Fair Value of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 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 September 30, 2017 and December 31, 2016:

Exelon

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	710	$	—	$	710	$	—	$	710
Long-term debt (including amounts due within one year)(a)	34,865		—		34,686		1,949		36,635
Long-term debt to financing trusts(b)	389		—		—		423		423
SNF obligation	1,142		—		857		—		857

	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

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	92	$	—	$	92	$	—	$	92
Long-term debt (including amounts due within one year)(a)	9,528		—		7,915		1,652		9,567
SNF obligation	1,142		—		857		—		857

	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

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	7,600	$	—	$	8,353	$	—	$	8,353
Long-term debt to financing trusts(b)	205		—		—		226		226

	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

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,902	$	—	$	3,181	$	—	$	3,181
Long-term debt to financing trusts	184		—		—		197		197

	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

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,577	$	—	$	2,817	$	—	$	2,817

	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)

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	118	$	—	$	118	$	—	$	118
Long-term debt (including amounts due within one year)(a)	5,930		—		5,729		297		6,026

	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

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,546	$	—	$	3,087	$	9	$	3,096

	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

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	54	$	—	$	54	$	—	$	54
Long-term debt (including amounts due within one year)(a)	1,326		—		1,407		—		1,407

	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

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	65	$	—	$	65	$	—	$	65
Long-term debt (including amounts due within one year)(a)	1,130		—		969		288		1,257

	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 $196 million, $51 million, $53 million, $17 million, $17 million, $6 million, $32 million, $11 million, and $5 million for Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, respectively, as of September 30, 2017. 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.

(b) Includes unamortized debt issuance costs which are not fair valued of $1 million and $1 million for Exelon and ComEd, respectively, as of September 30, 2017.

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

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 September 30, 2017 and December 31, 2016:

	Successor
	As of September 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)	$	184	$	—		$	—	$	184		$	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	72		—			—		72			73			—			—		73
Fixed income	—		13			—		13			—			16			—		16
Life insurance contracts	—		23			21		44			—			22			20		42
Rabbi trust investments subtotal	72		36			21		129			73			38			20		131
Total assets	256		36			21		313			290			38			20		348
Liabilities
Deferred compensation obligation	—		(24		)	—		(24		)	—			(28		)	—		(28		)
Total liabilities	—		(24		)	—		(24		)	—			(28		)	—		(28		)
Total net assets	$	256	$	12		$	21	$	289		$	290		$	10		$	20	$	320

	Pepco										DPL										ACE
As of September 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		$	—	$	—		$	—	$	—		$	31	$	—	$	—	$	31
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			—		—			—		—			31		—		—		31
Liabilities
Deferred compensation obligation	—		(4		)	—		(4		)	—		(1		)	—		(1		)	—		—		—		—
Total liabilities	—		(4		)	—		(4		)	—		(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	187	$	32		$	21	$	240		$	—	$	(1	)	$	—	$	(1	)	$	31	$	—	$	—	$	31

	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 $18 million and $19 million at September 30, 2017 and December 31, 2016 and includes long-term restricted cash of $22 million and $23 million at September 30, 2017 and December 31, 2016 which is reported in other deferred debits on the balance sheet.  Pepco excludes cash of $7 million and $9 million at September 30, 2017 and December 31, 2016. DPL excludes cash of $3 million and $4 million at September 30, 2017 and December 31, 2016. ACE excludes cash of $5 million and $3 million at September 30, 2017 and December 31, 2016 and includes long-term restricted cash of $22 million and $23 million at September 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.

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 September 30, 2017 and December 31, 2016:

	Generation										Exelon
As of September 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)	$	80	$	—	$	—	$	—	$	80	$	944	$	—	$	—	$	—	$	944
NDT fund investments
Cash equivalents(b)	149		86		—		—		235		149		86		—		—		235
Equities	3,935		840		—		2,088		6,863		3,935		840		—		2,088		6,863
Fixed income
Corporate debt	—		1,651		255		—		1,906		—		1,651		255		—		1,906
U.S. Treasury and agencies	1,951		28		—		—		1,979		1,951		28		—		—		1,979
Foreign governments	—		70		—		—		70		—		70		—		—		70
State and municipal debt	—		246		—		—		246		—		246		—		—		246
Other(c)	—		46		—		509		555		—		46		—		509		555
Fixed income subtotal	1,951		2,041		255		509		4,756		1,951		2,041		255		509		4,756
Middle market lending	—		—		416		87		503		—		—		416		87		503
Private equity	—		—		—		212		212		—		—		—		212		212
Real estate	—		—		—		449		449		—		—		—		449		449
NDT fund investments subtotal(d)	6,035		2,967		671		3,345		13,018		6,035		2,967		671		3,345		13,018
Pledged assets for Zion Station decommissioning
Cash equivalents	15		—		—		—		15		15		—		—		—		15

