Derivative Instruments And Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value of Derivative Instruments by Balance Sheet Location

	As of September 30, 2012
Balance Sheet Caption	Derivatives Designated as Hedging Instruments (a)			Other Derivative Instruments			Gross Derivative Instruments			Effects of Cash Collateral and Netting			Net Derivative Instruments
	(millions of dollars)
Derivative assets (current assets)	$	—		$	3		$	3		$	(1	)	$	2
Derivative assets (non-current assets)		—			8			8			—			8
Total Derivative assets		—			11			11			(1	)		10
Derivative liabilities (current liabilities)		(16	)		(21	)		(37	)		24			(13	)
Derivative liabilities (non-current liabilities)		(2	)		(11	)		(13	)		3			(10	)
Total Derivative liabilities		(18	)		(32	)		(50	)		27			(23	)
Net Derivative (liability) asset	$	(18	)	$	(21	)	$	(39	)	$	26		$	(13	)

(a) Amounts included in Derivatives Designated as Hedging Instruments primarily consist of derivatives that were designated as cash flow hedges prior to Pepco Energy Services’ election to discontinue cash flow hedge accounting for these derivatives.

	As of December 31, 2011
Balance Sheet Caption	Derivatives Designated as Hedging Instruments (a)			Other Derivative Instruments			Gross Derivative Instruments			Effects of Cash Collateral and Netting			Net Derivative Instruments
	(millions of dollars)
Derivative assets (current assets)	$	17		$	6		$	23		$	(18	)	$	5
Derivative assets (non-current assets)		—			1			1			(1	)		—
Total Derivative assets		17			7			24			(19	)		5
Derivative liabilities (current liabilities)		(55	)		(48	)		(103	)		77			(26	)
Derivative liabilities (non-current liabilities)		(11	)		(10	)		(21	)		15			(6	)
Total Derivative liabilities		(66	)		(58	)		(124	)		92			(32	)
Net Derivative (liability) asset	$	(49	)	$	(51	)	$	(100	)	$	73		$	(27	)

(a) Amounts included in Derivatives Designated as Hedging Instruments primarily consist of derivatives that were designated as cash flow hedges prior to Pepco Energy Services’ election to discontinue cash flow hedge accounting for these derivatives.

Schedule of Cash Collateral Offset Against Derivative Positions

	September 30, 2012			December 31, 2011
	(millions of dollars)
Cash collateral pledged to counterparties with the right to reclaim (a)	$	27		$	73
Cash collateral received from counterparties with the obligation to return		(1	)		—

(a) Includes cash deposits on commodity brokerage accounts

Activity of Energy Commodity Contracts Designated as Cash Flow Hedges

	Three Months  Ended September 30,				Nine Months  Ended September 30,
	2012		2011		2012		2011
	(millions of dollars)
Amount of net pre-tax gain arising during the period included in accumulated other comprehensive loss	$	—	$	—	$	—	$	2
Amount of net pre-tax loss reclassified into income:
Effective portion:
Fuel and purchased energy expense		6		15		31		61
Ineffective portion: (a)
Revenue		—		1		—		1
Total net pre-tax loss reclassified into income		6		16		31		62
Net pre-tax gain on commodity derivatives included in accumulated other comprehensive loss	$	6	$	16	$	31	$	64

(a) For the three and nine months ended September 30, 2011, $1 million was reclassified from AOCL to income because the forecasted hedged transactions were deemed probable not to occur.

Outstanding Energy Commodity Contracts Employed as Cash Flow Hedges

	Quantities
Commodity	September 30, 2012		December 31, 2011
Forecasted Purchases Hedges
Electricity (MWh)		—		614,560
Forecasted Sales Hedges
Electricity (MWh)		—		614,560

Schedule of Unrealized Derivative Losses Included in Regulatory Assets and Realized Losses Recognized in Statement of Financial Performance

	Three Months  Ended September 30,						Nine Months  Ended September 30,
	2012			2011			2012			2011
	(millions of dollars)
Net unrealized gain (loss) arising during the period	$	2		$	(4	)	$	(3	)	$	(6	)
Net realized loss recognized during the period		(2	)		(3	)		(13	)		(14	)

Cash Flow Hedges Included in Accumulated Other Comprehensive Loss

	As of September 30, 2012
Contracts	Accumulated Other Comprehensive Loss After-tax		Portion Expected to be Reclassified to Income during the Next 12 Months		Maximum Term
	(millions of dollars)
Energy commodity (a)	$	11	$	10		20 months
Interest rate		10		1		239 months
Total	$	21	$	11

(a) The unrealized derivative losses recorded in AOCL relate to forecasted physical natural gas and electricity purchases which are used to supply retail natural gas and electricity contracts that are in gain positions and subject to accrual accounting. Under accrual accounting, no asset is recorded on PHI’s consolidated balance sheet and the purchase cost is not recognized until the period of distribution.

