Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2017

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, and trust preferred securities (long-term debt to financing trusts or junior subordinated debentures) as of March 31, 2017 and December 31, 2016:

Exelon

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	2,048	$	—	$	2,048	$	—	$	2,048
Long-term debt (including amounts due within one year)(a)	34,689		1,135		32,562		1,962		35,659
Long-term debt to financing trusts(b)	641		—		—		677		677
SNF obligation	1,136		—		813		—		813

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	1,267	$	—	$	1,267	$	—	$	1,267
Long-term debt (including amounts due within one year)(a)	34,005		1,113		31,741		1,959		34,813
Long-term debt to financing trusts(b)	641		—		—		667		667
SNF obligation	1,024		—		732		—		732

Generation

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	717	$	—	$	717	$	—	$	717
Long-term debt (including amounts due within one year)(a)	9,979		—		8,200		1,671		9,871
SNF obligation	1,136		—		813		—		813

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	699	$	—	$	699	$	—	$	699
Long-term debt (including amounts due within one year)(a)	9,241		—		7,482		1,670		9,152
SNF obligation	1,024		—		732		—		732

ComEd

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	365	$	—	$	365	$	—	$	365
Long-term debt (including amounts due within one year)(a)	7,035		—		7,615		—		7,615
Long-term debt to financing trusts(b)	205		—		—		218		218

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	7,033	$	—	$	7,585	$	—	$	7,585
Long-term debt to financing trusts(b)	205		—		—		215		215

PECO

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,580	$	—	$	2,806	$	—	$	2,806
Long-term debt to financing trusts	184		—		—		193		193

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,580	$	—	$	2,794	$	—	$	2,794
Long-term debt to financing trusts	184		—		—		192		192

BGE

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	95	$	—	$	95	$	—	$	95
Long-term debt (including amounts due within one year)(a)	2,323		—		2,501		—		2,501
Long-term debt to financing trusts(b)	252		—		—		266		266

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	45	$	—	$	45	$	—	$	45
Long-term debt (including amounts due within one year)(a)	2,322		—		2,467		—		2,467
Long-term debt to financing trusts(b)	252		—		—		260		260

PHI (Successor)

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	167	$	—	$	167	$	—	$	167
Long-term debt (including amounts due within one year)(a)	5,860		—		5,510		291		5,801

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	522	$	—	$	522	$	—	$	522
Long-term debt (including amounts due within one year)(a)	5,898		—		5,520		289		5,809

Pepco

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	167	$	—	$	167	$	—	$	167
Long-term debt (including amounts due within one year)(a)	2,350		—		2,804		9		2,813

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	23	$	—	$	23	$	—	$	23
Long-term debt (including amounts due within one year)(a)	2,349		—		2,788		8		2,796

DPL

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,326	$	—	$	1,374	$	—	$	1,374

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,340	$	—	$	1,383	$	—	$	1,383

ACE

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,145	$	—	$	989	$	282	$	1,271

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,155	$	—	$	1,007	$	280	$	1,287

________

(a) Includes unamortized debt issuance costs which are not fair valued of $199 million, $67 million, $45 million, $15 million, $14 million, $2 million, $29 million, $11 million, and $5 million for Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, respectively, as of March 31, 2017. Includes unamortized debt issuance costs of $200 million, $64 million, $46 million, $15 million, $15 million, $2 million, $30 million, $11 million, and $6 million for Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, respectively, as of December 31, 2016.

(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 March 31, 2017 and December 31, 2016.

