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Fair Value of Financial Assets and Liabilities (Tables)
 3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value of Financial Liabilities Recorded at Amortized Cost
Fair Value of Financial Liabilities Recorded at Amortized Cost
The following tables present the carrying amounts and fair values of the Registrants’ short-term liabilities, long-term debt, SNF obligation, and trust preferred securities (long-term debt to financing trusts or junior subordinated debentures) as of March 31, 2021 and December 31, 2020. The Registrants have no financial liabilities classified as Level 1.
The carrying amounts of the Registrants’ short-term liabilities as presented on their Consolidated Balance Sheets are representative of their fair value (Level 2) because of the short-term nature of these instruments.
March 31, 2021December 31, 2020
Carrying AmountFair ValueCarrying AmountFair Value
Level 2Level 3TotalLevel 2Level 3Total
Long-Term Debt, including amounts due within one year(a)
Exelon$38,529 $39,255 $3,115 $42,370 $36,912 $40,688 $3,064 $43,752 
Generation6,060 5,497 1,158 6,655 6,087 5,648 1,208 6,856 
ComEd9,674 10,853 — 10,853 8,983 11,117 — 11,117 
PECO4,125 4,491 50 4,541 3,753 4,553 50 4,603 
BGE3,665 3,991 — 3,991 3,664 4,366 — 4,366 
PHI7,577 6,050 1,907 7,957 7,006 6,099 1,806 7,905 
Pepco3,317 3,112 823 3,935 3,165 3,336 748 4,084 
DPL1,802 1,386 524 1,910 1,677 1,484 455 1,939 
ACE1,718 1,302 560 1,862 1,413 1,018 602 1,620 
Long-Term Debt to Financing Trusts(a)
Exelon$390 $— $465 $465 $390 $— $467 $467 
ComEd205 — 243 243 205 — 246 246 
PECO184 — 222 222 184 — 221 221 
SNF Obligation
Exelon$1,208 $979 $— $979 $1,208 $909 $— $909 
Generation1,208 979 — 979 1,208 909 — 909 
__________
(a)Includes unamortized debt issuance costs which are not fair valued.
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
Recurring Fair Value Measurements
The following tables present assets and liabilities measured and recorded at fair value in the Registrants' Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of March 31, 2021 and December 31, 2020:
Exelon and Generation
ExelonGeneration
As of March 31, 2021Level 1Level 2Level 3Not subject to levelingTotalLevel 1Level 2Level 3Not subject to levelingTotal
Assets
Cash equivalents(a)
$968 $— $— $— $968 $125 $— $— $— $125 
NDT fund investments
Cash equivalents(b)
509 95 — — 604 509 95 — — 604 
Equities4,439 1,574 — 1,555 7,568 4,439 1,574 — 1,555 7,568 
Fixed income
Corporate debt(c)
— 1,023 283 — 1,306 — 1,023 283 — 1,306 
U.S. Treasury and agencies2,030 41 — — 2,071 2,030 41 — — 2,071 
Foreign governments — 51 — — 51 — 51 — — 51 
State and municipal debt — 40 — — 40 — 40 — — 40 
Other40 35 — 1,285 1,360 40 35 — 1,285 1,360 
Fixed income subtotal2,070 1,190 283 1,285 4,828 2,070 1,190 283 1,285 4,828 
Private credit— — 196 617 813 — — 196 617 813 
Private equity— — — 532 532 — — — 532 532 
Real estate— — — 686 686 — — — 686 686 
NDT fund investments subtotal(d)(e)
7,018 2,859 479 4,675 15,031 7,018 2,859 479 4,675 15,031 
Rabbi trust investments
Cash equivalents60 — — — 60 4 — — — 4 
Mutual funds95 — — — 95 31 — — — 31 
Fixed income— 10 — — 10 — — — — — 
Life insurance contracts — 89 35 — 124 — 29 — — 29 
Rabbi trust investments subtotal155 99 35 — 289 35 29 — — 64 
Investments in equities(f)
177 — — — 177 177 — — — 177 
Commodity derivative assets
Economic hedges478 1,748 1,740 — 3,966 478 1,748 1,740 — 3,966 
