Fair Value of Financial Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Tables [Line Items]

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 June 30, 2017 and December 31, 2016:

Exelon

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	1,757	$	—	$	1,757	$	—	$	1,757
Long-term debt (including amounts due within one year)(a)	33,934		—		33,460		1,956		35,416
Long-term debt to financing trusts(b)	641		—		—		693		693
SNF obligation	1,139		—		830		—		830

	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

Generation

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	716	$	—	$	716	$	—	$	716
Long-term debt (including amounts due within one year)(a)	9,754		—		8,061		1,661		9,722
SNF obligation	1,139		—		830		—		830

	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

ComEd

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	389	$	—	$	389	$	—	$	389
Long-term debt (including amounts due within one year)(a)	7,036		—		7,728		—		7,728
Long-term debt to financing trusts(b)	205		—		—		223		223

	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

PECO

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,580	$	—	$	2,834	$	—	$	2,834
Long-term debt to financing trusts	184		—		—		199		199

	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

BGE

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	85	$	—	$	85	$	—	$	85
Long-term debt (including amounts due within one year)(a)	2,282		—		2,497		—		2,497
Long-term debt to financing trusts(b)	252		—		—		271		271

	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

PHI (Successor)

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	67	$	—	$	67	$	—	$	67
Long-term debt (including amounts due within one year)(a)	5,952		—		5,707		295		6,002

	December 31, 2016
	Carrying Amount		Fair Value
			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

Pepco

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,545	$	—	$	3,065	$	9	$	3,074

	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

DPL

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	25	$	—	$	25	$	—	$	25
Long-term debt (including amounts due within one year)(a)	1,326		—		1,398		—		1,398

	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

ACE

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	42	$	—	$	42	$	—	$	42
Long-term debt (including amounts due within one year)(a)	1,138		—		980		286		1,266

	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

________

(a) Includes unamortized debt issuance costs which are not fair valued of $185 million, $53 million, $44 million, $15 million, $14 million, $6 million, $33 million, $11 million, and $5 million for Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, respectively, as of June 30, 2017. Includes unamortized debt issuance costs 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.

(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 June 30, 2017 and December 31, 2016.

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

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 June 30, 2017 and December 31, 2016:

	Generation										Exelon
As of June 30, 2017	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)	$	29	$	—	$	—	$	—	$	29	$	257	$	—	$	—	$	—	$	257
NDT fund investments
Cash equivalents(b)	117		67		—		—		184		117		67		—		—		184
Equities	3,980		717		—		2,104		6,801		3,980		717		—		2,104		6,801
Fixed income
Corporate debt	—		1,656		255		—		1,911		—		1,656		255		—		1,911
U.S. Treasury and agencies	1,767		32		—		—		1,799		1,767		32		—		—		1,799

