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Fair Value of Financial Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2014
Fair Value Tables [Line Items]  
Fair value of financial liabilities recorded at the carrying amount
   June 30, 2014
   Carrying Fair Value
   AmountLevel 1Level 2Level 3Total
Short-term liabilities$624$3$621$0$624
Long-term debt (including amounts due within one year) 20,180 1,150 19,373 1,135 21,658
Long-term debt to financing trusts 648 0 0 668 668
SNF obligation 1,021 0 814 0 814
             
   December 31, 2013
   Carrying Fair Value
   AmountLevel 1Level 2Level 3Total
Short-term liabilities$344$3$341$0$344
Long-term debt (including amounts due within one year) 19,132 0 18,672 1,079 19,751
Long-term debt to financing trusts 648 0 0 631 631
SNF obligation 1,021 0 790 0 790
Assets and liabilities measured and recorded at fair value on recurring basis
As of June 30, 2014Level 1 Level 2 Level 3 Total
Assets           
Cash equivalents(a)$1,034 $0 $0 $1,034
Nuclear decommissioning trust fund investments           
Cash equivalents 151  66  0  217
Equity           
Individually held 2,572  0  0  2,572
Exchange traded funds 164  0  0  164
Commingled funds 0  2,529  0  2,529
Equity funds subtotal 2,736  2,529  0  5,265
Balanced funds - commingled funds 0  273  0  273
Fixed income           
Debt securities issued by the U.S. Treasury and other           
U.S. government corporations and agencies 990  0  0  990
Debt securities issued by states of the United States           
and political subdivisions of the states 0  416  0  416
Debt securities issued by foreign governments 0  114  0  114
Corporate debt securities 0  2,059  181  2,240
Federal agency mortgage-backed securities 0  84  0  84
Commercial mortgage-backed securities (non-agency) 0  43  0  43
Residential mortgage-backed securities (non-agency) 0  3  0  3
Mutual funds 0  18  0  18
Commingled funds 0  325  0  325
Fixed income subtotal 990  3,062  181  4,233
Middle market lending 0  0  376  376
Private Equity 0  0  35  35
Other debt obligations 0  24  0  24
Nuclear decommissioning trust fund investments subtotal(b) 3,877  5,954  592  10,423
            
Pledged assets for Zion Station decommissioning           
Cash equivalents 0  45  0  45
Equity           
Individually held 4  2  0  6
Equity funds subtotal 4  2  0  6
Fixed income           
Debt securities issued by the U.S. Treasury and other           
U.S. government corporations and agencies 12  3  0  15
Debt securities issued by states of the United States           
and political subdivisions of the states 0  19  0  19
Corporate debt securities 0  172  0  172
Commingled funds 0  5  0  5
Fixed income subtotal 12  199  0  211
Middle market lending 0  0  133  133
Pledged assets for Zion Station decommissioning subtotal(c) 16  246  133  395
            
Rabbi trust investments(e)           
Cash equivalents 2  0  0  2
Mutual funds(d) 43  0  0  43
Rabbi trust investments subtotal 45  0  0  45
            
Commodity derivative assets           
Economic hedges 434  2,969  1,413  4,816
Proprietary trading 178  712  184  1,074
Effect of netting and allocation of collateral(f) (569)  (3,119)  (1,127)  (4,815)
Commodity derivative assets subtotal 43  562  470  1,075
            
Interest rate and foreign currency derivative assets 24  40  0  64
Effect of netting and allocation of collateral (21)  (7)  0  (28)
Interest rate and foreign currency derivative assets subtotal 3  33  0  36
            
Other investments 13  0  10  23
            
Total assets 5,031  6,795  1,205  13,031
            
Liabilities           
Commodity derivative liabilities           
Economic hedges (434)  (2,803)  (1,465)  (4,702)
Proprietary trading (182)  (707)  (176)  (1,065)
Effect of netting and allocation of collateral(f) 618  3,408  1,279  5,305
Commodity derivative liabilities subtotal 2  (102)  (362)  (462)
            
Interest rate and foreign currency derivative liabilities (24)  (34)  0  (58)
Effect of netting and allocation of collateral 24  6  0  30
Interest rate and foreign currency derivative liabilities subtotal 0  (28)  0  (28)
            
Deferred compensation obligation 0  (104)  0  (104)
            
Total liabilities 2  (234)  (362)  (594)
            
Total net assets$5,033 $6,561 $843 $12,437
            
As of December 31, 2013Level 1 Level 2 Level 3 Total
Assets           
Cash equivalents(a)$1,230 $0 $0 $1,230
Nuclear decommissioning trust fund investments           
Cash equivalents 459  0  0  459
Equity           
Individually held 1,776  0  0  1,776
Exchange traded funds 115  0  0  115
Commingled funds 0  2,271  0  2,271
Equity funds subtotal 1,891  2,271  0  4,162
Fixed income           
Debt securities issued by the U.S. Treasury and other           
U.S. government corporations and agencies 882  0  0  882
Debt securities issued by states of the United States           
and political subdivisions of the states 0  294  0  294
Debt securities issued by foreign governments 0  87  0  87
Corporate debt securities 0  1,753  31  1,784
Federal agency mortgage-backed securities 0  10  0  10
Commercial mortgage-backed securities (non-agency) 0  40  0  40
Residential mortgage-backed securities (non-agency) 0  7  0  7
Mutual funds 0  18  0  18
Fixed income subtotal 882  2,209  31  3,122
Middle market lending 0  0  314  314
Private Equity 0  0  5  5
Other debt obligations 0  14  0  14
Nuclear decommissioning trust fund investments subtotal(b) 3,232  4,494  350  8,076
            