Proprietary trading— 16 17 — 33 — 16 17 — 33 
Effect of netting and allocation of collateral(g)(h)
(356)(1,387)(1,199)— (2,942)(356)(1,387)(1,199)— (2,942)
Commodity derivative assets subtotal122 377 558 — 1,057 122 377 558 — 1,057 
DPP consideration— 401 — — 401 — 401 — — 401 
ExelonGeneration
As of March 31, 2021Level 1Level 2Level 3Not subject to levelingTotalLevel 1Level 2Level 3Not subject to levelingTotal
Total assets8,440 3,736 1,072 4,675 17,923 7,477 3,666 1,037 4,675 16,855 
Liabilities
Commodity derivative liabilities
Economic hedges(359)(1,642)(1,945)— (3,946)(359)(1,642)(1,650)— (3,651)
Proprietary trading— (9)(5)— (14)— (9)(5)— (14)
Effect of netting and allocation of collateral(g)(h)
252 1,532 1,304 — 3,088 252 1,532 1,304 — 3,088 
Commodity derivative liabilities subtotal(107)(119)(646)— (872)(107)(119)(351)— (577)
Deferred compensation obligation— (146)— — (146)— (43)— — (43)
Total liabilities(107)(265)(646)— (1,018)(107)(162)(351)— (620)
Total net assets$8,333 $3,471 $426 $4,675 $16,905 $7,370 $3,504 $686 $4,675 $16,235 
ExelonGeneration
As of December 31, 2020Level 1Level 2Level 3Not subject to levelingTotalLevel 1Level 2Level 3Not subject to levelingTotal
Assets
Cash equivalents(a)
$686 $— $— $— $686 $124 $— $— $— $124 
NDT fund investments
Cash equivalents(b)
210 95 — — 305 210 95 — — 305 
Equities3,886 2,077 — 1,562 7,525 3,886 2,077 — 1,562 7,525 
Fixed income
Corporate debt(c)
— 1,485 285 — 1,770 — 1,485 285 — 1,770 
U.S. Treasury and agencies1,871 126 — — 1,997 1,871 126 — — 1,997 
Foreign governments — 56 — — 56 — 56 — — 56 
State and municipal debt — 101 — — 101 — 101 — — 101 
Other— 41 — 961 1,002 — 41 — 961 1,002 
Fixed income subtotal1,871 1,809 285 961 4,926 1,871 1,809 285 961 4,926 
Private credit— — 212 629 841 — — 212 629 841 
Private equity — — — 504 504 — — — 504 504 
Real estate— — — 679 679 — — — 679 679 
NDT fund investments subtotal(d)(e)
5,967 3,981 497 4,335 14,780 5,967 3,981 497 4,335 14,780 
Rabbi trust investments
Cash equivalents60 — — — 60 4 — — — 4 
Mutual funds91 — — — 91 29 — — — 29 
Fixed income— 11 — — 11 — — — — — 
Life insurance contracts — 87 34 — 121 — 28 — — 28 
Rabbi trust investments subtotal151 98 34 — 283 33 28 — — 61 
Investments in equities(f)
195 — — — 195 195 — — — 195 
Commodity derivative assets
Economic hedges745 1,914 1,599 — 4,258 745 1,914 1,599 — 4,258 
Proprietary trading— 17 27 — 44 — 17 27 — 44 
Effect of netting and allocation of collateral(g)(h)
(607)(1,597)(905)— (3,109)(607)(1,597)(905)— (3,109)
Commodity derivative assets subtotal138 334 721 — 1,193 138 334 721 — 1,193 
DPP consideration— 639 — — 639 — 639 — — 639 
Total assets7,137 5,052 1,252 4,335 17,776 6,457 4,982 1,218 4,335 16,992 
Liabilities
Commodity derivative liabilities
Economic hedges(682)(1,928)(1,655)— (4,265)(682)(1,928)(1,354)— (3,964)
Proprietary trading— (21)(4)— (25)— (21)(4)— (25)
Effect of netting and allocation of collateral(g)(h)
540 1,918 1,067 — 3,525 540 1,918 1,067 — 3,525 
Commodity derivative liabilities subtotal(142)(31)(592)— (765)(142)(31)(291)— (464)
Deferred compensation obligation— (145)— — (145)— (42)— — (42)
Total liabilities(142)(176)(592)— (910)(142)(73)(291)— (506)
Total net assets$6,995 $4,876 $660 $4,335 $16,866 $6,315 $4,909 $927 $4,335 $16,486 
