Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2016

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, trust preferred securities (long-term debt to financing trusts or junior subordinated debentures) and preferred stock as of March 31, 2016 and December 31, 2015:

Exelon

	March 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	3,643	$	3	$	3,640	$	—	$	3,643
Long-term debt (including amounts due within one year)(a)	31,372		1,132		29,577		2,135		32,844
Long-term debt to financing trusts(b)	641		—		—		670		670
SNF obligation	1,022		—		817		—		817

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	536	$	3	$	533	$	—	$	536
Long-term debt (including amounts due within one year)(a)	25,145		931		23,644		1,349		25,924
Long-term debt to financing trusts(b)	641		—		—		673		673
SNF obligation	1,021		—		818		—		818

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 March 31, 2016 and December 31, 2015:

	Successor											Predecessor
	As of March 31, 2016											As of December 31, 2015
PHI	Level 1			Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total
Assets
Cash equivalents	$	168		$	—		$	—	$	168		$	42		$	—		$	—	$	42
Derivative asset	—			—			—		—			—			—			18		18
Rabbi trust investments
Cash equivalents	73			—			—		73			12			—			—		12
Fixed income	—			14			—		14			—			15			—		15
Life insurance contracts	—			22			20		42			—			27			19		46
Rabbi trust investments subtotal	73			36			20		129			12			42			19		73
Total assets	241			36			20		297			54			42			37		133
Liabilities
Deferred compensation obligation	—			(30		)	—		(30		)	—			(30		)	—		(30		)
Mark-to-market derivative liabilities(a)	(1		)	—			—		(1		)	(2		)	—			—		(2		)
Effect of netting and allocation of collateral	1			—			—		1			2			—			—		2
Mark-to-market derivative liabilities subtotal	—			—			—		—			—			—			—		—
Total liabilities	—			(30		)	—		(30		)	—			(30		)	—		(30		)
Total net assets	$	241		$	6		$	20	$	267		$	54		$	12		$	37	$	103

	Pepco										DPL											ACE
As of March 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	$	19	$	—		$	—	$	19		$	—		$	—		$	—	$	—		$	148	$	—	$	—	$	148
Rabbi trust investments
Cash equivalents	43		—			—		43			—			—			—		—			—		—		—		—
Fixed income	—		14			—		14			—			—			—		—			—		—		—		—
Life insurance contracts	—		22			20		42			—			—			—		—			—		—		—		—
Rabbi trust investments subtotal	43		36			20		99			—			—			—		—			—		—		—		—
Total assets	62		36			20		118			—			—			—		—			148		—		—		148
Liabilities
Deferred compensation obligation	—		(5		)	—		(5		)	—			(1		)	—		(1		)	—		—		—		—
Mark-to-market derivative liabilities(a)	—		—			—		—			(1		)	—			—		(1		)	—		—		—		—
Effect of netting and allocation of collateral	—		—			—		—			1			—			—		1			—		—		—		—
Mark-to-market derivative liabilities subtotal	—		—			—		—			—			—			—		—			—		—		—		—
Total liabilities	—		(5		)	—		(5		)	—			(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	62	$	31		$	20	$	113		$	—		$	(1	)	$	—	$	(1	)	$	148	$	—	$	—	$	148

	Pepco										DPL											ACE
As of December 31, 2015	Level 1		Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total			Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	2	$	—		$	—	$	2		$	—		$	—		$	—	$	—		$	30	$	—	$	—	$	30
Rabbi trust investments
Cash equivalents	11		—			—		11			—			—			—		—			—		—		—		—
Fixed income	—		15			—		15			—			—			—		—			—		—		—		—
Life insurance contracts	—		23			19		42			—			—			—		—			—		—		—		—
Rabbi trust investments subtotal	11		38			19		68			—			—			—		—			—		—		—		—
Total assets	13		38			19		70			—			—			—		—			30		—		—		30
Liabilities
Deferred compensation obligation	—		(6		)	—		(6		)	—			(1		)	—		(1		)	—		—		—		—
Mark-to-market derivative liabilities(a)	—		—			—		—			(2		)	—			—		(2		)	—		—		—		—
Effect of netting and allocation of collateral	—		—			—		—			2			—			—		2			—		—		—		—
Mark-to-market derivative liabilities subtotal	—		—			—		—			—			—			—		—			—		—		—		—
Total liabilities	—		(6		)	—		(6		)	—			(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	13	$	32		$	19	$	64		$	—		$	(1	)	$	—	$	(1	)	$	30	$	—	$	—	$	30

