assets, straight-line depreciation is applied on an average annual composite basis using group rates that approximated 5.3% in 2014, 5.8% in 2013 and 4.8% in 2012. | |||||||||||||
The following is a summary of DPL’s Property, plant and equipment with corresponding composite depreciation rates at December 31, 2014 and 2013: | |||||||||||||
Asset Retirement Obligations, Policy [Policy Text Block] | AROs | ||||||||||||
We recognize AROs in accordance with GAAP which requires legal obligations associated with the retirement of long-lived assets to be recognized at their fair value at the time those obligations are incurred. Upon initial recognition of a legal liability, costs are capitalized as part of the related long-lived asset and depreciated over the useful life of the related asset. Our legal obligations associated with the retirement of our long-lived assets consists primarily of river intake and discharge structures, coal unloading facilities, loading docks, ice breakers and ash disposal facilities. Our generation AROs are recorded within Other deferred credits on the consolidated balance sheets. | |||||||||||||
Estimating the amount and timing of future expenditures of this type requires significant judgment. Management routinely updates these estimates as additional information becomes available. | |||||||||||||
Changes in the Liability for Generation AROs | |||||||||||||
$ in millions | |||||||||||||
Balance at December 31, 2012 | $ | 23.9 | |||||||||||
Calendar 2013 | |||||||||||||
Accretion expense | 0.8 | ||||||||||||
Settlements | -0.3 | ||||||||||||
Balance at December 31, 2013 | 24.4 | ||||||||||||
Calendar 2014 | |||||||||||||
Additions | 3.6 | ||||||||||||
Accretion expense | 0.9 | ||||||||||||
Settlements | -2 | ||||||||||||
Balance at December 31, 2014 | $ | 26.9 | |||||||||||
Asset Removal Costs | |||||||||||||
We continue to record costs of removal for our regulated transmission and distribution assets through our depreciation rates and recover those amounts in rates charged to our customers. There are no known legal AROs associated with these assets. We have recorded $119.3 million and $115.0 million in estimated costs of removal at December 31, 2014 and 2013, respectively, as regulatory liabilities for our transmission and distribution property. These amounts represent the excess of the cumulative removal costs recorded through depreciation rates versus the cumulative removal costs actually incurred. See Note 3 for additional information. | |||||||||||||
Regulatory Accounting | Regulatory Accounting | ||||||||||||
As a regulated utility, we apply the provisions of FASC 980 “Regulated Operations,” which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory assets have been included as allowable costs for ratemaking purposes, as authorized by the PUCO or established regulatory practices. Regulatory liabilities generally represent obligations to make refunds or future rate reductions to customers for previous over collections or the deferral of revenues collected for costs that DPL expects to incur in the future. | |||||||||||||
The deferral of costs (as regulatory assets) is appropriate only when the future recovery of such costs is probable. In assessing probability, we consider such factors as specific orders from the PUCO or FERC, regulatory precedent and the current regulatory environment. To the extent recovery of costs is no longer deemed probable, related regulatory assets would be required to be expensed in current period earnings. Our regulatory assets and liabilities have been created pursuant to a specific order of the PUCO or FERC or established regulatory practices, such as other utilities under the jurisdiction of the PUCO or FERC being granted recovery of similar costs. It is probable, but not certain, that these regulatory assets will be recoverable, subject to PUCO or FERC approval. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 3 for more information about Regulatory Assets and Liabilities. | |||||||||||||
Inventories | Inventories | ||||||||||||
Inventories are carried at average cost and include coal, limestone, oil and gas used for electric generation, and materials and supplies used for utility operations. | |||||||||||||
Intangibles | Intangibles | ||||||||||||
Intangibles include emission allowances, renewable energy credits, customer relationships, customer contracts and trademark/trade name. Emission allowances are carried on a first-in, first-out (FIFO) basis for purchased emission allowances. Net gains or losses on the sale of excess emission allowances, representing the difference between the sales proceeds and the cost of emission allowances, are recorded as a component of our fuel costs and are reflected in Operating income when realized. | |||||||||||||
Customer relationships recognized as part of the purchase accounting are amortized over nine to fifteen years and customer contracts are amortized over the average length of the contracts. Emission allowances are amortized as they are used in our operations on a FIFO basis. Renewable energy credits are amortized as they are used or retired. Trademark/trade name have an indefinite life and accordingly are not amortized. See Note 5 for additional information. | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
Income taxes are accounted in accordance with FASC 740, “Income Taxes”, which requires an asset and liability approach for financial accounting and reporting of income taxes with tax effects of differences, based on currently enacted income tax rates, between the financial reporting and tax basis of accounting reported as deferred tax assets or liabilities in the balance sheets. Valuation allowances are provided against deferred tax assets unless it is more likely than not that the asset will be realized. | |||||||||||||
Investment tax credits, which have been used to reduce federal income taxes payable, are deferred for financial reporting purposes and are amortized over the useful lives of the property to which they relate. For rate-regulated operations, additional deferred income taxes and offsetting regulatory assets or liabilities are recorded to recognize that income taxes will be recoverable or refundable through future revenues. | |||||||||||||
DPL and its subsidiaries file U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 7 for additional information. | |||||||||||||
Financial Instruments | Financial Instruments | ||||||||||||
We classify our investments in debt and equity financial instruments of publicly traded entities into different categories: held-to-maturity and available-for-sale. Available-for-sale securities are carried at fair value and unrealized gains and losses on those securities, net of deferred income taxes, are presented as a separate component of shareholders’ equity. Other than temporary declines in value are recognized currently in earnings. Financial instruments classified as held-to-maturity are carried at amortized cost. The cost basis for public equity security and fixed maturity investments is average cost and amortized cost, respectively. | |||||||||||||
Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities | Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities | ||||||||||||
DP&L collects certain excise taxes levied by state or local governments from its customers. DP&L’s excise taxes and certain other taxes are accounted for on a net basis and recorded as a reduction in revenues in the accompanying Statements of Operations. The amounts for the years ended December 31, 2014, 2013 and 2012, were $50.8 million, $50.5 million and $50.5 million, respectively. | |||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents. | |||||||||||||
Restricted Cash | |||||||||||||
Restricted cash includes cash which is restricted as to withdrawal or usage. The nature of the restrictions include restrictions imposed by agreements related to deposits held as collateral. | |||||||||||||
Financial Derivatives | Financial Derivatives | ||||||||||||
All derivatives are recognized as either assets or liabilities in the balance sheets and are measured at fair value. Changes in the fair value are recorded in earnings unless the derivative is designated as a cash flow hedge of a forecasted transaction or it qualifies for the normal purchases and sales exception. | |||||||||||||
We use forward contracts to reduce our exposure to changes in energy and commodity prices and as a hedge against the risk of changes in cash flows associated with expected electricity purchases. These purchases are used to hedge our full load requirements. We also hold forward sales contracts that hedge against the risk of changes in cash flows associated with power sales during periods of projected generation facility availability. We use cash flow hedge accounting when the hedge or a portion of the hedge is deemed to be highly effective, which results in changes in fair value being recorded within accumulated other comprehensive income, a component of shareholder’s equity. We have elected not to offset net derivative positions in the financial statements. Accordingly, we do not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 10 for additional information. | |||||||||||||
Insurance and Claims Costs | Insurance and Claims Costs | ||||||||||||
In addition to insurance obtained from third-party providers, MVIC, a wholly-owned captive subsidiary of DPL, provides insurance coverage solely to us, our subsidiaries and, in some cases, our partners in commonly-owned facilities we operate, for workers’ compensation, general liability, and property damage on an ongoing basis. MVIC maintains an active run-off policy for directors’ and officers’ liability and fiduciary through their expiration in 2017 and may or may not be renewed at that time. DP&L is responsible for claim costs below certain coverage thresholds of MVIC for the insurance coverage noted above. In addition, DP&L has estimated liabilities for medical, life, and disability reserves for claims costs below certain coverage thresholds of third-party providers. We record these additional insurance and claims costs of approximately $15.6 million and $18.8 million at December 31, 2014 and 2013, respectively, within Other current liabilities and Other deferred credits on the balance sheets. The estimated liabilities for workers’ compensation, medical, life and disability costs at DP&L are actuarially determined using certain assumptions. There is uncertainty associated with these loss estimates and actual results may differ from the estimates. Modification of these loss estimates based on experience and changed circumstances is reflected in the period in which the estimate is re-evaluated | |||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards | ||||||||||||
Discontinued Operations | |||||||||||||
The FASB recently issued ASU 2014-08 “Presentation of Financial Statements” (Topic 205) and “Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” effective for annual and interim periods beginning after December 15, 2014. ASU 2014-08 updates the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. In addition, an entity is required to expand disclosures for discontinued operations by providing more information about the assets, liabilities, revenues and expenses of discontinued operations both on the face of the financial statements and in the Notes. For the disposal of an individually significant component of an entity that does not qualify for discontinued operations reporting, an entity is required to disclose the pretax profit or loss of the component in the Notes. Our early adoption of ASU No. 2014-008 in the third quarter of 2014 did not have any impact on our overall results of operations, financial position or cash flows. | |||||||||||||
Recently Issued Accounting Standards | |||||||||||||
Going Concern | |||||||||||||
The FASB recently issued ASU 2014-15 “Presentation of Financial Statements – Going Concern (Subtopic 205-40: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern)” effective for annual and interim periods ending after December 15, 2016. ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. There are required disclosures if substantial doubt is identified including documentation of: principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans), management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern. This ASU is not expected to have any impact on our overall results of operations, financial position or cash flows. | |||||||||||||
Revenue from Contracts with Customers | |||||||||||||
The FASB recently issued ASU 2014-09 “Revenue from Contracts with Customers” (Topic 606) effective for annual and interim periods beginning after December 15, 2016; with retrospective application. The core principle of the ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Because the guidance in this update is principles-based, it can be applied to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. We have not yet determined the extent, if any, to which our overall results of operations, financial position or cash flows may be affected by the implementation of this ASU. | |||||||||||||
Related Party Transactions | Pension and Postretirement Benefits | ||||||||||||
We account for and disclose pension and postemployment benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postemployment plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost, and funding requirements of the plans. | |||||||||||||
Related Party Transactions | |||||||||||||
In December 2013, an agreement was signed, effective January 1, 2014, whereby the Service Company began providing services including accounting, legal, human resources, information technology and other corporate services on behalf of companies that are part of the U.S. SBU, including, among other companies, DPL and DP&L. The Service Company allocates the costs for these services based on cost drivers designed to result in fair and equitable allocations. This includes ensuring that the regulated utilities served, including DP&L, are not subsidizing costs incurred for the benefit of non-regulated businesses. | |||||||||||||
The following table provides a summary of these transactions: | |||||||||||||
For the year ended | |||||||||||||
December 31, | |||||||||||||
$ in millions | 2014 | 2013 | |||||||||||
Transactions with the Service Company | |||||||||||||
Charges for services provided | $ | 35.8 | $ | - | |||||||||
Charges to the Service Company | $ | 0.1 | $ | - | |||||||||
Transactions with the Service Company: | At December 31, 2014 | At December 31, 2013 | |||||||||||
Net payable to the Service Company | $ | -4.7 | $ | - | |||||||||
DP&L [Member] | |||||||||||||
Description of Business | Description of Business | ||||||||||||
DP&L is a public utility incorporated in 1911 under the laws of Ohio. Beginning in 2001, Ohio law gave Ohio consumers the right to choose the electric generation supplier from whom they purchase retail generation service, however distribution and transmission retail service are still regulated. DP&L has the exclusive right to provide such service to its more than 516,000 customers located in West Central Ohio. Additionally, DP&L procures and provides retail SSO electric service to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio and generates electricity at five coal-fired power stations. Beginning in 2014, DP&L no longer supplies 100% of the generation for SSO customers and by January 2016, SSO will be 100% competitively bid. Principal industries located in DP&L’s service territory include automotive, food processing, paper, plastic, manufacturing and defense. DP&L's sales reflect the general economic conditions, seasonal weather patterns of the area and the market price of electricity. DP&L sells any excess energy and capacity into the wholesale market. DP&L also sells electricity to DPLER, an affiliate, to satisfy the electric requirements of its retail customers. | |||||||||||||
In accordance with the ESP Order, on December 30, 2013, DP&L filed an application with the PUCO stating its plan to transfer or sell its generation assets. Comments and reply comments were filed. DP&L amended its application on February 25, 2014 and again on May 23, 2014. Additional comments and reply comments were filed. On July 14, 2014, DP&L announced its decision to retain DP&L’s generation assets. On September 17, 2014 the PUCO ordered that DP&L’s application as amended and updated was approved. DP&L is required to sell or transfer its generation assets by January 1, 2017 and continues to look at multiple options to effectuate the separation including transfer into a new unregulated affiliate of DPL or through a sale. | |||||||||||||
On November 28, 2011, DP&L’s parent company DPL was acquired by AES in the Merger and DPL became a wholly-owned subsidiary of AES. Following the Merger of DPL and Dolphin Subsidiary II, Inc., DPL became an indirectly wholly-owned subsidiary of AES. | |||||||||||||
DP&L’s electric transmission and distribution businesses are subject to rate regulation by federal and state regulators while its generation business is deemed competitive under Ohio law. Accordingly, DP&L applies the accounting standards for regulated operations to its electric transmission and distribution businesses and records regulatory assets when incurred costs are expected to be recovered in future customer rates, and regulatory liabilities when current cost recoveries in customer rates relate to expected future costs. | |||||||||||||
DP&L employed 1,130 people as of December 31, 2014. Approximately 64% of all employees are under a collective bargaining agreement which expires on October 31, 2017. | |||||||||||||
Financial Statement Presentation | Financial Statement Presentation | ||||||||||||
DP&L does not have any subsidiaries. DP&L has undivided ownership interests in five electric generating facilities and numerous transmission facilities. These undivided interests in jointly-owned facilities are accounted for on a pro rata basis in DP&L’s Financial Statements. | |||||||||||||
Certain immaterial amounts from prior periods have been reclassified to conform to the current period presentation. | |||||||||||||
The preparation of financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the revenues and expenses of the periods reported. Actual results could differ from these estimates. Significant items subject to such estimates and judgments include: the carrying value of Property, plant and equipment; unbilled revenues; the valuation of derivative instruments; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; Regulatory assets and liabilities; reserves recorded for income tax exposures; litigation; contingencies; the valuation of AROs; and assets and liabilities related to employee benefits. | |||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||
Revenues are recognized from retail and wholesale electricity sales and electricity transmission and distribution delivery services. We consider revenue realized, or realizable, and earned when persuasive evidence of an arrangement exists, the products or services have been provided to the customer, the sales price is fixed or determinable, and collection is reasonably assured. Energy sales to customers are based on the reading of their meters that occurs on a systematic basis throughout the month. We recognize the revenues on our statements of results of operations using an accrual method for retail and other energy sales that have not yet been billed, but where electricity has been consumed. This is termed “unbilled revenues” and is a widely recognized and accepted practice for utilities. At the end of each month, unbilled revenues are determined by the estimation of unbilled energy provided to customers since the date of the last meter reading, estimated line losses, the assignment of unbilled energy provided to customer classes and the average rate per customer class. | |||||||||||||
All of the power produced at the generation stations is sold to an RTO and we in turn purchase it back from the RTO to supply our customers. The power sales and purchases within DP&L’s service territory are reported on a net hourly basis as revenues or purchased power on our statements of results of operations. We record expenses when purchased electricity is received and when expenses are incurred, with the exception of the ineffective portion of certain power purchase contracts that are derivatives and qualify for hedge accounting. We also have certain derivative contracts that do not qualify for hedge accounting, and their unrealized gains or losses are recorded prior to the receipt of electricity. | |||||||||||||
Receivables | |||||||||||||
Allowance for Uncollectible Accounts | |||||||||||||
We establish provisions for uncollectible accounts by using both historical average loss percentages to project future losses and by establishing specific provisions for known credit issues. Amounts are written off when reasonable collections efforts have been exhausted. | |||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | ||||||||||||
We record our ownership share of our undivided interest in jointly-held stations as an asset in property, plant and equipment. Property, plant and equipment are stated at cost. For regulated transmission and distribution property, cost includes direct labor and material, allocable overhead expenses and an allowance for funds used during construction (AFUDC). AFUDC represents the cost of borrowed funds and equity used to finance regulated construction projects. For non-regulated property, cost also includes capitalized interest. Capitalization of AFUDC and interest ceases at either project completion or at the date specified by regulators. AFUDC and capitalized interest was $1.5 million, $1.5 million, and $4.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
For unregulated generation property, cost includes direct labor and material, allocable overhead expenses and interest capitalized during construction using the provisions of GAAP relating to the accounting for capitalized interest. | |||||||||||||
For substantially all depreciable property, when a unit of property is retired, the original cost of that property less any salvage value is charged to Accumulated depreciation and amortization. | |||||||||||||
Property is evaluated for impairment when events or changes in circumstances indicate that its carrying amount may not be recoverable. | |||||||||||||
Repairs and Maintenance | Repairs and Maintenance | ||||||||||||
Costs associated with maintenance activities, primarily station outages, are recognized at the time the work is performed. These costs, which include labor, materials and supplies, and outside services required to maintain equipment and facilities, are capitalized or expensed based on defined units of property. | |||||||||||||
Depreciation Study - Change in Estimate | Depreciation – Changes in Estimates | ||||||||||||
Depreciation expense is calculated using the straight-line method, which allocates the cost of property over its estimated useful life. For DP&L’s generation, transmission and distribution assets, straight-line depreciation is applied monthly on an average composite basis using group rates. | |||||||||||||
During the fourth quarter of 2013, the Company tested the recoverability of long-lived assets at certain generating stations. See Note 13 for more information. Gradual decreases in power prices as well as lower estimates of future capacity prices in conjunction with the DP&L reporting unit of DPL failing step 1 of the annual goodwill impairment test were collectively determined to be an impairment indicator. | |||||||||||||
In the third quarter of 2012, a series of events led DP&L management to conclude that there was impairment in the value of certain generating stations. See Note 13 for more information. | |||||||||||||
For DP&L’s generation, transmission, and distribution assets, straight-line depreciation is applied on an average annual composite basis using group rates that approximated 2.8% in 2014, 4.4% in 2013 and 4.2% in 2012. | |||||||||||||
The following is a summary of DP&L’s Property, plant and equipment with corresponding composite depreciation rates at December 31, 2014 and December 31, 2013: | |||||||||||||
December 31, | |||||||||||||
$ in millions | 2014 | Composite Rate | 2013 | Composite Rate | |||||||||
Regulated: | |||||||||||||
Transmission | $ | 402.4 | 2.30% | $ | 388.3 | 2.30% | |||||||
Distribution | 1,568.0 | 3.50% | 1,528.2 | 3.50% | |||||||||
General | 116.1 | 6.70% | 111.1 | 6.20% | |||||||||
Non-depreciable | 61.6 | N/A | 60.8 | N/A | |||||||||
Total regulated | 2,148.1 | 2,088.4 | |||||||||||
Unregulated: | |||||||||||||
Production / Generation | 2,957.7 | 2.40% | 3,002.1 | 5.20% | |||||||||
Non-depreciable | 14.9 | N/A | 14.8 | N/A | |||||||||
Total unregulated | 2,972.6 | 3,016.9 | |||||||||||
Total property, plant and equipment in service | $ | 5,120.7 | 2.80% | $ | 5,105.3 | 4.40% | |||||||
Asset Retirement Obligations, Policy [Policy Text Block] | AROs | ||||||||||||
We recognize AROs in accordance with GAAP which requires legal obligations associated with the retirement of long-lived assets to be recognized at their fair value at the time those obligations are incurred. Upon initial recognition of a legal liability, costs are capitalized as part of the related long-lived asset and depreciated over the useful life of the related asset. Our legal obligations associated with the retirement of our long-lived assets consisted primarily of river intake and discharge structures, coal unloading facilities, loading docks, ice breakers and ash disposal facilities. Our generation AROs are recorded within other deferred credits on the balance sheets. | |||||||||||||
Estimating the amount and timing of future expenditures of this type requires significant judgment. Management routinely updates these estimates as additional information becomes available. | |||||||||||||
Changes in the Liability for Generation AROs | |||||||||||||
$ in millions | |||||||||||||
Balance at December 31, 2012 | $ | 19.2 | |||||||||||
Calendar 2013 | |||||||||||||
Accretion expense | 1.0 | ||||||||||||
Settlements | -0.3 | ||||||||||||
Balance at December 31, 2013 | 19.9 | ||||||||||||
Calendar 2014 | |||||||||||||
Additions | 3.6 | ||||||||||||
Accretion expense | 1.1 | ||||||||||||
Settlements | -1.7 | ||||||||||||
Balance at December 31, 2014 | $ | 22.9 | |||||||||||
Asset Removal Costs | |||||||||||||
We continue to record cost of removal for our regulated transmission and distribution assets through our depreciation rates and recover those amounts in rates charged to our customers. There are no known legal AROs associated with these assets. We have recorded $119.3 million and $115.0 million in estimated costs of removal at December 31, 2014 and 2013, respectively, as regulatory liabilities for our transmission and distribution property. These amounts represent the excess of the cumulative removal costs recorded through depreciation rates versus the cumulative removal costs actually incurred. See Note 3 for additional information. | |||||||||||||
Changes in the Liability for Transmission and Distribution Asset Removal Costs | |||||||||||||
$ in millions | |||||||||||||
Balance at December 31, 2012 | $ | 112.1 | |||||||||||
Calendar 2013 | |||||||||||||
Additions | 22.0 | ||||||||||||
Settlements | -19.1 | ||||||||||||
Balance at December 31, 2013 | 115.0 | ||||||||||||
Calendar 2014 | |||||||||||||
Additions | 19.6 | ||||||||||||
Settlements | -15.3 | ||||||||||||
Balance at December 31, 2014 | $ | 119.3 | |||||||||||
Regulatory Accounting | Regulatory Accounting | ||||||||||||
As a regulated utility, we apply the provisions of FASC 980 “Regulated Operations,” which gives recognition to the ratemaking and accounting practices of the PUCO and the FERC. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory assets can also represent performance incentives permitted by the regulator. Regulatory assets have been included as allowable costs for ratemaking purposes, as authorized by the PUCO or established regulatory practices. Regulatory liabilities generally represent obligations to make refunds or future rate reductions to customers for previous over collections or the deferral of revenues collected for costs that DPL expects to incur in the future. | |||||||||||||
The deferral of costs (as regulatory assets) is appropriate only when the future recovery of such costs is probable. In assessing probability, we consider such factors as specific orders from the PUCO or FERC, regulatory precedent and the current regulatory environment. To the extent recovery of costs is no longer deemed probable, related regulatory assets would be required to be expensed in current period earnings. Our regulatory assets and liabilities have been created pursuant to a specific order of the PUCO or FERC or established regulatory practices, such as other utilities under the jurisdiction of the PUCO or FERC being granted recovery of similar costs. It is probable, but not certain, that these regulatory assets will be recoverable, subject to PUCO or FERC approval. Regulatory assets and liabilities are classified as current or non-current based on the term in which recovery is expected. See Note 3 for more information about Regulatory Assets and Liabilities. | |||||||||||||
Inventories | Inventories | ||||||||||||
Inventories are carried at average cost and include coal, limestone, oil and gas used for electric generation, and materials and supplies used for utility operations. | |||||||||||||
Intangibles | Intangibles | ||||||||||||
Intangibles consist of emission allowances and renewable energy credits. Emission allowances are carried on a first-in, first out (FIFO) basis for purchased emission allowances. Net gains or losses on the sale of excess emission allowances, representing the difference between the sales proceeds and the cost of emission allowances, are recorded as a component of our fuel costs and are reflected in Operating income when realized. Part of the gains on emission allowances are used to reduce the overall fuel rider charged to our SSO retail customers. Emission allowances are amortized as they are used in our operations. Renewable energy credits are amortized as they are used or retired. | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
Income taxes are accounted in accordance with FASC 740 which requires an asset and liability approach for financial accounting and reporting of income taxes with tax effects of differences, based on currently enacted income tax rates, between the financial reporting and tax basis of accounting reported as deferred tax assets or liabilities in the balance sheets. Valuation allowances are provided against deferred tax assets unless it is more likely than not that the asset will be realized. | |||||||||||||
Investment tax credits, which have been used to reduce federal income taxes payable, are deferred for financial reporting purposes and are amortized over the useful lives of the property to which they relate. For rate-regulated operations, additional deferred income taxes and offsetting regulatory assets or liabilities are recorded to recognize that income taxes will be recoverable or refundable through future revenues. | |||||||||||||
DPL and its subsidiaries file U.S. federal income tax returns as part of the consolidated U.S. income tax return filed by AES. The consolidated tax liability is allocated to each subsidiary based on the separate return method which is specified in our tax allocation agreement and which provides a consistent, systematic and rational approach. See Note 6 for additional information. | |||||||||||||
Financial Instruments | Financial Instruments | ||||||||||||
We classify our investments in debt and equity financial instruments of publicly traded entities into different categories: available-for-sale and held-to-maturity. Available-for-sale securities are carried at fair value and unrealized gains and losses on those securities, net of deferred income taxes, are presented as a separate component of shareholders’ equity. Other-than-temporary declines in value are recognized currently in earnings. Financial instruments classified as held-to-maturity are carried at amortized cost. The cost basis for public equity security and fixed maturity investments is average cost and amortized cost, respectively. | |||||||||||||
Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities | Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities | ||||||||||||
DP&L collects certain excise taxes levied by state or local governments from its customers. DP&L’s excise taxes are accounted for on a net basis and recorded as a reduction in revenues in the accompanying Statements of Operations in accordance with AES policy. The amounts for the years ended December 31, 2014, 2013 and 2012 were $50.8 million, $50.5 million and $50.5 million, respectively. | |||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents are stated at cost, which approximates fair value. All highly liquid short-term investments with original maturities of three months or less are considered cash equivalents. | |||||||||||||
Restricted Cash | |||||||||||||
Restricted cash includes cash which is restricted as to withdrawal or usage. The nature of the restrictions include restrictions imposed by agreements related to deposits held as collateral. | |||||||||||||
Financial Derivatives | Financial Derivatives | ||||||||||||
All derivatives are recognized as either assets or liabilities in the balance sheets and are measured at fair value. Changes in the fair value are recorded in earnings unless they are designated as a cash flow hedge of a forecasted transaction or qualify for the normal purchases and sales exception. | |||||||||||||