	Generation														Exelon
As of September 30, 2017	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Middle market lending	—			—			17			25		42			—			—			17			25		42
Pledged assets for Zion Station decommissioning subtotal(e)	15			—			17			25		57			15			—			17			25		57
Rabbi trust investments
Cash equivalents	5			—			—			—		5			77			—			—			—		77
Mutual funds	22			—			—			—		22			56			—			—			—		56
Fixed income	—			—			—			—		—			—			13			—			—		13
Life insurance contracts	—			21			—			—		21			—			68			21			—		89
Rabbi trust investments subtotal	27			21			—			—		48			133			81			21			—		235
Commodity derivative assets
Economic hedges	487			2,076			1,628			—		4,191			487			2,076			1,628			—		4,191
Proprietary trading	2			41			42			—		85			2			41			42			—		85
Effect of netting and allocation of collateral(f) (g)	(501		)	(1,828		)	(837		)	—		(3,166		)	(501		)	(1,828		)	(837		)	—		(3,166		)
Commodity derivative assets subtotal	(12		)	289			833			—		1,110			(12		)	289			833			—		1,110
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—			—			—			—		—			—			10			—			—		10
Economic hedges	3			13			—			—		16			3			13			—			—		16
Effect of netting and allocation of collateral	(3		)	(8		)	—			—		(11		)	(3		)	(8		)	—			—		(11		)
Interest rate and foreign currency derivative assets subtotal	—			5			—			—		5			—			15			—			—		15
Other investments	—			—			43			—		43			—			—			43			—		43
Total assets	6,145			3,282			1,564			3,370		14,361			7,115			3,352			1,585			3,370		15,422
Liabilities
Commodity derivative liabilities
Economic hedges	(559		)	(2,062		)	(1,189		)	—		(3,810		)	(559		)	(2,062		)	(1,466		)	—		(4,087		)
Proprietary trading	(3		)	(43		)	(27		)	—		(73		)	(3		)	(43		)	(27		)	—		(73		)
Effect of netting and allocation of collateral(f) (g)	560			2,043			978			—		3,581			560			2,043			978			—		3,581
Commodity derivative liabilities subtotal	(2		)	(62		)	(238		)	—		(302		)	(2		)	(62		)	(515		)	—		(579		)
Interest rate and foreign currency derivative liabilities
Economic hedges	(2		)	(17		)	—			—		(19		)	(2		)	(17		)	—			—		(19		)
Effect of netting and allocation of collateral	2			8			—			—		10			2			8			—			—		10
Interest rate and foreign currency derivative liabilities subtotal	—			(9		)	—			—		(9		)	—			(9		)	—			—		(9		)
Deferred compensation obligation	—			(35		)	—			—		(35		)	—			(137		)	—			—		(137		)
Total liabilities	(2		)	(106		)	(238		)	—		(346		)	(2		)	(208		)	(515		)	—		(725		)
Total net assets	$	6,143		$	3,176		$	1,326		$	3,370	$	14,015		$	7,113		$	3,144		$	1,070		$	3,370	$	14,697

	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
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

	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
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 $282 million and $252 million at September 30, 2017 and December 31, 2016 and restricted cash of $184 million and $157 million at September 30, 2017 and December 31, 2016.  Exelon excludes cash of $382 million and $360 million at September 30, 2017 and December 31, 2016 and restricted cash of $219 million and $180 million at September 30, 2017 and December 31, 2016 and includes long-term restricted cash of $22 million and $25 million at September 30, 2017 and December 31, 2016, which is reported in other deferred debits on the balance sheet.

