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Fair Value of Financial Assets and Liabilities (All Registrants)
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value of Financial Assets and Liabilities (All Registrants) Fair Value of Financial Assets and Liabilities (All Registrants)
Exelon measures and classifies fair value measurements in accordance with the hierarchy as defined by GAAP. The hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:
•Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities that the Registrants have the ability to liquidate as of the reporting date.
•Level 2 — inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data.
•Level 3 — unobservable inputs, such as internally developed pricing models or third-party valuations for the asset or liability due to little or no market activity for the asset or liability.
Exelon’s valuation techniques used to measure the fair value of the assets and liabilities shown in the tables below are in accordance with the policies discussed in Note 17 — Fair Value of Financial Assets and Liabilities of the 2023 Form 10-K.
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, and trust preferred securities (long-term debt to financing trusts or junior subordinated debentures) as of September 30, 2024 and December 31, 2023. The Registrants have no financial liabilities measured using the NAV practical expedient.
The carrying amounts of the Registrants’ short-term liabilities as presented in their Consolidated Balance Sheets are representative of their fair value (Level 2) because of the short-term nature of these instruments.
September 30, 2024December 31, 2023
Carrying AmountFair ValueCarrying AmountFair Value
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Long-Term Debt, including amounts due within one year(a)
Exelon$44,655 $— $37,642 $3,937 $41,579 $41,095 $— $33,804 $3,442 $37,246 
ComEd12,028 — 10,957 — 10,957 11,486 — 10,210 — 10,210 
PECO5,703 — 5,156 — 5,156 5,134 — 4,562 — 4,562 
BGE5,395 — 5,021 — 5,021 4,602 — 4,145 — 4,145 
PHI9,135 — 4,333 3,937 8,270 8,648 — 4,160 3,442 7,602 
Pepco4,362 — 2,638 1,634 4,272 4,096 — 2,311 1,600 3,911 
DPL2,221 — 667 1,329 1,996 2,080 — 694 1,134 1,828 
ACE1,935 — 809 974 1,783 1,833 — 939 708 1,647 
Long-Term Debt to Financing Trusts
Exelon$390 $— $— $409 $409 $390 $— $— $390 $390 
ComEd206 — — 215 215 205 — — 208 208 
PECO184 — — 194 194 184 — — 182 182 
__________
(a)Includes unamortized debt issuance costs, unamortized debt discount and premium, net, purchase accounting fair value adjustments, and finance lease liabilities which are not fair valued. Refer to Note 16 — Debt and Credit Agreements of the 2023 Form 10-K for unamortized debt issuance costs, unamortized debt discount and premium, net, and purchase accounting fair value adjustments and Note 10 — Leases of the 2023 Form 10-K for finance lease liabilities.
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 at September 30, 2024 and December 31, 2023. Exelon and the Utility Registrants have immaterial and no financial assets or liabilities measured using the NAV practical expedient, respectively:
Exelon
At September 30, 2024At December 31, 2023
Level 1Level 2Level 3TotalLevel 1 Level 2Level 3Total
Assets
Cash equivalents(a)
$861 $— $— $861 $618 $— $— $618 
Rabbi trust investments
Cash equivalents93 — — 93 67 — — 67 
Mutual funds62 — — 62 53 — — 53 
Fixed income— 7 — 7 — 7 — 7 
Life insurance contracts — 70 22 92 — 61 43 104 
Rabbi trust investments subtotal155 77 22 254 120 68 43 231 
Interest rate derivative assets
Derivatives designated as hedging instruments— — — — — 11 — 11 
Economic hedges— — — — — 1 — 1 
Interest rate derivative assets subtotal— — — — — 12 — 12 
Total assets1,016 77 22 1,115 738 80 43 861 
Liabilities
Commodity derivative liabilities— — (165)(165)— — (133)(133)
Interest rate derivative liabilities
Derivatives designated as hedging instruments— (39)— (39)— (24)— (24)
Economic hedges— — — — — (22)— (22)
Interest rate derivative liabilities subtotal — (39)— (39)— (46)— (46)
Deferred compensation obligation— (75)— (75)— (75)— (75)
Total liabilities— (114)(165)(279)— (121)(133)(254)
Total net assets (liabilities)$1,016 $(37)$(143)$836 $738 $(41)$(90)$607 
__________    
(a)Exelon excludes cash of $205 million and $334 million at September 30, 2024 and December 31, 2023, respectively, and restricted cash of $167 million and $149 million at September 30, 2024 and December 31, 2023, respectively, and includes long-term restricted cash of $65 million and $174 million at September 30, 2024 and December 31, 2023, respectively, which is reported in Other deferred debits and other assets in the Consolidated Balance Sheets.
