Fair Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Text Block]

The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis during the year endedDecember 31, 2016 and 2015:

																			Successor
	Generation															ComEd			PHI (c)						Exelon
For the year ended December 31, 2016	NDT Fund Investments			Pledged Assets for Zion Station Decommissioning			Mark-to-Market Derivatives				Other Investments		Total Generation			Mark-to-Market Derivatives (a)			Life Insurance Contracts			Eliminated in Consolidation			Total
Balance as of January 1, 2016	$	670		$	22		$	1,051			$	33	$	1,776		$	(247	)	$	—		$	—		$	1,529
Included due to merger	—			—			—				—		—			—			20			—			20
Total realized / unrealized gains (losses)
Included in net income	7			—			(568		)	(b)	1		(560		)	—			3			—			(557		)
Included in noncurrent payables to affiliates	16			—			—				—		16			—			—			(16		)	—
Included in regulatory assets/liabilities	—			—			—				—		—			(11		)	—			16			5
Change in collateral	—			—			(141		)		—		(141		)	—			—			—			(141		)
Purchases, sales, issuances and settlements																			—
Purchases	143			2			342			(d)	7		494			—			—			—			494
Sales	(1		)	(5		)	(9		)		—		(15		)	—			—			—			(15		)
Issuances	—			—			—				—		—			—			(3		)	—			(3		)
Settlements	(144		)	—			—				—		(144		)	—			—			—			(144		)
Transfers into Level 3	—			—			1				1		2			—			—			—			2
Transfers out of Level 3	(14		)	—			(183		)		—		(197		)	—			—			—			(197		)
Balance as of December 31, 2016	$	677		$	19		$	493			$	42	$	1,231		$	(258	)	$	20		$	—		$	993
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of December 31, 2016	$	5		$	—		$	109			$	—	$	114		$	—		$	2		$	—		$	116

	Generation																ComEd						Exelon
For the year ended December 31, 2015	NDT Fund Investments			Pledged Assets for Zion Station Decommissioning			Mark-to-Market Derivatives (d)				Other Investments			Total Generation			Mark-to-Market Derivatives (a)			Eliminated in Consolidation			Total
Balance as of January 1, 2015	$	605		$	50		$	1,050			$	3		$	1,708		$	(207	)	$	—		$	1,501
Total realized / unrealized gains (losses)
Included in net income	4			—			22			(b)	1			27			—			—			27
Included in noncurrent payables to affiliates	18			—			—				—			18			—			(18		)	—
Included in payable for Zion Station decommissioning	—			(2		)	—				—			(2		)	—			—			(2		)
Included in regulatory assets/liabilities	—			—			—				—			—			(40		)	18			(22		)
Change in collateral	—			—			29				—			29			—			—			29
Purchases, sales, issuances and settlements
Purchases	146			2			144				30			322			—			—			322
Sales	(8		)	(28		)	(25		)		—			(61		)	—			—			(61		)
Settlements	(95		)	—			—				—			(95		)	—			—			(95		)
Transfers into Level 3	4			—			80				—			84			—			—			84
Transfers out of Level 3	(4		)	—			(249		)		(1		)	(254		)	—			—			(254		)
Balance as of December 31, 2015	$	670		$	22		$	1,051			$	33		$	1,776		$	(247	)	$	—		$	1,529
The amount of total gains included in income attributed to the change in unrealized gains (losses) related to assets and liabilities held as of December 31, 2015	$	2		$	—		$	856			$	—		$	858		$	—		$	—		$	858

_________________________

(a) Includes $29 million of decreases in fair value and an increase for realized losses due to settlements of $18 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the year ended December 31, 2016. Includes $55 million of decreases in fair value and a reduction for realized losses due to settlements of $(15) million for the year ended December 31, 2015.

(b) Includes a reduction for the reclassification of $677 million and $834 million of realized gains due to the settlement of derivative contracts for the years ended December 31, 2016 and 2015, respectively.

(c) Successor period represents activity from March 24, 2016 to December 31, 2016. See tables below for PHI's predecessor periods, as well as activity for Pepco and DPL for the year ended December 31, 2016.

(d) Includes $168 million of fair value from contracts acquired as a result of portfolio acquisitions.

	Successor			Predecessor
	March 24, 2016 to December 31, 2016			January 1, 2016 to March 23, 2016					December 31, 2015
PHI	Life Insurance Contracts			Preferred Stock			Life Insurance Contracts		Preferred Stock		Life Insurance Contracts
Beginning Balance	$	20		$	18		$	19	$	3	$	19
Total realized / unrealized gains (losses)
Included in net income	3			(18		)	1		15		5
Purchases, sales, issuances and settlements
Issuances	(3		)	—			—		—		(3		)
Settlements	—			—			—		—		(2		)
Ending Balance	$	20		$	—		$	20	$	18	$	19
The amount of total gains included in income attributed to the change in unrealized gains (losses) related to assets and liabilities for the period	$	2		$	—		$	1	$	15	$	3

	December 31, 2016					December 31, 2015
	Pepco			DPL		Pepco			DPL
	Life Insurance Contracts			Life Insurance Contracts		Life Insurance Contracts			Life Insurance Contracts
Balance as of December 31	$	19		$	—	$	18		$	1
Total realized / unrealized gains (losses)
Included in net income	3			—		5			—
Purchases, sales, issuances and settlements
Issuances	(3		)	—		(3		)	—
Settlements	—			—		(1		)	(1		)
Balance as of December 31	$	19		$	—	$	19		$	—
The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities for the period	$	3		$	—	$	3		$	—

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

ComEd, PECO and BGE

The following tables present assets and liabilities measured and recorded at fair value on ComEd's, PECO's and BGE's Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of December 31, 2016 and 2015:

	ComEd											PECO										BGE
As of December 31, 2016	Level 1		Level 2			Level 3			Total			Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
Assets
Cash equivalents (a)	$	20	$	—		$	—		$	20		$	45	$	—		$	—	$	45		$	36	$	—		$	—	$	36
Rabbi trust investments
Mutual funds	—		—			—			—			7		—			—		7			4		—			—		4
Life insurance contracts	—		—			—			—			—		10			—		10			—		—			—		—
Rabbi trust investments subtotal	—		—			—			—			7		10			—		17			4		—			—		4
Total assets	20		—			—			20			52		10			—		62			40		—			—		40
Liabilities
Deferred compensation obligation	—		(8		)	—			(8		)	—		(11		)	—		(11		)	—		(4		)	—		(4		)
Mark-to-market derivative liabilities (b)	—		—			(258		)	(258		)	—		—			—		—			—		—			—		—
Total liabilities	—		(8		)	(258		)	(266		)	—		(11		)	—		(11		)	—		(4		)	—		(4		)
Total net assets (liabilities)	$	20	$	(8	)	$	(258	)	$	(246	)	$	52	$	(1	)	$	—	$	51		$	40	$	(4	)	$	—	$	36