	As of September 30, 2011
Contracts	Accumulated Other Comprehensive Loss After-tax		Portion Expected to be Reclassified to Income during the Next 12 Months		Maximum Term
	(millions of dollars)
Energy commodity (a)	$	40	$	28		32 months
Interest rate		10		1		251 months
Total	$	50	$	29

(a) The unrealized derivative losses recorded in AOCL relate to forecasted physical natural gas and electricity purchases which are used to supply retail natural gas and electricity contracts that are in gain positions and subject to accrual accounting. Under accrual accounting, no asset is recorded on PHI’s consolidated balance sheet and the purchase cost is not recognized until the period of distribution.

Net Outstanding Commodity Forward Contracts that did not Qualify for Hedge Accounting

	September 30, 2012				December 31, 2011
Commodity	Quantity		Net Position		Quantity		Net Position
DPL – Natural gas (MMBtu)		3,571,000		Long		6,161,200		Long
ACE – Capacity (MWs)		180		Long		—		—

Schedule of Derivative Gain (Loss) Amounts Recognized in Income

	Three Months  Ended September 30,					Nine Months  Ended September 30,
	2012		2011			2012			2011
	(millions of dollars)
Reclassification of mark-to-market to realized on settlement of contracts	$	5	$	1		$	22		$	(1	)
Unrealized mark-to-market gain (loss)		3		(5	)		(2	)		(10	)
Total net gain (loss)	$	8	$	(4	)	$	20		$	(11	)

Delmarva Power & Light Co/De [Member]

Fair Value of Derivative Instruments by Balance Sheet Location

	As of September 30, 2012
Balance Sheet Caption	Derivatives Designated as Hedging Instruments		Other Derivative Instruments			Gross Derivative Instruments			Effects of Cash Collateral and Netting			Net Derivative Instruments
	(millions of dollars)
Derivative assets (current assets)	$	—	$	1		$	1		$	(1	)	$	—
Total Derivative assets		—		1			1			(1	)		—
Derivative liabilities (current liabilities)		—		(7	)		(7	)		—			(7	)
Derivative liabilities (non-current liabilities)		—		—			—			—			—
Total Derivative liabilities		—		(7	)		(7	)		—			(7	)
Net Derivative (liability) asset	$	—	$	(6	)	$	(6	)	$	(1	)	$	(7	)

	As of December 31, 2011
Balance Sheet Caption	Derivatives Designated as Hedging Instruments		Other Derivative Instruments			Gross Derivative Instruments			Effects of Cash Collateral and Netting		Net Derivative Instruments
	(millions of dollars)
Derivative liabilities (current liabilities)	$	—	$	(14	)	$	(14	)	$	2	$	(12	)
Derivative liabilities (non-current liabilities)		—		(3	)		(3	)		—		(3	)
Total Derivative liabilities		—		(17	)		(17	)		2		(15	)
Net Derivative (liability) asset	$	—	$	(17	)	$	(17	)	$	2	$	(15	)

Schedule of Cash Collateral Offset Against Derivative Positions

	September 30, 2012			December 31, 2011
	(millions of dollars)
Cash collateral pledged to counterparties with the right to reclaim	$	—		$	2
Cash collateral received from counterparties with the obligation to return		(1	)		—

Net Unrealized Derivative Gain (Loss) Deferred as Regulatory Asset Or Liability

	Three Months Ended September 30,					Nine Months  Ended September 30,
	2012		2011			2012		2011
	(millions of dollars)
Net unrealized loss arising during the period	$	—	$	(1	)	$	—	$	(1	)
Net realized loss recognized during the period		—		(2	)		—		(5	)

Schedule of Unrealized Derivative Losses Included in Regulatory Assets and Realized Losses Recognized in Statement of Financial Performance

	Three Months  Ended September 30,						Nine Months  Ended September 30,
	2012			2011			2012			2011
	(millions of dollars)
Net unrealized gain (loss) arising during the period	$	2		$	(4	)	$	(2	)	$	(6	)
Net realized losses recognized during the period		(2	)		(3	)		(13	)		(14	)

Net Outstanding Commodity Forward Contracts that did not Qualify for Hedge Accounting

	September 30, 2012				December 31, 2011
Commodity	Quantity		Net Position		Quantity		Net Position
Natural gas (One Million British Thermal Units (MMBtu))		3,571,000		Long		6,161,200	Long

Pepco Energy Services [Member]

Outstanding Energy Commodity Contracts Employed as Cash Flow Hedges

	September 30, 2012				December 31, 2011
Commodity	Quantity		Net Position		Quantity		Net Position
Financial transmission rights (MWh)		254,601		Long		267,480		Long
Electric capacity (MW – Days)		—		—		12,920		Long
Electricity (MWh)		261,240		Long		788,280		Long
Natural gas (One Million British Thermal Units (MMBtu))		6,176,711		Long		24,550,257		Long