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 March 31, 2017 and December 31, 2016:

	Generation										Exelon
As of March 31, 2017	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)	$	135	$	—	$	—	$	—	$	135	$	342	$	—	$	—	$	—	$	342
NDT fund investments
Cash equivalents(b)	160		21		—		—		181		160		21		—		—		181
Equities	4,113		505		1		2,089		6,708		4,113		505		1		2,089		6,708
Fixed income
Corporate debt	—		1,749		255		—		2,004		—		1,749		255		—		2,004
U.S. Treasury and agencies	1,516		35		—		—		1,551		1,516		35		—		—		1,551
Foreign governments	—		57		—		—		57		—		57		—		—		57
State and municipal debt	—		241		—		—		241		—		241		—		—		241
Other(c)	—		52		—		484		536		—		52		—		484		536
Fixed income subtotal	1,516		2,134		255		484		4,389		1,516		2,134		255		484		4,389
Middle market lending	—		—		427		64		491		—		—		427		64		491
Private equity	—		—		—		158		158		—		—		—		158		158
Real estate	—		—		—		427		427		—		—		—		427		427
NDT fund investments subtotal(d)	5,789		2,660		683		3,222		12,354		5,789		2,660		683		3,222		12,354
Pledged assets for Zion Station decommissioning
Cash equivalents	21		—		—		—		21		21		—		—		—		21
Equities	—		1		—		—		1		—		1		—		—		1
Fixed income - U.S. Treasury and agencies	8		1		—		—		9		8		1		—		—		9

	Generation														Exelon
As of March 31, 2017	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Middle market lending	—			—			20			44		64			—			—			20			44		64
Pledged assets for Zion Station decommissioning subtotal(e)	29			2			20			44		95			29			2			20			44		95
Rabbi trust investments
Cash equivalents	7			—			—			—		7			80			—			—			—		80
Mutual funds	20			—			—			—		20			53			—			—			—		53
Fixed income	—			—			—			—		—			—			15			—			—		15
Life insurance contracts	—			20			—			—		20			—			66			20			—		86
Rabbi trust investments subtotal	27			20			—			—		47			133			81			20			—		234
Commodity derivative assets
Economic hedges	749			2,993			1,631			—		5,373			751			2,993			1,631			—		5,375
Proprietary trading	5			50			25			—		80			5			50			25			—		80
Effect of netting and allocation of collateral(f) (g)	(639		)	(2,575		)	(873		)	—		(4,087		)	(641		)	(2,575		)	(873		)	—		(4,089		)
Commodity derivative assets subtotal	115			468			783			—		1,366			115			468			783			—		1,366
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—			—			—			—		—			—			12			—			—		12
Economic hedges	—			22			—			—		22			—			22			—			—		22
Proprietary trading	3			1			—			—		4			3			1			—			—		4
Effect of netting and allocation of collateral	(4		)	(14		)	—			—		(18		)	(4		)	(14		)	—			—		(18		)
Interest rate and foreign currency derivative assets subtotal	(1		)	9			—			—		8			(1		)	21			—			—		20
Other investments	—			—			40			—		40			—			—			40			—		40
Total assets	6,094			3,159			1,526			3,266		14,045			6,407			3,232			1,546			3,266		14,451
Liabilities
Commodity derivative liabilities
Economic hedges	(787		)	(2,855		)	(1,167		)	—		(4,809		)	(787		)	(2,855		)	(1,449		)	—		(5,091		)
Proprietary trading	(6		)	(49		)	(22		)	—		(77		)	(6		)	(49		)	(22		)	—		(77		)
Effect of netting and allocation of collateral(f) (g)	714			2,846			971			—		4,531			714			2,846			971			—		4,531
Commodity derivative liabilities subtotal	(79		)	(58		)	(218		)	—		(355		)	(79		)	(58		)	(500		)	—		(637		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			(1		)	—			—		(1		)	—			(1		)	—			—		(1		)
Economic hedges	—			(25		)	—			—		(25		)	—			(25		)	—			—		(25		)
Proprietary trading	(3		)	—			—			—		(3		)	(3		)	—			—			—		(3		)
Effect of netting and allocation of collateral	4			14			—			—		18			4			14			—			—		18
Interest rate and foreign currency derivative liabilities subtotal	1			(12		)	—			—		(11		)	1			(12		)	—			—		(11		)
Deferred compensation obligation	—			(35		)	—			—		(35		)	—			(135		)	—			—		(135		)
Total liabilities	(78		)	(105		)	(218		)	—		(401		)	(78		)	(205		)	(500		)	—		(783		)
Total net assets	$	6,016		$	3,054		$	1,308		$	3,266	$	13,644		$	6,329		$	3,027		$	1,046		$	3,266	$	13,668

