Property, Plant And Equipment

12 Months Ended

Dec. 31, 2011

Property, Plant And Equipment

(9) PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is comprised of the following:

	Original Cost		Accumulated Depreciation		Net Book Value
	(millions of dollars)
At December 31, 2011
Generation	$	108	$	82	$	26
Distribution		7,832		2,848		4,984
Transmission		2,462		834		1,628
Gas		429		133		296
Construction work in progress		742		—		742
Non-operating and other property		1,282		738		544
Total	$	12,855	$	4,635	$	8,220
At December 31, 2010
Generation	$	105	$	72	$	33
Distribution		7,567		2,749		4,818
Transmission		2,307		793		1,514
Gas		413		125		288
Construction work in progress		553		—		553
Non-operating and other property		1,175		708		467
Total	$	12,120	$	4,447	$	7,673

The non-operating and other property amounts include balances for general plant, intangible plant, distribution plant and transmission plant held for future use as well as other property held by non-utility subsidiaries. Utility plant is generally subject to a first mortgage lien.

Pepco Holdings' utility subsidiaries use separate depreciation rates for each electric plant account. The rates vary from jurisdiction to jurisdiction.

Jointly Owned Plant

PHI's consolidated balance sheets include its proportionate share of assets and liabilities related to jointly owned plant. At December 31, 2011 and 2010, PHI's subsidiaries had a net book value ownership interest of $13 million and $14 million, respectively, in transmission and other facilities in which various parties also have ownership interests. PHI's share of the operating and maintenance expenses of the jointly-owned plant is included in the corresponding expenses in the consolidated statements of income. PHI is responsible for providing its share of the financing for the above jointly-owned facilities.

Deactivation of Pepco Energy Services' Generating Facilities

Pepco Energy Services owns and operates two oil-fired generating facilities. The facilities are located in Washington, D.C. and have a generating capacity of approximately 790 megawatts. Pepco Energy Services sells the output of these facilities into the wholesale market administered by PJM. In February 2007, Pepco Energy Services provided notice to PJM of its intention to deactivate these facilities by the end of May 2012. PJM has informed Pepco Energy Services that these facilities will not be needed for reliability after May 2012; therefore, decommissioning plans are currently underway and on-schedule. During the years ended December 31, 2011 and 2010, PHI has recorded decommissioning costs of $2 million and $4 million, respectively, related to these generating facilities.

Potomac Electric Power Co [Member]

Property, Plant And Equipment

(8) PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is comprised of the following:

	Original Cost		Accumulated Depreciation		Net Book Value
	(millions of dollars)
At December 31, 2011
Distribution	$	4,661	$	1,960	$	2,701
Transmission		986		398		588
Construction work in progress		438		—		438
Non-operating and other property		493		346		147
Total	$	6,578	$	2,704	$	3,874
At December 31, 2010
Distribution	$	4,541	$	1,885	$	2,656
Transmission		884		379		505
Construction work in progress		300		—		300
Non-operating and other property		460		345		115
Total	$	6,185	$	2,609	$	3,576

The non-operating and other property amounts include balances for general plant, distribution plant and transmission plant held for future use, intangible plant and non-utility property. Utility plant is generally subject to a first mortgage lien.

Delmarva Power & Light Co/De [Member]

Property, Plant And Equipment

(9) PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is comprised of the following:

	Original Cost		Accumulated Depreciation		Net Book Value
	(millions of dollars)
At December 31, 2011
Distribution	$	1,580	$	435	$	1,145
Transmission		788		230		558
Gas		429		133		296
Construction work in progress		151		—		151
Non-operating and other property		240		128		112
Total	$	3,188	$	926	$	2,262
At December 31, 2010
Distribution	$	1,515	$	431	$	1,084
Transmission		740		219		521
Gas		413		125		288
Construction work in progress		124		—		124
Non-operating and other property		208		126		82
Total	$	3,000	$	901	$	2,099

The non-operating and other property amounts include balances for general plant, plant held for future use, intangible plant and non-utility property. Utility plant is generally subject to a first mortgage lien.

Atlantic City Electric Co [Member]

Property, Plant And Equipment

(8) PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is comprised of the following:

	Original Cost		Accumulated Depreciation		Net  Book Value
	(millions of dollars)
At December 31, 2011
Generation	$	10	$	9	$	1
Distribution		1,591		453		1,138
Transmission		688		206		482
Construction work in progress		87		—		87
Non-operating and other property		172		98		74
Total	$	2,548	$	766	$	1,782
At December 31, 2010
Generation	$	10	$	9	$	1
Distribution		1,511		433		1,078
Transmission		683		195		488
Construction work in progress		72		—		72
Non-operating and other property		167		92		75
Total	$	2,443	$	729	$	1,714

The non-operating and other property amounts include balances for general plant, plant held for future use, intangible plant and non-utility property. Utility plant is generally subject to a first mortgage lien.

Jointly Owned Plant

ACE's consolidated balance sheets include its proportionate share of assets and liabilities related to jointly owned plant. At December 31, 2011 and 2010, ACE's subsidiaries had a net book value ownership interest of $8 million and $9 million, respectively, in transmission and other facilities in which various parties also have ownership interests. ACE's share of the operating and maintenance expenses of the jointly-owned plant is included in the corresponding expenses in the consolidated statements of income. ACE is responsible for providing its share of the financing for the above jointly-owned facilities.