We use forward contracts to reduce our exposure to changes in energy and commodity prices and as a hedge against the risk of changes in cash flows associated with expected electricity purchases. These purchases are used to hedge our full load requirements. We also hold forward sales contracts that hedge against the risk of changes in cash flows associated with power sales during periods of projected generation facility availability. We use cash flow hedge accounting when the hedge or a portion of the hedge is deemed to be highly effective, which results in changes in fair value being recorded within accumulated other comprehensive income, a component of shareholder’s equity. We have elected not to offset net derivative positions in the financial statements. Accordingly, we do not offset such derivative positions against the fair value of amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under master netting agreements. See Note 9 for additional information. | |||||||||||||
Insurance and Claims Costs | Insurance and Claims Costs | ||||||||||||
In addition to insurance obtained from third-party providers, MVIC, a wholly-owned captive subsidiary of DPL, provides insurance coverage solely to us, our subsidiaries and, in some cases, our partners in commonly-owned facilities we operate, for workers’ compensation, general liability, and property damage on an ongoing basis. MVIC maintains an active run-off policy for directors’ and officers’ liability and fiduciary through their expiration in 2017 and may or may not be renewed at that time. DP&L is responsible for claim costs below certain coverage thresholds of MVIC for the insurance coverage noted above. In addition, DP&L has estimated liabilities for medical, life, and disability reserves for claims costs below certain coverage thresholds of third-party providers. We record these additional insurance and claims costs of approximately $15.6 million and $18.8 million at December 31, 2014 and 2013, respectively, within Other current liabilities and Other deferred credits on the balance sheets. The estimated liabilities for MVIC at DPL and the estimated liabilities for workers’ compensation, medical, life and disability costs at DP&L are actuarially determined using certain assumptions. There is uncertainty associated with these loss estimates and actual results may differ from the estimates. Modification of these loss estimates based on experience and changed circumstances is reflected in the period in which the estimate is re-evaluated. | |||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards | ||||||||||||
Discontinued Operations | |||||||||||||
The FASB recently issued ASU 2014-08 “Presentation of Financial Statements” (Topic 205) and “Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” effective for annual and interim periods beginning after December 15, 2014. ASU 2014-08 updates the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. In addition, an entity is required to expand disclosures for discontinued operations by providing more information about the assets, liabilities, revenues and expenses of discontinued operations both on the face of the financial statements and in the Notes. For the disposal of an individually significant component of an entity that does not qualify for discontinued operations reporting, an entity is required to disclose the pretax profit or loss of the component in the Notes. Our early adoption of ASU No. 2014-008 in the third quarter of 2014 did not have any impact on our overall results of operations, financial position or cash flows. | |||||||||||||
Recently Issued Accounting Standards | |||||||||||||
Going Concern | |||||||||||||
The FASB recently issued ASU 2014-15 “Presentation of Financial Statements – Going Concern (Subtopic 205-40: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern)” effective for annual and interim periods ending after December 15, 2016. ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. There are required disclosures if substantial doubt is identified including documentation of: principal conditions or events that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans), management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern. This ASU is not expected to have any impact on our overall results of operations, financial position or cash flows. | |||||||||||||
Revenue from Contracts with Customers | |||||||||||||
The FASB recently issued ASU 2014-09 “Revenue from Contracts with Customers” (Topic 606) effective for annual and interim periods beginning after December 15, 2016; with retrospective application. The core principle of the ASU is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Because the guidance in this update is principles-based, it can be applied to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. We have not yet determined the extent, if any, to which our overall results of operations, financial position or cash flows may be affected by the implementation of this ASU. | |||||||||||||
Related Party Transactions | Pension and Postretirement Benefits | ||||||||||||
We account for and disclose pension and postemployment benefits in accordance with the provisions of GAAP relating to the accounting for pension and other postemployment plans. These GAAP provisions require the use of assumptions, such as the discount rate for liabilities and long-term rate of return on assets, in determining the obligations, annual cost, and funding requirements of the plans. | |||||||||||||
Related Party Transactions | |||||||||||||
In the normal course of business, DP&L enters into transactions with other subsidiaries of DPL. All material intercompany accounts and transactions are eliminated in DPL’s Consolidated Financial Statements. | |||||||||||||
In December 2013, an agreement was signed, effective January 1, 2014, whereby the Service Company began providing services including accounting, legal, human resources, information technology and other corporate services on behalf of companies that are part of the U.S. SBU, including, among other companies, DPL and DP&L. The Service Company allocates the costs for these services based on cost drivers designed to result in fair and equitable allocations. This includes ensuring that the regulated utilities served, including DP&L, are not subsidizing costs incurred for the benefit of non-regulated businesses. | |||||||||||||
The following table provides a summary of these transactions: | |||||||||||||
Years ended December 31, | |||||||||||||
$ in millions | 2014 | 2013 | 2012 | ||||||||||
DP&L revenues: | |||||||||||||
Sales to DPLER (including MC Squared) (a) | $ | 487.1 | $ | 453.9 | $ | 390.8 | |||||||
DP&L Operation & Maintenance Expenses: | |||||||||||||
Premiums paid for insurance services | $ | -2.9 | $ | -2.9 | $ | -2.6 | |||||||
provided by MVIC (b) | |||||||||||||
Expense recoveries for services | $ | 2.2 | $ | 5.2 | $ | 4.0 | |||||||
provided to DPLER (c) | |||||||||||||
DP&L Customer security deposits: | |||||||||||||
Deposits received from DPLER (d) | $ | 20.1 | $ | 19.2 | $ | 20.2 | |||||||
Transactions with the Service Company: | |||||||||||||
Charges for services provided | $ | 30.5 | $ | - | $ | - | |||||||
Charges to the Service Company | $ | 0.1 | $ | - | $ | - | |||||||
Transactions with the Service Company: | At December 31, 2014 | At December 31, 2013 | |||||||||||
Net payable to the Service Company | $ | -4.7 | $ | - | |||||||||
(a)DP&L sells power to DPLER and MC Squared to satisfy the electric requirements of their retail customers. The revenue dollars associated with sales to DPLER and MC Squared are recorded as wholesale revenues in DP&L’s Financial Statements. DP&L started selling physical power to MC Squared during June 2012 and became their sole source of power in September 2012. | |||||||||||||
(b)MVIC, a wholly-owned captive insurance subsidiary of DPL, provides insurance coverage to DP&L and other DPL subsidiaries for workers’ compensation, general liability, property damages and directors’ and officers’ liability. These amounts represent insurance premiums paid by DP&L to MVIC. | |||||||||||||
(c)In the normal course of business DP&L incurs and records expenses on behalf of DPLER. Such expenses include but are not limited to employee-related expenses, accounting, information technology, payroll, legal and other administration expenses. DP&L subsequently charges these expenses to DPLER at DP&L’s cost and credits the expense in which they were initially recorded. | |||||||||||||
(d)DP&L requires credit assurance from the CRES providers serving customers in its service territory because DP&L is the default energy provider should the CRES provider fail to fulfill its obligations to provide electricity. Due to DPL’s credit downgrade, DP&L required cash collateral from DPLER. | |||||||||||||
Master Trust [Member] | |||||||||||||
Financial Instruments | DPL Capital Trust II | ||||||||||||
DPL has a wholly-owned business trust, DPL Capital Trust II (the Trust), formed for the purpose of issuing trust capital securities to third-party investors. Effective in 2003, DPL deconsolidated the Trust upon adoption of the accounting standards related to variable interest entities and currently treats the Trust as a nonconsolidated subsidiary. The Trust holds mandatorily redeemable trust capital securities. The investment in the Trust, which amounts to $0.3 million and $0.4 million at December 31, 2014 and 2013, respectively, is included in Other deferred assets within Other noncurrent assets. DPL also has a note payable to the Trust amounting to $14.9 million at December 31, 2014 and 2013, respectively that was established upon the Trust’s deconsolidation in 2003. See Note 6 for additional information. | |||||||||||||
In addition to the obligations under the note payable mentioned above, DPL also agreed to a security obligation which represents a full and unconditional guarantee of payments to the capital security holders of the Trust. | |||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Property, Plant, and Equipment | |||||||||||||
December 31, | |||||||||||||
$ in millions | 2014 | Composite Rate | 2013 | Composite Rate | |||||||||
Regulated: | |||||||||||||
Transmission | $ | 227.5 | 4.10% | $ | 213.1 | 4.10% | |||||||
Distribution | 1,011.7 | 5.40% | 970.1 | 5.60% | |||||||||
General | 62.5 | 12.40% | 56.8 | 12.10% | |||||||||
Non-depreciable | 61.6 | N/A | 60.8 | N/A | |||||||||
Total regulated | 1,363.3 | 1,300.8 | |||||||||||
Unregulated: | |||||||||||||
Production / Generation | 1,354.9 | 5.40% | 1,340.8 | 6.20% | |||||||||
Other | 21.3 | 8.10% | 15.7 | 8.90% | |||||||||
Non-depreciable | 19.8 | N/A | 19.7 | N/A | |||||||||
Total unregulated | 1,396.0 | 1,376.2 | |||||||||||
Total property, plant and equipment in service | $ | 2,759.3 | 5.30% | $ | 2,677.0 | 5.80% | |||||||
Changes in the Liability for Generation AROs | |||||||||||||
$ in millions | |||||||||||||
Balance at December 31, 2012 | $ | 23.9 | |||||||||||
Calendar 2013 | |||||||||||||
Accretion expense | 0.8 | ||||||||||||
Settlements | -0.3 | ||||||||||||
Balance at December 31, 2013 | 24.4 | ||||||||||||
Calendar 2014 | |||||||||||||
Additions | 3.6 | ||||||||||||
Accretion expense | 0.9 | ||||||||||||
Settlements | -2 | ||||||||||||
Balance at December 31, 2014 | $ | 26.9 | |||||||||||
Changes in the Liability for Transmission and Distribution Asset Removal Costs | |||||||||||||
$ in millions | |||||||||||||
Balance at December 31, 2012 | $ | 112.1 | |||||||||||
Calendar 2013 | |||||||||||||
Additions | 22.0 | ||||||||||||
Settlements | -19.1 | ||||||||||||
Balance at December 31, 2013 | 115.0 | ||||||||||||
Calendar 2014 | |||||||||||||
Additions | 19.6 | ||||||||||||
Settlements | -15.3 | ||||||||||||
Balance at December 31, 2014 | $ | 119.3 | |||||||||||
Schedule of Related Party Transactions [Table Text Block] | |||||||||||||
For the year ended | |||||||||||||
December 31, | |||||||||||||
$ in millions | 2014 | 2013 | |||||||||||
Transactions with the Service Company | |||||||||||||
Charges for services provided | $ | 35.8 | $ | - | |||||||||
Charges to the Service Company | $ | 0.1 | $ | - | |||||||||
Transactions with the Service Company: | At December 31, 2014 | At December 31, 2013 | |||||||||||
Net payable to the Service Company | $ | -4.7 | $ | - | |||||||||
DP&L [Member] | |||||||||||||
Summary of Property, Plant, and Equipment | |||||||||||||
December 31, | |||||||||||||
$ in millions | 2014 | Composite Rate | 2013 | Composite Rate | |||||||||
Regulated: | |||||||||||||
Transmission | $ | 402.4 | 2.30% | $ | 388.3 | 2.30% | |||||||
Distribution | 1,568.0 | 3.50% | 1,528.2 | 3.50% | |||||||||
General | 116.1 | 6.70% | 111.1 | 6.20% | |||||||||
Non-depreciable | 61.6 | N/A | 60.8 | N/A | |||||||||
Total regulated | 2,148.1 | 2,088.4 | |||||||||||
Unregulated: | |||||||||||||
Production / Generation | 2,957.7 | 2.40% | 3,002.1 | 5.20% | |||||||||
Non-depreciable | 14.9 | N/A | 14.8 | N/A | |||||||||
Total unregulated | 2,972.6 | 3,016.9 | |||||||||||
Total property, plant and equipment in service | $ | 5,120.7 | 2.80% | $ | 5,105.3 | 4.40% | |||||||
Changes in the Liability for Generation AROs | |||||||||||||
$ in millions | |||||||||||||
Balance at December 31, 2012 | $ | 19.2 | |||||||||||
Calendar 2013 | |||||||||||||
Accretion expense | 1.0 | ||||||||||||
Settlements | -0.3 | ||||||||||||
Balance at December 31, 2013 | 19.9 | ||||||||||||
Calendar 2014 | |||||||||||||
Additions | 3.6 | ||||||||||||
Accretion expense | 1.1 | ||||||||||||
Settlements | -1.7 | ||||||||||||
Balance at December 31, 2014 | $ | 22.9 | |||||||||||
Changes in the Liability for Transmission and Distribution Asset Removal Costs | |||||||||||||
$ in millions | |||||||||||||
Balance at December 31, 2012 | $ | 112.1 | |||||||||||
Calendar 2013 | |||||||||||||
Additions | 22.0 | ||||||||||||
Settlements | -19.1 | ||||||||||||
Balance at December 31, 2013 | 115.0 | ||||||||||||
Calendar 2014 | |||||||||||||
Additions | 19.6 | ||||||||||||
Settlements | -15.3 | ||||||||||||
Balance at December 31, 2014 | $ | 119.3 | |||||||||||
Schedule of Related Party Transactions | |||||||||||||
Years ended December 31, | |||||||||||||
$ in millions | 2014 | 2013 | 2012 | ||||||||||
DP&L revenues: | |||||||||||||
Sales to DPLER (including MC Squared) (a) | $ | 487.1 | $ | 453.9 | $ | 390.8 | |||||||
DP&L Operation & Maintenance Expenses: | |||||||||||||
Premiums paid for insurance services | $ | -2.9 | $ | -2.9 | $ | -2.6 | |||||||
provided by MVIC (b) | |||||||||||||
Expense recoveries for services | $ | 2.2 | $ | 5.2 | $ | 4.0 | |||||||
provided to DPLER (c) | |||||||||||||
DP&L Customer security deposits: | |||||||||||||
Deposits received from DPLER (d) | $ | 20.1 | $ | 19.2 | $ | 20.2 | |||||||
Transactions with the Service Company: | |||||||||||||
Charges for services provided | $ | 30.5 | $ | - | $ | - | |||||||
Charges to the Service Company | $ | 0.1 | $ | - | $ | - | |||||||
Transactions with the Service Company: | At December 31, 2014 | At December 31, 2013 | |||||||||||
Net payable to the Service Company | $ | -4.7 | $ | - | |||||||||
Supplemental_Financial_Informa1
Supplemental Financial Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule of Supplemental Financial Information | |||||||||||||
December 31, | |||||||||||||
$ in millions | 2014 | 2013 | |||||||||||
Accounts receivable, net | |||||||||||||
Unbilled revenue | $ | 79.2 | $ | 77.8 | |||||||||
Customer receivables | 104.8 | 102.7 | |||||||||||
Amounts due from partners in jointly-owned stations | 14.2 | 15.8 | |||||||||||
Other | 4.0 | 8.2 | |||||||||||
Provisions for uncollectible accounts | -1.3 | -1.2 | |||||||||||
Total accounts receivable, net | $ | 200.9 | $ | 203.3 | |||||||||
Inventories | |||||||||||||
Fuel and limestone | $ | 65.3 | $ | 42.7 | |||||||||
Plant materials and supplies | 33.5 | 38.2 | |||||||||||
Other | 1.4 | 1.8 | |||||||||||
Total inventories, at average cost | $ | 100.2 | $ | 82.7 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | |||||||||||||
Details about Accumulated Other Comprehensive Income / (Loss) Components | Affected line item in the Consolidated Statements of Operations | Years ended December 31, | |||||||||||
$ in millions | 2014 | 2013 | 2012 | ||||||||||
Gains and losses on Available-for-sale securities activity (Note 9): | |||||||||||||
Other income / (deductions) | $ | 0.4 | $ | 2.1 | $ | -0.1 | |||||||
Total before income taxes | 0.4 | 2.1 | -0.1 | ||||||||||
Tax expense | -0.2 | -0.7 | - | ||||||||||
Net of income taxes | 0.2 | 1.4 | -0.1 | ||||||||||
Gains and losses on cash flow hedges (Note 10): | |||||||||||||
Interest Expense | -1.3 | - | 0.2 | ||||||||||
Revenue | 28.4 | 2.2 | -0.1 | ||||||||||
Purchased power | -0.7 | 3.5 | -1.1 | ||||||||||
Total before income taxes | 26.4 | 5.7 | -1 | ||||||||||
Tax expense | -9.5 | -2.3 | 0.5 | ||||||||||
Net of income taxes | 16.9 | 3.4 | -0.5 | ||||||||||
Amortization of defined benefit pension items (Note 8): | |||||||||||||
Tax benefit | - | 0.3 | - | ||||||||||
Net of income taxes | - | 0.3 | - | ||||||||||
Total reclassifications for the period, net of income taxes | $ | 17.1 | $ | 5.1 | $ | -0.6 | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | |||||||||||||
$ in millions | Gains / (losses) on available-for-sale securities | Gains / (losses) on cash flow hedges | Change in unfunded pension obligation | Total | |||||||||
Balance January 1, 2013 | $ | 0.4 | $ | -2.5 | $ | -1.8 | $ | -3.9 | |||||
Other comprehensive income / (loss) before reclassifications | -1.2 | 19.7 | 4.9 | 23.4 | |||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | 1.4 | 3.4 | 0.3 | 5.1 | |||||||||
Net current period other comprehensive income | 0.2 | 23.1 | 5.2 | 28.5 | |||||||||
Balance December 31, 2013 | 0.6 | 20.6 | 3.4 | 24.6 | |||||||||
Other comprehensive loss before reclassifications | -0.3 | -19 | -14.9 | -34.2 | |||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | 0.2 | 16.9 | - | 17.1 | |||||||||
Net current period other comprehensive loss | -0.1 | -2.1 | -14.9 | -17.1 | |||||||||
Balance December 31, 2014 | $ | 0.5 | $ | 18.5 | $ | -11.5 | $ | 7.5 | |||||
DP&L [Member] | |||||||||||||
Schedule of Supplemental Financial Information | |||||||||||||
December 31, | |||||||||||||
$ in millions | 2014 | 2013 | |||||||||||
Accounts receivable, net | |||||||||||||
Unbilled revenue | $ | 49.0 | $ | 47.2 | |||||||||
Customer receivables | 68.7 | 58.2 | |||||||||||
Amounts due from partners in jointly-owned stations | 14.2 | 15.8 | |||||||||||
Other | 21.7 | 27.2 | |||||||||||
Provisions for uncollectible accounts | -0.9 | -0.9 | |||||||||||
Total accounts receivable, net | $ | 152.7 | $ | 147.5 | |||||||||
Inventories | |||||||||||||
Fuel and limestone | $ | 65.3 | $ | 42.9 | |||||||||
Plant materials and supplies | 32.3 | 37.0 | |||||||||||
Other | 1.4 | 1.8 | |||||||||||
Total inventories, at average cost | $ | 99.0 | $ | 81.7 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | |||||||||||||
Details about Accumulated Other Comprehensive Income / (Loss) Components | Affected line item in the Statements of Operations | Years ended December 31, | |||||||||||
$ in millions | 2014 | 2013 | 2012 | ||||||||||
Gains and losses on Available-for-sale securities activity (Note 8): | |||||||||||||
Other income / (deductions) | $ | 0.4 | $ | 2.1 | $ | -0.1 | |||||||
Total before income taxes | 0.4 | 2.1 | -0.1 | ||||||||||
Tax expense | -0.2 | -0.7 | - | ||||||||||
Net of income taxes | 0.2 | 1.4 | -0.1 | ||||||||||
Gains and losses on cash flow hedges (Note 9): | |||||||||||||
Interest expense | -1.1 | -2.1 | -2.5 | ||||||||||
Revenue | 28.4 | 2.2 | 0.3 | ||||||||||
Purchased power | -0.4 | 5.0 | -1.6 | ||||||||||
Total before income taxes | 26.9 | 5.1 | -3.8 | ||||||||||
Tax expense | -11.5 | -2.5 | 0.4 | ||||||||||
Net of income taxes | 15.4 | 2.6 | -3.4 | ||||||||||
Amortization of defined benefit pension items (Note 7): | |||||||||||||
Reclassification to Other income / (deductions) | - | 5.7 | 4.1 | ||||||||||
Tax benefit | - | -1.9 | -1.4 | ||||||||||
Net of income taxes | - | 3.8 | 2.7 | ||||||||||
Total reclassifications for the period, net of income taxes | $ | 15.6 | $ | 7.8 | $ | -0.8 | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | |||||||||||||
$ in millions | Gains / (losses) on available-for-sale securities | Gains / (losses) on cash flow hedges | Change in unfunded pension obligation | Total | |||||||||
Balance January 1, 2013 | $ | 1.0 | $ | 2.6 | $ | -42.3 | $ | -38.7 | |||||
Other comprehensive income / (loss) before reclassifications | -1.6 | 1.0 | 4.8 | 4.2 | |||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | 1.4 | 2.6 | 3.8 | 7.8 | |||||||||
Net current period other comprehensive income / (loss) | -0.2 | 3.6 | 8.6 | 12.0 | |||||||||
Balance December 31, 2013 | 0.8 | 6.2 | -33.7 | -26.7 | |||||||||
Other comprehensive loss before reclassifications | -0.3 | -18.8 | -12.1 | -31.2 | |||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | 0.2 | 15.4 | - | 15.6 | |||||||||
Net current period other comprehensive loss | -0.1 | -3.4 | -12.1 | -15.6 | |||||||||
Balance December 31, 2014 | $ | 0.7 | $ | 2.8 | $ | -45.8 | $ | -42.3 | |||||
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Regulatory Assets and Liabilities | |||||||||||||
December 31, | |||||||||||||
$ in millions | Type of Recovery (a) | Amortization Through | 2014 | 2013 | |||||||||
Regulatory assets, current: | |||||||||||||
Deferred storm costs | A | 2015 | $ | 22.3 | $ | - | |||||||
Fuel and purchased power recovery costs | B | 2015 | 16.3 | 6.3 | |||||||||
Economic development costs | B | 2015 | 2.1 | 7.7 | |||||||||
Energy efficiency program | B | 2015 | 1.8 | - | |||||||||
Transmission costs | B | 2015 | - | 2.6 | |||||||||
Other miscellaneous | B | 2015 | 1.7 | 4.2 | |||||||||
Total regulatory assets, current | $ | 44.2 | $ | 20.8 | |||||||||
Regulatory assets, non-current: | |||||||||||||
Pension benefits | A | Ongoing | $ | 99.6 | $ | 77.1 | |||||||
Deferred recoverable income taxes | A/C | Ongoing | 43.1 | 32.4 | |||||||||
Unamortized loss on reacquired debt | A | Various | 9.9 | 10.9 | |||||||||
CCEM smart grid and advanced metering infrastructure costs | D | Undetermined | 6.6 | 6.6 | |||||||||
Retail settlement system costs | D | Undetermined | 3.1 | 3.1 | |||||||||
Consumer education campaign | D | Undetermined | 3.0 | 3.0 | |||||||||
Deferred storm costs | D | 2015 | - | 25.6 | |||||||||
Other miscellaneous | D | Undetermined | 2.2 | 1.0 | |||||||||
Total regulatory assets, non-current | $ | 167.5 | $ | 159.7 | |||||||||
Regulatory liabilities, current: | |||||||||||||
Transmission costs | $ | 2.9 | $ | - | |||||||||
Other miscellaneous | 1.5 | - | |||||||||||
Total regulatory liabilities, current | $ | 4.4 | $ | - | |||||||||
Regulatory liabilities, non-current: | |||||||||||||
Estimated costs of removal - regulated property | $ | 119.3 | $ | 115.0 | |||||||||
Postretirement benefits | 4.8 | 5.6 | |||||||||||
Other miscellaneous | - | 0.5 | |||||||||||
Total regulatory liabilities, non-current | $ | 124.1 | $ | 121.1 | |||||||||
DP&L [Member] | |||||||||||||
Regulatory Assets and Liabilities | |||||||||||||
December 31, | |||||||||||||
$ in millions | Type of Recovery (a) | Amortization Through | 2014 | 2013 | |||||||||
Regulatory assets, current: | |||||||||||||
Deferred storm costs | A | 2015 | $ | 22.3 | $ | - | |||||||
Fuel and purchased power recovery costs | B | 2015 | 16.3 | 6.3 | |||||||||
Economic development costs | B | 2015 | 2.1 | 7.7 | |||||||||
Energy efficiency program | B | 2015 | 1.8 | - | |||||||||
Transmission costs | B | 2015 | - | 2.6 | |||||||||
Other miscellaneous | B | 2015 | 1.7 | 4.2 | |||||||||
Total regulatory assets, current | $ | 44.2 | $ | 20.8 | |||||||||
Regulatory assets, non-current: | |||||||||||||
Pension benefits | A | Ongoing | $ | 99.6 | $ | 77.1 | |||||||
Deferred recoverable income taxes | A/C | Ongoing | 43.1 | 32.4 | |||||||||
Unamortized loss on reacquired debt | A | Various | 9.9 | 10.9 | |||||||||
CCEM smart grid and advanced metering infrastructure costs | D | Undetermined | 6.6 | 6.6 | |||||||||
Retail settlement system costs | D | Undetermined | 3.1 | 3.1 | |||||||||
Consumer education campaign | D | Undetermined | 3.0 | 3.0 | |||||||||
Deferred storm costs | D | 2015 | - | 25.6 | |||||||||
Other miscellaneous | D | Undetermined | 2.2 | 1.0 | |||||||||
Total regulatory assets, non-current | $ | 167.5 | $ | 159.7 | |||||||||
Regulatory liabilities, current: | |||||||||||||
Transmission costs | $ | 2.9 | $ | - | |||||||||
Other miscellaneous | 1.5 | - | |||||||||||
Total regulatory liabilities, current | $ | 4.4 | $ | - | |||||||||
Regulatory liabilities, non-current: | |||||||||||||
Estimated costs of removal - regulated property | $ | 119.3 | $ | 115.0 | |||||||||
Postretirement benefits | 4.8 | 5.6 | |||||||||||
Other miscellaneous | - | 0.5 | |||||||||||
Total regulatory liabilities, non-current | $ | 124.1 | $ | 121.1 | |||||||||
Ownership_of_Coalfired_Facilit1
Ownership of Coal-fired Facilities (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Ownership Interests | ||||||||||||||||||
DP&L Share | DPL Carrying Value | |||||||||||||||||
Ownership | Summer Production Capacity | Gross Plant | Accumulated | Construction | SCR and FGD | |||||||||||||
(%) | (MW) | In Service | Depreciation | Work in | Equipment | |||||||||||||
($ in millions) | ($ in millions) | Process | Installed | |||||||||||||||
($ in millions) | and in | |||||||||||||||||
Service | ||||||||||||||||||
(Yes/No) | ||||||||||||||||||
Jointly-owned production units | ||||||||||||||||||
Conesville - Unit 4 | 16.5 | 129 | $ | 24 | $ | 2 | $ | 1 | Yes | |||||||||
Killen - Unit 2 | 67.0 | 402 | 308 | 19 | 2 | Yes | ||||||||||||
Miami Fort - Units 7 and 8 | 36.0 | 368 | 214 | 23 | 2 | Yes | ||||||||||||
Stuart - Units 1 through 4 | 35.0 | 808 | 219 | 16 | 14 | Yes | ||||||||||||
Zimmer - Unit 1 | 28.1 | 371 | 182 | 35 | 6 | Yes | ||||||||||||
Transmission (at varying percentages) | 42 | 6 | - | |||||||||||||||
Total | 2,078 | $ | 989 | $ | 101 | $ | 25 | |||||||||||
DP&L [Member] | ||||||||||||||||||
Ownership Interests | ||||||||||||||||||
DP&L Share | DP&L Carrying Value | |||||||||||||||||
Ownership | Summer Production Capacity | Gross Plant | Accumulated | Construction | SCR and FGD | |||||||||||||
% | (MW) | In Service | Depreciation | Work in | Equipment | |||||||||||||
($ in millions) | ($ in millions) | Process | Installed | |||||||||||||||
($ in millions) | and in | |||||||||||||||||
Service | ||||||||||||||||||
(Yes/No) | ||||||||||||||||||
Jointly-owned production units | ||||||||||||||||||
Conesville - Unit 4 | 16.5 | 129 | $ | 23 | $ | 4 | $ | 1 | Yes | |||||||||
Killen - Unit 2 | 67.0 | 402 | 624 | 314 | 2 | Yes | ||||||||||||
Miami Fort - Units 7 and 8 | 36.0 | 368 | 361 | 162 | 2 | Yes | ||||||||||||
Stuart - Units 1 through 4 | 35.0 | 808 | 756 | 323 | 14 | Yes | ||||||||||||
Zimmer - Unit 1 | 28.1 | 371 | 1,101 | 675 | 6 | Yes | ||||||||||||
Transmission (at varying percentages) | 98 | 62 | - | |||||||||||||||
Total | 2,078 | $ | 2,963 | $ | 1,540 | $ | 25 | |||||||||||
Recovered_Sheet1
Goodwill And Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||
Intangible assets | |||||||||||||||||||
$ in millions | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||
Balance | Amortization | Balance | Balance | Amortization | Balance | ||||||||||||||
Subject to Amortization | |||||||||||||||||||
Customer Contracts (a) | $ | 27.0 | $ | -27 | $ | - | $ | 27.0 | $ | -25.8 | $ | k | |||||||
Customer Relationships (b) | 31.8 | -6.9 | 24.9 | 31.8 | -4.6 | 27.2 | |||||||||||||
Other (c) | 7.7 | -1.3 | 6.4 | 8.4 | -0.1 | 8.3 | |||||||||||||
66.5 | -35.2 | 31.3 | 67.2 | -30.5 | 35.5 | ||||||||||||||
Not subject to Amortization | |||||||||||||||||||
Trademark/Trade name (d) | 6.1 | - | 6.1 | 6.1 | - | 6.1 | |||||||||||||
Total intangibles | $ | 72.6 | $ | -35.2 | $ | 37.4 | $ | 73.3 | $ | -30.5 | $ | 41.6 | |||||||
Intangible assets acquired during period | |||||||||||||||||||
$ in millions | Amount | Subject to | Weighted | Amortization | |||||||||||||||
Amortization/ | Average | Method | |||||||||||||||||
Indefinite-lived | Amortization | ||||||||||||||||||
Period | |||||||||||||||||||
(years) | |||||||||||||||||||
Renewable Energy Certificates | $ | 7.7 | Subject to amortization | Various | As Utilized | ||||||||||||||
Estimated Amortization Expense | |||||||||||||||||||
Estimated amortization expense | |||||||||||||||||||
Years ending December 31, | |||||||||||||||||||
$ in millions | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||
Customer relationships | $ | 3.8 | $ | 3.1 | $ | 2.7 | $ | 2.3 | $ | 2.1 | |||||||||
Renewable Energy Certificates | 4.2 | 3.5 | - | - | - | ||||||||||||||
$ | 8.0 | $ | 6.6 | $ | 2.7 | $ | 2.3 | $ | 2.1 | ||||||||||
Changes in Goodwill | |||||||||||||||||||
$ in millions | DP&L Reporting Unit | DPLER Reporting Unit | Total | ||||||||||||||||
Balance at December 31, 2012 | |||||||||||||||||||
Goodwill | $ | 2,440.5 | $ | 135.8 | $ | 2,576.3 | |||||||||||||
Accumulated impairment losses | -1,817.20 | - | -1,817.20 | ||||||||||||||||
Net balance at December 31, 2012 | $ | 623.3 | $ | 135.8 | $ | 759.1 | |||||||||||||
Goodwill impairments during 2013 | $ | -306.3 | $ | - | $ | -306.3 | |||||||||||||
Balance at December 31, 2013 | |||||||||||||||||||
Goodwill | $ | 2,440.5 | $ | 135.8 | $ | 2,576.3 | |||||||||||||
Accumulated impairment losses | -2,123.50 | - | -2,123.50 | ||||||||||||||||
Net balance at December 31, 2013 | $ | 317.0 | $ | 135.8 | $ | 452.8 | |||||||||||||
Goodwill impairments during 2014 | $ | - | $ | -135.8 | $ | -135.8 | |||||||||||||
Balance at December 31, 2014 | |||||||||||||||||||
Goodwill | $ | 2,440.5 | $ | 135.8 | $ | 2,576.3 | |||||||||||||
Accumulated impairment losses | -2,123.50 | -135.8 | -2,259.30 | ||||||||||||||||
Net balance at December 31, 2014 | $ | 317.0 | $ | - | $ | 317.0 | |||||||||||||
Debt_Obligations_Tables
Debt Obligations (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Long-term Debt | |||||||
Long-term debt | |||||||
$ in millions | 31-Dec-14 | 31-Dec-13 | |||||
First mortgage bonds due in September 2016 - 1.875% | $ | 445.0 | $ | 445.0 | |||
Pollution control series due in January 2028 - 4.7% | 35.3 | 35.3 | |||||
Pollution control series due in January 2034 - 4.8% | 179.1 | 179.1 | |||||
Pollution control series due in September 2036 - 4.8% | 100.0 | 100.0 | |||||
Pollution control series due in November 2040 - variable rates: 0.04% - 0.15% and 0.04% - 0.26% (a) | 100.0 | 100.0 | |||||
U.S. Government note due in February 2061 - 4.2% | 18.1 | 18.3 | |||||
Unamortized debt discount | -2.8 | -3.1 | |||||
Total long-term debt at subsidiary | 874.7 | 874.6 | |||||
Bank term loan due in May 2018 - variable rates: 2.41% - 2.42% (a) | 140.0 | 180.0 | |||||
Senior unsecured bonds due in October 2016 - 6.50% | 130.0 | 430.0 | |||||
Senior unsecured bonds due in October 2019 - 6.75% | 200.0 | - | |||||
Senior unsecured bonds due in October 2021 - 7.25% | 780.0 | 780.0 | |||||
Note to DPL Capital Trust II due in September 2031 - 8.125% | 15.6 | 20.6 | |||||
Unamortized debt discount | -0.7 | -1 | |||||
Total long-term debt | $ | 2,139.6 | $ | 2,284.2 | |||
(a) - range of interest rates for the twelve months ended December 31, 2014 and December 31, 2013, respectively | |||||||
Current Portion - Long-term Debt | |||||||
Current portion - long-term debt | |||||||
$ in millions | 31-Dec-14 | 31-Dec-13 | |||||
Bank term loan due in May 2018 - variable rates: 2.41% - 2.42% (a) | $ | 20.0 | $ | 10.0 | |||
U.S. Government note due in February 2061 - 4.2% | 0.1 | 0.1 | |||||
Capital lease obligations | - | 0.1 | |||||
Total current portion - long-term debt | $ | 20.1 | $ | 10.2 | |||
(a) - range of interest rates for the twelve months ended December 31, 2014 and December 31, 2013, respectively | |||||||
Long-term Debt Maturities | |||||||
Due within the twelve months ending December 31, | |||||||
$ in millions | |||||||
2015 | $ | 20.1 | |||||
2016 | 615.1 | ||||||
2017 | 40.1 | ||||||
2018 | 60.1 | ||||||
2019 | 200.1 | ||||||
Thereafter | 1,227.7 | ||||||
2,163.2 | |||||||
Unamortized discounts and premiums, net | -3.5 | ||||||
Total long-term debt | $ | 2,159.7 | |||||
DP&L [Member] | |||||||
Long-term Debt | |||||||
Long-term debt | |||||||
$ in millions | 31-Dec-14 | 31-Dec-13 | |||||
First mortgage bonds due in September 2016 - 1.875% | $ | 445.0 | $ | 445.0 | |||
Pollution control series due in January 2028 - 4.7% | 35.3 | 35.3 | |||||
Pollution control series due in January 2034 - 4.8% | 179.1 | 179.1 | |||||
Pollution control series due in September 2036 - 4.8% | 100.0 | 100.0 | |||||
Pollution control series due in November 2040 - variable rates: 0.04% - 0.15% and 0.04% - 0.26% (a) | 100.0 | 100.0 | |||||
U.S. Government note due in February 2061 - 4.2% | 18.1 | 18.2 | |||||
Capital lease obligations | - | - | |||||
Unamortized debt discount | -0.5 | -0.7 | |||||
Total long-term debt | $ | 877.0 | $ | 876.9 | |||
(a) - range of interest rates for the twelve months ended December 31, 2014 and December 31, 2013, respectively | |||||||
Current Portion - Long-term Debt | |||||||
Current portion - long-term debt | |||||||
$ in millions | 31-Dec-14 | 31-Dec-13 | |||||
U.S. Government note due in February 2061 - 4.2% | $ | 0.1 | $ | 0.1 | |||
Capital lease obligations | - | 0.1 | |||||
Total current portion - long-term debt | $ | 0.1 | $ | 0.2 | |||
(a) - range of interest rates for the twelve months ended December 31, 2014 and December 31, 2013, respectively | |||||||
Long-term Debt Maturities | |||||||
Due within the twelve months ending December 31, | |||||||
$ in millions | |||||||
2015 | $ | 0.1 | |||||
2016 | 445.1 | ||||||
2017 | 0.1 | ||||||
2018 | 0.1 | ||||||
2019 | 0.1 | ||||||
Thereafter | 432.1 | ||||||
877.6 | |||||||
Unamortized discount | -0.5 | ||||||
Total long-term debt | $ | 877.1 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Components of Income Tax Expense | ||||||||||
Years ended December 31, | ||||||||||
$ in millions | 2014 | 2013 | 2012 | |||||||
Computation of tax expense | ||||||||||
Federal income tax expense / (benefit)(a) | $ | -19.8 | $ | -69.9 | $ | -588.7 | ||||
Increases (decreases) in tax resulting from: | ||||||||||
