Derivative Instruments And Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Of Derivative Instruments By Balance Sheet Location

	As of March 31, 2013
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)	$	—		$	1		$	1		$	(1	)	$	—
Derivative assets (non-current assets)		—			8			8			—			8
Total Derivative assets		—			9			9			(1	)		8
Derivative liabilities (current liabilities)		(2	)		(2	)		(4	)		2			(2	)
Derivative liabilities (non-current liabilities)		—			(11	)		(11	)		—			(11	)
Total Derivative liabilities		(2	)		(13	)		(15	)		2			(13	)
Net Derivative (liability) asset	$	(2	)	$	(4	)	$	(6	)	$	1		$	(5	)

(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, 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)	$	—		$	1		$	1		$	—	$	1
Derivative assets (non-current assets)		—			8			8			—		8
Total Derivative assets		—			9			9			—		9
Derivative liabilities (current liabilities)		(5	)		(8	)		(13	)		6		(7	)
Derivative liabilities (non-current liabilities)		—			(11	)		(11	)		—		(11	)
Total Derivative liabilities		(5	)		(19	)		(24	)		6		(18	)
Net Derivative (liability) asset	$	(5	)	$	(10	)	$	(15	)	$	6	$	(9	)

(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

	March 31, 2013			December 31, 2012
	(millions of dollars)
Cash collateral pledged to counterparties with the right to reclaim (a)	$	2		$	6
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 March 31,
	2013		2012
	(millions of dollars)
Amount of net pre-tax loss arising during the period included in Accumulated Other Comprehensive Loss	$	—	$	—
Amount of net pre-tax loss reclassified into income:
Effective portion:
Fuel and Purchased Energy expense		3		7
Ineffective portion: (a)
Revenue		—		—
Total net pre-tax loss reclassified into income		3		7
Net pre-tax gain on commodity derivatives included in Accumulated Other Comprehensive Loss	$	3	$	7

(a) For the three months ended March 31, 2013 and 2012, no amounts were reclassified from AOCL to income because the forecasted hedged transactions were deemed probable not to occur.

Cash Flow Hedges Included In Accumulated Other Comprehensive Loss

Contracts	As of March 31, 2013				Maximum Term
	Accumulated Other Comprehensive Loss After-tax		Portion Expected to be Reclassified to Income during the Next 12 Months
	(millions of dollars)
Energy commodity (a)	$	1	$	1		2 months
Interest rate		10		1		233 months
Total	$	11	$	2

(a) The unrealized derivative losses recorded in AOCL relate to forecasted physical electricity purchases which are used to supply retail 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 for the retail contracts and the purchase cost is not recognized until the period of distribution.

Contracts	As of March 31, 2012				Maximum Term
	Accumulated Other Comprehensive Loss After-tax		Portion Expected to be Reclassified to Income during the Next 12 Months
	(millions of dollars)
Energy commodity (a)	$	11	$	10		14 months
Interest rate		10		1		245 months
Total	$	21	$	11

(a) The unrealized derivative losses recorded in AOCL relate to forecasted physical and electricity purchases which are used to supply retail 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 for the retail contracts and the purchase cost is not recognized until the period of distribution.

Schedule Of Derivative Gain (Loss) Amounts Recognized In Income

	Three Months Ended March  31,
	2013		2012
	(millions of dollars)
Reclassification of mark-to-market to realized on settlement of contracts	$	2	$	2
Unrealized mark-to-market loss		—		(4	)
Total net gain (loss)	$	2	$	(2	)

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

	Three Months Ended March  31,
	2013			2012
	(millions of dollars)
Net unrealized gain (loss) arising during the period	$	2		$	(4	)
Net realized loss recognized during the period		(4	)		(7	)

Net Outstanding Commodity Forward Contracts That Did Not Qualify For Hedge Accounting

	March 31, 2013				December 31, 2012
Commodity	Quantity		Net Position		Quantity		Net Position
DPL – Natural gas (one Million British Thermal Units (MMBtu))		3,245,000		Long		3,838,000		Long
ACE – Capacity (MWs)		180		Long		180		Long

Discontinued Operations [Member]

