Regulatory Matters (Tables)

3 Months Ended

Mar. 31, 2016



									Successor
March 31, 2016	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE

Regulatory liabilities
Other postretirement benefits	$	93	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Nuclear decommissioning	2,599		2,182		417		—		—		—		—		—
Removal costs	1,669		1,334		—		187		148		21		127		—
Deferred rent ^(j)	42								42		—		—		—
Energy efficiency and demand response programs	122		78		43		—		1		—		—		1
DLC program costs	9		—		9		—		—		—		—		—
Electric distribution tax repairs	89		—		89		—		—		—		—		—
Gas distribution tax repairs	25		—		25		—		—		—		—		—
Energy and transmission programs ^{(f)(g)(k)(l)(p)(q)}	187		43		69		15		60		25		25		10
Other	55		2		3		10		41		9		14		16
Total regulatory liabilities	4,890		3,639		655		212		292		55		166		27
Less: current portion	512		150		134		61		106		26		57		22
Total non-current regulatory liabilities	$	4,378	$	3,489	$	521	$	151	$	186	$	29	$	109	$	5



									Predecessor
December 31, 2015	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE

Regulatory assets
Pension and other postretirement benefits	$	3,156	$	—	$	—	$	—	$	910	$	—	$	—	$	—
Deferred income taxes	1,616		64		1,473		79		214		137		36		41
AMI programs ^(r)	399		140		63		196		267		180		87		—
Under-recovered distribution service costs ^(b)	189		189		—		—		—
Debt costs	47		46		1		8		36		19		10		7
Fair value of long-term debt ^(d)	162		—		—		—		—		—		—		—
Severance	9		—		—		9		—		—		—		—
Asset retirement obligations	108		67		22		19		1		1		—		—
MGP remediation costs	286		255		30		1		—		—		—		—
Under-recovered uncollectible accounts	52		52		—		—		—		—		—		—
Renewable energy	247		247		—		—		—		—		—		—
Energy and transmission programs ^{(f)(g)(k)(m)(n)(o)}	84		43		1		40		33		9		11		13
Deferred storm costs	2		—		—		2		43		19		6		18
Electric generation-related regulatory asset	20		—		—		20		—		—		—		—
Rate stabilization deferral	87		—		—		87		14		10		4		—
Energy efficiency and demand response programs	279		—		1		278		401		289		111		1
Merger integration costs	6				—		6		—		—		—		—
Conservation voltage reduction	3		—		—		3		—		—		—		—
Under-recovered revenue decoupling ^(h)	30		—		—		30		—		—		—		—
COPCO acquisition adjustment	—		—		—		—		—		—		13		—
Workers compensation and long-term disability costs	—		—		—		—		31		31		—		—
Vacation accrual	6		—		6		—		23		—		14		9
Securitized stranded costs	—		—		—		—		202		—		—		202
CAP arrearage	7		—		7		—		—		—		—		—
Removal costs	—		—		—		—		369		92		69		208
Other	29		10		13		3		38		14		10		13
Total regulatory assets	6,824		1,113		1,617		781		2,582		801		371		512
Less: current portion	759		218		34		267		305		140		72		98
Total non-current regulatory assets	$	6,065	$	895	$	1,583	$	514	$	2,277	$	661	$	299	$	414



									Predecessor
December 31, 2015	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Regulatory liabilities
Other postretirement benefits	$	94	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Nuclear decommissioning	2,577		2,172		405		—		—		—		—		—
Removal costs	1,527		1,332		—		195		150		21		129		—
Energy efficiency and demand response programs	92		52		40		—		1		—		—		1
DLC program costs	9		—		9		—		—		—		—		—
Electric distribution tax repairs	95		—		95		—		—		—		—		—
Gas distribution tax repairs	28		—		28		—		—		—		—		—
Energy and transmission programs ^{(f)(g)(k)(l)(p)(q)}	131		53		60		18		27		16		19		8
Over-recovered revenue decoupling^(h)	1		—		—		1		—		—		—		—
Other	16		5		2		8		35		7		12		16
Total regulatory liabilities	4,570		3,614		639		222		213		44		160		25
Less: current portion	369		155		112		38		66		15		49		18
Total non-current regulatory liabilities	$	4,201	$	3,459	$	527	$	184	$	147	$	29	$	111	$	7

______

(a)

As of March 31, 2016, the pension and other postretirement benefits regulatory asset at Exelon includes regulatory assets of $1,125 million established at the date of the PHI Merger related to unrecognized costs that are probable of regulatory recovery. The regulatory assets are amortized over periods from 3 to 15 years, depending on the underlying component. Pepco, DPL and ACE are currently recovering these costs through base rates. Pepco, DPL and ACE are not earning a return on the recovery of these costs in base rates.