Pledged assets for Zion decommissioning           
Cash equivalents 0  26  0  26
Equity           
Individually held 16  0  0  16
Equity funds subtotal 16  0  0  16
Fixed income           
Debt securities issued by the U.S. Treasury and other           
U.S. government corporations and agencies 45  4  0  49
Debt securities issued by states of the United States           
and political subdivisions of the states 0  20  0  20
Corporate debt securities 0  227  0  227
Fixed income subtotal 45  251  0  296
Middle market lending 0  0  112  112
Other debt obligations 0  1  0  1
Pledged assets for Zion Station decommissioning subtotal(c) 61  278  112  451
            
Rabbi trust investments(e)           
Cash equivalents 2  0  0  2
Mutual funds(d) 54  0  0  54
Rabbi trust investments subtotal 56  0  0  56
            
Commodity derivative assets           
Economic hedges 493  2,582  885  3,960
Proprietary trading 324  1,315  122  1,761
Effect of netting and allocation of collateral(f) (863)  (3,131)  (430)  (4,424)
Commodity derivative assets subtotal (46)  766  577  1,297
            
Interest rate and foreign currency derivative assets 30  39  0  69
Effect of netting and allocation of collateral (30)  (2)  0  (32)
Interest rate and foreign currency derivative assets subtotal 0  37  0  37
            
Other Investments 0  0  15  15
Total assets 4,533  5,575  1,054  11,162
            
Liabilities           
Commodity derivative liabilities           
Economic hedges (540)  (1,890)  (590)  (3,020)
Proprietary trading (328)  (1,256)  (119)  (1,703)
Effect of netting and allocation of collateral(f) 869  3,007  404  4,280
Commodity derivative liabilities subtotal 1  (139)  (305)  (443)
            
Interest rate and foreign currency derivative liabilities (31)  (17)  0  (48)
Effect of netting and allocation of collateral 31  1  0  32
Interest rate and foreign currency derivative liabilities subtotal 0  (16)  0  (16)
            
Deferred compensation obligation 0  (114)  0  (114)
            
Total liabilities 1  (269)  (305)  (573)
            
Total net assets$4,534 $5,306 $749 $10,589

 

(a)       Excludes certain cash equivalents considered to be held-to-maturity and not reported at fair value.

(b)       Excludes net assets (liabilities) of $14 million and $(5) million at June 30, 2014 and December 31, 2013, respectively. These items consist of receivables related to pending securities sales, interest and dividend receivables, and payables related to pending securities purchases.

(c)       Excludes net assets of $7 million at both June 30, 2014 and December 31, 2013, respectively. These items consist of receivables related to pending securities sales, interest and dividend receivables, and payables related to pending securities purchases.

(d)       The mutual funds held by the Rabbi trusts include $42 million related to deferred compensation and $1 million related to Supplemental Executive Retirement Plan at June 30, 2014, and $53 million related to deferred compensation and $1 million related to Supplemental Executive Retirement Plan at December 31, 2013.

(e)       Excludes $34 million and $32 million of the cash surrender value of life insurance investments at June 30, 2014 and December 31, 2013, respectively.

(f)       Includes collateral postings to counterparties. Collateral posted to counterparties, net of collateral paid to counterparties, totaled $49 million, $289 million and $152 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of June 30, 2014. Collateral posted (received) from counterparties, net of collateral paid to counterparties, totaled $6 million, $(124) million and $(26) million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of December 31, 2013.

 
Fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis
Three Months Ended June 30, 2014Nuclear Decommissioning Trust Fund InvestmentsPledged Assets for Zion Station DecommissioningMark-to-Market Derivatives Other InvestmentsTotal 
Balance as of March 31, 2014$ 486$ 137$119 $10$752 
Total realized / unrealized gains (losses)            
 Included in net income 2 0 (48)(a) 0 (46) 
 Included in other comprehensive income 0 0 0  0 0 
 Included in regulatory assets 8 0 34  0 42 
 Included in payable for Zion Station decommissioning 0 4 0  0 4 
Change in collateral 0 0 34  0 34 
Purchases, sales, issuances and settlements            
 Purchases 109  13 5  0 127 
 Sales (1)  (21) (4)  0 (26) 
 Settlements (12) 0 0  0 (12) 
Transfers into Level 3 0 0 (4)  0 (4) 
Transfers out of Level 3 0 0 (28)  0 (28) 
              
