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Fair Value of Financial Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value of Financial Liabilities Recorded at Amortized Cost
The following tables present the carrying amounts and fair values of the Registrants’ short-term liabilities, long-term debt, and trust preferred securities (long-term debt to financing trusts or junior subordinated debentures) as of December 31, 2021 and 2020. The Registrants have no financial liabilities classified as Level 1.
The carrying amounts of the Registrants’ short-term liabilities as presented in their Consolidated Balance Sheets are representative of their fair value (Level 2) because of the short-term nature of these instruments.
December 31, 2021December 31, 2020
Carrying AmountFair ValueCarrying AmountFair Value
Level 2Level 3TotalLevel 2Level 3Total
Long-Term Debt, including amounts due within one year(a)
Exelon$32,902 $34,897 $2,217 $37,114 $31,149 $35,416 $1,856 $37,272 
ComEd9,773 11,305 — 11,305 8,983 11,117 — 11,117 
PECO4,197 4,740 50 4,790 3,753 4,553 50 4,603 
BGE3,961 4,406 — 4,406 3,664 4,366 — 4,366 
PHI7,547 5,970 2,167 8,137 7,006 6,099 1,806 7,905 
Pepco3,445 3,201 975 4,176 3,165 3,336 748 4,084 
DPL1,810 1,426 552 1,978 1,677 1,484 455 1,939 
ACE1,582 1,091 641 1,732 1,413 1,018 602 1,620 
Long-Term Debt to Financing Trusts
Exelon$390 $— $470 $470 $390 $— $467 $467 
ComEd205 — 248 248 205 — 246 246 
PECO184 — 222 222 184 — 221 221 
__________
(a) Includes unamortized debt issuance costs, unamortized debt discount and premium, net, purchase accounting fair value adjustments, and finance lease liabilities which are not fair valued. Refer to Note 15 — Debt and Credit Agreements for unamortized debt issuance costs, unamortized debt discount and premium, net, and purchase accounting fair value adjustments and Note 10 — Leases for finance lease liabilities.
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 in the Registrants' Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of December 31, 2021 and 2020:
Exelon
As of December 31, 2021As of December 31, 2020
Level 1Level 2Level 3
Total(a)
Level 1Level 2Level 3
Total(a)
Assets
Cash equivalents(b)
$524 $— $— $524 $558 $— $— $558 
Rabbi trust investments
Cash equivalents60 — — 60 59 — — 59 
Mutual funds60 — — 60 54 — — 54 
Fixed income— 10 — 10 — 11 — 11 
Life insurance contracts— 61 37 98 — 60 34 94 
Rabbi trust investments subtotal120 71 37 228 113 71 34 218 
Total assets644 71 37 752 671 71 34 776 
Liabilities
Mark-to-market derivative liabilities— — (219)(219)— — (301)(301)
Deferred compensation obligation— (131)— (131)— (121)— (121)
Total liabilities— (131)(219)(350)— (121)(301)(422)
Total net assets$644 $(60)$(182)$402 $671 $(50)$(267)$354 
__________
(a)There were no assets and liabilities that were not subject to leveling as of December 31, 2021 and 2020.
(b)Excludes cash of $464 million and $237 million as of December 31, 2021 and 2020, respectively, and restricted cash of $49 million and $39 million as of December 31, 2021 and 2020, respectively, and includes long-term restricted cash of $44 million and $53 million as of December 31, 2021 and 2020, respectively, which is reported in Other deferred debits in the Consolidated Balance Sheets.

ComEd, PECO, and BGE
ComEdPECOBGE
As of December 31, 2021Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$237 $— $— $237 $9 $— $— $9 $— $— $— $— 
Rabbi trust investments
Mutual funds— — — — 11 — — 11 14 — — 14 
Life insurance contracts— — — — — 16 — 16 — — — — 
Rabbi trust investments subtotal— — — — 11 16 — 27 14 — — 14 
Total assets237 — — 237 20 16 — 36 14 — — 14 
Liabilities
Mark-to-market derivative liabilities(b)
— — (219)(219)— — — — — — — — 
Deferred compensation obligation— (10)— (10)— (9)— (9)— (7)— (7)
Total liabilities— (10)(219)(229)— (9)— (9)— (7)— (7)
Total net assets (liabilities)$237 $(10)$(219)$8 $20 $7 $— $27 $14 $(7)$— $7 
ComEdPECOBGE
As of December 31, 2020Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$285 $— $— $285 $8 $— $— $8 $120 $— $— $120 
Rabbi trust investments
Mutual funds— — — — 9 — — 9 10 — — 10 
Life insurance contracts— — — — — 13 — 13 — — — — 
Rabbi trust investments subtotal— — — — 9 13 — 22 10 — — 10 
Total assets285 — — 285 17 13 — 30 130 — — 130 
Liabilities
Mark-to-market derivative liabilities(b)
— — (301)(301)— — — — — — — — 
Deferred compensation obligation— (8)— (8)— (9)— (9)— (5)— (5)
Total liabilities— (8)(301)(309)— (9)— (9)— (5)— (5)
Total net assets (liabilities)$285 $(8)$(301)$(24)$17 $4 $— $21 $130 $(5)$— $125 
__________
(a)ComEd excludes cash of $105 million and $83 million as of December 31, 2021 and 2020, respectively, and restricted cash of $42 million and $37 million as of December 31, 2021 and 2020, respectively, and includes long-term restricted cash of $43 million as of both December 31, 2021 and 2020, which is reported in Other deferred debits in the Consolidated Balance Sheets. PECO excludes cash of $35 million and $18 million as of December 31, 2021 and 2020, respectively. BGE excludes cash of $51 million and $24 million as of December 31, 2021 and 2020, respectively, and restricted cash of $4 million and $1 million as of December 31, 2021 and 2020, respectively.