(b)

As of March 31, 2016, ComEd’s regulatory asset of $198 million was comprised of $156 million for the 2014 - 2016 annual reconciliations and $42 million related to significant one-time events including $31 million of deferred storm costs, $9 million of Constellation merger and integration related costs and $2 million of smart meter related costs. As of December 31, 2015, ComEd’s regulatory asset of $189 million was comprised of $142 million for the 2014 and 2015 annual reconciliations and $47 million related to significant one-time events, including $36 million of deferred storm costs and $11 million of Constellation merger and integration related costs. See Note 4— Merger, Acquisitions, and Dispositions of the Exelon 2015 Form 10-K for further information.


(c)	Includes at Exelon and PHI the regulatory asset recorded at PHI for debt costs that are recoverable through the ratemaking process at Pepco, DPL, and ACE which were eliminated at Exelon and PHI as part of acquisition accounting.


(d)	Includes the unamortized regulatory assets recorded for the difference between carrying value and fair value of long-term debt of BGE as of the Constellation merger date and at Exelon and PHI for the difference between carrying value and fair value of long-term debt of Pepco, DPL and ACE as of the PHI Merger date.


(e)	Represents the regulatory asset recorded at Exelon and PHI offsetting the fair value adjustments related to Pepco's, DPL's and ACE's electricity and gas energy supply contracts recorded at PHI as of the PHI Merger date. Pepco, DPL and ACE are allowed full recovery of the costs of these contracts through their respective rate making processes.

(f)

As of March 31, 2016, ComEd’s regulatory asset of $56 million included $18 million related to under-recovered energy costs, $31 million associated with transmission costs recoverable through its FERC approved formulate rate, and $7 million of Constellation merger and integration costs to be recovered upon FERC approval. As of March 31, 2016, ComEd’s regulatory liability of $43 million included $17 million related to over-recovered energy costs and $26 million associated with revenues received for renewable energy requirements. As of December 31, 2015, ComEd’s regulatory asset of $43 million included $5 million related to under-recovered energy costs, $31 million associated with transmission costs recoverable through its FERC approved formulate rate, and $7 million of Constellation merger and integration costs to be recovered upon FERC approval. As of December 31, 2015, ComEd’s regulatory liability of $53 million included $29 million related to over-recovered energy costs and $24 million associated with revenues received for renewable energy requirements.

(g)

As of March 31, 2016, BGE's regulatory asset of $38 million included $5 million of costs associated with transmission costs recoverable through its FERC approved formula rate and $33 million related to under-recovered electric energy costs. As of March 31, 2016, BGE's regulatory liability of $15 million related to $2 million of over-recovered transmission costs and $14 million of over-recovered natural gas costs, offset by $1 million of abandonment costs to be recovered upon FERC approval. As of December 31, 2015, BGE’s regulatory asset of $40 million included $12 million of costs associated with transmission costs recoverable through its FERC approved formula rate and $28 million related to under-recovered electric energy costs. As of December 31, 2015, BGE’s regulatory liability of $18 million related to $14 million of over-recovered transmission costs and $5 million of over-recovered natural gas costs, offset by $1 million of abandonment costs to be recovered upon FERC approval.

(h)

Represents the electric and gas distribution costs recoverable from customers under BGE’s decoupling mechanism. As of March 31, 2016, BGE had a regulatory asset of $31 million related to under-recovered electric revenue decoupling and a regulatory asset of $5 million related to under-recovered natural gas revenue decoupling. As of December 31, 2015, BGE had a regulatory asset of $30 million related to under-recovered electric revenue decoupling and a regulatory liability of $1 million related to over-recovered natural gas revenue decoupling.


(i)	Represents the regulatory asset recorded at Exelon and PHI for the difference between the carrying value and fair value of alternative energy credits at Pepco, DPL and ACE recorded at Exelon and PHI that are recoverable through the rate making process.


(j)	Represents the regulatory liability recorded at Exelon and PHI for deferred rent related to a lease that is recoverable through the ratemaking process at Pepco, DPL and ACE which was eliminated at PHI as part of acquisition accounting.

