Three Months Ended March 31, 2013
	*(millions of dollars)*
	Power Delivery		Pepco Energy Services		Other Non- Regulated			Corporate and Other (a)			PHI Consolidated
Operating Revenue	$	1,124	$	97	$	(368	)(b)	$	(1	)	$	852
Operating Expenses (c)		1,001		94		—			(7	)		1,088
Operating Income (Loss)		123		3		(368	)		6			(236	)
Interest Income		—		—		1			(1	)		—
Interest Expense		56		—		1			10			67
Other Income		6		1		1			—			8
Preferred Stock Dividends		—		—		1			(1	)		—
Income Tax Expense (d)		15		1		53	(e)		66			135
Net Income (Loss) from Continuing Operations		58		3		(421	)		(70	)		(430	)
Total Assets (excluding Assets Held For Sale)		12,453		368		882			1,952			15,655
Construction Expenditures	$	282	$	1	$	—		$	13		$	296

(a)

Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in the Corporate and Other segment and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(1) million for Operating Revenue, $(1) million for Operating Expenses, $(3) million for Interest Income, $(4) million for Interest Expense and $(1) million for Preferred Stock Dividends.

(b)	Includes a non-cash pre-tax charge of $373 million to reduce the carrying value of the cross-border energy lease investments.

(c)	Includes depreciation and amortization expense of $112 million, consisting of $104 million for Power Delivery, $2 million for Pepco Energy Services and $6 million for Corporate and Other.

(d)

Includes after-tax interest associated with uncertain and effectively settled tax positions allocated to each member of the consolidated group, including a $12 million interest benefit for Power Delivery and interest expense of $16 million and $66 million for Other Non-Regulated and Corporate and Other, respectively.

(e)

Includes non-cash charges of $64 million primarily for the tax consequences associated with PHI’s change in intent regarding foreign investment opportunities associated with the cross-border energy lease investments and $101 million representing the establishment of valuation allowances against certain deferred tax assets of PCI included in Other Non-Regulated.


	Three Months Ended March 31, 2012
	*(millions of dollars)*
	Power Delivery			Pepco Energy Services		Other Non- Regulated		Corporate and Other (a)			PHI Consolidated
Operating Revenue	$	1,055		$	178	$	13	$	(4	)	$	1,242
Operating Expenses (b)		954			169		1		(13	)		1,111
Operating Income		101			9		12		9			131
Interest Income		—			—		1		(1	)		—
Interest Expense		53			1		3		8			65
Other Income (Expenses)		8			—		1		(1	)		8
Preferred Stock Dividends		—			—		1		(1	)		—
Income Tax Expense (Benefit)		9	(c)		3		—		(1	)		11
Net Income from Continuing Operations		47			5		10		1			63
Total Assets (excluding Assets Held For Sale)		11,473			583		1,487		1,684			15,227
Construction Expenditures	$	280		$	5	$	—	$	6		$	291

(a)

Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in the Corporate and Other segment and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(4) million for Operating Revenue, $(6) million for Operating Expenses, $(5) million for Interest Income, $(5) million for Interest Expense and $(1) million for Preferred Stock Dividends.

(b)	Includes depreciation and amortization expense of $110 million, consisting of $99 million for Power Delivery, $6 million for Pepco Energy Services, $1 million for Other Non-Regulated and $4 million for Corporate and Other.

(c)

Includes income tax benefits of $10 million related to uncertain and effectively settled tax positions, primarily due to the effective settlement with the Internal Revenue Service with respect to the methodology used historically to calculate deductible mixed service costs and the expiration of the statute of limitations associated with an uncertain tax position at Pepco.