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Fair Value of Financial Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
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 December 31, 2021 and 2020. The Registrants have no financial liabilities classified as Level 1.
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.

December 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$38,697 $40,282 $3,310 $43,592 $36,912 $40,688 $3,064 $43,752 
ComEd9,773 11,305 — 11,305 8,983 11,117 — 11,117 
PECO4,197 4,740 50 4,790 3,753 4,553 50 4,603 
BGE3,961 4,406 — 4,406 3,664 4,366 — 4,366 
PHI7,547 5,970 2,167 8,137 7,006 6,099 1,806 7,905 
Pepco3,445 3,201 975 4,176 3,165 3,336 748 4,084 
DPL1,810 1,426 552 1,978 1,677 1,484 455 1,939 
ACE1,582 1,091 641 1,732 1,413 1,018 602 1,620 
Long-Term Debt to Financing Trusts
Exelon$390 $— $470 $470 $390 $— $467 $467 
ComEd205 — 248 248 205 — 246 246 
PECO184 — 222 222 184 — 221 221 
SNF Obligation
Exelon$1,210 $1,060 $— $1,060 $1,208 $909 $— $909 
__________
(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 17 — Debt and Credit Agreements for unamortized debt issuance costs, unamortized debt discount and premium, net, and purchase accounting fair value adjustments and Note 11 — Leases for finance lease liabilities.
Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis 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 December 31, 2021 and 2020:
Exelon
As of December 31, 2021As of December 31, 2020
Level 1Level 2Level 3Not subject to levelingTotalLevel 1Level 2Level 3Not subject to levelingTotal
Assets
Cash equivalents(a)
$643 $— $— $— $643 $686 $— $— $— $686 
NDT fund investments
Cash equivalents(b)
465 116 — — 581 210 95 — — 305 
Equities4,564 1,805 — 1,645 8,014 3,886 2,077 — 1,562 7,525 
Fixed income
Corporate debt(c)
— 1,145 286 — 1,431 — 1,485 285 — 1,770 
U.S. Treasury and agencies2,193 30 — — 2,223 1,871 126 — — 1,997 
Foreign governments— 60 — — 60 — 56 — — 56 
State and municipal debt — 26 — — 26 — 101 — — 101 
Other29 23 — 1,449 1,501 — 41 — 961 1,002 
Fixed income subtotal2,222 1,284 286 1,449 5,241 1,871 1,809 285 961 4,926 
Private credit— — 178 624 802 — — 212 629 841 
Private equity— — — 673 673 — — — 504 504 
Real estate — — — 864 864 — — — 679 679 
NDT fund investments subtotal(d)(e)
7,251 3,205 464 5,255 16,175 5,967 3,981 497 4,335 14,780 
Rabbi trust investments
Cash equivalents63 — — — 63 60 — — — 60 
Mutual funds105 — — — 105 91 — — — 91 
Fixed income— 10 — — 10 — 11 — — 11 
Life insurance contracts— 99 38 — 137 — 87 34 — 121 
Rabbi trust investments subtotal168 109 38 — 315 151 98 34 — 283 
Investments in equities(f)
43 — — — 43 195 — — — 195 
Commodity derivative assets
Economic hedges3,017 7,223 3,899 — 14,139 745 1,914 1,599 — 4,258 
Proprietary trading— 19 8 — 27 — 17 27 — 44 
Effect of netting and allocation of collateral(g)(h)
(2,108)(6,177)(2,769)— (11,054)(607)(1,597)(905)— (3,109)
Commodity derivative assets subtotal909 1,065 1,138 — 3,112 138 334 721 — 1,193 
DPP consideration— 365 — — 365 — 639 — — 639 
Total assets9,014 4,744 1,640 5,255 20,653 7,137 5,052 1,252 4,335 17,776 
Liabilities
Commodity derivative liabilities
Economic hedges(2,201)(6,870)(4,184)— (13,255)(682)(1,928)(1,655)— (4,265)
Proprietary trading— (18)(2)— (20)— (21)(4)— (25)
Effect of netting and allocation of collateral(g)(h)
2,189 6,642 2,735 — 11,566 540 1,918 1,067 — 3,525 
Commodity derivative liabilities subtotal(12)(246)(1,451)— (1,709)(142)(31)(592)— (765)
Deferred compensation obligation— (154)— — (154)— (145)— — (145)
Total liabilities(12)(400)(1,451)— (1,863)(142)(176)(592)— (910)
Total net assets$9,002 $4,344 $189 $5,255 $18,790 $6,995 $4,876 $660 $4,335 $16,866 
__________
(a)Excludes cash of $881 million and $409 million as of December 31, 2021 and 2020, respectively, and restricted cash of $95 million and $59 million as of December 31, 2021 and 2020, respectively, and includes long-term restricted cash of $44 million and $53 million as of December 31, 2021 and 2020, respectively, which is reported in Other deferred debits in the Consolidated Balance Sheets.
