Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Of Financial Assets And Liabilities Measured On Recurring Basis


	Fair Value Measurements at December 31, 2012
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	*(millions of dollars)*
ASSETS
Derivative instruments (b)
Electricity (c)	$	1	$	—	$	1	$	—
Capacity (e)		8		—		—		8
Cash equivalents
Treasury fund		27		27		—		—
Executive deferred compensation plan assets
Money market funds		17		17		—		—
Life insurance contracts		60		—		42		18

	$	113	$	44	$	43	$	26

LIABILITIES
Derivative instruments (b)
Electricity (c)	$	10	$	—	$	10	$	—
Natural gas (d)		15		11		—		4
Capacity (e)		11		—		—		11
Executive deferred compensation plan liabilities
Life insurance contracts		28		—		28		—

	$	64	$	11	$	38	$	15

(a)	There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2012.

(b)	The fair values of derivative assets and liabilities reflect netting by counterparty before the impact of collateral.

(c)	Represents wholesale electricity futures and swaps that are used mainly as part of Pepco Energy Services’ retail energy supply business.

(d)	Level 1 instruments represent wholesale gas futures and swaps that are used mainly as part of Pepco Energy Services’ retail energy supply business and level 3 instruments represent natural gas options purchased by DPL as part of a natural gas hedging program approved by the DPSC.

(e)	Represents derivatives associated with ACE SOCAs.


	Fair Value Measurements at December 31, 2011
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	*(millions of dollars)*
ASSETS
Derivative instruments (b)
Electricity (c)	$	—	$	—	$	—	$	—
Cash equivalents
Treasury fund		114		114		—		—
Executive deferred compensation plan assets
Money market funds		18		18		—		—
Life insurance contracts		60		—		43		17

	$	192	$	132	$	43	$	17

LIABILITIES
Derivative instruments (b)
Electricity (c)	$	32	$	—	$	32	$	—
Natural gas (d)		67		50		—		17
Capacity		1		—		1		—
Executive deferred compensation plan liabilities
Life insurance contracts		28		—		28		—

	$	128	$	50	$	61	$	17

(a)	There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2011.

(b)	The fair value of derivative assets and liabilities reflect netting by counterparty before the impact of collateral.

(c)	Represents wholesale electricity futures and swaps that are used mainly as part of Pepco Energy Services’ retail energy supply business.

(d)

Level 1 instruments represent wholesale gas futures and swaps that are used mainly as part of Pepco Energy Services’ retail energy supply business and level 3 instruments represent natural gas options purchased by DPL as part of a natural gas hedging program approved by the DPSC, as well as Pepco Energy Services physical basis contracts.

Summary Of Primary Unobservable Inputs Used To Determine Fair Value Of Level 3 Instruments And Range Of Values That Could Be Used For Those Inputs

Type of Instrument	Fair Value at December 31, 2012	Valuation Technique	Unobservable Input	Range
	*(millions of dollars)*
Natural gas options	$(4)	Option model	Volatility factor	1.57 –2.00
Capacity contracts, net	(3)	Discounted cash flow	Discount rate	5% - 9%

Reconciliations Of Fair Value Measurements Using Significant Unobservable Inputs (Level 3)


	Year Ended December 31, 2012
	Natural Gas			Life Insurance Contracts			Capacity
	*(millions of dollars)*
Beginning balance as of January 1	$	(17	)	$	17		$	—
Total gains (losses) (realized and unrealized):
Included in income		2			4			—
Included in accumulated other comprehensive loss		—			—			—
Included in regulatory liabilities		(2	)		—			(3	)
Purchases		—			—			—
Issuances		—			(3	)		—
Settlements		13			—			—
Transfers in (out) of level 3		—			—			—

Ending balance as of December 31	$	(4	)	$	18		$	(3	)


	Year Ended December 31, 2011
	Natural Gas			Life Insurance Contracts
	*(millions of dollars)*
Beginning balance as of January 1	$	(23	)	$	19
Total gains (losses) (realized and unrealized):
Included in income		(4	)		6
Included in accumulated other comprehensive loss		—			—
Included in regulatory liabilities		(10	)		—
Purchases		—			—
Issuances		—			(3	)
Settlements		19			(5	)
Transfers in (out) of level 3		1			—

Ending balance as of December 31	$	(17	)	$	17

Gains Or (Losses) On Level 3 Instruments Included In Income


	Year Ended December 31,
	2012		2011
	*(millions of dollars)*
Total net gains included in income for the period	$	4	$	2

Change in unrealized gains relating to assets still held at reporting date	$	4	$	2

Fair Value Of Financial Liabilities Measured On Recurring Basis


	Fair Value Measurements at December 31, 2012
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	*(millions of dollars)*
LIABILITIES
Debt instruments
Long-term debt (a)	$	5,004	$	204	$	4,313	$	487
Transition Bonds issued by ACE Funding (b)		341		—		341		—
Long-term project funding		13		—		—		13

	$	5,358	$	204	$	4,654	$	500

(a)	The carrying amount for Long-term debt is $4,177 million as of December 31, 2012.

