Income Taxes (Tables)

9 Months Ended

Sep. 30, 2013

Reconciliation Of Effective Income Tax Rates From Continuing Operations

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

	Three Months Ended September 30,										Nine Months Ended September 30,
	2013					2012					2013					2012
	(millions of dollars)
Income tax at Federal statutory rate	$	61		35.0	%	$	51		35.0	%	$	116		35.0	%	$	97		35.0	%
Increases (decreases) resulting from:
State income taxes, net of Federal effect		11		6.3	%		9		6.3	%		21		6.3	%		19		6.9	%
Asset removal costs		(5	)	(2.9	)%		(1	)	(0.7	)%		(11	)	(3.3	)%		(8	)	(2.9	)%
Change in estimates and interest related to uncertain and effectively settled tax positions		1		0.6	%		—		—			55		16.6	%		(10	)	(3.6	)%
Establishment of valuation allowances related to deferred tax assets		—		—			—		—			101		30.4	%		—		—
Other, net		(3	)	(1.9	)%		(2	)	(1.0	)%		(2	)	(0.7	)%		(6	)	(2.1	)%
Consolidated income tax expense related to continuing operations	$	65		37.1	%	$	57		39.6	%	$	280		84.3	%	$	92		33.3	%

Delmarva Power & Light Co/De [Member]

Reconciliation Of Effective Income Tax Rates From Continuing Operations

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

	Three Months Ended September 30,										Nine Months Ended September 30,
	2013					2012					2013					2012
	(millions of dollars)
Income tax at Federal statutory rate	$	13		35.0	%	$	12		35.0	%	$	35		35.0	%	$	32		35.0	%
Increases (decreases) resulting from:
State income taxes, net of Federal effect		2		5.4	%		2		6.1	%		5		5.0	%		5		5.6	%
Adjustments to prior year taxes		—		—			(2	)	(6.1	)%		—		—			(2	)	(2.2	)%
Change in estimates and interest related to uncertain and effectively settled tax positions		—		—			—		—			(1	)	(1.0	)%		—		—
Depreciation		—		—			(1	)	(3.0	)%		—		—			(1	)	(1.1	)%
Other, net		(1	)	(2.6	)%		—		1.3	%		—		—			—		0.5	%
Income tax expense	$	14		37.8	%	$	11		33.3	%	$	39		39.0	%	$	34		37.8	%

Atlantic City Electric Co [Member]

Reconciliation Of Effective Income Tax Rates From Continuing Operations

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

	Three Months Ended September 30,									Nine Months Ended September 30,
	2013					2012				2013					2012
	(millions of dollars)
Income tax at Federal statutory rate	$	13		35.0	%	$	11	35.0	%	$	19		35.0	%	$	20		35.0	%
Increases (decreases) resulting from:
State income taxes, net of Federal effect		2		5.3	%		2	6.1	%		4		7.3	%		3		5.3	%
Change in estimates and interest related to uncertain and effectively settled tax positions		—		—			—	—			(9	)	(16.4	)%		—		—
Other, net		(2	)	(6.1	)%		—	(1.7	)%		—		(0.4	)%		(2	)	(3.5	)%
Consolidated income tax expense	$	13		34.2	%	$	13	39.4	%	$	14		25.5	%	$	21		36.8	%

Potomac Electric Power Co [Member]

Reconciliation Of Effective Income Tax Rates From Continuing Operations

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

	Three Months Ended September 30,										Nine Months Ended September 30,
	2013					2012					2013					2012
	(millions of dollars)
Income tax at Federal statutory rate	$	37		35.0	%	$	30		35.0	%	$	66		35.0	%	$	49		35.0	%
Increases (decreases) resulting from:
State income taxes, net of Federal effect		6		5.7	%		5		5.9	%		11		5.9	%		8		5.8	%
Asset removal costs		(5	)	(4.7	)%		(1	)	(1.2	)%		(11	)	(5.9	)%		(8	)	(5.8	)%
Change in estimates and interest related to uncertain and effectively settled tax positions		—		—			—		—			(4	)	(2.1	)%		(11	)	(7.9	)%
Permanent differences related to deferred compensation funding		—		—			—		—			—		—			(1	)	(0.7	)%
Tax credits		—		—			—		—			—		—			(1	)	(0.7	)%
Other, net		2		1.7	%		1		1.5	%		—		0.1	%		2		1.6	%
Income tax expense	$	40		37.7	%	$	35		41.2	%	$	62		33.0	%	$	38		27.3	%