Derivative Financial Instruments (Tables)
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12 Months Ended |
Dec. 31, 2017 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Summary of the derivative fair value |
Below is a summary of the interest rate and foreign exchange hedge balances as of December 31, 2017: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Generation | | Exelon Corporate | | Exelon | Description | Derivatives Designated as Hedging Instruments | | Economic Hedges | | Proprietary
Trading | | Collateral and Netting(a) | | Subtotal | | Derivatives
Designated
as Hedging
Instruments | | Total | Mark-to-market derivative assets (current assets) | $ | — |
|
| $ | 10 |
|
| $ | — |
| | $ | (7 | ) | | $ | 3 |
| | $ | — |
| | $ | 3 |
| Mark-to-market derivative assets (noncurrent assets) | 3 |
|
| — |
|
| — |
| | — |
| | 3 |
| | 3 |
| | 6 |
| Total mark-to-market derivative assets | 3 |
|
| 10 |
|
| — |
| | (7 | ) | | 6 |
| | 3 |
| | 9 |
| Mark-to-market derivative liabilities (current liabilities) | (2 | ) |
| (7 | ) |
| — |
| | 7 |
| | (2 | ) | | — |
| | (2 | ) | Mark-to-market derivative liabilities (noncurrent liabilities) | — |
|
| (2 | ) |
| — |
| | — |
| | (2 | ) | | — |
| | (2 | ) | Total mark-to-market derivative liabilities | (2 | ) |
| (9 | ) |
| — |
| | 7 |
| | (4 | ) | | — |
| | (4 | ) | Total mark-to-market derivative net assets (liabilities) | $ | 1 |
|
| $ | 1 |
|
| $ | — |
| | $ | — |
| | $ | 2 |
| | $ | 3 |
| | $ | 5 |
|
__________ | | (a) | Exelon and Generation net all available amounts allowed under the derivative authoritative guidance on the balance sheet. These amounts include unrealized derivative transactions with the same counterparty under legally enforceable master netting agreements and cash collateral. In some cases, Exelon and Generation may have other offsetting counterparty exposures subject to a master netting or similar agreement, such as accrued interest, transactions that do not qualify as derivatives, letters of credit and other forms of non-cash collateral, which are not reflected in the table above. |
The following table provides a summary of the interest rate and foreign exchange hedge balances recorded by the Registrants as of December 31, 2016: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Generation | | Exelon Corporate | | Exelon | Description | Derivatives Designated as Hedging Instruments | | Economic Hedges | | Proprietary
Trading(a) | | Collateral and Netting(b) | | Subtotal | | Derivatives
Designated
as Hedging
Instruments | | Total | Mark-to-market derivative assets (current assets) | $ | — |
|
| $ | 17 |
|
| $ | 4 |
|
| $ | (13 | ) | | $ | 8 |
| | $ | — |
| | $ | 8 |
| Mark-to-market derivative assets (noncurrent assets) | — |
|
| 11 |
|
| 1 |
|
| (8 | ) | | 4 |
| | 16 |
| | 20 |
| Total mark-to-market derivative assets | — |
|
| 28 |
|
| 5 |
|
| (21 | ) | | 12 |
| | 16 |
|
| 28 |
| Mark-to-market derivative liabilities (current liabilities) | (7 | ) |
| (13 | ) |
| (2 | ) |
| 14 |
| | (8 | ) | | — |
| | (8 | ) | Mark-to-market derivative liabilities (noncurrent liabilities) | (3 | ) |
| (8 | ) |
| (2 | ) |
| 9 |
| | (4 | ) | | — |
| | (4 | ) | Total mark-to-market derivative liabilities | (10 | ) |
| (21 | ) |
| (4 | ) |
| 23 |
| | (12 | ) | | — |
|
| (12 | ) | Total mark-to-market derivative net assets (liabilities) | $ | (10 | ) |
| $ | 7 |
|
| $ | 1 |
|
| $ | 2 |
| | $ | — |
| | $ | 16 |
|
| $ | 16 |
|