State income taxes, net of federal effect | 1.2 | 1.7 | 3.5 | |||||||
Depreciation of AFUDC - Equity | -3.4 | -3.2 | -2.4 | |||||||
Investment tax credit amortized | -0.5 | -0.5 | -0.3 | |||||||
Section 199 - domestic production deduction | -1.1 | -4.1 | -2.1 | |||||||
Non-deductible merger-related compensation | - | - | 0.6 | |||||||
Non-deductible goodwill impairment | 47.5 | 107.2 | 636.0 | |||||||
Accrual (settlement) for open tax years | -6.6 | -8.8 | -0.1 | |||||||
Other, net (b) | 0.7 | -0.1 | 1.2 | |||||||
Total tax expense | $ | 18.0 | $ | 22.3 | $ | 47.7 | ||||
Components of tax expense | ||||||||||
Federal - current | $ | -0.1 | $ | 1.8 | $ | 48.6 | ||||
State and Local - current | 0.9 | 0.7 | 1.2 | |||||||
Total current | 0.8 | 2.5 | 49.8 | |||||||
Federal - deferred | 16.6 | 18.1 | -4.9 | |||||||
State and local - deferred | 0.6 | 1.7 | 2.8 | |||||||
Total deferred | 17.2 | 19.8 | -2.1 | |||||||
Total tax expense | $ | 18.0 | $ | 22.3 | $ | 47.7 | ||||
Components of Deferred Tax Assets and Liabilities | ||||||||||
Components of Deferred Tax Assets and Liabilities | ||||||||||
December 31, | ||||||||||
$ in millions | 2014 | 2013 | ||||||||
Net non-current Assets / (Liabilities) | ||||||||||
Depreciation / property basis | $ | -548.2 | $ | -531.5 | ||||||
Income taxes recoverable | -14.8 | -11.4 | ||||||||
Regulatory assets | -18 | -15.6 | ||||||||
Investment tax credit | 1.5 | 1.0 | ||||||||
Compensation and employee benefits | 3.2 | -3.9 | ||||||||
Intangibles | -7 | -2 | ||||||||
Long-term debt | -1.5 | -1.7 | ||||||||
Other (c) | -2.5 | 0.8 | ||||||||
Net non-current liabilities | $ | -587.3 | $ | -564.3 | ||||||
Net current Assets / (Liabilities) (d) | ||||||||||
Other | $ | 1.1 | $ | -2.6 | ||||||
Net current assets / (liabilities) | $ | 1.1 | $ | -2.6 | ||||||
Reconciliation of Unrecognized Tax Benefits | ||||||||||
$ in millions | ||||||||||
Balance at December 31, 2012 | $ | 18.3 | ||||||||
Calendar 2013 | ||||||||||
Tax positions taken during prior period | -0.1 | |||||||||
Lapse of Statute of Limitations | -6.9 | |||||||||
Settlement with taxing authorities | -2.5 | |||||||||
Balance at December 31, 2013 | 8.8 | |||||||||
Calendar 2014 | ||||||||||
Tax positions taken during prior period | 2.8 | |||||||||
Lapse of Statute of Limitations | -8.6 | |||||||||
Balance at December 31, 2014 | $ | 3.0 | ||||||||
Schedule of Tax Expense Benefit That Were Credited To Accumulated Other Comprehensive Loss (Text Block) | ||||||||||
Years ended December 31, | ||||||||||
$ in millions | 2014 | 2013 | 2012 | |||||||
Tax expense / (benefit) | $ | -9.1 | $ | 15.4 | $ | -2.5 | ||||
DP&L [Member] | ||||||||||
Components of Income Tax Expense | ||||||||||
Years ended December 31, | ||||||||||
$ in millions | 2014 | 2013 | 2012 | |||||||
Computation of tax expense | ||||||||||
Federal income tax expense / (benefit)(a) | $ | 53.8 | $ | 35.5 | $ | 50.9 | ||||
Increases (decreases) in tax resulting from: | ||||||||||
State income taxes, net of federal effect | 1.2 | 0.3 | -2 | |||||||
Depreciation of AFUDC - Equity | -2.7 | -2.5 | 3.0 | |||||||
Investment tax credit amortized | -2.5 | -2.5 | -2.5 | |||||||
Section 199 - domestic production deduction | -4.6 | -4.1 | -2.5 | |||||||
Non-deductible merger-related compensation | - | - | 0.6 | |||||||
Accrual (settlement) for open tax years | -6.6 | -8.8 | - | |||||||
Other, net (b) | 1.1 | 0.7 | 7.6 | |||||||
Total tax expense | $ | 39.7 | $ | 18.6 | $ | 55.1 | ||||
Components of Tax Expense | ||||||||||
Federal - current | $ | 34.1 | $ | 38.6 | $ | 52.1 | ||||
State and Local - current | 0.5 | -0.1 | 1.0 | |||||||
Total current | 34.6 | 38.5 | 53.1 | |||||||
Federal - deferred | 4.1 | -20.4 | 4.7 | |||||||
State and local - deferred | 1.0 | 0.5 | -2.7 | |||||||
Total deferred | 5.1 | -19.9 | 2.0 | |||||||
Total tax expense | $ | 39.7 | $ | 18.6 | $ | 55.1 | ||||
Components of Deferred Tax Assets and Liabilities | ||||||||||
December 31, | ||||||||||
$ in millions | 2014 | 2013 | ||||||||
Net non-current Assets / (Liabilities) | ||||||||||
Depreciation / property basis | $ | -618.8 | $ | -607.1 | ||||||
Income taxes recoverable | -14.8 | -11.4 | ||||||||
Regulatory assets | -18 | -15.6 | ||||||||
Investment tax credit | 8.6 | 8.8 | ||||||||
Compensation and employee benefits | 5.2 | -0.2 | ||||||||
Other | -12.2 | -6.8 | ||||||||
Net non-current liabilities | $ | -650 | $ | -632.3 | ||||||
Net current Assets / (Liabilities) (c) | ||||||||||
Other | $ | 0.5 | $ | -5 | ||||||
Net current assets / (liabilities) | $ | 0.5 | $ | -5 | ||||||
Reconciliation of Unrecognized Tax Benefits | ||||||||||
$ in millions | ||||||||||
Balance at December 31, 2012 | $ | 18.3 | ||||||||
Calendar 2013 | ||||||||||
Tax positions taken during prior period | -0.1 | |||||||||
Lapse of Statute of Limitations | -6.9 | |||||||||
Settlement with taxing authorities | -2.5 | |||||||||
Balance at December 31, 2013 | 8.8 | |||||||||
Calendar 2014 | ||||||||||
Tax positions taken during prior period | 2.8 | |||||||||
Lapse of Statute of Limitations | -8.6 | |||||||||
Balance at December 31, 2014 | $ | 3.0 | ||||||||
Schedule of Tax Expense Benefit That Were Credited To Accumulated Other Comprehensive Loss (Text Block) | ||||||||||
Years ended December 31, | ||||||||||
$ in millions | 2014 | 2013 | 2012 | |||||||
Tax expense / (benefit) | $ | -6 | $ | 7.0 | $ | -0.8 | ||||
Pension_and_Postretirement_Ben1
Pension and Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | ||||||||||||||||||||||||||||||||||
$ in millions | Pension | Postretirement | ||||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Amounts recognized in the Balance sheets | ||||||||||||||||||||||||||||||||||
Current liabilities | $ | -0.4 | $ | -0.4 | $ | -0.5 | $ | -0.5 | ||||||||||||||||||||||||||
Non-current liabilities | -71.7 | -21 | -15.8 | -15.5 | ||||||||||||||||||||||||||||||
Net liability at Year ended December 31, | $ | -72.1 | $ | -21.4 | $ | -16.3 | $ | -16 | ||||||||||||||||||||||||||
Amounts recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | ||||||||||||||||||||||||||||||||||
Components: | ||||||||||||||||||||||||||||||||||
Prior service cost | $ | 14.1 | $ | 8.8 | $ | 0.4 | $ | 0.5 | ||||||||||||||||||||||||||
Net actuarial loss / (gain) | 103.4 | 63.0 | -5 | -6 | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | 117.5 | $ | 71.8 | $ | -4.6 | $ | -5.5 | ||||||||||||||||||||||||||
Recorded as: | ||||||||||||||||||||||||||||||||||
Regulatory asset | $ | 99.0 | $ | 76.3 | $ | 0.4 | $ | 0.4 | ||||||||||||||||||||||||||
Regulatory liability | - | - | -4.8 | -5.6 | ||||||||||||||||||||||||||||||
Accumulated other comprehensive income | 18.5 | -4.5 | -0.2 | -0.3 | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | 117.5 | $ | 71.8 | $ | -4.6 | $ | -5.5 | ||||||||||||||||||||||||||
Estimated Amounts that will be Amortized from Accumulated Other Comprehensive Income, Regulatory Assets And Regulatory Liabilities | ||||||||||||||||||||||||||||||||||
$ in millions | Pension | Postretirement | ||||||||||||||||||||||||||||||||
Net actuarial gain / (loss) | $ | 5.8 | $ | -0.5 | ||||||||||||||||||||||||||||||
Prior service cost | $ | 2.0 | $ | - | ||||||||||||||||||||||||||||||
Weighted Average Assumptions Used to Determine Benefit Obligations | ||||||||||||||||||||||||||||||||||
Benefit Obligation Assumptions | Pension | Postretirement | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Discount rate for obligations | 4.02% | 4.86% | 4.04% | 3.71% | 4.58% | 3.75% | ||||||||||||||||||||||||||||
Rate of compensation increases | 3.94% | 3.94% | 3.94% | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Income) | ||||||||||||||||||||||||||||||||||
Net Periodic Benefit | Pension | Postretirement | ||||||||||||||||||||||||||||||||
Cost / (Income) Assumptions | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Discount rate | 4.86% | 4.04% | 4.88% | 4.51% | 4.58% | 4.62% | ||||||||||||||||||||||||||||
Expected rate of return | 6.75% | 6.75% | 7.00% | 6.00% | 6.00% | 6.00% | ||||||||||||||||||||||||||||
on plan assets | ||||||||||||||||||||||||||||||||||
Rate of compensation increases | 3.94% | 3.94% | 3.94% | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Assumed Health Care Cost Trend Rates | ||||||||||||||||||||||||||||||||||
Health Care Cost Assumptions | Expense | Benefit Obligation | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Pre - age 65 | ||||||||||||||||||||||||||||||||||
Current health care cost trend rate | 7.75% | 8.00% | 8.50% | 6.97% | 7.75% | 8.00% | ||||||||||||||||||||||||||||
Year trend reaches ultimate | 2023 | 2019 | 2019 | 2029 | 2023 | 2019 | ||||||||||||||||||||||||||||
Post - age 65 | ||||||||||||||||||||||||||||||||||
Current health care cost trend rate | 6.75% | 7.50% | 8.00% | 6.97% | 6.75% | 7.50% | ||||||||||||||||||||||||||||
Year trend reaches ultimate | 2021 | 2018 | 2018 | 2029 | 2021 | 2018 | ||||||||||||||||||||||||||||
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% | 4.50% | 5.00% | 5.00% | ||||||||||||||||||||||||||||
Effect of Change in Health Care Cost Trend Rate | ||||||||||||||||||||||||||||||||||
Effect of change in health care cost trend rate | ||||||||||||||||||||||||||||||||||
$ in millions | One-percent | One-percent | ||||||||||||||||||||||||||||||||
increase | decrease | |||||||||||||||||||||||||||||||||
Service cost plus interest cost | $ | 0.1 | $ | - | ||||||||||||||||||||||||||||||
Benefit obligation | $ | 1.0 | $ | -0.9 | ||||||||||||||||||||||||||||||
Estimated Future Benefit Payments and Medicare Part D Reimbursements | ||||||||||||||||||||||||||||||||||
Estimated future benefit payments and Medicare Part D reimbursements | ||||||||||||||||||||||||||||||||||
$ in millions due within the following years: | Pension | Postretirement | ||||||||||||||||||||||||||||||||
2015 | $ | 24.8 | $ | 1.9 | ||||||||||||||||||||||||||||||
2016 | $ | 25.2 | $ | 1.8 | ||||||||||||||||||||||||||||||
2017 | $ | 25.7 | $ | 1.7 | ||||||||||||||||||||||||||||||
2018 | $ | 26.3 | $ | 1.6 | ||||||||||||||||||||||||||||||
2019 | $ | 26.7 | $ | 1.5 | ||||||||||||||||||||||||||||||
2020 - 2024 | $ | 137.0 | $ | 6.1 | ||||||||||||||||||||||||||||||
Fair Value Measurements of Pension Assets Using Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||
$ in millions | Fair Value | Valuation Technique | Unobservable input | Range (Weighted Average) | ||||||||||||||||||||||||||||||
Long-lived assets held and used: | ||||||||||||||||||||||||||||||||||
DP&L (East Bend) | $ | - | Discounted cash flows | Annual revenue growth | -31% to 18% (0%) | |||||||||||||||||||||||||||||
Annual pretax operating margin | 3% to 34% (15%) | |||||||||||||||||||||||||||||||||
Schedule of Allocation of Plan Assets [Table Text Block] | ||||||||||||||||||||||||||||||||||
Target | ||||||||||||||||||||||||||||||||||
Allocation | ||||||||||||||||||||||||||||||||||
Equity Securities | 19% | |||||||||||||||||||||||||||||||||
Debt Securities | 69% | |||||||||||||||||||||||||||||||||
Real Estate | 6% | |||||||||||||||||||||||||||||||||
Other | 6% | |||||||||||||||||||||||||||||||||
DP&L [Member] | ||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | ||||||||||||||||||||||||||||||||||
$ in millions | Pension | Postretirement | ||||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Amounts recognized in the Balance sheets | ||||||||||||||||||||||||||||||||||
Current liabilities | $ | -0.4 | $ | -0.4 | $ | -0.5 | $ | -0.5 | ||||||||||||||||||||||||||
Non-current liabilities | -71.7 | -21 | -15.8 | -15.5 | ||||||||||||||||||||||||||||||
Net liability at Year ended December 31, | $ | -72.1 | $ | -21.4 | $ | -16.3 | $ | -16 | ||||||||||||||||||||||||||
Amounts recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | ||||||||||||||||||||||||||||||||||
Components: | ||||||||||||||||||||||||||||||||||
Prior service cost | $ | 20.3 | $ | 16.3 | $ | 0.6 | $ | 0.7 | ||||||||||||||||||||||||||
Net actuarial loss / (gain) | 152.5 | 115.1 | -5.8 | -6.9 | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | 172.8 | $ | 131.4 | $ | -5.2 | $ | -6.2 | ||||||||||||||||||||||||||
Recorded as: | ||||||||||||||||||||||||||||||||||
Regulatory asset | $ | 99.0 | $ | 76.3 | $ | - | $ | - | ||||||||||||||||||||||||||
Regulatory liability | - | - | -4.5 | -5.2 | ||||||||||||||||||||||||||||||
Accumulated other comprehensive income | 73.8 | 55.1 | -0.7 | -1 | ||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities, pre-tax | $ | 172.8 | $ | 131.4 | $ | -5.2 | $ | -6.2 | ||||||||||||||||||||||||||
Estimated Amounts that will be Amortized from Accumulated Other Comprehensive Income, Regulatory Assets And Regulatory Liabilities | ||||||||||||||||||||||||||||||||||
$ in millions | Pension | Postretirement | ||||||||||||||||||||||||||||||||
Net actuarial gain / (loss) | $ | 9.8 | $ | -0.7 | ||||||||||||||||||||||||||||||
Prior service cost | $ | 3.3 | $ | 0.1 | ||||||||||||||||||||||||||||||
Weighted Average Assumptions Used to Determine Benefit Obligations | ||||||||||||||||||||||||||||||||||
Benefit Obligation Assumptions | Pension | Postretirement | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Discount rate for obligations | 4.02% | 4.86% | 4.04% | 3.71% | 4.58% | 3.75% | ||||||||||||||||||||||||||||
Rate of compensation increases | 3.94% | 3.94% | 3.94% | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Income) | ||||||||||||||||||||||||||||||||||
Net Periodic Benefit | Pension | Postretirement | ||||||||||||||||||||||||||||||||
Cost / (Income) Assumptions | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Discount rate | 4.86% | 4.04% | 4.88% | 4.51% | 4.58% | 4.62% | ||||||||||||||||||||||||||||
Expected rate of return | 6.75% | 6.75% | 7.00% | 6.00% | 6.00% | 6.00% | ||||||||||||||||||||||||||||
on plan assets | ||||||||||||||||||||||||||||||||||
Rate of compensation increases | 3.94% | 3.94% | 3.94% | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Assumed Health Care Cost Trend Rates | ||||||||||||||||||||||||||||||||||
Health Care Cost Assumptions | Expense | Benefit Obligation | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||
Pre - age 65 | ||||||||||||||||||||||||||||||||||
Current health care cost trend rate | 7.75% | 8.00% | 8.50% | 6.97% | 7.75% | 8.00% | ||||||||||||||||||||||||||||
Year trend reaches ultimate | 2023 | 2019 | 2019 | 2029 | 2023 | 2019 | ||||||||||||||||||||||||||||
Post - age 65 | ||||||||||||||||||||||||||||||||||
Current health care cost trend rate | 6.75% | 7.50% | 8.00% | 6.97% | 6.75% | 7.50% | ||||||||||||||||||||||||||||
Year trend reaches ultimate | 2021 | 2018 | 2018 | 2029 | 2021 | 2018 | ||||||||||||||||||||||||||||
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% | 4.50% | 5.00% | 5.00% | ||||||||||||||||||||||||||||
Effect of Change in Health Care Cost Trend Rate | ||||||||||||||||||||||||||||||||||
Effect of change in health care cost trend rate | ||||||||||||||||||||||||||||||||||
$ in millions | One-percent | One-percent | ||||||||||||||||||||||||||||||||
increase | decrease | |||||||||||||||||||||||||||||||||
Service cost plus interest cost | $ | 0.1 | $ | - | ||||||||||||||||||||||||||||||
Benefit obligation | $ | 1.0 | $ | -0.9 | ||||||||||||||||||||||||||||||
Estimated Future Benefit Payments and Medicare Part D Reimbursements | ||||||||||||||||||||||||||||||||||
Estimated future benefit payments and Medicare Part D reimbursements | ||||||||||||||||||||||||||||||||||
$ in millions due within the following years: | Pension | Postretirement | ||||||||||||||||||||||||||||||||
2015 | $ | 24.8 | $ | 1.9 | ||||||||||||||||||||||||||||||
2016 | $ | 25.2 | $ | 1.8 | ||||||||||||||||||||||||||||||
2017 | $ | 25.7 | $ | 1.7 | ||||||||||||||||||||||||||||||
2018 | $ | 26.3 | $ | 1.6 | ||||||||||||||||||||||||||||||
2019 | $ | 26.7 | $ | 1.5 | ||||||||||||||||||||||||||||||
2020 - 2024 | $ | 137.0 | $ | 6.1 | ||||||||||||||||||||||||||||||
Fair Value Measurements for Plan Assets | ||||||||||||||||||||||||||||||||||
Fair Value Measurements for Pension Plan Assets at December 31, 2014 | Fair Value Measurements for Pension Plan Assets at December 31, 2013 | |||||||||||||||||||||||||||||||||
Asset Category | Market Value | Quoted prices | Significant | Significant | Asset Category | Market Value | Quoted prices | Significant | Significant | |||||||||||||||||||||||||
$ in millions | at December 31, 2014 | in active | observable | unobservable | $ in millions | at December 31, 2013 | in active | observable | unobservable | |||||||||||||||||||||||||
markets for | inputs | inputs | markets for | inputs | inputs | |||||||||||||||||||||||||||||
identical assets | identical assets | |||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
Equity securities (a) | Equity securities (a) | |||||||||||||||||||||||||||||||||
Small/Mid cap equity | $ | 10.6 | $ | 10.6 | $ | - | $ | - | Small/Mid cap equity | $ | 10.5 | $ | 10.5 | $ | - | $ | - | |||||||||||||||||
Large cap equity | 22.2 | 22.2 | - | - | Large cap equity | 20.8 | 20.8 | - | - | |||||||||||||||||||||||||
International equity | 18.2 | 18.2 | - | - | International equity | 20.3 | 20.3 | - | - | |||||||||||||||||||||||||
Emerging markets equity | 2.8 | 2.8 | - | - | Emerging markets equity | 3.2 | 3.2 | - | - | |||||||||||||||||||||||||
SIIT dynamic equity | 11.6 | 11.6 | - | - | SIIT dynamic equity | 10.5 | 10.5 | - | - | |||||||||||||||||||||||||
Total equity securities | 65.4 | 65.4 | - | - | Total equity securities | 65.3 | 65.3 | - | - | |||||||||||||||||||||||||
Debt Securities (b) | Debt Securities (b) | |||||||||||||||||||||||||||||||||
Emerging markets debt | 6.0 | 6.0 | - | - | Emerging markets debt | 6.6 | 6.6 | - | - | |||||||||||||||||||||||||
High yield bond | 6.5 | 6.5 | - | - | High yield bond | 6.9 | 6.9 | - | - | |||||||||||||||||||||||||
Long duration fund | 242.7 | 242.7 | - | - | Long duration fund | 223.3 | 223.3 | - | - | |||||||||||||||||||||||||
Total debt securities | 255.2 | 255.2 | - | - | Total debt securities | 236.8 | 236.8 | - | - | |||||||||||||||||||||||||
Cash and cash equivalents (c) | Cash and cash equivalents (c) | |||||||||||||||||||||||||||||||||
Cash | 1.6 | 1.6 | - | - | Cash | 0.9 | 0.9 | - | - | |||||||||||||||||||||||||
Other investments (d) | Other investments (d) | |||||||||||||||||||||||||||||||||
Core property collective fund | 26.3 | - | 26.3 | - | Core property collective fund | 23.5 | - | 23.5 | - | |||||||||||||||||||||||||
Common collective fund | 23.2 | - | 23.2 | - | Common collective fund | 22.6 | - | 22.6 | - | |||||||||||||||||||||||||
Total other investments | 49.5 | - | 49.5 | - | Total other investments | 46.1 | - | 46.1 | - | |||||||||||||||||||||||||
Total pension plan assets | $ | 371.7 | $ | 322.2 | $ | 49.5 | $ | - | Total pension plan assets | $ | 349.1 | $ | 303.0 | $ | 46.1 | $ | - | |||||||||||||||||
Fair Value Measurements of Pension Assets Using Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||
$ in millions | Fair Value | Valuation Technique | Unobservable input | Range (Weighted Average) | ||||||||||||||||||||||||||||||
Long-lived assets held and used: | ||||||||||||||||||||||||||||||||||
DP&L (Conesville) | $ | - | Discounted cash flows | Annual revenue growth | -31% to 18% (0) | |||||||||||||||||||||||||||||
Schedule of Allocation of Plan Assets [Table Text Block] | ||||||||||||||||||||||||||||||||||
Target | ||||||||||||||||||||||||||||||||||
Allocation | ||||||||||||||||||||||||||||||||||
Equity Securities | 19% | |||||||||||||||||||||||||||||||||
Debt Securities | 69% | |||||||||||||||||||||||||||||||||
Real Estate | 6% | |||||||||||||||||||||||||||||||||
Other | 6% | |||||||||||||||||||||||||||||||||
Pension [Member] | ||||||||||||||||||||||||||||||||||
Pension And Postretirement Benefit Plans' Obligations And Assets | ||||||||||||||||||||||||||||||||||
$ in millions | Pension | |||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of period | $ | 370.5 | $ | 395.6 | ||||||||||||||||||||||||||||||
Service cost | 5.9 | 7.2 | ||||||||||||||||||||||||||||||||
Interest cost | 17.5 | 15.6 | ||||||||||||||||||||||||||||||||
Plan amendments | 6.8 | - | ||||||||||||||||||||||||||||||||
Actuarial (gain) / loss | 67.3 | -26.5 | ||||||||||||||||||||||||||||||||
Benefits paid | -24.2 | -21.4 | ||||||||||||||||||||||||||||||||
Benefit obligation at end of period | 443.8 | 370.5 | ||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of period | 349.1 | 361.4 | ||||||||||||||||||||||||||||||||
Actual return on plan assets | 46.4 | 8.7 | ||||||||||||||||||||||||||||||||
Contributions to plan assets | 0.4 | 0.4 | ||||||||||||||||||||||||||||||||
Benefits paid | -24.2 | -21.4 | ||||||||||||||||||||||||||||||||
Fair value of plan assets at end of period | 371.7 | 349.1 | ||||||||||||||||||||||||||||||||
Funded status of plan | $ | -72.1 | $ | -21.4 | ||||||||||||||||||||||||||||||
Net Periodic Benefit Cost / (Income) | ||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost - Pension | ||||||||||||||||||||||||||||||||||
$ in millions | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||||||||||
Service cost | $ | 5.9 | $ | 7.2 | $ | 6.2 | ||||||||||||||||||||||||||||
Interest cost | 17.5 | 15.6 | 17.3 | |||||||||||||||||||||||||||||||
Expected return on assets (a) | -22.9 | -23.3 | -22.7 | |||||||||||||||||||||||||||||||
Amortization of unrecognized: | ||||||||||||||||||||||||||||||||||
Actuarial gain | 3.4 | 4.9 | 5.0 | |||||||||||||||||||||||||||||||
Prior service cost | 1.5 | 1.5 | 1.5 | |||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 5.4 | $ | 5.9 | $ | 7.3 | ||||||||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets And Regulatory Liabilities | ||||||||||||||||||||||||||||||||||
Pension | ||||||||||||||||||||||||||||||||||
$ in millions | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||||||||||
Net actuarial loss / (gain) | $ | 43.8 | $ | -12 | $ | 5.5 | ||||||||||||||||||||||||||||
Prior service cost | 6.8 | - | - | |||||||||||||||||||||||||||||||
Reversal of amortization item: | ||||||||||||||||||||||||||||||||||
Net actuarial loss | -3.4 | -4.9 | -5 | |||||||||||||||||||||||||||||||
Prior service cost | -1.5 | -1.5 | -1.5 | |||||||||||||||||||||||||||||||
Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 45.7 | $ | -18.4 | $ | -1 | ||||||||||||||||||||||||||||
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 51.1 | $ | -12.5 | $ | 6.3 | ||||||||||||||||||||||||||||
Fair Value Measurements for Plan Assets | ||||||||||||||||||||||||||||||||||
Fair Value Measurements for Pension Plan Assets at December 31, 2014 | Fair Value Measurements for Pension Plan Assets at December 31, 2013 | |||||||||||||||||||||||||||||||||
Asset Category | Market Value | Quoted prices | Significant | Significant | Asset Category | Market Value | Quoted prices | Significant | Significant | |||||||||||||||||||||||||
$ in millions | at December 31, 2014 | in active | observable | unobservable | $ in millions | at December 31, 2013 | in active | observable | unobservable | |||||||||||||||||||||||||
markets for | inputs | inputs | markets for | inputs | inputs | |||||||||||||||||||||||||||||
identical assets | identical assets | |||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
Equity securities (a) | Equity securities (a) | |||||||||||||||||||||||||||||||||
Small/Mid cap equity | $ | 10.6 | $ | 10.6 | $ | - | $ | - | Small/Mid cap equity | $ | 10.5 | $ | 10.5 | $ | - | $ | - | |||||||||||||||||
Large cap equity | 22.2 | 22.2 | - | - | Large cap equity | 20.8 | 20.8 | - | - | |||||||||||||||||||||||||
International equity | 18.2 | 18.2 | - | - | International equity | 20.3 | 20.3 | - | - | |||||||||||||||||||||||||
Emerging markets equity | 2.8 | 2.8 | - | - | Emerging markets equity | 3.2 | 3.2 | - | - | |||||||||||||||||||||||||
SIIT dynamic equity | 11.6 | 11.6 | - | - | SIIT dynamic equity | 10.5 | 10.5 | - | - | |||||||||||||||||||||||||
Total equity securities | 65.4 | 65.4 | - | - | Total equity securities | 65.3 | 65.3 | - | - | |||||||||||||||||||||||||
Debt securities (b) | Debt securities (b) | |||||||||||||||||||||||||||||||||
Emerging markets debt | 6.0 | 6.0 | - | - | Emerging markets debt | 6.6 | 6.6 | - | - | |||||||||||||||||||||||||
High yield bond | 6.5 | 6.5 | - | - | High yield bond | 6.9 | 6.9 | - | - | |||||||||||||||||||||||||
Long duration fund | 242.7 | 242.7 | - | - | Long duration fund | 223.3 | 223.3 | - | - | |||||||||||||||||||||||||
Total debt securities | 255.2 | 255.2 | - | - | Total debt securities | 236.8 | 236.8 | - | - | |||||||||||||||||||||||||
Cash and cash equivalents (c) | Cash and cash equivalents (c) | |||||||||||||||||||||||||||||||||
Cash | 1.6 | 1.6 | - | - | Cash | 0.9 | 0.9 | - | - | |||||||||||||||||||||||||
Other investments (d) | Other investments (d) | |||||||||||||||||||||||||||||||||
Core property collective fund | 26.3 | - | 26.3 | - | Core property collective fund | 23.5 | - | 23.5 | - | |||||||||||||||||||||||||
Common collective fund | 23.2 | - | 23.2 | - | Common collective fund | 22.6 | - | 22.6 | - | |||||||||||||||||||||||||
Total other investments | 49.5 | - | 49.5 | - | Total other investments | 46.1 | - | 46.1 | - | |||||||||||||||||||||||||
Total pension plan assets | $ | 371.7 | $ | 322.2 | $ | 49.5 | $ | - | Total pension plan assets | $ | 349.1 | $ | 303.0 | $ | 46.1 | $ | - | |||||||||||||||||
Pension [Member] | DP&L [Member] | ||||||||||||||||||||||||||||||||||
Pension And Postretirement Benefit Plans' Obligations And Assets | ||||||||||||||||||||||||||||||||||
$ in millions | Pension | |||||||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of period | $ | 370.5 | $ | 395.6 | ||||||||||||||||||||||||||||||
Service cost | 5.9 | 7.2 | ||||||||||||||||||||||||||||||||
Interest cost | 17.5 | 15.6 | ||||||||||||||||||||||||||||||||
Plan amendments | 6.8 | - | ||||||||||||||||||||||||||||||||
Actuarial (gain) / loss | 67.3 | -26.5 | ||||||||||||||||||||||||||||||||
Benefits paid | -24.2 | -21.4 | ||||||||||||||||||||||||||||||||
Benefit obligation at end of period | 443.8 | 370.5 | ||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of period | 349.1 | 361.4 | ||||||||||||||||||||||||||||||||
Actual return on plan assets | 46.4 | 8.7 | ||||||||||||||||||||||||||||||||
Contributions to plan assets | 0.4 | 0.4 | ||||||||||||||||||||||||||||||||
Benefits paid | -24.2 | -21.4 | ||||||||||||||||||||||||||||||||
Fair value of plan assets at end of period | 371.7 | 349.1 | ||||||||||||||||||||||||||||||||
Funded status of plan | $ | -72.1 | $ | -21.4 | ||||||||||||||||||||||||||||||
Net Periodic Benefit Cost / (Income) | ||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost - Pension | ||||||||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||||||||
$ in millions | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Service cost | $ | 5.9 | $ | 7.2 | $ | 6.2 | ||||||||||||||||||||||||||||
Interest cost | 17.5 | 15.6 | 17.3 | |||||||||||||||||||||||||||||||
Expected return on assets (a) | -22.9 | -23.6 | -22.7 | |||||||||||||||||||||||||||||||
Amortization of unrecognized: | ||||||||||||||||||||||||||||||||||
Actuarial gain | 6.4 | 9.3 | 8.8 | |||||||||||||||||||||||||||||||
Prior service cost | 2.8 | 2.8 | 2.8 | |||||||||||||||||||||||||||||||
Net periodic benefit cost before adjustments | 9.7 | 11.3 | 12.4 | |||||||||||||||||||||||||||||||
Settlement Expense | - | - | 0.6 | |||||||||||||||||||||||||||||||
Net periodic benefit cost after adjustments | $ | 9.7 | $ | 11.3 | $ | 13.0 | ||||||||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets And Regulatory Liabilities | ||||||||||||||||||||||||||||||||||
Pension | ||||||||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||||||||
$ in millions | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Net actuarial loss / (gain) | $ | 43.8 | $ | -11.7 | $ | 5.2 | ||||||||||||||||||||||||||||
Prior service cost | 6.8 | - | - | |||||||||||||||||||||||||||||||
Reversal of amortization item: | ||||||||||||||||||||||||||||||||||
Net actuarial loss | -6.4 | -9.3 | -9.4 | |||||||||||||||||||||||||||||||
Prior service cost | -2.8 | -2.8 | -2.8 | |||||||||||||||||||||||||||||||
Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 41.4 | $ | -23.8 | $ | -7 | ||||||||||||||||||||||||||||
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 51.1 | $ | -12.5 | $ | 6.0 | ||||||||||||||||||||||||||||
Postretirement [Member] | ||||||||||||||||||||||||||||||||||
Pension And Postretirement Benefit Plans' Obligations And Assets | ||||||||||||||||||||||||||||||||||
$ in millions | Postretirement | |||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of period | $ | 19.7 | $ | 22.4 | ||||||||||||||||||||||||||||||
Service cost | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||
Interest cost | 0.8 | 0.8 | ||||||||||||||||||||||||||||||||
Actuarial (gain) / loss | 0.2 | -2.2 | ||||||||||||||||||||||||||||||||
Benefits paid | -1.3 | -1.5 | ||||||||||||||||||||||||||||||||
Benefit obligation at end of period | 19.6 | 19.7 | ||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of period | 3.7 | 4.2 | ||||||||||||||||||||||||||||||||
Contributions to plan assets | 0.9 | 1.0 | ||||||||||||||||||||||||||||||||
Benefits paid | -1.3 | -1.5 | ||||||||||||||||||||||||||||||||
Fair value of plan assets at end of period | 3.3 | 3.7 | ||||||||||||||||||||||||||||||||
Funded status of plan | $ | -16.3 | $ | -16 | ||||||||||||||||||||||||||||||
Net Periodic Benefit Cost / (Income) | ||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost - Postretirement | ||||||||||||||||||||||||||||||||||
$ in millions | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||||||||||
Service cost | $ | 0.2 | $ | 0.2 | $ | 0.1 | ||||||||||||||||||||||||||||
Interest cost | 0.8 | 0.8 | 0.9 | |||||||||||||||||||||||||||||||
Expected return on assets (a) | -0.2 | -0.1 | -0.3 | |||||||||||||||||||||||||||||||
Amortization of unrecognized: | ||||||||||||||||||||||||||||||||||
Actuarial loss | -0.6 | -0.5 | -0.6 | |||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 0.2 | $ | 0.4 | $ | 0.1 | ||||||||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets And Regulatory Liabilities | ||||||||||||||||||||||||||||||||||
Postretirement | ||||||||||||||||||||||||||||||||||
$ in millions | Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | |||||||||||||||||||||||||||||||
Net actuarial loss / (gain) | $ | 0.4 | $ | -2 | $ | 1.0 | ||||||||||||||||||||||||||||
Reversal of amortization item: | ||||||||||||||||||||||||||||||||||
Net actuarial gain | 0.6 | 0.5 | 0.7 | |||||||||||||||||||||||||||||||
Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 1.0 | $ | -1.5 | $ | 1.7 | ||||||||||||||||||||||||||||
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 1.2 | $ | -1.1 | $ | - | ||||||||||||||||||||||||||||
Fair Value Measurements for Plan Assets | ||||||||||||||||||||||||||||||||||
Fair Value Measurements for Postemployment Benefit Plan Assets at December 31, 2014 | Fair Value Measurements for Postemployment Benefit Plan Assets at December 31, 2013 | |||||||||||||||||||||||||||||||||
Asset Category | Market Value | Quoted prices | Significant | Significant | Asset Category | Market Value | Quoted prices | Significant | Significant | |||||||||||||||||||||||||
$ in millions | at December 31, 2014 | in active | observable | unobservable | $ in millions | at December 31, 2013 | in active | observable | unobservable | |||||||||||||||||||||||||
markets for | inputs | inputs | markets for | inputs | inputs | |||||||||||||||||||||||||||||
identical assets | identical assets | |||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
JP Morgan Core Bond Fund (a) | $ | 3.2 | $ | 3.2 | $ | - | $ | - | JP Morgan Core Bond Fund (a) | $ | 3.7 | $ | 3.7 | $ | - | $ | - | |||||||||||||||||
Postretirement [Member] | DP&L [Member] | ||||||||||||||||||||||||||||||||||
Pension And Postretirement Benefit Plans' Obligations And Assets | ||||||||||||||||||||||||||||||||||
$ in millions | Postretirement | |||||||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||||
Benefit obligation at beginning of period | $ | 19.7 | $ | 22.4 | ||||||||||||||||||||||||||||||
Service cost | 0.2 | 0.2 | ||||||||||||||||||||||||||||||||
Interest cost | 0.8 | 0.8 | ||||||||||||||||||||||||||||||||
Actuarial (gain) / loss | 0.2 | -2.2 | ||||||||||||||||||||||||||||||||
Benefits paid | -1.3 | -1.5 | ||||||||||||||||||||||||||||||||
Benefit obligation at end of period | 19.6 | 19.7 | ||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of period | 3.7 | 4.2 | ||||||||||||||||||||||||||||||||
Contributions to plan assets | 0.9 | 1.0 | ||||||||||||||||||||||||||||||||
Benefits paid | -1.3 | -1.5 | ||||||||||||||||||||||||||||||||
Fair value of plan assets at end of period | 3.3 | 3.7 | ||||||||||||||||||||||||||||||||
Funded status of plan | $ | -16.3 | $ | -16 | ||||||||||||||||||||||||||||||
Net Periodic Benefit Cost / (Income) | ||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost / (Income) - Postretirement | ||||||||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||||||||
$ in millions | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Service cost | $ | 0.2 | $ | 0.2 | $ | 0.1 | ||||||||||||||||||||||||||||
Interest cost | 0.8 | 0.8 | 0.9 | |||||||||||||||||||||||||||||||
Expected return on assets | -0.2 | -0.2 | -0.3 | |||||||||||||||||||||||||||||||
Amortization of unrecognized: | ||||||||||||||||||||||||||||||||||
Actuarial loss | -0.8 | -0.7 | -0.9 | |||||||||||||||||||||||||||||||
Prior service credit | 0.1 | 0.1 | 0.1 | |||||||||||||||||||||||||||||||
Net periodic benefit cost / (income) | $ | 0.1 | $ | 0.2 | $ | -0.1 | ||||||||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets And Regulatory Liabilities | ||||||||||||||||||||||||||||||||||
Postretirement | ||||||||||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||||||||||
$ in millions | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Net actuarial loss / (gain) | $ | 0.4 | $ | -1.9 | $ | 1.1 | ||||||||||||||||||||||||||||
Reversal of amortization item: | ||||||||||||||||||||||||||||||||||
Net actuarial gain | 0.8 | 0.7 | 0.9 | |||||||||||||||||||||||||||||||
Prior service credit | -0.1 | -0.1 | -0.1 | |||||||||||||||||||||||||||||||