	Generation									Exelon
As of June 30, 2017	Level 1		Level 2		Level 3		Not subject to leveling	Total		Level 1		Level 2		Level 3		Not subject to leveling	Total
Foreign governments	—		51		—		—	51		—		51		—		—	51
State and municipal debt	—		232		—		—	232		—		232		—		—	232
Other(c)	—		46		—		502	548		—		46		—		502	548
Fixed income subtotal	1,767		2,017		255		502	4,541		1,767		2,017		255		502	4,541
Middle market lending	—		—		428		78	506		—		—		428		78	506
Private equity	—		—		—		197	197		—		—		—		197	197
Real estate	—		—		—		441	441		—		—		—		441	441
NDT fund investments subtotal(d)	5,864		2,801		683		3,322	12,670		5,864		2,801		683		3,322	12,670
Pledged assets for Zion Station decommissioning
Cash equivalents	21		—		—		—	21		21		—		—		—	21
Middle market lending	—		—		21		33	54		—		—		21		33	54
Pledged assets for Zion Station decommissioning subtotal(e)	21		—		21		33	75		21		—		21		33	75
Rabbi trust investments
Cash equivalents	5		—		—		—	5		78		—		—		—	78
Mutual funds	22		—		—		—	22		54		—		—		—	54
Fixed income	—		—		—		—	—		—		13		—		—	13
Life insurance contracts	—		20		—		—	20		—		67		21		—	88
Rabbi trust investments subtotal	27		20		—		—	47		132		80		21		—	233
Commodity derivative assets
Economic hedges	632		2,698		1,604		—	4,934		632		2,698		1,604		—	4,934
Proprietary trading	3		47		31		—	81		3		47		31		—	81
Effect of netting and allocation of collateral(f) (g)	(627	)	(2,343	)	(767	)	—	(3,737	)	(627	)	(2,343	)	(767	)	—	(3,737	)
Commodity derivative assets subtotal	8		402		868		—	1,278		8		402		868		—	1,278
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—		—		—		—	—		—		11		—		—	11
Economic hedges	—		17		—		—	17		—		17		—		—	17
Proprietary trading	3		1		—		—	4		3		1		—		—	4
Effect of netting and allocation of collateral	(3	)	(10	)	—		—	(13	)	(3	)	(10	)	—		—	(13	)
Interest rate and foreign currency derivative assets subtotal	—		8		—		—	8		—		19		—		—	19
Other investments	—		—		41		—	41		—		—		41		—	41
Total assets	5,949		3,231		1,613		3,355	14,148		6,282		3,302		1,634		3,355	14,573
Liabilities
Commodity derivative liabilities
Economic hedges	(697	)	(2,691	)	(1,151	)	—	(4,539	)	(697	)	(2,691	)	(1,407	)	—	(4,795	)
Proprietary trading	(4	)	(48	)	(25	)	—	(77	)	(4	)	(48	)	(25	)	—	(77	)
Effect of netting and allocation of collateral(f) (g)	698		2,627		897		—	4,222		698		2,627		897		—	4,222
Commodity derivative liabilities subtotal	(3	)	(112	)	(279	)	—	(394	)	(3	)	(112	)	(535	)	—	(650	)
Interest rate and foreign currency derivative liabilities

	Generation														Exelon
As of June 30, 2017	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Economic hedges	—			(20		)	—			—		(20		)	—			(20		)	—			—		(20		)
Proprietary trading	(4		)	—			—			—		(4		)	(4		)	—			—			—		(4		)
Effect of netting and allocation of collateral	3			10			—			—		13			3			10			—			—		13
Interest rate and foreign currency derivative liabilities subtotal	(1		)	(10		)	—			—		(11		)	(1		)	(10		)	—			—		(11		)
Deferred compensation obligation	—			(33		)	—			—		(33		)	—			(131		)	—			—		(131		)
Total liabilities	(4		)	(155		)	(279		)	—		(438		)	(4		)	(253		)	(535		)	—		(792		)
Total net assets	$	5,945		$	3,076		$	1,334		$	3,355	$	13,710		$	6,278		$	3,049		$	1,099		$	3,355	$	13,781

	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
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

	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
Effect of netting and allocation of collateral(f) (g)	(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) (g)	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

________

(a) Generation excludes cash of $238 million and $252 million at June 30, 2017 and December 31, 2016 and restricted cash of $164 million and $157 million at June 30, 2017 and December 31, 2016.  Exelon excludes cash of $353 million and $360 million at June 30, 2017 and December 31, 2016 and restricted cash of $203 million and $180 million at June 30, 2017 and December 31, 2016 and includes long term restricted cash of $25 million at June 30, 2017 and December 31, 2016, which is reported in other deferred debits on the balance sheet.

(b) Includes $48 million and $29 million of cash received from outstanding repurchase agreements at June 30, 2017 and December 31, 2016, respectively, and is offset by an obligation to repay upon settlement of the agreement as discussed in (d) below.

(c) Includes derivative instruments of $(1) million and $(2) million, which have a total notional amount of $771 million and $933 million at June 30, 2017 and December 31, 2016, 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 $29 million and $31 million at June 30, 2017 and December 31, 2016, 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 at June 30, 2017 and December 31, 2016. These items consist of receivables related to pending securities sales, interest and dividend receivables, and payables related to pending securities purchases.

(f) Collateral posted/(received) from counterparties totaled $71 million, $284 million and $130 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of June 30, 2017. Collateral posted/(received) from counterparties, net of collateral paid to 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.