Balance as of June 30, 2014$592$133$108 $10$843 
The amount of total gains included in income            
 attributed to the change in unrealized gains related to assets and liabilities held for the three months ended June 30, 2014$2$0$19 $0$21 
              
Six Months Ended June 30, 2014Nuclear Decommissioning Trust Fund InvestmentsPledged Assets for Zion Station DecommissioningMark-to-Market Derivatives Other InvestmentsTotal 
Balance as of December 31, 2013$ 350$ 112$272 $15$749 
Total realized / unrealized gains (losses)            
 Included in net income 3 0 (360)(a) 0 (357) 
 Included in other comprehensive income 0 0 0  0 0 
 Included in regulatory assets 11 0 59  0 70 
 Included in payable for Zion Station decommissioning 0 4 0  0 4 
Change in collateral 0 0 178  0 178 
Purchases, sales, issuances and settlements            
 Purchases 249 42 15  2 308 
 Sales (2) (25) (6)  0 (33) 
 Settlements (19) 0 0  0 (19) 
Transfers into Level 3 0 0 (30)  0 (30) 
Transfers out of Level 3 0 0  (20)  (7) (27) 
              
Balance as of June 30, 2014$592$133$108 $10$843 
The amount of total losses included in income            
 attributed to the change in unrealized gains related to assets and liabilities held for the nine months ended June 30, 2014$2$0$(427) $0$(425) 

 

(a)       Includes the increase for the reclassification of $67 million of realized losses due to the settlement of derivative contracts recorded in results of operations for the three months ended June 30, 2014.

 

Three Months Ended June 30, 2013Nuclear Decommissioning Trust Fund InvestmentsPledged Assets for Zion Station DecommissioningMark-to-Market Derivatives Other InvestmentsTotal
Balance as of March 31, 2013$210$104$260 $9$583
Total realized / unrealized gains (losses)           
 Included in net income 1 0 158(a) 0 159
 Included in other comprehensive income 0 0 0  0 0
 Included in regulatory assets 8 0 (10)(b) 0 (2)
 Included in payable for Zion Station           
 decommissioning 0 1 0  0 1
Change in collateral 0 0 10  0 10
Purchases, sales, issuances and settlements           
 Purchases 35 11 13  2 61
 Sales (11) (5) (4)  0 (20)
 Settlements (3) 0 0  0 (3)
Transfers into Level 3  0 0 3  0 3
Transfers out of Level 3  0 0 1  0 1
             
Balance as of June 30, 2013$240$111$431 $11$793
The amount of total losses included in income           
 attributed to the change in unrealized losses related to assets and liabilities held for the three months ended June 30, 2013$1$0$187 $0$188
             
Six Months Ended June 30, 2013Nuclear Decommissioning Trust Fund InvestmentsPledged Assets for Zion DecommissioningMark-to-Market Derivatives Other InvestmentsTotal
Balance as of December 31, 2012$183$89$367 $17$656
Total realized / unrealized gains (losses)           
 Included in net income 2 0 31(a) 0 33
 Included in other comprehensive income 0 0 0  0 0
 Included in regulatory assets 9 0 (18)(b) 0 (9)
 Included in payable for Zion Station           
 decommissioning 0 1 0  0 1
Change in collateral 0 0 43  0 43
Purchases, sales, issuances and settlements           
 Purchases 67 33 8(c) 2 110
 Sales (13) (12) (8)  (8) (41)
 Settlements (8) 0 0  0 (8)
Transfers into Level 3 0 0 7  0 7
Transfers out of Level 3 0 0 1  0 1
             
Balance as of June 30, 2013$240$111$431 $11$793
The amount of total gains included in income            
 attributed to the change in unrealized gains related to assets and liabilities held for the six months ended June 30, 2013$1$0$108 $0$109

 

(a)       Includes the reclassification of $29 million and $77 million of realized losses due to the settlement of derivative contracts recorded in results of operations for the three and six months ended June 30, 2013, respectively.

(b) Excludes decreases in fair value of $3 million and $11 million and realized losses reclassified due to settlements of $82 million and $215 million associated with Generation's financial swap contract with ComEd for the three and six months ended June 30, 2013. All items eliminate upon consolidation in Exelon's Consolidated Financial Statements.
Total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis
           
  Operating Revenue  Purchased Power and Fuel Other, net (a)
           
Total gains (losses) included in income for the three months ended         
 June 30, 2014 $(62) $14 $2
Total gains (losses) included in income for the six months ended         
 June 30, 2014 $(330) $(30) $3
Change in the unrealized gains (losses) relating to assets and liabilities         
 held for the three months ended June 30, 2014 $(10) $29 $2
Change in the unrealized gains (losses) relating to assets and liabilities         
 held for the six months ended June 30, 2014 $(435) $8 $2
          
  Operating Revenue  Purchased Power and Fuel Other, net (a)
Total gains included in income for the three months          
 ended June 30, 2013 $137 $21 $1
Total gains (losses) included in income for the six months ended         
 June 30, 2013 $(22) $53 $2
Change in the unrealized gains relating to assets and          
 liabilities held for the three months ended June 30, 2013 $156 $31 $1
Change in the unrealized gains relating to assets and         
 liabilities held for the six months ended June 30, 2013 $39 $69 $1

(a)        Other, net activity consists of realized and unrealized gains (losses) included in income for the NDT funds held by Generation.