Total recognized in Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 1.1 | $ | -1.3 | $ | 1.9 | ||||||||||||||||||||||||||||
Total recognized in net periodic benefit cost and Accumulated Other Comprehensive Income, Regulatory Assets and Regulatory Liabilities | $ | 1.2 | $ | -1.1 | $ | 1.8 | ||||||||||||||||||||||||||||
Fair Value Measurements for Plan Assets | ||||||||||||||||||||||||||||||||||
Fair Value Measurements for Postemployment Benefit Plan Assets at December 31, 2014 | Fair Value Measurements for Postemployment Benefit Plan Assets at December 31, 2013 | |||||||||||||||||||||||||||||||||
Asset Category | Market Value | Quoted prices | Significant | Significant | Asset Category | Market Value | Quoted prices | Significant | Significant | |||||||||||||||||||||||||
$ in millions | at December 31, 2014 | in active | observable | unobservable | $ in millions | at December 31, 2013 | in active | observable | unobservable | |||||||||||||||||||||||||
markets for | inputs | inputs | markets for | inputs | inputs | |||||||||||||||||||||||||||||
identical assets | identical assets | |||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||
JP Morgan Core Bond Fund (a) | $ | 3.2 | $ | 3.2 | $ | - | $ | - | JP Morgan Core Bond Fund (a) | $ | 3.7 | $ | 3.7 | $ | - | $ | - | |||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Fair Value and Cost of Non-Derivative Instruments | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||
$ in millions | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||
Money market funds | $ | 0.1 | $ | 0.1 | $ | 0.3 | $ | 0.3 | |||||||||||||||||||||||||||||
Equity securities | 2.7 | 3.7 | 3.3 | 4.4 | |||||||||||||||||||||||||||||||||
Debt securities | 4.7 | 4.7 | 5.4 | 5.5 | |||||||||||||||||||||||||||||||||
Hedge Funds | 0.8 | 0.8 | 0.9 | 0.9 | |||||||||||||||||||||||||||||||||
Real Estate | 0.4 | 0.4 | 0.4 | 0.4 | |||||||||||||||||||||||||||||||||
Total assets | $ | 8.7 | $ | 9.7 | $ | 10.3 | $ | 11.5 | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||
Debt | $ | 2,159.7 | $ | 2,204.8 | $ | 2,294.4 | $ | 2,334.6 | |||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities Measured on Recurring Basis | |||||||||||||||||||||||||||||||||||||
Assets and Liabilities at Fair Value | Assets and Liabilities at Fair Value | ||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
$ in millions | Fair Value at December 31, 2014 (a) | Based on | Other | Unobservable inputs | $ in millions | Fair Value at December 31, 2013 (a) | Based on | Other | Unobservable inputs | ||||||||||||||||||||||||||||
Quoted Prices | observable | Quoted Prices | observable | ||||||||||||||||||||||||||||||||||
in | inputs | in | inputs | ||||||||||||||||||||||||||||||||||
Active Markets | Active Markets | ||||||||||||||||||||||||||||||||||||
Assets | Assets | ||||||||||||||||||||||||||||||||||||
Master trust assets | Master trust assets | ||||||||||||||||||||||||||||||||||||
Money market funds | $ | 0.1 | $ | 0.1 | $ | - | $ | - | Money market funds | $ | 0.3 | $ | 0.3 | $ | - | $ | - | ||||||||||||||||||||
Equity securities | 3.7 | 3.7 | - | - | Equity securities | 4.4 | 4.4 | - | - | ||||||||||||||||||||||||||||
Debt securities | 4.7 | 4.7 | - | - | Debt securities | 5.5 | 5.5 | - | - | ||||||||||||||||||||||||||||
Hedge Funds | 0.8 | - | 0.8 | - | Hedge Funds | 0.9 | - | 0.9 | - | ||||||||||||||||||||||||||||
Real Estate | 0.4 | 0.4 | - | - | Real Estate | 0.4 | 0.4 | - | - | ||||||||||||||||||||||||||||
Total Master trust assets | 9.7 | 8.9 | 0.8 | - | Total Master trust assets | 11.5 | 10.6 | 0.9 | - | ||||||||||||||||||||||||||||
Derivative assets | Derivative assets | ||||||||||||||||||||||||||||||||||||
Forward power contracts | 14.9 | - | 13.7 | 1.2 | FTRs | 0.2 | - | - | 0.2 | ||||||||||||||||||||||||||||
Total derivative assets | 14.9 | - | 13.7 | 1.2 | Heating oil futures | 0.2 | 0.2 | - | - | ||||||||||||||||||||||||||||
Forward power contracts | 13.4 | - | 13.4 | - | |||||||||||||||||||||||||||||||||
Total assets | $ | 24.6 | $ | 8.9 | $ | 14.5 | $ | 1.2 | Total derivative assets | 13.8 | 0.2 | 13.4 | 0.2 | ||||||||||||||||||||||||
Liabilities | Total assets | $ | 25.3 | $ | 10.8 | $ | 14.3 | $ | 0.2 | ||||||||||||||||||||||||||||
FTRs | $ | 0.6 | $ | - | $ | - | $ | 0.6 | |||||||||||||||||||||||||||||
Heating oil futures | 0.4 | 0.4 | - | - | Liabilities | ||||||||||||||||||||||||||||||||
Natural gas futures | 0.1 | 0.1 | - | - | Forward power contracts | $ | 10.6 | $ | - | $ | 10.6 | $ | - | ||||||||||||||||||||||||
Forward power contracts | 11.1 | - | 11.1 | - | Total derivative liabilities | 10.6 | - | 10.6 | - | ||||||||||||||||||||||||||||
Total derivative liabilities | 12.2 | 0.5 | 11.1 | 0.6 | |||||||||||||||||||||||||||||||||
Long-term debt | 2,334.6 | - | 2,316.1 | 18.5 | |||||||||||||||||||||||||||||||||
Long-term debt | 2,204.8 | - | 2,186.6 | 18.2 | |||||||||||||||||||||||||||||||||
Total liabilities | $ | 2,345.2 | $ | - | $ | 2,326.7 | $ | 18.5 | |||||||||||||||||||||||||||||
Total liabilities | $ | 2,217.0 | $ | 0.5 | $ | 2,197.7 | $ | 18.8 | |||||||||||||||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | |||||||||||||||||||||||||||||||||||||
$ in millions | Year ended December 31, 2014 | $ in millions | Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||||
Carrying | Fair Value | Gross | Carrying | Fair Value | Gross | ||||||||||||||||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Loss | Amount | Level 1 | Level 2 | Level 3 | Loss | ||||||||||||||||||||||||||||
Assets | Assets | ||||||||||||||||||||||||||||||||||||
Long-lived assets held and used (a) | Long-lived assets held and used (a) | ||||||||||||||||||||||||||||||||||||
DP&L (East Bend) | $ | 14.2 | $ | - | $ | - | $ | 2.7 | $ | 11.5 | DP&L (Conesville) | $ | 26.2 | $ | - | $ | - | $ | - | $ | 26.2 | ||||||||||||||||
Goodwill (b) | Goodwill (b) | ||||||||||||||||||||||||||||||||||||
DPLER Reporting unit | $ | 135.8 | $ | - | $ | - | $ | - | $ | 135.8 | DP&L Reporting unit | $ | 623.3 | $ | - | $ | - | $ | 317.0 | $ | 306.3 | ||||||||||||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs [Table Text Block] | |||||||||||||||||||||||||||||||||||||
$ in millions | Fair Value | Valuation Technique | Unobservable input | Range (Weighted Average) | |||||||||||||||||||||||||||||||||
Long-lived assets held and used: | |||||||||||||||||||||||||||||||||||||
DP&L (East Bend) | $ | - | Discounted cash flows | Annual revenue growth | -31% to 18% (0%) | ||||||||||||||||||||||||||||||||
Annual pretax operating margin | 3% to 34% (15%) | ||||||||||||||||||||||||||||||||||||
DP&L [Member] | |||||||||||||||||||||||||||||||||||||
Fair Value and Cost of Non-Derivative Instruments | |||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||
$ in millions | Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||
Money market funds | $ | 0.1 | $ | 0.1 | $ | 0.3 | $ | 0.3 | |||||||||||||||||||||||||||||
Equity securities | 2.7 | 3.7 | 3.3 | 4.4 | |||||||||||||||||||||||||||||||||
Debt securities | 4.7 | 4.7 | 5.4 | 5.5 | |||||||||||||||||||||||||||||||||
Hedge Funds | 0.8 | 0.8 | 0.9 | 0.9 | |||||||||||||||||||||||||||||||||
Real Estate | 0.4 | 0.4 | 0.4 | 0.4 | |||||||||||||||||||||||||||||||||
Total assets | $ | 8.7 | $ | 9.7 | $ | 10.3 | $ | 11.5 | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||
Debt | $ | 877.1 | $ | 882.5 | $ | 877.1 | $ | 859.6 | |||||||||||||||||||||||||||||
Fair Value of Assets and Liabilities Measured on Recurring Basis | |||||||||||||||||||||||||||||||||||||
Assets and Liabilities at Fair Value | Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
$ in millions | Fair Value at December 31, 2014 (a) | Based on | Other | Unobservable inputs | $ in millions | Fair Value at December 31, 2013 (a) | Based on | Other | Unobservable inputs | ||||||||||||||||||||||||||||
Quoted Prices | observable | Quoted Prices | observable | ||||||||||||||||||||||||||||||||||
in | inputs | in | inputs | ||||||||||||||||||||||||||||||||||
Active Markets | Active Markets | ||||||||||||||||||||||||||||||||||||
Assets | Assets | ||||||||||||||||||||||||||||||||||||
Master trust assets | Master trust assets | ||||||||||||||||||||||||||||||||||||
Money market funds | $ | 0.1 | $ | 0.1 | $ | - | $ | - | Money market funds | $ | 0.3 | $ | 0.3 | $ | - | $ | - | ||||||||||||||||||||
Equity securities | 3.7 | 3.7 | - | - | Equity securities | 4.4 | 4.4 | - | - | ||||||||||||||||||||||||||||
Debt securities | 4.7 | 4.7 | - | - | Debt securities | 5.5 | 5.5 | - | - | ||||||||||||||||||||||||||||
Hedge Funds | 0.8 | - | 0.8 | - | Hedge Funds | 0.9 | - | 0.9 | - | ||||||||||||||||||||||||||||
Real Estate | 0.4 | 0.4 | - | - | Real Estate | 0.4 | 0.4 | - | - | ||||||||||||||||||||||||||||
Total Master trust assets | 9.7 | 8.9 | 0.8 | - | Total Master trust assets | 11.5 | 10.6 | 0.9 | - | ||||||||||||||||||||||||||||
Derivative assets | Derivative assets | ||||||||||||||||||||||||||||||||||||
Forward power contracts | 15.1 | - | 13.9 | 1.2 | Heating oil futures | 0.2 | 0.2 | - | - | ||||||||||||||||||||||||||||
Total derivative assets | 15.1 | - | 13.9 | 1.2 | FTRs | 0.2 | - | - | 0.2 | ||||||||||||||||||||||||||||
Forward power contracts | 13.4 | - | 13.4 | - | |||||||||||||||||||||||||||||||||
Total assets | $ | 24.8 | $ | 8.9 | $ | 14.7 | $ | 1.2 | Total derivative assets | 13.8 | 0.2 | 13.4 | 0.2 | ||||||||||||||||||||||||
Liabilities | Total assets | $ | 25.3 | $ | 10.8 | $ | 14.3 | $ | 0.2 | ||||||||||||||||||||||||||||
FTRs | $ | 0.6 | $ | - | $ | - | $ | 0.6 | |||||||||||||||||||||||||||||
Heating oil futures | 0.4 | 0.4 | - | - | Liabilities | ||||||||||||||||||||||||||||||||
Natural gas futures | 0.1 | 0.1 | - | - | Forward power contracts | $ | 10.6 | $ | - | $ | 10.6 | $ | - | ||||||||||||||||||||||||
Forward power contracts | 11.2 | - | 11.2 | - | Total derivative liabilities | 10.6 | - | 10.6 | - | ||||||||||||||||||||||||||||
Total derivative liabilities | 12.3 | 0.5 | 11.2 | 0.6 | |||||||||||||||||||||||||||||||||
Long-term debt | 859.6 | - | 841.1 | 18.5 | |||||||||||||||||||||||||||||||||
Long-term debt | 882.5 | - | 864.3 | 18.2 | |||||||||||||||||||||||||||||||||
Total liabilities | $ | 870.2 | $ | - | $ | 851.7 | $ | 18.5 | |||||||||||||||||||||||||||||
Total liabilities | $ | 894.8 | $ | 0.5 | $ | 875.5 | $ | 18.8 | |||||||||||||||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | |||||||||||||||||||||||||||||||||||||
$ in millions | Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Carrying | Fair Value | Gross | |||||||||||||||||||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Loss | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||
Long-lived assets held and used (a) | |||||||||||||||||||||||||||||||||||||
Conesville | $ | 30.0 | $ | - | $ | - | $ | 20.0 | $ | 10.0 | |||||||||||||||||||||||||||
East Bend | $ | 76.0 | $ | - | $ | - | $ | - | $ | 76.0 | |||||||||||||||||||||||||||
Fair Value Measurements of Plan Assets Using Significant Unobservable Inputs [Table Text Block] | |||||||||||||||||||||||||||||||||||||
$ in millions | Fair Value | Valuation Technique | Unobservable input | Range (Weighted Average) | |||||||||||||||||||||||||||||||||
Long-lived assets held and used: | |||||||||||||||||||||||||||||||||||||
DP&L (Conesville) | $ | - | Discounted cash flows | Annual revenue growth | -31% to 18% (0) | ||||||||||||||||||||||||||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity | Accounting Treatment | Unit | Purchases | Sales | Net Purchases/ (Sales) | Commodity | Accounting Treatment | Unit | Purchases | Sales | Net Purchases/ (Sales) | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
FTRs | Mark to Market | MWh | 10.5 | - | 10.5 | FTRs | Mark to Market | MWh | 7.1 | - | 7.1 | |||||||||||||||||||||||||||||||||||||||||
Heating Oil Futures | Mark to Market | Gallons | 378.0 | - | 378.0 | Heating Oil Futures | Mark to Market | Gallons | 1,428.0 | - | 1,428.0 | |||||||||||||||||||||||||||||||||||||||||
Natural Gas Futures | Mark to Market | Dths | 200.0 | - | 200.0 | Forward Power Contracts | Cash Flow Hedge | MWh | 140.4 | -4,705.70 | -4,565.30 | |||||||||||||||||||||||||||||||||||||||||
Forward Power Contracts | Cash Flow Hedge | MWh | 175.0 | -2,991.00 | -2,816.00 | Forward Power Contracts | Mark to Market | MWh | 3,177.8 | -2,883.10 | 294.7 | |||||||||||||||||||||||||||||||||||||||||
Forward Power Contracts | Mark to Market | MWh | 1,725.2 | -2,707.80 | -982.6 | |||||||||||||||||||||||||||||||||||||||||||||||
Gains or Losses Recognized in AOCI for the Cash Flow Hedges | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ in millions (net of tax) | Power | Interest Rate | Power | Interest Rate | Power | Interest Rate | ||||||||||||||||||||||||||||||||||||||||||||||
Hedges | Hedges | Hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning accumulated derivative gain / (loss) in AOCI | $ | 1.4 | $ | 19.2 | $ | -3 | $ | 0.5 | $ | 0.3 | $ | -0.8 | ||||||||||||||||||||||||||||||||||||||||
Net gains / (losses) associated with current period hedging transactions | -19 | - | 1.0 | 18.7 | -2.6 | 1.1 | ||||||||||||||||||||||||||||||||||||||||||||||
Net gains reclassified to earnings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense | - | -0.9 | - | - | - | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||
Revenues | 18.3 | - | 2.1 | - | -0.7 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Purchased Power | -0.5 | - | 1.3 | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Ending accumulated derivative gain / (loss) in AOCI | $ | 0.2 | $ | 18.3 | $ | 1.4 | $ | 19.2 | $ | -3 | $ | 0.5 | ||||||||||||||||||||||||||||||||||||||||
Net gains / (losses) associated with the ineffective portion of the hedging transaction | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense | $ | - | $ | - | $ | - | $ | 0.8 | $ | - | $ | 0.2 | ||||||||||||||||||||||||||||||||||||||||
Portion expected to be reclassified to earnings in the next twelve months (a) | $ | 3.5 | $ | -0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 24 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ in millions | Heating Oil | FTRs | Power | Natural Gas | Total | $ in millions | Heating Oil | FTRs | Power | Total | $ in millions | NYMEX | Heating Oil | FTRs | Power | Total | ||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Coal | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized loss | $ | -0.6 | $ | -0.8 | $ | -1.5 | $ | -0.1 | -3 | Change in unrealized gain | $ | - | $ | 0.3 | $ | 0.6 | $ | 0.9 | Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||
Realized gain / (loss) | -0.1 | 0.7 | -3.6 | -0.1 | -3.1 | Realized gain | 0.1 | 1.2 | 1.1 | 2.4 | Change in unrealized gain / (loss) | $ | 14.5 | $ | -1.6 | $ | -0.2 | $ | 4.3 | $ | 17.0 | |||||||||||||||||||||||||||||||
Total | $ | -0.7 | $ | -0.1 | $ | -5.1 | $ | -0.2 | -6.1 | Total | $ | 0.1 | $ | 1.5 | $ | 1.7 | $ | 3.3 | Realized gain / (loss) | -29.5 | 1.9 | 0.5 | -5 | -32.1 | ||||||||||||||||||||||||||||
Total | $ | -15 | $ | 0.3 | $ | 0.3 | $ | -0.7 | $ | -15.1 | ||||||||||||||||||||||||||||||||||||||||||
Recorded on Balance Sheet: | Recorded in Income Statement: gain / (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory asset | $ | -0.1 | $ | - | $ | - | $ | - | $ | -0.1 | Revenue | $ | - | $ | - | $ | - | $ | - | Recorded on Balance Sheet: | ||||||||||||||||||||||||||||||||
Purchased Power | - | 1.5 | 1.7 | 3.2 | Partners' share of gain | $ | 4.2 | $ | - | $ | - | $ | - | $ | 4.2 | |||||||||||||||||||||||||||||||||||||
Recorded in Income Statement: gain / (loss) | Fuel | 0.1 | - | - | 0.1 | Regulatory (asset) / liability | 1.0 | -0.6 | - | - | 0.4 | |||||||||||||||||||||||||||||||||||||||||
Purchased Power | - | -0.1 | -5.1 | -0.2 | -5.4 | O&M | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Fuel | -0.6 | - | - | - | -0.6 | Total | $ | 0.1 | $ | 1.5 | $ | 1.7 | $ | 3.3 | Recorded in Income Statement: gain / (loss) | |||||||||||||||||||||||||||||||||||||
Total | $ | -0.7 | $ | -0.1 | $ | -5.1 | $ | -0.2 | -6.1 | Revenue | - | - | - | -5.1 | -5.1 | |||||||||||||||||||||||||||||||||||||
Purchased Power | - | - | 0.3 | 4.4 | 4.7 | |||||||||||||||||||||||||||||||||||||||||||||||
Fuel | -20.2 | 0.7 | - | - | -19.5 | |||||||||||||||||||||||||||||||||||||||||||||||
O&M | - | 0.2 | - | - | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | -15 | $ | 0.3 | $ | 0.3 | $ | -0.7 | $ | -15.1 | ||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||||||||||||||||||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Consolidated Balance Sheets (a) | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | $ in millions | Hedging Designation | Gross Fair Value as presented in the Consolidated Balance Sheets (a) | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | |||||||||||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term derivative positions (presented in Other current assets) | Short-term derivative positions (presented in Other current assets) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | Cash Flow | $ | 5.6 | $ | -2 | $ | - | $ | 3.6 | Forward power contracts | Cash Flow | $ | 0.5 | $ | -0.2 | $ | - | $ | 0.3 | |||||||||||||||||||||||||||||||||
Forward power contracts | MTM | 5.5 | -3.4 | - | 2.1 | Forward power contracts | MTM | 4.9 | -4.2 | - | 0.7 | |||||||||||||||||||||||||||||||||||||||||
FTRs | MTM | 0.2 | - | - | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term derivative positions (presented in Other deferred assets) | Heating oil futures | MTM | 0.2 | - | -0.2 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | Cash Flow | 0.3 | -0.3 | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | MTM | 3.5 | -0.9 | - | 2.6 | Long-term derivative positions (presented in Other deferred assets) | ||||||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | Cash Flow | 3.0 | - | -3 | - | |||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 14.9 | $ | -6.6 | $ | - | $ | 8.3 | Forward power contracts | MTM | 5.0 | -0.3 | - | 4.7 | ||||||||||||||||||||||||||||||||||||||
Liabilities | Total assets | $ | 13.8 | $ | -4.7 | $ | -3.2 | $ | 5.9 | |||||||||||||||||||||||||||||||||||||||||||
Short-term derivative positions (presented in Other current liabilities) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | Cash Flow | $ | 2.1 | $ | -2 | $ | - | $ | 0.1 | Liabilities | ||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | MTM | 7.5 | -3.4 | -4.1 | - | Short-term derivative positions (presented in Other current liabilities) | ||||||||||||||||||||||||||||||||||||||||||||||
FTRs | MTM | 0.6 | - | - | 0.6 | Forward power contracts | Cash Flow | $ | 2.7 | $ | -0.2 | $ | -2.3 | $ | 0.2 | |||||||||||||||||||||||||||||||||||||
Heating oil futures | MTM | 0.4 | - | -0.4 | - | Forward power contracts | MTM | 6.6 | -4.2 | -2.3 | 0.1 | |||||||||||||||||||||||||||||||||||||||||
Natural gas | MTM | 0.1 | - | -0.1 | - | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term derivative positions (presented in Other deferred liabilities) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term derivative positions (presented in Other deferred liabilities) | Forward power contracts | MTM | 1.3 | -0.3 | -1 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | Cash Flow | 0.6 | -0.3 | -0.3 | - | |||||||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | MTM | 0.9 | -0.9 | - | - | Total liabilities | $ | 10.6 | $ | -4.7 | $ | -5.6 | $ | 0.3 | ||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 12.2 | $ | -6.6 | $ | -4.9 | $ | 0.7 | ||||||||||||||||||||||||||||||||||||||||||||
DP&L [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity | Accounting Treatment | Unit | Purchases | Sales | Net Purchases/ (Sales) | Commodity | Accounting Treatment | Unit | Purchases | Sales | Net Purchases/ (Sales) | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
FTRs | Mark to Market | MWh | 10.5 | - | 10.5 | FTRs | Mark to Market | MWh | 7.1 | - | 7.1 | |||||||||||||||||||||||||||||||||||||||||
Heating Oil Futures | Mark to Market | Gallons | 378.0 | - | 378.0 | Heating Oil Futures | Mark to Market | Gallons | 1,428.0 | - | 1,428.0 | |||||||||||||||||||||||||||||||||||||||||
Natural Gas | Mark to Market | Dths | 200.0 | - | 200.0 | Forward Power Contracts | Cash Flow Hedge | MWh | 140.4 | -4,705.70 | -4,565.30 | |||||||||||||||||||||||||||||||||||||||||
Forward Power Contracts | Cash Flow Hedge | MWh | 175.0 | -2,991.00 | -2,816.00 | Forward Power Contracts | Mark to Market | MWh | 3,172.4 | -2,888.50 | 283.9 | |||||||||||||||||||||||||||||||||||||||||
Forward Power Contracts | Mark to Market | MWh | 1,725.2 | -2,804.00 | -1,078.80 | |||||||||||||||||||||||||||||||||||||||||||||||
Gains or Losses Recognized in AOCI for the Cash Flow Hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | Year ended December 31, 2013 | Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ in millions (net of tax) | Power | Interest Rate | Power | Interest Rate | Power | Interest Rate | ||||||||||||||||||||||||||||||||||||||||||||||
Hedge | Hedge | Hedge | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning accumulated derivative gain / (loss) in AOCI | $ | 1.0 | $ | 5.2 | $ | -4.7 | $ | 7.3 | $ | -0.8 | $ | 9.8 | ||||||||||||||||||||||||||||||||||||||||
Net gains / (losses) associated with current period hedging transactions | -18.8 | - | 1.0 | - | -3 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Net gains reclassified to earnings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense | - | -2.6 | - | -2.1 | - | -2.5 | ||||||||||||||||||||||||||||||||||||||||||||||
Revenues | 18.2 | - | 1.4 | - | -1.1 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Purchased Power | -0.2 | - | 3.3 | - | 0.2 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Ending accumulated derivative gain / (loss) in AOCI | $ | 0.2 | $ | 2.6 | $ | 1.0 | $ | 5.2 | $ | -4.7 | $ | 7.3 | ||||||||||||||||||||||||||||||||||||||||
Net gains or losses associated with the ineffective portion of the hedging transactions were immaterial in the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Portion expected to be reclassified to earnings in the next twelve months (a) | $ | 3.5 | $ | -2.6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 24 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||
$ in millions | Heating Oil | FTRs | Power | Natural Gas | Total | $ in millions | Heating Oil | FTRs | Power | Total | ||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized loss | $ | -0.6 | $ | -0.8 | $ | -1.5 | $ | -0.1 | $ | -3 | Change in unrealized gain / (loss) | $ | - | $ | 0.3 | $ | -1.2 | $ | -0.9 | |||||||||||||||||||||||||||||||||
Realized gain / (loss) | -0.1 | 0.7 | -3 | -0.1 | -2.5 | Realized gain | 0.1 | 1.2 | 1.6 | 2.9 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | -0.7 | $ | -0.1 | $ | -4.5 | $ | -0.2 | $ | -5.5 | Total | $ | 0.1 | $ | 1.5 | $ | 0.4 | $ | 2.0 | |||||||||||||||||||||||||||||||||
Recorded on Balance Sheet: | Recorded in Income Statement: gain / (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory asset | $ | -0.1 | $ | - | $ | - | $ | - | $ | -0.1 | Revenue | $ | - | $ | - | $ | 0.2 | $ | 0.2 | |||||||||||||||||||||||||||||||||
Purchased Power | - | 1.5 | 0.2 | 1.7 | ||||||||||||||||||||||||||||||||||||||||||||||||
Recorded in Income Statement: gain / (loss) | Fuel | 0.1 | - | - | 0.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Revenue | - | - | 0.7 | - | 0.7 | Total | $ | 0.1 | $ | 1.5 | $ | 0.4 | $ | 2.0 | ||||||||||||||||||||||||||||||||||||||
Purchased Power | - | -0.1 | -5.2 | -0.2 | -5.5 | |||||||||||||||||||||||||||||||||||||||||||||||
Fuel | -0.6 | - | - | - | -0.6 | |||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | -0.7 | $ | -0.1 | $ | -4.5 | $ | -0.2 | $ | -5.5 | ||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Balance Sheets | Gross Amounts Not Offset in the Balance Sheets | |||||||||||||||||||||||||||||||||||||||||||||||||||
$ in millions | Hedging Designation | Gross Fair Value as presented in the Balance Sheets | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | $ in millions | Hedging Designation | Gross Fair Value as presented in the Balance Sheets | Financial Instruments with Same Counterparty in Offsetting Position | Cash Collateral | Net Amount | |||||||||||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term derivative positions (presented in Other current assets) | Short-term derivative positions (presented in Other current assets) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | Cash Flow | $ | 5.6 | $ | -2 | $ | - | $ | 3.6 | Forward power contracts | Cash Flow | $ | 0.5 | $ | -0.2 | $ | - | $ | 0.3 | |||||||||||||||||||||||||||||||||
Forward power contracts | MTM | 5.6 | -3.4 | - | 2.2 | Forward power contracts | MTM | 4.9 | -4.2 | - | 0.7 | |||||||||||||||||||||||||||||||||||||||||
FTRs | MTM | 0.2 | - | - | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term derivative positions (presented in Other deferred assets) | Heating oil futures | MTM | 0.2 | - | -0.2 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | Cash Flow | 0.3 | -0.3 | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | MTM | 3.6 | -0.9 | - | 2.7 | Long-term derivative positions (presented in Other deferred assets) | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 15.1 | $ | -6.6 | $ | - | $ | 8.5 | Forward power contracts | Cash Flow | 3.0 | - | -3 | - | ||||||||||||||||||||||||||||||||||||||
Forward power contracts | MTM | 5.0 | -0.3 | - | 4.7 | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | Total assets | $ | 13.8 | $ | -4.7 | $ | -3.2 | $ | 5.9 | |||||||||||||||||||||||||||||||||||||||||||
Short-term derivative positions (presented in Other current liabilities) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | Cash Flow | $ | 2.1 | $ | -2 | $ | - | $ | 0.1 | Liabilities | ||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | MTM | 7.5 | -3.4 | -4.1 | - | Short-term derivative positions (presented in Other current liabilities) | ||||||||||||||||||||||||||||||||||||||||||||||
FTRs | MTM | 0.6 | - | - | 0.6 | Forward power contracts | Cash Flow | $ | 2.7 | $ | -0.2 | $ | -2.3 | $ | 0.2 | |||||||||||||||||||||||||||||||||||||
Heating oil futures | MTM | 0.4 | - | -0.4 | - | Forward power contracts | MTM | 6.6 | -4.2 | -2.3 | 0.1 | |||||||||||||||||||||||||||||||||||||||||
Natural gas futures | MTM | 0.1 | - | -0.1 | - | |||||||||||||||||||||||||||||||||||||||||||||||
Long-term derivative positions (presented in Other deferred liabilities) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term derivative positions (presented in Other deferred liabilities) | Forward power contracts | MTM | 1.3 | -0.3 | -1 | - | ||||||||||||||||||||||||||||||||||||||||||||||
Forward power contracts | Cash Flow | 0.6 | -0.3 | -0.3 | - | Total liabilities | $ | 10.6 | $ | -4.7 | $ | -5.6 | $ | 0.3 | ||||||||||||||||||||||||||||||||||||||
Forward power contracts | MTM | 1.0 | -0.9 | - | 0.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 12.3 | $ | -6.6 | $ | -4.9 | $ | 0.8 | ||||||||||||||||||||||||||||||||||||||||||||
[1] | (a)The actual amounts that we reclassify from AOCI to earnings related to power can differ from the estimate above due to market price changes. |
Redeemable_Preferred_Stock_Tab
Redeemable Preferred Stock (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Preferred Shares Outstanding | ||||||||||||||||
December 31, 2014 and 2013 | Carrying Value (a) | |||||||||||||||
($ in millions) | ||||||||||||||||
Preferred | Redemption price | Shares | 31-Dec-14 | 31-Dec-13 | ||||||||||||
Stock | ($ per share) | Outstanding | ||||||||||||||
Rate | ||||||||||||||||
DP&L Series A | 3.75% | $ | 102.50 | 93,280 | $ | 7.4 | $ | 7.4 | ||||||||
DP&L Series B | 3.75% | $ | 103.00 | 69,398 | 5.6 | 5.6 | ||||||||||
DP&L Series C | 3.90% | $ | 101.00 | 65,830 | 5.4 | 5.4 | ||||||||||
Total | 228,508 | $ | 18.4 | $ | 18.4 | |||||||||||
DP&L [Member] | ||||||||||||||||
Preferred Shares Outstanding | ||||||||||||||||
December 31, 2014 and 2013 | Par Value | |||||||||||||||
($ in millions) | ||||||||||||||||
$ in millions except per share amounts | Preferred | Redemption price | Shares | 31-Dec-14 | 31-Dec-13 | |||||||||||
Stock | ($ per share) | Outstanding | ||||||||||||||
Rate | ||||||||||||||||
DP&L Series A | 3.75% | $ | 102.50 | 93,280 | $ | 9.3 | $ | 9.3 | ||||||||
DP&L Series B | 3.75% | $ | 103.00 | 69,398 | 7.0 | 7.0 | ||||||||||
DP&L Series C | 3.90% | $ | 101.00 | 65,830 | 6.6 | 6.6 | ||||||||||
Total | 228,508 | $ | 22.9 | $ | 22.9 | |||||||||||
Contractual_Obligations_Commer1
Contractual Obligations, Commercial Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Schedule Of Contractual Obligations And Commercial Commitments | ||||||||||||||||
Payments due in: | ||||||||||||||||
$ in millions | Total | Less than | 3-Feb | 5-Apr | More than | |||||||||||
1 year | years | years | 5 years | |||||||||||||
DPL: | ||||||||||||||||
Coal contracts (a) | 486.2 | 255.6 | 161.2 | 69.4 | - | |||||||||||
Limestone contracts (a) | 18.3 | 6.1 | 12.2 | - | - | |||||||||||
Purchase orders and other contractual obligations | 72.4 | 39.2 | 17.3 | 15.9 | - | |||||||||||
DP&L [Member] | ||||||||||||||||
Schedule Of Contractual Obligations And Commercial Commitments | ||||||||||||||||
Payments due in: | ||||||||||||||||
$ in millions | Total | Less than | 3-Feb | 5-Apr | More than | |||||||||||
1 year | years | years | 5 years | |||||||||||||
DP&L: | ||||||||||||||||
Coal contracts (a) | 486.2 | 255.6 | 161.2 | 69.4 | - | |||||||||||
Limestone contracts (a) | 18.3 | 6.1 | 12.2 | - | - | |||||||||||
Purchase orders and other contractual obligations | 72.4 | 39.2 | 17.3 | 15.9 | - | |||||||||||
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Business Segments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||
Financial Reporting for Reportable Business Segments | ||||||||||||||||||||||||||||||||||||||||||||||||
$ in millions | Utility | Competitive Retail | Other | Adjustments and Eliminations | DPL Consolidated | $ in millions | Utility | Competitive Retail | Other | Adjustments and Eliminations | DPL Consolidated | $ in millions | Utility | Competitive Retail | Other | Adjustments and Eliminations | DPL Consolidated | |||||||||||||||||||||||||||||||
Year ended December 31, 2012 | Year ended December 31, 2014 | Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Revenues from external customers | $ | 1,138.4 | $ | 493.1 | $ | 36.9 | $ | - | $ | 1,668.4 | Revenues from external customers | $ | 1,181.2 | $ | 533.6 | $ | 48.2 | $ | - | $ | 1,763.0 | Revenues from external customers | $ | 1,098.2 | $ | 511.6 | $ | 27.1 | $ | - | $ | 1,636.9 | ||||||||||||||||
Intersegment revenues | 393.4 | - | 3.4 | -396.8 | - | Intersegment revenues | 487.1 | - | 5.5 | -492.6 | - | Intersegment revenues | 453.3 | - | 4.0 | -457.3 | - | |||||||||||||||||||||||||||||||
Total revenues | 1,531.8 | 493.1 | 40.3 | -396.8 | 1,668.4 | Total revenues | 1,668.3 | 533.6 | 53.7 | -492.6 | 1,763.0 | Total revenues | 1,551.5 | 511.6 | 31.1 | -457.3 | 1,636.9 | |||||||||||||||||||||||||||||||
Fuel | 354.9 | - | 7.0 | - | 361.9 | Fuel | 314.9 | - | -10.4 | - | 304.5 | Fuel | 362.5 | - | 4.2 | - | 366.7 | |||||||||||||||||||||||||||||||
Purchased power | 309.5 | 424.5 | 1.5 | -393.4 | 342.1 | Purchased power | 582.4 | 491.8 | 7.5 | -489.1 | 592.6 | Purchased power | 381.9 | 459.7 | 1.1 | -453.7 | 389.0 | |||||||||||||||||||||||||||||||
Amortization of intangibles | - | - | 95.1 | - | 95.1 | Amortization of intangibles | - | - | 1.2 | - | 1.2 | Amortization of intangibles | - | - | 7.1 | - | 7.1 | |||||||||||||||||||||||||||||||
Gross margin (a) | $ | 867.4 | $ | 68.6 | $ | -63.3 | $ | -3.4 | $ | 869.3 | Gross margin (a) | $ | 771.0 | $ | 41.8 | $ | 55.4 | $ | -3.5 | $ | 864.7 | Gross margin (a) | $ | 807.1 | $ | 51.9 | $ | 18.7 | $ | -3.6 | $ | 874.1 | ||||||||||||||||
Depreciation and amortization | $ | 141.3 | $ | 0.4 | $ | -16.3 | $ | - | $ | 125.4 | Depreciation and amortization | $ | 144.8 | $ | 0.8 | $ | -5.8 | $ | - | $ | 139.8 | Depreciation and amortization | $ | 140.2 | $ | 0.6 | $ | -7.9 | $ | - | $ | 132.9 | ||||||||||||||||
Goodwill impairment (Note 5) | $ | - | $ | - | $ | 1,817.2 | $ | - | $ | 1,817.2 | Goodwill impairment (Note 5) | $ | - | $ | - | $ | 135.8 | $ | - | $ | 135.8 | Goodwill impairment (Note 5) | $ | - | $ | - | $ | 306.3 | $ | - | $ | 306.3 | ||||||||||||||||
Fixed asset impairment | $ | 80.8 | $ | - | $ | -80.8 | $ | - | $ | - | Fixed asset impairment | $ | - | $ | - | $ | 11.5 | $ | - | $ | 11.5 | Fixed asset impairment | $ | 86.0 | $ | - | $ | -59.8 | $ | - | $ | 26.2 | ||||||||||||||||
Interest expense | $ | 39.1 | $ | 0.6 | $ | 83.9 | $ | -0.7 | $ | 122.9 | Interest expense | $ | 33.9 | $ | 0.5 | $ | 92.9 | $ | -0.7 | $ | 126.6 | Interest expense | $ | 37.2 | $ | 0.5 | $ | 86.9 | $ | -0.6 | $ | 124.0 | ||||||||||||||||
Income tax expense / (benefit) | $ | 55.1 | $ | 18.1 | $ | -25.5 | $ | - | $ | 47.7 | Income tax expense / (benefit) | $ | 39.7 | $ | 2.0 | $ | -23.7 | $ | - | $ | 18.0 | Income tax expense / (benefit) | $ | 18.6 | $ | 4.2 | $ | -0.5 | $ | - | $ | 22.3 | ||||||||||||||||
Net income / (loss) | $ | 91.2 | $ | 22.8 | $ | -1,725.40 | $ | -118.4 | $ | -1,729.80 | Net income / (loss) | $ | 115.0 | $ | 3.2 | $ | -192.8 | $ | - | $ | -74.6 | Net income / (loss) | $ | 83.6 | $ | 6.6 | $ | -312.2 | $ | - | $ | -222 | ||||||||||||||||
Cash capital expenditures | $ | 195.5 | $ | - | $ | 2.6 | $ | - | $ | 198.1 | Cash capital expenditures | $ | 114.2 | $ | 2.5 | $ | 1.4 | $ | - | $ | 118.1 | Cash capital expenditures | $ | 122.1 | $ | - | $ | 2.3 | $ | - | $ | 124.4 | ||||||||||||||||
Total assets (end of year) | $ | 3,464.2 | $ | 99.2 | $ | 683.9 | $ | - | $ | 4,247.3 | Total assets (end of year) | $ | 3,338.7 | $ | 94.9 | $ | 1,440.1 | $ | -1,295.90 | $ | 3,577.8 | Total assets (end of year) | $ | 3,313.1 | $ | 105.0 | $ | 1,675.8 | $ | -1,372.40 | $ | 3,721.5 | ||||||||||||||||
Comprehensive_Income_Loss_Tabl
Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Components That Constitute The Balance Sheet Amounts In AOCI | |||||||||||||
$ in millions | Gains / (losses) on available-for-sale securities | Gains / (losses) on cash flow hedges | Change in unfunded pension obligation | Total | |||||||||
