Segment financial information for continuing operations for the three and nine months ended September 30, 2013 and 2012 is as follows:


	Three Months Ended September 30, 2013
	*(millions of dollars)*
	Power Delivery		Pepco Energy Services			Corporate and Other (a)			PHI Consolidated
Operating Revenue	$	1,298	$	48		$	(2	)	$	1,344
Operating Expenses (b)		1,067		50			(8	)		1,109
Operating Income (Loss)		231		(2	)		6			235
Interest Expense		58		1			9			68
Other Income (Loss)		8		1			(1	)		8
Income Tax Expense (Benefit)		67		(1	)		(1	)		65
Net Income (Loss) from Continuing Operations		114		(1	)		(3	)		110
Total Assets (excluding Assets Held for Disposition)		12,790		341			1,779			14,910
Construction Expenditures	$	293	$	1		$	33		$	327

(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 Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(2) million for Operating Revenue, $(1) million for Operating Expenses, $(2) million for Interest Income and $(2) million for Interest Expense.

(b)	Includes depreciation and amortization expense of $124 million, consisting of $116 million for Power Delivery and $8 million for Corporate and Other.


	Three Months Ended September 30, 2012
	*(millions of dollars)*
	Power Delivery		Pepco Energy Services			Corporate and Other (a)			PHI Consolidated
Operating Revenue	$	1,335	$	57		$	(3	)	$	1,389
Operating Expenses (b)		1,136		64	(c)		(12	)		1,188
Operating Income (Loss)		199		(7	)		9			201
Interest Income		—		1			(1	)		—
Interest Expense		56		1			9			66
Other Income		8		1			—			9
Income Tax Expense (Benefit)		59		(3	)		1			57
Net Income (Loss) from Continuing Operations		92		(3	)		(2	)		87
Total Assets (excluding Assets Held for Disposition)		12,039		426			1,915			14,380
Construction Expenditures	$	289	$	1		$	9		$	299

(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 Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(3) million for Operating Revenue, $(4) million for Operating Expenses, $(7) million for Interest Income and $(5) million for Interest Expense.

(b)	Includes depreciation and amortization expense of $122 million, consisting of $114 million for Power Delivery, $2 million for Pepco Energy Services and $6 million for Corporate and Other.

(c)	Includes impairment losses of $2 million pre-tax ($1 million after-tax) at Pepco Energy Services associated with the combustion turbines at Buzzard Point.


	Nine Months Ended September 30, 2013
	*(millions of dollars)*
	Power Delivery		Pepco Energy Services		Corporate and Other (a)			PHI Consolidated
Operating Revenue	$	3,428	$	154	$	(7	)	$	3,575
Operating Expenses (b)		2,934		151		(23	)		3,062
Operating Income		494		3		16			513
Interest Expense		172		1		32			205
Other Income		21		2		1			24
Income Tax Expense (c)		115		1		164	(d)		280
Net Income (Loss) from Continuing Operations		228		3		(179	)		52
Total Assets (excluding Assets Held for Disposition)		12,790		341		1,779			14,910
Construction Expenditures	$	856	$	2	$	85		$	943

(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 Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(8) million for Operating Revenue, $(7) million for Operating Expenses, $(7) million for Interest Income and $(6) million for Interest Expense.

(b)	Includes depreciation and amortization expense of $352 million, consisting of $327 million for Power Delivery, $4 million for Pepco Energy Services and $21 million for Corporate and Other.

(c)	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 $66 million for Corporate and Other.

(d)	Includes non-cash charges of $101 million representing the establishment of valuation allowances against certain deferred tax assets of PCI included in Corporate and Other.


	Nine Months Ended September 30, 2012
	*(millions of dollars)*
	Power Delivery		Pepco Energy Services			Corporate and Other (a)			PHI Consolidated
Operating Revenue	$	3,374	$	205		$	(10	)	$	3,569
Operating Expenses (b)		2,950		209	(c)		(29	)		3,130
Operating Income (Loss)		424		(4	)		19			439
Interest Income		—		1			(1	)		—
Interest Expense		162		2			26			190
Other Income		24		1			2			27
Income Tax Expense (Benefit)		93		(2	)		1			92
Net Income (Loss) from Continuing Operations		193		(2	)		(7	)		184
Total Assets (excluding Assets Held for Disposition)		12,039		426			1,915			14,380
Construction Expenditures	$	854	$	11		$	23		$	888

(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 Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(11) million for Operating Revenue, $(11) million for Operating Expenses, $(18) million for Interest Income and $(15) million for Interest Expense.

(b)	Includes depreciation and amortization expense of $343 million, consisting of $313 million for Power Delivery, $12 million for Pepco Energy Services and $18 million for Corporate and Other.

(c)	Includes impairment losses of $5 million pre-tax ($3 million after-tax) at Pepco Energy Services associated primarily with an investment in a landfill gas-fired electric generation facility and the combustion turbines at Buzzard Point.