	ComEd											PECO										BGE
As of December 31, 2015	Level 1		Level 2			Level 3			Total			Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
Assets
Cash equivalents (a)	$	29	$	—		$	—		$	29		$	271	$	—		$	—	$	271		$	25	$	—		$	—	$	25
Rabbi trust investments
Mutual funds	—		—			—			—			8		—			—		8			4		—			—		4
Life insurance contracts	—		—			—			—			—		12			—		12			—		—			—		—
Rabbi trust investments subtotal	—		—			—			—			8		12			—		20			4		—			—		4
Total assets	29		—			—			29			279		12			—		291			29		—			—		29
Liabilities
Deferred compensation obligation	—		(8		)	—			(8		)	—		(12		)	—		(12		)	—		(4		)	—		(4		)
Mark-to-market derivative liabilities (b)	—		—			(247		)	(247		)	—		—			—		—			—		—			—		—
Total liabilities	—		(8		)	(247		)	(255		)	—		(12		)	—		(12		)	—		(4		)	—		(4		)
Total net assets (liabilities)	$	29	$	(8	)	$	(247	)	$	(226	)	$	279	$	—		$	—	$	279		$	29	$	(4	)	$	—	$	25

_________________________

(a) ComEd excludes cash of $36 million and $38 million at December 31, 2016 and 2015 and restricted cash of $2 million and $2 million at December 31, 2016 and 2015.  PECO excludes cash of $22 million and $27 million at December 31, 2016 and 2015.  BGE excludes cash of $13 million and $6 million at December 31, 2016 and 2015 and restricted cash of less than $1 million and $2 million at December 31, 2016 and 2015 and includes long term restricted cash of $2 million at December 31, 2016, which is reported in other deferred debits on the balance sheet.

(b) The Level 3 balance consists of the current and noncurrent liability of $19 million and $239 million, respectively, at December 31, 2016, and $23 million and $224 million, respectively, at December 31, 2015, related to floating-to-fixed energy swap contracts with unaffiliated suppliers.

The following tables present assets and liabilities measured and recorded at fair value on Exelon's and Generation’s Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of December 31, 2016 and 2015:

	Generation										Exelon
As of December 31, 2016	Level 1		Level 2		Level 3		Not subject to leveling		Total		Level 1		Level 2		Level 3		Not subject to leveling			Total
Assets
Cash equivalents (a)	$	39	$	—	$	—	$	—	$	39	$	373	$	—	$	—	$	—		$	373
NDT fund investments
Cash equivalents (b)	110		19		—		—		129		110		19		—		—			129
Equities	3,551		452		—		2,011		6,014		3,551		452		—		2,011			6,014
Fixed income
Corporate debt	—		1,554		250		—		1,804		—		1,554		250		—			1,804
U.S. Treasury and agencies	1,291		29		—		—		1,320		1,291		29		—		—			1,320
Foreign governments	—		37		—		—		37		—		37		—		—			37
State and municipal debt	—		264		—		—		264		—		264		—		—			264
Other (c)	—		59		—		493		552		—		59		—		493		—	552
Fixed income subtotal	1,291		1,943		250		493		3,977		1,291		1,943		250		493			3,977
Middle market lending	—		—		427		71		498		—		—		427		71			498
Private equity	—		—		—		148		148		—		—		—		148			148
Real estate	—		—		—		326		326		—		—		—		326			326
NDT fund investments subtotal (d)	4,952		2,414		677		3,049		11,092		4,952		2,414		677		3,049			11,092
Pledged assets for Zion Station decommissioning
Cash equivalents	11		—		—		—		11		11		—		—		—			11
Equities	—		2		—		—		2		—		2		—		—			2
Fixed Income - U.S. Treasury and agencies	16		1		—		—		17		16		1		—		—			17
Middle market lending	—		—		19		64		83		—		—		19		64			83
Pledged assets for Zion Station decommissioning subtotal (e)	27		3		19		64		113		27		3		19		64			113
Rabbi trust investments
Cash equivalents	2		—		—		—		2		74		—		—		—			74
Mutual funds	19		—		—		—		19		50		—		—		—			50

	Generation														Exelon
As of December 31, 2016	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Fixed income	—			—			—			—		—			—			16			—			—		16
Life insurance contracts	—			18			—			—		18			—			64			20			—		84
Rabbi trust investments subtotal	21			18			—			—		39			124			80			20			—		224
Commodity derivative assets
Economic hedges	1,356			2,505			1,229			—		5,090			1,358			2,505			1,229			—		5,092
Proprietary trading	3			50			23			—		76			3			50			23			—		76
Effect of netting and allocation of collateral (f)	(1,162		)	(2,142		)	(481		)	—		(3,785		)	(1,164		)	(2,142		)	(481		)	—		(3,787		)
Commodity derivative assets subtotal	197			413			771			—		1,381			197			413			771			—		1,381
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—			—			—			—		—			—			16			—			—		16
Economic hedges	—			28			—			—		28			—			28			—			—		28
Proprietary trading	3			2			—			—		5			3			2			—			—		5
Effect of netting and allocation of collateral	(2		)	(19		)	—			—		(21		)	(2		)	(19		)	—			—		(21		)
Interest rate and foreign currency derivative assets subtotal	1			11			—			—		12			1			27			—			—		28
Other investments	—			—			42			—		42			—			—			42			—		42
Total assets	5,237			2,859			1,509			3,113		12,718			5,674			2,937			1,529			3,113		13,253
Liabilities
Commodity derivative liabilities
Economic hedges	(1,267		)	(2,378		)	(794		)	—		(4,439		)	(1,267		)	(2,378		)	(1,052		)	—		(4,697		)
Proprietary trading	(3		)	(50		)	(26		)	—		(79		)	(3		)	(50		)	(26		)	—		(79		)
Effect of netting and allocation of collateral (f)	1,233			2,339			542			—		4,114			1,233			2,339			542			—		4,114
Commodity derivative liabilities subtotal	(37		)	(89		)	(278		)	—		(404		)	(37		)	(89		)	(536		)	—		(662		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			(10		)	—			—		(10		)	—			(10		)	—			—		(10		)
Economic hedges	—			(21		)	—			—		(21		)	—			(21		)	—			—		(21		)
Proprietary trading	(4		)	—			—			—		(4		)	(4		)	—			—			—		(4		)
Effect of netting and allocation of collateral	4			19			—			—		23			4			19			—			—		23
Interest rate and foreign currency derivative liabilities subtotal	—			(12		)	—			—		(12		)	—			(12		)	—			—		(12		)
Deferred compensation obligation	—			(34		)	—			—		(34		)	—			(136		)	—					(136		)
Total liabilities	(37		)	(135		)	(278		)	—		(450		)	(37		)	(237		)	(536		)	—		(810		)
Total net assets	$	5,200		$	2,724		$	1,231		$	3,113	$	12,268		$	5,637		$	2,700		$	993		$	3,113	$	12,443

