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Fair Value of Financial Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2022
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, 2022 and 2021. The Registrants have no financial liabilities classified as Level 1 or measured using the NAV practical expedient.
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, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
Level 2Level 3TotalLevel 2Level 3Total
Long-Term Debt, including amounts due within one year(a)
Exelon$37,074 $29,902 $2,327 $32,229 $32,902 $34,897 $2,217 $37,114 
ComEd10,518 9,006 — 9,006 9,773 11,305 — 11,305 
PECO4,612 3,864 50 3,914 4,197 4,740 50 4,790 
BGE4,207 3,613 — 3,613 3,961 4,406 — 4,406 
PHI8,120 4,507 2,277 6,784 7,547 5,970 2,167 8,137 
Pepco3,751 2,229 1,205 3,434 3,445 3,201 975 4,176 
DPL1,938 1,164 458 1,622 1,810 1,426 552 1,978 
ACE1,757 909 614 1,523 1,582 1,091 641 1,732 
Long-Term Debt to Financing Trusts
Exelon$390 $— $384 $384 $390 $— $470 $470 
ComEd205 — 204 204 205 — 248 248 
PECO184 — 180 180 184 — 222 222 
__________
(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 16 — 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, 2022 and 2021. The Registrants have no financial assets or liabilities measured using the NAV practical expedient:
Exelon
As of December 31, 2022As of December 31, 2021
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$664 $— $— $664 $524 $— $— $524 
Rabbi trust investments
Cash equivalents62 — — 62 60 — — 60 
Mutual funds49 — — 49 60 — — 60 
Fixed income— 7 — 7 — 10 — 10 
Life insurance contracts— 58 40 98 — 61 37 98 
Rabbi trust investments subtotal111 65 40 216 120 71 37 228 
Interest rate derivative assets
Derivatives designated as hedging instruments— 6 — 6 — — — — 
Economic hedges— 5 — 5 — — — — 
Interest rate derivative assets subtotal— 11 — 11 — — — — 
Total assets775 76 40 891 644 71 37 752 
Liabilities
Mark-to-market derivative liabilities— — (84)(84)— — (219)(219)
Interest rate derivative liabilities
Derivatives designated as hedging instruments— (4)— (4)— — — — 
Economic hedges— (3)— (3)— — — — 
Interest rate derivative liabilities subtotal— (7)— (7)— — — — 
Deferred compensation obligation— (75)— (75)— (131)— (131)
Total liabilities— (82)(84)(166)— (131)(219)(350)
Total net assets (liabilities)$775 $(6)$(44)$725 $644 $(60)$(182)$402 
__________
(a)Excludes cash of $345 million and $464 million as of December 31, 2022 and 2021, respectively, and restricted cash of $81 million and $49 million as of December 31, 2022 and 2021, respectively, and includes long-term restricted cash of $117 million and $44 million as of December 31, 2022 and 2021, respectively, which is reported in Other deferred debits in the Consolidated Balance Sheets.
ComEd, PECO, and BGE
ComEdPECOBGE
As of December 31, 2022Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$392 $— $— $392 $10 $— $— $10 $23 $— $— $23 
Rabbi trust investments
Mutual funds— — — — 7 — — 7 7 — — 7 
Life insurance contracts— — — — — 15 — 15 — — — — 
Rabbi trust investments subtotal— — — — 7 15 — 22 7 — — 7 
Total assets392 — — 392 17 15 — 32 30 — — 30 
Liabilities
Mark-to-market derivative liabilities(b)
— — (84)(84)— — — — — — — — 
Deferred compensation obligation— (8)— (8)— (7)— (7)— (4)— (4)
Total liabilities— (8)(84)(92)— (7)— (7)— (4)— (4)
Total net assets (liabilities)$392 $(8)$(84)$300 $17 $8 $— $25 $30 $(4)$— $26 
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 
__________
(a)ComEd excludes cash of $42 million and $105 million as of December 31, 2022 and 2021, respectively, and restricted cash of $77 million and $42 million as of December 31, 2022 and 2021, respectively, and includes long-term restricted cash of $117 million and $43 million as of December 31, 2022 and 2021, respectively, which is reported in Other deferred debits in the Consolidated Balance Sheets. PECO excludes cash of $58 million and $35 million as of December 31, 2022 and 2021, respectively. BGE excludes cash of $43 million and $51 million as of December 31, 2022 and 2021, respectively, and restricted cash of $1 million and $4 million as of December 31, 2022 and 2021, respectively.