_______

(a) 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 March 31, 2016 and December 31, 2015:

	Generation										Exelon
As of March 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	$	130	$	—	$	—	$	—	$	130	$	721	$	—	$	—	$	—	$	721
NDT fund investments
Cash equivalents(a)	266		11		—		—		277		266		11		—		—		277
Equities	3,273		21		1		1,875		5,170		3,273		21		1		1,875		5,170
Fixed income
Corporate debt	—		1,868		243		—		2,111		—		1,868		243		—		2,111
U.S. Treasury and agencies	1,402		13		—		—		1,415		1,402		13		—		—		1,415
Foreign governments	—		45		—		—		45		—		45		—		—		45
State and municipal debt	—		285		—		—		285		—		285		—		—		285
Other(b)	—		64		—		376		440		—		64		—		376		440
Fixed income subtotal	1,402		2,275		243		376		4,296		1,402		2,275		243		376		4,296
Middle market lending	—		—		440		—		440		—		—		440		—		440
Private equity	—		—		—		130		130		—		—		—		130		130
Real estate	—		—		—		40		40		—		—		—		40		40
Other	—		—		—		190		190		—		—		—		190		190
NDT fund investments subtotal(c)	4,941		2,307		684		2,611		10,543		4,941		2,307		684		2,611		10,543
Pledged assets for Zion Station decommissioning
Cash equivalents	35		—		—		—		35		35		—		—		—		35
Equities	1		7		—		—		8		1		7		—		—		8
Fixed income
U.S. Treasury and agencies	3		2		—		—		5		3		2		—		—		5

	Generation														Exelon
As of March 31, 2016	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Corporate debt	—			25			—			—		25			—			25			—			—		25
Fixed income subtotal	3			27			—			—		30			3			27			—			—		30
Middle market lending	—			—			25			85		110			—			—			25			85		110
Pledged assets for Zion Station decommissioning subtotal(d)	39			34			25			85		183			39			34			25			85		183
Rabbi trust investments
Cash equivalents	9			—			—			—		9			83			—			—			—		83
Mutual funds	17			—			—			—		17			46			—			—			—		46
Fixed income	—			—			—			—		—			—			14			—			—		14
Life insurance contracts	—			16			—			—		16			—			60			20			—		80
Rabbi trust investments subtotal	26			16			—			—		42			129			74			20			—		223
Commodity derivative assets
Economic hedges	1,591			4,849			1,788			—		8,228			1,591			4,849			1,788			—		8,228
Proprietary trading	31			82			30			—		143			31			82			30			—		143
Effect of netting and allocation of collateral(e)	(1,739		)	(3,997		)	(675		)	—		(6,411		)	(1,739		)	(3,997		)	(675		)	—		(6,411		)
Commodity derivative assets subtotal	(117		)	934			1,143			—		1,960			(117		)	934			1,143			—		1,960
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—			—			—			—		—			—			42			—			—		42
Economic hedges	—			20			—			—		20			—			20			—			—		20
Proprietary trading	11			2			—			—		13			11			2			—			—		13
Effect of netting and allocation of collateral	(4		)	(5		)	—			—		(9		)	(4		)	(5		)	—			—		(9		)
Interest rate and foreign currency derivative assets subtotal	7			17			—			—		24			7			59			—			—		66
Other investments	—			—			36			—		36			—			—			36			—		36
Total assets	5,026			3,308			1,888			2,696		12,918			5,720			3,408			1,908			2,696		13,732
Liabilities
Commodity derivative liabilities
Economic hedges	(2,053		)	(4,688		)	(885		)	—		(7,626		)	(2,054		)	(4,688		)	(1,150		)	—		(7,892		)
Proprietary trading	(28		)	(79		)	(37		)	—		(144		)	(28		)	(79		)	(37		)	—		(144		)
Effect of netting and allocation of collateral(e)	2,089			4,535			826			—		7,450			2,090			4,535			826			—		7,451
Commodity derivative liabilities subtotal	8			(232		)	(96		)	—		(320		)	8			(232		)	(361		)	—		(585		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			(20		)	—			—		(20		)	—			(23		)	—			—		(23		)
Economic hedges	—			(8		)	—			—		(8		)	—			(8		)	—			—		(8		)
Proprietary trading	(11		)	—			—			—		(11		)	(11		)	—			—			—		(11		)
Effect of netting and allocation of collateral	11			5			—			—		16			11			5			—			—		16
Interest rate and foreign currency derivative liabilities subtotal	—			(23		)	—			—		(23		)	—			(26		)	—			—		(26		)
Deferred compensation obligation	—			(30		)	—			—		(30		)	—			(131		)	—			—		(131		)
Total liabilities	8			(285		)	(96		)	—		(373		)	8			(389		)	(361		)	—		(742		)
Total net assets	$	5,034		$	3,023		$	1,792		$	2,696	$	12,545		$	5,728		$	3,019		$	1,547		$	2,696	$	12,990