 
Fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis, valuation technique
Type of trade Fair Value at June 30, 2014 (c) Valuation Technique Unobservable Input Range
Mark-to-market derivatives – Economic Hedges (Generation) (a)  $82 Discounted Cash Flow Forward power price $16 -$170(d)
     Forward gas price $2.19 -$19.84(d)
    Option Model Volatility percentage  8%- 260%
                
Mark-to-market derivatives – Proprietary trading (Generation) (a) $8 Discounted Cash Flow Forward power price $13 -$168(d)
    Option Model Volatility percentage  8%- 260%
                
Mark-to-market derivatives (ComEd) $(134) Discounted Cash Flow Forward heat rate (b)  8x- 9x
     Marketability reserve  3.5%- 8%
     Renewable factor  86%- 123%

  • The valuation techniques, unobservable inputs and ranges are the same for the asset and liability positions.
  • 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.
  • The fair values do not include cash collateral held on level three positions of $152 million as of June 30, 2014.
  •  

  • The upper ends of the ranges are driven by the winter power and gas prices in the New England region. Without the New England region, the upper ends of the ranges for power and gas economic hedges would be approximately $106 and $10.29, respectively, and would be approximately $93 for power proprietary trading.

 

Type of trade Fair Value at December 31, 2013 (c) Valuation Technique Unobservable Input Range
Mark-to-market derivatives – Economic Hedges (Generation) (a)  $488 Discounted Cash Flow Forward power price $8 -$176(d)
     Forward gas price $2.98 -$16.63(d)
    Option Model Volatility percentage  15%- 142%
                
Mark-to-market derivatives – Proprietary trading (Generation) (a) $3 Discounted Cash Flow Forward power price $10 -$176(d)
    Option Model Volatility percentage  14%- 19%
                
Mark-to-market derivatives (ComEd) $(193) Discounted Cash Flow Forward heat rate (b)  8x- 9x
     Marketability reserve  3.5%- 8%
     Renewable factor  84%- 128%

              

  • The valuation techniques, unobservable inputs and ranges are the same for the asset and liability positions.
  • 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.
  • The fair values do not include cash collateral held on level three positions of $26 million as of December 31, 2013
  • The upper ends of the ranges are driven by the winter power and gas prices in the New England region. Without the New England region, the upper ends of the ranges for power and gas would be approximately $100 and $5.70, respectively.

 
Exelon Generation Co L L C [Member]
  
Fair Value Tables [Line Items]  
Fair value of financial liabilities recorded at the carrying amount
    June 30, 2014
    Carrying  Fair Value
    Amount Level 1 Level 2 Level 3 Total
Short-term liabilities $53 $0 $53 $0 $53
Long-term debt (including amounts due within one year)  7,507  0  6,881  1,135  8,016
SNF obligation  1,021  0  814  0  814
                  
    December 31, 2013
    Carrying  Fair Value
    Amount Level 1 Level 2 Level 3 Total
Short-term liabilities $22 $0 $22 $0 $22
Long-term debt (including amounts due within one year)  7,729  0  6,586  1,062  7,648
SNF obligation  1,021  0  790  0  790
Assets and liabilities measured and recorded at fair value on recurring basis
As of June 30, 2014Level 1 Level 2 Level 3  Total
Assets           
Cash equivalents(a)$65 $0 $0 $ 65
Nuclear decommissioning trust fund investments           
Cash equivalents 151  66  0   217
Equity           
Individually held  2,572  0  0   2,572
Exchange traded funds  164  0  0   164
Commingled funds 0  2,529  0   2,529
Equity funds subtotal 2,736  2,529  0   5,265
Balanced funds - commingled funds 0  273  0   273
Fixed income           
Debt securities issued by the U.S. Treasury and other U.S.            
government corporations and agencies 990  0  0   990
Debt securities issued by states of the United States and           
political subdivisions of the states 0  416  0   416
Debt securities issued by foreign governments 0  114  0   114
Corporate debt securities 0  2,059  181   2,240
Federal agency mortgage-backed securities 0  84  0   84
Commercial mortgage-backed securities (non-agency) 0  43  0   43
Residential mortgage-backed securities (non-agency) 0  3  0   3
Mutual funds 0  18  0   18
Commingled funds 0  325  0   325
Fixed income subtotal 990  3,062  181  4,233
Middle market lending 0  0  376   376
Private Equity 0  0  35   35
Other debt obligations 0  24  0   24
Nuclear decommissioning trust fund investments subtotal(b) 3,877  5,954  592  10,423
            