(b)The Level 3 balance consists of the current and noncurrent liability of $5 million and $79 million, respectively, as of December 31, 2022, and $18 million and $201 million, respectively, as of December 31, 2021 related to floating-to-fixed energy swap contracts with unaffiliated suppliers.
PHI, Pepco, DPL, and ACE
As of December 31, 2022As of December 31, 2021
PHILevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$205 $— $— $205 $110 $— $— $110 
Rabbi trust investments
Cash equivalents59 — — 59 59 — — 59 
Mutual funds11 — — 11 14 — — 14 
Fixed income— 7 — 7 — 10 — 10 
Life insurance contracts— 22 39 61 — 27 35 62 
Rabbi trust investments subtotal70 29 39 138 73 37 35 145 
Total assets275 29 39 343 183 37 35 255 
Liabilities
Deferred compensation obligation— (14)— (14)— (18)— (18)
Total liabilities— (14)— (14)— (18)— (18)
Total net assets$275 $15 $39 $329 $183 $19 $35 $237 
PepcoDPLACE
As of December 31, 2022Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash equivalents(a)
$51 $— $— $51 $121 $— $— $121 $1 $— $— $1 
Rabbi trust investments
Cash equivalents59 — — 59 — — — — — — — — 
Life insurance contracts— 22 38 60 — — — — — — — — 
Rabbi trust investments subtotal59 22 38 119 — — — — — — — — 
Total assets110 22 38 170 121 — — 121 1 — — 1 
Liabilities
Deferred compensation obligation— (1)— (1)— — — — — — — — 
Total liabilities— (1)— (1)— — — — — — — — 
Total net assets$110 $21 $38 $169 $121 $— $— $121 $1 $— $— $1 
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 $— $— $— $— 
__________
(a)PHI excludes cash of $165 million and $100 million as of December 31, 2022 and 2021, respectively, and restricted cash of $3 million and $3 million as of December 31, 2022 and 2021, respectively. Pepco excludes cash of $45 million and $34 million as of December 31, 2022 and 2021, respectively, and restricted cash of $3 million and $3 million as of December 31, 2022 and 2021, respectively. DPL excludes cash of $31 million and $28 million as of December 31, 2022 and 2021, respectively. ACE excludes cash of $71 million and $29 million as of December 31, 2022 and 2021, respectively.
Fair Value Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis during the years ended December 31, 2022 and 2021:
ExelonComEdPHI and Pepco
For the year ended December 31, 2022TotalMark-to-Market
Derivatives		Life Insurance Contracts
Balance as of December 31, 2021$(182)$(219)$35 
Total realized / unrealized gains (losses)
Included in net income(a)
5 — 5 
Included in regulatory assets/liabilities135 135 
(b)
— 
Purchases, sales, and settlements
Settlements— — — 
Transfers out of Level 3(2)— — 
Balance as of December 31, 2022$(44)$(84)
(c)
$40 
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, 20225 $— $5 
ExelonComEdPHI and Pepco
For the year ended December 31, 2021TotalMark-to-Market
Derivatives		Life Insurance Contracts
Balance as of December 31, 2020$(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, 2021$3 $— $3 
__________
(a)Classified in Operating and maintenance expense in the Consolidated Statements of Operations and Comprehensive Income.
(b)Includes $136 million of increases in fair value and a decrease 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 year ended December 31, 2022. 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.
(c)The balance of the current and noncurrent asset was effectively zero as of December 31, 2022. The balance consists of a current and noncurrent liability of $5 million and $79 million, respectively, as of December 31, 2022.
Fair Value Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis, Valuation Technique
The following table discloses the significant unobservable inputs to the forward curve used to value mark-to-market derivatives:
Type of tradeFair Value as of December 31, 2022Fair Value as of December 31, 2021Valuation
Technique		Unobservable
Input		2022 Range & Arithmetic Average2021 Range & Arithmetic Average
Mark-to-market derivatives$(84)$(219)Discounted Cash Flow
Forward power price(a)
$34.78 -$75.71 $48.44 $28.65 -$47.10 $33.96 
__________
(a)An increase to the forward power price would increase the fair value.