Fair Value Disclosures (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following tables set forth, by level within the fair value hierarchy, PHI’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2014 and 2013. As required by the guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. PHI’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

	Fair Value Measurements at December 31, 2014
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
ASSETS
Derivative instruments
Preferred stock	$	3	$	—	$	—	$	3
Restricted cash equivalents
Treasury fund		38		38		—		—
Executive deferred compensation plan assets
Money market funds and short-term investments		35		14		21		—
Life insurance contracts		46		—		27		19
Total	$	122	$	52	$	48	$	22
LIABILITIES
Derivative instruments (b)
Natural gas (c)	$	4	$	4	$	—	$	—
Executive deferred compensation plan liabilities
Life insurance contracts		30		—		30		—
Total	$	34	$	4	$	30	$	—

(a) There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2014.

(b) The fair values of derivative liabilities reflect netting by counterparty before the impact of collateral.

(c) Represents natural gas swaps purchased by DPL as part of a natural gas hedging program approved by the DPSC.

	Fair Value Measurements at December 31, 2013
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
ASSETS
Derivative instruments (b)
Natural gas (c)	$	1	$	1	$	—	$	—
Restricted cash and cash equivalents
Treasury fund		34		34		—		—
Executive deferred compensation plan assets
Money market funds and short-term investments		35		15		20		—
Life insurance contracts		46		—		27		19
Total	$	116	$	50	$	47	$	19
LIABILITIES
Executive deferred compensation plan liabilities
Life insurance contracts	$	30	$	—	$	30	$	—
Total	$	30	$	—	$	30	$	—

(a) There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2013.

(b) The fair values of derivative assets reflect netting by counterparty before the impact of collateral.

(c) Represents natural gas swaps purchased by DPL as part of a natural gas hedging program approved by the DPSC.

Reconciliations of Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Reconciliations of the beginning and ending balances of PHI’s fair value measurements using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013 are shown below:

	Year Ended December 31, 2014					Year Ended December 31, 2013
	Preferred Stock		Life Insurance Contracts			Natural Gas			Life Insurance Contracts			Capacity
	(millions of dollars)
Balance as of January 1	$	—	$	19		$	(4	)	$	18		$	(3	)
Total gains (losses) (realized and unrealized):
Included in income		—		3			—			4			—
Included in accumulated other comprehensive loss		—		—			—			—			—
Included in regulatory liabilities		—		—			—			—			3
Purchases		—		—			—			—			—
Issuances		3		(3	)		—			(3	)		—
Settlements		—		—			4			—			—
Transfers in (out) of level 3		—		—			—			—			—
Balance as of December 31	$	3	$	19		$	—		$	19		$	—

Gains on Level 3 Instruments Included in Income

The breakdown of realized and unrealized gains on level 3 instruments included in income as a component of Other income or Other operation and maintenance expense for the periods below were as follows:

	Year Ended December 31,
	2014		2013
	(millions of dollars)
Total net gains included in income for the period	$	3	$	4
Change in unrealized gains relating to assets still held at reporting date	$	3	$	4

Fair Value of Financial Liabilities Measured on Recurring Basis

	Fair Value Measurements at December 31, 2014
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
LIABILITIES
Debt instruments
Long-term debt (a)	$	5,583	$	—	$	5,136	$	447
Transition Bonds (b)		235		—		235		—
Long-term project funding		28		—		—		28
Total	$	5,846	$	—	$	5,371	$	475

(a) The carrying amount for Long-term debt was $4,807 million as of December 31, 2014.

(b) The carrying amount for Transition Bonds, including amounts due within one year, was $215 million as of December 31, 2014.

	Fair Value Measurements at December 31, 2013
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
LIABILITIES
Debt instruments
Long-term debt (a)	$	4,850	$	—	$	4,289	$	561
Transition Bonds (b)		284		—		284		—
Long-term project funding		12		—		—		12
Total	$	5,146	$	—	$	4,573	$	573

(a) The carrying amount for Long-term debt was $4,456 million as of December 31, 2013.

