Fair Value of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 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 September 30, 2016 and December 31, 2015:

Exelon

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	567	$	—	$	567	$	—	$	567
Long-term debt (including amounts due within one year)(a)	34,842		1,075		34,272		2,279		37,626
Long-term debt to financing trusts(b)	642		—		—		692		692
SNF obligation	1,023		—		856		—		856

	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

Generation

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	40	$	—	$	40	$	—	$	40
Long-term debt (including amounts due within one year)(a)	9,255		—		8,015		1,684		9,699
SNF obligation	1,023		—		856		—		856

	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

ComEd

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	10	$	—	$	10	$	—	$	10
Long-term debt (including amounts due within one year)(a)	7,031		—		8,081		—		8,081
Long-term debt to financing trusts(b)	205		—		—		218		218

	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

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,879	$	—	$	3,266	$	—	$	3,266
Long-term debt to financing trusts	184		—		—		207		207

	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

BGE

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,662	$	—	$	2,966	$	—	$	2,966
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

PHI

	September 30, 2016
	Carrying Amount		Fair Value
Successor			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	517	$	—	$	517	$	—	$	517
Long-term debt (including amounts due within one year)	6,044		—		5,698		594		6,292

	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

Pepco

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,350	$	—	$	3,000	$	2	$	3,002

	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

DPL

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	17	$	—	$	17	$	—	$	17
Long-term debt (including amounts due within one year)(a)	1,265		—		1,277		101		1,378

	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

ACE

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,167	$	—	$	1,058	$	299	$	1,357

	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

________

(a) Includes unamortized debt issuance costs which are not fair valued of $204 million, $68 million, $47 million, $16 million, $15 million, $30 million, $10 million, and $6 million for Exelon, Generation, ComEd, PECO, BGE, Pepco, DPL and ACE, respectively, as of September 30, 2016. Includes unamortized debt issuance costs of $180 million, $70 million, $38 million, $15 million, $9 million, $49 million, $31 million, $10 million, and $6 million for Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, respectively, as of December 31, 2015.

(b) Includes unamortized debt issuance costs which are not fair valued of $7 million, $1 million, and $6 million for Exelon, ComEd and BGE, respectively, as of September 30, 2016 and December 31, 2015.

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 September 30, 2016 and December 31, 2015:

	Successor											Predecessor
	As of September 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)	$	347		$	—		$	—	$	347		$	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			21		43			—			27			19		46
Rabbi trust investments subtotal	73			36			21		130			12			42			19		73
Total assets	420			36			21		477			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	$	420		$	8		$	21	$	449		$	54		$	12		$	37	$	103

	Pepco										DPL											ACE
As of September 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)	$	127	$	—		$	—	$	127		$	—		$	—		$	—	$	—		$	194	$	—	$	—	$	194
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			21		43			—			—			—		—			—		—		—		—
Rabbi trust investments subtotal	43		36			21		100			—			—			—		—			—		—		—		—
Total assets	170		36			21		227			—			—			—		—			194		—		—		194
Liabilities
Deferred compensation obligation	—		(5		)	—		(5		)	—			(1		)	—		(1		)	—		—		—		—
Total liabilities	—		(5		)	—		(5		)	—			(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	170	$	31		$	21	$	222		$	—		$	(1	)	$	—	$	(1	)	$	194	$	—	$	—	$	194

	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 $20 million and $16 million at September 30, 2016 and December 31, 2015 and includes long term restricted cash of $19 million and $18 million at September 30, 2016 and December 31, 2015 which is reported in other deferred debits on the balance sheet.  Pepco excludes cash of $8 million and $5 million at September 30, 2016 and December 31, 2015. DPL excludes cash of $4 million and $5 million at September 30, 2016 and December 31, 2015. ACE excludes cash of $5 million and $3 million at September 30, 2016 and December 31, 2015 and includes long term restricted cash of $19 million and $18 million at September 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 DPSC.

(c) Prior to the PHI Merger, PHI recorded derivative assets for the embedded call and redemption features on the shares of Preferred Stock outstanding as of December 31, 2015. See Note 16 - Mezzanine Equity for additional information. As a result of the PHI Merger, the PHI preferred stock derivative was reduced to zero as of March 23, 2016.