(g) Of the collateral posted/(received), $84 million represents variation margin on the exchanges as of June 30, 2017. Of the collateral posted/(received), $(158) million represents variation margin on the exchanges as of December 31, 2016.

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 June 30, 2017 and December 31, 2016:

	ComEd											PECO										BGE
As of June 30, 2017	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)	$	—	$	—		$	—		$	—		$	28	$	—		$	—	$	28		$	5	$	—		$	—	$	5
Rabbi trust investments
Mutual funds	—		—			—			—			7		—			—		7			5		—			—		5
Life insurance contracts	—		—			—			—			—		10			—		10			—		—			—		—
Rabbi trust investments subtotal	—		—			—			—			7		10			—		17			5		—			—		5
Total assets	—		—			—			—			35		10			—		45			10		—			—		10
Liabilities
Deferred compensation obligation	—		(7		)	—			(7		)	—		(10		)	—		(10		)	—		(4		)	—		(4		)
Mark-to-market derivative liabilities(b)	—		—			(256		)	(256		)	—		—			—		—			—		—			—		—
Total liabilities	—		(7		)	(256		)	(263		)	—		(10		)	—		(10		)	—		(4		)	—		(4		)
Total net assets (liabilities)	$	—	$	(7	)	$	(256	)	$	(263	)	$	35	$	—		$	—	$	35		$	10	$	(4	)	$	—	$	6

	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

_________

(a) ComEd excludes cash of $39 million and $36 million at June 30, 2017 and December 31, 2016 and restricted cash of $12 million and $2 million at June 30, 2017 and December 31, 2016.  PECO excludes cash of $21 million and $22 million at June 30, 2017 and December 31, 2016.  BGE excludes cash of $12 million and $13 million at June 30, 2017 and December 31, 2016 and restricted cash of $3 million at June 30, 2017 and includes long term restricted cash of $2 million at June 30, 2017 and 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 $237 million, respectively, at June 30, 2017, and $19 million and $239 million, respectively, at December 31, 2016, related to floating-to-fixed energy swap contracts with unaffiliated suppliers.

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 June 30, 2017 and December 31, 2016:

	Successor
	As of June 30, 2017										As of December 31, 2016
PHI	Level 1		Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total
Assets
Cash equivalents(a)	$	189	$	—		$	—	$	189		$	217		$	—		$	—	$	217
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	73		—			—		73			73			—			—		73
Fixed income	—		13			—		13			—			16			—		16
Life insurance contracts	—		23			21		44			—			22			20		42
Rabbi trust investments subtotal	73		36			21		130			73			38			20		131
Total assets	262		36			21		319			290			38			20		348
Liabilities
Deferred compensation obligation	—		(24		)	—		(24		)	—			(28		)	—		(28		)
Total liabilities	—		(24		)	—		(24		)	—			(28		)	—		(28		)
Total net assets	$	262	$	12		$	21	$	295		$	290		$	10		$	20	$	320

	Pepco										DPL										ACE
As of June 30, 2017	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)	$	144	$	—		$	—	$	144		$	—	$	—		$	—	$	—		$	29	$	—	$	—	$	29
Rabbi trust investments
Cash equivalents	43		—			—		43			—		—			—		—			—		—		—		—
Fixed income	—		13			—		13			—		—			—		—			—		—		—		—
Life insurance contracts	—		23			21		44			—		—			—		—			—		—		—		—
Rabbi trust investments subtotal	43		36			21		100			—		—			—		—			—		—		—		—
Total assets	187		36			21		244			—		—			—		—			29		—		—		29
Liabilities
Deferred compensation obligation	—		(4		)	—		(4		)	—		(1		)	—		(1		)	—		—		—		—
Total liabilities	—		(4		)	—		(4		)	—		(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	187	$	32		$	21	$	240		$	—	$	(1	)	$	—	$	(1	)	$	29	$	—	$	—	$	29

	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

_______

(a) PHI excludes cash of $24 million and $19 million at June 30, 2017 and December 31, 2016 and includes long term restricted cash of $22 million and $23 million at June 30, 2017 and December 31, 2016 which is reported in other deferred debits on the balance sheet.  Pepco excludes cash of $9 million at June 30, 2017 and December 31, 2016. DPL excludes cash of $6 million and $4 million at June 30, 2017 and December 31, 2016. ACE excludes cash of $7 million and $3 million at June 30, 2017 and December 31, 2016 and includes long term restricted cash of $22 million and $23 million at June 30, 2017 and December 31, 2016 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.

