Fair Value of Financial Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2016 and December 31, 2015:

Exelon

	June 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	954	$	3	$	951	$	—	$	954
Long-term debt (including amounts due within one year)(a)	34,234		1,135		33,863		2,176		37,174
Long-term debt to financing trusts(b)	641		—		—		689		689
SNF obligation	1,023		—		835		—		835

	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

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 June 30, 2016 and December 31, 2015:

	Generation										Exelon
As of June 30, 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(a)	$	42	$	—	$	—	$	—	$	42	$	1,311	$	—	$	—	$	—	$	1,311
NDT fund investments
Cash equivalents(b)	381		12		—		—		393		381		12		—		—		393
Equities	3,205		215		1		1,908		5,329		3,205		215		1		1,908		5,329
Fixed income
Corporate debt	—		1,910		249		—		2,159		—		1,910		249		—		2,159
U.S. Treasury and agencies	1,452		29		—		—		1,481		1,452		29		—		—		1,481
Foreign governments	—		44		—		—		44		—		44		—		—		44
State and municipal debt	—		285		—		—		285		—		285		—		—		285
Other(c)	—		60		—		399		459		—		60		—		399		459
Fixed income subtotal	1,452		2,328		249		399		4,428		1,452		2,328		249		399		4,428
Middle market lending	—		—		465		—		465		—		—		465		—		465
Private equity	—		—		—		124		124		—		—		—		124		124
Real estate	—		—		—		46		46		—		—		—		46		46
NDT fund investments subtotal(d)	5,038		2,555		715		2,477		10,785		5,038		2,555		715		2,477		10,785
Pledged assets for Zion Station decommissioning
Cash equivalents	15		—		—		—		15		15		—		—		—		15
Equities	—		6		—		—		6		—		6		—		—		6
Fixed income
U.S. Treasury and agencies	23		2		—		—		25		23		2		—		—		25
Corporate debt	—		9		—		—		9		—		9		—		—		9

	Generation														Exelon
As of June 30, 2016	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Fixed income subtotal	23			11			—			—		34			23			11			—			—		34
Middle market lending	—			—			25			81		106			—			—			25			81		106
Pledged assets for Zion Station decommissioning subtotal(e)	38			17			25			81		161			38			17			25			81		161
Rabbi trust investments
Cash equivalents	8			—			—			—		8			81			—			—			—		81
Mutual funds	18			—			—			—		18			49			—			—			—		49
Fixed income	—			—			—			—		—			—			14			—			—		14
Life insurance contracts	—			17			—			—		17			—			63			20			—		83
Rabbi trust investments subtotal	26			17			—			—		43			130			77			20			—		227
Commodity derivative assets
Economic hedges	1,342			3,087			1,506			—		5,935			1,343			3,087			1,506			—		5,936
Proprietary trading	25			71			31			—		127			25			71			31			—		127
Effect of netting and allocation of collateral(f)	(1,308		)	(2,733		)	(779		)	—		(4,820		)	(1,309		)	(2,733		)	(779		)	—		(4,821		)
Commodity derivative assets subtotal	59			425			758			—		1,242			59			425			758			—		1,242
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—			—			—			—		—			—			47			—			—		47
Economic hedges	—			28			—			—		28			—			28			—			—		28
Proprietary trading	10			1			—			—		11			10			1			—			—		11
Effect of netting and allocation of collateral	(7		)	(16		)	—			—		(23		)	(7		)	(16		)	—			—		(23		)
Interest rate and foreign currency derivative assets subtotal	3			13			—			—		16			3			60			—			—		63
Other investments	—			—			37			—		37			—			—			37			—		37
Total assets	5,206			3,027			1,535			2,558		12,326			6,579			3,134			1,555			2,558		13,826
Liabilities
Commodity derivative liabilities
Economic hedges	(1,456		)	(3,089		)	(1,013		)	—		(5,558		)	(1,456		)	(3,089		)	(1,234		)	—		(5,779		)
Proprietary trading	(24		)	(73		)	(34		)	—		(131		)	(24		)	(73		)	(34		)	—		(131		)
Effect of netting and allocation of collateral(f)	1,431			3,012			898			—		5,341			1,431			3,012			898			—		5,341
Commodity derivative liabilities subtotal	(49		)	(150		)	(149		)	—		(348		)	(49		)	(150		)	(370		)	—		(569		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			(21		)	—			—		(21		)	—			(23		)	—			—		(23		)
Economic hedges	—			(19		)	—			—		(19		)	—			(19		)	—			—		(19		)
Proprietary trading	(9		)	—			—			—		(9		)	(9		)	—			—			—		(9		)
Effect of netting and allocation of collateral	10			16			—			—		26			10			16			—			—		26
Interest rate and foreign currency derivative liabilities subtotal	1			(24		)	—			—		(23		)	1			(26		)	—			—		(25		)
Deferred compensation obligation	—			(30		)	—			—		(30		)	—			(127		)	—			—		(127		)
Total liabilities	(48		)	(204		)	(149		)	—		(401		)	(48		)	(303		)	(370		)	—		(721		)
Total net assets	$	5,158		$	2,823		$	1,386		$	2,558	$	11,925		$	6,531		$	2,831		$	1,185		$	2,558	$	13,105