	Generation														Exelon
As of December 31, 2015	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	$	104		$	—		$	—		$	—	$	104		$	5,766		$	—		$	—		$	—	$	5,766
NDT fund investments
Cash equivalents(a)	219			92			—			—		311			219			92			—			—		311
Equities	3,008			—			—			1,894		4,902			3,008			—			—			1,894		4,902
Fixed income
Corporate debt	—			1,824			242			—		2,066			—			1,824			242			—		2,066
U.S. Treasury and agencies	1,323			15			—			—		1,338			1,323			15			—			—		1,338
Foreign governments	—			61			—			—		61			—			61			—			—		61
State and municipal debt	—			326			—			—		326			—			326			—			—		326
Other(b)	—			147			—			390		537			—			147			—			390		537
Fixed income subtotal	1,323			2,373			242			390		4,328			1,323			2,373			242			390		4,328
Middle market lending	—			—			428			—		428			—			—			428			—		428
Private equity	—			—			—			125		125			—			—			—			125		125
Real estate	—			—			—			35		35			—			—			—			35		35
Other	—			—			—			216		216			—			—			—			216		216
NDT fund investments subtotal(c)	4,550			2,465			670			2,660		10,345			4,550			2,465			670			2,660		10,345
Pledged assets for Zion Station decommissioning
Cash equivalents	—			17			—			—		17			—			17			—			—		17
Equities	1			5			—			—		6			1			5			—			—		6
Fixed income
U.S. Treasury and agencies	6			2			—			—		8			6			2			—			—		8
Corporate debt	—			46			—			—		46			—			46			—			—		46
Other	—			1			—			—		1			—			1			—			—		1
Fixed income subtotal	6			49			—			—		55			6			49			—			—		55
Middle market lending	—			—			22			105		127			—			—			22			105		127
Pledged assets for Zion Station decommissioning subtotal(d)	7			71			22			105		205			7			71			22			105		205
Rabbi trust investments
Mutual funds	17			—			—			—		17			48			—			—			—		48
Life insurance contracts	—			13			—			—		13			—			36			—			—		36
Rabbi trust investments subtotal	17			13			—			—		30			48			36			—			—		84
Commodity derivative assets
Economic hedges	1,922			3,467			1,707			—		7,096			1,922			3,467			1,707			—		7,096
Proprietary trading	36			64			30			—		130			36			64			30			—		130
Effect of netting and allocation of collateral(e)	(1,964		)	(2,629		)	(564		)	—		(5,157		)	(1,964		)	(2,629		)	(564		)	—		(5,157		)
Commodity derivative assets subtotal	(6		)	902			1,173			—		2,069			(6		)	902			1,173			—		2,069
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—			—			—			—		—			—			25			—			—		25
Economic hedges	—			20			—			—		20			—			20			—			—		20
Proprietary trading	10			5			—			—		15			10			5			—			—		15
Effect of netting and allocation of collateral	(3		)	(3		)	—			—		(6		)	(3		)	(3		)	—			—		(6		)