__________ | | (a) | Generation enters into interest rate derivative contracts to economically hedge risk associated with the interest rate component of commodity positions. The characterization of the interest rate derivative contracts between the proprietary trading activity in the above table is driven by the corresponding characterization of the underlying commodity position that gives rise to the interest rate exposure. Generation does not utilize proprietary trading interest rate derivatives with the objective of benefiting from shifts or changes in market interest rates. |
| | (b) | Exelon and Generation net all available amounts allowed under the derivative authoritative guidance on the balance sheet. These amounts include unrealized derivative transactions with the same counterparty under legally enforceable master netting agreements and cash collateral. In some cases, Exelon and Generation may have other offsetting counterparty exposures subject to a master netting or similar agreement, such as accrued interest, transactions that do not qualify as derivatives, letters of credit and other forms of non-cash collateral, which are not reflected in the table above. |
The following table provides a summary of the derivative fair value balances related to commodity contracts recorded by the Registrants as of December 31, 2017: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Successor | | | | Generation | | ComEd | | DPL | | PHI | | Exelon | Description | Economic Hedges | | Proprietary Trading | | Collateral and Netting(a)(e) | | Subtotal(b) | | Economic Hedges(c) | | Economic Hedges(d) | | Collateral and Netting(a) | | Subtotal | | Subtotal | | Total Derivatives | Mark-to-market derivative assets (current assets) | $ | 3,061 |
| | $ | 56 |
| | $ | (2,144 | ) | | $ | 973 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 973 |
| Mark-to-market derivative assets (noncurrent assets) | 1,164 |
| | 12 |
| | (845 | ) | | 331 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 331 |
| Total mark-to-market derivative assets | 4,225 |
|
| 68 |
|
| (2,989 | ) | | 1,304 |
| | — |
|
| — |
|
| — |
| | — |
|
| — |
| | 1,304 |
| Mark-to-market derivative liabilities (current liabilities) | (2,646 | ) | | (43 | ) | | 2,480 |
| | (209 | ) | | (21 | ) | | (1 | ) | | 1 |
| | — |
| | — |
| | (230 | ) | Mark-to-market derivative liabilities (noncurrent liabilities) | (1,137 | ) | | (10 | ) | | 975 |
| | (172 | ) | | (235 | ) | | — |
| | — |
| | — |
| | — |
| | (407 | ) | Total mark-to-market derivative liabilities | (3,783 | ) |
| (53 | ) |
| 3,455 |
| | (381 | ) | | (256 | ) |
| (1 | ) |
| 1 |
|
| — |
|
| — |
| | (637 | ) | Total mark-to-market derivative net assets (liabilities) | $ | 442 |
|
| $ | 15 |
|
| $ | 466 |
| | $ | 923 |
| | $ | (256 | ) |
| $ | (1 | ) |
| $ | 1 |
|
| $ | — |
|
| $ | — |
| | $ | 667 |
|
__________ | | (a) | Exelon, Generation, PHI and DPL net all available amounts allowed under the derivative authoritative guidance on the balance sheet. These amounts include unrealized derivative transactions with the same counterparty under legally enforceable master netting agreements and cash collateral. In some cases, Exelon and Generation may have other offsetting exposures, subject to a master netting or similar agreement, such as trade receivables and payables, transactions that do not qualify as derivatives, letters of credit and other forms of non-cash collateral. These are not reflected in the table above. |
| | (b) | Current and noncurrent assets are shown net of collateral of $169 million and $53 million, respectively, and current and noncurrent liabilities are shown net of collateral of $167 million and $77 million, respectively. The total cash collateral posted, net of cash collateral received and offset against mark-to-market assets and liabilities was $466 million at December 31, 2017. |
| | (c) | Includes current and noncurrent liabilities relating to floating-to-fixed energy swap contracts with unaffiliated suppliers. |
| | (d) | Represents natural gas futures purchased by DPL as part of a natural gas hedging program approved by the DPSC. |
| | (e) | Of the collateral posted/(received), $(117) million represents variation margin on the exchanges. |