(b)	The carrying amount for Transition Bonds issued by ACE Funding, including amounts due within one year, is $295 million as of December 31, 2012.

Estimated Fair Values Of Debt And Equity Instruments


	December 31, 2011
	Carrying Amount		Fair Value
	*(millions of dollars)*
Long-term debt	$	3,867	$	4,577
Transition Bonds issued by ACE Funding		332		380
Long-term project funding		15		15

Potomac Electric Power Co [Member]

Fair Value Of Financial Assets And Liabilities Measured On Recurring Basis


	Fair Value Measurements at December 31, 2012
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	*(millions of dollars)*
ASSETS
Executive deferred compensation plan assets
Money market funds	$	15	$	15	$	—	$	—
Life insurance contracts		56		—		38		18

	$	71	$	15	$	38	$	18

LIABILITIES
Executive deferred compensation plan liabilities
Life insurance contracts	$	9	$	—	$	9	$	—

	$	9	$	—	$	9	$	—

(a)	There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2012.


	Fair Value Measurements at December 31, 2011
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	*(millions of dollars)*
ASSETS
Executive deferred compensation plan assets
Money market funds	$	12	$	12	$	—	$	—
Life insurance contracts		57		—		40		17

	$	69	$	12	$	40	$	17

LIABILITIES
Executive deferred compensation plan liabilities
Life insurance contracts	$	10	$	—	$	10	$	—

	$	10	$	—	$	10	$	—

(a)	There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2011.

Reconciliations Of Fair Value Measurements Using Significant Unobservable Inputs (Level 3)


	Life Insurance Contracts
	Year Ended December 31,
	2012			2011
	*(millions of dollars)*
Beginning balance as of January 1	$	17		$	18
Total gains (losses) (realized and unrealized):
Included in income		4			6
Included in accumulated other comprehensive loss		—			—
Purchases		—			—
Issuances		(3	)		(3	)
Settlements		—			(4	)
Transfers in (out) of level 3		—			—

Ending balance as of December 31	$	18		$	17

Gains Or (Losses) On Level 3 Instruments Included In Income


	Year Ended December 31,
	2012		2011
	*(millions of dollars)*
Total gains included in income for the period	$	4	$	6

Change in unrealized gains relating to assets still held at reporting date	$	4	$	3

Fair Value Of Financial Liabilities Measured On Recurring Basis

Fair Value Measurements at December 31, 2012
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	*(millions of dollars)*
LIABILITIES
Debt instruments
Long-term debt (a)	$	2,160	$	204	$	1,956	$	—

	$	2,160	$	204	$	1,956	$	—

(a)	The carrying amount for Long-term debt is $1,701 million as of December 31, 2012.

Estimated Fair Values Of Debt And Equity Instruments


	December 31, 2011
	Carrying Amount		Fair Value
	(*millions of dollars*)
Long-term debt	$	1,540	$	1,943

Atlantic City Electric Co [Member]

Fair Value Of Financial Assets And Liabilities Measured On Recurring Basis


	Fair Value Measurements at December 31, 2012
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	*(millions of dollars)*
ASSETS
Derivative instruments (b)
Capacity (c)	$	8	$	—	$	—	$	8
Restricted cash equivalents
Treasury fund		27		27		—		—

	$	35	$	27	$	—	$	8

LIABILITIES
Derivative instruments (b)
Capacity (c)	$	11	$	—	$	—	$	11
Executive deferred compensation plan liabilities
Life insurance contracts		1		—		1		—

	$	12	$	—	$	1	$	11

(a)	There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2012.

(b)	The fair value of derivative assets and liabilities reflect netting by counterparty before the impact of collateral.

(c)	Represents derivatives associated with ACE SOCAs.


	Fair Value Measurements at December 31, 2011
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	*(millions of dollars)*
ASSETS
Cash and restricted cash equivalents
Treasury fund	$	114	$	114	$	—	$	—

	$	114	$	114	$	—	$	—

LIABILITIES
Executive deferred compensation plan liabilities
Life insurance contracts	$	1	$	—	$	1	$	—

	$	1	$	—	$	1	$	—

(a)	There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2011.

Summary Of Primary Unobservable Inputs Used To Determine Fair Value Of Level 3 Instruments And Range Of Values That Could Be Used For Those Inputs


Type of Instrument	Fair Value at December 31, 2012	Valuation Technique	Unobservable Input	Range
	*(millions of dollars)*
Capacity contracts, net	$(3)	Discounted cash flow	Discount rate		5% - 9	%

Reconciliations Of Fair Value Measurements Using Significant Unobservable Inputs (Level 3)


	Capacity
	Year Ended December 31,
	2012
	*(millions of dollars)*
Beginning balance as of January 1	$	—
Total gains (losses) (realized and unrealized):
Included in income
Included in accumulated other comprehensive loss		—
Included in regulatory liabilities and regulatory assets		(3	)
Purchases		—
Issuances		—
Settlements		—
Transfers in (out) of level 3		—

Ending balance as of December 31	$	(3	)

Fair Value Of Financial Liabilities Measured On Recurring Basis


	Fair Value Measurements at December 31, 2012
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	*(millions of dollars)*
LIABILITIES
Debt instruments
Long-term debt (a)	$	1,016	$	—	$	884	$	132
Transition Bonds issued by ACE Funding (b)		341		—		341		—

	$	1,357	$	—	$	1,225	$	132

(a)	The carrying amount for Long-term debt is $829 million as of December 31, 2012.