	Generation														Exelon
As of December 31, 2015	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Interest rate and foreign currency derivative assets subtotal	7			22			—			—		29			7			47			—			—		54
Other investments	—			—			33			—		33			—			—			33			—		33
Total assets	4,679			3,473			1,898			2,765		12,815			10,372			3,521			1,898			2,765		18,556
Liabilities
Commodity derivative liabilities
Economic hedges	(2,382		)	(3,348		)	(850		)	—		(6,580		)	(2,382		)	(3,348		)	(1,097		)	—		(6,827		)
Proprietary trading	(33		)	(57		)	(37		)	—		(127		)	(33		)	(57		)	(37		)	—		(127		)
Effect of netting and allocation of collateral(e)	2,440			3,186			765			—		6,391			2,440			3,186			765			—		6,391
Commodity derivative liabilities subtotal	25			(219		)	(122		)	—		(316		)	25			(219		)	(369		)	—		(563		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			(16		)	—			—		(16		)	—			(16		)	—			—		(16		)
Economic hedges	—			(3		)	—			—		(3		)	—			(3		)	—			—		(3		)
Proprietary trading	(12		)	—			—			—		(12		)	(12		)	—			—			—		(12		)
Effect of netting and allocation of collateral	12			3			—			—		15			12			3			—			—		15
Interest rate and foreign currency derivative liabilities subtotal	—			(16		)	—			—		(16		)	—			(16		)	—			—		(16		)
Deferred compensation obligation	—			(30		)	—			—		(30		)	—			(99		)	—			—		(99		)
Total liabilities	25			(265		)	(122		)	—		(362		)	25			(334		)	(369		)	—		(678		)
Total net assets	$	4,704		$	3,208		$	1,776		$	2,765	$	12,453		$	10,397		$	3,187		$	1,529		$	2,765	$	17,878

________

(a) Includes $38 million and $52 million of cash received from outstanding repurchase agreements at March 31, 2016 and December 31, 2015, respectively, and is offset by an obligation to repay upon settlement of the agreement as discussed in (c) below.

(b) Includes derivative instruments of $(11) million and $(8) million, which have a total notional amount of $1,155 million and $1,236 million at March 31, 2016 and December 31, 2015, respectively. The notional principal amounts for these instruments provide one measure of the transaction volume outstanding as of the periods ended and do not represent the amount of the company's exposure to credit or market loss.

(c) Excludes net liabilities of $(17) million and $(3) million at March 31, 2016 and December 31, 2015, 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.

(d) Excludes net assets of $0 million and $1 million at March 31, 2016 and December 31, 2015, respectively. These items consist of receivables related to pending securities sales, interest and dividend receivables, and payables related to pending securities purchases.

(e) Collateral posted to/(received) from counterparties totaled $350 million, $538 million and $151 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of March 31, 2016. Collateral posted (received) from counterparties, net of collateral paid to counterparties, totaled $476 million, $557 million and $201 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of December 31, 2015.

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 March 31, 2016 and December 31, 2015:

	ComEd											PECO										BGE
As of March 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	$	—	$	—		$	—		$	—		$	3	$	—		$	—	$	3		$	43	$	—		$	—	$	43
Rabbi trust investments
Mutual funds	—		—			—			—			8		—			—		8			4		—			—		4
Life insurance contracts	—		—			—			—			—		11			—		11			—		—			—		—
Rabbi trust investments subtotal	—		—			—			—			8		11			—		19			4		—			—		4
Total assets	—		—			—			—			11		11			—		22			47		—			—		47
Liabilities
Deferred compensation obligation	—		(8		)	—			(8		)	—		(12		)	—		(12		)	—		(3		)	—		(3		)
Mark-to-market derivative liabilities(a)	—		—			(265		)	(265		)	—		—			—		—			—		—			—		—
Total liabilities	—		(8		)	(265		)	(273		)	—		(12		)	—		(12		)	—		(3		)	—		(3		)
Total net assets (liabilities)	$	—	$	(8	)	$	(265	)	$	(273	)	$	11	$	(1	)	$	—	$	10		$	47	$	(3	)	$	—	$	44

	ComEd											PECO										BGE
As of December 31, 2015	Level 1		Level 2			Level 3			Total			Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
Assets
Cash equivalents	$	29	$	—		$	—		$	29		$	271	$	—		$	—	$	271		$	25	$	—		$	—	$	25
Rabbi trust investments
Mutual funds	—		—			—			—			8		—			—		8			4		—			—		4
Life insurance contracts	—		—			—			—			—		12			—		12			—		—			—		—
Rabbi trust investments subtotal	—		—			—			—			8		12			—		20			4		—			—		4
Total assets	29		—			—			29			279		12			—		291			29		—			—		29
Liabilities
Deferred compensation obligation	—		(8		)	—			(8		)	—		(12		)	—		(12		)	—		(4		)	—		(4		)
Mark-to-market derivative liabilities(a)	—		—			(247		)	(247		)	—		—			—		—			—		—			—		—
Total liabilities	—		(8		)	(247		)	(255		)	—		(12		)	—		(12		)	—		(4		)	—		(4		)
Total net assets (liabilities)	$	29	$	(8	)	$	(247	)	$	(226	)	$	279	$	—		$	—	$	279		$	29	$	(4	)	$	—	$	25