(b)Includes $116 million of cash received from outstanding repurchase agreements as of both December 31, 2021 and 2020, 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 $(55) million and $(62) million as of December 31, 2021 and 2020, respectively, held in an investment vehicle primarily to hedge the equity option component of its convertible debt.
(d)Includes net derivative liabilities of $1 million and net derivative assets of $2 million, which have total notional amounts of $687 million and $1,043 million as of December 31, 2021 and 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's exposure to credit or market loss.
(e)Excludes net liabilities of $111 million and $181 million as of December 31, 2021 and 2020, respectively, which include certain derivative assets that have notional amounts of $182 million and $104 million as of December 31, 2021 and 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 which were previously designated as equity investments without readily determinable fair values but are now publicly traded and therefore have readily determinable fair values. The first investment became publicly traded in the fourth quarter of 2020. The fair value of these investments is recorded in Other current assets in Exelon's Consolidated Balance Sheets based on the quoted market prices of the stocks as of the respective balance sheet date. Unrealized (losses)/gains of $(160) million and $186 million were recorded in Other, net in Exelon's Consolidated Statement of Operations and Comprehensive Income for the years ended December 31, 2021 and 2020, respectively.
(g)Collateral posted/(received) from counterparties, net of collateral paid to counterparties, totaled $81 million, $465 million, and $(34) million allocated to Level 1, Level 2, and Level 3 mark-to-market derivatives, respectively, as of December 31, 2021. Collateral posted/(received) 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)Includes $897 million held and $209 million posted of variation margin with the exchanges as of December 31, 2021 and 2020, respectively.

As of December 31, 2021, Exelon has outstanding commitments to invest in private credit, private equity, and real estate investments of approximately $306 million, $171 million, and $459 million, respectively. These commitments will be funded by the existing NDT funds.
Exelon held investments without readily determinable fair values with carrying amounts of $44 million and $73 million as of December 31, 2021 and 2020, respectively. Changes in fair value, cumulative adjustments, and impairments were not material for the years ended December 31, 2021 and 2020.
ComEd, PECO, and BGE
ComEdPECOBGE
As of December 31, 2021Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$237 $— $— $237 $9 $— $— $9 $— $— $— $— 
Rabbi trust investments
Mutual funds— — — — 11 — — 11 14 — — 14 
Life insurance contracts— — — — — 16 — 16 — — — — 
Rabbi trust investments subtotal— — — — 11 16 — 27 14 — — 14 
Total assets237 — — 237 20 16 — 36 14 — — 14 
Liabilities
Mark-to-market derivative liabilities(b)
— — (219)(219)— — — — — — — — 
Deferred compensation obligation— (10)— (10)— (9)— (9)— (7)— (7)
Total liabilities— (10)(219)(229)— (9)— (9)— (7)— (7)
Total net assets (liabilities)$237 $(10)$(219)$8 $20 $7 $— $27 $14 $(7)$— $7 
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
Mark-to-market derivative liabilities(b)
— — (301)(301)— — — — — — — — 
Deferred compensation obligation— (8)— (8)— (9)— (9)— (5)— (5)
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 $105 million and $83 million as of December 31, 2021 and 2020, respectively, and restricted cash of $42 million and $37 million as of December 31, 2021 and 2020, respectively, and includes long-term restricted cash of $43 million as of both December 31, 2021 and 2020, which is reported in Other deferred debits in the Consolidated Balance Sheets. PECO excludes cash of $35 million and $18 million as of December 31, 2021 and 2020, respectively. BGE excludes cash of $51 million and $24 million as of December 31, 2021 and 2020, respectively, and restricted cash of $4 million and $1 million as of December 31, 2021 and 2020, respectively.