Balance January 1, 2013 | $ | 0.4 | $ | -2.5 | $ | -1.8 | $ | -3.9 | |||||
Other comprehensive income / (loss) before reclassifications | -1.2 | 19.7 | 4.9 | 23.4 | |||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | 1.4 | 3.4 | 0.3 | 5.1 | |||||||||
Net current period other comprehensive income | 0.2 | 23.1 | 5.2 | 28.5 | |||||||||
Balance December 31, 2013 | 0.6 | 20.6 | 3.4 | 24.6 | |||||||||
Other comprehensive loss before reclassifications | -0.3 | -19 | -14.9 | -34.2 | |||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | 0.2 | 16.9 | - | 17.1 | |||||||||
Net current period other comprehensive loss | -0.1 | -2.1 | -14.9 | -17.1 | |||||||||
Balance December 31, 2014 | $ | 0.5 | $ | 18.5 | $ | -11.5 | $ | 7.5 | |||||
DP&L [Member] | |||||||||||||
Components That Constitute The Balance Sheet Amounts In AOCI | |||||||||||||
$ in millions | Gains / (losses) on available-for-sale securities | Gains / (losses) on cash flow hedges | Change in unfunded pension obligation | Total | |||||||||
Balance January 1, 2013 | $ | 1.0 | $ | 2.6 | $ | -42.3 | $ | -38.7 | |||||
Other comprehensive income / (loss) before reclassifications | -1.6 | 1.0 | 4.8 | 4.2 | |||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | 1.4 | 2.6 | 3.8 | 7.8 | |||||||||
Net current period other comprehensive income / (loss) | -0.2 | 3.6 | 8.6 | 12.0 | |||||||||
Balance December 31, 2013 | 0.8 | 6.2 | -33.7 | -26.7 | |||||||||
Other comprehensive loss before reclassifications | -0.3 | -18.8 | -12.1 | -31.2 | |||||||||
Amounts reclassified from accumulated other comprehensive income / (loss) | 0.2 | 15.4 | - | 15.6 | |||||||||
Net current period other comprehensive loss | -0.1 | -3.4 | -12.1 | -15.6 | |||||||||
Balance December 31, 2014 | $ | 0.7 | $ | 2.8 | $ | -45.8 | $ | -42.3 | |||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
sqmi | sqmi | ||
employee | |||
Service Area Square Miles | 6,000 | 6,000 | |
Approximate number of retail customers | 516,000 | 516,000 | |
DPLER Customers That Are DPL Electric Distribution Customers | 131,000 | ||
Approximate number of DPLER customers | 260,000 | ||
Entity number of employees | 1,182 | ||
Number of coal fired power plants | 5 | 5 | |
Employees under a collective bargaining agreement which expires in October-2011 | 61.00% | ||
Capitalized interest for unregulated generation propety | $1.50 | $1.50 | $4 |
Straight-line depreciation average annual composite basis | 5.30% | 5.80% | 4.80% |
Asset Removal Costs | 119.3 | 115 | 112.1 |
Additional Insurance Claims Cost | 15.6 | 18.8 | |
Investment in trust | 0.3 | 0.4 | |
Notes payable to trust | 14.9 | ||
Electric Generation supplied to customers | 100 | ||
Electric Generation through competitive bid | 100 | ||
DP&L [Member] | |||
Service Area Square Miles | 6,000 | ||
Approximate number of retail customers | 516,000 | ||
Entity number of employees | 1,130 | ||
Number of coal fired power plants | 5 | ||
Employees under a collective bargaining agreement which expires in October-2011 | 64.00% | ||
Capitalized interest for unregulated generation propety | 1.5 | 1.5 | 4 |
Straight-line depreciation average annual composite basis | 2.80% | 4.40% | 4.20% |
Asset Removal Costs | 119.3 | 115 | 112.1 |
Additional Insurance Claims Cost | $15.60 | $18.80 | |
Electric Generation supplied to customers | 100 | ||
Electric Generation through competitive bid | 100 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Summary of Property, Plant, and Equipment) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Public Utility, Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment in service | $2,759.30 | $2,677 | |
Total property, plant and equipment in service, Composite Rate | 5.30% | 5.80% | 4.80% |
Public Utilities, Allowance for Funds Used During Construction, Capitalized Interest | 1.5 | 1.5 | 4 |
DP&L [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment in service | 5,120.70 | 5,105.30 | |
Total property, plant and equipment in service, Composite Rate | 2.80% | 4.40% | 4.20% |
Public Utilities, Allowance for Funds Used During Construction, Capitalized Interest | 1.5 | 1.5 | 4 |
Regulated Operation [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Transmission | 227.5 | 213.1 | |
Distribution | 1,011.70 | 970.1 | |
General | 62.5 | 56.8 | |
Non-depreciable | 61.6 | 60.8 | |
Total property, plant and equipment in service | 1,363.30 | 1,300.80 | |
Transmission, Composite Rate | 4.10% | 4.10% | |
Distribution, Composite Rate | 5.40% | 5.60% | |
General, Composite Rate | 12.40% | 12.10% | |
Regulated Operation [Member] | DP&L [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Transmission | 402.4 | 388.3 | |
Distribution | 1,568 | 1,528.20 | |
General | 116.1 | 111.1 | |
Non-depreciable | 61.6 | 60.8 | |
Total property, plant and equipment in service | 2,148.10 | 2,088.40 | |
Transmission, Composite Rate | 2.30% | 2.30% | |
Distribution, Composite Rate | 3.50% | 3.50% | |
General, Composite Rate | 6.70% | 6.20% | |
Unregulated Operation [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Production / Generation | 1,354.90 | 1,340.80 | |
Other | 21.3 | 15.7 | |
Non-depreciable | 19.8 | 19.7 | |
Total property, plant and equipment in service | 1,396 | 1,376.20 | |
Production/Generation, Composite Rate | 5.40% | 6.20% | |
Other, Composite Rate | 8.10% | 8.90% | |
Unregulated Operation [Member] | DP&L [Member] | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Production / Generation | 2,957.70 | 3,002.10 | |
Non-depreciable | 14.9 | 14.8 | |
Total property, plant and equipment in service | $2,972.60 | $3,016.90 | |
Production/Generation, Composite Rate | 2.40% | 5.20% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Changes in the Liability for Generation AROs) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Balance at January 1 | $24.40 | $23.90 |
Accretion expense | 0.9 | 0.8 |
Additions | 3.6 | |
Settlements | -2 | -0.3 |
Balance at December 31 | 26.9 | 24.4 |
DP&L [Member] | ||
Balance at January 1 | 19.9 | 19.2 |
Accretion expense | 1.1 | 1 |
Additions | 3.6 | |
Settlements | -1.7 | -0.3 |
Balance at December 31 | $22.90 | $19.90 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Changes in the Liability for Transmission and Distribution Asset Removal Costs) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Balance at January 1 | $115 | $112.10 |
Additions | 19.6 | 22 |
Settlements | -15.3 | -19.1 |
Balance at December 31 | 119.3 | 115 |
DP&L [Member] | ||
Balance at January 1 | 115 | 112.1 |
Additions | 19.6 | 22 |
Settlements | -15.3 | -19.1 |
Balance at December 31 | $119.30 | $115 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Related Party Transactions) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
DP&L [Member] | |||
Charges for Services Provided | $30.50 | ||
Charges to the Service Company | 0.1 | ||
Net prepaid/payable to the Service Company | -4.7 | ||
Expense recoveries for services provided to DPLER | 2.2 | 5.2 | 4 |
Deposits received from DPLER | 20.1 | 19.2 | 20.2 |
Premiums paid for Insurance Services provided by MVIC | -2.9 | -2.9 | -2.6 |
DPLER [Member] | |||
Sales to related party | 487.1 | 453.9 | 390.8 |
Service Company [Member] | |||
Charges for Services Provided | 35.8 | ||
Charges to the Service Company | 0.1 | ||
Net prepaid/payable to the Service Company | ($4.70) |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Sale of Receivables) (Details) (Duke Energy [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Duke Energy [Member] | ||
Proceeds from Sale of Other Receivables | $125.60 | $96.10 |
Summary_of_Signficant_Accounti
Summary of Signficant Accounting Policies (Accounting for Taxes Collected from Customers and Remitted to Governmental Authorities) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Excise Taxes Collected | $50.80 | $50.50 | $50.50 |
DP&L [Member] | |||
Excise Taxes Collected | $50.80 | $50.50 | $50.50 |
Supplemental_Financial_Informa2
Supplemental Financial Information (Supplemental Financial Information) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Unbilled revenue | $79.20 | $77.80 |
Customer receivables | 104.8 | 102.7 |
Amounts due from partners in jointly owned stations | 14.2 | 15.8 |
Other | 4 | 8.2 |
Provision for uncollectible accounts | -1.3 | -1.2 |
Total accounts receivable, net | 200.9 | 203.3 |
Fuel and Limestone | 65.3 | 42.7 |
Plant materials and supplies | 33.5 | 38.2 |
Other | 1.4 | 1.8 |
Total inventories, at average cost | 100.2 | 82.7 |
DP&L [Member] | ||
Unbilled revenue | 49 | 47.2 |
Customer receivables | 68.7 | 58.2 |
Amounts due from partners in jointly owned stations | 14.2 | 15.8 |
Other | 21.7 | 27.2 |
Provision for uncollectible accounts | -0.9 | -0.9 |
Total accounts receivable, net | 152.7 | 147.5 |
Fuel and Limestone | 65.3 | 42.9 |
Plant materials and supplies | 32.3 | 37 |
Other | 1.4 | 1.8 |
Total inventories, at average cost | $99 | $81.70 |
Supplemental_Financial_Informa3
Supplemental Financial Information (Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | ($34.20) | $23.40 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 17.1 | 5.1 | -0.6 |
Other comprehensive income / (loss) | -17.1 | 28.5 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 7.5 | 24.6 | -3.9 |
Financial Instruments Reclassification | 0.2 | 1.4 | -0.1 |
DP&L [Member] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -31.2 | 4.2 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 15.6 | 7.8 | -0.8 |
Other comprehensive income / (loss) | -15.6 | 12 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -42.3 | -26.7 | -38.7 |
Financial Instruments Reclassification | 0.2 | 1.4 | -0.1 |
Available-for-sale Securities [Member] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -0.3 | -1.2 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.2 | 1.4 | |
Other comprehensive income / (loss) | -0.1 | 0.2 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0.5 | 0.6 | 0.4 |
Available-for-sale Securities [Member] | DP&L [Member] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -0.3 | -1.6 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.2 | 1.4 | |
Other comprehensive income / (loss) | -0.1 | -0.2 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 0.7 | 0.8 | 1 |
Derivative [Member] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -19 | 19.7 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 16.9 | 3.4 | |
Other comprehensive income / (loss) | -2.1 | 23.1 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 18.5 | 20.6 | -2.5 |
Derivative [Member] | DP&L [Member] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -18.8 | 1 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 15.4 | 2.6 | |
Other comprehensive income / (loss) | -3.4 | 3.6 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2.8 | 6.2 | 2.6 |
Other Pension Plan, Defined Benefit [Member] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -14.9 | 4.9 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.3 | ||
Other comprehensive income / (loss) | -14.9 | 5.2 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -11.5 | 3.4 | -1.8 |
Other Pension Plan, Defined Benefit [Member] | DP&L [Member] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -12.1 | 4.8 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3.8 | ||
Other comprehensive income / (loss) | -12.1 | 8.6 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($45.80) | ($33.70) | ($42.30) |
Supplemental_Financial_Informa4
Supplemental Financial Information (Reclassification out of ACOI) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | $0.40 | $2.10 | ($0.10) |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | -0.2 | -0.7 | |
Reclassification to earnings of available-for-sale securities, net of income tax expense/(benefit) | 0.2 | 1.4 | -0.1 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 26.4 | 5.7 | -1 |
Income tax (expense)/benefit on reclassification of earnings related to derivative activity | -9.5 | -2.3 | 0.5 |
Reclassification of earnings of Cash Flow Hedge | 16.9 | 3.4 | -0.5 |
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity | 0.3 | ||
Other Comprehensive Income (Loss),Net Gain (Loss) Reclassification | 0.3 | ||
Reclassification to earnings of Pension | 0.3 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 17.1 | 5.1 | -0.6 |
Available-for-sale Securities [Member] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.2 | 1.4 | |
Derivative [Member] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 16.9 | 3.4 | |
Other Pension Plan, Defined Benefit [Member] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.3 | ||
Other Income [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0.4 | 2.1 | -0.1 |
Interest Expense [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | -1.3 | 0.2 | |
Revenue [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 28.4 | 2.2 | -0.1 |
Purchased Power [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | -0.7 | 3.5 | -1.1 |
DP&L [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0.4 | 2.1 | -0.1 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | -0.2 | -0.7 | |
Reclassification to earnings of available-for-sale securities, net of income tax expense/(benefit) | 0.2 | 1.4 | -0.1 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 26.9 | 5.1 | -3.8 |
Income tax (expense)/benefit on reclassification of earnings related to derivative activity | -11.5 | -2.5 | 0.4 |
Reclassification of earnings of Cash Flow Hedge | 15.4 | 2.6 | -3.4 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 5.7 | 4.1 | |
Income tax (expense)/benefit on reclassification of earnings related to pension and postretirement activity | -1.9 | -1.4 | |
Other Comprehensive Income (Loss),Net Gain (Loss) Reclassification | 3.8 | 2.7 | |
Reclassification to earnings of Pension | 3.8 | 2.7 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 15.6 | 7.8 | -0.8 |
DP&L [Member] | Available-for-sale Securities [Member] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.2 | 1.4 | |
DP&L [Member] | Derivative [Member] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 15.4 | 2.6 | |
DP&L [Member] | Other Pension Plan, Defined Benefit [Member] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3.8 | ||
DP&L [Member] | Other Income [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0.4 | 2.1 | -0.1 |
DP&L [Member] | Interest Expense [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | -1.1 | -2.1 | -2.5 |
DP&L [Member] | Revenue [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 28.4 | 2.2 | 0.3 |
DP&L [Member] | Purchased Power [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | ($0.40) | $5 | ($1.60) |
Regulatory_Matters_Narrative_D
Regulatory Matters (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 6 Months Ended | 0 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Apr. 14, 2014 | Dec. 31, 2014 | Jun. 30, 2013 | Jun. 12, 2013 | Aug. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Regulatory Assets | $211.70 | $180.50 | |||||
Regulatory Liabilities | 128.5 | 121.1 | |||||
Storm Damage Provision | 22.3 | ||||||
Deferred Storm Costs [Member] | |||||||
Storm Damage Provision | 22.3 | ||||||
Fuel and purchased power recovery costs [Member] | |||||||
Disallowance of regulatory asset | 5.3 | 2.6 | |||||
Reserve for disallowance of regulatory asset | 2.6 | ||||||
DP&L [Member] | |||||||
Regulatory Assets | 211.7 | 180.5 | |||||
Regulatory Liabilities | 128.5 | 121.1 | |||||
DP&L [Member] | Deferred Storm Costs [Member] | |||||||
Storm Damage Provision | 22.3 | 22.3 | |||||
DP&L [Member] | Fuel and purchased power recovery costs [Member] | |||||||
Disallowance of regulatory asset | 5.3 | ||||||
Reserve for disallowance of regulatory asset | $2.60 | $2.60 |
Regulatory_Matters_Schedule_of
Regulatory Matters (Schedule of Regulatory Assets and Liabilities) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Total current regulatory assets | $44.20 | $20.80 |
Total non-current regulatory assets | 167.5 | 159.7 |
Total current regulatory liabilities | 4.4 | |
Total non-current regulatory liabilities | 124.1 | 121.1 |
Estimated Costs of Removal - Regulated Property [Member] | ||
Total non-current regulatory liabilities | 119.3 | 115 |
Fuel and Purchased Power Recovery Costs [Member] | ||
Total current regulatory liabilities | 2.9 | |
Postretirement Benefit [Member] | ||
Total non-current regulatory liabilities | 4.8 | 5.6 |
Other Costs - Liabilities [Member] | ||
Total current regulatory liabilities | 1.5 | |
Total non-current regulatory liabilities | 0.5 | |
DP&L [Member] | ||
Total current regulatory assets | 44.2 | 20.8 |
Total non-current regulatory assets | 167.5 | 159.7 |
Total current regulatory liabilities | 4.4 | |
Total non-current regulatory liabilities | 124.1 | 121.1 |
DP&L [Member] | Estimated Costs of Removal - Regulated Property [Member] | ||
Total non-current regulatory liabilities | 119.3 | 115 |
DP&L [Member] | Postretirement Benefit [Member] | ||
Total non-current regulatory liabilities | 4.8 | 5.6 |
DP&L [Member] | Other Costs - Liabilities [Member] | ||
Total non-current regulatory liabilities | 0.5 | |
Deferred Recoverable Income Taxes [Member] | ||
Type of Recovery | A/C | |
Amortization Through | Ongoing | |
Total non-current regulatory assets | 43.1 | 32.4 |
Deferred Recoverable Income Taxes [Member] | DP&L [Member] | ||
Type of Recovery | A/C | |
Amortization Through | Ongoing | |
Total non-current regulatory assets | 43.1 | 32.4 |
Pension Benefits [Member] | ||
Type of Recovery | A | |
Amortization Through | Ongoing | |
Total non-current regulatory assets | 99.6 | 77.1 |
Pension Benefits [Member] | DP&L [Member] | ||
Type of Recovery | A | |
Amortization Through | Ongoing | |
Total non-current regulatory assets | 99.6 | 77.1 |
Fuel and purchased power recovery costs [Member] | ||
Type of Recovery | B | |
Amortization Through | 2015 | |
Total current regulatory assets | 16.3 | 6.3 |
Fuel and purchased power recovery costs [Member] | DP&L [Member] | ||
Type of Recovery | B | |
Amortization Through | 2015 | |
Total current regulatory assets | 16.3 | 6.3 |
Unamortized Loss on Reacquired Debt [Member] | ||
Type of Recovery | A | |
Amortization Through | Various | |
Total non-current regulatory assets | 9.9 | 10.9 |
Unamortized Loss on Reacquired Debt [Member] | DP&L [Member] | ||
Type of Recovery | A | |
Amortization Through | Various | |
Total non-current regulatory assets | 9.9 | 10.9 |
TCRR, Transmission, Ancillary and Other PJM-related Costs [Member] | ||
Type of Recovery | A | |
Amortization Through | 2015 | |
Total current regulatory assets | 22.3 | |
Deferred Storm Costs [Member] | DP&L [Member] | ||
Type of Recovery | A | |
Amortization Through | 2015 | |
Total current regulatory assets | 22.3 | |
Total non-current regulatory assets | 25.6 | |
Deferred Storm Costs, non-current [Member] | ||
Type of Recovery | D | |
Amortization Through | 2015 | |
Total non-current regulatory assets | 25.6 | |
Deferred Storm Costs, non-current [Member] | DP&L [Member] | ||
Type of Recovery | D | |
CCEM Smart Grid and Advanced Metering Infrastructure Costs [Member] | ||
Type of Recovery | D | |
Amortization Through | Undetermined | |
Total non-current regulatory assets | 6.6 | 6.6 |
CCEM Smart Grid and Advanced Metering Infrastructure Costs [Member] | DP&L [Member] | ||
Type of Recovery | D | |
Amortization Through | Undetermined | |
Total non-current regulatory assets | 6.6 | 6.6 |
CCEM Energy Efficiency Program Costs - current [Member] | ||
Type of Recovery | B | |
Amortization Through | 2015 | |
Total current regulatory assets | 1.8 | 2.6 |
CCEM Energy Efficiency Program Costs - current [Member] | DP&L [Member] | ||
Type of Recovery | B | |
Amortization Through | 2015 | |
Total current regulatory assets | 1.8 | |
Consumer Education Campaign | ||
Type of Recovery | D | |
Amortization Through | Undetermined | |
Total non-current regulatory assets | 3 | 3 |
Consumer Education Campaign | DP&L [Member] | ||
Type of Recovery | D | |
Amortization Through | Undetermined | |
Total non-current regulatory assets | 3 | 3 |
Retail Settlement System Costs [Member] | ||
Type of Recovery | D | |
Amortization Through | Undetermined | |
Total non-current regulatory assets | 3.1 | 3.1 |
Retail Settlement System Costs [Member] | DP&L [Member] | ||
Type of Recovery | D | |
Amortization Through | Undetermined | |
Total non-current regulatory assets | 3.1 | 3.1 |
Other Costs - Assets [Member] | ||
Type of Recovery | D | |
Amortization Through | Undetermined | |
Total non-current regulatory assets | 2.2 | 1 |
Other Costs - Assets [Member] | DP&L [Member] | ||
Type of Recovery | D | |
Amortization Through | Undetermined | |
Total non-current regulatory assets | 2.2 | 1 |
Other Miscellaneous - current [Member] | ||
Type of Recovery | B | |
Amortization Through | 2015 | |
Total current regulatory assets | 1.7 | 4.2 |
Other Miscellaneous - current [Member] | DP&L [Member] | ||
Type of Recovery | B | |
Amortization Through | 2015 | |
Total current regulatory assets | 1.7 | 4.2 |
Total current regulatory liabilities | 1.5 | |
Economic Development Costs [Member] | ||
Type of Recovery | B | |
Amortization Through | 2015 | |
Total current regulatory assets | 2.1 | 7.7 |
Economic Development Costs [Member] | DP&L [Member] | ||
Type of Recovery | B | |
Amortization Through | 2015 | |
Total current regulatory assets | 2.1 | 7.7 |
Transmission Costs [Member] | DP&L [Member] | ||
Type of Recovery | B | |
Amortization Through | 2015 | |
Total current regulatory assets | 2.6 | |
Transmission Costs [Member] | DP&L [Member] | Other Costs - Liabilities [Member] | ||
Total current regulatory liabilities | $2.90 |
Ownership_of_Coalfired_Facilit2
Ownership of Coal-fired Facilities (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2012 | Dec. 31, 2013 |
Construction work in process | $25 | ||
Number Of Generating Facilities | 5 | ||
DP&L [Member] | |||
Undivided ownership interests | 5.00% | ||
Construction work in process | 25 | ||
Conesville [Member] | DP&L [Member] | |||
Impairment of Long-Lived Assets Held-for-use | 80.8 | ||
East Bend Station [Member] | DP&L [Member] | |||
Impairment of Long-Lived Assets Held-for-use | $86 |
Ownership_of_Coalfired_Facilit3
Ownership of Coal-fired Facilities (Ownership Interests) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
MW | MW | |
Construction Work in Process | 25 | |
Conesville [Member] | ||
Production Capacity (MW) | 129 | |
DP&L [Member] | ||
Construction Work in Process | 25 | |
DP&L [Member] | Conesville [Member] | ||
Production Capacity (MW) | 129 | |
DP&L [Member] | East Bend Station [Member] | ||
Production Capacity (MW) | 186 | |
DP&L Share [Member] | Conesville [Member] | ||
Ownership (%) | 16.50% | |
Production Capacity (MW) | 129 | |
DP&L Share [Member] | Killen Station [Member] | ||
Ownership (%) | 67.00% | |
Production Capacity (MW) | 402 | |
DP&L Share [Member] | Miami Fort Units 7 and 8 [Member] | ||
Ownership (%) | 36.00% | |
Production Capacity (MW) | 368 | |
DP&L Share [Member] | Stuart Station [Member] | ||
Ownership (%) | 35.00% | |
Production Capacity (MW) | 808 | |
DP&L Share [Member] | Zimmer Station [Member] | ||
Ownership (%) | 28.10% | |
Production Capacity (MW) | 371 | |
DP&L Share [Member] | Total Jointly-owned Stations [Member] | ||
Production Capacity (MW) | 2,078 | |
DP&L Share [Member] | DP&L [Member] | Conesville [Member] | ||
Ownership (%) | 16.50% | |
Production Capacity (MW) | 129 | |
DP&L Share [Member] | DP&L [Member] | Killen Station [Member] | ||
Ownership (%) | 67.00% | |
Production Capacity (MW) | 402 | |
DP&L Share [Member] | DP&L [Member] | Miami Fort Units 7 and 8 [Member] | ||
Ownership (%) | 36.00% | |
Production Capacity (MW) | 368 | |
DP&L Share [Member] | DP&L [Member] | Stuart Station [Member] | ||
Ownership (%) | 35.00% | |
Production Capacity (MW) | 808 | |
DP&L Share [Member] | DP&L [Member] | Zimmer Station [Member] | ||
Ownership (%) | 28.10% | |
Production Capacity (MW) | 371 | |
DP&L Share [Member] | DP&L [Member] | Total Jointly-owned Stations [Member] | ||
Production Capacity (MW) | 2,078 | |
DP&L Investment [Member] | Conesville [Member] | ||
Gross Plant In Service | 24 | |
Accumulated Depreciation | 2 | |
Construction Work in Process | 1 | |
SCR and FGD Equipment Installed and In Service | Yes | |
DP&L Investment [Member] | Killen Station [Member] | ||
Gross Plant In Service | 308 | |
Accumulated Depreciation | 19 | |
Construction Work in Process | 2 | |
SCR and FGD Equipment Installed and In Service | Yes | |
DP&L Investment [Member] | Miami Fort Units 7 and 8 [Member] | ||
Gross Plant In Service | 214 | |
Accumulated Depreciation | 23 | |
Construction Work in Process | 2 | |
SCR and FGD Equipment Installed and In Service | Yes | |
DP&L Investment [Member] | Stuart Station [Member] | ||
Gross Plant In Service | 219 | |
Accumulated Depreciation | 16 | |
Construction Work in Process | 14 | |
SCR and FGD Equipment Installed and In Service | Yes | |
DP&L Investment [Member] | Zimmer Station [Member] | ||
Gross Plant In Service | 182 | |
Accumulated Depreciation | 35 | |
Construction Work in Process | 6 | |
SCR and FGD Equipment Installed and In Service | Yes | |
DP&L Investment [Member] | Total Jointly-owned Stations [Member] | ||
Gross Plant In Service | 989 | |
Accumulated Depreciation | 101 | |
Construction Work in Process | 25 | |
DP&L Investment [Member] | Transmission (At Varying Percentages) [Member] | ||
Gross Plant In Service | 42 | |
Accumulated Depreciation | 6 | |
DP&L Investment [Member] | DP&L [Member] | Conesville [Member] | ||
Gross Plant In Service | 23 | |
Accumulated Depreciation | 4 | |
Construction Work in Process | 1 | |
SCR and FGD Equipment Installed and In Service | Yes | |
DP&L Investment [Member] | DP&L [Member] | Killen Station [Member] | ||
Gross Plant In Service | 624 | |
Accumulated Depreciation | 314 | |
Construction Work in Process | 2 | |
SCR and FGD Equipment Installed and In Service | Yes | |
DP&L Investment [Member] | DP&L [Member] | Miami Fort Units 7 and 8 [Member] | ||
Gross Plant In Service | 361 | |
Accumulated Depreciation | 162 | |
Construction Work in Process | 2 | |
SCR and FGD Equipment Installed and In Service | Yes | |
DP&L Investment [Member] | DP&L [Member] | Stuart Station [Member] | ||
Gross Plant In Service | 756 | |
Accumulated Depreciation | 323 | |
Construction Work in Process | 14 | |
SCR and FGD Equipment Installed and In Service | Yes | |
DP&L Investment [Member] | DP&L [Member] | Zimmer Station [Member] | ||
Gross Plant In Service | 1,101 | |
Accumulated Depreciation | 675 | |
Construction Work in Process | 6 | |
SCR and FGD Equipment Installed and In Service | Yes | |
DP&L Investment [Member] | DP&L [Member] | Total Jointly-owned Stations [Member] | ||
Gross Plant In Service | 2,963 | |
Accumulated Depreciation | 1,540 | |
Construction Work in Process | 25 | |
DP&L Investment [Member] | DP&L [Member] | Transmission (At Varying Percentages) [Member] | ||
Gross Plant In Service | 98 | |
Accumulated Depreciation | 62 |
Goodwill_And_Other_Intangible_1
Goodwill And Other Intangible Asset (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Oct. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Mar. 31, 2014 |
Goodwill (Note 5) | $317 | $452.80 | ||||
Goodwill, Impairment Loss | 306.3 | |||||
Goodwill Allocated to DP&L Reporting Unit | 2.4 | |||||
Effective Income Tax Rate, Continuing Operations | -31.80% | -11.20% | -2.80% | |||
Parent Company [Member] | ||||||
Goodwill, Impairment Loss | 1,817.20 | |||||
DP&L [Member] | ||||||
Goodwill (Note 5) | 317 | 317 | 623.3 | |||
Goodwill, Impairment Loss | -306.3 | |||||
DPLER [Member] | ||||||
Goodwill (Note 5) | 135.8 | 135.8 | 135.8 | |||
Goodwill, Impairment Loss | ($135.80) | $135.80 |
Goodwill_And_Other_Intangible_2
Goodwill And Other Intangible Assets (Intangible Assets) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Gross Balance, Subject to Amortization | $66.50 | [1] | $67.20 | [1] |
Amortization of intangibles | -35.2 | [1] | -30.5 | [1] |
Net Balance, Subject to Amortization | 31.3 | [1] | 35.5 | [1] |
Intangible Assets, Gross (Excluding Goodwill) | 72.6 | 73.3 | ||
Intangible Assets, Net (Excluding Goodwill) | 37.4 | |||
Parent Company [Member] | ||||
Amortization of intangibles | 1.2 | |||
Customer Contracts [Member] | ||||
Gross Balance, Subject to Amortization | 27 | 27 | ||
Amortization of intangibles | -27 | -25.8 | ||
Customer Relationships [Member] | ||||
Gross Balance, Subject to Amortization | 31.8 | [2] | 31.8 | [2] |
Amortization of intangibles | -6.9 | [2] | -4.6 | [2] |
Net Balance, Subject to Amortization | 24.9 | [2] | 27.2 | [2] |
Other Intangible Assets [Member] | ||||
Gross Balance, Subject to Amortization | 7.7 | [3] | 8.4 | [3] |
Amortization of intangibles | -1.3 | [3] | -0.1 | [3] |
Net Balance, Subject to Amortization | 6.4 | [3] | 8.3 | [3] |
Trademarks [Member] | ||||
Gross Balance, Not Subject to Amortization | 6.1 | 6.1 | ||
Net Balance, Not Subject to Amortization | $6.10 | $6.10 | ||
[1] | (c)Consists of various intangible assets including renewable energy credits, emission allowances, and other intangibles, none of which are individually significant. | |||
[2] | Represents above market contracts that DPLER has with third-party customers existing as of the Merger date. | |||
[3] | (b)Represents relationships DPLER has with third-party customers as of the Merger date, where DPLER has regular contact with the customer, and the customer has the ability to make direct contact with DPLER. |
Goodwill_And_Other_Intangible_3
Goodwill And Other Intangible Assets (Intangible Assets Acquired) (Details) (Renewable Energy Certificates [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Renewable Energy Certificates [Member] | |
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | $7.70 |
Goodwill_And_Other_Intangible_4
Goodwill And Other Intangible Assets (Estimated Amortization) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Estimated Amortization Expense, 2015 | $8 |
Estimated Amortization Expense, 2016 | 6.6 |
Estimated Amortization Expense, 2017 | 2.7 |
Estimated Amortization Expense, 2018 | 2.3 |
Estimated Amortization Expense, 2019 | 2.1 |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Estimated Amortization Expense, 2015 | 3.8 |
Estimated Amortization Expense, 2016 | 3.1 |
Estimated Amortization Expense, 2017 | 2.7 |
Estimated Amortization Expense, 2018 | 2.3 |
Estimated Amortization Expense, 2019 | 2.1 |
Other Intangible Assets [Member] | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Estimated Amortization Expense, 2015 | 4.2 |
Estimated Amortization Expense, 2016 | $3.50 |
Goodwill_And_Other_Intangible_5
Goodwill And Other Intangible Assets (Change In Goodwill) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Oct. 01, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
Goodwill, Impairment Loss | $306.30 | ||||
Goodwill, Total | 317 | 452.8 | |||
Parent Company [Member] | |||||
Goodwill, Impairment Loss | 1,817.20 | ||||
DPL [Member] | |||||
Goodwill, Beginning Balance | 452.8 | 759.1 | |||
Goodwill, Gross | 2,576.30 | 2,576.30 | 2,576.30 | ||
Goodwill, Impairment Loss | -135.8 | -306.3 | |||
Goodwill, Impaired, Accumulated Impairment Loss | -1,817.20 | -2,259.30 | -2,123.50 | ||
Goodwill, Total | 317 | 452.8 | |||
DP&L [Member] | |||||
Goodwill, Beginning Balance | 623.3 | ||||
Goodwill, Gross | 2,440.50 | 2,440.50 | 2,440.50 | ||
Goodwill, Impairment Loss | -306.3 | ||||
Goodwill, Impaired, Accumulated Impairment Loss | -1,817.20 | -2,123.50 | -2,123.50 | ||
Goodwill, Total | 317 | 317 | |||
DPLER [Member] | |||||
Goodwill, Beginning Balance | 135.8 | 135.8 | |||
Goodwill, Gross | 135.8 | 135.8 | 135.8 | ||
Goodwill, Impairment Loss | -135.8 | 135.8 | |||
Goodwill, Impaired, Accumulated Impairment Loss | -135.8 | ||||
Goodwill, Total | $135.80 |
Debt_Obligations_Narrative_Det
Debt Obligations (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
Oct. 03, 2011 | Dec. 31, 2014 | 10-May-13 | Dec. 31, 2013 | Oct. 31, 2014 | Dec. 04, 2008 | Mar. 31, 2014 | Mar. 01, 2011 | Sep. 19, 2013 | Sep. 06, 2014 | Oct. 06, 2014 | |
Additional principal amount of senior notes to be raised | $1,250,000,000 | ||||||||||
Letters of credit outstanding | 2,300,000 | ||||||||||
Collateralized debt | 100,000,000 | ||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 97,700,000 | ||||||||||
Long-term Debt, Gross | 2,139,600,000 | 2,284,200,000 | |||||||||
Current portion - long-term debt | 20,100,000 | 10,200,000 | |||||||||
DP&L [Member] | |||||||||||
Collateralized debt | 100,000,000 | ||||||||||
Long-term Debt, Gross | 877,000,000 | 876,900,000 | |||||||||
Current portion - long-term debt | 100,000 | 200,000 | |||||||||
Notes Payable, Related Parties | 15,000,000 | ||||||||||
DP&L [Member] | Related Party Notes Payable [Member] | |||||||||||
Debt instrument interest percentage | 2.00% | ||||||||||
U.S. Government note maturing in February 2061 - 4.20% [Member] | |||||||||||
Debt Instrument, Maturity Date Range, End | 1-Feb-61 | ||||||||||
Long-term Debt, Gross | 18,100,000 | 18,300,000 | 18,700,000 | ||||||||
Debt instrument interest percentage | 4.20% | 4.20% | |||||||||
U.S. Government note maturing in February 2061 - 4.20% [Member] | DP&L [Member] | |||||||||||
Debt Instrument, Maturity Date Range, End | 1-Feb-61 | ||||||||||
Long-term Debt, Gross | 18,100,000 | 18,200,000 | 18,700,000 | ||||||||
Debt instrument interest percentage | 4.20% | 4.20% | |||||||||
Revolving Credit Agreement with Bank Group [Member] | |||||||||||
Unsecured revolving credit agreement | 100,000,000 | ||||||||||
Increase/decrease additional facility | 100,000,000 | ||||||||||
Letter of credit sublimit | 100,000,000 | ||||||||||
Revolving Credit Agreeement with Bank Group Expiring 2018 [Member] | |||||||||||
Unsecured revolving credit agreement | 300,000,000 | ||||||||||
Increase/decrease additional facility | 50,000,000 | ||||||||||
Letter of credit sublimit | 100,000,000 | ||||||||||
Letters of credit outstanding | 700,000 | ||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 299,300,000 | ||||||||||