	Generation														Exelon
As of December 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(a)	$	39		$	—		$	—		$	—	$	39		$	373		$	—		$	—		$	—	$	373
NDT fund investments
Cash equivalents(b)	110			19			—			—		129			110			19			—			—		129
Equities	3,551			452			—			2,011		6,014			3,551			452			—			2,011		6,014
Fixed income
Corporate debt	—			1,554			250			—		1,804			—			1,554			250			—		1,804
U.S. Treasury and agencies	1,291			29			—			—		1,320			1,291			29			—			—		1,320
Foreign governments	—			37			—			—		37			—			37			—			—		37
State and municipal debt	—			264			—			—		264			—			264			—			—		264
Other(c)	—			59			—			493		552			—			59			—			493		552
Fixed income subtotal	1,291			1,943			250			493		3,977			1,291			1,943			250			493		3,977
Middle market lending	—			—			427			71		498			—			—			427			71		498
Private equity	—			—			—			148		148			—			—			—			148		148
Real estate	—			—			—			326		326			—			—			—			326		326
NDT fund investments subtotal(d)	4,952			2,414			677			3,049		11,092			4,952			2,414			677			3,049		11,092
Pledged assets for Zion Station decommissioning
Cash equivalents	11			—			—			—		11			11			—			—			—		11
Equities	—			2			—			—		2			—			2			—			—		2
Fixed Income - U.S. Treasury and agencies	16			1			—			—		17			16			1			—			—		17
Middle market lending	—			—			19			64		83			—			—			19			64		83
Pledged assets for Zion Station decommissioning subtotal(e)	27			3			19			64		113			27			3			19			64		113
Rabbi trust investments
Cash equivalents	2			—			—			—		2			74			—			—			—		74
Mutual funds	19			—			—			—		19			50			—			—			—		50
Fixed income	—			—			—			—		—			—			16			—			—		16
Life insurance contracts	—			18			—			—		18			—			64			20			—		84
Rabbi trust investments subtotal	21			18			—			—		39			124			80			20			—		224
Commodity derivative assets
Economic hedges	1,356			2,505			1,229			—		5,090			1,358			2,505			1,229			—		5,092
Proprietary trading	3			50			23			—		76			3			50			23			—		76
Effect of netting and allocation of collateral(f) (g)	(1,162		)	(2,142		)	(481		)	—		(3,785		)	(1,164		)	(2,142		)	(481		)	—		(3,787		)
Commodity derivative assets subtotal	197			413			771			—		1,381			197			413			771			—		1,381
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—			—			—			—		—			—			16			—			—		16
Economic hedges	—			28			—			—		28			—			28			—			—		28
Proprietary trading	3			2			—			—		5			3			2			—			—		5
Effect of netting and allocation of collateral	(2		)	(19		)	—			—		(21		)	(2		)	(19		)	—			—		(21		)
Interest rate and foreign currency derivative assets subtotal	1			11			—			—		12			1			27			—			—		28
Other investments	—			—			42			—		42			—			—			42			—		42