(b)The Level 3 balance consists of the current and noncurrent liability of $18 million and $201 million, respectively, as of December 31, 2021 and $33 million and $268 million, respectively, as of December 31, 2020 related to floating-to-fixed energy swap contracts with unaffiliated suppliers.
PHI, Pepco, DPL, and ACE
As of December 31, 2021As of December 31, 2020
PHILevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$110 $— $— $110 $86 $— $— $86 
Rabbi trust investments
Cash equivalents59 — — 59 55 — — 55 
Mutual funds14 — — 14 14 — — 14 
Fixed income— 10 — 10 — 11 — 11 
Life insurance contracts— 27 35 62 — 26 34 60 
Rabbi trust investments subtotal73 37 35 145 69 37 34 140 
Total assets183 37 35 255 155 37 34 226 
Liabilities
Deferred compensation obligation— (18)— (18)— (17)— (17)
Total liabilities— (18)— (18)— (17)— (17)
Total net assets$183 $19 $35 $237 $155 $20 $34 $209 
PepcoDPLACE
As of December 31, 2021Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$31 $— $— $31 $43 $— $— $43 $— $— $— $— 
Rabbi trust investments
Cash equivalents58 — — 58 — — — — — — — — 
Life insurance contracts— 27 35 62 — — — — — — — — 
Rabbi trust investments subtotal58 27 35 120 — — — — — — — — 
Total assets89 27 35 151 43 — — 43 — — — — 
Liabilities
Deferred compensation obligation— (2)— (2)— — — — — — — — 
Total liabilities— (2)— (2)— — — — — — — — 
Total net assets$89 $25 $35 $149 $43 $— $— $43 $— $— $— $— 
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 equivalents53 — — 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 $100 million and $74 million as of December 31, 2021 and 2020, respectively, and restricted cash of $3 million and none as of December 31, 2021 and 2020, respectively, and includes long-term restricted cash of none and $10 million as of December 31, 2021 and 2020, respectively, which is reported in Other deferred debits in the Consolidated Balance Sheets. Pepco excludes cash of $34 million and $30 million as of December 31, 2021 and 2020, respectively, and restricted cash of $3 million and none as of December 31, 2021 and 2020, respectively. DPL excludes cash of $28 million and $15 million as of December 31, 2021 and 2020, respectively. ACE excludes cash of $29 million and $17 million as of December 31, 2021 and 2020, respectively, and includes long-term restricted cash of none and $10 million as of December 31, 2021 and 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
The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis during the years ended December 31, 2021 and 2020:
ExelonComEdPHI and Pepco
For the year ended December 31, 2021NDT Fund InvestmentsMark-to-Market DerivativesLife Insurance ContractsTotalMark-to-Market
Derivatives		Life Insurance Contracts
Balance as of January 1, 2021$497 $129 $34 $660 $(301)$34 
Total realized / unrealized gains (losses)
Included in net income5 (812)
(a)
3 (804)— 3 
Included in regulatory assets/liabilities19 82 — 101 82 
(b)
— 
Change in collateral— (196)— (196)— — 
Purchases, sales, and settlements
Purchases4 162 — 166 — — 
Sales— (10)— (10)— — 
Settlements(61)— 


(2)(63)— (2)
Transfers into Level 3— 19 
(c)
3 22 — — 
Transfers out of Level 3— 313 
(c)
— 313 — — 
Balance as of December 31, 2021$464 $(313)$38 $189 $(219)$35 
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of December 31, 2021$5 $(1,222)$3 (1,214)$— $3 
ExelonComEdPHI and Pepco
For the year ended December 31, 2020NDT Fund InvestmentsMark-to-Market DerivativesLife Insurance ContractsTotalMark-to-Market