The following table provides a summary of the derivative fair value balances related to commodity contracts recorded by the Registrants as of December 31, 2016: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Successor | | | | Generation | | ComEd | | DPL | | PHI | | Exelon | Description | Economic Hedges | | Proprietary Trading | | Collateral and Netting(a)(e) | | Subtotal(b) | | Economic Hedges(c) | | Economic Hedges(d) | | Collateral and Netting(a) | | Subtotal | | Subtotal | | Total Derivatives | Mark-to-market derivative assets (current assets) | $ | 3,623 |
| | $ | 55 |
| | $ | (2,769 | ) | | $ | 909 |
| | $ | — |
| | $ | 2 |
| | $ | (2 | ) | | $ | — |
| | $ | — |
| | $ | 909 |
| Mark-to-market derivative assets (noncurrent assets) | 1,467 |
| | 21 |
| | (1,016 | ) | | 472 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 472 |
| Total mark-to-market derivative assets | 5,090 |
|
| 76 |
|
| (3,785 | ) | | 1,381 |
| | — |
| | 2 |
|
| (2 | ) |
| — |
|
| — |
|
| 1,381 |
| Mark-to-market derivative liabilities (current liabilities) | (3,165 | ) | | (54 | ) | | 2,964 |
| | (255 | ) | | (19 | ) | | — |
| | — |
| | — |
| | — |
| | (274 | ) | Mark-to-market derivative liabilities (noncurrent liabilities) | (1,274 | ) | | (25 | ) | | 1,150 |
| | (149 | ) | | (239 | ) | | — |
| | — |
| | — |
| | — |
| | (388 | ) | Total mark-to-market derivative liabilities | (4,439 | ) |
| (79 | ) |
| 4,114 |
| | (404 | ) | | (258 | ) | | — |
| | — |
|
| — |
|
| — |
|
| (662 | ) | Total mark-to-market derivative net assets (liabilities) | $ | 651 |
|
| $ | (3 | ) |
| $ | 329 |
| | $ | 977 |
| | $ | (258 | ) | | $ | 2 |
| | $ | (2 | ) |
| $ | — |
|
| $ | — |
|
| $ | 719 |
|
__________ | | (a) | Exelon, Generation, PHI and DPL net all available amounts allowed under the derivative authoritative guidance on the balance sheet. These amounts include unrealized derivative transactions with the same counterparty under legally enforceable master netting agreements and cash collateral. In some cases, Exelon and Generation may have other offsetting exposures, subject to a master netting or similar agreement, such as trade receivables and payables, transactions that do not qualify as derivatives, and letters of credit and other forms of non-cash collateral. These are not reflected in the table above. |
| | (b) | Current and noncurrent assets are shown net of collateral of $100 million and $72 million, respectively, and current and noncurrent liabilities are shown net of collateral of $95 million and $62 million, respectively. The total cash collateral posted, net of cash collateral received and offset against mark-to-market assets and liabilities was $329 million at December 31, 2016. |
| | (c) | Includes current and noncurrent liabilities relating to floating-to-fixed energy swap contracts with unaffiliated suppliers. |
| | (d) | Represents natural gas futures purchased by DPL as part of a natural gas hedging program approved by the DPSC. |
| | (e) | Of the collateral posted/(received), $(158) million represents variation margin on the exchanges |
|
| Derivative Instruments, Gain (Loss) |
For the years ended December 31, 2017, 2016 and 2015, Exelon and Generation recognized the following net pre-tax commodity mark-to-market gains (losses) which are also located in the "Net fair value changes related to derivatives" on the Consolidated Statements of Cash Flows. | | | | | | | | | | | | | | | | For the Years Ended December 31, |
| | 2017 | | 2016 | | 2015 | Income Statement Location | | Gain (Loss) | Operating revenues | | $ | (126 | ) | | $ | (490 | ) | | $ | 196 |
| Purchased power and fuel | | (43 | ) | | 459 |
| | 54 |
| Total Exelon and Generation | | $ | (169 | ) | | $ | (31 | ) | | $ | 250 |
|
Exelon and Generation include the gain or loss on the hedged items and the offsetting loss or gain on the related interest rate swaps as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | Income Statement Location | | 2017 | | 2016 | | 2015 | | 2017 | | 2016 | | 2015 | | Gain (Loss) on Swaps | | Gain (Loss) on Borrowings | Generation | Interest expense(a) | | $ | — |
| | $ | — |
| | $ | (1 | ) | | $ | — |
| | $ | — |
| | $ | — |
| Exelon | Interest expense | | (13 | ) | | (9 | ) | | 3 |
| | 28 |
| | 23 |
| | 14 |