	Generation														Exelon
As of December 31, 2016	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Total assets	5,237			2,859			1,509			3,113		12,718			5,674			2,937			1,529			3,113		13,253
Liabilities
Commodity derivative liabilities
Economic hedges	(1,267		)	(2,378		)	(794		)	—		(4,439		)	(1,267		)	(2,378		)	(1,052		)	—		(4,697		)
Proprietary trading	(3		)	(50		)	(26		)	—		(79		)	(3		)	(50		)	(26		)	—		(79		)
Effect of netting and allocation of collateral(f) (g)	1,233			2,339			542			—		4,114			1,233			2,339			542			—		4,114
Commodity derivative liabilities subtotal	(37		)	(89		)	(278		)	—		(404		)	(37		)	(89		)	(536		)	—		(662		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			(10		)	—			—		(10		)	—			(10		)	—			—		(10		)
Economic hedges	—			(21		)	—			—		(21		)	—			(21		)	—			—		(21		)
Proprietary trading	(4		)	—			—			—		(4		)	(4		)	—			—			—		(4		)
Effect of netting and allocation of collateral	4			19			—			—		23			4			19			—			—		23
Interest rate and foreign currency derivative liabilities subtotal	—			(12		)	—			—		(12		)	—			(12		)	—			—		(12		)
Deferred compensation obligation	—			(34		)	—			—		(34		)	—			(136		)	—			—		(136		)
Total liabilities	(37		)	(135		)	(278		)	—		(450		)	(37		)	(237		)	(536		)	—		(810		)
Total net assets	$	5,200		$	2,724		$	1,231		$	3,113	$	12,268		$	5,637		$	2,700		$	993		$	3,113	$	12,443

________

(a) Generation excludes cash of $267 million and $252 million at March 31, 2017 and December 31, 2016 and restricted cash of $138 million and $157 million at March 31, 2017 and December 31, 2016.  Exelon excludes cash of $381 million and $360 million at March 31, 2017 and December 31, 2016 and restricted cash of $165 million and $180 million at March 31, 2017 and December 31, 2016 and includes long term restricted cash of $25 million at March 31, 2017 and December 31, 2016, which is reported in other deferred debits on the balance sheet.

(b) Includes less than $1 million and $29 million of cash received from outstanding repurchase agreements at March 31, 2017 and December 31, 2016, respectively, and is offset by an obligation to repay upon settlement of the agreement as discussed in (d) below.

(c) Includes derivative instruments of $(1) million and $(2) million, which have a total notional amount of $886 million and $933 million at March 31, 2017 and December 31, 2016, respectively. The notional principal amounts for these instruments provide one measure of the transaction volume outstanding as of the fiscal years ended and do not represent the amount of the company's exposure to credit or market loss.

(d) Excludes net assets (liabilities) of $8 million and $(31) million at March 31, 2017 and December 31, 2016, 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 at March 31, 2017 and December 31, 2016. These items consist of receivables related to pending securities sales, interest and dividend receivables, and payables related to pending securities purchases.

(f) Collateral posted/(received) from counterparties totaled $75 million, $271 million and $98 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of March 31, 2017. Collateral posted/(received) from counterparties, net of collateral paid to counterparties, totaled $71 million, $197 million and $61 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of December 31, 2016.

(g) Of the collateral posted/(received), $14 million represents variation margin on the exchanges as of March 31, 2017. Of the collateral posted/(received), $(158) million represents variation margin on the exchanges as of December 31, 2016.

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, 2017 and December 31, 2016:

	ComEd											PECO										BGE
As of March 31, 2017	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)	$	—	$	—		$	—		$	—		$	5	$	—		$	—	$	5		$	45	$	—		$	—	$	45
Rabbi trust investments
Mutual funds	—		—			—			—			7		—			—		7			5		—			—		5
Life insurance contracts	—		—			—			—			—		10			—		10			—		—			—		—
Rabbi trust investments subtotal	—		—			—			—			7		10			—		17			5		—			—		5
Total assets	—		—			—			—			12		10			—		22			50		—			—		50
Liabilities
Deferred compensation obligation	—		(8		)	—			(8		)	—		(11		)	—		(11		)	—		(4		)	—		(4		)
Mark-to-market derivative liabilities(b)	—		—			(282		)	(282		)	—		—			—		—			—		—			—		—
Total liabilities	—		(8		)	(282		)	(290		)	—		(11		)	—		(11		)	—		(4		)	—		(4		)
Total net assets (liabilities)	$	—	$	(8	)	$	(282	)	$	(290	)	$	12	$	(1	)	$	—	$	11		$	50	$	(4	)	$	—	$	46