(b) The carrying amount for Transition Bonds, including amounts due within one year, was $255 million as of December 31, 2013.

Potomac Electric Power Co [Member]

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following tables set forth, by level within the fair value hierarchy, Pepco’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2014 and 2013. As required by the guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Pepco’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

	Fair Value Measurements at December 31, 2014
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
ASSETS
Restricted cash equivalents
Treasury fund	$	5	$	5	$	—	$	—
Executive deferred compensation plan assets
Money market funds and short-term investments		34		13		21		—
Life insurance contracts		41		—		23		18
Total	$	80	$	18	$	44	$	18
LIABILITIES
Executive deferred compensation plan liabilities
Life insurance contracts	$	7	$	—	$	7	$	—
Total	$	7	$	—	$	7	$	—

(a) There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2014.

	Fair Value Measurements at December 31, 2013
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
ASSETS
Restricted cash equivalents
Treasury fund	$	3	$	3	$	—	$	—
Executive deferred compensation plan assets
Money market funds and short-term investments		33		13		20		—
Life insurance contracts		41		—		23		18
Total	$	77	$	16	$	43	$	18
LIABILITIES
Executive deferred compensation plan liabilities
Life insurance contracts	$	7	$	—	$	7	$	—
Total	$	7	$	—	$	7	$	—

(a) There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2013.

Reconciliations of Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Reconciliations of the beginning and ending balances of Pepco’s fair value measurements using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013 are shown below.

	Year Ended December 31, 2014			Year Ended December 31, 2013
	Life Insurance Contracts			Life Insurance Contracts
	(millions of dollars)
Balance as of January 1	$	18		$	18
Total gains (losses) (realized and unrealized):
Included in income		3			4
Included in accumulated other comprehensive loss		—			—
Purchases		—			—
Issuances		(3	)		(3	)
Settlements		—			(1	)
Transfers in (out) of level 3		—			—
Balance as of December 31	$	18		$	18

Gains on Level 3 Instruments Included in Income

The breakdown of realized and unrealized gains on level 3 instruments included in income as a component of Other operation and maintenance expense for the periods below were as follows:

	Year Ended December 31,
	2014		2013
	(millions of dollars)
Total gains included in income for the period	$	3	$	4
Change in unrealized gains relating to assets still held at reporting date	$	3	$	4

Fair Value of Financial Liabilities Measured on Recurring Basis

	Fair Value Measurements at December 31, 2014
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
LIABILITIES
Debt instruments
Long-term debt (a)	$	2,624	$	—	$	2,624	$	—
Project funding		12		—		—		12
Total	$	2,636	$	—	$	2,624	$	12

(a) The carrying amount for Long-term debt was $2,124 million as of December 31, 2014.

	Fair Value Measurements at December 31, 2013
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
LIABILITIES
Debt instruments
Long-term debt (a)	$	2,127	$	—	$	2,127	$	—

(a) The carrying amount for Long-term debt was $1,899 million as of December 31, 2013.

Delmarva Power & Light Co/De [Member]

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following tables set forth, by level within the fair value hierarchy, DPL’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2014 and 2013. As required by the guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. DPL’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

	Fair Value Measurements at December 31, 2014
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
ASSETS
Restricted cash equivalents
Treasury funds	$	5	$	5	$	—	$	—
Executive deferred compensation plan assets
Money market funds		1		1		—		—
Life insurance contracts		1		—		—		1
Total	$	7	$	6	$	—	$	1
LIABILITIES
Derivative instruments (b)
Natural gas (c)	$	4	$	4	$	—	$	—
Executive deferred compensation plan assets
Life insurance contracts		1		—		1		—
Total	$	5	$	4	$	1	$	—

(a) There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2014.

(b) The fair value of derivative liabilities reflect netting by counterparty before the impact of collateral.

(c) Represents natural gas swaps purchased by DPL as part of a natural gas hedging program approved by the DPSC.