	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(a)	$	104		$	—		$	—		$	—	$	104		$	5,766		$	—		$	—		$	—	$	5,766
NDT fund investments
Cash equivalents(b)	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(c)	—			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(d)	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(e)	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(f)	(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(f)	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) Generation excludes cash of $332 million million and $329 million at June 30, 2016 and December 31, 2015 and restricted cash of $97 million and $121 million at June 30, 2016 and December 31, 2015.  Exelon excludes cash of $423 million and $763 million at June 30, 2016 and December 31, 2015 and restricted cash of $136 million and $178 million at June 30, 2016 and December 31, 2015 and includes long term restricted cash of $22 million at June 30, 2016, which is reported in other deferred debits on the balance sheet.

(b) Includes $71 million and $52 million of cash received from outstanding repurchase agreements at June 30, 2016 and December 31, 2015, respectively, and is offset by an obligation to repay upon settlement of the agreement as discussed in (d) below.

(c) Includes derivative instruments of $(16) million and $(8) million, which have a total notional amount of $1,303 million and $1,236 million at June 30, 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.

(d) Excludes net liabilities of $(48) million and $(3) million at June 30, 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.

(e) Excludes net assets of less than $1 million and $1 million at June 30, 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.

(f) Collateral posted to/(received) from counterparties totaled $123 million, $279 million and $119 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of June 30, 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 June 30, 2016 and December 31, 2015:

	ComEd											PECO										BGE
As of June 30, 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(a)	$	700	$	—		$	—		$	700		$	184	$	—		$	—	$	184		$	20	$	—		$	—	$	20
Rabbi trust investments
Mutual funds	—		—			—			—			7		—			—		7			4		—			—		4
Life insurance contracts	—		—			—			—			—		11			—		11			—		—			—		—
Rabbi trust investments subtotal	—		—			—			—			7		11			—		18			4		—			—		4
Total assets	700		—			—			700			191		11			—		202			24		—			—		24
Liabilities
Deferred compensation obligation	—		(8		)	—			(8		)	—		(10		)	—		(10		)	—		(4		)	—		(4		)
Mark-to-market derivative liabilities(b)	—		—			(221		)	(221		)	—		—			—		—			—		—			—		—
Total liabilities	—		(8		)	(221		)	(229		)	—		(10		)	—		(10		)	—		(4		)	—		(4		)
Total net assets (liabilities)	$	700	$	(8	)	$	(221	)	$	471		$	191	$	1		$	—	$	192		$	24	$	(4	)	$	—	$	20

	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(b)	—		—			(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) ComEd excludes cash of $36 million and $38 million at June 30, 2016 and December 31, 2015 and restricted cash of $2 million and $2 million at June 30, 2016 and December 31, 2015.  PECO excludes cash of $22 million and $27 million at June 30, 2016 and December 31, 2015.  BGE excludes cash of $5 million and $6 million at June 30, 2016 and December 31, 2015 and restricted cash of $2 million and $2 million at June 30, 2016 and December 31, 2015 and includes long term restricted cash of $3 million at June 30, 2016, which is reported in other deferred debits on the balance sheet.