Revolving Credit Agreeement with Bank Group Expiring 2018 [Member] | DP&L [Member] | |||||||||||
Unsecured revolving credit agreement | 300,000,000 | ||||||||||
Increase/decrease additional facility | 100,000,000 | ||||||||||
Letter of credit sublimit | 100,000,000 | ||||||||||
Letters of credit outstanding | 700,000 | ||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 299,300,000 | ||||||||||
Five Year Senior Unsecured Notes at 6.50% maturing on October 15, 2016 [Member] | |||||||||||
Additional principal amount of senior notes to be raised | 450,000,000 | ||||||||||
Debt Instrument, Maturity Date Range, End | 1-Oct-16 | ||||||||||
Long-term Debt, Gross | 130,000,000 | 430,000,000 | |||||||||
Repayments of debt | 20,000,000 | ||||||||||
Debt instrument interest percentage | 6.50% | 6.50% | 6.50% | ||||||||
Ten Year Senior Unsecured Notes at 7.25% maturing at October 15, 2021 [Member] | |||||||||||
Additional principal amount of senior notes to be raised | 800,000,000 | ||||||||||
Debt Instrument, Maturity Date Range, End | 1-Oct-21 | ||||||||||
Long-term Debt, Gross | 780,000,000 | 780,000,000 | |||||||||
Repayments of debt | 20,000,000 | ||||||||||
Debt instrument interest percentage | 7.25% | 7.25% | 7.25% | ||||||||
Unsecured Term Loan Agreement [Member] | |||||||||||
Long-term Debt, Gross | 200,000,000 | ||||||||||
Term Loan Amortization Year 1 | 5.00% | ||||||||||
Repayments of debt | 200,000,000 | ||||||||||
First Mortgage Bonds Maturing in September 2016 - 1.9% | |||||||||||
Debt Instrument, Maturity Date Range, End | 1-Sep-16 | ||||||||||
Long-term Debt, Gross | 445,000,000 | 445,000,000 | 445,000,000 | ||||||||
Debt instrument interest percentage | 1.88% | ||||||||||
First Mortgage Bonds Maturing in September 2016 - 1.9% | DP&L [Member] | |||||||||||
Debt Instrument, Maturity Date Range, End | 1-Sep-16 | ||||||||||
Long-term Debt, Gross | 445,000,000 | 445,000,000 | |||||||||
Debt instrument interest percentage | 1.88% | ||||||||||
Note to DPL Capital Trust II Maturing in September 2031 - 8.125% [Member] | |||||||||||
Debt Instrument, Maturity Date Range, End | 1-Sep-31 | ||||||||||
Long-term Debt, Gross | 15,600,000 | 20,600,000 | |||||||||
Repayments of debt | 5,000,000 | ||||||||||
Debt instrument interest percentage | 8.13% | ||||||||||
Pollution control series maturing in November 2040 - variable rates: 0.04% - 0.26% and 0.06% - 0.32% [Member] | |||||||||||
Debt Instrument, Maturity Date Range, End | 1-Nov-40 | ||||||||||
Long-term Debt, Gross | 100,000,000 | 100,000,000 | |||||||||
Pollution control series maturing in November 2040 - variable rates: 0.04% - 0.26% and 0.06% - 0.32% [Member] | DP&L [Member] | |||||||||||
Debt Instrument, Maturity Date Range, End | 1-Nov-40 | ||||||||||
Long-term Debt, Gross | 100,000,000 | 100,000,000 | |||||||||
Bank Term Loan maturing in May 2018 [Member] | |||||||||||
Debt Instrument, Maturity Date Range, End | 1-May-18 | ||||||||||
Loans Payable, Noncurrent | 160,000,000 | ||||||||||
Long-term Debt, Gross | 140,000,000 | 180,000,000 | |||||||||
Current portion - long-term debt | 20,000,000 | 10,000,000 | |||||||||
Debt instrument interest percentage | 2.41% | ||||||||||
Senior Unsecured Notes at 6.50% maturing on October 15, 2016 [Member] | |||||||||||
Debt Instrument, Face Amount | 280,000,000 | ||||||||||
Senior Unsecured Notes at 6.50% maturing on October 15, 2016 [Member] | Tender offer [Member] | |||||||||||
Debt Instrument, Face Amount | 300,000,000 | ||||||||||
Senior Unsecured notes maturing October 2019 at 6.75% [Member] | |||||||||||
Debt instrument interest percentage | 6.75% | ||||||||||
Debt Instrument, Face Amount | $200,000,000 |
Debt_Obligations_Longterm_Debt
Debt Obligations (Long-term Debt) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 19, 2013 | Mar. 01, 2011 | Oct. 03, 2011 |
Long-term debt, gross | $2,139.60 | $2,284.20 | ||||
Total long-term debt at subsidary | 874.7 | 874.6 | ||||
Obligation for capital lease | -2.8 | -3.1 | ||||
Unamortized debt discount | -0.7 | -1 | ||||
DP&L [Member] | ||||||
Long-term debt, gross | 877 | 876.9 | ||||
Unamortized debt discount | -0.5 | -0.7 | ||||
First Mortgage Bonds Maturing in September 2016 - 1.9% | ||||||
Long-term debt, gross | 445 | 445 | 445 | |||
Debt instrument maturity year | 1-Sep-16 | |||||
Debt instrument interest percentage | 1.88% | |||||
First Mortgage Bonds Maturing in September 2016 - 1.9% | DP&L [Member] | ||||||
Long-term debt, gross | 445 | 445 | ||||
Debt instrument maturity year | 1-Sep-16 | |||||
Debt instrument interest percentage | 1.88% | |||||
Pollution Control Series Maturing in January 2028 - 4.70% [Member] | ||||||
Long-term debt, gross | 35.3 | 35.3 | ||||
Debt instrument maturity year | 1-Jan-28 | |||||
Debt instrument interest percentage | 4.70% | |||||
Pollution Control Series Maturing in January 2028 - 4.70% [Member] | DP&L [Member] | ||||||
Long-term debt, gross | 35.3 | 35.3 | ||||
Debt instrument maturity year | 1-Jan-28 | |||||
Debt instrument interest percentage | 4.70% | |||||
Pollution Control Series Maturing in January 2034 - 4.80% [Member] | ||||||
Long-term debt, gross | 179.1 | 179.1 | ||||
Debt instrument maturity year | 1-Jan-34 | |||||
Debt instrument interest percentage | 4.80% | |||||
Pollution Control Series Maturing in January 2034 - 4.80% [Member] | DP&L [Member] | ||||||
Long-term debt, gross | 179.1 | 179.1 | ||||
Debt instrument maturity year | 1-Jan-34 | |||||
Debt instrument interest percentage | 4.80% | |||||
Pollution Control Series Maturing in September 2036 - 4.80% [Member] | ||||||
Long-term debt, gross | 100 | 100 | ||||
Debt instrument maturity year | 1-Sep-36 | |||||
Debt instrument interest percentage | 4.80% | |||||
Pollution Control Series Maturing in September 2036 - 4.80% [Member] | DP&L [Member] | ||||||
Long-term debt, gross | 100 | 100 | ||||
Debt instrument maturity year | 1-Sep-36 | |||||
Debt instrument interest percentage | 4.80% | |||||
Pollution control series maturing in November 2040 - variable rates: 0.04% - 0.26% and 0.06% - 0.32% [Member] | ||||||
Long-term debt, gross | 100 | 100 | ||||
Debt instrument maturity year | 1-Nov-40 | |||||
Debt instrument interest percentage minimum | 0.04% | 0.04% | ||||
Debt instrument interest percentage maximum | 0.15% | 0.26% | ||||
Pollution control series maturing in November 2040 - variable rates: 0.04% - 0.26% and 0.06% - 0.32% [Member] | DP&L [Member] | ||||||
Long-term debt, gross | 100 | 100 | ||||
Debt instrument maturity year | 1-Nov-40 | |||||
Debt instrument interest percentage minimum | 0.04% | 0.04% | ||||
Debt instrument interest percentage maximum | 0.15% | 0.26% | ||||
U.S. Government note maturing in February 2061 - 4.20% [Member] | ||||||
Long-term debt, gross | 18.1 | 18.3 | 18.7 | |||
Debt instrument maturity year | 1-Feb-61 | |||||
Debt instrument interest percentage | 4.20% | 4.20% | ||||
U.S. Government note maturing in February 2061 - 4.20% [Member] | DP&L [Member] | ||||||
Long-term debt, gross | 18.1 | 18.2 | 18.7 | |||
Debt instrument maturity year | 1-Feb-61 | |||||
Debt instrument interest percentage | 4.20% | 4.20% | ||||
Debt instrument interest percentage minimum | 4.20% | |||||
Bank Term Loan maturing in May 2018 [Member] | ||||||
Long-term debt, gross | 140 | 180 | ||||
Debt instrument maturity year | 1-May-18 | |||||
Debt instrument interest percentage | 2.41% | |||||
Debt instrument interest percentage minimum | 2.41% | 2.42% | ||||
Debt instrument interest percentage maximum | 2.42% | 2.45% | ||||
Note to DPL Capital Trust II Maturing in September 2031 - 8.125% [Member] | ||||||
Long-term debt, gross | 15.6 | 20.6 | ||||
Debt instrument maturity year | 1-Sep-31 | |||||
Debt instrument interest percentage | 8.13% | |||||
Five Year Senior Unsecured Notes at 6.50% maturing on October 15, 2016 [Member] | ||||||
Long-term debt, gross | 130 | 430 | ||||
Debt instrument maturity year | 1-Oct-16 | |||||
Debt instrument interest percentage | 6.50% | 6.50% | 6.50% | |||
Five Year Senior Unsecured Notes at 6.75% maturing October 15, 2019 [Member] | ||||||
Long-term debt, gross | 200 | |||||
Debt instrument maturity year | 1-Oct-19 | |||||
Debt instrument interest percentage | 6.75% | |||||
Ten Year Senior Unsecured Notes at 7.25% maturing at October 15, 2021 [Member] | ||||||
Long-term debt, gross | $780 | $780 | ||||
Debt instrument maturity year | 1-Oct-21 | |||||
Debt instrument interest percentage | 7.25% | 7.25% | 7.25% |
Debt_Obligations_Current_porti
Debt Obligations (Current portion - Long-term Debt) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 01, 2011 |
Obligation for capital lease | 0.1 | |||
Current portion - long-term debt | 20.1 | 10.2 | ||
DP&L [Member] | ||||
Obligation for capital lease | 0.1 | |||
Current portion - long-term debt | 0.1 | 0.2 | ||
Pollution control series maturing in November 2040 - variable rates: 0.04% - 0.26% and 0.06% - 0.32% [Member] | ||||
Debt instrument maturity year | 1-Nov-40 | |||
Debt instrument interest percentage minimum | 0.04% | 0.04% | ||
Debt instrument interest percentage maximum | 0.15% | 0.26% | ||
Pollution control series maturing in November 2040 - variable rates: 0.04% - 0.26% and 0.06% - 0.32% [Member] | DP&L [Member] | ||||
Debt instrument maturity year | 1-Nov-40 | |||
Debt instrument interest percentage minimum | 0.04% | 0.04% | ||
Debt instrument interest percentage maximum | 0.15% | 0.26% | ||
U.S. Government note maturing in February 2061 - 4.20% [Member] | ||||
Debt instrument maturity year | 1-Feb-61 | |||
Debt instrument interest percentage | 4.20% | 4.20% | ||
U.S. Government note maturing in February 2061 - 4.20%, current | 0.1 | 0.1 | ||
U.S. Government note maturing in February 2061 - 4.20% [Member] | DP&L [Member] | ||||
Debt instrument maturity year | 1-Feb-61 | |||
Debt instrument interest percentage | 4.20% | 4.20% | ||
Debt instrument interest percentage minimum | 4.20% | |||
U.S. Government note maturing in February 2061 - 4.20%, current | 0.1 | 0.1 | ||
Bank Term Loan maturing in May 2018 [Member] | ||||
Current portion - long-term debt | 20 | 10 | ||
Debt instrument maturity year | 1-May-18 | |||
Debt instrument interest percentage | 2.41% | |||
Debt instrument interest percentage minimum | 2.41% | 2.42% | ||
Debt instrument interest percentage maximum | 2.42% | 2.45% |
Debt_Obligations_Longterm_Debt1
Debt Obligations (Long-term Debt Maturities) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Due within one year | $20.10 |
Due within two years | 615.1 |
Due within three years | 40.1 |
Due within four years | 60.1 |
Due within five years | 200.1 |
Thereafter | 1,227.70 |
Total Maturities | 2,163.20 |
Unamortized discounts and premiums, net | 3.5 |
Total | 2,159.70 |
DP&L [Member] | |
Due within one year | 0.1 |
Due within two years | 445.1 |
Due within three years | 0.1 |
Due within four years | 0.1 |
Due within five years | 0.1 |
Thereafter | 432.1 |
Total Maturities | 877.6 |
Unamortized discounts and premiums, net | -0.5 |
Total | $877.10 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Estimated annual effective income tax rate | 35.00% | ||
Tax Refund | $19.90 | ||
Decrease in income tax expense | 1.2 | ||
Effective income tax rates | -31.80% | -11.20% | -2.80% |
Unrecognized Tax Benefits Due To Uncertainity In Timing Of Deductibility | 0.9 | ||
Deferred tax assets related to state and local tax net operating loss carryforwards, net of related valuation allowances | 27.1 | 20.7 | |
Deferred Tax Assets Operating Loss Carryforwards State And Local Valuation Allowances | 21.9 | 16.6 | |
Tax expense (benefit) interest and penalties recorded in the statements of results of operations | 0.4 | 0 | 1.2 |
DP&L [Member] | |||
Estimated annual effective income tax rate | 35.00% | ||
Tax Refund | 19.9 | ||
Decrease in income tax expense | 1.2 | ||
Additional tax increase / decrease | 0.7 | 1.1 | 7.6 |
Unrecognized Tax Benefits Due To Uncertainity In Timing Of Deductibility | $0.90 |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Tax Expense) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Accrual (settlement) for open tax years | ($6.60) | ($8.80) | ||||
DP&L [Member] | ||||||
Federal income tax | 53.8 | 35.5 | 50.9 | |||
State income taxes, net of federal effect | 1.2 | 0.3 | -2 | |||
Depreciation of AFUDC - Equity | -2.7 | -2.5 | 3 | |||
Investment tax credit amortized | -2.5 | -2.5 | -2.5 | |||
Section 199 - domestic production deduction | -4.6 | -4.1 | -2.5 | |||
Non-deductible merger costs | 0.6 | |||||
Other, net | 1.1 | 0.7 | 7.6 | |||
Total tax expense | 39.7 | 18.6 | 55.1 | |||
Federal - Current | 34.1 | 38.6 | 52.1 | |||
State and Local - Current | 0.5 | -0.1 | 1 | |||
Total Current | 34.6 | 38.5 | 53.1 | |||
Federal - Deferred | 4.1 | -20.4 | 4.7 | |||
State and Local - Deferred | 1 | 0.5 | -2.7 | |||
Total Deferred | 5.1 | -19.9 | 2 | |||
Successor [Member] | ||||||
Federal income tax | -19.8 | -69.9 | -588.7 | |||
State income taxes, net of federal effect | 1.2 | 1.7 | 3.5 | |||
Depreciation of AFUDC - Equity | -3.4 | -3.2 | -2.4 | |||
Investment tax credit amortized | -0.5 | -0.5 | -0.3 | |||
Section 199 - domestic production deduction | -1.1 | -4.1 | -2.1 | |||
Non-deductible merger-related compensation | 0.6 | |||||
Non-deductible goodwill impairment | 47.5 | 107.2 | 636 | |||
Accrual (settlement) for open tax years | -6.6 | -8.8 | -0.1 | |||
Other, net | 0.7 | -0.1 | 1.2 | |||
Total tax expense | 18 | 22.3 | 47.7 | |||
Federal - Current | -0.1 | [1] | 1.8 | [1] | 48.6 | [1] |
State and Local - Current | 0.9 | 0.7 | 1.2 | |||
Total Current | 0.8 | 2.5 | 49.8 | |||
Federal - Deferred | 16.6 | 18.1 | -4.9 | |||
State and Local - Deferred | 0.6 | 1.7 | 2.8 | |||
Deferred income taxes | 17.7 | 24 | -4.2 | |||
Total Deferred | 17.2 | 19.8 | -2.1 | |||
Successor [Member] | Parent Company [Member] | ||||||
Total tax expense | $18 | $22.30 | $47.70 | |||
[1] | (b)Includes expense of $0.4 million, $0.0 million and benefits of $1.2 million in the years ended December 31, 2014 2013, and 2012, respectively, of income tax related to adjustments from prior years. |
Income_Taxes_Components_of_Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Depreciation / property basis | ($548.20) | ($531.50) | ||
Income taxes recoverable | -14.8 | -11.4 | ||
Regulatory assets | -18 | -15.6 | ||
Investment tax credit | 1.5 | 1 | ||
Intangibles | -7 | -2 | ||
Compensation and employee benefits | 3.2 | -3.9 | ||
Long-term debt | -1.5 | -1.7 | ||
Other | -2.5 | 0.8 | ||
Net noncurrent (liabilities) | -587.3 | [1] | -564.3 | [1] |
Other | 1.1 | [2] | -2.6 | [2] |
Net current assets | 1.1 | -2.6 | ||
Deferred tax assets related to state and local tax net operating loss carryforwards, net of related valuation allowances | 27.1 | 20.7 | ||
DP&L [Member] | ||||
Depreciation / property basis | -618.8 | -607.1 | ||
Income taxes recoverable | -14.8 | -11.4 | ||
Regulatory assets | -18 | -15.6 | ||
Investment tax credit | 8.6 | 8.8 | ||
Compensation and employee benefits | 5.2 | -0.2 | ||
Other | -12.2 | -6.8 | ||
Net noncurrent (liabilities) | -650 | -632.3 | ||
Other | 0.5 | -5 | ||
Net current assets | $0.50 | ($5) | ||
[1] | (c)The Other non-current liabilities caption includes deferred tax assets of $27.1 million in 2014 and $20.7 million in 2013 related to state and local tax net operating loss carryforwards, net of related valuation allowances of $21.9 million in 2014 and $16.6 million in 2013. These net operating loss carryforwards expire from 2014 to 2027. | |||
[2] | (d)Amounts are included within Other prepayments and current assets and Other current liabilities on the Consolidated Balance Sheets of DPL. |
Income_Taxes_Tax_or_Benefit_cr
Income Taxes (Tax or Benefit credited to AOCI) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Tax Expense (Benefit) | $15.40 | ($2.50) | |
DP&L [Member] | |||
Other Tax Expense (Benefit) | -6 | 7 | -0.8 |
Successor [Member] | |||
Other Tax Expense (Benefit) | ($9.10) |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
DP&L [Member] | |||
Balance at beginning of year | $8.80 | $18.30 | |
Tax positions taken during prior periods | 2.8 | -0.1 | |
Tax positions taken during current period | -2.5 | ||
Lapse of applicable statute of limitations | -8.6 | -6.9 | |
Balance at end of year | 3 | 8.8 | |
Successor [Member] | |||
Balance at beginning of year | 8.8 | ||
Tax positions taken during prior periods | 2.8 | -0.1 | |
Tax positions taken during current period | -2.5 | ||
Lapse of applicable statute of limitations | -8.6 | -6.9 | |
Balance at end of year | 3 | 8.8 | |
Predecessor [Member] | |||
Balance at beginning of year | 18.3 | ||
Balance at end of year | $18.30 |
Pension_and_Postretirement_Ben2
Pension and Postretirement Benefits (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation for our defined benefit pension plans | $431 | $359.80 | ||
Change in Discount Rate | 25.00% | |||
Funded status of defined benefit pension plan | 113.86% | |||
Defined Benefit Plan, Fair Value of Plan Assets, Other Investments | 49.5 | |||
Defined Benefit Plan, Fair Value of Plan Assets | 371.7 | |||
DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation for our defined benefit pension plans | 431 | 359.8 | ||
Funded status of defined benefit pension plan | 113.86% | |||
Defined Benefit Plan, Fair Value of Plan Assets, Other Investments | 49.5 | 46.1 | ||
Defined Benefit Plan, Fair Value of Plan Assets | 371.7 | 349.1 | ||
Cash Balance Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan employee vested percentage | 100.00% | |||
Defined benefit plan employee vested minimum period, years | 3 years | |||
Defined Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan employee vested percentage | 100.00% | |||
Defined benefit plan employee vested minimum period, years | 5 years | |||
Defined Benefit Plan [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan employee vested percentage | 100.00% | |||
Defined benefit plan employee vested minimum period, years | 5 years | |||
Management Employees [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan employee vested percentage | 100.00% | |||
Defined benefit plan employee vested minimum period, years | 3 years | |||
Pension [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected rate of return on plan assets | 6.50% | 6.75% | 6.75% | 7.00% |
Change in Expected rate of return on plan assets | 1.00% | |||
Discount rate | 4.86% | 4.04% | 4.88% | |
Discount rate for obligations | 4.02% | 4.86% | 4.04% | |
Estimated contribution to the defined benefit plans next year | 0.4 | |||
Defined Benefit Plan, Fair Value of Plan Assets, Other Investments | 46.1 | |||
Defined Benefit Plan, Fair Value of Plan Assets | 371.7 | 349.1 | 361.4 | |
Pension [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected rate of return on plan assets | 6.50% | 6.75% | 6.75% | 7.00% |
Change in Expected rate of return on plan assets | 1.00% | |||
Discount rate | 4.86% | 4.04% | 4.88% | |
Change in Discount Rate | 25.00% | |||
Discount rate for obligations | 4.02% | 4.86% | 4.04% | |
Estimated contribution to the defined benefit plans next year | 0.4 | |||
Defined Benefit Plan, Fair Value of Plan Assets | 371.7 | 349.1 | 361.4 | |
Postretirement [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected rate of return on plan assets | 4.50% | 6.00% | 6.00% | 6.00% |
Discount rate | 4.51% | 4.58% | 4.62% | |
Discount rate for obligations | 3.71% | 4.58% | 3.75% | |
Estimated contribution to the defined benefit plans next year | 1.9 | |||
Defined Benefit Plan, Fair Value of Plan Assets | 3.3 | 3.7 | 4.2 | |
Postretirement [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected rate of return on plan assets | 4.50% | 6.00% | 6.00% | 6.00% |
Discount rate | 4.51% | 4.58% | 4.62% | |
Discount rate for obligations | 3.71% | 4.58% | 3.75% | |
Estimated contribution to the defined benefit plans next year | 1.9 | |||
Defined Benefit Plan, Fair Value of Plan Assets | 3.3 | 3.7 | 4.2 | |
Change in Expected Rate of Return [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Increase decrease In Pension Expense | 3.5 | |||
Change in Expected Rate of Return [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Increase decrease In Pension Expense | 3.5 | |||
Change in Discount Rate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Change in Discount Rate | 25.00% | |||
Increase decrease In Pension Expense | 0.5 | |||
Change in Discount Rate [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Increase decrease In Pension Expense | 0.5 | |||
Decrease in Discount Rate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Increase decrease In Pension Expense | 0.8 | |||
Decrease in Discount Rate [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Increase decrease In Pension Expense | $0.80 | |||
Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets, fixed income securities, minimum | 2.00% | |||
Target allocations for plan assets, fixed income securities, maximum | 41.00% | |||
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Minimum | 2.00% | |||
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Maximum | 41.00% | |||
Equity Securities [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets, fixed income securities, minimum | 2.00% | |||
Target allocations for plan assets, fixed income securities, maximum | 41.00% | |||
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Minimum | 2.00% | |||
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Maximum | 41.00% | |||
Fixed Income Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets, fixed income securities, minimum | 60.00% | |||
Target allocations for plan assets, fixed income securities, maximum | 82.00% | |||
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Minimum | 60.00% | |||
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Maximum | 82.00% | |||
Fixed Income Securities [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets, fixed income securities, minimum | 60.00% | |||
Target allocations for plan assets, fixed income securities, maximum | 82.00% | |||
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Minimum | 60.00% | |||
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Maximum | 82.00% | |||
Other Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets, fixed income securities, minimum | 8.00% | |||
Target allocations for plan assets, fixed income securities, maximum | 16.00% | |||
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Minimum | 8.00% | |||
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Maximum | 16.00% | |||
Other Investments [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocations for plan assets, fixed income securities, minimum | 8.00% | |||
Target allocations for plan assets, fixed income securities, maximum | 16.00% | |||
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Minimum | 8.00% | |||
Defined Benefit Plan, Target Allocation Percentage of Assets, Debt Securities, Range Maximum | 16.00% |
Pension_and_Postretirement_Ben3
Pension and Postretirement Benefits (Pension and Postretirement Benefit Plans' Obligations and Assets) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at December 31 | $371.70 | ||
Noncurrent liabilities | -95.9 | -51.6 | |
DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at December 31 | 371.7 | 349.1 | |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at January 1 | 370.5 | 395.6 | |
Service cost | 5.9 | 7.2 | 6.2 |
Interest cost | 17.5 | 15.6 | 17.3 |
Plan amendments | 6.8 | ||
Actuarial (gain) / loss | 67.3 | -26.5 | |
Benefits paid | -24.2 | -21.4 | |
Benefit obligation at December 31 | 443.8 | 370.5 | 395.6 |
Fair value of plan assets at January 1 | 349.1 | 361.4 | |
Actual return / (loss) on plan assets | 46.4 | 8.7 | |
Contributions to plan assets | 0.4 | 0.4 | |
Fair value of plan assets at December 31 | 371.7 | 349.1 | 361.4 |
Funded Status of Plan | -72.1 | -21.4 | |
Current liabilities | -0.4 | -0.4 | |
Noncurrent liabilities | -71.7 | -21 | |
Net asset / (liability) at December 31 | -72.1 | -21.4 | |
Prior service cost / (credit) | 14.1 | 8.8 | |
Net actuarial loss / (gain) | 103.4 | 63 | |
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | 117.5 | 71.8 | |
Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at January 1 | 370.5 | 395.6 | |
Service cost | 5.9 | 7.2 | 6.2 |
Interest cost | 17.5 | 15.6 | 17.3 |
Plan amendments | 6.8 | ||
Actuarial (gain) / loss | 67.3 | -26.5 | |
Benefits paid | -24.2 | -21.4 | |
Benefit obligation at December 31 | 443.8 | 370.5 | 395.6 |
Fair value of plan assets at January 1 | 349.1 | 361.4 | |
Actual return / (loss) on plan assets | 46.4 | 8.7 | |
Contributions to plan assets | 0.4 | 0.4 | |
Fair value of plan assets at December 31 | 371.7 | 349.1 | 361.4 |
Funded Status of Plan | -72.1 | -21.4 | |
Current liabilities | -0.4 | -0.4 | |
Noncurrent liabilities | -71.7 | -21 | |
Net asset / (liability) at December 31 | -72.1 | -21.4 | |
Prior service cost / (credit) | 20.3 | 16.3 | |
Net actuarial loss / (gain) | 152.5 | 115.1 | |
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | 172.8 | 131.4 | |
Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at January 1 | 19.7 | 22.4 | |
Service cost | 0.2 | 0.2 | 0.1 |
Interest cost | 0.8 | 0.8 | 0.9 |
Actuarial (gain) / loss | 0.2 | -2.2 | |
Benefits paid | -1.3 | -1.5 | |
Benefit obligation at December 31 | 19.6 | 19.7 | 22.4 |
Fair value of plan assets at January 1 | 3.7 | 4.2 | |
Contributions to plan assets | 0.9 | 1 | |
Fair value of plan assets at December 31 | 3.3 | 3.7 | 4.2 |
Funded Status of Plan | -16.3 | -16 | |
Current liabilities | -0.5 | -0.5 | |
Noncurrent liabilities | -15.8 | -15.5 | |
Net asset / (liability) at December 31 | -16.3 | -16 | |
Prior service cost / (credit) | 0.4 | 0.5 | |
Net actuarial loss / (gain) | -5 | -6 | |
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | -4.6 | -5.5 | |
Postretirement [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at January 1 | 19.7 | 22.4 | |
Service cost | 0.2 | 0.2 | 0.1 |
Interest cost | 0.8 | 0.8 | 0.9 |
Actuarial (gain) / loss | 0.2 | -2.2 | |
Benefits paid | -1.3 | -1.5 | |
Benefit obligation at December 31 | 19.6 | 19.7 | 22.4 |
Fair value of plan assets at January 1 | 3.7 | 4.2 | |
Contributions to plan assets | 0.9 | 1 | |
Fair value of plan assets at December 31 | 3.3 | 3.7 | 4.2 |
Funded Status of Plan | -16.3 | -16 | |
Current liabilities | -0.5 | -0.5 | |
Noncurrent liabilities | -15.8 | -15.5 | |
Net asset / (liability) at December 31 | -16.3 | -16 | |
Prior service cost / (credit) | 0.6 | 0.7 | |
Net actuarial loss / (gain) | -5.8 | -6.9 | |
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | -5.2 | -6.2 | |
Regulatory Asset [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | 99 | 76.3 | |
Regulatory Asset [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | 99 | 76.3 | |
Regulatory Asset [Member] | Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | 0.4 | 0.4 | |
Regulatory Liability [Member] | Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | -4.8 | -5.6 | |
Regulatory Liability [Member] | Postretirement [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | -4.5 | -5.2 | |
Accumulated Other Comprehensive Income/(Loss) [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | 18.5 | -4.5 | |
Accumulated Other Comprehensive Income/(Loss) [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | 73.8 | 55.1 | |
Accumulated Other Comprehensive Income/(Loss) [Member] | Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | -0.2 | -0.3 | |
Accumulated Other Comprehensive Income/(Loss) [Member] | Postretirement [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated other comprehensive income, regulatory assets and regulatory liabilities, pre-tax | ($0.70) | ($1) |
Pension_and_Postretirement_Ben4
Pension and Postretirement Benefits (Net Periodic Benefit Cost (Income)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Period in which the difference between market related value of assets is calculated in years, max | five | ||
Period in which the difference between actual and estimated asset returns in MRVA is calculated | three | ||
Market related value of assets | $361 | $351.20 | $346 |
Pension [Member] | |||
Service cost | 5.9 | 7.2 | 6.2 |
Interest cost | 17.5 | 15.6 | 17.3 |
Expected return on assets | -22.9 | -23.3 | -22.7 |
Actuarial (gain) / loss | 3.4 | 4.9 | 5 |
Prior service cost | 1.5 | 1.5 | 1.5 |
Net Periodic benefit cost / (income) before adjustments | 5.4 | 5.9 | 7.3 |
Postretirement [Member] | |||
Service cost | 0.2 | 0.2 | 0.1 |
Interest cost | 0.8 | 0.8 | 0.9 |
Expected return on assets | -0.2 | -0.1 | -0.3 |
Actuarial (gain) / loss | -0.6 | -0.5 | -0.6 |
Net Periodic benefit cost / (income) before adjustments | 0.2 | 0.4 | 0.1 |
DP&L [Member] | |||
Market related value of assets | 361 | 351.2 | 346 |
DP&L [Member] | Pension [Member] | |||
Service cost | 5.9 | 7.2 | 6.2 |
Interest cost | 17.5 | 15.6 | 17.3 |
Expected return on assets | -22.9 | -23.6 | -22.7 |
Actuarial (gain) / loss | 6.4 | 9.3 | 8.8 |
Prior service cost | 2.8 | 2.8 | 2.8 |
Net Periodic benefit cost / (income) before adjustments | 9.7 | 11.3 | 12.4 |
Settlement Cost | 0.6 | ||
Net periodic benefit cost / (income) | 9.7 | 11.3 | 13 |
DP&L [Member] | Postretirement [Member] | |||
Service cost | 0.2 | 0.2 | 0.1 |
Interest cost | 0.8 | 0.8 | 0.9 |
Expected return on assets | -0.2 | -0.2 | -0.3 |
Actuarial (gain) / loss | -0.8 | -0.7 | -0.9 |
Prior service cost | 0.1 | 0.1 | 0.1 |
Net Periodic benefit cost / (income) before adjustments | $0.10 | $0.20 | ($0.10) |
Pension_and_Postretirement_Ben5
Pension and Postretirement Benefits (Other Changes in Plan Assets and Benefit Obligation Recognized in Accumulated Other Comprehensive Income, Regulatory Assets And Regulatory Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Pension [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial (gain) / loss | $43.80 | ($12) | $5.50 | |
Prior service cost / (credit) | 6.8 | |||
Reversal of amortization item, Net actuarial (gain) / loss | -3.4 | -4.9 | -5 | |
Reversal of amortization item, Prior service cost / (credit) | -1.5 | -1.5 | -1.5 | |
Total recognized in Accumulated other comprehensive income, Regulatory assets and Regulatory liabilities | 45.7 | -18.4 | -1 | |
Total recognized in net periodic benefit cost and Accumulated other comprehensive income, Regulatory assets and Regulatory liabilities | 51.1 | -12.5 | 6.3 | |
Pension [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial (gain) / loss | 43.8 | -11.7 | 5.2 | |
Prior service cost / (credit) | 6.8 | |||
Reversal of amortization item, Net actuarial (gain) / loss | -6.4 | -9.3 | -9.4 | |
Reversal of amortization item, Prior service cost / (credit) | -2.8 | -2.8 | -2.8 | |
Total recognized in Accumulated other comprehensive income, Regulatory assets and Regulatory liabilities | 41.4 | -23.8 | -7 | |
Total recognized in net periodic benefit cost and Accumulated other comprehensive income, Regulatory assets and Regulatory liabilities | 51.1 | -12.5 | 6 | |
Postretirement [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial (gain) / loss | 0.4 | -2 | 1 | |
Reversal of amortization item, Net actuarial (gain) / loss | 0.6 | 0.5 | 0.7 | |
Total recognized in Accumulated other comprehensive income, Regulatory assets and Regulatory liabilities | 1 | -1.5 | 1.7 | |
Total recognized in net periodic benefit cost and Accumulated other comprehensive income, Regulatory assets and Regulatory liabilities | 1.2 | -1.1 | ||
Postretirement [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net actuarial (gain) / loss | 0.4 | -1.9 | 1.1 | |
Reversal of amortization item, Net actuarial (gain) / loss | 0.8 | 0.7 | 0.9 | |
Reversal of amortization item, Prior service cost / (credit) | -0.1 | -0.1 | -0.1 | |
Total recognized in Accumulated other comprehensive income, Regulatory assets and Regulatory liabilities | 1.1 | -1.3 | 1.9 | |
Total recognized in net periodic benefit cost and Accumulated other comprehensive income, Regulatory assets and Regulatory liabilities | $1.20 | ($1.10) | $1.80 |
Pension_and_Postretirement_Ben6
Pension and Postretirement Benefits (Estimated Amounts that will be Amortized from Accumulated Other Comprehensive Income, Regulatory Assets And Regulatory Liabilities) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial (gain) / loss | $5.80 |
Prior service cost | 2 |
Pension [Member] | DP&L [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial (gain) / loss | 9.8 |
Prior service cost | 3.3 |
Postretirement [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial (gain) / loss | -0.5 |
Postretirement [Member] | DP&L [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial (gain) / loss | -0.7 |
Prior service cost | $0.10 |
Pension_and_Postretirement_Ben7
Pension and Postretirement Benefits (Weighted Average Assumptions Used to Determine Benefit Obligations) (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for obligations | 4.02% | 4.86% | 4.04% |
Rate of compensation increases | 3.94% | 3.94% | 3.94% |
Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for obligations | 4.02% | 4.86% | 4.04% |
Rate of compensation increases | 3.94% | 3.94% | 3.94% |
Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for obligations | 3.71% | 4.58% | 3.75% |
Postretirement [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for obligations | 3.71% | 4.58% | 3.75% |
Pension_and_Postretirement_Ben8
Pension and Postretirement Benefits (Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Income)) (Details) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.86% | 4.04% | 4.88% | |
Expected rate of return on plan assets | 6.50% | 6.75% | 6.75% | 7.00% |
Rate of compensation increases | 3.94% | 3.94% | 3.94% | |
Pension [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.86% | 4.04% | 4.88% | |
Expected rate of return on plan assets | 6.50% | 6.75% | 6.75% | 7.00% |
Rate of compensation increases | 3.94% | 3.94% | 3.94% | |
Postretirement [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.51% | 4.58% | 4.62% | |
Expected rate of return on plan assets | 4.50% | 6.00% | 6.00% | 6.00% |
Postretirement [Member] | DP&L [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.51% | 4.58% | 4.62% | |