Derivatives		Life Insurance Contracts
Balance as of January 1, 2020$511 $516 $41 $1,068 $(301)$41 
Total realized / unrealized gains (losses)
Included in net income2 (414)
(a)
3 (409)— 3 
Included in regulatory assets/liabilities21 — — 21 — 
(b)
— 
Change in collateral— (53)— (53)— — 
Purchases, sales, and settlements
Purchases8 143 — 151 — — 
Sales— (27)— (27)— — 
Settlements(45)— 


(10)(55)— (10)
Transfers into Level 3— (12)
(c)
— (12)— — 
Transfers out of Level 3— (24)
(c)
— (24)— — 
Balance as of December 31, 2020$497 $129 $34 $660 $(301)$34 
The amount of total gains included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of December 31, 2020$2 $6 $3 $11 $— $3 
__________
(a)Includes an addition of $410 million for realized losses and a reduction of $420 million for realized gains due to the settlement of derivative contracts for the years ended December 31, 2021 and 2020, respectively.
(b)Includes $62 million of increases in fair value and an increase for realized losses due to settlements of $20 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the year ended December 31, 2021. Includes $33 million of decreases in fair value and an increase for realized losses due to settlements of $33 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the year ended December 31, 2020.
(c)Transfers into and out of Level 3 generally occur when the contract tenor becomes less and more observable, respectively, primarily due to changes in market liquidity or assumptions for certain commodity contracts.
Total Realized and Unrealized Gains (Losses) Included in Income for Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present the income statement classification of the total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis during the years ended December 31, 2021 and 2020:
ExelonPHI and Pepco
Operating
Revenues		Purchased
Power and
Fuel		Operating and MaintenanceOther, netOperating and
Maintenance
Total (losses) gains included in net income for the year ended December 31, 2021$(1,343)$531 $3 $5 $3 
Total unrealized (losses) gains for the year ended December 31, 2021(1,577)355 3 5 3 
ExelonPHI and Pepco
Operating
Revenues		Purchased
Power and
Fuel		Operating and MaintenanceOther, netOperating and
Maintenance
Total (losses) gains included in net income for the year ended December 31, 2020$(404)$(10)$3 $2 $3 
Total unrealized (losses) gains for the year ended December 31, 2020(31)37 3 2 3 
Fair Value Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis, Valuation Technique
The following table presents the significant inputs to the forward curve used to value these positions:
Type of tradeFair Value as of December 31, 2021Fair Value as of December 31, 2020Valuation
Technique		Unobservable
Input		2021 Range & Arithmetic Average2020 Range & Arithmetic Average
Mark-to-market derivatives—Economic hedges (Exelon)(a)(b)
$(66)$245 Discounted Cash FlowForward power
price		$8.86-$481$55$2.25-$163$30
Forward gas
price		$1.69-$17$3.50$1.57-$7.88$2.59
Option 
Model		Volatility
percentage		24%-284%56%11%-237%32%
Mark-to-market derivatives (Exelon and ComEd)$(219)$(301)Discounted Cash Flow
Forward heat rate(c)
9x-10x9.13x8x-9x8.85x
Marketability
reserve		3%-7%4.77%3%-8%4.93%
Renewable
factor		92%-120%97%91%-123%99%
__________
(a)These positions relate to Generation and 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 (received)/posted on level three positions of $(34) million and $162 million as of December 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.