Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information (Unaudited)

(18) QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The quarterly data presented below reflect all adjustments necessary in the opinion of management for a fair presentation of the interim results. Quarterly data normally vary seasonally because of temperature variations and differences between summer and winter rates. The totals of the four quarterly basic and diluted earnings per common share amounts may not equal the basic and diluted earnings per common share for the year due to changes in the number of shares of common stock outstanding during the year.

	2013
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total
	(millions, except per share amounts)
Total Operating Revenue	$	1,180		$	1,051		$	1,344		$	1,091		$	4,666
Total Operating Expenses		1,047			906			1,109			936	(a)		3,998
Operating Income		133			145			235			155			668
Other Expenses		(59	)		(62	)		(60	)		(58	)		(239	)
Income From Continuing Operations Before Income Tax Expense		74			83			175			97			429
Income Tax Expense Related to Continuing Operations		185	(b)		30			65			39			319
Net (Loss) Income From Continuing Operations		(111	)		53			110			58			110
(Loss) Income from Discontinued Operations, net of taxes		(319	)		(11	)		8			—			(322	)
Net (Loss) Income	$	(430	)	$	42		$	118		$	58		$	(212	)
Basic and Diluted Earnings Per Share of Common Stock
(Loss) Earnings Per Share of Common Stock from Continuing Operations		(0.47	)		0.21			0.44			0.23			0.45
(Loss) Earnings Per Share of Common Stock from Discontinued Operations		(1.35	)		(0.04	)		0.04			—			(1.31	)
(Loss) Earnings Per Share of Common Stock		(1.82	)		0.17			0.48			0.23			(0.86	)
Cash Dividends Per Share of Common Stock		0.27			0.27			0.27			0.27			1.08

(a) Includes a pre-tax impairment loss of $4 million ($3 million after-tax) at Pepco Energy Services associated with a landfill gas-fired electric generation facility.

(b) Includes an income tax charge of $56 million (after-tax) primarily associated with interest on uncertain and effectively settled tax positions and an income tax charge of $101 million associated with the establishment of valuation allowances against certain deferred tax assets of PCI.

	2012
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total
	(millions, except per share amounts)
Total Operating Revenue (a)	$	1,123		$	1,057		$	1,389		$	1,056		$	4,625
Total Operating Expenses (a)(b)		1,010			932			1,188			954			4,084
Operating Income		113			125			201			102			541
Other Expenses		(54	)		(52	)		(57	)		(57	)		(220	)
Income From Continuing Operations Before Income Tax Expense		59			73			144			45			321
Income Tax Expense Related to Continuing Operations		9			26			57			11			103
Net Income From Continuing Operations		50			47			87			34			218
Income from Discontinued Operations, net of taxes		18			15			25			9			67
Net Income	$	68		$	62		$	112		$	43		$	285
Basic Earnings Per Share of Common Stock
Earnings Per Share of Common Stock from Continuing Operations		0.22			0.20			0.38			0.15			0.95
Earnings Per Share of Common Stock from Discontinued Operations		0.08			0.07			0.11			0.03			0.30
Basic Earnings Per Share of Common Stock		0.30			0.27			0.49			0.18			1.25
Diluted Earnings Per Share of Common Stock
Earnings Per Share of Common Stock from Continuing Operations		0.22			0.20			0.38			0.15			0.95
Earnings Per Share of Common Stock from Discontinued Operations		0.08			0.07			0.11			0.03			0.29
Diluted Earnings Per Share of Common Stock		0.30			0.27			0.49			0.18			1.24
Cash Dividends Per Share of Common Stock		0.27			0.27			0.27			0.27			1.08

(a) Includes $9 million of intra-company revenues (and associated costs) previously eliminated in consolidation which will continue to be recognized from third parties subsequent to the completion of the wind-down of the Pepco Energy Services’ retail electric and natural gas supply businesses.

(b) Includes impairment losses of $12 million pre-tax ($7 million after-tax) at Pepco Energy Services associated primarily with investments in landfill gas-fired electric generation facilities, and the combustion turbines at Buzzard Point.