	Generation										Exelon
As of December 31, 2015	Level 1		Level 2		Level 3		Not subject to leveling		Total		Level 1		Level 2		Level 3		Not subject to leveling		Total
Assets
Cash equivalents (a)	$	104	$	—	$	—	$	—	$	104	$	5,766	$	—	$	—	$	—	$	5,766
NDT fund investments
Cash equivalents (b)	219		92		—		—		311		219		92		—		—		311
Equities	3,008		—		—		1,894		4,902		3,008		—		—		1,894		4,902

	Generation									Exelon
As of December 31, 2015	Level 1		Level 2		Level 3		Not subject to leveling	Total		Level 1		Level 2		Level 3		Not subject to leveling	Total
Fixed income
Corporate debt	—		1,824		242		—	2,066		—		1,824		242		—	2,066
U.S. Treasury and agencies	1,323		15		—		—	1,338		1,323		15		—		—	1,338
Foreign governments	—		61		—		—	61		—		61		—		—	61
State and municipal debt	—		326		—		—	326		—		326		—		—	326
Other (c)	—		147		—		390	537		—		147		—		390	537
Fixed income subtotal	1,323		2,373		242		390	4,328		1,323		2,373		242		390	4,328
Middle market lending	—		—		428		—	428		—		—		428		—	428
Private equity	—		—		—		125	125		—		—		—		125	125
Real estate	—		—		—		35	35		—		—		—		35	35
Other	—		—		—		216	216		—		—		—		216	216
Nuclear decommissioning trust fund investments subtotal (d)	4,550		2,465		670		2,660	10,345		4,550		2,465		670		2,660	10,345
Pledged assets for Zion Station decommissioning
Cash equivalents	—		17		—		—	17		—		17		—		—	17
Equities	1		5		—		—	6		1		5		—		—	6
Fixed income
U.S. Treasury and agencies	6		2		—		—	8		6		2		—		—	8
Corporate debt	—		46		—		—	46		—		46		—		—	46
Other	—		1		—		—	1		—		1		—		—	1
Fixed income subtotal	6		49		—		—	55		6		49		—		—	55
Middle market lending	—		—		22		105	127		—		—		22		105	127
Pledged assets for Zion Station decommissioning subtotal (e)	7		71		22		105	205		7		71		22		105	205
Rabbi trust investments
Mutual funds	17		—		—		—	17		48		—		—		—	48
Life insurance contracts	—		13		—		—	13		—		36		—		—	36
Rabbi trust investments subtotal	17		13		—		—	30		48		36		—		—	84
Commodity derivative assets
Economic hedges	1,922		3,467		1,707		—	7,096		1,922		3,467		1,707		—	7,096
Proprietary trading	36		64		30		—	130		36		64		30		—	130
Effect of netting and allocation of collateral (f)	(1,964	)	(2,629	)	(564	)	—	(5,157	)	(1,964	)	(2,629	)	(564	)	—	(5,157	)
Commodity derivative assets subtotal	(6	)	902		1,173		—	2,069		(6	)	902		1,173		—	2,069
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—		—		—		—	—		—		25		—		—	25
Economic hedges	—		20		—		—	20		—		20		—		—	20
Proprietary trading	10		5		—		—	15		10		5		—		—	15
Effect of netting and allocation of collateral	(3	)	(3	)	—		—	(6	)	(3	)	(3	)	—		—	(6	)
Interest rate and foreign currency derivative assets subtotal	7		22		—		—	29		7		47		—		—	54
Other investments	—		—		33		—	33		—		—		33		—	33
Total assets	4,679		3,473		1,898		2,765	12,815		10,372		3,521		1,898		2,765	18,556
Liabilities
Commodity derivative liabilities

	Generation														Exelon
As of December 31, 2015	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Economic hedges	(2,382		)	(3,348		)	(850		)	—		(6,580		)	(2,382		)	(3,348		)	(1,097		)	—		(6,827		)
Proprietary trading	(33		)	(57		)	(37		)	—		(127		)	(33		)	(57		)	(37		)	—		(127		)
Effect of netting and allocation of collateral (f)	2,440			3,186			765			—		6,391			2,440			3,186			765			—		6,391
Commodity derivative liabilities subtotal	25			(219		)	(122		)	—		(316		)	25			(219		)	(369		)	—		(563		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			(16		)	—			—		(16		)	—			(16		)	—			—		(16		)
Economic hedges	—			(3		)	—			—		(3		)	—			(3		)	—			—		(3		)
Proprietary trading	(12		)	—			—			—		(12		)	(12		)	—			—			—		(12		)
Effect of netting and allocation of collateral	12			3			—			—		15			12			3			—			—		15
Interest rate and foreign currency derivative liabilities subtotal	—			(16		)	—			—		(16		)	—			(16		)	—			—		(16		)
Deferred compensation obligation	—			(30		)	—			—		(30		)	—			(99		)	—			—		(99		)
Total liabilities	25			(265		)	(122		)	—		(362		)	25			(334		)	(369		)	—		(678		)
Total net assets	$	4,704		$	3,208		$	1,776		$	2,765	$	12,453		$	10,397		$	3,187		$	1,529		$	2,765	$	17,878

_________________________

(a) Generation excludes cash of $252 million and $329 million at December 31, 2016 and 2015 and restricted cash of $157 million and $121 million at December 31, 2016 and 2015.  Exelon excludes cash of $360 million and $763 million at December 31, 2016 and 2015 and restricted cash of $180 million and $178 million at December 31, 2016 and 2015 and includes long term restricted cash of $25 million at December 31, 2016, which is reported in other deferred debits on the balance sheet.

(b) Includes $29 million and $52 million of cash received from outstanding repurchase agreements at December 31, 2016 and 2015, respectively, and is offset by an obligation to repay upon settlement of the agreement as discussed in (d) below.

(c) Includes derivative instruments of $(2) million and $(8) million, which have a total notional amount of $933 million and $1,236 million at December 31, 2016 and 2015, respectively. The notional principal amounts for these instruments provide one measure of the transaction volume outstanding as of the fiscal years ended and do not represent the amount of the company's exposure to credit or market loss.

(d) Excludes net liabilities of $(31) million and $(3) million at December 31, 2016 and 2015, respectively. These items consist of receivables related to pending securities sales, interest and dividend receivables, repurchase agreement obligations, and payables related to pending securities purchases. The repurchase agreements are generally short-term in nature with durations generally of 30 days or less.

(e) Excludes net assets of less than $1 million and $1 million at December 31, 2016 and 2015, respectively. These items consist of receivables related to pending securities sales, interest and dividend receivables, and payables related to pending securities purchases.