(b)The Level 3 balance consists of the current and noncurrent liability of $18 million and $201 million, respectively, as of December 31, 2021 and $33 million and $268 million, respectively, as of December 31, 2020 related to floating-to-fixed energy swap contracts with unaffiliated suppliers.
PHI, Pepco, DPL, and ACE
As of December 31, 2021As of December 31, 2020
PHILevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$110 $— $— $110 $86 $— $— $86 
Rabbi trust investments
Cash equivalents59 — — 59 55 — — 55 
Mutual funds14 — — 14 14 — — 14 
Fixed income— 10 — 10 — 11 — 11 
Life insurance contracts— 27 35 62 — 26 34 60 
Rabbi trust investments subtotal73 37 35 145 69 37 34 140 
Total assets183 37 35 255 155 37 34 226 
Liabilities
Deferred compensation obligation— (18)— (18)— (17)— (17)
Total liabilities— (18)— (18)— (17)— (17)
Total net assets$183 $19 $35 $237 $155 $20 $34 $209 
PepcoDPLACE
As of December 31, 2021Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$31 $— $— $31 $43 $— $— $43 $— $— $— $— 
Rabbi trust investments
Cash equivalents58 — — 58 — — — — — — — — 
Life insurance contracts— 27 35 62 — — — — — — — — 
Rabbi trust investments subtotal58 27 35 120 — — — — — — — — 
Total assets89 27 35 151 43 — — 43 — — — — 
Liabilities
Deferred compensation obligation— (2)— (2)— — — — — — — — 
Total liabilities— (2)— (2)— — — — — — — — 
Total net assets$89 $25 $35 $149 $43 $— $— $43 $— $— $— $— 
PepcoDPLACE
As of December 31, 2020Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$35 $— $— $35 $— $— $— $— $13 $— $— $13 
Rabbi trust investments
Cash equivalents53 — — 53 — — — — — — — — 
Fixed income— 2 — 2 — — — — — — — — 
Life insurance contracts— 26 34 60 — — — — — — — — 
Rabbi trust investments subtotal53 28 34 115 — — — — — — — — 
Total assets88 28 34 150 — — — — 13 — — 13 
Liabilities
Deferred compensation obligation— (2)— (2)— — — — — — — — 
Total liabilities— (2)— (2)— — — — — — — — 
Total net assets$88 $26 $34 $148 $— $— $— $— $13 $— $— $13 
__________
(a)PHI excludes cash of $100 million and $74 million as of December 31, 2021 and 2020, respectively, and restricted cash of $3 million and none as of December 31, 2021 and 2020, respectively, and includes long-term restricted cash of none and $10 million as of December 31, 2021 and 2020, respectively, which is reported in Other deferred debits in the Consolidated Balance Sheets. Pepco excludes cash of $34 million and $30 million as of December 31, 2021 and 2020, respectively, and restricted cash of $3 million and none as of December 31, 2021 and 2020, respectively. DPL excludes cash of $28 million and $15 million as of December 31, 2021 and 2020, respectively. ACE excludes cash of $29 million and $17 million as of December 31, 2021 and 2020, respectively, and includes long-term restricted cash of none and $10 million as of December 31, 2021 and 2020, respectively, which is reported in Other deferred debits in the Consolidated Balance Sheets.
Fair Value Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis during the years ended December 31, 2021 and 2020:
ExelonComEdPHI and Pepco
For the year ended December 31, 2021TotalMark-to-Market
Derivatives		Life Insurance Contracts
Balance as of January 1, 2021$(267)$(301)$34 
Total realized / unrealized gains (losses)
Included in net income(a)
3 — 3 
Included in regulatory assets/liabilities82 82 
(b)
— 
Purchases, sales, and settlements
Settlements(2)— (2)
Transfers into Level 32 — — 
Balance as of December 31, 2021$(182)$(219)$35 
The amount of total gains included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of December 31, 20213 $— $3 
ExelonComEdPHI and Pepco
For the year ended December 31, 2020TotalMark-to-Market
Derivatives		Life Insurance Contracts
Balance as of January 1, 2020$(260)$(301)$41 
Total realized / unrealized gains (losses)
Included in net income(a)
3 — 3 
Included in regulatory assets/liabilities— — 
(b)
— 
Purchases, sales, and settlements
Settlements(10)— (10)
Balance as of December 31, 2020$(267)$(301)$34 
The amount of total gains included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of December 31, 2020$3 $— $3 
__________
(a)Classified in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income.
(b)Includes $62 million of increases in fair value and an increase for realized losses due to settlements of $20 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the year ended December 31, 2021. Includes $33 million of decreases in fair value and an increase for realized losses due to settlements of $33 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the year ended December 31, 2020.
Fair Value Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis, Valuation Technique
The following table discloses the significant inputs to the forward curve used to value mark-to-market derivatives:
Type of tradeFair Value as of December 31, 2021Fair Value as of December 31, 2020Valuation
Technique		Unobservable
Input		2021 Range & Arithmetic Average2020 Range & Arithmetic Average
Mark-to-market derivatives$(219)$(301)Discounted Cash Flow
Forward heat rate(a)
9x-10x9.13x8x-9x8.85x
Marketability
reserve		3%-7%4.77%3%-8%4.93%
Renewable
factor		92%-120%97%91%-123%99%
__________
(a)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.