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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Derivative Financial Instruments [Line Items]

Gain or loss on the hedged items and the offsetting loss or gain on the related interest rate swaps in interest expense

__________

For the three months ended March 31, 2014 and 2013, the loss on Generation swaps included $4 million and $4 million realized in earnings, respectively, with an immaterial amount excluded from hedge effectiveness testing.

	Generation										Other		Exelon
Description	Derivatives Designated as Hedging Instruments		Economic Hedges		Proprietary Trading^(a)		Collateral and Netting^(b)		Subtotal		Derivatives Designated as Hedging Instruments		Total

Mark-to-market derivative assets
(current assets)	$	0	$	4	$	12	$	(14)	$	2	$	0	$	2
Mark-to-market derivative assets
(noncurrent assets)		20		2		13		(8)		27		10		37
Total mark-to-market derivative assets	$	20	$	6	$	25	$	(22)	$	29	$	10	$	39

Mark-to-market derivative liabilities
(current liabilities)	$	(1)	$	(3)	$	(15)	$	17	$	(2)	$	0	$	(2)
Mark-to-market derivative liabilities
(noncurrent liabilities)		(15)		(1)		(10)		11		(15)		(1)		(16)
Total mark-to-market derivative liabilities	$	(16)	$	(4)	$	(25)	$	28	$	(17)	$	(1)	$	(18)
Total mark-to-market derivative
net assets (liabilities)	$	4	$	2	$	0	$	6	$	12	$	9	$	21

Generation enters into interest rate derivative contracts to economically hedge risk associated with the interest rate component of commodity positions. The characterization of the interest rate derivative contracts between the proprietary trading activity in the above table is driven by the corresponding characterization of the underlying commodity position that gives rise to the interest rate exposure. Generation does not utilize proprietary trading interest rate derivatives with the objective of benefiting from shifts or changes in market interest rates.
Represents the netting of fair value balances with the same counterparty and any associated cash collateral.

	Generation										Other		Exelon
Description	Derivatives Designated as Hedging Instruments		Economic Hedges		Proprietary Trading (a)		Collateral and Netting(b)		Subtotal		Derivatives Designated as Hedging Instruments		Total

Mark-to-market derivative assets
(current assets)	$	0	$	3	$	15	$	(19)	$	(1)	$	0	$	(1)
Mark-to-market derivative assets
(noncurrent assets)		26		3		15		(13)		31		7		38
Total mark-to-market derivative assets	$	26	$	6	$	30	$	(32)	$	30	$	7	$	37

Mark-to-market derivative liabilities
(current liabilities)	$	(1)	$	(1)	$	(18)	$	19	$	(1)	$	0	$	(1)
Mark-to-market derivative liabilities
(noncurrent liabilities)		(10)		(1)		(13)		13		(11)		(4)		(15)
Total mark-to-market derivative liabilities	$	(11)	$	(2)	$	(31)	$	32	$	(12)	$	(4)	$	(16)

Total mark-to-market derivative
net assets (liabilities)	$	15	$	4	$	(1)	$	0	$	18	$	3	$	21

Generation enters into interest rate derivative contracts to economically hedge risk associated with the interest rate component of commodity positions. The characterization of the interest rate derivative contracts between the proprietary trading activity in the above table is driven by the corresponding characterization of the underlying commodity position that gives rise to the interest rate exposure. Generation does not utilize proprietary trading interest rate derivatives with the objective of benefiting from shifts or changes in market interest rates.
Represents the netting of fair value balances with the same counterparty and any associated cash collateral.


		Three Months Ended March 31,
	Income Statement	2014		2013		2014		2013
	Location	Gain (Loss) on Swaps				Gain (Loss) on Borrowings
Generation	Interest expense^(a)	$	(5)	$	(4)	$	(1)	$	(1)
Exelon	Interest expense	$	2	$	(6)	$	4	$	1

	Generation								ComEd		Exelon
	Economic		Proprietary		Collateral and				Economic		Total
Derivatives	Hedges		Trading		Netting^(a)		Subtotal ^(b)		Hedges^(c)		Derivatives

Mark-to-market derivative assets
(current assets)	$	3,401	$	1,146	$	(3,793)	$	754	$	0	$	754
Mark-to-market derivative assets
(noncurrent assets)		1,240		195		(901)		534		0		534
Total mark-to-market derivative
assets	$	4,641	$	1,341	$	(4,694)	$	1,288	$	0	$	1,288

Mark-to-market derivative liabilities
(current liabilities)	$	(3,348)	$	(1,112)	$	4,224	$	(236)	$	(13)	$	(249)
Mark-to-market derivative liabilities
(noncurrent liabilities)		(947)		(206)		1,037		(116)		(155)		(271)
Total mark-to-market derivative
liabilities	$	(4,295)	$	(1,318)	$	5,261	$	(352)	$	(168)	$	(520)

Total mark-to-market derivative
net assets (liabilities)	$	346	$	23	$	567	$	936	$	(168)	$	768

__________

(a) Exelon and Generation net all available amounts allowed under the derivative accounting guidance on the balance sheet. These amounts include unrealized derivative transactions with the same counterparty under legally enforceable master netting agreements and cash collateral. In some cases Exelon and Generation may have other offsetting exposures, subject to a master netting or similar agreement, such as trade receivables and payables, transactions that do not qualify as derivatives, letters of credit and other forms of non-cash collateral. These are not reflected in the table above.

(b) Current and noncurrent assets are shown net of collateral of $(179) million and $(36) million, respectively, and current and noncurrent liabilities are shown net of collateral of $(252) million and $(100) million, respectively. The total cash collateral posted, net of cash collateral received and offset against mark-to-market assets and liabilities was $567 million at March 31, 2014.