(f) Collateral posted to/(received from) counterparties totaled $71 million, $197 million and $61 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of December 31, 2016. Collateral posted to/(received from) counterparties totaled $476 million, $557 million and $201 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of December 31, 2015.

PHI, Pepco, DPL and ACE

The following tables present assets and liabilities measured and recorded at fair value on PHI's, Pepco's, DPL's and ACE's Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of December 31, 2016 and December 31, 2015:

	Successor											Predecessor
	As of December 31, 2016											As of December 31, 2015
PHI	Level 1			Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total
Assets
Cash equivalents (a)	$	217		$	—		$	—	$	217		$	42		$	—		$	—	$	42
Mark-to-market derivative assets (b)(c)	2			—			—		2			—			—			18		18
Effect of netting and allocation of collateral	(2		)	—			—		(2		)	—			—			—		—
Mark-to-market derivative assets subtotal	—			—			—		—			—			—			18		18
Rabbi trust investments
Cash equivalents	73			—			—		73			12			—			—		12
Fixed income	—			16			—		16			—			15			—		15
Life insurance contracts	—			22			20		42			—			27			19		46
Rabbi trust investments subtotal	73			38			20		131			12			42			19		73
Total assets	290			38			20		348			54			42			37		133
Liabilities
Deferred compensation obligation	—			(28		)	—		(28		)	—			(30		)	—		(30		)
Mark-to-market derivative liabilities (b)	—			—			—		—			(2		)	—			—		(2		)
Effect of netting and allocation of collateral	—			—			—		—			2			—			—		2
Mark-to-market derivative liabilities subtotal	—			—			—		—			—			—			—		—
Total liabilities	—			(28		)	—		(28		)	—			(30		)	—		(30		)
Total net assets	$	290		$	10		$	20	$	320		$	54		$	12		$	37	$	103

	Pepco										DPL											ACE
As of December 31, 2016	Level 1		Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total			Level 1		Level 2		Level 3		Total
Assets
Cash equivalents (a)	$	33	$	—		$	—	$	33		$	42		$	—		$	—	$	42		$	130	$	—	$	—	$	130
Mark-to-market derivative assets (b)	—		—			—		—			2			—			—		2			—		—		—		—
Effect of netting and allocation of collateral	—		—			—		—			(2		)	—			—		(2		)	—		—		—		—
Mark-to-market derivative assets subtotal	—		—			—		—			—			—			—		—			—		—		—		—
Rabbi trust investments
Cash equivalents	43		—			—		43			—			—			—		—			—		—		—		—
Fixed income	—		16			—		16			—			—			—		—			—		—		—		—
Life insurance contracts	—		22			19		41			—			—			—		—			—		—		—		—
Rabbi trust investments subtotal	43		38			19		100			—			—			—		—			—		—		—		—
Total assets	76		38			19		133			42			—			—		42			130		—		—		130
Liabilities
Deferred compensation obligation	—		(5		)	—		(5		)	—			(1		)	—		(1		)	—		—		—		—
Total liabilities	—		(5		)	—		(5		)	—			(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	76	$	33		$	19	$	128		$	42		$	(1	)	$	—	$	41		$	130	$	—	$	—	$	130

	Pepco										DPL											ACE
As of December 31, 2015	Level 1		Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total			Level 1		Level 2		Level 3		Total
Assets
Cash equivalents (a)	$	2	$	—		$	—	$	2		$	—		$	—		$	—	$	—		$	30	$	—	$	—	$	30
Rabbi trust investments
Cash equivalents	11		—			—		11			—			—			—		—			—		—		—		—
Fixed income	—		15			—		15			—			—			—		—			—		—		—		—
Life insurance contracts	—		23			19		42			—			—			—		—			—		—		—		—
Rabbi trust investments subtotal	11		38			19		68			—			—			—		—			—		—		—		—
Total assets	13		38			19		70			—			—			—		—			30		—		—		30
Liabilities
Deferred compensation obligation	—		(6		)	—		(6		)	—			(1		)	—		(1		)	—		—		—		—
Mark-to-market derivative liabilities (b)	—		—			—		—			(2		)	—			—		(2		)	—		—		—		—
Effect of netting and allocation of collateral	—		—			—		—			2			—			—		2			—		—		—		—
Mark-to-market derivative liabilities subtotal	—		—			—		—			—			—			—		—			—		—		—		—
Total liabilities	—		(6		)	—		(6		)	—			(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	13	$	32		$	19	$	64		$	—		$	(1	)	$	—	$	(1	)	$	30	$	—	$	—	$	30

_______

(a) PHI excludes cash of $19 million and $16 million at December 31, 2016 and 2015 and includes long term restricted cash of $23 million and $18 million at December 31, 2016 and 2015 which is reported in other deferred debits on the balance sheet.  Pepco excludes cash of $9 million and $5 million at December 31, 2016 and 2015. DPL excludes cash of $4 million and $5 million at December 31, 2016 and 2015. ACE excludes cash of $3 million and $3 million at December 31, 2016 and 2015 and includes long term restricted cash of $23 million and $18 million at December 31, 2016 and 2015 which is reported in other deferred debits on the balance sheet.

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

(c) Prior to the PHI Merger, PHI recorded derivative assets for the embedded call and redemption features on the shares of Preferred Stock outstanding as of December 31, 2015. See Note 19 - Mezzanine Equity for additional information. As a result of the PHI Merger, the PHI preferred stock derivative was reduced to zero as of March 23, 2016.

Fair value of financial liabilities recorded at the carrying amount

The following tables present the carrying amounts and fair values of the Registrants’ short-term liabilities, long-term debt, SNF obligation, and trust preferred securities (long-term debt to financing trusts or junior subordinated debentures) as of December 31, 2016 and 2015:

Exelon

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	1,267	$	—	$	1,267	$	—	$	1,267
Long-term debt (including amounts due within one year) (a)	34,005		1,113		31,741		1,959		34,813
Long-term debt to financing trusts (b)	641		—		—		667		667
SNF obligation	1,024		—		732		—		732

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	536	$	3	$	533	$	—	$	536
Long-term debt (including amounts due within one year) (a)	25,145		931		23,644		1,349		25,924
Long-term debt to financing trusts (b)	641		—		—		673		673
SNF obligation	1,021		—		818		—		818

Generation

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	699	$	—	$	699	$	—	$	699
Long-term debt (including amounts due within one year) (a)	9,241		—		7,482		1,670		9,152
SNF obligation	1,024		—		732		—		732

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	29	$	—	$	29	$	—	$	29
Long-term debt (including amounts due within one year) (a)	8,959		—		7,767		1,349		9,116
SNF obligation	1,021		—		818		—		818

ComEd

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year) (a)	$	7,033	$	—	$	7,585	$	—	$	7,585
Long-term debt to financing trusts (b)	205		—		—		215		215