	Fair Value Measurements at December 31, 2013
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
ASSETS
Derivative instruments (b)
Natural gas (c)	$	1	$	1	$	—	$	—
Executive deferred compensation plan assets
Money market funds		1		1		—		—
Life insurance contracts		1		—		—		1
Total	$	3	$	2	$	—	$	1
LIABILITIES
Executive deferred compensation plan assets
Life insurance contracts	$	1	$	—	$	1	$	—
Total	$	1	$	—	$	1	$	—

(a) There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2013.

(b) The fair value of derivative assets reflect netting by counterparty before the impact of collateral.

(c) Represents natural gas swaps purchased by DPL as part of a natural gas hedging program approved by the DPSC.

Reconciliations of Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Reconciliations of the beginning and ending balances of DPL’s fair value measurements using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013 are shown below:

	Year Ended December 31, 2014		Year Ended December 31, 2013
	Life Insurance Contracts		Natural Gas			Life Insurance Contracts
	(millions of dollars)
Balance as of January 1	$	1	$	(4	)	$	1
Total gains (losses) (realized and unrealized):
Included in income		—		—			—
Included in accumulated other comprehensive loss		—		—			—
Included in regulatory liabilities		—		—			—
Purchases		—		—			—
Issuances		—		—			—
Settlements		—		4			—
Transfers in (out) of Level 3		—		—			—
Balance as of December 31	$	1	$	—		$	1

Fair Value of Financial Liabilities Measured on Recurring Basis

	Fair Value Measurements at December 31, 2014
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
LIABILITIES
Debt instruments
Long-term debt (a)	$	1,123	$	—	$	1,016	$	107

(a) The carrying amount for Long-term debt was $1,071 million as of December 31, 2014.

	Fair Value Measurements at December 31, 2013
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
LIABILITIES
Debt instruments
Long-term debt (a)	$	960	$	—	$	850	$	110

(a) The carrying amount for Long-term debt was $967 million as of December 31, 2013.

Atlantic City Electric Co [Member]

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following tables set forth by level within the fair value hierarchy ACE’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2014 and 2013. As required by the guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. ACE’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels.

	Fair Value Measurements at December 31, 2014
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
ASSETS
Restricted cash equivalents
Treasury fund	$	24	$	24	$	—	$	—

(a) There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2014.

	Fair Value Measurements at December 31, 2013
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
ASSETS
Restricted cash equivalents
Treasury fund	$	24	$	24	$	—	$	—

(a) There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2013.

Reconciliations of Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

A reconciliation of the beginning and ending balances of ACE’s fair value measurements using significant unobservable inputs (level 3) for the year ended December 31, 2013 is shown below:

	Year Ended December 31, 2013
	Capacity
	(millions of dollars)
Balance as of January 1	$	(3	)
Total gains (losses) (realized and unrealized):
Included in income		—
Included in accumulated other comprehensive loss		—
Included in regulatory liabilities and regulatory assets		3
Purchases		—
Issuances		—
Settlements		—
Transfers in (out) of level 3		—
Balance as of December 31	$	—

Fair Value of Financial Liabilities Measured on Recurring Basis

	Fair Value Measurements at December 31, 2014
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
LIABILITIES
Debt instruments
Long-term debt (a)	$	1,035	$	—	$	903	$	132
Transition Bonds (b)		235		—		235		—
Total	$	1,270	$	—	$	1,138	$	132

(a) The carrying amount for Long-term debt was $903 million as of December 31, 2014.

(b) The carrying amount for Transition Bonds, including amounts due within one year, was $215 million as of December 31, 2014.

	Fair Value Measurements at December 31, 2013
Description	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(millions of dollars)
LIABILITIES
Debt instruments
Long-term debt (a)	$	959	$	—	$	744	$	215
Transition Bonds (b)		285		—		285		—
Total	$	1,244	$	—	$	1,029	$	215

(a) The carrying amount for Long-term debt was $860 million as of December 31, 2013.

(b) The carrying amount for Transition Bonds, including amounts due within one year, was $255 million as of December 31, 2013.