(17) RESTRUCTURING CHARGE

With the ongoing wind down of the retail energy supply business of Pepco Energy Services and the disposition of Conectiv Energy, PHI repositioned itself as a regulated transmission and distribution company during 2010. In connection with this repositioning, PHI completed a comprehensive organizational review in 2010 that identified opportunities to streamline the organization and to achieve certain reductions in corporate overhead costs that are allocated to its operating segments, which resulted in the adoption of a restructuring plan. PHI began implementation of the plan during 2010, identifying 164 employee positions that were eliminated. The plan also includes additional cost reduction opportunities that are being implemented through process improvements and operational efficiencies.

In connection with the restructuring plan, PHI recorded a pre-tax restructuring charge related to severance, pension, and health and welfare benefits for employee terminations of $30 million in 2010, of which $14 million was recorded in the three and nine months ended September 30, 2010. The severance, pension, and health and welfare benefits were estimated based on the years of service and compensation levels of the employees associated with the 164 eliminated positions. The restructuring charge was allocated to PHI's operating segments and was reflected as a separate line item in the Consolidated Statement of Income for the year ended December 31, 2010.

A reconciliation of PHI's accrued restructuring charges for the three and nine months ended September 30, 2011 is as follows:


	Three Months Ended September 30, 2011
	*(millions of dollars)*
	Power Delivery			Corporate and Other		PHI Consolidated
Beginning balance as of July 1, 2011	$	6		$	—	$	6
Restructuring charge		—			—		—
Cash payments		(1	)		—		(1	)

Ending balance as of September 30, 2011	$	5		$	—	$	5


	Nine Months Ended September 30, 2011
	*(millions of dollars)*
	Power Delivery			Corporate and Other			PHI Consolidated
Beginning balance as of January 1, 2011	$	28		$	1		$	29
Restructuring charge		—			—			—
Cash payments		(23	)		(1	)		(24	)

Ending balance as of September 30, 2011	$	5		$	—		$	5

Restructuring Charge

(12) RESTRUCTURING CHARGE

With the ongoing wind down of the retail energy supply business of Pepco Energy Services and the disposition of Conectiv Energy Holding Company, PHI repositioned itself as a regulated transmission and distribution company during 2010. In connection with this repositioning, PHI completed a comprehensive organizational review in 2010 that identified opportunities to streamline the organization and to achieve certain reductions in corporate overhead costs that are allocated to its operating segments, which resulted in the adoption of a restructuring plan. PHI began implementation of the plan during 2010, identifying 164 employee positions that were eliminated. The plan also includes additional cost reduction opportunities that are being implemented through process improvements and operational efficiencies.

In connection with the restructuring plan, Pepco recorded a pre-tax restructuring charge related to its allocation of severance, pension, and health and welfare benefits for the termination of corporate services employees at PHI of $15 million in 2010, of which $6 million was recorded in the three and nine months ended September 30, 2010. The severance, pension, and health and welfare benefits were estimated based on the years of service and compensation levels of the employees associated with the 164 eliminated positions at PHI. The restructuring charge was reflected as a separate line item in the Statement of Income for the year ended December 31, 2010.

A reconciliation of Pepco's accrued restructuring charges for the three and nine months ended September 30, 2011 is as follows:


	Three Months Ended September 30, 2011
	*(millions of dollars)*
Beginning balance as of July 1, 2011	$	3
Restructuring charge		—
Cash payments		—

Ending balance as of September 30, 2011	$	3


	Nine Months Ended September 30, 2011
	*(millions of dollars)*
Beginning balance as of January 1, 2011	$	15
Restructuring charge		—
Cash payments		(12	)

Ending balance as of September 30, 2011	$	3

Restructuring Charge

(14) RESTRUCTURING CHARGE

With the ongoing wind down of the retail energy supply business of Pepco Energy Services and the disposition of Conectiv Energy Holding Company, PHI repositioned itself as a regulated transmission and distribution company during 2010. In connection with this repositioning, PHI completed a comprehensive organizational review in 2010 that identified opportunities to streamline the organization and to achieve certain reductions in corporate overhead costs that are allocated to its operating segments, which resulted in the adoption of a restructuring plan. PHI began implementation of the plan during 2010, identifying 164 employee positions that were eliminated. The plan also includes additional cost reduction opportunities that are being implemented through process improvements and operational efficiencies.

In connection with the restructuring plan, DPL recorded a pre-tax restructuring charge related to its allocation of severance, pension, and health and welfare benefits for the termination of corporate services employees at PHI of $8 million in 2010, of which $4 million was recorded in the three and nine months ended September 30, 2010. The severance, pension, and health and welfare benefits were estimated based on the years of service and compensation levels of the employees associated with the 164 eliminated positions at PHI. The restructuring charge was reflected as a separate line item in the Statement of Income for the year ended December 31, 2010.

A reconciliation of DPL's accrued restructuring charges for the three and nine months ended September 30, 2011 is as follows:


	Three Months Ended September 30, 2011
	*(millions of dollars)*
Beginning balance as of July 1, 2011	$	2
Restructuring charge		—
Cash payments		(1	)

Ending balance as of September 30, 2011	$	1


	Nine Months Ended September 30, 2011
	*(millions of dollars)*
Beginning balance as of January 1, 2011	$	7
Restructuring charge		—
Cash payments		(6	)

Ending balance as of September 30, 2011	$	1

Restructuring Charge

(13) RESTRUCTURING CHARGE

With the ongoing wind down of the retail energy supply business of Pepco Energy Services, Inc. and its subsidiaries (collectively, Pepco Energy Services) and the disposition of Conectiv Energy Holding Company, PHI repositioned itself as a regulated transmission and distribution company during 2010. In connection with this repositioning, PHI completed a comprehensive organizational review in 2010 that identified opportunities to streamline the organization and to achieve certain reductions in corporate overhead costs that are allocated to its operating segments, which resulted in the adoption of a restructuring plan. PHI began implementation of the plan during 2010, identifying 164 employee positions that were eliminated. The plan also includes additional cost reduction opportunities that are being implemented through process improvements and operational efficiencies.

In connection with the restructuring plan, ACE recorded a pre-tax restructuring charge related to its allocation of severance, pension, and health and welfare benefits for the termination of corporate services employees at PHI of $6 million in 2010, of which $3 million was recorded in the three and nine months ended September 30, 2010. The severance, pension, and health and welfare benefits were estimated based on the years of service and compensation levels of the employees associated with the 164 eliminated positions at PHI. The restructuring charge was reflected as a separate line item in the Consolidated Statement of Income for the year ended December 31, 2010.

A reconciliation of ACE's accrued restructuring charges for the three and nine months ended September 30, 2011 is as follows:


	Three Months Ended September 30, 2011
	*(millions of dollars)*
Beginning balance as of July 1, 2011	$	1
Restructuring charge		—
Cash payments		—

Ending balance as of September 30, 2011	$	1


	Nine Months Ended September 30, 2011
	*(millions of dollars)*
Beginning balance as of January 1, 2011	$	6
Restructuring charge		—
Cash payments		(5	)

Ending balance as of September 30, 2011	$	1