__________    
(a)Exelon excludes cash of $1,273 million and $409 million at March 31, 2021 and December 31, 2020, respectively, and restricted cash of $93 million and $59 million at March 31, 2021 and December 31, 2020, respectively, and includes long-term restricted cash of $52 million and $53 million at March 31, 2021 and December 31, 2020, respectively, which is reported in Other deferred debits in the Consolidated Balance Sheets. Generation excludes cash of $608 million and $171 million at March 31, 2021 and December 31, 2020, respectively, and restricted cash of $29 million and $20 million at March 31, 2021 and December 31, 2020, respectively. 
(b)Includes $108 million and $116 million of cash received from outstanding repurchase agreements at March 31, 2021 and December 31, 2020, respectively, and is offset by an obligation to repay upon settlement of the agreement as discussed in (e) below.
(c)Includes investments in equities sold short of $(58) million and $(62) million as of March 31, 2021 and December 31, 2020, respectively, held in an investment vehicle primarily to hedge the equity option component of its convertible debt.
(d)Includes derivative assets of less than $1 million and $2 million, which have total notional amounts of $2,049 million and $1,043 million at March 31, 2021 and December 31, 2020, respectively. The notional principal amounts for these instruments provide one measure of the transaction volume outstanding as of the periods ended and do not represent the amount of Exelon and Generation's exposure to credit or market loss.
(e)Excludes net liabilities of $104 million and $181 million at March 31, 2021 and December 31, 2020, respectively, which include certain derivative assets that have notional amounts of $158 million and $104 million at March 31, 2021 and December 31, 2020, respectively. These items consist of receivables related to pending securities sales, interest and dividend receivables, repurchase agreement obligations, and payables related to pending securities purchases. The repurchase agreements are generally short-term in nature with durations generally of 30 days or less.
(f)Includes equity investments held by Generation which were previously designated as equity investments without readily determinable fair value but are now publicly traded and therefore have readily determinable fair values. Generation recorded the fair value of these investments in Other current assets on Exelon's and Generation's Consolidated Balance Sheets based on the quoted market prices of the stocks at March 31, 2021 and December 31, 2020, which resulted in unrealized gains of $95 million and $186 million within Other, net in Exelon's and Generation's Consolidated Statement of Operations and Comprehensive Income for the three months ended March 31, 2021 and for the year ended December 31, 2020, respectively.
(g)Collateral (received)/posted from counterparties, net of collateral paid to counterparties, totaled $(104) million, $145 million, and $105 million allocated to Level 1, Level 2, and Level 3 mark-to-market derivatives, respectively, as of March 31, 2021. Collateral (received)/posted from counterparties, net of collateral paid to counterparties, totaled $(67) million, $321 million, and $162 million allocated to Level 1, Level 2, and Level 3 mark-to-market derivatives, respectively, as of December 31, 2020.
(h)Of the collateral (received)/posted, $(148) million and $209 million represents variation margin on the exchanges as of March 31, 2021 and December 31, 2020, respectively.