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

The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis during the three and six months ended June 30, 2017 and 2016:

																		Successor
	Generation														ComEd			PHI					Exelon
Three Months Ended June 30, 2017	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 March 31, 2017	$	683		$	20	$	565			$	40	$	1,308		$	(282	)	$	20	$	—		$	1,046
Total realized / unrealized gains (losses)
Included in net income	1			—		(3		)	(b)	—		(2		)	—			—		—			(2		)
Included in noncurrent payables to affiliates	4			—		—				—		4			—			—		(4		)	—
Included in payable for Zion Station decommissioning	—			1		—				—		1			—			—		—			1
Included in regulatory assets	—			—		—				—		—			26			—		4			30
Change in collateral	—			—		31				—		31			—			—		—			31
Purchases, sales, issuances and settlements
Purchases	19			—		21				1		41			—			—		—			41
Sales	—			—		(13		)		—		(13		)	—			—		—			(13		)
Settlements	(24		)	—		—				—		(24		)	—			—		—			(24		)
Transfers into Level 3	—			—		(8		)		—		(8		)	—			—		—			(8		)
Transfers out of Level 3	—			—		(4		)		—		(4		)	—			—		—			(4		)
Balance at June 30, 2017	$	683		$	21	$	589			$	41	$	1,334		$	(256	)	$	20	$	—		$	1,098
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of June 30, 2017	$	—		$	—	$	43			$	—	$	43		$	—		$	—	$	—		$	43

																			Successor
	Generation															ComEd			PHI						Exelon
Six Months Ended June 30, 2017	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 December 31, 2016	$	677		$	19	$	493			$	42		$	1,231		$	(258	)	$	20		$	—		$	993
Total realized / unrealized gains (losses)
Included in net income	4			—		(46		)	(b)	1			(41		)	—			1			—			(40		)
Included in noncurrent payables to affiliates	13			—		—				—			13			—			—			(13		)	—
Included in payable for Zion Station decommissioning	—			1		—				—			1			—			—			—			1
Included in regulatory assets	—			—		—				—			—			2			—			13			15
Change in collateral	—			—		69				—			69			—			—			—			69
Purchases, sales, issuances and settlements
Purchases	36			1		90				3			130			—			—			—			130
Sales	—			—		(15		)		—			(15		)	—			—			—			(15		)
Issuances	—			—		—				—			—			—			(1		)	—			(1		)
Settlements	(47		)	—		—				—			(47		)	—			—			—			(47		)
Transfers into Level 3	—			—		(10		)		—			(10		)	—			—			—			(10		)
Transfers out of Level 3	—			—		8				(5		)	3			—			—			—			3
Balance as of June 30, 2017	$	683		$	21	$	589			$	41		$	1,334		$	(256	)	$	20		$	—		$	1,098
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of June 30, 2017	$	2		$	—	$	102			$	1		$	105		$	—		$	1		$	—		$	106

___________________

(a) Includes $25 million of increases in fair value and an increase for realized losses due to settlements of $1 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended June 30, 2017. Includes $5 million of decreases in fair value and an increase for realized losses due to settlements of $7 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the six months ended June 30, 2017.

(b) Includes a reduction for the reclassification of $46 million and $148 million of realized gains due to the settlement of derivative contracts for the three and six months ended June 30, 2017.