_________

(a) The Level 3 balance consists of the current and noncurrent liability of $26 million and $239 million, respectively, at March 31, 2016, and $23 million and $224 million, respectively, at December 31, 2015, 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 months ended March 31, 2016 and 2015:

																			Successor
	Generation															ComEd			PHI(a)					Exelon
Three Months Ended March 31, 2016	NDT Fund Investments				Pledged Assets for Zion Station Decommissioning		Mark-to-Market Derivatives				Other Investments		Total Generation			Mark-to-Market Derivatives(b)			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				—		(6		)	(c)	—		(4		)	—			—		—			(4		)
Included in noncurrent payables to affiliates	4				—		—				—		4			—			—		(4		)	—
Included in payable for Zion Station decommissioning	—				2		—				—		2			—			—		—			2
Included in regulatory assets/liabilities	—				—		—				—		—			(18		)	—		4			(14		)
Change in collateral	—				—		(50		)		—		(50		)	—			—		—			(50		)
Purchases, sales, issuances and settlements
Purchases	34				1		59				3		97			—			—		—			97
Sales	—				—		(2		)		—		(2		)	—			—		—			(2		)
Settlements	(26		)		—		—				—		(26		)	—			—		—			(26		)
Transfers into Level 3	—				—		2				—		2			—			—		—			2
Transfers out of Level 3	—				—		(7		)		—		(7		)	—			—		—			(7		)
Balance as of March 31, 2016	$	684			$	25	$	1,047			$	36	$	1,792		$	(265	)	$	20	$	—		$	1,547
The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities as of March 31, 2016	$	1			$	—	$	219			$	—	$	220		$	—		$	—	$	—		$	220

	Generation															ComEd						Exelon
Three Months Ended March 31, 2015	NDT Fund Investments			Pledged Assets for Zion Station Decommissioning			Mark-to-Market Derivatives				Other Investments		Total Generation			Mark-to-Market Derivatives(b)			Eliminated in Consolidation			Total
Balance as of December 31, 2014	$	605		$	50		$	1,050			$	3	$	1,708		$	(207	)	$	—		$	1,501
Total realized / unrealized gains (losses)
Included in net income	2			—			(32		)	(c)	—		(30		)	—			—			(30		)
Included in other comprehensive income	—			—			—				—		—			—			—			—
Included in noncurrent payables to affiliates	10			—			—				—		10			—			(10		)	—
Included in payable for Zion Station decommissioning	—			3			—				—		3			—			—			3
Included in regulatory assets	—			—			—				—		—			(34		)	10			(24		)
Change in collateral	—			—			12				—		12			—			—			12
Purchases, sales, issuances and settlements
Purchases	28			—			41				—		69			—			—			69
Sales	(8		)	(9		)	—				—		(17		)	—			—			(17		)
Settlements	(29		)	—			—				—		(29		)	—			—			(29		)
Transfers into Level 3	4			—			—				—		4			—			—			4
Transfers out of Level 3	—			—			(5		)		—		(5		)	—			—			(5		)
Balance as of March 31, 2015	$	612		$	44		$	1,066			$	3	$	1,725		$	(241	)	$	—		$	1,484
The amount of total gains included in income attributed to the change in unrealized gains related to assets and liabilities as of March 31, 2015	$	1		$	—		$	180			$	—	$	181		$	—		$	—		$	181

_________

(a) Successor period represents activity from March 24, 2016 through March 31, 2016. See tables below for PHI's predecessor periods, as well as activity for Pepco and DPL for the three months ended March 31, 2016 and 2015.

(b) Includes $25 million of decreases in fair value and realized losses due to settlements of $7 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended March 31, 2016. Includes $36 million of decreases in fair value and realized losses due to settlements of $2 million for the three months ended March 31, 2015.

(c) Includes a reduction for the reclassification of $225 million and $212 million of realized gains due to the settlement of derivative contracts recorded in results of operations for the three months ended March 31, 2016 and 2015, respectively.

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

Fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis, valuation technique

The table below discloses the significant inputs to the forward curve used to value these positions.