(b)	The carrying amount for Transition Bonds issued by ACE Funding, including amounts due within one year, is $295 million as of December 31, 2012.

Estimated Fair Values Of Debt And Equity Instruments


	December 31, 2011
	Carrying Amount		Fair Value
	*(millions of dollars)*
Long-term debt	$	832	$	1,003
Transition Bonds issued by ACE Funding		332		380

Delmarva Power & Light Co/De [Member]

Fair Value Of Financial Assets And Liabilities Measured On Recurring Basis


	Fair Value Measurements at December 31, 2012
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	*(millions of dollars)*
ASSETS
Executive deferred compensation plan assets
Money market funds	$	2	$	2	$	—	$	—
Life insurance contracts		1		—		—		1

	$	3	$	2	$	—	$	1

LIABILITIES
Derivative instruments (b)
Natural gas (c)	$	4	$	—	$	—	$	4

	$	4	$	—	$	—	$	4

(a)	There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2012.

(b)	The fair value of derivative liabilities reflect netting by counterparty before the impact of collateral.

(c)	Represents natural gas options purchased by DPL as part of a natural gas hedging program approved by the DPSC.


	Fair Value Measurements at December 31, 2011
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	*(millions of dollars)*
ASSETS
Executive deferred compensation plan assets
Money market funds	$	2	$	2	$	—	$	—
Life insurance contracts		1		—		—		1

	$	3	$	2	$	—	$	1

LIABILITIES
Derivative instruments (b)
Natural gas (c)	$	17	$	2	$	—	$	15

	$	17	$	2	$	—	$	15

(a)	There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2011.

(b)	The fair value of derivative liabilities reflect netting by counterparty before the impact of collateral.

(c)	Represents natural gas options purchased by DPL as part of a natural gas hedging program approved by the DPSC.

Summary Of Primary Unobservable Inputs Used To Determine Fair Value Of Level 3 Instruments And Range Of Values That Could Be Used For Those Inputs


Type of Instrument	Fair Value at December 31, 2012	Valuation Technique	Unobservable Input	Range
	*(millions of dollars)*
Natural gas options	$(4)	Option model	Volatility factor		1.57 – 2.00

Reconciliations Of Fair Value Measurements Using Significant Unobservable Inputs (Level 3)


	Year Ended December 31, 2012
	Natural Gas			Life Insurance Contracts
	*(millions of dollars)*
Beginning balance as of January 1	$	(15	)	$	1
Total gains (losses) (realized and unrealized):
Included in income		—			—
Included in accumulated other comprehensive loss		—			—
Included in regulatory liabilities		(2	)		—
Purchases		—			—
Issuances		—			—
Settlements		13			—
Transfers in (out) of Level 3		—			—

Ending balance as of December 31	$	(4	)	$	1


	Year Ended December 31, 2011
	Natural Gas			Life Insurance Contracts
	*(millions of dollars)*
Beginning balance as of January 1	$	(23	)	$	1
Total gains (losses) (realized and unrealized):
Included in income		—			—
Included in accumulated other comprehensive loss		—			—
Included in regulatory liabilities		(10	)		—
Purchases		—			—
Issuances		—			—
Settlements		18			—
Transfers in (out) of Level 3		—			—

Ending balance as of December 31	$	(15	)	$	1

Fair Value Of Financial Liabilities Measured On Recurring Basis


	Fair Value Measurements at December 31, 2012
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	*(millions of dollars)*
LIABILITIES
Debt instruments
Long-term debt (a)	$	990	$	—	$	877	$	113

	$	990	$	—	$	877	$	113

(a)	The carrying amount for Long-term debt is $917 million as of December 31, 2012.

Estimated Fair Values Of Debt And Equity Instruments


	December 31, 2011
	Carrying Amount		Fair Value
	(*millions of dollars*)
Long-term debt	$	765	$	834

- Definition

Tabular disclosure of the amount of gains or losses for the period included in earnings or resulted in a change to net assets, have arisen from the use of significant unobservable inputs (level 3) to measure the fair value of assets, liabilities, and financial instruments classified in shareholders' equity.

+ References+ Details

- Definition

Tabular disclosure of liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 7

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 835

-SubTopic 30

-Section 55

-Paragraph 8

-URI http://asc.fasb.org/extlink&oid=6584090&loc=d3e28878-108400

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 835

-SubTopic 30

-Section 45

-Paragraph 1A

-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(e),(f))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 942

-SubTopic 470

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 835

-SubTopic 30

-Section 45

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 8

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 22

-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.5-02.22)

-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

+ Details