Fair Value Of Derivative Instruments By Balance Sheet Location

	As of March 31, 2013
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)	$	—		$	(7	)	$	(7	)	$	7	$	—
Derivative liabilities (non-current liabilities)		—			(1	)		(1	)		1		—
Net Derivative liability	$	—		$	(8	)	$	(8	)	$	8	$	—
	As of December 31, 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 liabilities (current liabilities)	$	(5	)	$	(5	)	$	(10	)	$	10	$	—
Derivative liabilities (non-current liabilities)		(1	)		(1	)		(2	)		2		—
Net Derivative (liability) asset	$	(6	)	$	(6	)	$	(12	)	$	12	$	—

(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

	March 31, 2013		December 31, 2012
	(millions of dollars)
Cash collateral pledged to counterparties with the right to reclaim (a)	$	8	$	12

(a) Includes cash deposits on commodity brokerage accounts.

Activity Of Energy Commodity Contracts Designated As Cash Flow Hedges

	Three Months Ended March 31,
	2013		2012
	(millions of dollars)
Amount of net pre-tax loss arising during the period included in Accumulated Other Comprehensive Loss	$	—	$	—
Amount of net pre-tax loss reclassified into income:
Effective portion:
Income from Discontinued Operations, Net of Income Taxes		1		6
Ineffective portion: (a)
Income from Discontinued Operations, Net of Income Taxes		4		—
Total net pre-tax loss reclassified into Income from Discontinued Operations, Net of Income Taxes		5		6
Net pre-tax gain on commodity derivatives included in Accumulated Other Comprehensive Loss	$	5	$	6

(a) Included in the table above is a loss of $4 million for the three months ended March 31, 2013, which was reclassified from AOCL to Income from Discontinued Operations, Net of Income Taxes because the forecasted hedged transactions were deemed probable not to occur. For the three months ended March 31, 2012, no amounts were reclassified from AOCL to Income from Discontinued Operations, Net of Income Taxes because the forecasted hedged transactions were deemed probable not to occur.

Cash Flow Hedges Included In Accumulated Other Comprehensive Loss

Contracts	As of March 31, 2012				Maximum Term
	Accumulated Other Comprehensive Loss After-tax		Portion Expected to be Reclassified to Income during the Next 12 Months
	(millions of dollars)
Energy commodity (a)	$	10	$	7		26 months
Total	$	10	$	7

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

Schedule Of Derivative Gain (Loss) Amounts Recognized In Income

	Three Months Ended March 31,
	2013			2012
	(millions of dollars)
Reclassification of mark-to-market to realized on settlement of contracts	$	2		$	8
Unrealized mark-to-market loss		(3	)		(6	)
Total net (loss) gain	$	(1	)	$	2

Net Outstanding Commodity Forward Contracts That Did Not Qualify For Hedge Accounting

	March 31, 2013				December 31, 2012
Commodity	Quantity		Net Position		Quantity		Net Position
Natural gas (MMBtu)		2,047,500		Long		2,867,500		Long

Pepco Energy Services [Member]

Outstanding Energy Commodity Contracts Employed As Cash Flow Hedges

	March 31, 2013				December 31, 2012
Commodity	Quantity		Net Position		Quantity		Net Position
Financial transmission rights (MWh)		86,746		Long		181,008		Long
Electricity (MWh)		131,640		Long		261,240		Long

Delmarva Power & Light Co/De [Member]

Fair Value Of Derivative Instruments By Balance Sheet Location

	As of March 31, 2013
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	)	$	—
Derivative assets (non-current assets)		—		—		—		—			—
Net Derivative asset	$	—	$	1	$	1	$	(1	)	$	—

	As of December 31, 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 liabilities (current liabilities)	$	—	$	(4	)	$	(4	)	$	—	$	(4	)
Derivative liabilities (non-current liabilities)		—		—			—			—		—
Net Derivative liability	$	—	$	(4	)	$	(4	)	$	—	$	(4	)

Schedule Of Cash Collateral Offset Against Derivative Positions

	March 31, 2013			December 31, 2012
	(millions of dollars)
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 March  31,
	2013			2012
	(millions of dollars)
Net unrealized gains (losses) arising during the period	$	2		$	(4	)
Net realized losses recognized during the period		(4	)		(7	)

Net Outstanding Commodity Forward Contracts That Did Not Qualify For Hedge Accounting

	March 31, 2013				December 31, 2012
Commodity	Quantity		Net Position		Quantity		Net Position
Natural gas (one Million British Thermal Units (MMBtu))		3,245,000		Long		3,838,000		Long