As of March 31, 2021, Exelon and Generation have outstanding commitments to invest in private credit, private equity, and real estate investments of approximately $298 million, $239 million, and $344 million, respectively. These commitments will be funded by Generation’s existing NDT funds.
Exelon and Generation hold investments without readily determinable fair values with carrying amounts of $61 million and $50 million as of March 31, 2021, respectively. Changes in fair value, cumulative adjustments, and impairments were not material for the three months ended March 31, 2021.
ComEd, PECO, and BGE
ComEdPECOBGE
As of March 31, 2021Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$300 $— $— $300 $7 $— $— $7 $— $— $— $— 
Rabbi trust investments
Mutual funds— — — — 9 — — 9 11 — — 11 
Life insurance contracts — — — — — 13 — 13 — — — — 
Rabbi trust investments subtotal— — — — 9 13 — 22 11 — — 11 
Total assets300 — — 300 16 13 — 29 11 — — 11 
Liabilities
Deferred compensation obligation— (8)— (8)— (9)— (9)— (6)— (6)
Mark-to-market derivative liabilities(b)
— — (295)(295)— — — — — — — — 
Total liabilities— (8)(295)(303)— (9)— (9)— (6)— (6)
Total net assets (liabilities)$300 $(8)$(295)$(3)$16 $4 $— $20 $11 $(6)$— $5 
ComEdPECOBGE
As of December 31, 2020Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$285 $— $— $285 $8 $— $— $8 $120 $— $— $120 
Rabbi trust investments
Mutual funds— — — — 9 — — 9 10 — — 10 
Life insurance contracts — — — — — 13 — 13 — — — — 
Rabbi trust investments subtotal— — — — 9 13 — 22 10 — — 10 
Total assets285 — — 285 17 13 — 30 130 — — 130 
Liabilities
Deferred compensation obligation— (8)— (8)— (9)— (9)— (5)— (5)
Mark-to-market derivative liabilities(b)
— — (301)(301)— — — — — — — — 
Total liabilities— (8)(301)(309)— (9)— (9)— (5)— (5)
Total net assets (liabilities)$285 $(8)$(301)$(24)$17 $4 $— $21 $130 $(5)$— $125 
__________
(a)ComEd excludes cash of $59 million and $83 million at March 31, 2021 and December 31, 2020, respectively, and restricted cash of $40 million and $37 million at March 31, 2021 and December 31, 2020, respectively, and includes long-term restricted cash of $43 million at both March 31, 2021 and December 31, 2020, respectively, which is reported in Other deferred debits in the Consolidated Balance Sheets. PECO excludes cash of $48 million and $18 million at March 31, 2021 and December 31, 2020, respectively. BGE excludes cash of $21 million and $24 million at March 31, 2021 and December 31, 2020, respectively, and restricted cash of $1 million at both March 31, 2021 and December 31, 2020.
(b)The Level 3 balance consists of the current and noncurrent liability of $31 million and $264 million, respectively, at March 31, 2021 and $33 million and $268 million, respectively, at December 31, 2020 related to floating-to-fixed energy swap contracts with unaffiliated suppliers.