Pledged assets for Zion Station decommissioning           
Cash equivalents 0  45  0   45
Equity           
Individually held 4  2  0   6
Equity funds subtotal 4  2  0  6
Fixed income           
Debt securities issued by the U.S. Treasury and other U.S.            
government corporations and agencies 12  3  0   15
Debt securities issued by states of the United States and           
political subdivisions of the states 0  19  0   19
Corporate debt securities 0  172  0   172
Commingled funds 0  5  0   5
Fixed income subtotal 12  199  0  211
Middle market lending 0  0  133   133
Pledged assets for Zion Station decommissioning subtotal(c) 16  246  133  395
            
Rabbi trust investments(d)           
Cash equivalents 1  0  0   1
Mutual funds 14  0  0   14
Rabbi trust investments subtotal 15  0  0  15
            
Commodity derivative assets           
Economic hedges 434  2,969  1,413   4,816
Proprietary trading 178  712  184   1,074
Effect of netting and allocation of collateral(e) (569)  (3,119)  (1,127)   (4,815)
Commodity derivative assets subtotal 43  562  470   1,075
            
Interest rate and foreign currency derivative assets 24  22  0   46
Effect of netting and allocation of collateral (21)  (7)  0   (28)
Interest rate and foreign currency derivative assets subtotal 3  15  0   18
            
Other investments 13  0  10   23
            
Total assets 4,032  6,777  1,205   12,014
            
Liabilities           
Commodity derivative liabilities           
Economic hedges (434)  (2,803)  (1,331)   (4,568)
Proprietary trading (182)  (707)  (176)   (1,065)
Effect of netting and allocation of collateral(e) 618  3,408  1,279   5,305
Commodity derivative liabilities subtotal 2  (102)  (228)   (328)
            
Interest rate and foreign currency derivative liabilities (24)  (28)  0   (52)
Effect of netting and allocation of collateral 24  6  0   30
Interest rate and foreign currency derivative liabilities subtotal 0  (22)  0  (22)
            
Deferred compensation obligation 0  (29)  0   (29)
            
Total liabilities 2  (153)  (228)  (379)
            
Total net assets$4,034 $6,624 $977 $ 11,635
            
As of December 31, 2013Level 1 Level 2 Level 3  Total
Assets           
Cash equivalents(a)$1,006 $0 $0 $ 1,006
Nuclear decommissioning trust fund investments           
Cash equivalents 459  0  0   459
Equity           
Individually held 1,776  0  0   1,776
Exchange traded funds 115  0  0   115
Commingled funds 0  2,271  0   2,271
Equity funds subtotal 1,891  2,271  0   4,162
Fixed income           
Debt securities issued by the U.S. Treasury and other U.S.            
government corporations and agencies 882  0  0   882
Debt securities issued by states of the United States and           
political subdivisions of the states 0  294  0   294
Debt securities issued by foreign governments 0  87  0   87
Corporate debt securities 0  1,753  31   1,784
Federal agency mortgage-backed securities 0  10  0   10
Commercial mortgage-backed securities (non-agency) 0  40  0   40
Residential mortgage-backed securities (non-agency) 0  7  0   7
Mutual funds 0  18  0   18
Fixed income subtotal 882  2,209  31   3,122
Middle market lending 0  0  314   314
Private Equity 0  0  5   5
Other debt obligations 0  14  0   14
Nuclear decommissioning trust fund investments subtotal(b) 3,232  4,494  350   8,076
            
Pledged assets for Zion Station decommissioning           
Cash equivalents 0  26  0   26
Equity           
Individually held 16  0  0   16
Equity funds subtotal 16  0  0   16
Fixed income           
Debt securities issued by the U.S. Treasury and other U.S.            
government corporations and agencies 45  4  0   49
Debt securities issued by states of the United States and           
political subdivisions of the states 0  20  0   20
Corporate debt securities 0  227  0   227
Fixed income subtotal 45  251  0   296
Middle market lending 0  0  112   112
Other debt obligations 0  1  0   1
Pledged assets for Zion Station decommissioning subtotal(c) 61  278  112   451
            
Rabbi trust investments(d)           
Mutual funds 13  0  0   13
Rabbi trust investments subtotal 13  0  0  13
            
Commodity derivative assets           
Economic hedges 493  2,582  885  3,960
Proprietary trading 324  1,315  122  1,761
Effect of netting and allocation of collateral(e) (863)  (3,131)  (430)  (4,424)
Commodity and foreign currency assets subtotal (46)  766  577  1,297
            
Interest rate and foreign currency derivative assets 30  32  0  62
Effect of netting and allocation of collateral (30)  (2)  0  (32)
Interest rate and foreign currency derivative assets subtotal 0  30  0  30
            
Other investments 0  0  15  15
            
Total assets 4,266  5,568  1,054  10,888
            
Liabilities           
Commodity derivative liabilities           
Economic hedges (540)  (1,890)  (397)  (2,827)
Proprietary trading (328)  (1,256)  (119)  (1,703)
Effect of netting and allocation of collateral(e) 869  3,007  404  4,280
Commodity derivative liabilities subtotal 1  (139)  (112)  (250)
            
Interest rate derivative liabilities (31)  (13)  0  (44)
Effect of netting and allocation of collateral 31  1  0  32
Interest rate and foreign currency derivative liabilities 0  (12)  0  (12)
            
Deferred compensation obligation 0  (29)  0  (29)
            
Total liabilities 1  (180)  (112)  (291)
            
Total net assets$4,267 $5,388 $942 $10,597

(a)       Excludes certain cash equivalents considered to be held-to-maturity and not reported at fair value.