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	294	$	—	$	294	$	—	$	294
Long-term debt (including amounts due within one year) (a)	6,509		—		7,069		—		7,069
Long-term debt to financing trusts (b)	205		—		—		213		213

PECO

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year) (a)	$	2,580	$	—	$	2,794	$	—	$	2,794
Long-term debt to financing trusts	184		—		—		192		192

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year) (a)	$	2,580	$	—	$	2,786	$	—	$	2,786
Long-term debt to financing trusts	184		—		—		195		195

BGE

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	45	$	—	$	45	$	—	$	45
Long-term debt (including amounts due within one year) (a)	2,322		—		2,467		—		2,467
Long-term debt to financing trusts (b)	252		—		—		260		260

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	213	$	3	$	210	$	—	$	213
Long-term debt (including amounts due within one year) (a)	1,858		—		2,044		—		2,044
Long-term debt to financing trusts (b)	252		—		—		264		264

PHI

	December 31, 2016
	Carrying Amount		Fair Value
Successor			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	522	$	—	$	522	$	—	$	522
Long-term debt (including amounts due within one year) (a)	5,898		—		5,520		289		5,809

	December 31, 2015
	Carrying Amount		Fair Value
Predecessor			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	958	$	—	$	958	$	—	$	958
Long-term debt (including amounts due within one year) (a)	5,279		—		5,231		586		5,817
Preferred stock	183		—		—		183		183

Pepco

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	23	$	—	$	23	$	—	$	23
Long-term debt (including amounts due within one year) (a)	2,349		—		2,788		8		2,796

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	64	$	—	$	64	$	—	$	64
Long-term debt (including amounts due within one year) (a)	2,351		—		2,673		—		2,673

DPL

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year) (a)	$	1,340	$	—	$	1,383	$	—	$	1,383

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	105	$	—	$	105	$	—	$	105
Long-term debt (including amounts due within one year) (a)	1,265		—		1,185		103		1,288

ACE

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year) (a)	$	1,155	$	—	$	1,007	$	280	$	1,287

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	5	$	—	$	5	$	—	$	5
Long-term debt (including amounts due within one year) (a)	1,201		—		1,044		280		1,324

________

(a) Includes unamortized debt issuance costs, which are not fair valued, of $200 million, $64 million, $46 million, $15 million, $15 million, $2 million, $30 million, $11 million, and $6 million for Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL, and ACE respectively, as of December 31, 2016. Includes unamortized debt issuance costs, which are not fair valued, of $180 million, $70 million, $38 million, $15 million, $9 million, $49 million, $31 million, $10 million, and $6 million for Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL, and ACE respectively, as of December 31, 2015.

(b) Includes unamortized debt issuance costs which are not fair valued of $7 million, $1 million and $6 million for Exelon, ComEd and BGE, respectively, as of December 31, 2016 and December 31, 2015.

Assets and liabilities measured and recorded at fair value on recurring basis

ComEd, PECO and BGE

The following tables present assets and liabilities measured and recorded at fair value on ComEd's, PECO's and BGE's Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of December 31, 2016 and 2015:

	ComEd											PECO										BGE
As of December 31, 2016	Level 1		Level 2			Level 3			Total			Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
Assets
Cash equivalents (a)	$	20	$	—		$	—		$	20		$	45	$	—		$	—	$	45		$	36	$	—		$	—	$	36
Rabbi trust investments
Mutual funds	—		—			—			—			7		—			—		7			4		—			—		4
Life insurance contracts	—		—			—			—			—		10			—		10			—		—			—		—
Rabbi trust investments subtotal	—		—			—			—			7		10			—		17			4		—			—		4
Total assets	20		—			—			20			52		10			—		62			40		—			—		40
Liabilities
Deferred compensation obligation	—		(8		)	—			(8		)	—		(11		)	—		(11		)	—		(4		)	—		(4		)
Mark-to-market derivative liabilities (b)	—		—			(258		)	(258		)	—		—			—		—			—		—			—		—
Total liabilities	—		(8		)	(258		)	(266		)	—		(11		)	—		(11		)	—		(4		)	—		(4		)
Total net assets (liabilities)	$	20	$	(8	)	$	(258	)	$	(246	)	$	52	$	(1	)	$	—	$	51		$	40	$	(4	)	$	—	$	36

	ComEd											PECO										BGE
As of December 31, 2015	Level 1		Level 2			Level 3			Total			Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
Assets
Cash equivalents (a)	$	29	$	—		$	—		$	29		$	271	$	—		$	—	$	271		$	25	$	—		$	—	$	25
Rabbi trust investments
Mutual funds	—		—			—			—			8		—			—		8			4		—			—		4
Life insurance contracts	—		—			—			—			—		12			—		12			—		—			—		—
Rabbi trust investments subtotal	—		—			—			—			8		12			—		20			4		—			—		4
Total assets	29		—			—			29			279		12			—		291			29		—			—		29
Liabilities
Deferred compensation obligation	—		(8		)	—			(8		)	—		(12		)	—		(12		)	—		(4		)	—		(4		)
Mark-to-market derivative liabilities (b)	—		—			(247		)	(247		)	—		—			—		—			—		—			—		—
Total liabilities	—		(8		)	(247		)	(255		)	—		(12		)	—		(12		)	—		(4		)	—		(4		)
Total net assets (liabilities)	$	29	$	(8	)	$	(247	)	$	(226	)	$	279	$	—		$	—	$	279		$	29	$	(4	)	$	—	$	25

_________________________

(a) ComEd excludes cash of $36 million and $38 million at December 31, 2016 and 2015 and restricted cash of $2 million and $2 million at December 31, 2016 and 2015.  PECO excludes cash of $22 million and $27 million at December 31, 2016 and 2015.  BGE excludes cash of $13 million and $6 million at December 31, 2016 and 2015 and restricted cash of less than $1 million and $2 million at December 31, 2016 and 2015 and includes long term restricted cash of $2 million at December 31, 2016, which is reported in other deferred debits on the balance sheet.

(b) The Level 3 balance consists of the current and noncurrent liability of $19 million and $239 million, respectively, at December 31, 2016, and $23 million and $224 million, respectively, at December 31, 2015, related to floating-to-fixed energy swap contracts with unaffiliated suppliers.