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 September 30, 2016 and December 31, 2015:

	Generation										Exelon
As of September 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)	$	94	$	—	$	—	$	—	$	94	$	1,645	$	—	$	—	$	—	$	1,645
NDT fund investments
Cash equivalents(b)	163		20		—		—		183		163		20		—		—		183
Equities	3,566		335		—		1,992		5,893		3,566		335		—		1,992		5,893
Fixed income
Corporate debt	—		1,629		257		—		1,886		—		1,629		257		—		1,886
U.S. Treasury and agencies	1,363		33		—		—		1,396		1,363		33		—		—		1,396
Foreign governments	—		50		—		—		50		—		50		—		—		50
State and municipal debt	—		268		—		—		268		—		268		—		—		268
Other(c)	—		56		—		510		566		—		56		—		510		566
Fixed income subtotal	1,363		2,036		257		510		4,166		1,363		2,036		257		510		4,166
Middle market lending	—		—		436		23		459		—		—		436		23		459
Private equity	—		—		—		138		138		—		—		—		138		138
Real estate	—		—		—		306		306		—		—		—		306		306
NDT fund investments subtotal(d)	5,092		2,391		693		2,969		11,145		5,092		2,391		693		2,969		11,145
Pledged assets for Zion Station decommissioning
Cash equivalents	14		—		—		—		14		14		—		—		—		14
Equities	—		1		—		—		1		—		1		—		—		1
Fixed income
U.S. Treasury and agencies	28		2		—		—		30		28		2		—		—		30
Corporate debt	—		3		—		—		3		—		3		—		—		3

	Generation														Exelon
As of September 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	28			5			—			—		33			28			5			—			—		33
Middle market lending	—			—			19			68		87			—			—			19			68		87
Pledged assets for Zion Station decommissioning subtotal(e)	42			6			19			68		135			42			6			19			68		135
Rabbi trust investments
Cash equivalents	10			—			—			—		10			83			—			—			—		83
Mutual funds	19			—			—			—		19			50			—			—			—		50
Fixed income	—			—			—			—		—			—			14			—			—		14
Life insurance contracts	—			18			—			—		18			—			64			21			—		85
Rabbi trust investments subtotal	29			18			—			—		47			133			78			21			—		232
Commodity derivative assets
Economic hedges	883			2,790			1,948			—		5,621			884			2,790			1,948			—		5,622
Proprietary trading	11			51			36			—		98			11			51			36			—		98
Effect of netting and allocation of collateral(f)	(927		)	(2,527		)	(896		)	—		(4,350		)	(928		)	(2,527		)	(896		)	—		(4,351		)
Commodity derivative assets subtotal	(33		)	314			1,088			—		1,369			(33		)	314			1,088			—		1,369
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—			—			—			—		—			—			39			—			—		39
Economic hedges	—			28			—			—		28			—			28			—			—		28
Proprietary trading	7			1			—			—		8			7			1			—			—		8
Effect of netting and allocation of collateral	(4		)	(17		)	—			—		(21		)	(4		)	(17		)	—			—		(21		)
Interest rate and foreign currency derivative assets subtotal	3			12			—			—		15			3			51			—			—		54
Other investments	—			—			42			—		42			—			—			42			—		42
Total assets	5,227			2,741			1,842			3,037		12,847			6,882			2,840			1,863			3,037		14,622
Liabilities
Commodity derivative liabilities
Economic hedges	(1,037		)	(2,917		)	(1,160		)	—		(5,114		)	(1,037		)	(2,917		)	(1,404		)	—		(5,358		)
Proprietary trading	(10		)	(53		)	(39		)	—		(102		)	(10		)	(53		)	(39		)	—		(102		)
Effect of netting and allocation of collateral(f)	1,012			2,777			1,046			—		4,835			1,012			2,777			1,046			—		4,835
Commodity derivative liabilities subtotal	(35		)	(193		)	(153		)	—		(381		)	(35		)	(193		)	(397		)	—		(625		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			(18		)	—			—		(18		)	—			(18		)	—			—		(18		)
Economic hedges	—			(19		)	—			—		(19		)	—			(19		)	—			—		(19		)
Proprietary trading	(6		)	—			—			—		(6		)	(6		)	—			—			—		(6		)
Effect of netting and allocation of collateral	8			16			—			—		24			8			16			—			—		24
Interest rate and foreign currency derivative liabilities subtotal	2			(21		)	—			—		(19		)	2			(21		)	—			—		(19		)
Deferred compensation obligation	—			(32		)	—			—		(32		)	—			(131		)	—			—		(131		)
Total liabilities	(33		)	(246		)	(153		)	—		(432		)	(33		)	(345		)	(397		)	—		(775		)
Total net assets	$	5,194		$	2,495		$	1,689		$	3,037	$	12,415		$	6,849		$	2,495		$	1,466		$	3,037	$	13,847

	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 $282 million and $329 million at September 30, 2016 and December 31, 2015 and restricted cash of $161 million and $121 million at September 30, 2016 and December 31, 2015.  Exelon excludes cash of $398 million and $763 million at September 30, 2016 and December 31, 2015 and restricted cash of $197 million and $178 million at September 30, 2016 and December 31, 2015 and includes long term restricted cash of $22 million at September 30, 2016, which is reported in other deferred debits on the balance sheet.