(b)       Excludes net assets (liabilities) of $14 million and $(5) million at June 30, 2014 and December 31, 2013, respectively. These items consist of receivables related to pending securities sales, interest and dividend receivables, and payables related to pending securities purchases.

(c)       Excludes net assets of $7 million at both June 30, 2014 and December 31, 2013, respectively. These items consist of receivables related to pending securities sales, interest and dividend receivables, and payables related to pending securities purchases.

(d)       Excludes $10 million of the cash surrender value of life insurance investments at both June 30, 2014 and December 31, 2013.

(e)       Includes collateral postings to counterparties. Collateral posted to counterparties, net of collateral paid to counterparties, totaled $49 million, $289 million and $152 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of June 30, 2014. Collateral posted (received) from counterparties, net of collateral paid to counterparties, totaled $6 million, $(124) million and $(26) million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of December 31, 2013.

 
Fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis
Three Months Ended June 30, 2014Nuclear Decommissioning Trust Fund Investments Pledged Assets for Zion Station DecommissioningMark-to-Market Derivatives Other InvestmentsTotal
Balance as of March 31, 2014$486$137$287 $10$920
Total realized / unrealized gains (losses)           
 Included in net income 2 0 (48)(a) 0 (46)
 Included in noncurrent payables to affiliates 8 0 0  0 8
 Included in payable for Zion Station decommissioning 0 4 0  0 4
Change in collateral 0 0 34  0 34
Purchases, sales, issuances and settlements           
 Purchases 109 13 5  0 127
 Sales (1) (21) (4)  0 (26)
 Settlements (12) 0 0  0 (12)
Transfers into Level 3 0 0 (4)  0 (4)
Transfers out of Level 3 0 0 (28)  0 (28)
             
Balance as of June 30, 2014$ 592$ 133$ 242 $ 10$ 977
The amount of total gains included in income           
 attributed to the change in unrealized gains related to assets and liabilities held for the three months ended June 30, 2014$2$0$19 $0$21
             
Six Months Ended June 30, 2014Nuclear Decommissioning Trust Fund Investments Pledged Assets for Zion Station DecommissioningMark-to-Market Derivatives Other InvestmentsTotal
Balance as of December 31, 2013$350$112$465 $15$942
Total realized / unrealized gains (losses)           
 Included in net income 3 0 (360)(a)0 (357)
 Included in noncurrent payables to affiliates 11 0 0  0 11
 Included in payable for Zion Station decommissioning 0 4 0  0 4
Change in collateral   0 178  0 178
Purchases, sales, issuances and settlements           
 Purchases 249 42 15  2 308
 Sales (2) (25) (6)  0 (33)
 Settlements (19) 0 0  0 (19)
Transfers into Level 3 0 0 (30)  0 (30)
Transfers out of Level 3 0 0 (20)  (7) (27)
             
Balance as of June 30, 2014$592$133$242 $10$977
The amount of total gains included in income           
 attributed to the change in unrealized gains related to assets and liabilities held for the six months ended June 30, 2014$2$0$(427) $0$(425)

(a) Includes an increase for the reclassification of $67 million of realized losses due to the settlement of derivative contracts recorded in results of operations for the three and six months ended June 30, 2014, respectively.

Three Months Ended June 30, 2013Nuclear Decommissioning Trust Fund Investments Pledged Assets for Zion Station DecommissioningMark-to-Market Derivatives Other InvestmentsTotal
Balance as of March 31, 2013$210$104$420 $9$743
Total realized / unrealized gains (losses)           
 Included in net income 1 0 168(a)(b) 0 169
 Included in other comprehensive income 0 0 (95)(b) 0 (95)
 Included in noncurrent payables to affiliates 8 0 0  0 8
 Included in payable for Zion Station decommissioning 0 1 0  0 1
Changes in collateral 0 0 10  0 10
Purchases, sales, issuances and settlements           
 Purchases 35 11 13  2 61
 Sales (11) (5) (4)  0 (20)
 Settlements (3) 0 0  0 (3)
Transfers into Level 3 0 0 3  0 3
Transfers out of Level 3 0 0 1  0 1
             
Balance as of June 30, 2013$240$111$516 $11$878
             
The amount of total losses included in income           
 attributed to the change in unrealized losses related to assets and liabilities held for the three months ended June 30, 2013$1$0$183 $0$184
             
