Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value of Derivative Instruments by Balance Sheet Location

The tables below identify the balance sheet location and fair values of derivative instruments as of December 31, 2013 and 2012:

	As of December 31, 2013
Balance Sheet Caption	Derivatives Designated as Hedging Instruments		Other Derivative Instruments		Gross Derivative Instruments		Effects of Cash Collateral and Netting			Net Derivative Instruments
	(millions of dollars)
Derivative assets (current assets)	$	—	$	1	$	1	$	(1	)	$	—
Total Derivative asset	$	—	$	1	$	1	$	(1	)	$	—

	As of December 31, 2012
Balance Sheet Caption	Derivatives Designated as Hedging Instruments		Other Derivative Instruments			Gross Derivative Instruments			Effects of Cash Collateral and Netting		Net Derivative Instruments
	(millions of dollars)
Derivative assets (non-current assets)	$	—	$	8		$	8		$	—	$	8
Total Derivative assets		—		8			8			—		8
Derivative liabilities (current liabilities)		—		(4	)		(4	)		—		(4	)
Derivative liabilities (non-current liabilities)		—		(11	)		(11	)		—		(11	)
Total Derivative liabilities		—		(15	)		(15	)		—		(15	)
Net Derivative liability	$	—	$	(7	)	$	(7	)	$	—	$	(7	)

Schedule of Cash Collateral Offset Against Derivative Positions

The amount of cash collateral that was offset against these derivative positions is as follows:

	December 31, 2013			December 31, 2012
	(millions of dollars)
Cash collateral received from counterparties with the obligation to return	$	(1	)	$	—

Cash Flow Hedges Included in Accumulated Other Comprehensive Loss

The data in the following tables indicate the cumulative net loss after-tax related to terminated cash flow hedges by contract type included in AOCL, the portion of AOCL expected to be reclassified to income during the next 12 months, and the maximum hedge or deferral term:

	As of December 31, 2013				Maximum Term
Contracts	Accumulated Other Comprehensive Loss After-tax		Portion Expected to be Reclassified to Income during the Next 12 Months
	(millions of dollars)
Interest rate	$	9	$	1	224 months
Total	$	9	$	1
	As of December 31, 2012				Maximum Term
Contracts	Accumulated Other Comprehensive Loss After-tax		Portion Expected to be Reclassified to Income during the Next 12 Months
	(millions of dollars)
Interest rate	$	10	$	1	236 months
Total	$	10	$	1

Net Unrealized Derivative Gain (Loss) Deferred as Regulatory Asset or Liability

The following table indicates the net unrealized and net realized derivative gains and (losses) arising during the period associated with these derivatives that were recognized in the consolidated statements of (loss) income (through Fuel and purchased energy expense) and that were also deferred as Regulatory assets for the years ended December 31, 2013, 2012 and 2011:

	For the Year Ended December 31,
	2013			2012			2011
	(millions of dollars)
Net unrealized gain (loss) arising during the period	$	4		$	(6	)	$	(13	)
Net realized loss recognized during the period		(4	)		(16	)		(22	)

Net Outstanding Commodity Forward Contracts that Did Not Qualify for Hedge Accounting

As of December 31, 2013 and 2012, the quantities and positions of DPL’s net outstanding natural gas commodity forward contracts and ACE’s capacity derivatives associated with the SOCAs that did not qualify for hedge accounting were:

	December 31, 2013				December 31, 2012
Commodity	Quantity		Net Position		Quantity		Net Position
DPL—Natural gas (one Million British Thermal Units (MMBtu))		3,977,500		Long		3,838,000		Long
ACE—Capacity (MWs)		—		—		180		Long

Discontinued Operations [Member]

Fair Value of Derivative Instruments by Balance Sheet Location

The table below identifies the balance sheet location and fair values of the retail electric and natural gas supply businesses’ derivative instruments as of December 31, 2012:

	As of December 31, 2012
Balance Sheet Caption	Derivatives Designated as Hedging Instruments (a)			Other Derivative Instruments			Gross Derivative Instruments			Effects of Cash Collateral and Netting		Net Derivative Instruments
	(millions of dollars)
Assets held for disposition (current assets)	$	—		$	1		$	1		$	—	$	1
Total Derivative assets		—			1			1			—		1
Liabilities associated with assets held for disposition (current liabilities)		(10	)		(9	)		(19	)		16		(3	)
Liabilities associated with assets held for disposition (non-current liabilities)		(1	)		(1	)		(2	)		2		—
Total Derivative liabilities		(11	)		(10	)		(21	)		18		(3	)
Net Derivative (liability) asset	$	(11	)	$	(9	)	$	(20	)	$	18	$	(2	)

(a) Amounts included in Derivatives Designated as Hedging Instruments primarily consist of derivatives that were designated as cash flow hedges prior to Pepco Energy Services’ election to discontinue cash flow hedge accounting for these derivatives.

Net Outstanding Commodity Forward Contracts that Did Not Qualify for Hedge Accounting

As of December 31, 2012, the retail electric and natural gas supply businesses of Pepco Energy Srvices had the following net outstanding commodity forward contract quantities and net position on derivatives that did not qualify for hedge accounting:

	December 31, 2012
Commodity	Quantity		Net Position
Financial transmission rights (MWh)		181,008		Long
Electricity (MWh)		261,240		Long
Natural gas (MMBtu)		2,867,500		Long

Delmarva Power & Light Co/De [Member]

Fair Value of Derivative Instruments by Balance Sheet Location

The tables below identify the balance sheet location and fair values of derivative instruments as of December 31, 2013 and 2012:

	As of December 31, 2013
Balance Sheet Caption	Derivatives Designated as Hedging Instruments		Other Derivative Instruments		Gross Derivative Instruments		Effects of Cash Collateral and Netting			Net Derivative Instruments
	(millions of dollars)
Derivative assets (current assets)	$	—	$	1	$	1	$	(1	)	$	—
Total Derivative asset	$	—	$	1	$	1	$	(1	)	$	—

	As of December 31, 2012
Balance Sheet Caption	Derivatives Designated as Hedging Instruments		Other Derivative Instruments			Gross Derivative Instruments			Effects of Cash Collateral and Netting		Net Derivative Instruments
	(millions of dollars)
Derivative liabilities (current liabilities)	$	—	$	(4	)	$	(4	)	$	—	$	(4	)
Total Derivative liability	$	—	$	(4	)	$	(4	)	$	—	$	(4	)

Schedule of Cash Collateral Offset Against Derivative Positions

The amount of cash collateral that was offset against these derivative positions is as follows:

	December 31, 2013			December 31, 2012
	(millions of dollars)
Cash collateral received from counterparties with the obligation to return	$	(1	)	$	—

Net Unrealized Derivative Gain (Loss) Deferred as Regulatory Asset or Liability

For the years ended December 31, 2013, 2012 and 2011, the net unrealized derivative losses arising during the period that were deferred as Regulatory assets and the net realized losses recognized in the statements of income (through Purchased energy and Gas purchased expense) that were also deferred as Regulatory assets are provided in the table below:

	For the Year Ended December 31,
	2013			2012			2011
	(millions of dollars)
Net unrealized gain (loss) arising during the period	$	1		$	(3	)	$	(13	)
Net realized loss recognized during the period		(4	)		(16	)		(22	)

Net Outstanding Commodity Forward Contracts that Did Not Qualify for Hedge Accounting

As of December 31, 2013 and 2012, DPL had the following net outstanding natural gas commodity forward contracts that did not qualify for hedge accounting:

	December 31, 2013				December 31, 2012
Commodity	Quantity		Net Position		Quantity		Net Position
Natural Gas (One Million British Thermal Units (MMBtu))		3,977,500		Long		3,838,000		Long