(b) Includes $64 million and $52 million of cash received from outstanding repurchase agreements at September 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 $(10) million and $(8) million, which have a total notional amount of $1,073 million and $1,236 million at September 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 $(69) million and $(3) million at September 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 September 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 $85 million, $250 million and $150 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of September 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 September 30, 2016 and December 31, 2015:

	ComEd											PECO										BGE
As of September 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)	$	—	$	—		$	—		$	—		$	521	$	—		$	—	$	521		$	375	$	—		$	—	$	375
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	—		—			—			—			528		11			—		539			379		—			—		379
Liabilities
Deferred compensation obligation	—		(8		)	—			(8		)	—		(10		)	—		(10		)	—		(4		)	—		(4		)
Mark-to-market derivative liabilities(b)	—		—			(244		)	(244		)	—		—			—		—			—		—			—		—
Total liabilities	—		(8		)	(244		)	(252		)	—		(10		)	—		(10		)	—		(4		)	—		(4		)
Total net assets (liabilities)	$	—	$	(8	)	$	(244	)	$	(252	)	$	528	$	1		$	—	$	529		$	379	$	(4	)	$	—	$	375

	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(a)	$	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 $44 million and $38 million at September 30, 2016 and December 31, 2015 and restricted cash of $2 million and $2 million at September 30, 2016 and December 31, 2015.  PECO excludes cash of $27 million and $27 million at September 30, 2016 and December 31, 2015 and $1 million of restricted cash at September 30, 2016.  BGE excludes cash of $13 million and $6 million at September 30, 2016 and December 31, 2015 and restricted cash of $2 million and $2 million at September 30, 2016 and December 31, 2015 and includes long term restricted cash of $3 million at September 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 $19 million and $225 million, respectively, at September 30, 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

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 nine months ended September 30, 2016 and 2015:

																			Successor
	Generation															ComEd			PHI					Exelon
Three Months Ended September 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 June 30, 2016	$	715		$	25		$	609			$	37	$	1,386		$	(221	)	$	20	$	—		$	1,185
Total realized / unrealized gains (losses)
Included in net income	(4		)	—			95			(b)	1		92			—			1		—			93
Included in noncurrent payables to affiliates	6			—			—				—		6			—			—		(6		)	—
Included in payable for Zion Station decommissioning	—			(1		)	—				—		(1		)	—			—		—			(1		)
Included in regulatory assets	—			—			—				—		—			(23		)	—		6			(17		)
Change in collateral	—			—			31				—		31			—			—		—			31
Purchases, sales, issuances and settlements
Purchases	4			—			207			(d)	3		214			—			—		—			214
Sales	—			(5		)	(2		)		—		(7		)	—			—		—			(7		)
Issuances	—			—			—				—		—			—			—		—			—
Settlements	(28		)	—			—				—		(28		)	—			—		—			(28		)
Transfers into Level 3	—			—			(1		)		1		—			—			—		—			—
Transfers out of Level 3	—			—			(4		)		—		(4		)	—			—		—			(4		)
Balance at September 30, 2016	$	693		$	19		$	935			$	42	$	1,689		$	(244	)	$	21	$	—		$	1,466
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of September 30, 2016	$	3		$	—		$	285			$	—	$	288		$	—		$	—	$	—		$	288

																				Successor
	Generation																ComEd			PHI(c)						Exelon
Nine Months Ended September 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	2				—			(339		)	(b)	1		(336		)	—			2			—			(334		)
Included in noncurrent payables to affiliates	18				—			—				—		18			—			—			(18		)	—
Included in payable for Zion Station decommissioning	—				1			—				—		1			—			—			—			1
Included in regulatory assets/liabilities	—				—			—				—		—			3			—			18			21
Change in collateral	—				—			(51		)		—		(51		)	—			—			—			(51		)
Purchases, sales, issuances and settlements
Purchases	123				1			289			(d)	7		420			—			—			—			420
Sales	(1		)		(5		)	(5		)		—		(11		)	—			—			—			(11		)
Issuances	—				—			—				—		—			—			(1		)	—			(1		)
Settlements	(119		)		—			—				—		(119		)	—			—			—			(119		)
Transfers into Level 3	—				—			1				1		2			—			—			—			2
Transfers out of Level 3	—				—			(11		)		—		(11		)	—			—			—			(11		)
Balance as of September 30, 2016	$	693			$	19		$	935			$	42	$	1,689		$	(244	)	$	21		$	—		$	1,466
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of September 30, 2016	$	7			$	—		$	240			$	—	$	247		$	—		$	1		$	—		$	248

___________________

(a) Includes $25 million of decreases in fair value and realized losses due to settlements of $2 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended September 30, 2016. Includes $10 million of decreases in fair value and realized losses due to settlements of $13 million for the nine months ended September 30, 2016.

