Goodwill

3 Months Ended

Mar. 31, 2012

Goodwill

(6) GOODWILL

PHI's goodwill balance of $1.4 billion was unchanged during the three months ended March 31, 2012. Substantially all of PHI's goodwill balance was generated by Pepco's acquisition of Conectiv in 2002 and is allocated entirely to the Power Delivery reporting unit based on the aggregation of its regulated public utility company components for purposes of assessing impairment under FASB guidance on goodwill and other intangibles (ASC 350).

PHI's annual impairment test as of November 1, 2011 indicated that goodwill was not impaired. For the three months ended March 31, 2012, PHI concluded that there were no events requiring it to perform an interim goodwill impairment test. PHI will perform its next annual impairment test as of November 1, 2012.

Delmarva Power & Light Co/De [Member]

Goodwill

(6) GOODWILL

DPL's goodwill balance of $8 million was unchanged during the three months ended March 31, 2012. All of DPL's goodwill was generated by its acquisition of Conowingo Power Company in 1995.

DPL's annual impairment test as of November 1, 2011 indicated that goodwill was not impaired. For the three months ended March 31, 2012, DPL concluded that there were no events requiring it to perform an interim goodwill impairment test. DPL will perform its next annual impairment test as of November 1, 2012.