Potomac Electric Power Co [Member]

Quarterly Financial Information (Unaudited)

(14) QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The quarterly data presented below reflect all adjustments necessary, in the opinion of management, for a fair presentation of the interim results. Quarterly data normally vary seasonally because of temperature variations and differences between summer and winter rates. Therefore, comparisons by quarter within a year are not meaningful.

	2013
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total
	(millions of dollars)
Total Operating Revenue	$	477		$	469		$	605		$	475		$	2,026
Total Operating Expenses		430			389			476			410			1,705
Operating Income		47			80			129			65			321
Other Expenses		(22	)		(23	)		(23	)		(24	)		(92	)
Income Before Income Tax Expense		25			57			106			41			229
Income Tax Expense		2	(a)		20			40			17			79
Net Income	$	23		$	37		$	66		$	24		$	150

(a) Includes tax benefits of $5 million (after-tax) allocated to Pepco associated with interest on uncertain and effectively settled tax positions resulting from a change in assessment of tax benefits associated with the cross-border energy leases of a PHI affiliate.

	2012
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total
	(millions of dollars)
Total Operating Revenue	$	465		$	456		$	582		$	445		$	1,948
Total Operating Expenses		425			401			475			390			1,691
Operating Income		40			55			107			55			257
Other Expenses		(21	)		(20	)		(22	)		(20	)		(83	)
Income Before Income Tax Expense		19			35			85			35			174
Income Tax (Benefit) Expense (a)		(5	) (a)		8			35			10			48
Net Income	$	24		$	27		$	50		$	25		$	126

(a) Includes tax benefits of $10 million (after-tax), primarily related to the settlement of an uncertain tax position with the IRS related 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.

Delmarva Power & Light Co/De [Member]

Quarterly Financial Information (Unaudited)

(16) QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The quarterly data presented below reflect all adjustments necessary, in the opinion of management, for a fair presentation of the interim results. Quarterly data normally vary seasonally because of temperature variations and differences between summer and winter rates. Therefore, comparisons by quarter within a year are not meaningful.

	2013
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total
	(millions of dollars)
Total Operating Revenue	$	370		$	266		$	296		$	312		$	1,244
Total Operating Expenses		317			235			249			258			1,059
Operating Income		53			31			47			54			185
Other Expenses		(11	)		(10	)		(10	)		(9	)		(40	)
Income Before Income Tax Expense		42			21			37			45			145
Income Tax Expense		16			9			14			17			56
Net Income	$	26		$	12		$	23		$	28		$	89
	2012
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total
	(millions of dollars)
Total Operating Revenue	$	333		$	259		$	340		$	301		$	1,233
Total Operating Expenses		290			229			297			263			1,079
Operating Income		43			30			43			38			154
Other Expenses		(8	)		(8	)		(10	)		(11	)		(37	)
Income Before Income Tax Expense		35			22			33			27			117
Income Tax Expense		14			9			11			10			44
Net Income	$	21		$	13		$	22		$	17		$	73

Atlantic City Electric Co [Member]

Quarterly Financial Information (Unaudited)

(15) QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The quarterly data presented below reflect all adjustments necessary, in the opinion of management, for a fair presentation of the interim results. Quarterly data normally vary seasonally because of temperature variations and differences between summer and winter rates. Therefore, comparisons by quarter within a year are not meaningful.

	2013
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total
	(millions of dollars)
Total Operating Revenue	$	277		$	271		$	396		$	258		$	1,202
Total Operating Expenses		254			242			341			229			1,066
Operating Income		23			29			55			29			136
Other Expenses		(17	)		(18	)		(17	)		(15	)		(67	)
Income Before Income Tax Expense (Benefit)		6			11			38			14			69
Income Tax (Benefit) Expense		(3	)		4			13			5			19
Net Income	$	9		$	7		$	25		$	9		$	50

	2012
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Total
	(millions of dollars)
Total Operating Revenue	$	256		$	270		$	413		$	259		$	1,198
Total Operating Expenses		239			230			364			246			1,079
Operating Income		17			40			49			13			119
Other Expenses		(16	)		(17	)		(16	)		(17	)		(66	)
Income (Loss) Before Income Tax Expense (Benefit)		1			23			33			(4	)		53
Income Tax (Benefit) Expense		(1	)		9			13			(3	)		18
Net Income (Loss)	$	2		$	14		$	20		$	(1	)	$	35