PHI, Pepco, DPL, and ACE
As of March 31, 2021As of December 31, 2020
PHI Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$527 $— $— $527 $86 $— $— $86 
Rabbi trust investments
Cash equivalents
53 — — 53 55 — — 55 
Mutual funds
15 — — 15 14 — — 14 
Fixed income
— 10 — 10 — 11 — 11 
Life insurance contracts
— 26 35 61 — 26 34 60 
Rabbi trust investments subtotal68 36 35 139 69 37 34 140 
Total assets595 36 35 666 155 37 34 226 
Liabilities
Deferred compensation obligation— (16)— (16)— (17)— (17)
Total liabilities— (16)— (16)— (17)— (17)
Total net assets$595 $20 $35 $650 $155 $20 $34 $209 
PepcoDPLACE
As of March 31, 2021Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$128 $— $— $128 $50 $— $— $50 $349 $— $— $349 
Rabbi trust investments
Cash equivalents
53 — — 53 — — — — — — — — 
Fixed income
— 2 — 2 — — — — — — — — 
Life insurance contracts
— 26 35 61 — — — — — — — — 
Rabbi trust investments subtotal53 28 35 116 — — — — — — — — 
Total assets181 28 35 244 50 — — 50 349 — — 349 
Liabilities
Deferred compensation obligation— (2)— (2)— — — — — — — — 
Total liabilities— (2)— (2)— — — — — — — — 
Total net assets$181 $26 $35 $242 $50 $— $— $50 $349 $— $— $349 
PepcoDPLACE
As of December 31, 2020Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$35 $— $— $35 $— $— $— $— $13 $— $— $13 
Rabbi trust investments
Cash equivalents
53 — — 53 — — — — — — — — 
Fixed income
— 2 — 2 — — — — — — — — 
Life insurance contracts
— 26 34 60 — — — — — — — — 
Rabbi trust investments subtotal53 28 34 115 — — — — — — — — 
Total assets88 28 34 150 — — — — 13 — — 13 
Liabilities
Deferred compensation obligation— (2)— (2)— — — — — — — — 
Total liabilities— (2)— (2)— — — — — — — — 
Total net assets$88 $26 $34 $148 $— $— $— $— $13 $— $— $13 
__________
(a)PHI excludes cash of $72 million and $74 million at March 31, 2021 and December 31, 2020, respectively, and restricted cash of $5 million and none at March 31, 2021 and December 31, 2020, respectively, and includes long-term restricted cash of $9 million and $10 million at March 31, 2021 and December 31, 2020, respectively, which is reported in Other deferred debits in the Consolidated Balance Sheets. Pepco excludes cash of $34 million and $30 million at March 31, 2021 and December 31, 2020, respectively, and restricted cash of $5 million and none at March 31, 2021 and December 31, 2020, respectively. DPL excludes cash of $14 million and $15 million at March 31, 2021 and December 31, 2020, respectively. ACE excludes cash of $17 million at both March 31, 2021 and December 31, 2020, respectively, and includes long-term restricted cash of $9 million and $10 million at March 31, 2021 and December 31, 2020, respectively, which is reported in Other deferred debits in the Consolidated Balance Sheets.
Fair Value Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
Reconciliation of Level 3 Assets and Liabilities
The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis during the three months ended March 31, 2021 and 2020:
ExelonGenerationComEdPHI and Pepco
Three months ended March 31, 2021Total NDT Fund
Investments		Mark-to-Market
Derivatives		Total GenerationMark-to-Market
Derivatives		Life Insurance ContractsEliminated in Consolidation
Balance as of December 31, 2020$660 $497 $430 $927 $(301)$34 $— 
Total realized / unrealized gains (losses)
Included in net income(276)1 (278)
(a)
(277)— 1 — 
Included in noncurrent payables to affiliates— 1 — 1 — — (1)
Included in regulatory assets
7 — — — 6 
(b)
— 1 
Change in collateral(57)— (57)(57)— — — 
Purchases, sales, issuances and settlements
Purchases109 — 109 109 — — — 
Sales1 — 1 1 — — — 
Settlements(20)(20)— (20)— — — 
Transfers out of Level 32 — 2 
(c)
2 — — — 
Balance as of March 31, 2021$426 $479 $207 $686 $(295)$35 $— 
The amount of total (losses) gains included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of March 31, 2021$(147)$1 $(149)$(148)$— $1 $— 
ExelonGenerationComEdPHI and Pepco
Three Months Ended March 31, 2020Total NDT Fund
Investments		Mark-to-Market
Derivatives		Total GenerationMark-to-Market
Derivatives		Life Insurance ContractsEliminated in Consolidation
Balance as of December 31, 2019$1,068 $511 $817 $1,328 $(301)$41 $— 
Total realized / unrealized gains (losses)
Included in net income10 (1)10 
(a)
9 — 1 — 
Included in noncurrent payables to affiliates— (1)— (1)— — 1 
Included in regulatory assets
(14)— — — (13)
(b)
— (1)
Change in collateral1 — 1 1 — — — 
Purchases, sales, issuances and settlements
Purchases42 3 39 42 — — — 
Sales(22)— (22)(22)— — — 
Settlements(14)(14)— (14)— — — 
Transfers into Level 32 — 2 
(c)
2 — — — 
Transfers out of Level 315 — 15 
(c)
15 — — — 
Balance as of March 31, 2020$1,088 $498 $862 $1,360 $(314)$42 $— 
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of March 31, 2020$187 $(1)$187 $186 $— $1 $— 
__________
(a)Includes a reduction for the reclassification of $129 million and $177 million of realized losses due to the settlement of derivative contracts for the three months ended March 31, 2021 and 2020 respectively.