(b) The Level 3 balance consists of the current and noncurrent liability of $18 million and $203 million, respectively, at June 30, 2016, and $23 million and $224 million, respectively, at December 31, 2015, related to floating-to-fixed energy swap contracts with unaffiliated suppliers.

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 June 30, 2016 and December 31, 2015:

	Successor											Predecessor
	As of June 30, 2016											As of December 31, 2015
PHI	Level 1			Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total
Assets
Cash equivalents(a)	$	344		$	—		$	—	$	344		$	42		$	—		$	—	$	42
Mark-to-market derivative assets(b)(c)	1			—			—		1			—			—			18		18
Effect of netting and allocation of collateral	(1		)	—			—		(1		)	—			—			—		—
Mark-to-market derivative assets subtotal	—			—			—		—			—			—			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	417			36			20		473			54			42			37		133
Liabilities
Deferred compensation obligation	—			(28		)	—		(28		)	—			(30		)	—		(30		)
Mark-to-market derivative liabilities(b)	—			—			—		—			(2		)	—			—		(2		)
Effect of netting and allocation of collateral	—			—			—		—			2			—			—		2
Mark-to-market derivative liabilities subtotal	—			—			—		—			—			—			—		—
Total liabilities	—			(28		)	—		(28		)	—			(30		)	—		(30		)
Total net assets	$	417		$	8		$	20	$	445		$	54		$	12		$	37	$	103

	Pepco										DPL											ACE
As of June 30, 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(a)	$	155	$	—		$	—	$	155		$	12		$	—		$	—	$	12		$	176	$	—	$	—	$	176
Mark-to-market derivative assets(b)	—		—			—		—			1			—			—		1			—		—		—		—
Effect of netting and allocation of collateral	—		—			—		—			(1		)	—			—		(1		)	—		—		—		—
Mark-to-market derivative assets subtotal	—		—			—		—			—			—			—		—			—		—		—		—
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	198		36			20		254			12			—			—		12			176		—		—		176
Liabilities
Deferred compensation obligation	—		(5		)	—		(5		)	—			(1		)	—		(1		)	—		—		—		—
Total liabilities	—		(5		)	—		(5		)	—			(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	198	$	31		$	20	$	249		$	12		$	(1	)	$	—	$	11		$	176	$	—	$	—	$	176

	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(b)	—		—			—		—			(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) PHI excludes cash of $13 million and $16 million at June 30, 2016 and December 31, 2015 and includes long term restricted cash of $19 million and $18 million at June 30, 2016 and December 31, 2015 which is reported in other deferred debits on the balance sheet.  Pepco excludes cash of $5 million and $5 million at June 30, 2016 and December 31, 2015. DPL excludes cash of $4 million and $5 million at June 30, 2016 and December 31, 2015. ACE excludes cash of $4 million and $3 million at June 30, 2016 and December 31, 2015 and includes long term restricted cash of $19 million and $18 million at June 30, 2016 and December 31, 2015 which is reported in other deferred debits on the balance sheet.

(b) Represents natural gas futures purchased by DPL as part of a natural gas hedging program approved by the

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

March 23, 2016.

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 and six months ended June 30, 2016 and 2015:

																		Successor
	Generation														ComEd			PHI						Exelon
Three Months Ended June 30, 2016	NDT Fund Investments			Pledged Assets for Zion Station Decommissioning		Mark-to-Market Derivatives				Other Investments		Total Generation			Mark-to-Market Derivatives (a)			Life Insurance Contracts			Eliminated in Consolidation			Total
Balance as of March 31, 2016	$	684		$	25	$	1,047			$	36	$	1,792		$	(265	)	$	20		$	—		$	1,547
Total realized / unrealized gains (losses)
Included in net income	4			—		(428		)	(b)	—		(424		)	—			1			—			(423		)
Included in noncurrent payables to affiliates	8			—		—				—		8			—			—			(8		)	—
Included in payable for Zion Station decommissioning	—			—		—				—		—			—			—			—			—
Included in regulatory assets	—			—		—				—		—			44			—			8			52
Change in collateral	—			—		(32		)		—		(32		)	—			—			—			(32		)
Purchases, sales, issuances and settlements
Purchases	85			—		23				1		109			—			—			—			109
Sales	(1		)	—		(1		)		—		(2		)	—			—			—			(2		)
Issuances	—			—		—				—		—			—			(1		)	—			(1		)
Settlements	(65		)	—		—				—		(65		)	—			—			—			(65		)
Transfers into Level 3	—			—		—				—		—			—			—			—			—
Transfers out of Level 3	—			—		—						—			—			—			—			—
Balance at June 30, 2016	$	715		$	25	$	609			$	37	$	1,386		$	(221	)	$	20		$	—		$	1,185
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of June 30, 2016	$	3		$	—	$	(264	)		$	—	$	(261	)				$	1		$	—		$	(260	)

																			Successor
	Generation															ComEd			PHI(c)						Exelon
Six Months Ended June 30, 2016	NDT Fund Investments				Pledged Assets for Zion Station Decommissioning		Mark-to-Market Derivatives				Other Investments		Total Generation			Mark-to-Market Derivatives(a)			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	6				—		(434		)	(b)	—		(428		)	—			1			—			(427		)
Included in noncurrent payables to affiliates	12				—		—				—		12			—			—			(12		)	—
Included in payable for Zion Station decommissioning	—				2		—				—		2			—			—			—			2
Included in regulatory assets/liabilities	—				—		—				—		—			26			—			12			38
Change in collateral	—				—		(82		)		—		(82		)	—			—			—			(82		)
Purchases, sales, issuances and settlements
Purchases	119				1		82				4		206			—			—			—			206
Sales	(1		)		—		(3		)		—		(4		)	—			—			—			(4		)
Issuances	—				—		—				—		—			—			(1		)	—			(1		)
Settlements	(91		)		—		—				—		(91		)	—			—			—			(91		)
Transfers into Level 3	—				—		2				—		2			—			—			—			2
Transfers out of Level 3	—				—		(7		)		—		(7		)	—			—			—			(7		)
Balance as of June 30, 2016	$	715			$	25	$	609			$	37	$	1,386		$	(221	)	$	20		$	—		$	1,185
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of June 30, 2016	$	4			$	—	$	(45	)		$	—	$	(41	)	$	—		$	1		$	—		$	(40	)

___________________

(a) Includes $40 million of increases in fair value and realized losses due to settlements of $4 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended June 30, 2016. Includes $15 million of increases in fair value and realized losses due to settlements of $11 million for the six months ended June 30, 2016.

(b) Includes a reduction for the reclassification of $164 million and $389 million of realized gains due to the settlement of derivative contracts recorded in results of operations for the three and six months ended June 30, 2016, respectively.

(c) Successor period represents activity from March 24, 2016 through June 30, 2016. See tables below for PHI's predecessor periods, as well as activity for Pepco and DPL for the three and six months ended June 30, 2016.

	Generation															ComEd						Exelon
Three Months Ended June 30, 2015	NDT Fund Investments			Pledged Assets for Zion Station Decommissioning			Mark-to-Market Derivatives				Other Investments		Total Generation			Mark-to-Market Derivatives (a)			Eliminated in Consolidation			Total
Balance as of March 31, 2015	$	612		$	44		$	1,066			$	3	$	1,725		$	(241	)	$	—		$	1,484
Total realized / unrealized gains     (losses)													—
Included in net income	2			—			(7		)	(b)	—		(5		)	—			—			(5		)
Included in noncurrent payables to affiliates	7			—			—				—		7			—			(7		)	—
Included in payable for Zion Station decommissioning	—			(2		)	—				—		(2		)	—			—			(2		)
Included in regulatory assets	—			—			—				—		—			18			7			25
Change in collateral	—			—			(30		)		—		(30		)	—			—			(30		)
Purchases, sales, issuances and settlements
Purchases	79			1			16				27		123			—			—			123
Sales	—			(2		)	(5		)		—		(7		)	—			—			(7		)
Settlements	(33		)	—			—				—		(33		)	—			—			(33		)
Transfers into Level 3	—			—			11				—		11			—			—			11
Transfers out of Level 3	—			—			(30		)		—		(30		)	—			—			(30		)
Balance as of June 30, 2015	$	667		$	41		$	1,021			$	30	$	1,759		$	(223	)	$	—		$	1,536
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of June 30, 2015	$	2		$	—		$	175			$	—	$	177		$	—		$	—		$	177