(c) Includes current and noncurrent liabilities relating to floating-to-fixed energy swap contracts with unaffiliated suppliers.

		Generation								ComEd		Exelon
		Economic		Proprietary		Collateral and				Economic		Total
Description		Hedges		Trading		Netting^(a)		Subtotal^(b)		Hedges^(c)		Derivatives

Mark-to-market derivative assets
(current assets)		$	2,616	$	1,476	$	(3,364)	$	728	$	0	$	728
Mark-to-market derivative assets
(noncurrent assets)			1,344		285		(1,060)		569		0		569
Total mark-to-market derivative
assets		$	3,960	$	1,761	$	(4,424)	$	1,297	$	0	$	1,297

Mark-to-market derivative liabilities
(current liabilities)		$	(2,023)	$	(1,410)	$	3,292	$	(141)	$	(17)	$	(158)
Mark-to-market derivative liabilities
(noncurrent liabilities)			(804)		(293)		988		(109)		(176)		(285)

Total mark-to-market derivative
	liabilities	$	(2,827)	$	(1,703)	$	4,280	$	(250)	$	(193)	$	(443)

Total mark-to-market derivative
	net assets (liabilities)	$	1,133	$	58	$	(144)	$	1,047	$	(193)	$	854

__________

(a) Exelon and Generation net all available amounts allowed under the derivative accounting guidance on the balance sheet. These amounts include unrealized derivative transactions with the same counterparty under legally enforceable master netting agreements and cash collateral. In some cases Exelon and Generation may have other offsetting exposures, subject to a master netting or similar agreement, such as trade receivables and payables, transactions that do not qualify as derivatives, and letters of credit. These are not reflected in the table above.

(b) Current and noncurrent assets are shown net of collateral of $84 million and $72 million, respectively, and current and noncurrent liabilities are shown net of collateral of $(12) million and $0 million, respectively. The total cash collateral received, net of cash collateral posted and offset against mark-to-market assets and liabilities was $144 million at December 31, 2013.

(c) Includes current and noncurrent liabilities relating to floating-to-fixed energy swap contracts with unaffiliated suppliers.

Other Derivatives - Gain (loss) and reclassification

	Generation							Intercompany Eliminations	Exelon
			Purchased
	Operating		Power				Operating
Three Months Ended March 31, 2014	Revenues		and Fuel		Total		Revenues		Total
Change in fair value	$	(853)	$	171	$	(682)	$	0	$	(682)
Reclassification to realized at
settlement		93		(141)		(48)		0		(48)
Net mark-to-market gains
(losses)	$	(760)	$	30	$	(730)	$	0	$	(730)

	Exelon and Generation							Intercompany Eliminations	Exelon
			Purchased
	Operating		Power				Operating
Three Months Ended March 31, 2013	Revenues		and Fuel		Total		Revenues ^(a)		Total
Change in fair value	$	(485)	$	149	$	(336)	$	7	$	(329)
Reclassification to realized at
settlement		(101)		34		(67)		10		(57)
Net mark-to-market gains
(losses)	$	(586)	$	183	$	(403)	$	17	$	(386)

Prior to the merger, the five-year financial swap contract between Generation and ComEd was de-designated. As a result, all prospective changes in fair value were recorded to operating revenues and eliminated in consolidation.

		Three Months Ended
	Location on Income	March 31,
	Statement	2014		2013
Change in fair value	Operating Revenues	$	(3)	$	(4)
Reclassification to realized at settlement	Operating Revenues		1		6

Net mark-to-market gains (losses)	Operating Revenues	$	(2)	$	2

Information on Generation's credit exposure for all derivative instruments, normal purchase normal sales, and applicable payables and receivables, net of collateral and instruments that are subject to master netting agreements

	Total						Number of		Net Exposure of
	Exposure						Counterparties		Counterparties
	Before Credit		Credit		Net		Greater than 10%		Greater than 10%
Rating as of March 31, 2014	Collateral		Collateral^(a)		Exposure		of Net Exposure		of Net Exposure
Investment grade	$	1,182	$	117	$	1,065		1	$	443
Non-investment grade		35		22		13		0		0
No external ratings
Internally rated - investment grade		321		0		321		1		206
Internally rated - non-investment
grade		32		9		23		0		0
Total	$	1,570	$	148	$	1,422		2	$	649

Net Credit Exposure by Type of Counterparty	As of March 31, 2014

Financial institutions		$	201
Investor-owned utilities, marketers, power producers			392
Energy cooperatives and municipalities			799
Other			30
Total		$	1,422

Credit-Risk Related Contingent Feature		March 31,		December 31,
		2014		2013

Gross Fair Value of Derivative Contracts Containing this Feature^(a)	$	(1,178)	$	(1,056)
Offsetting Fair Value of In-the-Money Contracts Under Master Netting Arrangements^(b)		902		846
Net Fair Value of Derivative Contracts Containing This Feature^(c)	$	(276)	$	(210)

Amount represents the gross fair value of out-of-the-money derivative contracts containing credit-risk related contingent features ignoring the effects of master netting agreements.
Amount represents the offsetting fair value of in-the-money derivative contracts under legally enforceable master netting agreements with the same counterparty, which reduces the amount of any liability for which a Registrant could potentially be required to post collateral.
Amount represents the net fair value of out-of-the-money derivative contracts containing credit-risk related contingent features after considering the mitigating effects of offsetting positions under master netting arrangements and reflects the actual net liability upon which any potential contingent collateral obligations would be based.