Type of trade	Fair Value at March 31, 2016			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(c)	$	903		Discounted Cash Flow	Forward power price	$7	-	$88
					Forward gas price	$0.58	-	$7.67
				Option Model	Volatility percentage	5%	-	184%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(c)	$	(7	)	Discounted Cash Flow	Forward power price	$9	-	$83
Mark-to-market derivatives (Exelon and ComEd)	$	(265	)	Discounted Cash Flow	Forward heat rate(b)	9x	-	10x
					Marketability reserve	3.5%	-	7%
					Renewable factor	88%	-	129%

_________

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

(b) 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.

(c) The fair values do not include cash collateral posted on level three positions of $151 million as of March 31, 2016.

Type of trade	Fair Value at December 31, 2015			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(c)	$	857		Discounted Cash Flow	Forward power price	$11	-	$88
					Forward gas price	$1.18	-	$8.95
				Option Model	Volatility percentage	5%	-	152%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(c)	$	(7	)	Discounted Cash Flow	Forward power price	$13	-	$78
Mark-to-market derivatives (Exelon and ComEd)	$	(247	)	Discounted Cash Flow	Forward heat rate(b)	9x	-	10x
					Marketability reserve	3.5%	-	7%
					Renewable factor	87%	-	128%

 _________

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

(b) 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.

(c) The fair values do not include cash collateral held on level three positions of $201 million as of December 31, 2015.

Exelon Generation Co L L C [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

Generation

	March 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	1,529	$	—	$	1,529	$	—	$	1,529
Long-term debt (including amounts due within one year)(a)	9,052		—		7,539		1,549		9,088
SNF obligation	1,022		—		817		—		817

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	29	$	—	$	29	$	—	$	29
Long-term debt (including amounts due within one year)(a)	8,959		—		7,767		1,349		9,116
SNF obligation	1,021		—		818		—		818

Commonwealth Edison Co [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

ComEd

	March 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	643	$	—	$	643	$	—	$	643
Long-term debt (including amounts due within one year)(a)	6,510		—		7,357		—		7,357
Long-term debt to financing trusts(b)	205		—		—		207		207

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	294	$	—	$	294	$	—	$	294
Long-term debt (including amounts due within one year)(a)	6,509		—		7,069		—		7,069
Long-term debt to financing trusts(b)	205		—		—		213		213

PECO Energy Co [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

PECO

	March 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,581	$	—	$	2,900	$	—	$	2,900
Long-term debt to financing trusts	184		—		—		196		196

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,580	$	—	$	2,786	$	—	$	2,786
Long-term debt to financing trusts	184		—		—		195		195

Baltimore Gas and Electric Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

BGE

	March 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	153	$	3	$	150	$	—	$	153
Long-term debt (including amounts due within one year)(a)	1,859		—		2,119		—		2,119
Long-term debt to financing trusts(b)	252		—		—		267		267

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	213	$	3	$	210	$	—	$	213
Long-term debt (including amounts due within one year)(a)	1,858		—		2,044		—		2,044
Long-term debt to financing trusts(b)	252		—		—		264		264

PEPCO Holdings Inc [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

PHI

	March 31, 2016
	Carrying Amount		Fair Value
Successor			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	1,317	$	—	$	1,317	$	—	$	1,317
Long-term debt (including amounts due within one year)	6,132		—		5,540		586		6,126

	December 31, 2015
	Carrying Amount		Fair Value
Predecessor			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	958	$	—	$	958	$	—	$	958
Long-term debt (including amounts due within one year)(a)	5,279		—		5,231		586		5,817
Preferred stock	183		—		—		183		183

Potomac Electric Power Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

Pepco

	March 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,352	$	—	$	2,876	$	—	$	2,876

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	64	$	—	$	64	$	—	$	64
Long-term debt (including amounts due within one year)(a)	2,351		—		2,673		—		2,673

Delmarva Power and Light Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

DPL

	March 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	75	$	—	$	75	$	—	$	75
Long-term debt (including amounts due within one year)(a)	1,265		—		1,238		103		1,341

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	105	$	—	$	105	$	—	$	105
Long-term debt (including amounts due within one year)(a)	1,265		—		1,185		103		1,288

Atlantic City Electric Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

ACE

	March 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,191	$	—	$	1,081	$	288	$	1,369

	December 31, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	5	$	—	$	5	$	—	$	5
Long-term debt (including amounts due within one year)(a)	1,201		—		1,044		280		1,324