(b) Includes $75 million and $29 million of cash received from outstanding repurchase agreements at September 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 less than $1 million and $(2) million, which have a total notional amount of $885 million and $933 million at September 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 $52 million and $31 million at September 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 September 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 $59 million, $215 million and $141 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of September 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), $27 million represents variation margin on the exchanges as of September 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 September 30, 2017 and December 31, 2016:

	ComEd											PECO										BGE
As of September 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)	$	273	$	—		$	—		$	273		$	314	$	—		$	—	$	314		$	18	$	—		$	—	$	18
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	273		—			—			273			321		10			—		331			23		—			—		23
Liabilities
Deferred compensation obligation	—		(7		)	—			(7		)	—		(10		)	—		(10		)	—		(4		)	—		(4		)
Mark-to-market derivative liabilities(b)	—		—			(277		)	(277		)	—		—			—		—			—		—			—		—
Total liabilities	—		(7		)	(277		)	(284		)	—		(10		)	—		(10		)	—		(4		)	—		(4		)
Total net assets (liabilities)	$	273	$	(7	)	$	(277	)	$	(11	)	$	321	$	—		$	—	$	321		$	23	$	(4	)	$	—	$	19

	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 $36 million at September 30, 2017 and December 31, 2016 and restricted cash of $2 million at December 31, 2016.  PECO excludes cash of $20 million and $22 million at September 30, 2017 and December 31, 2016.  BGE excludes cash of $11 million and $13 million at September 30, 2017 and December 31, 2016 and restricted cash of $1 million at September 30, 2017 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 $20 million and $257 million, respectively, at September 30, 2017, and $19 million and $239 million, respectively, at December 31, 2016, related to floating-to-fixed energy swap contracts with unaffiliated suppliers.

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 nine months ended September 30, 2017 and 2016:

																				Successor
	Generation															ComEd				PHI				Exelon
Three Months Ended September 30, 2017	NDT Fund Investments			Pledged Assets for Zion Station Decommissioning			Mark-to-Market Derivatives				Other Investments		Total Generation			Mark-to-Market Derivatives				Life Insurance Contracts		Eliminated in Consolidation		Total
Balance as of June 30, 2017	$	683		$	21		$	589			$	41	$	1,334		$	(256	)		$	20	$	—	$	1,098
Total realized / unrealized gains (losses)
Included in net income	—			—			(82		)	(a)	1		(81		)	—				1		—		(80		)
Included in payable for Zion Station decommissioning	—			(4		)	—				—		(4		)	—				—		—		(4		)
Included in regulatory assets	—			—			—				—		—			(21		)	(b)	—		—		(21		)
Change in collateral	—			—			11				—		11			—				—		—		11
Purchases, sales, issuances and settlements
Purchases	19			—			57				1		77			—				—		—		77
Settlements	(31		)	—			10			(c)	—		(21		)	—				—		—		(21		)
Transfers out of Level 3	—			—			10				—		10			—				—		—		10
Balance at September 30, 2017	$	671		$	17		$	595			$	43	$	1,326		$	(277	)		$	21	$	—	$	1,070
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of September 30, 2017	$	—		$	—		$	24			$	1	$	25		$	—			$	1	$	—	$	26

																					Successor
	Generation																ComEd				PHI						Exelon
Nine Months Ended September 30, 2017	NDT Fund Investments			Pledged Assets for Zion Station Decommissioning			Mark-to-Market Derivatives				Other Investments			Total Generation			Mark-to-Market Derivatives				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			—			(110		)	(a)	2			(104		)	—				2			—			(102		)
Included in noncurrent payables to affiliates	13			—			—				—			13			—				—			(13		)	—
Included in payable for Zion Station decommissioning	—			(3		)	—				—			(3		)	—				—			—			(3		)
Included in regulatory assets	—			—			—				—			—			(19		)	(b)	—			13			(6		)
Change in collateral	—			—			81				—			81			—				—			—			81
Purchases, sales, issuances and settlements
Purchases	54			1			146				4			205			—				—			—			205
Sales	—			—			(15		)		—			(15		)	—				—			—			(15		)
Issuances	—			—			—				—			—			—				(1		)	—			(1		)
Settlements	(77		)	—			(8		)	(c)	—			(85		)	—				—			—			(85		)
Transfers into Level 3	—			—			(9		)		—			(9		)	—				—			—			(9		)
Transfers out of Level 3	—			—			17				(5		)	12			—				—			—			12
Balance as of September 30, 2017	$	671		$	17		$	595			$	43		$	1,326		$	(277	)		$	21		$	—		$	1,070
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of September 30, 2017	$	2		$	—		$	161			$	2		$	165		$	—			$	2		$	—		$	167

_________

(a) Includes a reduction for the reclassification of $96 million and $279 million of realized gains due to the settlement of derivative contracts for the three and nine months ended September 30, 2017.