The following tables present assets and liabilities measured and recorded at fair value on Exelon's and Generation’s Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of December 31, 2016 and 2015:

	Generation										Exelon
As of December 31, 2016	Level 1		Level 2		Level 3		Not subject to leveling		Total		Level 1		Level 2		Level 3		Not subject to leveling			Total
Assets
Cash equivalents (a)	$	39	$	—	$	—	$	—	$	39	$	373	$	—	$	—	$	—		$	373
NDT fund investments
Cash equivalents (b)	110		19		—		—		129		110		19		—		—			129
Equities	3,551		452		—		2,011		6,014		3,551		452		—		2,011			6,014
Fixed income
Corporate debt	—		1,554		250		—		1,804		—		1,554		250		—			1,804
U.S. Treasury and agencies	1,291		29		—		—		1,320		1,291		29		—		—			1,320
Foreign governments	—		37		—		—		37		—		37		—		—			37
State and municipal debt	—		264		—		—		264		—		264		—		—			264
Other (c)	—		59		—		493		552		—		59		—		493		—	552
Fixed income subtotal	1,291		1,943		250		493		3,977		1,291		1,943		250		493			3,977
Middle market lending	—		—		427		71		498		—		—		427		71			498
Private equity	—		—		—		148		148		—		—		—		148			148
Real estate	—		—		—		326		326		—		—		—		326			326
NDT fund investments subtotal (d)	4,952		2,414		677		3,049		11,092		4,952		2,414		677		3,049			11,092
Pledged assets for Zion Station decommissioning
Cash equivalents	11		—		—		—		11		11		—		—		—			11
Equities	—		2		—		—		2		—		2		—		—			2
Fixed Income - U.S. Treasury and agencies	16		1		—		—		17		16		1		—		—			17
Middle market lending	—		—		19		64		83		—		—		19		64			83
Pledged assets for Zion Station decommissioning subtotal (e)	27		3		19		64		113		27		3		19		64			113
Rabbi trust investments
Cash equivalents	2		—		—		—		2		74		—		—		—			74
Mutual funds	19		—		—		—		19		50		—		—		—			50

	Generation														Exelon
As of December 31, 2016	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Fixed income	—			—			—			—		—			—			16			—			—		16
Life insurance contracts	—			18			—			—		18			—			64			20			—		84
Rabbi trust investments subtotal	21			18			—			—		39			124			80			20			—		224
Commodity derivative assets
Economic hedges	1,356			2,505			1,229			—		5,090			1,358			2,505			1,229			—		5,092
Proprietary trading	3			50			23			—		76			3			50			23			—		76
Effect of netting and allocation of collateral (f)	(1,162		)	(2,142		)	(481		)	—		(3,785		)	(1,164		)	(2,142		)	(481		)	—		(3,787		)
Commodity derivative assets subtotal	197			413			771			—		1,381			197			413			771			—		1,381
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—			—			—			—		—			—			16			—			—		16
Economic hedges	—			28			—			—		28			—			28			—			—		28
Proprietary trading	3			2			—			—		5			3			2			—			—		5
Effect of netting and allocation of collateral	(2		)	(19		)	—			—		(21		)	(2		)	(19		)	—			—		(21		)
Interest rate and foreign currency derivative assets subtotal	1			11			—			—		12			1			27			—			—		28
Other investments	—			—			42			—		42			—			—			42			—		42
Total assets	5,237			2,859			1,509			3,113		12,718			5,674			2,937			1,529			3,113		13,253
Liabilities
Commodity derivative liabilities
Economic hedges	(1,267		)	(2,378		)	(794		)	—		(4,439		)	(1,267		)	(2,378		)	(1,052		)	—		(4,697		)
Proprietary trading	(3		)	(50		)	(26		)	—		(79		)	(3		)	(50		)	(26		)	—		(79		)
Effect of netting and allocation of collateral (f)	1,233			2,339			542			—		4,114			1,233			2,339			542			—		4,114
Commodity derivative liabilities subtotal	(37		)	(89		)	(278		)	—		(404		)	(37		)	(89		)	(536		)	—		(662		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			(10		)	—			—		(10		)	—			(10		)	—			—		(10		)
Economic hedges	—			(21		)	—			—		(21		)	—			(21		)	—			—		(21		)
Proprietary trading	(4		)	—			—			—		(4		)	(4		)	—			—			—		(4		)
Effect of netting and allocation of collateral	4			19			—			—		23			4			19			—			—		23
Interest rate and foreign currency derivative liabilities subtotal	—			(12		)	—			—		(12		)	—			(12		)	—			—		(12		)
Deferred compensation obligation	—			(34		)	—			—		(34		)	—			(136		)	—					(136		)
Total liabilities	(37		)	(135		)	(278		)	—		(450		)	(37		)	(237		)	(536		)	—		(810		)
Total net assets	$	5,200		$	2,724		$	1,231		$	3,113	$	12,268		$	5,637		$	2,700		$	993		$	3,113	$	12,443

	Generation										Exelon
As of December 31, 2015	Level 1		Level 2		Level 3		Not subject to leveling		Total		Level 1		Level 2		Level 3		Not subject to leveling		Total
Assets
Cash equivalents (a)	$	104	$	—	$	—	$	—	$	104	$	5,766	$	—	$	—	$	—	$	5,766
NDT fund investments
Cash equivalents (b)	219		92		—		—		311		219		92		—		—		311
Equities	3,008		—		—		1,894		4,902		3,008		—		—		1,894		4,902

	Generation									Exelon
As of December 31, 2015	Level 1		Level 2		Level 3		Not subject to leveling	Total		Level 1		Level 2		Level 3		Not subject to leveling	Total
Fixed income
Corporate debt	—		1,824		242		—	2,066		—		1,824		242		—	2,066
U.S. Treasury and agencies	1,323		15		—		—	1,338		1,323		15		—		—	1,338
Foreign governments	—		61		—		—	61		—		61		—		—	61
State and municipal debt	—		326		—		—	326		—		326		—		—	326
Other (c)	—		147		—		390	537		—		147		—		390	537
Fixed income subtotal	1,323		2,373		242		390	4,328		1,323		2,373		242		390	4,328
Middle market lending	—		—		428		—	428		—		—		428		—	428
Private equity	—		—		—		125	125		—		—		—		125	125
Real estate	—		—		—		35	35		—		—		—		35	35
Other	—		—		—		216	216		—		—		—		216	216
Nuclear decommissioning trust fund investments subtotal (d)	4,550		2,465		670		2,660	10,345		4,550		2,465		670		2,660	10,345
Pledged assets for Zion Station decommissioning
Cash equivalents	—		17		—		—	17		—		17		—		—	17
Equities	1		5		—		—	6		1		5		—		—	6
Fixed income
U.S. Treasury and agencies	6		2		—		—	8		6		2		—		—	8
Corporate debt	—		46		—		—	46		—		46		—		—	46
Other	—		1		—		—	1		—		1		—		—	1
Fixed income subtotal	6		49		—		—	55		6		49		—		—	55
Middle market lending	—		—		22		105	127		—		—		22		105	127
Pledged assets for Zion Station decommissioning subtotal (e)	7		71		22		105	205		7		71		22		105	205
Rabbi trust investments
Mutual funds	17		—		—		—	17		48		—		—		—	48
Life insurance contracts	—		13		—		—	13		—		36		—		—	36
Rabbi trust investments subtotal	17		13		—		—	30		48		36		—		—	84
Commodity derivative assets
Economic hedges	1,922		3,467		1,707		—	7,096		1,922		3,467		1,707		—	7,096
Proprietary trading	36		64		30		—	130		36		64		30		—	130
Effect of netting and allocation of collateral (f)	(1,964	)	(2,629	)	(564	)	—	(5,157	)	(1,964	)	(2,629	)	(564	)	—	(5,157	)
Commodity derivative assets subtotal	(6	)	902		1,173		—	2,069		(6	)	902		1,173		—	2,069
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—		—		—		—	—		—		25		—		—	25
Economic hedges	—		20		—		—	20		—		20		—		—	20
Proprietary trading	10		5		—		—	15		10		5		—		—	15
Effect of netting and allocation of collateral	(3	)	(3	)	—		—	(6	)	(3	)	(3	)	—		—	(6	)
Interest rate and foreign currency derivative assets subtotal	7		22		—		—	29		7		47		—		—	54
Other investments	—		—		33		—	33		—		—		33		—	33
Total assets	4,679		3,473		1,898		2,765	12,815		10,372		3,521		1,898		2,765	18,556
Liabilities
Commodity derivative liabilities