Expected rate of return on plan assets | 4.50% | 6.00% | 6.00% | 6.00% |
Pension_and_Postretirement_Ben9
Pension and Postretirement Benefits (Assumed Health Care Cost Trend Rates) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Expense [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% |
Expense [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% |
Expense [Member] | Pre-Age 65 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current health care cost trend rate | 7.75% | 8.00% | 8.50% |
Year trend reaches ultimate | 2023 | 2019 | 2019 |
Expense [Member] | Pre-Age 65 [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current health care cost trend rate | 7.75% | 8.00% | 8.50% |
Year trend reaches ultimate | 2023 | 2019 | 2019 |
Expense [Member] | Post-Age 65 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current health care cost trend rate | 6.75% | 7.50% | 8.00% |
Year trend reaches ultimate | 2021 | 2018 | 2018 |
Expense [Member] | Post-Age 65 [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current health care cost trend rate | 6.75% | 7.50% | 8.00% |
Year trend reaches ultimate | 2021 | 2018 | 2018 |
Benefit Obligations [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Ultimate health care cost trend rate | 4.50% | 5.00% | 5.00% |
Benefit Obligations [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Ultimate health care cost trend rate | 4.50% | 5.00% | 5.00% |
Benefit Obligations [Member] | Pre-Age 65 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current health care cost trend rate | 6.97% | 7.75% | 8.00% |
Year trend reaches ultimate | 2029 | 2023 | 2019 |
Benefit Obligations [Member] | Pre-Age 65 [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current health care cost trend rate | 6.97% | 7.75% | 8.00% |
Year trend reaches ultimate | 2029 | 2023 | 2019 |
Benefit Obligations [Member] | Post-Age 65 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current health care cost trend rate | 6.97% | 6.75% | 7.50% |
Year trend reaches ultimate | 2029 | 2021 | 2018 |
Benefit Obligations [Member] | Post-Age 65 [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current health care cost trend rate | 6.97% | 6.75% | 7.50% |
Year trend reaches ultimate | 2029 | 2021 | 2018 |
Recovered_Sheet2
Pension and Postretirement Benefits (Effect of Change in Health Care Cost Trend Rate) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Service cost plus interest cost, One-percent increase | $0.10 |
Benefit obligation, One-percent increase | 1 |
Benefit obligation, One-percent decrease | -0.9 |
DP&L [Member] | |
Service cost plus interest cost, One-percent increase | 0.1 |
Benefit obligation, One-percent increase | 1 |
Benefit obligation, One-percent decrease | ($0.90) |
Recovered_Sheet3
Pension and Postretirement Benefits (Estimated Future Benefit Payments and Medicare Part D Reimbursements) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension [Member] | |
2015 | $24.80 |
2016 | 25.2 |
2017 | 25.7 |
2018 | 26.3 |
2019 | 26.7 |
2020 - 2024 | 137 |
Postretirement [Member] | |
2015 | 1.9 |
2016 | 1.8 |
2017 | 1.7 |
2018 | 1.6 |
2019 | 1.5 |
2020 - 2024 | 6.1 |
DP&L [Member] | Pension [Member] | |
2015 | 24.8 |
2016 | 25.2 |
2017 | 25.7 |
2018 | 26.3 |
2019 | 26.7 |
2020 - 2024 | 137 |
DP&L [Member] | Postretirement [Member] | |
2015 | 1.9 |
2016 | 1.8 |
2017 | 1.7 |
2018 | 1.6 |
2019 | 1.5 |
2020 - 2024 | $6.10 |
Recovered_Sheet4
Pension and Postretirement Benefits (Fair Value Measurements for Pension Plan Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | $65.40 | ||
Total Debt Securities | 255.2 | ||
Total Other Investments | 49.5 | ||
Total Pension Plan Assets | 371.7 | ||
DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 65.4 | 65.3 | |
Total Debt Securities | 255.2 | 236.8 | |
Total Other Investments | 49.5 | 46.1 | |
Total Pension Plan Assets | 371.7 | 349.1 | |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 65.3 | ||
Total Debt Securities | 236.8 | ||
Total Other Investments | 46.1 | ||
Total Pension Plan Assets | 371.7 | 349.1 | 361.4 |
Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Pension Plan Assets | 371.7 | 349.1 | 361.4 |
Level 1 [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 65.4 | 65.3 | |
Total Debt Securities | 255.2 | 236.8 | |
Total Pension Plan Assets | 322.2 | 303 | |
Level 1 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 65.4 | 65.3 | |
Total Debt Securities | 255.2 | 236.8 | |
Total Pension Plan Assets | 322.2 | 303 | |
Level 2 [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 49.5 | 46.1 | |
Total Pension Plan Assets | 49.5 | 46.1 | |
Level 2 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 49.5 | 46.1 | |
Total Pension Plan Assets | 49.5 | 46.1 | |
Small/Mid Cap Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 10.6 | ||
Small/Mid Cap Equity [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 10.6 | 10.5 | |
Small/Mid Cap Equity [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 10.5 | ||
Small/Mid Cap Equity [Member] | Level 1 [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 10.6 | 10.5 | |
Small/Mid Cap Equity [Member] | Level 1 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 10.6 | 10.5 | |
Large Cap Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 22.2 | ||
Large Cap Equity [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 22.2 | 20.8 | |
Large Cap Equity [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 20.8 | ||
Large Cap Equity [Member] | Level 1 [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 22.2 | 20.8 | |
Large Cap Equity [Member] | Level 1 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 22.2 | 20.8 | |
International Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 18.2 | ||
International Equity [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 18.2 | 20.3 | |
International Equity [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 20.3 | ||
International Equity [Member] | Level 1 [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 18.2 | 20.3 | |
International Equity [Member] | Level 1 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 18.2 | 20.3 | |
Emerging markets equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 2.8 | ||
Emerging markets equity [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 2.8 | 3.2 | |
Emerging markets equity [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 3.2 | ||
Emerging markets equity [Member] | Level 1 [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 2.8 | 3.2 | |
Emerging markets equity [Member] | Level 1 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 2.8 | 3.2 | |
SIIT dynamic equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 11.6 | ||
SIIT dynamic equity [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 11.6 | 10.5 | |
SIIT dynamic equity [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 10.5 | ||
SIIT dynamic equity [Member] | Level 1 [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 11.6 | 10.5 | |
SIIT dynamic equity [Member] | Level 1 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Equity Securities | 11.6 | 10.5 | |
Emerging Markets Debt [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 6 | ||
Emerging Markets Debt [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 6 | 6.6 | |
Emerging Markets Debt [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 6.6 | ||
Emerging Markets Debt [Member] | Level 1 [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 6 | 6.6 | |
Emerging Markets Debt [Member] | Level 1 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 6 | 6.6 | |
High Yield Bond [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 6.5 | ||
High Yield Bond [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 6.5 | 6.9 | |
High Yield Bond [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 6.9 | ||
High Yield Bond [Member] | Level 1 [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 6.5 | 6.9 | |
High Yield Bond [Member] | Level 1 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 6.5 | 6.9 | |
Long Duration Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 242.7 | ||
Long Duration Fund [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 242.7 | 223.3 | |
Long Duration Fund [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 223.3 | ||
Long Duration Fund [Member] | Level 1 [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 242.7 | 223.3 | |
Long Duration Fund [Member] | Level 1 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Debt Securities | 242.7 | 223.3 | |
Cash [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash | 1.6 | ||
Cash [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash | 1.6 | 0.9 | |
Cash [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash | 0.9 | ||
Cash [Member] | Level 1 [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash | 1.6 | 0.9 | |
Cash [Member] | Level 1 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Cash | 1.6 | 0.9 | |
Limited Partnership Interest [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 26.3 | ||
Limited Partnership Interest [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 23.5 | ||
Limited Partnership Interest [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 23.5 | ||
Limited Partnership Interest [Member] | Level 2 [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 26.3 | 23.5 | |
Limited Partnership Interest [Member] | Level 2 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 23.5 | ||
Core Property Collective Fund [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 26.3 | ||
Core Property Collective Fund [Member] | Level 2 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 26.3 | ||
Common Collective Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 23.2 | ||
Common Collective Fund [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 23.2 | 22.6 | |
Common Collective Fund [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 22.6 | ||
Common Collective Fund [Member] | Level 2 [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | 23.2 | 22.6 | |
Common Collective Fund [Member] | Level 2 [Member] | Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Other Investments | $23.20 | $22.60 |
Recovered_Sheet5
Pension and Postretirement Benefits (Defined Benefits Plan Assets, Target Allocations) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Equity Securities [Member] | |
Defined Benefit Plan, Target Plan Asset Allocations | 19.00% |
Debt Securities [Member] | |
Defined Benefit Plan, Target Plan Asset Allocations | 69.00% |
Real Estate [Member] | |
Defined Benefit Plan, Target Plan Asset Allocations | 6.00% |
Other Investments [Member] | |
Defined Benefit Plan, Target Plan Asset Allocations | 6.00% |
DP&L [Member] | Equity Securities [Member] | |
Defined Benefit Plan, Target Plan Asset Allocations | 19.00% |
DP&L [Member] | Debt Securities [Member] | |
Defined Benefit Plan, Target Plan Asset Allocations | 69.00% |
DP&L [Member] | Real Estate [Member] | |
Defined Benefit Plan, Target Plan Asset Allocations | 6.00% |
DP&L [Member] | Other Investments [Member] | |
Defined Benefit Plan, Target Plan Asset Allocations | 6.00% |
Recovered_Sheet6
Pension and Postretirement Benefits (Fair Value Measurements for Postretirement Plan Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $371.70 | ||
DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 371.7 | 349.1 | |
Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.3 | 3.7 | 4.2 |
Postretirement [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.3 | 3.7 | 4.2 |
JP Morgan Core Bond Fund [Member] | Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.2 | 3.7 | |
JP Morgan Core Bond Fund [Member] | Postretirement [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.2 | 3.7 | |
Level 1 [Member] | JP Morgan Core Bond Fund [Member] | Postretirement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.2 | 3.7 | |
Level 1 [Member] | JP Morgan Core Bond Fund [Member] | Postretirement [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $3.20 | $3.70 |
Recovered_Sheet7
Pension and Postretirement Benefits (Fair Value Measurements of Pension Assets Using Significant Unobservable Inputs) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at January 1 | $371.70 | ||
Fair value of plan assets at December 31 | 371.7 | ||
DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at January 1 | 371.7 | 349.1 | |
Fair value of plan assets at December 31 | 371.7 | 349.1 | |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at January 1 | 371.7 | 349.1 | 361.4 |
Fair value of plan assets at December 31 | 371.7 | 349.1 | 361.4 |
Pension [Member] | DP&L [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at January 1 | 371.7 | 349.1 | 361.4 |
Fair value of plan assets at December 31 | $371.70 | $349.10 | $361.40 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $0.80 | $0.90 |
Available-for-sale Securities, Gross Unrealized Gain (Loss), Net of Tax | 0.5 | 0.6 |
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | 0.4 | |
AvailableForSaleSecuritiesGross Realized Gains Losses Sale Proceeds Net of Tax | 0.2 | |
Unrealized gains or losses are expected to be transferred to earnings in the next twelve months. | 0.4 | |
Unrealized gains or losses expected to be realized over next twelve months, net of tax | 0.2 | |
Percent of inputs to the fair value of derivative instruments from quoted market prices | 97.00% | |
Gross additions to our existing landfill and asbestos AROs | 1.5 | |
Gross additions to our existing landfill and asbestos AROs After Tax | -1 | |
Increase (Decrease) in Asset Retirement Obligations | 2.4 | |
Increase (Decrease) in Asset Retirement Obligations after tax | -1.6 | |
Minimum [Member] | ||
Debt Instrument, Maturity Date | 31-Dec-16 | |
Maximum [Member] | ||
Debt Instrument, Maturity Date | 31-Dec-61 | |
DP&L [Member] | ||
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | 0.4 | |
AvailableForSaleSecuritiesGross Realized Gains Losses Sale Proceeds Net of Tax | 0.2 | |
Unrealized gains or losses are expected to be transferred to earnings in the next twelve months. | 0.4 | |
Unrealized gains or losses expected to be realized over next twelve months, net of tax | 0.2 | |
Unrealized Gains and Immaterial Unrealized Losses in AOCI, Before Tax | 1.1 | 1.2 |
Unrealized Gains and Immaterial Unrealized Losses in AOCI, Net of Tax | 0.7 | 0.8 |
Percent of inputs to the fair value of derivative instruments from quoted market prices | 97.00% | |
Gross additions to our existing landfill and asbestos AROs | 1.5 | |
Gross additions to our existing landfill and asbestos AROs After Tax | -1 | |
Increase (Decrease) in Asset Retirement Obligations | 2.4 | |
Increase (Decrease) in Asset Retirement Obligations after tax | ($1.60) |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value and Cost of Non-Derivative Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Total Master Trust Assets, Fair Value | $9.70 | [1] | $11.50 | [1] |
Total Assets | 8.7 | 10.3 | ||
DP&L [Member] | ||||
Total Master Trust Assets, Cost | 8.7 | 10.3 | ||
Total Master Trust Assets, Fair Value | 9.7 | 11.5 | ||
Debt, Cost | 877.1 | 877.1 | ||
Debt, Fair Value | 882.5 | 859.6 | ||
Equity Securities [Member] | ||||
Total Master Trust Assets, Cost | 2.7 | 3.3 | ||
Total Master Trust Assets, Fair Value | 3.7 | [1] | 4.4 | [1] |
Equity Securities [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Cost | 2.7 | 3.3 | ||
Total Master Trust Assets, Fair Value | 3.7 | 4.4 | ||
Debt Securities [Member] | ||||
Total Master Trust Assets, Cost | 4.7 | 5.4 | ||
Total Master Trust Assets, Fair Value | 4.7 | [1] | 5.5 | [1] |
Debt Securities [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Cost | 4.7 | 5.4 | ||
Total Master Trust Assets, Fair Value | 4.7 | 5.5 | ||
Money Market Funds [Member] | ||||
Total Master Trust Assets, Cost | 0.1 | 0.3 | ||
Total Master Trust Assets, Fair Value | 0.1 | [1] | 0.3 | [1] |
Money Market Funds [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Cost | 0.1 | 0.3 | ||
Total Master Trust Assets, Fair Value | 0.1 | 0.3 | ||
Debt [Member] | ||||
Debt, Cost | 2,159.70 | 2,294.40 | ||
Debt, Fair Value | 2,204.80 | 2,334.60 | ||
Hedge Funds [Member] | ||||
Total Master Trust Assets, Cost | 0.8 | 0.9 | ||
Total Master Trust Assets, Fair Value | 0.8 | [1] | 0.9 | [1] |
Hedge Funds [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Cost | 0.8 | 0.9 | ||
Total Master Trust Assets, Fair Value | 0.8 | 0.9 | ||
Real Estate Funds [Member] | ||||
Total Master Trust Assets, Cost | 0.4 | 0.4 | ||
Total Master Trust Assets, Fair Value | 0.4 | [1] | 0.4 | [1] |
Real Estate Funds [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Cost | 0.4 | 0.4 | ||
Total Master Trust Assets, Fair Value | $0.40 | $0.40 | ||
[1] | (a)Includes credit valuation adjustment |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements (Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Total Master Trust Assets, Fair Value | $9.70 | [1] | $11.50 | [1] |
Total Derivative Assets | 14.9 | [1] | 13.8 | [1] |
Total Assets | 24.6 | [1] | 25.3 | [1] |
Total Derivative Liabilities | 12.2 | [1] | 10.6 | [1] |
Total Liabilities | 2,217 | [1] | 2,345.20 | [1] |
Long Term Debt, Noncurrent | 2,139.60 | 2,284.20 | ||
Forward Contract Power [Member] | ||||
Total Derivative Assets | 14.9 | [1] | 13.4 | [1] |
Total Derivative Liabilities | 11.1 | [1] | 10.6 | [1] |
Commodity Contract - FTR [Member] | ||||
Total Derivative Assets | 0.2 | [1] | ||
Total Derivative Liabilities | 0.6 | [1] | ||
Commodity Contract - Heating Oil [Member] | ||||
Total Derivative Assets | 0.2 | [1] | ||
Total Derivative Liabilities | 0.4 | [1] | ||
Natural Gas [Member] | ||||
Total Derivative Liabilities | 0.1 | [1] | ||
DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 9.7 | 11.5 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Long Term Debt, Noncurrent | 2,204.80 | [1] | 2,334.60 | [1] |
Estimate of Fair Value, Fair Value Disclosure [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 9.7 | [1] | 11.5 | [1] |
Total Derivative Assets | 15.1 | [1] | 13.8 | [1] |
Total Assets | 24.8 | [1] | 25.3 | [1] |
Total Derivative Liabilities | 12.3 | [1] | 10.6 | [1] |
Total Liabilities | 894.8 | [1] | 870.2 | [1] |
Long Term Debt, Noncurrent | 882.5 | [1] | 859.6 | [1] |
Estimate of Fair Value, Fair Value Disclosure [Member] | DP&L [Member] | Forward Contract Power [Member] | ||||
Total Derivative Assets | 15.1 | [1] | 13.4 | [1] |
Total Derivative Liabilities | 11.2 | [1] | 10.6 | [1] |
Estimate of Fair Value, Fair Value Disclosure [Member] | DP&L [Member] | Commodity Contract - FTR [Member] | ||||
Total Derivative Assets | 0.2 | [1] | ||
Total Derivative Liabilities | 0.6 | [1] | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | DP&L [Member] | Commodity Contract - Heating Oil [Member] | ||||
Total Derivative Assets | 0.2 | [1] | ||
Total Derivative Liabilities | 0.4 | [1] | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | DP&L [Member] | Natural Gas [Member] | ||||
Total Derivative Liabilities | 0.1 | [1] | ||
Level 1 [Member] | ||||
Total Master Trust Assets, Fair Value | 8.9 | 10.6 | ||
Total Derivative Assets | 0.2 | |||
Total Assets | 8.9 | 10.8 | ||
Total Derivative Liabilities | 0.5 | |||
Total Liabilities | 0.5 | |||
Level 1 [Member] | Commodity Contract - Heating Oil [Member] | ||||
Total Derivative Assets | 0.2 | |||
Total Derivative Liabilities | 0.4 | |||
Level 1 [Member] | Natural Gas [Member] | ||||
Total Derivative Liabilities | 0.1 | |||
Level 1 [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 8.9 | 10.6 | ||
Total Derivative Assets | 0.2 | |||
Total Assets | 8.9 | 10.8 | ||
Total Derivative Liabilities | 0.5 | |||
Total Liabilities | 0.5 | |||
Level 1 [Member] | DP&L [Member] | Commodity Contract - Heating Oil [Member] | ||||
Total Derivative Assets | 0.2 | |||
Total Derivative Liabilities | 0.4 | |||
Level 1 [Member] | DP&L [Member] | Natural Gas [Member] | ||||
Total Derivative Liabilities | 0.1 | |||
Level 2 [Member] | ||||
Total Master Trust Assets, Fair Value | 0.8 | 0.9 | ||
Total Derivative Assets | 13.7 | 13.4 | ||
Total Assets | 14.5 | 14.3 | ||
Total Derivative Liabilities | 11.1 | 10.6 | ||
Total Liabilities | 2,197.70 | 2,326.70 | ||
Long Term Debt, Noncurrent | 2,186.60 | 2,316.10 | ||
Level 2 [Member] | Forward Contract Power [Member] | ||||
Total Derivative Assets | 13.7 | 13.4 | ||
Total Derivative Liabilities | 11.1 | 10.6 | ||
Level 2 [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 0.8 | 0.9 | ||
Total Derivative Assets | 13.9 | 13.4 | ||
Total Assets | 14.7 | 14.3 | ||
Total Derivative Liabilities | 11.2 | 10.6 | ||
Total Liabilities | 875.5 | 851.7 | ||
Long Term Debt, Noncurrent | 864.3 | 841.1 | ||
Level 2 [Member] | DP&L [Member] | Forward Contract Power [Member] | ||||
Total Derivative Assets | 13.9 | 13.4 | ||
Total Derivative Liabilities | 11.2 | 10.6 | ||
Level 3 [Member] | ||||
Total Derivative Assets | 1.2 | 0.2 | ||
Total Assets | 1.2 | 0.2 | ||
Total Derivative Liabilities | 0.6 | |||
Total Liabilities | 18.8 | 18.5 | ||
Long Term Debt, Noncurrent | 18.2 | 18.5 | ||
Level 3 [Member] | Forward Contract Power [Member] | ||||
Total Derivative Assets | 1.2 | |||
Level 3 [Member] | Commodity Contract - FTR [Member] | ||||
Total Derivative Assets | 0.2 | |||
Total Derivative Liabilities | 0.6 | |||
Level 3 [Member] | DP&L [Member] | ||||
Total Derivative Assets | 1.2 | 0.2 | ||
Total Assets | 1.2 | 0.2 | ||
Total Derivative Liabilities | 0.6 | |||
Total Liabilities | 18.8 | 18.5 | ||
Long Term Debt, Noncurrent | 18.2 | 18.5 | ||
Level 3 [Member] | DP&L [Member] | Forward Contract Power [Member] | ||||
Total Derivative Assets | 1.2 | |||
Level 3 [Member] | DP&L [Member] | Commodity Contract - FTR [Member] | ||||
Total Derivative Assets | 0.2 | |||
Total Derivative Liabilities | 0.6 | |||
Equity Securities [Member] | ||||
Total Master Trust Assets, Fair Value | 3.7 | [1] | 4.4 | [1] |
Equity Securities [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 3.7 | 4.4 | ||
Equity Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 3.7 | [1] | 4.4 | [1] |
Equity Securities [Member] | Level 1 [Member] | ||||
Total Master Trust Assets, Fair Value | 3.7 | 4.4 | ||
Equity Securities [Member] | Level 1 [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 3.7 | 4.4 | ||
Debt Securities [Member] | ||||
Total Master Trust Assets, Fair Value | 4.7 | [1] | 5.5 | [1] |
Debt Securities [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 4.7 | 5.5 | ||
Debt Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 4.7 | [1] | 5.5 | [1] |
Debt Securities [Member] | Level 1 [Member] | ||||
Total Master Trust Assets, Fair Value | 4.7 | 5.5 | ||
Debt Securities [Member] | Level 1 [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 4.7 | 5.5 | ||
Money Market Funds [Member] | ||||
Total Master Trust Assets, Fair Value | 0.1 | [1] | 0.3 | [1] |
Money Market Funds [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 0.1 | 0.3 | ||
Money Market Funds [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 0.1 | [1] | 0.3 | [1] |
Money Market Funds [Member] | Level 1 [Member] | ||||
Total Master Trust Assets, Fair Value | 0.1 | 0.3 | ||
Money Market Funds [Member] | Level 1 [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 0.1 | 0.3 | ||
Hedge Funds, Multi-strategy [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 0.9 | [1] | ||
Hedge Funds, Multi-strategy [Member] | Level 2 [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 0.9 | |||
Hedge Funds [Member] | ||||
Total Master Trust Assets, Fair Value | 0.8 | [1] | 0.9 | [1] |
Hedge Funds [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 0.8 | 0.9 | ||
Hedge Funds [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 0.8 | [1] | ||
Hedge Funds [Member] | Level 2 [Member] | ||||
Total Master Trust Assets, Fair Value | 0.8 | 0.9 | ||
Hedge Funds [Member] | Level 2 [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 0.8 | |||
Real Estate Funds [Member] | ||||
Total Master Trust Assets, Fair Value | 0.4 | [1] | 0.4 | [1] |
Real Estate Funds [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 0.4 | 0.4 | ||
Real Estate Funds [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | 0.4 | [1] | 0.4 | [1] |
Real Estate Funds [Member] | Level 1 [Member] | ||||
Total Master Trust Assets, Fair Value | 0.4 | 0.4 | ||
Real Estate Funds [Member] | Level 1 [Member] | DP&L [Member] | ||||
Total Master Trust Assets, Fair Value | $0.40 | $0.40 | ||
[1] | (a)Includes credit valuation adjustment |
Fair_Value_Measurements_Fair_V2
Fair Value Measurements (Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis) (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Oct. 01, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 |
Carrying Value | $2,534.20 | $2,517.60 | ||
Goodwill (Note 5) | 452.8 | 317 | ||
Goodwill Impairment | 306.3 | |||
Goodwill Allocated to DP&L Reporting Unit | 2.4 | |||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Goodwill Allocated to DP&L Reporting Unit | 306.3 | |||
Level 1 [Member] | ||||
Goodwill Allocated to DP&L Reporting Unit | 623.3 | |||
Level 3 [Member] | ||||
Goodwill Allocated to DP&L Reporting Unit | 317 | |||
Parent Company [Member] | ||||
Goodwill Impairment | 1,817.20 | |||
DP&L [Member] | ||||
Goodwill (Note 5) | 623.3 | 317 | 317 | |
Goodwill Impairment | -306.3 | |||
Conesville [Member] | ||||
Fixed asset impairment | 26.2 | |||
Fair Value | 0 | |||
Conesville [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Carrying Value | 26.2 | |||
Conesville [Member] | Level 1 [Member] | ||||
Carrying Value | 26.2 | |||
Conesville [Member] | DP&L [Member] | ||||
Carrying Value | 97.5 | 30 | ||
Fixed asset impairment | 72.5 | 10 | ||
Fair Value | 25 | 0 | ||
Goodwill Impairment | 10 | |||
Conesville [Member] | DP&L [Member] | Level 3 [Member] | ||||
Fair Value | 20 | |||
East Bend Station [Member] | ||||
Carrying Value | 14.2 | |||
Fixed asset impairment | 11.5 | |||
Fair Value | 2.7 | |||
East Bend Station [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Fair Value | 11.5 | |||
East Bend Station [Member] | Level 3 [Member] | ||||
Fixed asset impairment | 2.7 | |||
East Bend Station [Member] | DP&L [Member] | ||||
Carrying Value | 76 | |||
Fixed asset impairment | 76 | |||
Goodwill Impairment | 76 | |||
DPLER [Member] | ||||
Goodwill (Note 5) | 135.8 | |||
DPLER [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Goodwill (Note 5) | $135.80 |
Fair_Value_Measurements_Signif
Fair Value Measurements (Significant unobservalbe inputs, nonrecurring) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
East Bend Station [Member] | ||
Fair Value Measurements, Valuation Techniques | Discounted cash flows | |
DP&L [Member] | Conesville [Member] | ||
Fair Value Measurements, Valuation Techniques | Discounted cash flows |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative Liability, Fair Value, Gross Asset | $12.20 | |
Liability position offset by the asset position of counterparties with master netting agreements | 4.9 | |
Collateral Already Posted, Aggregate Fair Value | 6.6 | |
Collateral if debt were to fall below investment grade | 0.7 | |
Derivative Asset, Current | 5.4 | |
Derivative Asset, Noncurrent | 8 | |
DP&L [Member] | ||
Derivative Liability, Fair Value, Gross Asset | 12.3 | |
Liability position offset by the asset position of counterparties with master netting agreements | 6.6 | |
Collateral Already Posted, Aggregate Fair Value | 4.9 | |
Collateral if debt were to fall below investment grade | 0.8 | |
Short-term Derivative Positions [Member] | ||
Amount No Longer Considered Derivative | 0.1 | 0.9 |
Derivative Asset, Current | 11.1 | 5.4 |
Long-term Derivative Positions [Member] | ||
Amount No Longer Considered Derivative | 0.1 | |
Derivative Asset, Noncurrent | $8 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Outstanding Derivative Instruments) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
MWh | MWh | |
Commodity Contract - FTR [Member] | ||
Purchase of Units Derivative Instruments Financial Transmission Rights | 10,500 | |
Derivative, Nonmonetary Notional Amount MWh | 10,500 | |
Commodity Contract - Heating Oil [Member] | ||
Purchase of Volume Units Derivative Instruments Heating Oil Futures | 378,000 | |
Derivative, Nonmonetary Notional Amount, Volume | 378,000 | |
Natural Gas Contract [Member] | ||
Derivative, Nonmonetary Notional Amount,Natural Gas | 200,000 | |
DP&L [Member] | Natural Gas Contract [Member] | ||
Derivative, Nonmonetary Notional Amount,Natural Gas | 200,000 | |
Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | ||
Purchase of Units Derivative Instruments Forward Power Contracts Designated as Cash Flow Hedge | 175,000 | 140,400 |
Sales of Units Derivative Instruments Forward Power Contracts Designated as Cash Flow Hedge | -2,991,000 | -4,705,700 |
Derivative, Nonmonetary Notional Amount MWh | -2,816,000 | -4,565,300 |
Designated as Hedging Instrument [Member] | DP&L [Member] | Forward Contract Power [Member] | ||
Purchase of Units Derivative Instruments Forward Power Contracts Designated as Cash Flow Hedge | 175,000 | 140,400 |
Sales of Units Derivative Instruments Forward Power Contracts Designated as Cash Flow Hedge | -2,991,000 | -4,705,700 |
Derivative, Nonmonetary Notional Amount MWh | -2,816,000 | -4,565,300 |
Not Designated as Hedging Instrument [Member] | Commodity Contract - FTR [Member] | ||
Purchase of Units Derivative Instruments Financial Transmission Rights | 7,100 | |
Derivative, Nonmonetary Notional Amount MWh | 7,100 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract - Heating Oil [Member] | ||
Purchase of Volume Units Derivative Instruments Heating Oil Futures | 1,428,000 | |
Derivative, Nonmonetary Notional Amount, Volume | 1,428,000 | |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | ||
Purchase of Units Derivative Instruments Forward Power Contracts Not Designated as Hedged | 1,725,200 | 3,177,800 |
Sales of Units Derivative Instruments Forward Power Contracts Not Designated as Hedged | -2,707,800 | -2,883,100 |
Derivative, Nonmonetary Notional Amount MWh | -982,600 | 294,700 |
Not Designated as Hedging Instrument [Member] | DP&L [Member] | Commodity Contract - FTR [Member] | ||
Purchase of Units Derivative Instruments Financial Transmission Rights | 10,500 | 7,100 |
Derivative, Nonmonetary Notional Amount MWh | 10,500 | 7,100 |
Not Designated as Hedging Instrument [Member] | DP&L [Member] | Commodity Contract - Heating Oil [Member] | ||
Purchase of Volume Units Derivative Instruments Heating Oil Futures | 378,000 | 1,428,000 |
Derivative, Nonmonetary Notional Amount, Volume | 378,000 | 1,428,000 |
Not Designated as Hedging Instrument [Member] | DP&L [Member] | Forward Contract Power [Member] | ||
Purchase of Units Derivative Instruments Forward Power Contracts Not Designated as Hedged | 1,725,200 | 3,172,400 |
Sales of Units Derivative Instruments Forward Power Contracts Not Designated as Hedged | -2,804,000 | -2,888,500 |
Derivative, Nonmonetary Notional Amount MWh | -1,078,800 | 283,900 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities (Gains or Losses Recognized in AOCI for the Cash Flow Hedges) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Forward Contract Power [Member] | ||||
Beginning accumulated derivative gain / (loss) in AOCI | $1.40 | ($3) | $0.30 | |
Net gains / (losses) associated with current period hedging transactions | -19 | 1 | -2.6 | |
Ending accumulated derivative gain / (loss) in AOCI | 0.2 | 1.4 | -3 | |
Portion expected to be reclassified to earnings in the next twelve months | 3.5 | |||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 24 months | |||
Interest Rate Contract [Member] | ||||
Beginning accumulated derivative gain / (loss) in AOCI | 19.2 | 0.5 | -0.8 | |
Net gains / (losses) associated with current period hedging transactions | 18.7 | 1.1 | ||
Ending accumulated derivative gain / (loss) in AOCI | 18.3 | 19.2 | 0.5 | |
Net gains / (losses) associated with the ineffective portion of the hedging transaction | 0.8 | 0.2 | ||
Portion expected to be reclassified to earnings in the next twelve months | -0.9 | |||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 0 months | |||
DP&L [Member] | Forward Contract Power [Member] | ||||
Beginning accumulated derivative gain / (loss) in AOCI | 1 | -4.7 | -0.8 | |
Net gains / (losses) associated with current period hedging transactions | -18.8 | 1 | -3 | |
Ending accumulated derivative gain / (loss) in AOCI | 0.2 | 1 | -4.7 | |
Portion expected to be reclassified to earnings in the next twelve months | 3.5 | |||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 24 months | |||
DP&L [Member] | Interest Rate Contract [Member] | ||||
Beginning accumulated derivative gain / (loss) in AOCI | 5.2 | 9.8 | ||
Ending accumulated derivative gain / (loss) in AOCI | 2.6 | 7.3 | 9.8 | |
Portion expected to be reclassified to earnings in the next twelve months | -2.6 | |||
Maximum length of time that we are hedging our exposure to variability in future cash flows related to forecasted transactions (in months) | 0 months | |||
Interest Expense [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | -0.9 | 0.2 | ||
Interest Expense [Member] | DP&L [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | -2.6 | -2.1 | -2.5 | |
Revenue [Member] | Forward Contract Power [Member] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 18.3 | 2.1 | -0.7 | |
Revenue [Member] | DP&L [Member] | Forward Contract Power [Member] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 18.2 | 1.4 | -1.1 | |
Purchased Power [Member] | Forward Contract Power [Member] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | -0.5 | 1.3 | ||
Purchased Power [Member] | DP&L [Member] | Forward Contract Power [Member] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | ($0.20) | $3.30 | $0.20 |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities (Fair Values of Derivative Instruments Designated as Hedging Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Forward Contract Power [Member] | Long-term Derivative Positions [Member] | Other Deferred Credit [Member] | DP&L [Member] | ||
