Income Taxes (Tables)

3 Months Ended

Mar. 31, 2015

A reconciliation of PHI’s consolidated effective income tax rates from continuing operations is as follows:


	Three Months Ended March 31,
	2015					2014
	*(millions of dollars)*
Income tax at Federal statutory rate	$	29		35.0	%	$	42		35.0	%
Increases (decreases) resulting from:
State income taxes, net of Federal effect		6		7.2	%		7		5.8	%
Asset removal costs		(3	)	(3.6	)%		(2	)	(1.7	)%
Change in estimates and interest related to uncertain and effectively settled tax positions		—		—			(1	)	(0.8	)%
Energy efficiency-related tax deductions		(4	)	(4.8	)%		—		—
Merger-related costs		2		2.4	%		—		—
Other, net		—		(0.1	)%		—		(0.3	)%

Consolidated income tax expense	$	30		36.1	%	$	46		38.0	%

A reconciliation of DPL’s effective income tax rates is as follows:


	Three Months Ended March 31,
	2015					2014
	*(millions of dollars)*
Income tax at Federal statutory rate	$	19		35.0	%	$	22	35.0	%
Increases (decreases) resulting from:

State income taxes, net of Federal effect		3		5.7	%		3	4.8	%

Other, net		(1	)	(1.1	)%		—	0.5	%


Income tax expense	$	21		39.6	%	$	25	40.3	%

A reconciliation of ACE’s consolidated effective income tax rates is as follows:


	Three Months Ended March 31,
	2015				2014
	*(millions of dollars)*
Income tax at Federal statutory rate	$	2	35.0	%	$	6	35.0	%
Increases (decreases) resulting from:
Other, net		—	(1.7	)%		—	2.5	%

Consolidated income tax expense	$	2	33.3	%	$	6	37.5	%

A reconciliation of Pepco’s effective income tax rates is as follows:


	Three Months Ended March 31,
	2015					2014
	*(millions of dollars)*
Income tax at Federal statutory rate	$	13		35.0	%	$	17		35.0	%
Increases (decreases) resulting from:
State income taxes, net of Federal effect		2		5.3	%		3		6.3	%
Asset removal costs		(3	)	(7.9	)%		(2	)	(4.2	)%
Change in estimates and interest related to uncertain and effectively settled tax positions		—		—			(1	)	(2.1	)%
Other, net		—		(0.8	)%		(1	)	(1.7	)%

Income tax expense	$	12		31.6	%	$	16		33.3	%