	ComEd											PECO										BGE
As of December 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(a)	$	20	$	—		$	—		$	20		$	45	$	—		$	—	$	45		$	36	$	—		$	—	$	36
Rabbi trust investments
Mutual funds	—		—			—			—			7		—			—		7			4		—			—		4
Life insurance contracts	—		—			—			—			—		10			—		10			—		—			—		—
Rabbi trust investments subtotal	—		—			—			—			7		10			—		17			4		—			—		4
Total assets	20		—			—			20			52		10			—		62			40		—			—		40
Liabilities
Deferred compensation obligation	—		(8		)	—			(8		)	—		(11		)	—		(11		)	—		(4		)	—		(4		)
Mark-to-market derivative liabilities(b)	—		—			(258		)	(258		)	—		—			—		—			—		—			—		—
Total liabilities	—		(8		)	(258		)	(266		)	—		(11		)	—		(11		)	—		(4		)	—		(4		)
Total net assets (liabilities)	$	20	$	(8	)	$	(258	)	$	(246	)	$	52	$	(1	)	$	—	$	51		$	40	$	(4	)	$	—	$	36

_________

(a) ComEd excludes cash of $31 million and $36 million at March 31, 2017 and December 31, 2016 and restricted cash of $3 million and $2 million at March 31, 2017 and December 31, 2016.  PECO excludes cash of $27 million and $22 million at March 31, 2017 and December 31, 2016.  BGE excludes cash of $11 million and $13 million at March 31, 2017 and December 31, 2016 and includes long term restricted cash of $2 million at March 31, 2017 and December 31, 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 $263 million, respectively, at March 31, 2017, and $19 million and $239 million, respectively, at December 31, 2016, 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 March 31, 2017 and December 31, 2016:

	Successor										Successor
	As of March 31, 2017										As of December 31, 2016
PHI	Level 1		Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total
Assets
Cash equivalents(a)	$	154	$	—		$	—	$	154		$	217		$	—		$	—	$	217
Mark-to-market derivative assets(b)	—		—			—		—			2			—			—		2
Effect of netting and allocation of collateral	—		—			—		—			(2		)	—			—		(2		)
Mark-to-market derivative assets subtotal	—		—			—		—			—			—			—		—
Rabbi trust investments
Cash equivalents	74		—			—		74			73			—			—		73
Fixed income	—		15			—		15			—			16			—		16
Life insurance contracts	—		23			20		43			—			22			20		42
Rabbi trust investments subtotal	74		38			20		132			73			38			20		131
Total assets	228		38			20		286			290			38			20		348
Liabilities
Deferred compensation obligation	—		(25		)	—		(25		)	—			(28		)	—		(28		)
Total liabilities	—		(25		)	—		(25		)	—			(28		)	—		(28		)
Total net assets	$	228	$	13		$	20	$	261		$	290		$	10		$	20	$	320

	Pepco										DPL										ACE
As of March 31, 2017	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)	$	33	$	—		$	—	$	33		$	39	$	—		$	—	$	39		$	80	$	—	$	—	$	80
Rabbi trust investments
Cash equivalents	43		—			—		43			1		—			—		1			—		—		—		—
Fixed income	—		15			—		15			—		—			—		—			—		—		—		—
Life insurance contracts	—		23			20		43			—		—			—		—			—		—		—		—
Rabbi trust investments subtotal	43		38			20		101			1		—			—		1			—		—		—		—
Total assets	76		38			20		134			40		—			—		40			80		—		—		80
Liabilities
Deferred compensation obligation	—		(4		)	—		(4		)	—		(1		)	—		(1		)	—		—		—		—
Total liabilities	—		(4		)	—		(4		)	—		(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	76	$	34		$	20	$	130		$	40	$	(1	)	$	—	$	39		$	80	$	—	$	—	$	80