Six Months Ended June 30, 2013Nuclear Decommissioning Trust Fund Investments Pledged Assets for Zion Station DecommissioningMark-to-Market Derivatives Other InvestmentsTotal
Balance as of December 31, 2012$183$89$660 $17$949
Total realized / unrealized gains (losses)           
 Included in net income 2 0 24(a)(b) 0 26
 Included in other comprehensive income 0 0 (219)(b) 0 (219)
 Included in noncurrent payables to affiliates 9 0 0    9
 Included in payable for Zion Station decommissioning 0 1 0  0 1
Changes in collateral 0 0 43  0 43
Purchases, sales, issuances and settlements          0
 Purchases 67 33 8(c) 2 110
 Sales (13) (12) (8)  (8) (41)
 Settlements (8) 0 0  0 (8)
Transfers into Level 3 0 0 7  0 7
Transfers out of Level 3 0 0 1  0 1
             
Balance as of June 30, 2013$240$111$516 $11$878
             
The amount of total gains included in income            
 attributed to the change in unrealized gains related to assets and liabilities held for the six months ended June 30, 2013$1$0$97 $0$98

 

(a)        Includes the reclassification of $15 million and $73 million of realized losses due to the settlement of derivative contracts recorded in results of operations for the three and six months ended June 30, 2013, respectively.

(b) Includes $3 million of decreases in fair value and $11 million of increases in fair value and realized losses due to settlements of $82 million and $215 million associated with Generation's financial swap contract with ComEd for the three and six months ended June 30, 2013, respectively. This position eliminates upon consolidation in Exelon's Consolidated Financial Statements.

(c)       Includes $10 million which Generation was paid to enter into out of the money purchase contracts.

 
Total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis

 

(a)        Other, net activity consists of realized and unrealized gains (losses) included in income for the NDT funds held by Generation.

 

  Operating Revenue  Purchased Power and Fuel Other, net (a)
Total gains (losses) included in net income for the three months $(62) $14 $2
 ended June 30, 2014         
Total losses included in net income for the six months          
 ended June 30, 2014 $(330) $(30) $3
Change in the unrealized gains (losses) relating to assets and liabilities         
 held for the three months ended June 30, 2014 $(10) $29 $2
Change in the unrealized gains (losses) relating to assets and liabilities         
 held for the six months ended June 30, 2014 $(435) $8 $2
           
  Operating Revenue  Purchased Power and Fuel Other, net (a)
Total gains included in net income for the three months $148 $20 $1
 ended June 30, 2013         
Total gains (losses) included in net income for the six months $(28) $52 $2
 ended June 30, 2013         
Change in the unrealized gains relating to assets and  $153 $30 $1
 liabilities held for the three months ended June 30, 2013         
Change in the unrealized gains relating to assets and  $29 $68 $1
 liabilities held for the nine months ended June 30, 2013         

(a)        Other, net activity consists of realized and unrealized gains (losses) included in income for the NDT funds held by Generation.

 
Commonwealth Edison Co [Member]
  
Fair Value Tables [Line Items]  
Fair value of financial liabilities recorded at the carrying amount
    June 30, 2014
    Carrying  Fair Value
    Amount Level 1 Level 2 Level 3 Total
Short-term liabilities $498 $0 $498 $0 $498
Long-term debt (including amounts due within one year)  5,708  0  6,452  0  6,452
Long-term debt to financing trust  206  0  0  211  211
                  
    December 31, 2013
    Carrying  Fair Value
    Amount Level 1 Level 2 Level 3 Total
Short-term liabilities $184 $0 $184 $0 $184
Long-term debt (including amounts due within one year)  5,675  0  6,238  17  6,255
Long-term debt to financing trust  206  0  0  202  202
Assets and liabilities measured and recorded at fair value on recurring basis
As of June 30, 2014Level 1 Level 2 Level 3 Total
Assets           
Rabbi trust investments           
Mutual funds$1 $0 $0 $1
 Rabbi trust investments subtotal 1  0  0  1
             
Total assets$1 $0 $0 $1
             
Liabilities           
Deferred compensation obligation 0  (8)  0  (8)
Mark-to-market derivative liabilities(a) 0  0  (134)  (134)
             
Total liabilities 0  (8)  (134)  (142)
             
Total net assets (liabilities)$1 $(8) $(134) $(141)
             
As of December 31, 2013Level 1 Level 2 Level 3 Total
Assets           
Rabbi trust investments           
Mutual funds$5 $0 $0 $5
  Rabbi trust investments subtotal 5  0  0  5
             
Total assets 5  0  0  5
             
Liabilities           
Deferred compensation obligation 0   (8)  0  (8)
Mark-to-market derivative liabilities(a) 0  0  (193)  (193)
             
Total liabilities 0  (8)  (193)  (201)
             
Total net assets (liabilities)$5 $(8) $(193) $(196)

(a)       The Level 3 balance includes the current and noncurrent liability of $13 million and $121 million at June 30, 2014, respectively, and $17 million and $176 million at December 31, 2013, respectively, 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
Three Months Ended June 30, 2014Mark-to-Market Derivatives
Balance as of March 31, 2014$(168)
Total realized / unrealized gains included in regulatory assets(a) 34
Balance as of June 30, 2014$(134)
    
Six Months Ended June 30, 2014Mark-to-Market Derivatives
Balance as of December 31, 2013$(193)
Total realized / unrealized gains included in regulatory assets(b) 59
Balance as of June 30, 2014$(134)

 

  • Includes $34 million decreases in the fair value partially offset by immaterial realized losses due to settlements recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended June 30, 2014.
  • Includes $64 million of decreases in the fair value partially offset by realized gains due to settlements of $5 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the six months ended June 30, 2014.

