Income Taxes (Tables)

6 Months Ended

Jun. 30, 2013

Reconciliation Of Effective Income Tax Rate From Continuing Operations

A reconciliation of PHI’s consolidated effective income tax rate from continuing operations is as follows:

	Three Months Ended June 30,										Six Months Ended June 30,
	2013					2012					2013					2012
	(millions of dollars)
Income tax at Federal statutory rate	$	25		35.0	%	$	29		35.0	%	$	(79	)	35.0	%	$	53		35.0	%
Increases (decreases) resulting from:
State income taxes, net of Federal effect		6		8.6	%		5		6.1	%		10		(4.4	)%		10		6.6	%
Asset removal costs		(3	)	(4.3	)%		(4	)	(4.9	)%		(6	)	2.7	%		(7	)	(4.6	)%
Change in estimates and interest related to uncertain and effectively settled tax positions		3		4.3	%		3		3.7	%		70		(31.1	)%		(10	)	(6.6	)%
Cross-border energy lease investments		6		8.6	%		(1	)	(1.2	)%		70		(31.1	)%		(2	)	(1.3	)%
Establishment of valuation allowances related to deferred tax assets		—		—			—		—			101		(44.9	)%		—		—
Other, net		(5	)	(6.5	)%		(3	)	(3.3	)%		1		(0.4	)%		(6	)	(3.9	)%
Consolidated income tax expense related to continuing operations	$	32		45.7	%	$	29		35.4	%	$	167		(74.2	)%	$	38		25.2	%

Potomac Electric Power Co [Member]

Reconciliation Of Effective Income Tax Rate From Continuing Operations

A reconciliation of Pepco’s effective income tax rate is as follows:

	Three Months Ended June 30,										Six Months Ended June  30,
	2013					2012					2013					2012
	(millions of dollars)
Income tax at Federal statutory rate	$	20		35.0	%	$	12		35.0	%	$	29		35.0	%	$	19		35.0	%
Increases (decreases) resulting from:
State income taxes, net of Federal effect		3		5.3	%		2		5.6	%		5		6.1	%		3		5.7	%
Asset removal costs		(3	)	(5.3	)%		(4	)	(11.5	)%		(6	)	(7.3	)%		(7	)	(12.8	)%
Change in estimates and interest related to uncertain and effectively settled tax positions		1		1.8	%		(1	)	(3.5	)%		(4	)	(4.9	)%		(11	)	(20.2	)%
Other, net		(1	)	(1.7	)%		(1	)	(2.7	)%		(2	)	(2.1	)%		(1	)	(2.1	)%
Income tax expense	$	20		35.1	%	$	8		22.9	%	$	22		26.8	%	$	3		5.6	%

Delmarva Power & Light Co/De [Member]

Reconciliation Of Effective Income Tax Rate From Continuing Operations

A reconciliation of DPL’s effective income tax rate is as follows:

	Three Months Ended June 30,								Six Months Ended June 30,
	2013				2012				2013					2012
	(millions of dollars)
Income tax at federal statutory rate	$	7	35.0	%	$	8	35.0	%	$	22		35.0	%	$	20	35.0	%
Increases (decreases) resulting from:
State income taxes, net of federal effect		1	4.8	%		1	5.1	%		3		4.8	%		3	5.4	%
Change in estimates and interest related to uncertain and effectively settled tax positions		—	—			—	—			(1	)	(1.6	)%		—	(0.2	)%
Other, net		1	3.1	%		—	0.8	%		1		1.5	%		—	0.2	%
Income tax expense	$	9	42.9	%	$	9	40.9	%	$	25		39.7	%	$	23	40.4	%

Atlantic City Electric Co [Member]

Reconciliation Of Effective Income Tax Rate From Continuing Operations

A reconciliation of ACE’s consolidated effective income tax rate is as follows:

	Three Months Ended June 30,									Six Months Ended June 30,
	2013					2012				2013					2012
	(millions of dollars)
Income tax at Federal statutory rate	$	4		35.0	%	$	8	35.0	%	$	6		35.0	%	$	8		35.0	%
Increases (decreases) resulting from:
State income taxes, net of Federal effect		1		9.1	%		1	4.2	%		1		5.9	%		1		4.0	%
Change in estimates and interest related to uncertain and effectively settled tax positions		1		9.1	%		—	0.8	%		(9	)	(52.9	)%		(1	)	(4.0	)%
Other, net		(2	)	(16.8	)%		—	(0.9	)%		3		17.9	%		—		(1.7	)%
Consolidated income tax expense	$	4		36.4	%	$	9	39.1	%	$	1		5.9	%	$	8		33.3	%