Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Regulatory Assets and Regulatory Liabilities

The components of Pepco Holdings’ regulatory asset and liability balances at December 31, 2013 and 2012 are as follows:

	2013		2012
	(millions of dollars)
Regulatory Assets
Pension and OPEB costs	$	667	$	1,171
Securitized stranded costs (a)		350		416
Smart Grid costs (a)		251		230
Recoverable income taxes		225		177
Deferred energy supply costs (a)		136		183
Demand-side management costs (a)		125		57
Incremental storm restoration costs (a)		72		89
MAPP abandonment costs (a)		68		88
Deferred debt extinguishment costs (a)		47		53
Recoverable workers’ compensation and long-term disability costs		26		31
Deferred losses on gas derivatives		—		4
Other		120		115
Total Regulatory Assets	$	2,087	$	2,614
Regulatory Liabilities
Asset removal costs	$	275	$	324
Deferred energy supply costs		46		78
Deferred income taxes due to customers		45		45
Deferred gains on gas derivatives		1		—
Excess depreciation reserve		—		11
Other		32		43
Total Regulatory Liabilities	$	399	$	501

(a) A return is generally earned on these deferrals.

Schedule of Current Base Rate Increase Requisition to Increase Annual Revenue

The following table shows, for each of PHI’s utility subsidiaries, the electric distribution base rate cases currently pending. Additional information concerning each of these filings is provided in the discussion below.

Jurisdiction/Company	Requested Revenue Requirement Increase			Requested Return on Equity			Filing Date	Expected Timing of Decision
	(millions of dollars)
DC – Pepco	$	44.8	(a)		10.25	%	March 8, 2013	Q1, 2014
DE – DPL (Electric)	$	39.0	(b)		10.25	%	March 22, 2013	Q2, 2014
MD – Pepco	$	43.3			10.25	%	December 4, 2013	Q3, 2014

(a) Reflects Pepco’s updated revenue requirement as filed on December 3, 2013.

(b) Reflects DPL’s updated revenue requirement as filed on September 20, 2013.

Schedule of Current Base Rate Approval to Increase Annual Revenue

The following table shows, for each of PHI’s utility subsidiaries, the distribution base rate cases completed in 2013. Additional information concerning each of these cases is provided in the discussion below.

Jurisdiction/Company	Approved Revenue Requirement Increase		Approved Return on Equity			Completion Date	Rate Effective Date
	(millions of dollars)
NJ – ACE	$	25.5		9.75	%	June 21, 2013	July 1, 2013
MD – Pepco	$	27.9		9.36	%	July 12, 2013	July 12, 2013
MD – DPL	$	15.0		9.81	% (a)	August 30, 2013	September 15, 2013
DE – DPL (Gas)	$	6.8		9.75	% (b)	October 22, 2013	November 1, 2013

(a) Return on equity (ROE) has not been determined by any proceeding and is specified only for the purposes of calculating the AFUDC and regulatory asset carrying costs.

(b) ROE has not been determined by any proceeding and is specified only for reporting purposes and for calculating the AFUDC, construction work in process (CWIP), regulatory asset carrying costs and other accounting

Potomac Electric Power Co [Member]

Schedule of Regulatory Assets and Regulatory Liabilities

The components of Pepco’s regulatory asset and liability balances at December 31, 2013 and 2012 are as follows:

	2013		2012
	(millions of dollars)
Regulatory Assets
Smart Grid costs (a)	$	168	$	159
Recoverable income taxes		107		75
Demand-side management costs (a)		98		45
Incremental storm restoration costs (a)		37		44
MAPP abandonment costs (a)		37		50
Recoverable workers’ compensation and long-term disability costs		26		31
Deferred debt extinguishment costs (a)		25		28
Deferred energy supply costs		6		4
Other		59		51
Total Regulatory Assets	$	563	$	487
Regulatory Liabilities
Asset removal costs	$	102	$	122
Other		11		19
Total Regulatory Liabilities	$	113	$	141

(a) A return is generally earned on these deferrals.

Delmarva Power & Light Co/De [Member]

Schedule of Regulatory Assets and Regulatory Liabilities

The components of DPL’s regulatory asset and liability balances at December 31, 2013 and 2012 are as follows:

	2013		2012
	(millions of dollars)
Regulatory Assets
Smart Grid costs (a)	$	83	$	71
Recoverable income taxes		76		69
MAPP abandonment costs (a)		31		38
Demand-side management costs (a)		27		12
COPCO acquisition adjustment (a)		22		26
Deferred debt extinguishment costs (a)		13		15
Deferred energy supply costs (b)		13		13
Incremental storm restoration costs (a)		9		11
Deferred losses on gas derivatives		—		4
Other		37		29
Total Regulatory Assets	$	311	$	288
Regulatory Liabilities
Asset removal costs	$	173	$	202
Deferred income taxes due to customers		37		38
Deferred energy supply costs		3		6
Deferred gains on gas derivatives		1		—
Other		15		12
Total Regulatory Liabilities	$	229	$	258

(a) A return is earned on these deferrals.

(b) A return is generally earned in Delaware on this deferral.

Atlantic City Electric Co [Member]

Schedule of Regulatory Assets and Regulatory Liabilities

The components of ACE’s regulatory asset and liability balances at December 31, 2013 and 2012 are as follows:

	2013		2012
	(millions of dollars)
Regulatory Assets
Securitized stranded costs (a)	$	350	$	416
Deferred energy supply costs (a)		117		166
Recoverable income taxes		42		33
Incremental storm restoration costs		26		34
ACE SOCAs		—		11
Other		34		34
Total Regulatory Assets	$	569	$	694
Regulatory Liabilities
Deferred energy supply costs	$	38	$	62
Federal and state tax benefits, related to securitized stranded costs		13		16
Excess depreciation reserve		—		11
ACE SOCAs		—		8
Other		6		5
Total Regulatory Liabilities	$	57	$	102

(a) A return is generally earned on these deferrals.