|
__________ | | (a) | For the year ended December 31, 2015, the loss on Generation swaps included $(1) million realized in earnings with an immaterial amount excluded from hedge effectiveness testing. |
For the years ended December 31, 2017, 2016 and 2015, Exelon and Generation recognized the following net pre-tax mark-to-market gains (losses) in the Consolidated Statements of Operations and Comprehensive Income and are included in “Net fair value changes related to derivatives” in Exelon’s and Generation’s Consolidated Statements of Cash Flows. | | | | | | | | | | | | | | | | | | | | For the Years Ended December 31, | | | | | 2017 | | 2016 | | 2015 | | | Income Statement Location | | Gain (Loss) | Generation | | Operating Revenues | | $ | (6 | ) | | $ | (10 | ) | | $ | 7 |
| Generation | | Interest Expense | | (3 | ) | | — |
| | — |
| Total Generation | | | | $ | (9 | ) | | $ | (10 | ) | | $ | 7 |
|
| | | | | | | | | | | | | | | | | | | | For the Years Ended December 31, | | | | | 2017 | | 2016 | | 2015 | | | Income Statement Location | | Gain (Loss) | Exelon | | Operating Revenues | | $ | (6 | ) | | $ | (10 | ) | | $ | 7 |
| Exelon | | Interest Expense | | (3 | ) | | — |
| | 100 |
| Total Exelon | | | | $ | (9 | ) | | $ | (10 | ) | | $ | 107 |
|
|
| The activity of accumulated OCI related to cash flow hedges |
| | | | | | | | | | | | | | | | | Total Cash Flow Hedge AOCI Activity, Net of Income Tax | | | | | | Generation | | Exelon | | For the Year Ended December 31, 2017 | | Income Statement Location | | Total Cash
Flow Hedges | | Total Cash Flow Hedges | | AOCI derivative loss at December 31, 2016 | | | | $ | (19 | ) | | $ | (17 | ) | | Effective portion of changes in fair value | | | | (1 | ) | | (1 | ) | | Reclassifications from AOCI to net income | | Interest expense | | 4 |
| (a) | 4 |
| (a) | AOCI derivative loss at December 31, 2017 | | | | $ | (16 | ) | | $ | (14 | ) | |
| | | | | | | | | | | | | | | | | Total Cash Flow Hedge AOCI Activity, Net of Income Tax | | | | | | Generation | | Exelon | | For the Year Ended December 31, 2016 | | Income Statement Location | | Total Cash
Flow Hedges | | Total Cash Flow Hedges | | AOCI derivative loss at December 31, 2015 | | | | $ | (21 | ) | | $ | (19 | ) | | Effective portion of changes in fair value | | | | (6 | ) | | (6 | ) | | Reclassifications from AOCI to net income | | Interest expense | | 8 |
| (b) | 8 |
| (b) | AOCI derivative loss at December 31, 2016 | | | | $ | (19 | ) | | $ | (17 | ) | |
__________ | | (a) | Amount is net of related income tax expense of $1 million for the year ended December 31, 2017. |
| | (b) | Amount is net of related income tax expense of $5 million for the year ended December 31, 2016. |
|
| Change in fair value of derivative contracts |
For the years ended December 31, 2017, 2016 and 2015, Exelon and Generation recognized the following net pre-tax commodity mark-to-market gains (losses) which are also included in the "Net fair value changes related to derivatives" on the Consolidated Statements of Cash Flows. The Utility Registrants do not execute derivatives for proprietary trading purposes. | | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | Income Statement Location | | Gain (Loss) | Operating revenues | | $ | 6 |
| | $ | 2 |
| | $ | (6 | ) |
For the years ended December 31, 2017, 2016 and 2015, Exelon and Generation recognized the following net pre-tax commodity mark-to-market gains (losses). | | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | Income Statement Location | | Gain (Loss) | Operating revenues | | $ | (1 | ) | | $ | (1 | ) | | $ | (2 | ) |
|
| Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] |
The table below provides the notional amounts of fixed-to-floating hedges outstanding held by Exelon at December 31, 2017 and 2016. | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | Fixed-to-floating hedges | | $ | 800 |
| | $ | 800 |
|