(b) Includes $24 million of decreases in fair value and an increase for realized losses due to settlements of $3 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended September 30, 2017. Includes $32 million of decreases in fair value and an increase for realized losses due to settlements of $13 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the nine months ended September 30, 2017.

(c) Exelon includes the settlement value for any open contracts that were net settled prior to their scheduled maturity within this line item.

																				Successor
	Generation															ComEd				PHI					Exelon
Three Months Ended September 30, 2016	NDT Fund Investments			Pledged Assets for Zion Station Decommissioning			Mark-to-Market Derivatives				Other Investments		Total Generation			Mark-to-Market Derivatives				Life Insurance Contracts		Eliminated in Consolidation			Total
Balance as of June 30, 2016	$	715		$	25		$	609			$	37	$	1,386		$	(221	)		$	20	$	—		$	1,185
Total realized / unrealized gains (losses)
Included in net income	(4		)	—			95			(a)	1		92			—				1		—			93
Included in noncurrent payables to affiliates	6			—			—				—		6			—				—		(6		)	—
Included in payable for Zion Station decommissioning	—			(1		)	—				—		(1		)	—				—		—			(1		)
Included in regulatory assets	—			—			—				—		—			(23		)	(b)	—		6			(17		)
Change in collateral	—			—			31				—		31			—				—		—			31
Purchases, sales, issuances and settlements
Purchases	4			—			207			(c)	3		214			—				—		—			214
Sales	—			(5		)	(2		)		—		(7		)	—				—		—			(7		)
Issuances	—			—			—				—		—			—				—		—			—
Settlements	(28		)	—			—				—		(28		)	—				—		—			(28		)
Transfers into Level 3	—			—			(1		)		1		—			—				—		—			—
Transfers out of Level 3	—			—			(4		)		—		(4		)	—				—		—			(4		)
Balance as of September 30, 2016	$	693		$	19		$	935			$	42	$	1,689		$	(244	)		$	21	$	—		$	1,466
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of September 30, 2016	$	3		$	—		$	285			$	—	$	288		$	—			$	—	$	—		$	288

																				Successor
	Generation															ComEd				PHI(d)						Exelon
Nine Months Ended September 30, 2016	NDT Fund Investments			Pledged Assets for Zion Station Decommissioning			Mark-to-Market Derivatives				Other Investments		Total Generation			Mark-to-Market Derivatives				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	2			—			(339		)	(a)	1		(336		)	—				2			—			(334		)
Included in noncurrent payables to affiliates	18			—			—				—		18			—				—			(18		)	—
Included in payable for Zion Station decommissioning	—			1			—				—		1			—				—			—			1
Included in regulatory assets	—			—			—				—		—			3			(b)	—			18			21
Change in collateral	—			—			(51		)		—		(51		)	—				—			—			(51		)
Purchases, sales, issuances and settlements
Purchases	123			1			289			(c)	7		420			—				—			—			420
Sales	(1		)	(5		)	(5		)		—		(11		)	—				—			—			(11		)
Issuances	—			—			—				—		—			—				(1		)	—			(1		)
Settlements	(119		)	—			—				—		(119		)	—				—			—			(119		)
Transfers into Level 3	—			—			1				1		2			—				—			—			2
Transfers out of Level 3	—			—			(11		)		—		(11		)	—				—			—			(11		)
Balance as of September 30, 2016	$	693		$	19		$	935			$	42	$	1,689		$	(244	)		$	21		$	—		$	1,466
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of September 30, 2016	$	7		$	—		$	240			$	—	$	247		$	—			$	1		$	—		$	248

_________

(a) Includes a reduction for the reclassification of $190 million and $579 million of realized gains due to the settlement of derivative contracts recorded in results of operations for the three and nine months ended September 30, 2016.

(b) Includes $25 million of decreases in fair value and an increase for realized losses due to settlements of $2 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended September 30, 2016. Includes $10 million of decreases in fair value and an increase for realized losses due to settlements of $13 million for the nine months ended September 30, 2016.