(k)

As of March 31, 2016, PECO's regulatory liability of $69 million included $36 million related to the DSP program, $26 million related to the over-recovered natural gas costs under the PGC, $3 million related to over-recovered electric transmission costs and $4 million related to over-recovered non-bypassable transmission service charges. As of December 31, 2015, PECO's regulatory asset of $1 million related to under-recovered non-bypassable transmission service charges. As of December 31, 2015, PECO's regulatory liability of $60 million included $35 million related to the DSP program, $22 million related to the over-recovered natural gas costs under the PGC and $3 million related to the over-recovered electric transmission costs.

(l)

As of March 31, 2016, DPL's regulatory liability of $25 million included $6 million related to over-recovered natural gas costs under the GCR mechanism, $7 million of over-recovered electric energy costs, and $12 million of over-recovered transmission costs. As of December 31, 2015, DPL's regulatory liability of $19 million included $4 million related to the over-recovered natural gas costs under the GCR mechanism, $4 million of over-recovered electric energy costs, and $11 million of over-recovered transmission costs.

(m)

As of March 31, 2016, Pepco's regulatory asset of $5 million included $4 million of transmission costs recoverable through its FERC approved formula rate and $1 million of under-recovered electric energy costs. As of December 31, 2015, Pepco's regulatory asset of $9 million included $5 million of transmission costs recoverable through its FERC approved formula rate and $4 million of recoverable abandonment costs.


(n)	As of March 31, 2016, DPL's regulatory asset of $6 million related to transmission costs recoverable through its FERC approved formula rate. As of December 31, 2015, DPL's regulatory asset of $11 million included $7 million of transmission costs recoverable through its FERC approved formula rate, $3 million of recoverable abandonment costs, and $1 million of under-recovered electric energy costs.

(o)

As of March 31, 2016, ACE's regulatory asset of $13 million included $1 million of transmission costs recoverable through its FERC approved formula rate and $12 million of under-recovered electric energy costs. As of December 31, 2015, ACE's regulatory asset of $13 million included $2 million of transmission costs recoverable through its FERC approved formula rate and $11 million of under-recovered electric energy costs.


(p)	As of March 31, 2016, Pepco's regulatory liability of $25 million included $15 million of over-recovered transmission costs and $10 million of over-recovered electric energy costs. As of December 31, 2015, Pepco's regulatory liability of $16 million included $14 million of over-recovered transmission costs and $2 million of over-recovered electric energy costs.


(q)	As of March 31, 2016, ACE's regulatory liability of $10 million related to over-recovered transmission costs. As of December 31, 2015, ACE's regulatory liability of $8 million related to over-recovered transmission costs.


(r)	Represents AMI costs associated with the installation of smart meters and the early retirement of legacy meters throughout Pepco’s and DPL’s service territories that are recoverable from customers. AMI has not been approved by the NJBPU for ACE in New Jersey. PHI generally is deferring carrying charges on these regulatory assets.

Schedule of Regulatory Liabilities



									Successor
March 31, 2016	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE

Regulatory liabilities
Other postretirement benefits	$	93	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Nuclear decommissioning	2,599		2,182		417		—		—		—		—		—
Removal costs	1,669		1,334		—		187		148		21		127		—
Deferred rent ^(j)	42								42		—		—		—
Energy efficiency and demand response programs	122		78		43		—		1		—		—		1
DLC program costs	9		—		9		—		—		—		—		—
Electric distribution tax repairs	89		—		89		—		—		—		—		—
Gas distribution tax repairs	25		—		25		—		—		—		—		—
Energy and transmission programs ^{(f)(g)(k)(l)(p)(q)}	187		43		69		15		60		25		25		10
Other	55		2		3		10		41		9		14		16
Total regulatory liabilities	4,890		3,639		655		212		292		55		166		27
Less: current portion	512		150		134		61		106		26		57		22
Total non-current regulatory liabilities	$	4,378	$	3,489	$	521	$	151	$	186	$	29	$	109	$	5



									Predecessor
December 31, 2015	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE

Regulatory assets
Pension and other postretirement benefits	$	3,156	$	—	$	—	$	—	$	910	$	—	$	—	$	—
Deferred income taxes	1,616		64		1,473		79		214		137		36		41
AMI programs ^(r)	399		140		63		196		267		180		87		—
Under-recovered distribution service costs ^(b)	189		189		—		—		—
Debt costs	47		46		1		8		36		19		10		7
Fair value of long-term debt ^(d)	162		—		—		—		—		—		—		—
Severance	9		—		—		9		—		—		—		—
Asset retirement obligations	108		67		22		19		1		1		—		—
MGP remediation costs	286		255		30		1		—		—		—		—
Under-recovered uncollectible accounts	52		52		—		—		—		—		—		—
Renewable energy	247		247		—		—		—		—		—		—
Energy and transmission programs ^{(f)(g)(k)(m)(n)(o)}	84		43		1		40		33		9		11		13
Deferred storm costs	2		—		—		2		43		19		6		18
Electric generation-related regulatory asset	20		—		—		20		—		—		—		—
Rate stabilization deferral	87		—		—		87		14		10		4		—
Energy efficiency and demand response programs	279		—		1		278		401		289		111		1
Merger integration costs	6				—		6		—		—		—		—
Conservation voltage reduction	3		—		—		3		—		—		—		—
Under-recovered revenue decoupling ^(h)	30		—		—		30		—		—		—		—
COPCO acquisition adjustment	—		—		—		—		—		—		13		—
Workers compensation and long-term disability costs	—		—		—		—		31		31		—		—
Vacation accrual	6		—		6		—		23		—		14		9
Securitized stranded costs	—		—		—		—		202		—		—		202
CAP arrearage	7		—		7		—		—		—		—		—
Removal costs	—		—		—		—		369		92		69		208
Other	29		10		13		3		38		14		10		13
Total regulatory assets	6,824		1,113		1,617		781		2,582		801		371		512
Less: current portion	759		218		34		267		305		140		72		98
Total non-current regulatory assets	$	6,065	$	895	$	1,583	$	514	$	2,277	$	661	$	299	$	414



									Predecessor
December 31, 2015	Exelon		ComEd		PECO		BGE		PHI		Pepco		DPL		ACE
Regulatory liabilities
Other postretirement benefits	$	94	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Nuclear decommissioning	2,577		2,172		405		—		—		—		—		—
Removal costs	1,527		1,332		—		195		150		21		129		—
Energy efficiency and demand response programs	92		52		40		—		1		—		—		1
DLC program costs	9		—		9		—		—		—		—		—
Electric distribution tax repairs	95		—		95		—		—		—		—		—
Gas distribution tax repairs	28		—		28		—		—		—		—		—
Energy and transmission programs ^{(f)(g)(k)(l)(p)(q)}	131		53		60		18		27		16		19		8
Over-recovered revenue decoupling^(h)	1		—		—		1		—		—		—		—
Other	16		5		2		8		35		7		12		16
Total regulatory liabilities	4,570		3,614		639		222		213		44		160		25
Less: current portion	369		155		112		38		66		15		49		18
Total non-current regulatory liabilities	$	4,201	$	3,459	$	527	$	184	$	147	$	29	$	111	$	7

______

(a)

(b)


(c)	Includes at Exelon and PHI the regulatory asset recorded at PHI for debt costs that are recoverable through the ratemaking process at Pepco, DPL, and ACE which were eliminated at Exelon and PHI as part of acquisition accounting.


(d)	Includes the unamortized regulatory assets recorded for the difference between carrying value and fair value of long-term debt of BGE as of the Constellation merger date and at Exelon and PHI for the difference between carrying value and fair value of long-term debt of Pepco, DPL and ACE as of the PHI Merger date.


(e)	Represents the regulatory asset recorded at Exelon and PHI offsetting the fair value adjustments related to Pepco's, DPL's and ACE's electricity and gas energy supply contracts recorded at PHI as of the PHI Merger date. Pepco, DPL and ACE are allowed full recovery of the costs of these contracts through their respective rate making processes.

(f)

(g)

(h)


(i)	Represents the regulatory asset recorded at Exelon and PHI for the difference between the carrying value and fair value of alternative energy credits at Pepco, DPL and ACE recorded at Exelon and PHI that are recoverable through the rate making process.


(j)	Represents the regulatory liability recorded at Exelon and PHI for deferred rent related to a lease that is recoverable through the ratemaking process at Pepco, DPL and ACE which was eliminated at PHI as part of acquisition accounting.

(k)

(l)

(m)


(n)	As of March 31, 2016, DPL's regulatory asset of $6 million related to transmission costs recoverable through its FERC approved formula rate. As of December 31, 2015, DPL's regulatory asset of $11 million included $7 million of transmission costs recoverable through its FERC approved formula rate, $3 million of recoverable abandonment costs, and $1 million of under-recovered electric energy costs.

(o)


(p)	As of March 31, 2016, Pepco's regulatory liability of $25 million included $15 million of over-recovered transmission costs and $10 million of over-recovered electric energy costs. As of December 31, 2015, Pepco's regulatory liability of $16 million included $14 million of over-recovered transmission costs and $2 million of over-recovered electric energy costs.


(q)	As of March 31, 2016, ACE's regulatory liability of $10 million related to over-recovered transmission costs. As of December 31, 2015, ACE's regulatory liability of $8 million related to over-recovered transmission costs.