	Generation														Exelon
As of December 31, 2015	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Economic hedges	(2,382		)	(3,348		)	(850		)	—		(6,580		)	(2,382		)	(3,348		)	(1,097		)	—		(6,827		)
Proprietary trading	(33		)	(57		)	(37		)	—		(127		)	(33		)	(57		)	(37		)	—		(127		)
Effect of netting and allocation of collateral (f)	2,440			3,186			765			—		6,391			2,440			3,186			765			—		6,391
Commodity derivative liabilities subtotal	25			(219		)	(122		)	—		(316		)	25			(219		)	(369		)	—		(563		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			(16		)	—			—		(16		)	—			(16		)	—			—		(16		)
Economic hedges	—			(3		)	—			—		(3		)	—			(3		)	—			—		(3		)
Proprietary trading	(12		)	—			—			—		(12		)	(12		)	—			—			—		(12		)
Effect of netting and allocation of collateral	12			3			—			—		15			12			3			—			—		15
Interest rate and foreign currency derivative liabilities subtotal	—			(16		)	—			—		(16		)	—			(16		)	—			—		(16		)
Deferred compensation obligation	—			(30		)	—			—		(30		)	—			(99		)	—			—		(99		)
Total liabilities	25			(265		)	(122		)	—		(362		)	25			(334		)	(369		)	—		(678		)
Total net assets	$	4,704		$	3,208		$	1,776		$	2,765	$	12,453		$	10,397		$	3,187		$	1,529		$	2,765	$	17,878

_________________________

(a) Generation excludes cash of $252 million and $329 million at December 31, 2016 and 2015 and restricted cash of $157 million and $121 million at December 31, 2016 and 2015.  Exelon excludes cash of $360 million and $763 million at December 31, 2016 and 2015 and restricted cash of $180 million and $178 million at December 31, 2016 and 2015 and includes long term restricted cash of $25 million at December 31, 2016, which is reported in other deferred debits on the balance sheet.

(b) Includes $29 million and $52 million of cash received from outstanding repurchase agreements at December 31, 2016 and 2015, respectively, and is offset by an obligation to repay upon settlement of the agreement as discussed in (d) below.

(c) Includes derivative instruments of $(2) million and $(8) million, which have a total notional amount of $933 million and $1,236 million at December 31, 2016 and 2015, respectively. The notional principal amounts for these instruments provide one measure of the transaction volume outstanding as of the fiscal years ended and do not represent the amount of the company's exposure to credit or market loss.

(d) Excludes net liabilities of $(31) million and $(3) million at December 31, 2016 and 2015, respectively. These items consist of receivables related to pending securities sales, interest and dividend receivables, repurchase agreement obligations, and payables related to pending securities purchases. The repurchase agreements are generally short-term in nature with durations generally of 30 days or less.

(e) Excludes net assets of less than $1 million and $1 million at December 31, 2016 and 2015, respectively. These items consist of receivables related to pending securities sales, interest and dividend receivables, and payables related to pending securities purchases.

(f) Collateral posted to/(received from) counterparties totaled $71 million, $197 million and $61 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of December 31, 2016. Collateral posted to/(received from) counterparties totaled $476 million, $557 million and $201 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of December 31, 2015.

PHI, Pepco, DPL and ACE

The following tables present assets and liabilities measured and recorded at fair value on PHI's, Pepco's, DPL's and ACE's Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of December 31, 2016 and December 31, 2015:

	Successor											Predecessor
	As of December 31, 2016											As of December 31, 2015
PHI	Level 1			Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total
Assets
Cash equivalents (a)	$	217		$	—		$	—	$	217		$	42		$	—		$	—	$	42
Mark-to-market derivative assets (b)(c)	2			—			—		2			—			—			18		18
Effect of netting and allocation of collateral	(2		)	—			—		(2		)	—			—			—		—
Mark-to-market derivative assets subtotal	—			—			—		—			—			—			18		18
Rabbi trust investments
Cash equivalents	73			—			—		73			12			—			—		12
Fixed income	—			16			—		16			—			15			—		15
Life insurance contracts	—			22			20		42			—			27			19		46
Rabbi trust investments subtotal	73			38			20		131			12			42			19		73
Total assets	290			38			20		348			54			42			37		133
Liabilities
Deferred compensation obligation	—			(28		)	—		(28		)	—			(30		)	—		(30		)
Mark-to-market derivative liabilities (b)	—			—			—		—			(2		)	—			—		(2		)
Effect of netting and allocation of collateral	—			—			—		—			2			—			—		2
Mark-to-market derivative liabilities subtotal	—			—			—		—			—			—			—		—
Total liabilities	—			(28		)	—		(28		)	—			(30		)	—		(30		)
Total net assets	$	290		$	10		$	20	$	320		$	54		$	12		$	37	$	103

	Pepco										DPL											ACE
As of December 31, 2016	Level 1		Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total			Level 1		Level 2		Level 3		Total
Assets
Cash equivalents (a)	$	33	$	—		$	—	$	33		$	42		$	—		$	—	$	42		$	130	$	—	$	—	$	130
Mark-to-market derivative assets (b)	—		—			—		—			2			—			—		2			—		—		—		—
Effect of netting and allocation of collateral	—		—			—		—			(2		)	—			—		(2		)	—		—		—		—
Mark-to-market derivative assets subtotal	—		—			—		—			—			—			—		—			—		—		—		—
Rabbi trust investments
Cash equivalents	43		—			—		43			—			—			—		—			—		—		—		—
Fixed income	—		16			—		16			—			—			—		—			—		—		—		—
Life insurance contracts	—		22			19		41			—			—			—		—			—		—		—		—
Rabbi trust investments subtotal	43		38			19		100			—			—			—		—			—		—		—		—
Total assets	76		38			19		133			42			—			—		42			130		—		—		130
Liabilities
Deferred compensation obligation	—		(5		)	—		(5		)	—			(1		)	—		(1		)	—		—		—		—
Total liabilities	—		(5		)	—		(5		)	—			(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	76	$	33		$	19	$	128		$	42		$	(1	)	$	—	$	41		$	130	$	—	$	—	$	130

