Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2015

Fair Values of Derivative Instruments by Balance Sheet Location

The tables below identify the balance sheet location and fair values of derivative instruments as of March 31, 2015 and December 31, 2014:

	As of March 31, 2015
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)	$	—	$	3		$	3		$	—	$	3
Derivative liabilities (current liabilities)		—		(2	)		(2	)		2		—
Net Derivative asset	$	—	$	1		$	1		$	2	$	3
	As of December 31, 2014
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)	$	—	$	3		$	3		$	—	$	3
Derivative liabilities (current liabilities)		—		(4	)		(4	)		4		—
Net Derivative (liability) asset	$	—	$	(1	)	$	(1	)	$	4	$	3

Schedule of Cash Collateral Offset Against Derivative Positions

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

	March 31, 2015		December 31, 2014
	(millions of dollars)
Cash collateral pledged to counterparties with the right to reclaim (a)	$	2	$	4

(a) Includes cash deposits on commodity brokerage accounts.

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:

Contracts	As of March 31, 2015				Maximum Term
	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	209 months
Total	$	9	$	1

Contracts	As of March 31, 2014				Maximum Term
	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	221 months
Total	$	9	$	1

Net Unrealized and Realized Derivative Gains (Losses) Deferred as Regulatory Liabilities and Regulatory Assets

The following table shows 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 income (through Fuel and purchased energy expense) and that were also deferred as Regulatory liabilities and Regulatory assets for the three months ended March 31, 2015 and 2014:

	Three Months Ended March 31,
	2015			2014
	(millions of dollars)
Net unrealized (loss) gain arising during the period	$	(1	)	$	2
Net realized (loss) gain recognized during the period		(3	)		2

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

As of March 31, 2015 and December 31, 2014, the quantities and positions of DPL’s net outstanding natural gas commodity forward contracts that did not qualify for hedge accounting were:

	March 31, 2015			December 31, 2014
Commodity	Quantity		Net Position	Quantity		Net Position
DPL – Natural gas (One Million British Thermal Units)		2,997,500	Long		3,892,500	Long

Delmarva Power & Light Co/De [Member]

Fair Values of Derivative Instruments by Balance Sheet Location

The tables below identify the balance sheet location and fair values of derivative instruments as of March 31, 2015 and December 31, 2014:

	As of March 31, 2015
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)	$	—	$	(2	)	$	(2	)	$	2	$	—

	As of December 31, 2014
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	$	—

Schedule of Cash Collateral Offset Against Derivative Positions

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

	March 31, 2015		December 31, 2014
	(millions of dollars)
Cash collateral pledged to counterparties with the right to reclaim (a)	$	2	$	4

(a) Includes cash deposits on commodity brokerage accounts.

Net Unrealized and Realized Derivative Gains (Losses) Deferred as Regulatory Liabilities and Regulatory Assets

The following table shows the net unrealized and net realized derivative gains and losses arising during the period associated with these derivatives that were recognized in the statements of income (through Purchased energy and Gas purchased expense) and that were also deferred as Regulatory liabilities and Regulatory assets, respectively, for the three months ended March 31, 2015 and 2014:

	Three Months Ended March 31,
	2015			2014
	(millions of dollars)
Net unrealized (loss) gain arising during the period	$	(1	)	$	2
Net realized (loss) gain recognized during the period		(3	)		2

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

As of March 31, 2015 and December 31, 2014, the quantities and positions of DPL’s net outstanding natural gas commodity forward contracts that did not qualify for hedge accounting were:

	March 31, 2015				December 31, 2014
Commodity	Quantity		Net Position		Quantity		Net Position
Natural gas (One Million British Thermal Units)		2,997,500		Long		3,892,500		Long