(b) Includes a reduction for the reclassification of $190 million and $579 million of realized gains due to the settlement of derivative contracts recorded in results of operations for the three and nine months ended September 30, 2016, respectively.

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

(d) Includes $168 million of fair value from contracts acquired as a result of portfolio acquisitions.

	Generation															ComEd					Exelon
Three Months Ended September 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 June 30, 2015	$	667		$	41		$	1,021			$	30	$	1,759		$	(223	)	$	—	$	1,536
Total realized / unrealized gains     (losses)													—
Included in net income	—			—			(48		)	(b)	—		(48		)	—			—		(48		)
Included in noncurrent payables to affiliates	—			—			—				—		—			—			—		—
Included in payable for Zion Station decommissioning	—			1			—				—		1			—			—		1
Included in regulatory assets	—			—			—				—		—			(20		)	—		(20		)
Change in collateral	—			—			90				—		90			—			—		90
Purchases, sales, issuances and settlements
Purchases	15			—			50				2		67			—			—		67
Sales	—			(13		)	(5		)		—		(18		)	—			—		(18		)
Settlements	(13		)	—			—				—		(13		)	—			—		(13		)
Transfers into Level 3	—			—			69				—		69			—			—		69
Transfers out of Level 3	—			—			(3		)		—		(3		)	—			—		(3		)
Balance as of September 30, 2015	$	669		$	29		$	1,174			$	32	$	1,904		$	(243	)	$	—	$	1,661
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of September 30, 2015	$	(1	)	$	—		$	181			$	—	$	180		$	—		$	—	$	180

	Generation															ComEd						Exelon
Nine Months Ended September 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			—			(87		)	(b)	—		(83		)	—			—			(83		)
Included in noncurrent payables to affiliates	17			—			—				—		17			—			(17		)	—
Included in payable for Zion Station decommissioning	—			2			—				—		2			—			—			2
Included in regulatory assets	—			—			—				—		—			(36		)	17			(19		)
Change in collateral	—			—			72				—		72			—			—			72
Purchases, sales, issuances and settlements
Purchases	122			1			107				29		259			—			—			259
Sales	(8		)	(24		)	(10		)		—		(42		)	—			—			(42		)
Settlements	(75		)	—			—				—		(75		)	—			—			(75		)
Transfers into Level 3	4			—			80				—		84			—			—			84
Transfers out of Level 3	—			—			(38		)		—		(38		)	—			—			(38		)
Balance as of September 30, 2015	$	669		$	29		$	1,174			$	32	$	1,904		$	(243	)	$	—		$	1,661
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of September 30, 2015	$	2		$	—		$	536			$	—	$	538		$	—		$	—		$	538

_________

(a) Includes $19 million of decreases in fair value and a reduction for realized gains due to settlements of $1 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended September 30, 2015. Includes $44 million of decreases in fair value and an increase for realized losses due to settlements of $8 million for the nine months ended September 30, 2015.

(b) Includes a reduction for the reclassification of $229 million and $623 million of realized gains due to the settlement of derivative contracts recorded in results of operations for the three and nine months ended September 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 September 30, 2016			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(c)	$	788		Discounted Cash Flow	Forward power price	$6	-	$130
					Forward gas price	$1.24	-	$9.53
				Option Model	Volatility percentage	5%	-	115%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(c)	$	(3	)	Discounted Cash Flow	Forward power price	$15	-	$68
Mark-to-market derivatives (Exelon and ComEd)	$	(244	)	Discounted Cash Flow	Forward heat rate(b)	8x	-	9x
					Marketability reserve	3%	-	8%
					Renewable factor	86%	-	121%

_________

(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 $150 million as of September 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

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	40	$	—	$	40	$	—	$	40
Long-term debt (including amounts due within one year)(a)	9,255		—		8,015		1,684		9,699
SNF obligation	1,023		—		856		—		856

	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

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	10	$	—	$	10	$	—	$	10
Long-term debt (including amounts due within one year)(a)	7,031		—		8,081		—		8,081
Long-term debt to financing trusts(b)	205		—		—		218		218

	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

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,879	$	—	$	3,266	$	—	$	3,266
Long-term debt to financing trusts	184		—		—		207		207

	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

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,662	$	—	$	2,966	$	—	$	2,966
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

	September 30, 2016
	Carrying Amount		Fair Value
Successor			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	517	$	—	$	517	$	—	$	517
Long-term debt (including amounts due within one year)	6,044		—		5,698		594		6,292

	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

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,350	$	—	$	3,000	$	2	$	3,002

	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

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	17	$	—	$	17	$	—	$	17
Long-term debt (including amounts due within one year)(a)	1,265		—		1,277		101		1,378

	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

	September 30, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,167	$	—	$	1,058	$	299	$	1,357

	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