	Pepco										DPL											ACE
As of December 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(a)	$	33	$	—		$	—	$	33		$	42		$	—		$	—	$	42		$	130	$	—	$	—	$	130
Mark-to-market derivative assets(b)	—		—			—		—			2			—			—		2			—		—		—		—
Effect of netting and allocation of collateral	—		—			—		—			(2		)	—			—		(2		)	—		—		—		—
Mark-to-market derivative assets subtotal	—		—			—		—			—			—			—		—			—		—		—		—
Rabbi trust investments
Cash equivalents	43		—			—		43			—			—			—		—			—		—		—		—
Fixed income	—		16			—		16			—			—			—		—			—		—		—		—
Life insurance contracts	—		22			19		41			—			—			—		—			—		—		—		—
Rabbi trust investments subtotal	43		38			19		100			—			—			—		—			—		—		—		—
Total assets	76		38			19		133			42			—			—		42			130		—		—		130
Liabilities
Deferred compensation obligation	—		(5		)	—		(5		)	—			(1		)	—		(1		)	—		—		—		—
Total liabilities	—		(5		)	—		(5		)	—			(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	76	$	33		$	19	$	128		$	42		$	(1	)	$	—	$	41		$	130	$	—	$	—	$	130

_______

(a) PHI excludes cash of $19 million and $19 million at March 31, 2017 and December 31, 2016 and includes long term restricted cash of $23 million and $23 million at March 31, 2017 and December 31, 2016 which is reported in other deferred debits on the balance sheet.  Pepco excludes cash of $8 million and $9 million at March 31, 2017 and December 31, 2016. DPL excludes cash of $5 million and $4 million at March 31, 2017 and December 31, 2016. ACE excludes cash of $4 million and $3 million at March 31, 2017 and December 31, 2016 and includes long term restricted cash of $23 million and $23 million at March 31, 2017 and December 31, 2016 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.

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, 2017 and 2016:

																			Successor
	Generation															ComEd			PHI						Exelon
Three Months Ended March 31, 2017	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, 2016	$	677		$	19	$	493			$	42		$	1,231		$	(258	)	$	20		$	—		$	993
Total realized / unrealized gains (losses)
Included in net income	3			—		(43		)	(b)	1			(39		)	—			1			—			(38		)
Included in noncurrent payables to affiliates	9			—		—				—			9			—			—			(9		)	—
Included in regulatory assets/liabilities	—			—		—				—			—			(24		)	—			9			(15		)
Change in collateral	—			—		38				—			38			—			—			—			38
Purchases, sales, issuances and settlements
Purchases	17			1		69				2			89			—			—			—			89
Sales	—			—		(2		)		—			(2		)	—			—			—			(2		)
Issuances	—			—		—				—			—			—			(1		)	—			(1		)
Settlements	(23		)	—		—				—			(23		)	—			—			—			(23		)
Transfers into Level 3	—			—		(1		)		—			(1		)	—			—			—			(1		)
Transfers out of Level 3	—			—		11				(5		)	6			—			—			—			6
Balance as of March 31, 2017	$	683		$	20	$	565			$	40		$	1,308		$	(282	)	$	20		$	—		$	1,046
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of March 31, 2017	$	2		$	—	$	59			$	—		$	61		$	—		$	1		$	—		$	62

___________________

(a) Includes $30 million of decreases in fair value and an increase for realized losses due to settlements of $6 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended March 31, 2017.

(b) Includes a reduction for the reclassification of $102 million of realized gains due to the settlement of derivative contracts for the three months ended March 31, 2017.

																		Successor
	Generation														ComEd			PHI(c)					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(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			—		(6		)	(b)	—		(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	—			—		—				—		—			(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 (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of March 31, 2016	$	1		$	—	$	219			$	—	$	220		$	—		$	—	$	—		$	220

_________

(a) Includes $25 million of decreases in fair value and an increase for 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.

