Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Financial Instruments [Line Items]

Gain or loss on the hedged items and the offsetting loss or gain on the related interest rate swaps in interest expense

__________

• For the three and six months ended June 30, 2014, the loss on Generation swaps included $4 million and $8 million realized in earnings, respectively, with an immaterial amount excluded from hedge effectiveness testing. For the three and six months ended June 30, 2013, the loss on Generation swaps included $4 million and $8 million realized in earnings, respectively, with an immaterial amount excluded from hedge effectiveness testing.

Summary of the derivative fair value

		Generation										Other		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)	$	0	$	2	$	14	$	(18)	$	(2)	$	0	$	(2)
Mark-to-market derivative assets
	(noncurrent assets)		16		2		12		(10)		20		18		38
Total mark-to-market derivative
	assets	$	16	$	4	$	26	$	(28)	$	18	$	18	$	36
Mark-to-market derivative liabilities
	(current liabilities)	$	(1)	$	(4)	$	(15)	$	19	$	(1)	$	0	$	(1)
Mark-to-market derivative liabilities
	(noncurrent liabilities)		(19)		(2)		(11)		11		(21)		(6)		(27)
Total mark-to-market derivative
	liabilities	$	(20)	$	(6)	$	(26)	$	30	$	(22)	$	(6)	$	(28)
Total mark-to-market derivative
	net assets (liabilities)	$	(4)	$	(2)	$	0	$	2	$	(4)	$	12	$	8

• 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.
• Represents the netting of fair value balances with the same counterparty and any associated cash collateral.

		Generation										Other		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)	$	0	$	3	$	15	$	(19)	$	(1)	$	0	$	(1)
Mark-to-market derivative assets
	(noncurrent assets)		26		3		15		(13)		31		7		38
Total mark-to-market derivative
	assets	$	26	$	6	$	30	$	(32)	$	30	$	7	$	37
Mark-to-market derivative liabilities
	(current liabilities)	$	(1)	$	(1)	$	(18)	$	19	$	(1)	$	0	$	(1)
Mark-to-market derivative liabilities
	(noncurrent liabilities)		(10)		(1)		(13)		13		(11)		(4)		(15)
Total mark-to-market derivative
	liabilities	$	(11)	$	(2)	$	(31)	$	32	$	(12)	$	(4)	$	(16)
Total mark-to-market derivative
	net assets (liabilities)	$	15	$	4	$	(1)	$	0	$	18	$	3	$	21

• 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.
• Represents the netting of fair value balances with the same counterparty and any associated cash collateral.

		Three Months Ended June 30,
	Income Statement	2014		2013		2014		2013
	Location	Gain (Loss) on Swaps				Gain (Loss) on Borrowings
Generation	Interest expense(a)	$	(3)	$	(5)	$	2	$	2
Exelon	Interest expense		3		(6)		(3)		3
		Six Months Ended June 30,
	Income Statement	2014		2013		2014		2013
	Location	Gain (Loss) on Swaps				Gain (Loss) on Borrowings
Generation	Interest expense(a)	$	(8)	$	(9)	$	1	$	1
Exelon	Interest expense		5		(12)		(7)		4

		Generation								ComEd		Exelon
		Economic		Proprietary		Collateral and				Economic		Total
Derivatives		Hedges		Trading		Netting(a)		Subtotal(b)		Hedges(c)		Derivatives
Mark-to-market derivative assets
	(current assets)	$	3,422	$	925	$	(3,716)	$	631	$	0	$	631
Mark-to-market derivative assets
	(noncurrent assets)		1,394		149		(1,099)		444		0		444
Total mark-to-market derivative
	assets	$	4,816	$	1,074	$	(4,815)	$	1,075	$	0	$	1,075
Mark-to-market derivative liabilities
	(current liabilities)	$	(3,354)	$	(900)	$	4,040	$	(214)	$	(13)	$	(227)
Mark-to-market derivative liabilities
	(noncurrent liabilities)		(1,214)		(165)		1,265		(114)		(121)		(235)
Total mark-to-market derivative
	liabilities	$	(4,568)	$	(1,065)	$	5,305	$	(328)	$	(134)	$	(462)
Total mark-to-market derivative
	net assets (liabilities)	$	248	$	9	$	490	$	747	$	(134)	$	613

__________

(a)Exelon and Generation net all available amounts allowed under the derivative accounting 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 $(126) million and $(56) million, respectively, and current and noncurrent liabilities are shown net of collateral of $(198) million and $(110) million, respectively. The total cash collateral posted, net of cash collateral received and offset against mark-to-market assets and liabilities was $490 million at June 30, 2014.

