Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2014

(Loss) Income from Discontinued Operations, Net of Income Taxes

PHI’s (loss) income from discontinued operations, net of income taxes, is comprised of the following:

	For the Year Ended December 31,
	2014		2013			2012
	(millions of dollars)
Cross-border energy lease investments	$	—	$	(327	)	$	41
Pepco Energy Services’ retail electric and natural gas supply businesses		—		5			26
(Loss) income from discontinued operations, net of income taxes	$	—	$	(322	)	$	67

Operating Results for Cross-Border Energy Lease Investments

The operating results for the cross-border energy lease investments are as follows:

	For the Year Ended December 31,
	2014		2013			2012
	(millions of dollars)
Operating revenue from PHI’s cross-border energy lease investments	$	—	$	7		$	50
Non-cash charge to reduce carrying value of PHI’s cross-border energy lease investments		—		(373	)		—
Total operating revenue	$	—	$	(366	)	$	50
(Loss) income from operations of discontinued operations, net of income taxes (a)	$	—	$	(325	)	$	32
Net (losses) gains associated with the early termination of the cross-border energy lease investments, net of income taxes (b)		—		(2	)		9
(Loss) income from discontinued operations, net of income taxes	$	—	$	(327	)	$	41

(a) Includes income tax (benefit) expense of approximately zero, $(44) million and $5 million for the years ended December 31, 2014, 2013 and 2012, respectively.

(b) Includes income tax (benefit) expense of approximately zero, $(1) million and $30 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Operating Results for Retail Electric and Natural Gas Supply Businesses

The operating results for the retail electric and natural gas supply businesses of Pepco Energy Services are as follows:

	For the Year Ended December 31,
	2014		2013		2012
	(millions of dollars)
Operating revenue	$	—	$	84	$	415
Income from operations of discontinued operations, net of income taxes	$	—	$	4	$	26
Net gains associated with accelerated disposition of retail electric and natural gas contracts, net of income taxes				1		—
Income from discontinued operations, net of income taxes (a)	$	—	$	5	$	26

(a) Includes income tax expense of approximately zero, $3 million and $18 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Discontinued Operations [Member]

Derivative Gain (Loss) for Retail Electric and Natural Gas Supply Businesses

For the years ended December 31, 2014, 2013, and 2012, the amount of the derivative gain (loss) for the retail electric and natural gas supply businesses of Pepco Energy Services recognized in Income (loss) from discontinued operations, net of income taxes is provided in the table below:

	For the Year Ended December 31,
	2014		2013		2012
	(millions of dollars)
Reclassification of mark-to-market to realized on settlement of contracts	$	—	$	10	$	27
Unrealized mark-to-market loss		—		—		(3	)
Total net gain	$	—	$	10	$	24