	Generation															ComEd						Exelon
Six Months Ended June 30, 2015	NDT Fund Investments			Pledged Assets for Zion Station Decommissioning			Mark-to-Market Derivatives				Other Investments		Total Generation			Mark-to-Market Derivatives(a)			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	4			—			(39		)	(b)	—		(35		)	—			—			(35		)
Included in noncurrent payables to affiliates	17			—			—				—		17			—			(17		)	—
Included in payable for Zion Station decommissioning	—			1			—				—		1			—			—			1
Included in regulatory assets	—			—			—				—		—			(16		)	17			1
Change in collateral	—			—			(18		)		—		(18		)	—			—			(18		)
Purchases, sales, issuances and settlements
Purchases	107			1			57				27		192			—			—			192
Sales	(8		)	(11		)	(5		)		—		(24		)	—			—			(24		)
Settlements	(62		)	—			—				—		(62		)	—			—			(62		)
Transfers into Level 3	4			—			11				—		15			—			—			15
Transfers out of Level 3	—			—			(35		)		—		(35		)	—			—			(35		)
Balance as of June 30, 2015	$	667		$	41		$	1,021			$	30	$	1,759		$	(223	)	$	—		$	1,536
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of June 30, 2015	$	3		$	—		$	355			$	—	$	358		$	—		$	—		$	358

_________

(a) Includes $14 million of increases in fair value and realized losses due to settlements of $4 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended June 30, 2015. Includes $22 million of decreases in fair value and realized losses due to settlements of $6 million for the six months ended June 30, 2015.

(b) Includes an increase for the reclassification of $182 million and $394 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, 2015, respectiv

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

isk.

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

Type of trade	Fair Value at June 30, 2016			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(c)	$	493		Discounted Cash Flow	Forward power price	$8	-	$130
					Forward gas price	$1.74	-	$10.19
				Option Model	Volatility percentage	5%	-	353%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(c)	$	(3	)	Discounted Cash Flow	Forward power price	$12	-	$84
Mark-to-market derivatives (Exelon and ComEd)	$	(221	)	Discounted Cash Flow	Forward heat rate(b)	8x	-	9x
					Marketability reserve	3%	-	8%
					Renewable factor	88%	-	120%

_________

(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 $119 million as of June 30, 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 posted on level three positions of $201 million as of

Exelon Generation Co L L C [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

Generation

	June 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	208	$	—	$	208	$	—	$	208
Long-term debt (including amounts due within one year)(a)	9,066		—		7,953		1,577		9,530
SNF obligation	1,023		—		835		—		835

	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

	June 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	35	$	—	$	35	$	—	$	35
Long-term debt (including amounts due within one year)(a)	7,695		—		8,832		—		8,832
Long-term debt to financing trusts(b)	205		—		—		209		209

	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

	June 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,581	$	—	$	3,002	$	—	$	3,002
Long-term debt to financing trusts	184		—		—		205		205

	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

	June 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	211	$	3	$	208	$	—	$	211
Long-term debt (including amounts due within one year)(a)	1,820		—		2,136		—		2,136
Long-term debt to financing trusts(b)	252		—		—		275		275

	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

	June 30, 2016
	Carrying Amount		Fair Value
Successor			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	500	$	—	$	500	$	—	$	500
Long-term debt (including amounts due within one year)	6,073		—		5,752		599		6,351

	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

	June 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,349	$	—	$	3,028	$	2	$	3,030

	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

	June 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,265	$	—	$	1,279	$	102	$	1,381

	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

	June 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,180	$	—	$	1,083	$	301	$	1,384

	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