	Pepco										DPL											ACE
As of December 31, 2015	Level 1		Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total			Level 1		Level 2		Level 3		Total
Assets
Cash equivalents (a)	$	2	$	—		$	—	$	2		$	—		$	—		$	—	$	—		$	30	$	—	$	—	$	30
Rabbi trust investments
Cash equivalents	11		—			—		11			—			—			—		—			—		—		—		—
Fixed income	—		15			—		15			—			—			—		—			—		—		—		—
Life insurance contracts	—		23			19		42			—			—			—		—			—		—		—		—
Rabbi trust investments subtotal	11		38			19		68			—			—			—		—			—		—		—		—
Total assets	13		38			19		70			—			—			—		—			30		—		—		30
Liabilities
Deferred compensation obligation	—		(6		)	—		(6		)	—			(1		)	—		(1		)	—		—		—		—
Mark-to-market derivative liabilities (b)	—		—			—		—			(2		)	—			—		(2		)	—		—		—		—
Effect of netting and allocation of collateral	—		—			—		—			2			—			—		2			—		—		—		—
Mark-to-market derivative liabilities subtotal	—		—			—		—			—			—			—		—			—		—		—		—
Total liabilities	—		(6		)	—		(6		)	—			(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	13	$	32		$	19	$	64		$	—		$	(1	)	$	—	$	(1	)	$	30	$	—	$	—	$	30

_______

(a) PHI excludes cash of $19 million and $16 million at December 31, 2016 and 2015 and includes long term restricted cash of $23 million and $18 million at December 31, 2016 and 2015 which is reported in other deferred debits on the balance sheet.  Pepco excludes cash of $9 million and $5 million at December 31, 2016 and 2015. DPL excludes cash of $4 million and $5 million at December 31, 2016 and 2015. ACE excludes cash of $3 million and $3 million at December 31, 2016 and 2015 and includes long term restricted cash of $23 million and $18 million at December 31, 2016 and 2015 which is reported in other deferred debits on the balance sheet.

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

(c) Prior to the PHI Merger, PHI recorded derivative assets for the embedded call and redemption features on the shares of Preferred Stock outstanding as of December 31, 2015. See Note 19 - Mezzanine Equity for additional information. As a result of the PHI Merger, the PHI preferred stock derivative was reduced to zero as of March 23, 2016.

Total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis

The following tables present the income statement classification of the total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis during the years ended December 31, 2016 and 2015:

	Generation								Exelon
	Operating Revenues			Purchased Power and Fuel			Other, net (a)		Operating Revenues			Purchased Power and Fuel			Other, net (a)
Total gains (losses) included in net income for the year ended December 31, 2016	$	(477	)	$	(91	)	$	7	$	(477	)	$	(91	)	$	10
Change in the unrealized gains (losses) relating to assets and liabilities held for the year ended December 31, 2016	$	154		$	(45	)	$	5	$	154		$	(45	)	$	7

	Generation							Exelon
	Operating Revenues		Purchased Power and Fuel			Other, net (a)		Operating Revenues		Purchased Power and Fuel			Other, net (a)
Total gains (losses) included in net income for the year ended December 31, 2015	$	67	$	(45	)	$	4	$	67	$	(45	)	$	4
Change in the unrealized gains (losses) relating to assets and liabilities held for the year ended December 31, 2015	$	858	$	(2	)	$	2	$	858	$	(2	)	$	2

	Successor		Predecessor
	PHI		PHI					Pepco
	March 24, 2016 to December 31, 2016		January 1, 2016 to March 23, 2016			December 31, 2015		December 31, 2016		December 31, 2015
	Other, net		Other, net					Other, net
Total (losses) gains included in net income	$	3	$	(17	)	$	20	$	3	$	5
Change in the unrealized gains (losses) relating to assets and liabilities held	2		1			18		3		3

________________________

(a) Other, net activity consists of realized and unrealized gains (losses) included in income for the NDT funds held by Generation and the life insurance contracts held by Pepco.

Fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis, valuation technique

The table below discloses the significant inputs to the forward curve used to value these positions.

Type of trade	Fair Value at December 31, 2016			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives—Economic hedges (Exelon and Generation) (a)(c)	$	435		Discounted Cash Flow	Forward power price	$11	-	$130
					Forward gas price	$1.72	-	$9.20
				Option Model	Volatility percentage	8%	-	173%
Mark-to-market derivatives—Proprietary trading (Exelon and Generation) (a)(c)	$	(3	)	Discounted Cash Flow	Forward power price	$19	-	$79
Mark-to-market derivatives (Exelon and ComEd)	$	(258	)	Discounted Cash Flow	Forward heat rate (b)	8x	-	9x
					Marketability reserve	3%	-	8%
					Renewable factor	89%	-	121%

_________________________

(a) The valuation techniques, unobservable inputs and ranges are the same for the asset and liability positions.

(b) Quoted forward natural gas rates are utilized to project the forward power curve for the delivery of energy at specified future dates. The natural gas curve is extrapolated beyond its observable period to the end of the contract’s delivery.

(c) The fair values do not include cash collateral posted on level three positions of $61 million as of December 31, 2016.

Type of trade	Fair Value at December 31, 2015			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives—Economic hedges (Exelon and Generation) (a)(c)	$	857		Discounted Cash Flow	Forward power price	$11	-	$88
					Forward gas price	$1.18	-	$8.95
				Option Model	Volatility percentage	5%	-	152%
Mark-to-market derivatives— Proprietary trading (Exelon and Generation) (a)(c)	$	(7	)	Discounted Cash Flow	Forward power price	$13	-	$78
Mark-to-market derivatives (Exelon and ComEd)	$	(247	)	Discounted Cash Flow	Forward heat rate (b)	9x	-	10x
					Marketability reserve	3.5%	-	7%
					Renewable factor	87%	-	128%

__________________________ 

(a) The valuation techniques, unobservable inputs and ranges are the same for the asset and liability positions.

(b) Quoted forward natural gas rates are utilized to project the forward power curve for the delivery of energy at specified future dates. The natural gas curve is extrapolated beyond its observable period to the end of the contract’s delivery.

(c) The fair values do not include cash collateral posted on level three positions of $201 million as of December 31, 2015