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

(d) Successor period represents activity from March 24, 2016 through September 30, 2016. See tables below for PHI's predecessor periods, as well as activity for Pepco for the three and nine months ended September 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    September 30,				Nine Months Ended   September 30,
Pepco	2017		2016		2017			2016
Beginning balance	$	20	$	20	$	20		$	19
Total realized / unrealized gains (losses)
Included in net income	1		1		2			3
Purchases, sales, issuances and settlements
Issuances	—		—		(1		)	(1		)
Ending balance	$	21	$	21	$	21		$	21
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		$	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 nine months ended September 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 September 30, 2017	$	(3	)	$	(69	)	$	1	$	1	$	(3	)	$	(69	)	$	2
Total gains (losses) included in net income for the nine months ended September 30, 2017	34			(152		)	6		2		34			(152		)	8
Change in the unrealized gains (losses) relating to assets and liabilities held for the three months ended September 30, 2017	47			(23		)	1		1		47			(23		)	2
Change in the unrealized gains (losses) relating to assets and liabilities held for the nine months ended September 30, 2017	222			(61		)	4		2		222			(61		)	6

										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 September 30, 2016	$	180		$	(85	)	$	(4	)	$	1	$	180		$	(85	)	$	(3	)
Total gains (losses) included in net income for the nine months ended September 30, 2016	(232		)	(107		)	2			2		(232		)	(107		)	4
Change in the unrealized gains (losses) relating to assets and liabilities held for the three months ended September 30, 2016	323			(38		)	3			—		323			(38		)	3
Change in the unrealized gains (losses) relating to assets and liabilities held for the nine months ended September 30, 2016	303			(63		)	7			1		303			(63		)	8

	Predecessor
	PHI			Pepco
	January 1, 2016 to March 23, 2016			Three Months Ended    September 30,				Nine Months Ended   September 30,
				2017		2016		2017		2016
	Other, net(a)			Other, net(a)
Total gains (losses) included in net income	$	(17	)	$	1	$	1	$	2	$	3
Change in the unrealized gains (losses) relating to assets and liabilities held	1			1		—		2		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 September 30, 2017			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(b)	$	439		Discounted Cash Flow	Forward power price	$7	-	$124
					Forward gas price	$1.84	-	$9.43
				Option Model	Volatility percentage	9%	-	114%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(b)	$	15		Discounted Cash Flow	Forward power price	$12	-	$69
Mark-to-market derivatives (Exelon and ComEd)	$	(277	)	Discounted Cash Flow	Forward heat rate(c)	9x	-	10x
					Marketability reserve	3%	-	8%
					Renewable factor	88%	-	125%

_________

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

(b) The fair values do not include cash collateral posted on level three positions of $141 million as of September 30, 2017.

(c) 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.

Type of trade	Fair Value at December 31, 2016			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(b)	$	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)(b)	$	(3	)	Discounted Cash Flow	Forward power price	$19	-	$79
Mark-to-market derivatives (Exelon and ComEd)	$	(258	)	Discounted Cash Flow	Forward heat rate(c)	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) The fair values do not include cash collateral posted on level three positions of $61 million as of December 31, 2016.

(c) 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.

Exelon Generation Co L L C [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

Generation

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	92	$	—	$	92	$	—	$	92
Long-term debt (including amounts due within one year)(a)	9,528		—		7,915		1,652		9,567
SNF obligation	1,142		—		857		—		857

	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

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	7,600	$	—	$	8,353	$	—	$	8,353
Long-term debt to financing trusts(b)	205		—		—		226		226

	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

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,902	$	—	$	3,181	$	—	$	3,181
Long-term debt to financing trusts	184		—		—		197		197

	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

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,577	$	—	$	2,817	$	—	$	2,817

	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)

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	118	$	—	$	118	$	—	$	118
Long-term debt (including amounts due within one year)(a)	5,930		—		5,729		297		6,026

	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

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,546	$	—	$	3,087	$	9	$	3,096

	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

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	54	$	—	$	54	$	—	$	54
Long-term debt (including amounts due within one year)(a)	1,326		—		1,407		—		1,407

	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

	September 30, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	65	$	—	$	65	$	—	$	65
Long-term debt (including amounts due within one year)(a)	1,130		—		969		288		1,257

	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