 

Three Months Ended June 30, 2013Mark-to-Market Derivatives
Balance as of March 31, 2013$(160)
Total realized / unrealized gains included in regulatory assets(a)(b) 75
Balance as of June 30, 2013$(85)
    
Six Months Ended June 30, 2013Mark-to-Market Derivatives
Balance as of December 31, 2012$(293)
Total realized / unrealized gains included in regulatory assets(a)(b) 208
Balance as of June 30, 2013$(85)
Total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis

 

  • Includes $3 million of increases in fair value and $11 million of decreases in fair value and realized gains due to settlements of $82 million and $215 million of associated with ComEd's financial swap contract with Generation for the three and six months ended June 30, 2013, respectively. All items eliminate upon consolidation in Exelon's Consolidated Financial Statements.
  • Includes $9 million and $20 million of increases in the fair value and realized losses due to settlements of $1 million and $4 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three and six months ended June 30, 2013, respectively.

 
PECO Energy Co [Member]
  
Fair Value Tables [Line Items]  
Fair value of financial liabilities recorded at the carrying amount
    June 30, 2014
    Carrying  Fair Value
    Amount Level 1 Level 2 Level 3 Total
Long-term debt (including amounts due within one year) $2,197 $0 $2,436 $0 $2,436
Long-term debt to financing trusts  184  0  0  198  198
                  
    December 31, 2013
    Carrying  Fair Value
    Amount Level 1 Level 2 Level 3 Total
Long-term debt (including amounts due within one year) $2,197 $0 $2,358 $0 $2,358
Long-term debt to financing trusts  184  0  0  180  180
Assets and liabilities measured and recorded at fair value on recurring basis
As of June 30, 2014Level 1 Level 2 Level 3 Total 
Assets            
Cash equivalents$50 $0 $0 $50 
Rabbi trust investments(a)            
Mutual funds 9  0  0  9 
Rabbi trust investments subtotal 9  0  0  9 
              
Total assets 59  0  0  59 
              
Liabilities            
Deferred compensation obligation 0  (15)  0  (15) 
              
Total liabilities 0  (15)  0  (15) 
              
Total net assets (liabilities)$59 $(15) $0 $44 
              
As of December 31, 2013Level 1 Level 2 Level 3 Total 
Assets            
Cash equivalents$175 $0 $0 $175 
Rabbi trust investments(a)            
Mutual funds 9  0  0  9 
Rabbi trust investments subtotal 9  0  0  9 
              
Total assets 184  0  0  184 
              
Liabilities            
Deferred compensation obligation 0  (17)  0  (17) 
              
Total liabilities 0  (17)  0  (17) 
              
Total net assets (liabilities)$184 $(17) $0 $167 

 

(a)       Excludes $14 million of the cash surrender value of life insurance investments at both June 30, 2014 and December 31, 2013.

 
Baltimore Gas and Electric Company [Member]
  
Fair Value Tables [Line Items]  
Fair value of financial liabilities recorded at the carrying amount
    June 30, 2014
    Carrying  Fair Value
    Amount Level 1  Level 2 Level 3 Total
Short-term liabilities $73 $3 $70 $0 $73
Long-term debt (including amounts due within one year)  1,976  0  2,206  0  2,206
Long-term debt to financing trusts  258  0  0  259  259
                  
    December 31, 2013
    Carrying  Fair Value
    Amount Level 1  Level 2 Level 3 Total
Short-term liabilities $138 $3 $135 $0 $138
Long-term debt (including amounts due within one year)  2,011  0  2,148  0  2,148
Long-term debt to financing trusts  258  0  0  249  249
Assets and liabilities measured and recorded at fair value on recurring basis
As of June 30, 2014Level 1 Level 2 Level 3 Total 
Assets            
Cash equivalents$53 $0 $0 $53 
Rabbi trust investments            
 Mutual funds 5  0  0  5 
Rabbi trust investments subtotal 5  0  0  5 
              
Total assets 58  0  0  58 
              
Liabilities            
Deferred compensation obligation 0  (5)  0  (5) 
              
Total liabilities 0  (5)  0  (5) 
              
Total net assets (liabilities)$58 $(5) $0 $53 
              
As of December 31, 2013Level 1 Level 2 Level 3 Total 
Assets            
Cash equivalents$31 $0 $0 $31 
Rabbi trust investments            
 Mutual funds 6  0  0  6 
Rabbi trust investments subtotal 6  0  0  6 
              
Total assets 37  0  0  37 
              
Liabilities            
Deferred compensation obligation 0  (6)  0  (6) 
              
Total liabilities 0  (6)  0  (6) 
              
Total net assets (liabilities)$37 $(6) $0 $31