Segment Information

3 Months Ended

Mar. 31, 2015

Segment Information

(5) SEGMENT INFORMATION

Pepco Holdings’ management has identified its operating segments at March 31, 2015 as Power Delivery and Pepco Energy Services. In the tables below, the Corporate and Other column is included to reconcile the segment data with consolidated data and includes the remaining operations of the former Other Non-Regulated segment, unallocated Pepco Holdings’ (parent company) capital costs, such as financing costs, and inter-company eliminations.

Segment financial information for the three months ended March 31, 2015 and 2014 is as follows:

	Three Months Ended March 31, 2015
	Power Delivery		Pepco Energy Services			Corporate and Other (a)			PHI Consolidated
	(millions of dollars)
Operating Revenue	$	1,313	$	60		$	(2	)	$	1,371
Operating Expenses (b)		1,167		61			1			1,229
Operating Income (Loss)		146		(1	)		(3	)		142
Interest Expense		58		—			10			68
Other Income		9		—			—			9
Income Tax Expense (Benefit)		35		(5	)		—			30
Net Income (Loss)		62		4			(13	)		53
Total Assets		14,082		237			1,708			16,027
Construction Expenditures	$	241	$	—		$	5		$	246

(a) Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(2) million for Operating Revenue, $(2) million for Operating Expenses and $(1) million for Interest Expense.

(b) Includes depreciation and amortization expense of $159 million, consisting of $147 million for Power Delivery, $1 million for Pepco Energy Services and $11 million for Corporate and Other.

	Three Months Ended March 31, 2014
	Power Delivery		Pepco Energy Services		Corporate and Other (a)			PHI Consolidated
	(millions of dollars)
Operating Revenue	$	1,272	$	60	$	(2	)	$	1,330
Operating Expenses (b)		1,103		60		(6	)		1,157
Operating Income		169		—		4			173
Interest Expense		55		—		10			65
Other Income		12		—		1			13
Income Tax Expense (Benefit)		47		—		(1	)		46
Net Income (Loss)		79		—		(4	)		75
Total Assets		13,438		287		1,279			15,004
Construction Expenditures	$	264	$	—	$	18		$	282

(a) Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(2) million for Operating Revenue, $(1) million for Operating Expenses and $(1) million for Interest Expense.

(b) Includes depreciation and amortization expense of $133 million, consisting of $124 million for Power Delivery, $2 million for Pepco Energy Services and $7 million for Corporate and Other.

Potomac Electric Power Co [Member]

Segment Information

(5) SEGMENT INFORMATION

Pepco operates its business as one regulated utility segment, which includes all of its services as described above.

Delmarva Power & Light Co/De [Member]

Segment Information

(5) SEGMENT INFORMATION

DPL operates its business as one regulated utility segment, which includes all of its services as described above.

Atlantic City Electric Co [Member]

Segment Information

(5) SEGMENT INFORMATION

ACE operates its business as one regulated utility segment, which includes all of its services as described above.