(b)Includes $2 million of decreases in fair value and an increase for realized losses due to settlements of $8 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended March 31, 2021. Includes $23 million of decrease in fair value and an increase for realized losses due to settlements of $10 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended March 31, 2020.
(c)Transfers into and out of Level 3 generally occur when the contract tenor becomes less and more observable respectively, primarily due to changes in market liquidity or assumptions for certain commodity contracts.
Total Realized and Unrealized Gains (Losses) Included in Income for Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present the income statement classification of the total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis during the three months ended March 31, 2021 and 2020:
ExelonGenerationPHI and Pepco
Operating
Revenues		Purchased
Power and
Fuel		Operating and MaintenanceOther, netOperating
Revenues		Purchased
Power and
Fuel		Other, netOperating and Maintenance
Total (losses) gains for the three months ended March 31, 2021$(116)$(162)$1 $1 $(116)$(162)$1 $1 
Total unrealized (losses) gains for the three months ended March 31, 2021(65)(84)1 1 (65)(84)1 1 
ExelonGenerationPHI and Pepco
Operating
Revenues		Purchased
Power and
Fuel		Operating and MaintenanceOther, netOperating
Revenues		Purchased
Power and
Fuel		Other, netOperating and Maintenance
Total gains (losses) for the three months ended March 31, 2020$72 $(62)$1 $(1)$72 $(62)$(1)$1 
Total unrealized gains (losses) gains for the three months ended March 31, 2020205 (18)1 (1)205 (18)(1)1 
Fair Value Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis, Valuation Technique
Mark-to-Market Derivatives (Exelon, Generation and ComEd)
The table below discloses the significant inputs to the forward curve used to value mark-to-market derivatives.
Type of tradeFair Value at March 31, 2021Fair Value at December 31, 2020Valuation
Technique		Unobservable
Input		2021 Range & Arithmetic Average2020 Range & Arithmetic Average
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(b)
$90 $245 Discounted
Cash Flow		Forward power
price		$1.35-$235$32$2.25-$163$30
Forward gas
price		$1.42-$8.18$2.59$1.57-$7.88$2.59
Option
Model		Volatility
percentage		11%-116%27%11%-237%32%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(b)
$12 $23 Discounted
Cash Flow		Forward power
price		$9-$102$30$10-$106$27
Mark-to-market derivatives (Exelon and ComEd)$(295)$(301)Discounted
Cash Flow
Forward heat
rate(c)
8x-9x8.85x8x-9x8.85x
Marketability
reserve		3%-8%4.93%3%-8%4.93%
Renewable
factor		90%-123%99%91%-123%99%
__________
(a)The valuation techniques, unobservable inputs, ranges and arithmetic averages are the same for the asset and liability positions.
(b)The fair values do not include cash collateral posted on level three positions of $105 million and $162 million as of March 31, 2021 and December 31, 2020, respectively.
(c)Quoted forward natural gas rates are utilized to project the forward power curve for the delivery of energy at specified future dates. The natural gas curve is extrapolated beyond its observable period to the end of the contract’s delivery.