(c)Includes current and noncurrent liabilities relating to floating-to-fixed energy swap contracts with unaffiliated suppliers.

		Generation								ComEd		Exelon
		Economic		Proprietary		Collateral and				Economic		Total
Description		Hedges		Trading		Netting(a)		Subtotal(b)		Hedges (c)		Derivatives
Mark-to-market derivative assets
	(current assets)	$	2,616	$	1,476	$	(3,364)	$	728	$	0	$	728
Mark-to-market derivative assets
	(noncurrent assets)		1,344		285		(1,060)		569		0		569
Total mark-to-market derivative
	assets	$	3,960	$	1,761	$	(4,424)	$	1,297	$	0	$	1,297
Mark-to-market derivative liabilities
	(current liabilities)	$	(2,023)	$	(1,410)	$	3,292	$	(141)	$	(17)	$	(158)
Mark-to-market derivative liabilities
	(noncurrent liabilities)		(804)		(293)		988		(109)		(176)		(285)
Total mark-to-market derivative
	liabilities	$	(2,827)	$	(1,703)	$	4,280	$	(250)	$	(193)	$	(443)
Total mark-to-market derivative
	net assets (liabilities)	$	1,133	$	58	$	(144)	$	1,047	$	(193)	$	854

__________

(a)Exelon and Generation net all available amounts allowed under the derivative accounting 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. These are not reflected in the table above.

(b)       Current and noncurrent assets are shown net of collateral of $84 million and $72 million, respectively, and current and noncurrent liabilities are shown net of collateral of $(12) million and $0 million, respectively. The total cash collateral received, net of cash collateral posted and offset against mark-to-market assets and liabilities was $144million at December 31, 2013.

(c)       Includes current and noncurrent liabilities relating to floating-to-fixed energy swap contracts with unaffiliated suppliers.

Other Derivatives - Gain (loss) and reclassification

• Prior to the merger, the five-year financial swap contract between Generation and ComEd was de-designated. As a result, all prospective changes in fair value were recorded to operating revenues and eliminated in consolidation.

Change in fair value and reclassification of derivative contracts

		Generation								Intercompany Eliminations		HoldCo		Exelon
				Purchased
		Operating		Power		Interest				Operating		Interest
Three Months Ended June 30, 2014		Revenues		and Fuel		Expense		Total		Revenues(a)		Expense		Total
Change in fair value of commodity positions		$	(124)	$	111	$	0	$	(13)	$	0	$	0	$	(13)
Reclassification to realized at settlement
	of commodity positions		45		(42)		0		3		0		0		3
Net commodity mark-to-market gains (losses)		$	(79)	$	69	$	0	$	(10)	$	0	$	0	$	(10)
Change in fair value of treasury positions		$	(3)	$	0	$	(1)	$	(4)	$	0	$	0	$	(4)
Reclassification to realized at settlement
	of treasury positions		(1)		0		0		(1)		0		0		(1)
Net treasury mark-to-market gains (losses)		$	(4)	$	0	$	(1)	$	(5)	$	0	$	0	$	(5)
	Net mark-to-market gains (losses)	$	(83)	$	69	$	(1)	$	(15)	$	0	$	0	$	(15)
		Generation								Intercompany Eliminations		HoldCo		Exelon
				Purchased
		Operating		Power		Interest				Operating		Interest
Six Months Ended June 30, 2014		Revenues		and Fuel		Expense		Total		Revenues(a)		Expense		Total
Change in fair value of commodity positions		$	(975)	$	282	$	0	$	(693)	$	0	$	0	$	(693)
Reclassification to realized at settlement
	of commodity positions		137		(183)		0		(46)		0		0		(46)
Net commodity mark-to-market gains (losses)		$	(838)	$	99	$	0	$	(739)	$	0	$	0	$	(739)
Change in fair value of treasury positions		$	(4)	$	0	$	(1)	$	(5)	$	0	$	0	$	(5)
Reclassification to realized at settlement
	of treasury positions		(1)		0		0		(1)		0		0		(1)
Net treasury mark-to-market gains (losses)		$	(5)	$	0	$	(1)	$	(6)	$	0	$	0	$	(6)
	Net mark-to-market gains (losses)	$	(843)	$	99	$	(1)	$	(745)	$	0	$	0	$	(745)
		Generation								Intercompany Eliminations		HoldCo		Exelon
				Purchased
		Operating		Power		Interest				Operating		Interest
Three Months Ended June 30, 2013		Revenues		and Fuel		Expense		Total		Revenues(a)		Expense		Total
Change in fair value of commodity positions		$	460	$	(77)	$	0	$	383	$	(13)	$	0	$	370
Reclassification to realized at settlement
	of commodity positions		44		1		0		45		3		0		48
Net commodity mark-to-market gains (losses)		$	504	$	(76)	$	0	$	428	$	(10)	$	0	$	418
Change in fair value of treasury positions		$	0	$	0	$	(2)	$	(2)	$	0	$	0	$	(2)
Reclassification to realized at settlement
	of treasury positions		0		0		0		0		0		0		0
Net treasury mark-to-market gains (losses)		$	0	$	0	$	(2)	$	(2)	$	0	$	0	$	(2)
	Net mark-to-market gains (losses)	$	504	$	(76)	$	(2)	$	426	$	(10)	$	0	$	416
		Generation								Intercompany Eliminations		HoldCo		Exelon
				Purchased
		Operating		Power		Interest				Operating		Interest
Six Months Ended June 30, 2013		Revenues		and Fuel		Expense		Total		Revenues(a)		Expense		Total
Change in fair value of commodity positions		$	(26)	$	69	$		$	43	$	(6)	$	0	$	37
Reclassification to realized at settlement
	of commodity positions		(56)		38				(18)		13		0		(5)
Net commodity mark-to-market gains (losses)		$	(82)	$	107	$	0	$	25	$	7	$	0	$	32
Change in fair value of treasury positions		$	0	$	0	$	(3)	$	(3)	$	0	$	0	$	(3)
Reclassification to realized at settlement
	of treasury positions		0		0		0		0		0		0		0
Net treasury mark-to-market gains (losses)		$	0	$	0	$	(3)	$	(3)	$	0	$	0	$	(3)
	Net mark-to-market gains (losses)	$	(82)	$	107	$	(3)	$	22	$	7	$	0	$	29

