Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Regulatory Assets and Regulatory Liabilities

The components of Pepco Holdings’ regulatory asset and liability balances at December 31, 2014 and 2013 are as follows:

	2014		2013
	(millions of dollars)
Regulatory Assets
Pension and other postretirement benefit costs	$	946	$	667
Securitized stranded costs		278		350
Recoverable income taxes		274		225
Demand-side management costs		264		125
Smart Grid costs		261		251
Deferred energy supply costs		73		136
Incremental storm restoration costs		51		72
Deferred debt extinguishment costs		42		47
MAPP abandonment costs		33		68
Recoverable workers’ compensation and long-term disability costs		30		26
Deferred losses on gas derivatives		4		—
Other		153		120
Total Regulatory Assets	$	2,409	$	2,087
Regulatory Liabilities
Asset removal costs	$	250	$	275
Deferred income taxes due to customers		44		45
Deferred energy supply costs		3		46
Deferred gains on gas derivatives		—		1
Other		46		32
Total Regulatory Liabilities	$	343	$	399

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 2014. 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)
DC – Pepco	$	23.4		9.40	%	March 26, 2014	April 16, 2014
DE – DPL (Electric)	$	15.1		9.70	%	August 5, 2014	May 1, 2014
MD – Pepco	$	8.8		9.62	%	July 2, 2014	July 4, 2014
NJ – ACE	$	19.0		9.75	%	August 20, 2014	September 1, 2014

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, 2014 and 2013 are as follows:

	2014		2013
	(millions of dollars)
Regulatory Assets
Demand-side management costs	$	197	$	98
Smart Grid costs		175		168
Recoverable income taxes		148		107
Recoverable workers’ compensation and long-term disability costs		30		26
Incremental storm restoration costs		29		37
Deferred debt extinguishment costs		22		25
MAPP abandonment costs		19		37
Deferred energy supply costs		3		6
Other		74		59
Total Regulatory Assets	$	697	$	563
Regulatory Liabilities
Asset removal costs	$	84	$	102
Other		20		11
Total Regulatory Liabilities	$	104	$	113

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, 2014 and 2013 are as follows:

	2014		2013
	(millions of dollars)
Regulatory Assets
Smart Grid costs	$	86	$	83
Recoverable income taxes		84		76
Demand-side management costs		67		27
COPCO acquisition adjustment		18		22
MAPP abandonment costs		14		31
Deferred debt extinguishment costs		12		13
Deferred energy supply costs		12		13
Incremental storm restoration costs		7		9
Deferred losses on gas derivatives		4		—
Other		52		37
Total Regulatory Assets	$	356	$	311
Regulatory Liabilities
Asset removal costs	$	166	$	173
Deferred income taxes due to customers		37		37
Deferred energy supply costs		—		3
Deferred gains on gas derivatives		—		1
Other		22		15
Total Regulatory Liabilities	$	225	$	229

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, 2014 and 2013 are as follows:

	2014		2013
	(millions of dollars)
Regulatory Assets
Securitized stranded costs	$	278	$	350
Deferred energy supply costs		58		117
Recoverable income taxes		42		42
Incremental storm restoration costs		15		26
Other		34		34
Total Regulatory Assets	$	427	$	569
Regulatory Liabilities
Federal and state tax benefits, related to securitized stranded costs	$	8	$	13
Deferred energy supply costs		—		38
Other		6		6
Total Regulatory Liabilities	$	14	$	57