The table below provides the notional amounts of floating-to-fixed hedges outstanding held by Exelon and Generation at December 31, 2017 and 2016. | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | Floating-to-fixed hedges | | $ | 636 |
| | $ | 659 |
|
The following table provides notional amounts outstanding held by Exelon and Generation at December 31, 2017 and 2016 related to foreign currency exchange rate swaps that are marked-to-market to manage the exposure associated with international purchases of commodities in currencies other than U.S. dollars. | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | Foreign currency exchange rate swaps | | $ | 94 |
| | $ | 85 |
|
|
| Disclosure of Credit Derivatives [Table Text Block] |
The figures in the tables below exclude credit risk exposure from individual retail counterparties, nuclear fuel procurement contracts and exposure through RTOs, ISOs, NYMEX, ICE, NASDAQ, NGX and Nodal commodity exchanges. Additionally, the figures in the tables below exclude exposures with affiliates, including net receivables with ComEd, PECO, BGE, Pepco, DPL and ACE of $28 million, $22 million, $24 million, $36 million, $12 million and $6 million as of December 31, 2017, respectively. | | | | | | | | | | | | | | | | | | | | Rating as of December 31, 2017 | Total Exposure Before Credit Collateral | | Credit Collateral (a) | | Net Exposure | | Number of Counterparties Greater than 10% of Net Exposure | | Net Exposure of Counterparties Greater than 10% of Net Exposure | Investment grade | $ | 738 |
|
| $ | 4 |
| | $ | 734 |
| | 1 |
| | $ | 244 |
| Non-investment grade | 90 |
|
| 12 |
| | 78 |
| | — |
| | — |
| No external ratings |
|
|
| |
| | | | | Internally rated — investment grade | 253 |
|
| — |
| | 253 |
| | — |
| | — |
| Internally rated — non-investment grade | 83 |
|
| 11 |
| | 72 |
| | — |
| | — |
| Total | $ | 1,164 |
|
| $ | 27 |
| | $ | 1,137 |
| | 1 |
| | $ | 244 |
|
| | | | | Net Credit Exposure by Type of Counterparty | December 31, 2017 | Financial institutions | $ | 41 |
| Investor-owned utilities, marketers, power producers | 558 |
| Energy cooperatives and municipalities | 452 |
| Other | 86 |
| Total | $ | 1,137 |
|
__________ | | (a) | As of December 31, 2017, credit collateral held from counterparties where Generation had credit exposure included $8 million of cash and $19 million of letters of credit. The credit collateral does not include non-liquid collateral. |
|
| Fair Value, Concentration of Risk [Table Text Block] |
The aggregate fair value of all derivative instruments with credit-risk-related contingent features in a liability position that are not fully collateralized (excluding transactions on the exchanges that are fully collateralized) is detailed in the table below: | | | | | | | | | | For the Years Ended December 31, | Credit-Risk Related Contingent Feature | 2017 | | 2016 | Gross fair value of derivative contracts containing this feature(a) | $ | (926 | ) | | $ | (960 | ) | Offsetting fair value of in-the-money contracts under master netting arrangements(b) | 577 |
| | 627 |
| Net fair value of derivative contracts containing this feature(c) | $ | (349 | ) | | $ | (333 | ) |
__________ | | (a) | Amount represents the gross fair value of out-of-the-money derivative contracts containing credit-risk-related contingent features ignoring the effects of master netting agreements. |
| | (b) | Amount represents the offsetting fair value of in-the-money derivative contracts under legally enforceable master netting agreements with the same counterparty, which reduces the amount of any liability for which a Registrant could potentially be required to post collateral. |
| | (c) | Amount represents the net fair value of out-of-the-money derivative contracts containing credit-risk related contingent features after considering the mitigating effects of offsetting positions under master netting arrangements and reflects the actual net liability upon which any potential contingent collateral obligations would be based. |
|