			Three Months Ended				Six Months Ended
		Location on Income	June 30,				June 30,
		Statement	2014		2013		2014		2013
Change in fair value of commodity positions		Operating Revenues	$	1	$	5	$	0	$	1
Reclassification to realized at settlement
	of commodity positions	Operating Revenues		(8)		(1)		(7)		5
Net commodity mark-to-market gains (losses)		Operating Revenues	$	(7)	$	4	$	(7)	$	6
Change in fair value of treasury positions		Operating Revenues	$	0	$	0	$	(1)	$	0
Reclassification to realized at settlement
	of treasury positions	Operating Revenues		1		(1)		1		(1)
Net treasury mark-to-market gains (losses)		Operating Revenues	$	1	$	(1)	$	0	$	(1)
Net mark-to-market gains (losses)		Operating Revenues	$	(6)	$	3	$	(7)	$	5

Information on Generation's credit exposure for all derivative instruments, normal purchase normal sales, and applicable payables and receivables, net of collateral and instruments that are subject to master netting agreements

	Total						Number of		Net Exposure of
	Exposure						Counterparties		Counterparties
	Before Credit		Credit		Net		Greater than 10%		Greater than 10%
Rating as of June 30, 2014	Collateral		Collateral(a)		Exposure		of Net Exposure		of Net Exposure
Investment grade	$	1,095	$	103	$	992		1	$	417
Non-investment grade		12		9		3		0		0
No external ratings
Internally rated - investment grade		286		2		284		1		189
Internally rated - non-investment
grade		21		4		17		0		0
Total	$	1,414	$	118	$	1,296		2	$	606

Net Credit Exposure by Type of Counterparty	As of June 30, 2014
Financial institutions		$	185
Investor-owned utilities, marketers, power producers			360
Energy cooperatives and municipalities			729
Other			22
Total		$	1,296

Credit-Risk Related Contingent Feature		June 30, 2014		December 31, 2013
Gross Fair Value of Derivative Contracts Containing this Feature(a)	$	(1,102)	$	(1,056)
Offsetting Fair Value of In-the-Money Contracts Under Master Netting Arrangements(b)		825		846
Net Fair Value of Derivative Contracts Containing This Feature(c)	$	(277)	$	(210)

• Amount represents the gross fair value of out-of-the-money derivative contracts containing credit-riskrelated contingent features ignoring the effects of master netting agreements.
• Amount represents the offsetting fair value of in-the-money derivative contracts under legallyenforceable 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.
• 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.