ComEd, PECO, and BGE
ComEdPECOBGE
At September 30, 2024Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$403 $— $— $403 $18 $— $— $18 $313 $— $— $313 
Rabbi trust investments
Mutual funds— — — — 11 — — 11 10 — — 10 
Life insurance contracts — — — — — 21 — 21 — — — — 
Rabbi trust investments subtotal— — — — 11 21 — 32 10 — — 10 
Total assets403 — — 403 29 21 — 50 323 — — 323 
Liabilities
Commodity derivative liabilities(b)
— — (165)(165)— — — — — — — — 
Deferred compensation obligation— (9)— (9)— (7)— (7)— (4)— (4)
Total liabilities— (9)(165)(174)— (7)— (7)— (4)— (4)
Total net assets (liabilities)$403 $(9)$(165)$229 $29 $14 $— $43 $323 $(4)$— $319 
ComEdPECOBGE
At December 31, 2023Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$453 $— $— $453 $9 $— $— $9 $— $— $— $— 
Rabbi trust investments
Mutual funds— — — — 9 — — 9 9 — — 9 
Life insurance contracts — — — — — 18 — 18 — — — — 
Rabbi trust investments subtotal— — — — 9 18 — 27 9 — — 9 
Total assets453 — — 453 18 18 — 36 9 — — 9 
Liabilities
Commodity derivative liabilities(b)
— — (133)(133)— — — — — — — — 
Deferred compensation obligation— (8)— (8)— (8)— (8)— (4)— (4)
Total liabilities— (8)(133)(141)— (8)— (8)— (4)— (4)
Total net assets (liabilities)$453 $(8)$(133)$312 $18 $10 $— $28 $9 $(4)$— $5 
__________
(a)ComEd excludes cash of $84 million and $86 million at September 30, 2024 and December 31, 2023, respectively, and restricted cash of $167 million and $147 million at September 30, 2024 and December 31, 2023, respectively. Additionally, ComEd includes long-term restricted cash of $65 million and $174 million at September 30, 2024 and December 31, 2023, respectively, which is reported in Other deferred debits and other assets in the Consolidated Balance Sheets. PECO excludes cash of $19 million and $42 million at September 30, 2024 and December 31, 2023, respectively. BGE excludes
cash of $18 million and $47 million at September 30, 2024 and December 31, 2023, respectively, and restricted cash of zero and $1 million at September 30, 2024 and December 31, 2023, respectively.
(b)The Level 3 balance consists of the current and noncurrent liability of $25 million and $140 million, respectively, at September 30, 2024 and $27 million and $106 million, respectively, at December 31, 2023 related to floating-to-fixed energy swap contracts with unaffiliated suppliers.
PHI, Pepco, DPL, and ACE
At September 30, 2024At December 31, 2023
PHI Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$74 $— $— $74 $107 $— $— $107 
Rabbi trust investments
Cash equivalents90 — — 90 64 — — 64 
Mutual funds9 — — 9 9 — — 9 
Fixed income— 7 — 7 — 7 — 7 
Life insurance contracts— 23 21 44 — 21 41 62 
Rabbi trust investments subtotal99 30 21 150 73 28 41 142 
Total assets173 30 21 224 180 28 41 249 
Liabilities
Deferred compensation obligation— (11)— (11)— (13)— (13)
Total liabilities— (11)— (11)— (13)— (13)
Total net assets$173 $19 $21 $213 $180 $15 $41 $236 
PepcoDPLACE
At September 30, 2024Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$21 $— $— $21 $3 $— $— $3 $— $— $— $— 
Rabbi trust investments
Cash equivalents90 — — 90 — — — — — — — — 
Life insurance contracts— 23 21 44 — — — — — — — — 
Rabbi trust investments subtotal90 23 21 134 — — — — — — — — 
Total assets111 23 21 155 3 — — 3 — — — — 
Liabilities
Deferred compensation obligation— (1)— (1)— — — — — — — — 
Total liabilities— (1)— (1)— — — — — — — — 
Total net assets$111 $22 $21 $154 $3 $— $— $3 $— $— $— $— 
PepcoDPLACE
At December 31, 2023Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$23 $— $— $23 $1 $— $— $1 $— $— $— $— 
Rabbi trust investments
Cash equivalents63 — — 63 — — — — — — — — 
Life insurance contracts— 21 41 62 — — — — — — — — 
Rabbi trust investments subtotal63 21 41 125 — — — — — — — — 
Total assets86 21 41 148 1 — — 1 — — — — 
Liabilities
Deferred compensation obligation— (1)— (1)— — — — — — — — 
Total liabilities— (1)— (1)— — — — — — — — 
Total net assets$86 $20 $41 $147 $1 $— $— $1 $— $— $— $— 
__________
(a)PHI excludes cash of $48 million and $96 million at September 30, 2024 and December 31, 2023, respectively, and restricted cash of zero and $1 million at September 30, 2024 and December 31, 2023, respectively. Pepco excludes cash of $19 million and $48 million at September 30, 2024 and December 31, 2023, respectively, and restricted cash of zero and $1 million at September 30, 2024 and December 31, 2023, respectively. DPL excludes cash of $7 million and $15 million at September 30, 2024 and December 31, 2023, respectively. ACE excludes cash of $17 million and $21 million at September 30, 2024 and December 31, 2023, respectively.