																		Successor
	Generation														ComEd			PHI						Exelon
Three Months Ended June 30, 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 March 31, 2016	$	684		$	25	$	1,047			$	36	$	1,792		$	(265	)	$	20		$	—		$	1,547
Total realized / unrealized gains (losses)
Included in net income	4			—		(428		)	(b)	—		(424		)	—			1			—			(423		)
Included in noncurrent payables to affiliates	8			—		—				—		8			—			—			(8		)	—
Included in regulatory assets	—			—		—				—		—			44			—			8			52
Change in collateral	—			—		(32		)		—		(32		)	—			—			—			(32		)
Purchases, sales, issuances and settlements
Purchases	85			—		23				1		109			—			—			—			109
Sales	(1		)	—		(1		)		—		(2		)	—			—			—			(2		)
Issuances	—			—		—				—		—			—			(1		)	—			(1		)
Settlements	(65		)	—		—				—		(65		)	—			—			—			(65		)
Transfers into Level 3	—			—		—				—		—			—			—			—			—
Transfers out of Level 3	—			—		—				—		—			—			—			—			—
Balance as of June 30, 2016	$	715		$	25	$	609			$	37	$	1,386		$	(221	)	$	20		$	—		$	1,185
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of June 30, 2016	$	3		$	—	$	(264	)		$	—	$	(261	)	$	—		$	1		$	—		$	(260	)

																		Successor
	Generation														ComEd			PHI(c)						Exelon
Six Months Ended June 30, 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 December 31, 2015	$	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	6			—		(434		)	(b)	—		(428		)	—			1			—			(427		)
Included in noncurrent payables to affiliates	12			—		—				—		12			—			—			(12		)	—
Included in payable for Zion Station decommissioning	—			2		—				—		2			—			—			—			2
Included in regulatory assets	—			—		—				—		—			26			—			12			38
Change in collateral	—			—		(82		)		—		(82		)	—			—			—			(82		)
Purchases, sales, issuances and settlements
Purchases	119			1		82				4		206			—			—			—			206
Sales	(1		)	—		(3		)		—		(4		)	—			—			—			(4		)
Issuances	—			—		—				—		—			—			(1		)	—			(1		)
Settlements	(91		)	—		—				—		(91		)	—			—			—			(91		)
Transfers into Level 3	—			—		2				—		2			—			—			—			2
Transfers out of Level 3	—			—		(7		)		—		(7		)	—			—			—			(7		)
Balance as of June 30, 2016	$	715		$	25	$	609			$	37	$	1,386		$	(221	)	$	20		$	—		$	1,185
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of June 30, 2016	$	4		$	—	$	(45	)		$	—	$	(41	)	$	—		$	1		$	—		$	(40	)

_________

(a) Includes $40 million of increases in fair value and an increase for realized losses due to settlements of $4 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended June 30, 2016. Includes $15 million of increases in fair value and an increase for realized losses due to settlements of $11 million for the six months ended June 30, 2016.

(b) Includes a reduction for the reclassification of $164 million and $389 million of realized gains due to the settlement of derivative contracts recorded in results of operations for the three and six months ended June 30, 2016.

(c) Successor period represents activity from March 24, 2016 through June 30, 2016. See tables below for PHI's predecessor periods, as well as activity for Pepco for the three and six months ended June 30, 2017 and 2016.

	Predecessor
	January 1, 2016 to March 23, 2016
PHI	Preferred Stock			Life Insurance Contracts
Beginning Balance	$	18		$	19
Total realized / unrealized gains (losses)
Included in net income	(18		)	1
Ending Balance	$	—		$	20
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities for the period	$	—		$	1

	Life Insurance Contracts
	Three Months Ended    June 30,					Six Months Ended   June 30,
Pepco	2017		2016			2017			2016
Beginning balance	$	20	$	20		$	20		$	19
Total realized / unrealized gains (losses)
Included in net income	—		1			1			2
Purchases, sales, issuances and settlements
Issuances	—		(1		)	(1		)	(1		)
Ending balance	$	20	$	20		$	20		$	20
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities for the period	$	—	$	1		$	—		$	2

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 three and six months ended June 30, 2017 and 2016:

									Successor
	Generation								PHI		Exelon
	Operating Revenues			Purchased Power and Fuel			Other, net(a)		Other, net(a)		Operating Revenues			Purchased Power and Fuel			Other, net(a)
Total gains (losses) included in net income for the three months ended June 30, 2017	$	(51	)	$	48		$	1	$	—	$	(51	)	$	48		$	1
Total gains (losses) included in net income for the six months ended June 30, 2017	37			(83		)	5		1		37			(83		)	6
Change in the unrealized gains (losses) relating to assets and liabilities held for the three months ended June 30, 2017	—			43			—		—		—			43			—
Change in the unrealized gains (losses) relating to assets and liabilities held for the six months ended June 30, 2017	140			(38		)	3		1		140			(38		)	4

									Successor
	Generation								PHI		Exelon
	Operating Revenues			Purchased Power and Fuel			Other, net(a)		Other, net(a)		Operating Revenues			Purchased Power and Fuel			Other, net(a)
Total gains (losses) included in net income for the three months ended June 30, 2016	$	(462	)	$	34		$	4	$	1	$	(462	)	$	34		$	5
Total gains (losses) included in net income for the six months ended June 30, 2016	(413		)	(21		)	6		1		(413		)	(21		)	7
Change in the unrealized gains (losses) relating to assets and liabilities held for the three months ended June 30, 2016	(274		)	10			3		1		(274		)	10			4
Change in the unrealized gains (losses) relating to assets and liabilities held for the six months ended June 30, 2016	(20		)	(25		)	4		1		(20		)	(25		)	5

	Predecessor
	PHI			Pepco
	January 1, 2016 to March 23, 2016			Three Months Ended    June 30,				Six Months Ended   June 30,
				2017		2016		2017		2016
	Other, net(a)			Other, net(a)
Total gains (losses) included in net income	$	(17	)	$	—	$	1	$	1	$	2
Change in the unrealized gains (losses) relating to assets and liabilities held	1			—		1		1		2

_________

(a) Other, net activity consists of realized and unrealized gains (losses) included in income for the NDT funds held by Generation, accrued interest on a convertible promissory note at Generation and the life insurance contracts held by PHI and Pepco.

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

isk.

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

Type of trade	Fair Value at June 30, 2017			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(c)	$	453		Discounted Cash Flow	Forward power price	$8	-	$124
					Forward gas price	$1.92	-	$9.37
				Option Model	Volatility percentage	11%	-	253%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(c)	$	6		Discounted Cash Flow	Forward power price	$11	-	$73
Mark-to-market derivatives (Exelon and ComEd)	$	(256	)	Discounted Cash Flow	Forward heat rate(b)	9x	-	10x
					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 $130 million as of June 30, 2017.

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	-	$9.2
				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

Exelon Generation Co L L C [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

Generation

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	716	$	—	$	716	$	—	$	716
Long-term debt (including amounts due within one year)(a)	9,754		—		8,061		1,661		9,722
SNF obligation	1,139		—		830		—		830

	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

Commonwealth Edison Co [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

ComEd

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	389	$	—	$	389	$	—	$	389
Long-term debt (including amounts due within one year)(a)	7,036		—		7,728		—		7,728
Long-term debt to financing trusts(b)	205		—		—		223		223

	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

PECO Energy Co [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

PECO

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,580	$	—	$	2,834	$	—	$	2,834
Long-term debt to financing trusts	184		—		—		199		199

	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

Baltimore Gas and Electric Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

BGE

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	85	$	—	$	85	$	—	$	85
Long-term debt (including amounts due within one year)(a)	2,282		—		2,497		—		2,497
Long-term debt to financing trusts(b)	252		—		—		271		271

	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

PEPCO Holdings Inc [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

PHI (Successor)

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	67	$	—	$	67	$	—	$	67
Long-term debt (including amounts due within one year)(a)	5,952		—		5,707		295		6,002

	December 31, 2016
	Carrying Amount		Fair Value
			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

Potomac Electric Power Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

Pepco

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,545	$	—	$	3,065	$	9	$	3,074

	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

Delmarva Power and Light Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

DPL

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	25	$	—	$	25	$	—	$	25
Long-term debt (including amounts due within one year)(a)	1,326		—		1,398		—		1,398

	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

Atlantic City Electric Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

ACE

	June 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	42	$	—	$	42	$	—	$	42
Long-term debt (including amounts due within one year)(a)	1,138		—		980		286		1,266

	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