(r)	Represents AMI costs associated with the installation of smart meters and the early retirement of legacy meters throughout Pepco’s and DPL’s service territories that are recoverable from customers. AMI has not been approved by the NJBPU for ACE in New Jersey. PHI generally is deferring carrying charges on these regulatory assets.

Purchase Of Receivables



													Predecessor
As of December 31, 2015	Exelon			ComEd			PECO			BGE			PHI			Pepco			DPL		ACE
Purchased receivables^(b)	$	229		$	103		$	67		$	59		$	100		$	70		$	11	$	19
Allowance for uncollectible accounts^(a)	(31		)	(16		)	(7		)	(8		)	(6		)	(4		)	—		(2		)
Purchased receivables, net	$	198		$	87		$	60		$	51		$	94		$	66		$	11	$	17

_______


(a)	For ComEd, BGE, Pepco, DPL and ACE, reflects the incremental allowance for uncollectible accounts recorded, which is in addition to the purchase discount. For ComEd, the incremental uncollectible accounts expense is recovered through its Purchase of Receivables with Consolidated Billing tariff.


(b)	PECO’s gas POR program became effective on January 1, 2012 and included a 1% discount on purchased receivables in order to recover the implementation costs of the program. The implementation costs were fully recovered and the 1% discount was reset to 0%, effective July 2015.


(c)	Pepco's electric POR program in Maryland included a discount on purchased receivables ranging from 0% to 2% depending on customer class, and Pepco's electric POR program in the District of Columbia included a discount on purchased receivables ranging from 0% to 6% depending on customer class.

Public Utilities General Disclosures [Table Text Block]



							Successor
As of March 31, 2016	Exelon		ComEd		BGE		PHI		Pepco		DPL		ACE
Regulatory Assets^(a)	$	60	$	31	$	17	$	12	$	4	$	7	$	1



							Predecessor
As of December 31, 2015	Exelon		ComEd		BGE		PHI		Pepco		DPL		ACE
Regulatory Assets^(a)(b)	$	43	$	31	$	12	$	14	$	5	$	7	$	2

_____


(a)	The regulatory assets represent a component of the costs included within the energy and transmission regulatory programs. Refer to Regulatory Assets and Liabilities table for additional information.


(b)	The Exelon consolidated amounts do not include the regulatory assets of PHI, Pepco, DPL, and ACE at December 31, 2015.

On April 13, 2016, ComEd filed its annual transmission formula rate update based upon the FERC approved formula with the FERC. The filing establishes the revenue requirement used to set rates that will take effect in June 2016, subject to review by the FERC and other parties, which is due by fourth quarter 2016. ComEd's 2016 annual update includes a total increase to the revenue requirement of $94 million, reflecting an increase of $90 million for the initial revenue requirement and an increase of $4 million related to the annual reconciliation. The revenue requirement provides for a weighted average debt and equity return on transmission rate base of 8.47%, inclusive of an allowed ROE of 11.50%, a decrease from the 8.61% average debt and equity return previously authorized.

On April 27, 2016, BGE filed its annual transmission formula rate update based upon the FERC approved formula with the FERC. The filing establishes the revenue requirement used to set rates that will take effect in June 2016, subject to review by the FERC and other parties, which is due by third quarter 2016. BGE's 2016 annual update includes a total increase to the revenue requirement of $15 million, reflecting an increase of $12 million for the initial revenue requirement and a decrease of $3 million related to the annual reconciliation. This increase excludes the $13 million increase in revenue requirement associated with dedicated facilities charges. The revenue requirement provides for a weighted average debt and equity return on transmission rate base of 8.09%, inclusive of an allowed ROE of 10.50% a decrease from the 8.46% average debt and equity return previously authorized.

For additional information regarding ComEd and BGE's transmission formula rate filings see Note 3 — Regulatory Matters of the Exelon 2015 Form 10-K for additional information.



							Successor
As of March 31, 2016	Exelon		ComEd		BGE		PHI		Pepco		DPL		ACE
Regulatory Assets^(a)	$	60	$	31	$	17	$	12	$	4	$	7	$	1



							Predecessor
As of December 31, 2015	Exelon		ComEd		BGE		PHI		Pepco		DPL		ACE
Regulatory Assets^(a)(b)	$	43	$	31	$	12	$	14	$	5	$	7	$	2

_____


(a)	The regulatory assets represent a component of the costs included within the energy and transmission regulatory programs. Refer to Regulatory Assets and Liabilities table for additional information.