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 and nine months ended September 30, 2024 and 2023:
ExelonComEdPHI and Pepco
Three Months Ended September 30, 2024Total Commodity
Derivatives		Life Insurance Contracts
Balance at June 30, 2024$(116)$(139)$22 
Total realized / unrealized gains (losses)
Included in net income(a)
— — — 
Included in regulatory assets/liabilities(26)(26)
(b)
— 
Purchases, sales, and settlements
Settlements(1)— (1)
Balance at September 30, 2024$(143)$(165)
(c)
$21 
The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at September 30, 2024$— $— $— 
ExelonComEdPHI and Pepco
Three Months Ended September 30, 2023Total Commodity
Derivatives		Life Insurance Contracts
Balance at June 30, 2023$(91)$(133)$42 
Total realized / unrealized gains (losses)
Included in net income(a)
— — (2)
Included in regulatory assets/liabilities(1)(1)
(b)
— 
Balance at September 30, 2023$(92)$(134)$40 
The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at September 30, 2023$— $— $(2)
ExelonComEdPHI and Pepco
Nine Months Ended September 30, 2024Total Commodity
Derivatives		Life Insurance Contracts
Balance at December 31, 2023$(90)$(133)$41 
Total realized / unrealized gains (losses)
Included in net income(a)
1 — 2 
Included in regulatory assets/liabilities(32)(32)
(b)
— 
Purchases, sales, and settlements
Settlements(22)— (22)
Balance at September 30, 2024$(143)$(165)
(c)
$21 
The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities at September 30, 2024$2 $— $2 

ExelonComEdPHI and Pepco
Nine Months Ended September 30, 2023Total Commodity
Derivatives		Life Insurance Contracts
Balance at December 31, 2022$(44)$(84)$40 
Total realized / unrealized gains (losses)
Included in net income(a)
2 — — 
Included in regulatory assets/liabilities(50)(50)
(b)
— 
Balance at September 30, 2023$(92)$(134)$40 
The amount of total gains included in income attributed to the change in unrealized gain related to assets and liabilities at September 30, 2023$2 $— $— 
__________
(a)Classified in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income.
(b)Includes $31 million of decreases in fair value and an increase for realized gains due to settlements of $5 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended September 30, 2024. Includes $5 million of decreases in fair value and an increase for realized gains due to settlements of $4 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended September 30, 2023. Includes $60 million of decreases in fair value and an increase for realized gains due to settlements of $28 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the nine months ended September 30, 2024. Includes $73 million of decreases in fair value and an increase for realized gains due to settlements of $23 million recorded in Purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the nine months ended September 30, 2023.
(c)The balance of the current and noncurrent asset was effectively zero as of September 30, 2024. The balance consists of a current and noncurrent liability of $25 million and $140 million, respectively, as of September 30, 2024.
Commodity Derivatives (Exelon and ComEd)
The table below discloses the significant unobservable inputs to the forward curve used to value mark-to-market derivatives.
Type of tradeFair Value at September 30, 2024Fair Value at December 31, 2023Valuation
Technique		Unobservable
Input		2024 Range & Arithmetic Average2023 Range & Arithmetic Average
Commodity derivatives$(165)$(133)Discounted
Cash Flow
Forward power price(a)
$22.68-$55.35$36.45$30.27-$73.71$43.35
________
(a)An increase to the forward power price would increase the fair value.