Derivative Liability, Fair Value | ($0.60) | |
Derivative, Collateral, net | -0.3 | |
Derivative, Fair Value, Offset, Net | -0.3 | |
Not Designated as Hedging Instrument [Member] | Long-term Derivative Positions [Member] | Other Deferred Credit [Member] | DP&L [Member] | ||
Derivative Liability, Fair Value | -1.3 | |
Derivative, Collateral, net | -1 | |
Derivative, Fair Value, Offset, Net | -0.3 | |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Short-term Derivative Positions [Member] | Other Prepayments and Current Assets [Member] | ||
Derivative Asset, Fair Value | 5.5 | 4.9 |
Derivative, Fair Value, Net | 2.1 | 0.7 |
Derivative, Fair Value, Offset, Net | -3.4 | -4.2 |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Short-term Derivative Positions [Member] | Other Prepayments and Current Assets [Member] | DP&L [Member] | ||
Derivative Asset, Fair Value | 5.6 | 4.9 |
Derivative, Fair Value, Net | 2.2 | 0.7 |
Derivative, Fair Value, Offset, Net | -3.4 | -4.2 |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Short-term Derivative Positions [Member] | Other Current Liabilities [Member] | ||
Derivative Liability, Fair Value | -7.5 | -6.6 |
Derivative, Fair Value, Net | 0.1 | |
Derivative, Collateral, net | -4.1 | -2.3 |
Derivative, Fair Value, Offset, Net | -3.4 | -4.2 |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Short-term Derivative Positions [Member] | Other Current Liabilities [Member] | DP&L [Member] | ||
Derivative Asset, Fair Value | 6.6 | |
Derivative Liability, Fair Value | -7.5 | |
Derivative, Fair Value, Net | 0.1 | |
Derivative, Collateral, net | -4.1 | -2.3 |
Derivative, Fair Value, Offset, Net | -3.4 | -4.2 |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Long-term Derivative Positions [Member] | Other Deferred Credit [Member] | ||
Derivative Liability, Fair Value | -0.9 | -1.3 |
Derivative, Collateral, net | -1 | |
Derivative, Fair Value, Offset, Net | -0.9 | -0.3 |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Long-term Derivative Positions [Member] | Other Deferred Credit [Member] | DP&L [Member] | ||
Derivative Liability, Fair Value | -1 | |
Derivative, Fair Value, Net | 0.1 | |
Derivative, Fair Value, Offset, Net | -0.9 | |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Long-term Derivative Positions [Member] | Other Deferred Asset [Member] | ||
Derivative Asset, Fair Value | 3.5 | 5 |
Derivative, Fair Value, Net | 2.6 | 4.7 |
Derivative, Fair Value, Offset, Net | -0.9 | -0.3 |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Long-term Derivative Positions [Member] | Other Deferred Asset [Member] | DP&L [Member] | ||
Derivative Asset, Fair Value | 3.6 | 5 |
Derivative, Fair Value, Net | 2.7 | 4.7 |
Derivative, Fair Value, Offset, Net | ($0.90) | ($0.30) |
Derivative_Instruments_and_Hed6
Derivative Instruments and Hedging Activities (Classification within the Condensed Consolidated Statements of Results of Operations or Balance Sheets of the Gains and Losses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in unrealized gain / (loss) | ($3) | $0.90 | $17 |
Gain (Loss) on Derivative Instruments, Net, Pretax | -3.1 | 2.4 | -32.1 |
Partner's share of gain (loss) | 4.2 | ||
Regulatory (asset)/liability | -0.1 | 0.4 | |
Derivative, Gain (Loss) on Derivative, Net | -6.1 | 3.3 | -15.1 |
NYMEX Coal Contract [Member] | |||
Change in unrealized gain / (loss) | 14.5 | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | -29.5 | ||
Partner's share of gain (loss) | 4.2 | ||
Regulatory (asset)/liability | 1 | ||
Derivative, Gain (Loss) on Derivative, Net | -15 | ||
Commodity Contract - FTR [Member] | |||
Change in unrealized gain / (loss) | -0.8 | 0.3 | -0.2 |
Gain (Loss) on Derivative Instruments, Net, Pretax | 0.7 | 1.2 | 0.5 |
Derivative, Gain (Loss) on Derivative, Net | -0.1 | 1.5 | 0.3 |
Commodity Contract - Heating Oil [Member] | |||
Change in unrealized gain / (loss) | -0.6 | -1.6 | |
Gain (Loss) on Derivative Instruments, Net, Pretax | -0.1 | 0.1 | 1.9 |
Regulatory (asset)/liability | -0.1 | -0.6 | |
Derivative, Gain (Loss) on Derivative, Net | -0.7 | 0.1 | 0.3 |
Forward Contract Power [Member] | |||
Change in unrealized gain / (loss) | -1.5 | 0.6 | 4.3 |
Gain (Loss) on Derivative Instruments, Net, Pretax | -3.6 | 1.1 | -5 |
Derivative, Gain (Loss) on Derivative, Net | -5.1 | 1.7 | -0.7 |
Natural Gas Contract [Member] | |||
Change in unrealized gain / (loss) | -0.1 | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | -0.1 | ||
Derivative, Gain (Loss) on Derivative, Net | -0.2 | ||
DP&L [Member] | |||
Change in unrealized gain / (loss) | -3 | -0.9 | 15.7 |
Gain (Loss) on Derivative Instruments, Net, Pretax | -2.5 | 2.9 | -22.2 |
Partner's share of gain (loss) | 4.2 | ||
Regulatory (asset)/liability | -0.1 | 0.4 | |
Derivative, Gain (Loss) on Derivative, Net | -5.5 | 2 | -6.5 |
DP&L [Member] | NYMEX Coal Contract [Member] | |||
Change in unrealized gain / (loss) | 14.5 | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | -29.5 | ||
Partner's share of gain (loss) | 4.2 | ||
Regulatory (asset)/liability | 1 | ||
Derivative, Gain (Loss) on Derivative, Net | -15 | ||
DP&L [Member] | Commodity Contract - FTR [Member] | |||
Change in unrealized gain / (loss) | -0.8 | 0.3 | -0.2 |
Gain (Loss) on Derivative Instruments, Net, Pretax | 0.7 | 1.2 | 0.5 |
Derivative, Gain (Loss) on Derivative, Net | -0.1 | 1.5 | 0.3 |
DP&L [Member] | Commodity Contract - Heating Oil [Member] | |||
Change in unrealized gain / (loss) | -0.6 | -1.6 | |
Gain (Loss) on Derivative Instruments, Net, Pretax | -0.1 | 0.1 | 1.9 |
Regulatory (asset)/liability | -0.1 | -0.6 | |
Derivative, Gain (Loss) on Derivative, Net | -0.7 | 0.1 | 0.3 |
DP&L [Member] | Forward Contract Power [Member] | |||
Change in unrealized gain / (loss) | -1.5 | -1.2 | 3 |
Gain (Loss) on Derivative Instruments, Net, Pretax | -3 | 1.6 | 4.9 |
Derivative, Gain (Loss) on Derivative, Net | -4.5 | 0.4 | 7.9 |
DP&L [Member] | Natural Gas Contract [Member] | |||
Change in unrealized gain / (loss) | -0.1 | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | -0.1 | ||
Derivative, Gain (Loss) on Derivative, Net | -0.2 | ||
Revenue [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -5.1 | ||
Revenue [Member] | Forward Contract Power [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -5.1 | ||
Revenue [Member] | DP&L [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | 0.7 | 0.2 | 2.7 |
Revenue [Member] | DP&L [Member] | Forward Contract Power [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | 0.7 | 0.2 | 2.7 |
Fuel [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -0.6 | 0.1 | -19.5 |
Fuel [Member] | NYMEX Coal Contract [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -20.2 | ||
Fuel [Member] | Commodity Contract - Heating Oil [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -0.6 | 0.1 | 0.7 |
Fuel [Member] | DP&L [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -0.6 | 0.1 | -19.5 |
Fuel [Member] | DP&L [Member] | NYMEX Coal Contract [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -20.2 | ||
Fuel [Member] | DP&L [Member] | Commodity Contract - Heating Oil [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -0.6 | 0.1 | 0.7 |
O&M [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | 0.2 | ||
O&M [Member] | Commodity Contract - Heating Oil [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | 0.2 | ||
O&M [Member] | DP&L [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | 0.2 | ||
O&M [Member] | DP&L [Member] | Commodity Contract - Heating Oil [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | 0.2 | ||
Purchased Power [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -5.4 | 3.2 | 4.7 |
Purchased Power [Member] | Commodity Contract - FTR [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -0.1 | 1.5 | 0.3 |
Purchased Power [Member] | Forward Contract Power [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -5.1 | 1.7 | 4.4 |
Purchased Power [Member] | Natural Gas Contract [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -0.2 | ||
Purchased Power [Member] | DP&L [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -5.5 | 1.7 | 5.5 |
Purchased Power [Member] | DP&L [Member] | Commodity Contract - FTR [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -0.1 | 1.5 | 0.3 |
Purchased Power [Member] | DP&L [Member] | Forward Contract Power [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | -5.2 | 0.2 | 5.2 |
Purchased Power [Member] | DP&L [Member] | Natural Gas Contract [Member] | |||
Derivative, Gain (Loss) on Derivative, Net | ($0.20) |
Derivative_Instruments_and_Hed7
Derivative Instruments and Hedging Activities (Fair Value and Balance Sheet Location (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Total Assets [Member] | ||
Derivative Asset, Fair Value | $14.90 | $13.80 |
Derivative, Fair Value, Net | 8.3 | 5.9 |
Derivative, Collateral, net | -3.2 | |
Derivative, Fair Value, Offset, Net | -6.6 | -4.7 |
Total Assets [Member] | DP&L [Member] | ||
Derivative Asset, Fair Value | 15.1 | 13.8 |
Derivative, Fair Value, Net | 8.5 | 5.9 |
Derivative, Collateral, net | -3.2 | |
Derivative, Fair Value, Offset, Net | -6.6 | -4.7 |
Total Liabilities [Member] | ||
Derivative, Fair Value, Net | 0.7 | 0.3 |
Derivative, Collateral, net | -4.9 | -5.6 |
Derivative, Fair Value, Offset, Net | -6.6 | -4.7 |
Derivative Liability, Fair Value | 12.2 | 10.6 |
Total Liabilities [Member] | DP&L [Member] | ||
Derivative, Fair Value, Net | 0.8 | 0.3 |
Derivative, Collateral, net | -4.9 | -5.6 |
Derivative, Fair Value, Offset, Net | -6.6 | -4.7 |
Derivative Liability, Fair Value | 12.3 | 10.6 |
Forward Contract Power [Member] | Long-term Derivative Positions [Member] | Other Deferred Credit [Member] | DP&L [Member] | ||
Derivative, Collateral, net | -0.3 | |
Derivative, Fair Value, Offset, Net | -0.3 | |
Derivative Liability, Fair Value | 0.6 | |
Commodity Contract - FTR [Member] | Short-term Derivative Positions [Member] | Other Current Liabilities [Member] | DP&L [Member] | ||
Derivative, Fair Value, Net | 0.6 | |
Derivative Liability, Fair Value | 0.6 | |
Commodity Contract - Heating Oil [Member] | Short-term Derivative Positions [Member] | Other Current Liabilities [Member] | DP&L [Member] | ||
Derivative, Collateral, net | -0.4 | |
Derivative Liability, Fair Value | 0.4 | |
Natural Gas Contract [Member] | Short-term Derivative Positions [Member] | Other Current Liabilities [Member] | DP&L [Member] | ||
Derivative, Collateral, net | -0.1 | |
Derivative Liability, Fair Value | 0.1 | |
Not Designated as Hedging Instrument [Member] | Long-term Derivative Positions [Member] | Other Deferred Credit [Member] | DP&L [Member] | ||
Derivative, Collateral, net | -1 | |
Derivative, Fair Value, Offset, Net | -0.3 | |
Derivative Liability, Fair Value | 1.3 | |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Short-term Derivative Positions [Member] | Other Prepayments and Current Assets [Member] | ||
Derivative Asset, Fair Value | 5.5 | 4.9 |
Derivative, Fair Value, Net | 2.1 | 0.7 |
Derivative, Fair Value, Offset, Net | -3.4 | -4.2 |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Short-term Derivative Positions [Member] | Other Prepayments and Current Assets [Member] | DP&L [Member] | ||
Derivative Asset, Fair Value | 5.6 | 4.9 |
Derivative, Fair Value, Net | 2.2 | 0.7 |
Derivative, Fair Value, Offset, Net | -3.4 | -4.2 |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Short-term Derivative Positions [Member] | Other Current Liabilities [Member] | ||
Derivative, Fair Value, Net | 0.1 | |
Derivative, Collateral, net | -4.1 | -2.3 |
Derivative, Fair Value, Offset, Net | -3.4 | -4.2 |
Derivative Liability, Fair Value | 7.5 | 6.6 |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Short-term Derivative Positions [Member] | Other Current Liabilities [Member] | DP&L [Member] | ||
Derivative Asset, Fair Value | 6.6 | |
Derivative, Fair Value, Net | 0.1 | |
Derivative, Collateral, net | -4.1 | -2.3 |
Derivative, Fair Value, Offset, Net | -3.4 | -4.2 |
Derivative Liability, Fair Value | 7.5 | |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Long-term Derivative Positions [Member] | Other Deferred Credit [Member] | ||
Derivative, Collateral, net | -1 | |
Derivative, Fair Value, Offset, Net | -0.9 | -0.3 |
Derivative Liability, Fair Value | 0.9 | 1.3 |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Long-term Derivative Positions [Member] | Other Deferred Credit [Member] | DP&L [Member] | ||
Derivative, Fair Value, Net | 0.1 | |
Derivative, Fair Value, Offset, Net | -0.9 | |
Derivative Liability, Fair Value | 1 | |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Long-term Derivative Positions [Member] | Other Deferred Asset [Member] | ||
Derivative Asset, Fair Value | 3.5 | 5 |
Derivative, Fair Value, Net | 2.6 | 4.7 |
Derivative, Fair Value, Offset, Net | -0.9 | -0.3 |
Not Designated as Hedging Instrument [Member] | Forward Contract Power [Member] | Long-term Derivative Positions [Member] | Other Deferred Asset [Member] | DP&L [Member] | ||
Derivative Asset, Fair Value | 3.6 | 5 |
Derivative, Fair Value, Net | 2.7 | 4.7 |
Derivative, Fair Value, Offset, Net | -0.9 | -0.3 |
Not Designated as Hedging Instrument [Member] | Commodity Contract - FTR [Member] | Short-term Derivative Positions [Member] | Other Prepayments and Current Assets [Member] | ||
Derivative Asset, Fair Value | 0.2 | |
Derivative, Fair Value, Net | 0.2 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract - FTR [Member] | Short-term Derivative Positions [Member] | Other Prepayments and Current Assets [Member] | DP&L [Member] | ||
Derivative Asset, Fair Value | 0.2 | |
Derivative, Fair Value, Net | 0.2 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract - FTR [Member] | Short-term Derivative Positions [Member] | Other Current Liabilities [Member] | ||
Derivative, Fair Value, Net | 0.6 | |
Derivative Liability, Fair Value | 0.6 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract - Heating Oil [Member] | Short-term Derivative Positions [Member] | Other Prepayments and Current Assets [Member] | ||
Derivative Asset, Fair Value | 0.2 | |
Derivative, Collateral, net | -0.2 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract - Heating Oil [Member] | Short-term Derivative Positions [Member] | Other Prepayments and Current Assets [Member] | DP&L [Member] | ||
Derivative Asset, Fair Value | 0.2 | |
Derivative, Collateral, net | -0.2 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract - Heating Oil [Member] | Short-term Derivative Positions [Member] | Other Current Liabilities [Member] | ||
Derivative, Collateral, net | -0.4 | |
Derivative Liability, Fair Value | 0.4 | |
Not Designated as Hedging Instrument [Member] | Natural Gas Contract [Member] | Short-term Derivative Positions [Member] | Other Current Liabilities [Member] | ||
Derivative, Collateral, net | -0.1 | |
Derivative Liability, Fair Value | 0.1 | |
Cash Flow Hedging [Member] | Forward Contract Power [Member] | Short-term Derivative Positions [Member] | Other Prepayments and Current Assets [Member] | ||
Derivative Asset, Fair Value | 5.6 | 0.5 |
Derivative, Fair Value, Net | 3.6 | 0.3 |
Derivative, Fair Value, Offset, Net | -2 | -0.2 |
Cash Flow Hedging [Member] | Forward Contract Power [Member] | Short-term Derivative Positions [Member] | Other Prepayments and Current Assets [Member] | DP&L [Member] | ||
Derivative Asset, Fair Value | 5.6 | 0.5 |
Derivative, Fair Value, Net | 3.6 | 0.3 |
Derivative, Fair Value, Offset, Net | -2 | -0.2 |
Cash Flow Hedging [Member] | Forward Contract Power [Member] | Short-term Derivative Positions [Member] | Other Current Liabilities [Member] | ||
Derivative, Fair Value, Net | 0.1 | 0.2 |
Derivative, Collateral, net | -2.3 | |
Derivative, Fair Value, Offset, Net | -2 | -0.2 |
Derivative Liability, Fair Value | 2.1 | 2.7 |
Cash Flow Hedging [Member] | Forward Contract Power [Member] | Short-term Derivative Positions [Member] | Other Current Liabilities [Member] | DP&L [Member] | ||
Derivative, Fair Value, Net | 0.1 | 0.2 |
Derivative, Collateral, net | -2.3 | |
Derivative, Fair Value, Offset, Net | -2 | -0.2 |
Derivative Liability, Fair Value | 2.1 | 2.7 |
Cash Flow Hedging [Member] | Forward Contract Power [Member] | Long-term Derivative Positions [Member] | Other Deferred Credit [Member] | ||
Derivative, Collateral, net | -0.3 | |
Derivative, Fair Value, Offset, Net | -0.3 | |
Derivative Liability, Fair Value | 0.6 | |
Cash Flow Hedging [Member] | Forward Contract Power [Member] | Long-term Derivative Positions [Member] | Other Deferred Asset [Member] | ||
Derivative Asset, Fair Value | 0.3 | 3 |
Derivative, Collateral, net | -3 | |
Derivative, Fair Value, Offset, Net | -0.3 | |
Cash Flow Hedging [Member] | Forward Contract Power [Member] | Long-term Derivative Positions [Member] | Other Deferred Asset [Member] | DP&L [Member] | ||
Derivative Asset, Fair Value | 0.3 | 3 |
Derivative, Collateral, net | -3 | |
Derivative, Fair Value, Offset, Net | ($0.30) |
Redeemable_Preferred_Stock_Nar
Redeemable Preferred Stock (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Amount above net income required for dividend issuance | $1.20 | |
Retained Earnings (Accumulated Deficit) | -2,096.70 | -2,022.10 |
DP&L [Member] | ||
Amount above net income required for dividend issuance | 1.2 | |
Retained Earnings (Accumulated Deficit) | $381.80 | |
$100 Redeemable Preferred Stock Twenty Five Dollar [Member] | ||
Preferred stock par value | $100 | |
Preferred stock shares authorized | 4,000,000 | |
Preferred stock shares outstanding | 228,508 | |
$100 Redeemable Preferred Stock Twenty Five Dollar [Member] | DP&L [Member] | ||
Preferred stock par value | $100 | |
Preferred stock shares authorized | 4,000,000 | |
Preferred stock shares outstanding | 228,508 | |
$25 Redeemable Preferred Stock [Member] | ||
Preferred stock par value | $25 | |
Preferred stock shares authorized | 4,000,000 | |
$25 Redeemable Preferred Stock [Member] | DP&L [Member] | ||
Preferred stock par value | $25 | |
Preferred stock shares authorized | 4,000,000 |
Redeemable_Preferred_Stock_Pre
Redeemable Preferred Stock (Preferred Shares Outstanding) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Temporary Equity [Line Items] | ||
Shares Outstanding | 228,508 | |
Carrying Value | $18.40 | $18.40 |
DP&L [Member] | ||
Temporary Equity [Line Items] | ||
Shares Outstanding | 228,508 | |
Par Value | 22.9 | 22.9 |
DP&L Series A [Member] | ||
Temporary Equity [Line Items] | ||
Preferred Stock Rate | 3.75% | |
Redemption Price | $102 | |
Shares Outstanding | 93,280 | |
Carrying Value | 7.4 | 7.4 |
DP&L Series A [Member] | DP&L [Member] | ||
Temporary Equity [Line Items] | ||
Preferred Stock Rate | 3.75% | |
Redemption Price | $102 | |
Shares Outstanding | 93,280 | |
Par Value | 9.3 | 9.3 |
DP&L Series B [Member] | ||
Temporary Equity [Line Items] | ||
Preferred Stock Rate | 3.75% | |
Redemption Price | $103 | |
Shares Outstanding | 69,398 | |
Carrying Value | 5.6 | 5.6 |
DP&L Series B [Member] | DP&L [Member] | ||
Temporary Equity [Line Items] | ||
Preferred Stock Rate | 3.75% | |
Redemption Price | $103 | |
Shares Outstanding | 69,398 | |
Par Value | 7 | 7 |
DP&L Series C [Member] | ||
Temporary Equity [Line Items] | ||
Preferred Stock Rate | 3.90% | |
Redemption Price | $101 | |
Shares Outstanding | 65,830 | |
Carrying Value | 5.4 | 5.4 |
DP&L Series C [Member] | DP&L [Member] | ||
Temporary Equity [Line Items] | ||
Preferred Stock Rate | 3.90% | |
Redemption Price | $101 | |
Shares Outstanding | 65,830 | |
Par Value | $6.60 | $6.60 |
Common_Shareholders_Equity_Det
Common Shareholders' Equity (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Common stock, shares authorized | 1,500 |
Common stock, shares outstanding | 1 |
DP&L [Member] | |
Common stock, shares authorized | 250,000,000 |
Common stock, shares outstanding | 41,172,173 |
PUCO Meger Equity Ratio Approval | 50.00% |
Contractual_Obligations_Commer2
Contractual Obligations, Commercial Commitments and Contingencies (Narative) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 01, 2011 | Oct. 03, 2011 | |
lb | |||||
T | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Third party guarantees | $20,500,000 | ||||
Due to third parties, current | 1,600,000 | 200,000 | |||
Equity ownership interest | 4.90% | ||||
Environmental reserves | 800,000 | ||||
Percentage of energy generated by coal | 99.00% | ||||
Percentage of future committed coal | 57.00% | ||||
Emission Reductions | 30.00% | ||||
Emission Reduction Ohio | 28.00% | ||||
Annual CO2 emissions generation at stations, in tons | 14 | ||||
CO2 tons per megawatt-hour for USEPA standard on natural gas-fired EGUs | 1,000 | ||||
Relief and civil penalties, per day | 27,500 | ||||
Proceeds from Legal Settlements | 14,600,000 | ||||
Interest and Other Income | 1,800,000 | ||||
DP&L [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Environmental reserves | 800,000 | ||||
Unrecognized tax benefit | 3,000,000 | 8,800,000 | 18,300,000 | ||
Percentage of energy generated by coal | 99.00% | ||||
Percentage of future committed coal | 57.00% | ||||
Emission Reductions | 30.00% | ||||
Emission Reduction Ohio | 28.00% | ||||
Annual CO2 emissions generation at stations, in tons | 14 | ||||
CO2 tons per megawatt-hour for USEPA standard on natural gas-fired EGUs | 1,000 | ||||
Relief and civil penalties, per day | 27,500 | ||||
Proceeds from insurance settlement, operating activities | 14,600,000 | ||||
Interest and Other Income | 1,800,000 | ||||
DPLER [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Third party guarantees | 2,000,000 | ||||
MC Squared [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Third party guarantees | 200,000 | ||||
Coal Supply Agreements [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Coal supply failure by suppliers | 1,500,000 | ||||
Coal supply agreement, in tons | 570,000 | ||||
Coal Supply Agreements [Member] | DP&L [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Coal supply failure by suppliers | 1,500,000 | ||||
Coal supply agreement, in tons | 570,000,000 | ||||
DPLE [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Third party guarantees | 18,300,000 | ||||
Debt Obligation on 4.9% Equity Ownership [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Equity ownership interest | 4.90% | 4.90% | |||
Debt obligation | 1,517,900,000 | ||||
Debt Obligation on 4.9% Equity Ownership [Member] | DP&L [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Equity ownership interest | 4.90% | 4.90% | |||
Equity ownership interest aggregate cost | 74,400,000 | ||||
Debt obligation | $1,517,900,000 | ||||
Long Term Debt Date Range Equity Ownership, Start | 2015 | ||||
Long Term Debt Date Range Equity Ownership, End | 2040 | ||||
Pollution Control Series Maturing in January 2028 - 4.70% [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument interest percentage | 4.70% | ||||
Pollution Control Series Maturing in January 2028 - 4.70% [Member] | DP&L [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument interest percentage | 4.70% | ||||
Pollution Control Series Maturing in January 2034 - 4.80% [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument interest percentage | 4.80% | ||||
Pollution Control Series Maturing in January 2034 - 4.80% [Member] | DP&L [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument interest percentage | 4.80% | ||||
Pollution Control Series Maturing in September 2036 - 4.80% [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument interest percentage | 4.80% | ||||
Pollution Control Series Maturing in September 2036 - 4.80% [Member] | DP&L [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument interest percentage | 4.80% | ||||
U.S. Government note maturing in February 2061 - 4.20% [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument interest percentage | 4.20% | 4.20% | |||
U.S. Government note maturing in February 2061 - 4.20% [Member] | DP&L [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument interest percentage | 4.20% | 4.20% | |||
Note to DPL Capital Trust II Maturing in September 2031 - 8.125% [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument interest percentage | 8.13% | ||||
Five Year Senior Unsecured Notes at 6.50% maturing on October 15, 2016 [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument interest percentage | 6.50% | 6.50% | 6.50% | ||
Ten Year Senior Unsecured Notes at 7.25% maturing at October 15, 2021 [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
Debt instrument interest percentage | 7.25% | 7.25% | 7.25% | ||
Interim goals [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
CO2 tons per megawatt-hour for USEPA standard on new EGUs | 1,452 | ||||
Interim goals [Member] | DP&L [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
CO2 tons per megawatt-hour for USEPA standard on new EGUs | 1,452 | ||||
Final goals [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
CO2 tons per megawatt-hour for USEPA standard on new EGUs | 1,338 | ||||
Final goals [Member] | DP&L [Member] | |||||
Public Utility, Property, Plant and Equipment [Line Items] | |||||
CO2 tons per megawatt-hour for USEPA standard on new EGUs | 1,338 |
Contractual_Obligations_Commer3
Contractual Obligations, Commercial Commitments and Contingenciesl (Schedule Of Contractual Obligations And Commercial Commitments) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Contractual Obligations, Commercial Commitments And Contingencies [Line Items] | |
Long-term debt, Less than 1 year | $20.10 |
Long-term debt, More than 5 years | 1,227.70 |
Total Purchase orders and other contractual obligations | 72.4 |
Purchase orders and other contractual obligations, Less than 1 year | 39.2 |
Purchase orders and other contractual obligations, 2 - 3 years | 17.3 |
Purchase orders and other contractual obligations, 4 - 5 years | 15.9 |
DP&L [Member] | |
Contractual Obligations, Commercial Commitments And Contingencies [Line Items] | |
Long-term debt, Less than 1 year | 0.1 |
Long-term debt, More than 5 years | 432.1 |
Coal Contracts [Member] | |
Contractual Obligations, Commercial Commitments And Contingencies [Line Items] | |
Total Coal Contracts | 486.2 |
Coal Contracts, Less than 1 year | 255.6 |
Coal Contracts, 2 - 3 years | 161.2 |
Coal Contracts, 4 - 5 years | 69.4 |
Coal Contracts [Member] | DP&L [Member] | |
Contractual Obligations, Commercial Commitments And Contingencies [Line Items] | |
Total long-term debt | 486.2 |
Long-term debt, Less than 1 year | 255.6 |
Long-term debt, 2 - 3 years | 161.2 |
Long-term debt, 4 - 5 years | 69.4 |
Limestone Contracts [Member] | |
Contractual Obligations, Commercial Commitments And Contingencies [Line Items] | |
Long-term debt, Less than 1 year | 6.1 |
Total Limestone Contracts | 18.3 |
Limestone Contracts, 2 - 3 years | 12.2 |
Limestone Contracts [Member] | DP&L [Member] | |
Contractual Obligations, Commercial Commitments And Contingencies [Line Items] | |
Total long-term debt | 18.3 |
Long-term debt, Less than 1 year | 6.1 |
Long-term debt, 2 - 3 years | 12.2 |
Other Intangible Assets [Member] | DP&L [Member] | |
Contractual Obligations, Commercial Commitments And Contingencies [Line Items] | |
Total long-term debt | 72.4 |
Long-term debt, Less than 1 year | 39.2 |
Long-term debt, 2 - 3 years | 17.3 |
Long-term debt, 4 - 5 years | $15.90 |
Business_Segments_Narrative_De
Business Segments (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
sqmi | sqmi | |
Service area, square miles | 6,000 | 6,000 |
Number of coal fired power plants | 5 | 5 |
Approximate number of retail customers | 516,000 | 516,000 |
Approximate Number Of Competitive Retail Customers | 260,000 | |
DP&L [Member] | ||
Service area, square miles | 6,000 | |
Number of coal fired power plants | 5 | |
Approximate number of retail customers | 516,000 |
Business_Segments_Segment_Fina
Business Segments (Segment Financial Information) (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Oct. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Amortization of intangibles | ($35.20) | [1] | ($30.50) | [1] | ||
Goodwill, Impairment Loss | 306.3 | |||||
Total Assets | 3,577.80 | 3,721.50 | ||||
Utility [Member] | ||||||
Fixed asset impairment | 80.8 | |||||
Other Reportable Business Segment [Member] | ||||||
Amortization of intangibles | 1.2 | |||||
Goodwill, Impairment Loss | 1,817.20 | |||||
Fixed asset impairment | -80.8 | |||||
Parent Company [Member] | ||||||
Amortization of intangibles | 1.2 | |||||
Goodwill, Impairment Loss | 1,817.20 | |||||
DP&L [Member] | ||||||
Intersegment revenues | 0.1 | |||||
Goodwill, Impairment Loss | -306.3 | |||||
Income tax expense (benefit) | 39.7 | 18.6 | 55.1 | |||
Successor [Member] | ||||||
Total revenues | 1,763 | 1,636.90 | 1,668.40 | |||
Fuel Costs | 304.5 | 366.7 | 361.9 | |||
Purchased power | 592.6 | 389 | 342.1 | |||
Amortization of intangibles | 1.2 | 7.1 | 95.1 | |||
Gross margin | 864.7 | 874.1 | 869.3 | |||
Depreciation and amortization | 139.8 | 132.9 | 125.4 | |||
Goodwill, Impairment Loss | 135.8 | 306.3 | 1,817.20 | |||
Fixed asset impairment | 11.5 | 26.2 | ||||
Interest expense | 126.6 | 124 | 122.9 | |||
Income tax expense (benefit) | 18 | 22.3 | 47.7 | |||
Net income (loss) | -74.6 | -222 | -1,729.80 | |||
Successor [Member] | Utility [Member] | ||||||
External customer revenues | 1,181.20 | 1,098.20 | 1,138.40 | |||
Intersegment revenues | 487.1 | 453.3 | 393.4 | |||
Total revenues | 1,668.30 | 1,551.50 | 1,531.80 | |||
Fuel Costs | 314.9 | 362.5 | 354.9 | |||
Purchased power | 582.4 | 381.9 | 309.5 | |||
Gross margin | 771 | 807.1 | 867.4 | |||
Depreciation and amortization | 144.8 | 140.2 | 141.3 | |||
Fixed asset impairment | 86 | |||||
Interest expense | 33.9 | 37.2 | 39.1 | |||
Income tax expense (benefit) | 39.7 | 18.6 | 55.1 | |||
Net income (loss) | 115 | 83.6 | 91.2 | |||
Capital expenditures | 114.2 | 122.1 | 195.5 | |||
Total Assets | 3,338.70 | 3,313.10 | 3,464.20 | |||
Successor [Member] | Competitive Retail [Member] | ||||||
External customer revenues | 533.6 | 511.6 | 493.1 | |||
Total revenues | 533.6 | 511.6 | 493.1 | |||
Purchased power | 491.8 | 459.7 | 424.5 | |||
Gross margin | 41.8 | 51.9 | 68.6 | |||
Depreciation and amortization | 0.8 | 0.6 | 0.4 | |||
Interest expense | 0.5 | 0.5 | 0.6 | |||
Income tax expense (benefit) | 2 | 4.2 | 18.1 | |||
Net income (loss) | 3.2 | 6.6 | 22.8 | |||
Capital expenditures | 2.5 | |||||
Total Assets | 94.9 | 105 | 99.2 | |||
Successor [Member] | Other Reportable Business Segment [Member] | ||||||
External customer revenues | 48.2 | 27.1 | 36.9 | |||
Intersegment revenues | 5.5 | 4 | 3.4 | |||
Total revenues | 53.7 | 31.1 | 40.3 | |||
Fuel Costs | -10.4 | 4.2 | 7 | |||
Purchased power | 7.5 | 1.1 | 1.5 | |||
Amortization of intangibles | 7.1 | 95.1 | ||||
Gross margin | 55.4 | 18.7 | -63.3 | |||
Depreciation and amortization | -5.8 | -7.9 | -16.3 | |||
Goodwill, Impairment Loss | 135.8 | 306.3 | ||||
Fixed asset impairment | 11.5 | -59.8 | ||||
Interest expense | 92.9 | 86.9 | 83.9 | |||
Income tax expense (benefit) | -23.7 | -0.5 | -25.5 | |||
Net income (loss) | -192.8 | -312.2 | -1,725.40 | |||
Capital expenditures | 1.4 | 2.3 | 2.6 | |||
Total Assets | 1,440.10 | 1,675.80 | 683.9 | |||
Successor [Member] | Adjustments and Eliminations [Member] | ||||||
Intersegment revenues | -492.6 | -457.3 | -396.8 | |||
Total revenues | -492.6 | -457.3 | -396.8 | |||
Purchased power | -489.1 | -453.7 | -393.4 | |||
Gross margin | -3.5 | -3.6 | -3.4 | |||
Interest expense | -0.7 | -0.6 | -0.7 | |||
Net income (loss) | -118.4 | |||||
Total Assets | -1,295.90 | -1,372.40 | ||||
Successor [Member] | Parent Company [Member] | ||||||
External customer revenues | 1,763 | 1,636.90 | 1,668.40 | |||
Total revenues | 1,763 | 1,636.90 | 1,668.40 | |||
Fuel Costs | 304.5 | 366.7 | 361.9 | |||
Purchased power | 592.6 | 389 | 342.1 | |||
Amortization of intangibles | 7.1 | 95.1 | ||||
Gross margin | 864.7 | 874.1 | 869.3 | |||
Depreciation and amortization | 139.8 | 132.9 | 125.4 | |||
Goodwill, Impairment Loss | 135.8 | 306.3 | ||||
Fixed asset impairment | 11.5 | 26.2 | ||||
Interest expense | 126.6 | 124 | 122.9 | |||
Income tax expense (benefit) | 18 | 22.3 | 47.7 | |||
Net income (loss) | -74.6 | -222 | -1,729.80 | |||
Capital expenditures | 118.1 | 124.4 | 198.1 | |||
Total Assets | $3,577.80 | $3,721.50 | $4,247.30 | |||
[1] | (c)Consists of various intangible assets including renewable energy credits, emission allowances, and other intangibles, none of which are individually significant. |
Fixedasset_Impairment_Narrativ
Fixed-asset Impairment (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
MW | |||
Carrying Value | $2,534.20 | $2,517.60 | |
Conesville [Member] | |||
Fair Value | 0 | ||
Fixed asset impairment | 26.2 | ||
Production Plan Capacity | 129 | ||
Conesville [Member] | DP&L [Member] | |||
Fair Value | 0 | 25 | |
Carrying Value | 30 | 97.5 | |
Fixed asset impairment | 10 | 72.5 | |
Production Plan Capacity | 129 | ||
East Bend Station [Member] | |||
Fair Value | 2.7 | ||
Carrying Value | 14.2 | ||
Fixed asset impairment | 11.5 | ||
East Bend Station [Member] | DP&L [Member] | |||
Carrying Value | 76 | ||
Fixed asset impairment | 76 | ||
Production Plan Capacity | 186 | ||
Hutchings Plant [Member] | DP&L [Member] | |||
Fair Value | 0 | ||
Carrying Value | 8.3 | ||
Fixed asset impairment | $8.30 |
Schedule_II_Valuation_And_Qual1
Schedule II Valuation And Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Provision for Uncollectible Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $1,160 | $1,084 | $1,136 |
Additions | 7,644 | 6,156 | 5,902 |
Deductions | 7,537 | 6,080 | 5,954 |
Balance at End of Period | 1,267 | 1,160 | 1,084 |
Provision for Uncollectible Accounts [Member] | DP&L [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 909 | 923 | 941 |
Additions | 4,011 | 4,924 | 5,393 |
Deductions | 4,023 | 4,938 | 5,411 |
Balance at End of Period | 897 | 909 | 923 |
Valuation Allowance For Deferred Tax Assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 13,721 | 12,349 | 6,702 |
Additions | 5,179 | 2,159 | 6,747 |
Deductions | 787 | 1,100 | |
Balance at End of Period | $18,900 | $13,721 | $12,349 |