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

(c) 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 for the three months ended March 31, 2017 and 2016.

	Predecessor
	January 1, 2016 to March 23, 2016
PHI	Preferred Stock			Life Insurance Contracts
Beginning Balance	$	18		$	19
Total realized / unrealized gains (losses)
Included in net income	(18		)	1
Ending Balance	$	—		$	20
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities for the period	$	—		$	1

	Life Insurance Contracts
	Three Months Ended March 31,
Pepco	2017			2016
Beginning Balance	$	20		$	19
Total realized / unrealized gains (losses)
Included in net income	1			1
Purchases, sales, issuances and settlements
Issuances	(1		)	—
Ending Balance	$	20		$	20
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities for the period	$	1		$	1

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

The following tables present the income statement classification of the total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis during the three months ended March 31, 2017 and 2016:

					Successor
	Generation				PHI	Exelon
	Operating Revenues	Purchased Power and Fuel		Other, net(a)	Other, net(a)	Operating Revenues	Purchased Power and Fuel		Other, net(a)
Total gains (losses) included in net income for the three months ended March 31, 2017	88	(131	)	3	1	88	(131	)	4
Change in the unrealized gains (losses) relating to assets and liabilities held for the three months ended March 31, 2017	140	(81	)	2	1	140	(81	)	3

	Generation				Exelon
	Operating Revenues	Purchased Power and Fuel		Other, net(a)	Operating Revenues	Purchased Power and Fuel		Other, net(a)
Total gains (losses) included in net income for the three months ended March 31, 2016	49	(55	)	2	49	(55	)	2
Change in the unrealized gains (losses) relating to assets and liabilities held for the three months ended March 31, 2016	254	(35	)	1	254	(35	)	1

	Predecessor
	PHI			Pepco
	January 1, 2016 to March 23, 2016			Three Months Ended March 31, 2017		Three Months Ended March 31, 2016
	Other, net
Total gains (losses) included in net income	$	(17	)	$	1	$	1
Change in the unrealized gains (losses) relating to assets and liabilities held	1			1		1

_________

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

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 March 31, 2017			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(c)	$	464		Discounted Cash Flow	Forward power price	$8	-	$130
					Forward gas price	$1.92	-	$9.87
				Option Model	Volatility percentage	13%	-	112%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(c)	$	3		Discounted Cash Flow	Forward power price	$15	-	$67
Mark-to-market derivatives (Exelon and ComEd)	$	(282	)	Discounted Cash Flow	Forward heat rate(b)	8x	-	9x
					Marketability reserve	3%	-	8%
					Renewable factor	88%	-	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 $98 million as of March 31, 2017.

Type of trade	Fair Value at December 31, 2016			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(c)	$	435		Discounted Cash Flow	Forward power price	$11	-	$130
					Forward gas price	$1.72	-	$9.2
				Option Model	Volatility percentage	8%	-	173%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(c)	$	(3	)	Discounted Cash Flow	Forward power price	$19	-	$79
Mark-to-market derivatives (Exelon and ComEd)	$	(258	)	Discounted Cash Flow	Forward heat rate(b)	8x	-	9x
					Marketability reserve	3%	-	8%
					Renewable factor	89%	-	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 $61 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

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	717	$	—	$	717	$	—	$	717
Long-term debt (including amounts due within one year)(a)	9,979		—		8,200		1,671		9,871
SNF obligation	1,136		—		813		—		813

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	699	$	—	$	699	$	—	$	699
Long-term debt (including amounts due within one year)(a)	9,241		—		7,482		1,670		9,152
SNF obligation	1,024		—		732		—		732

Commonwealth Edison Co [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

ComEd

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	365	$	—	$	365	$	—	$	365
Long-term debt (including amounts due within one year)(a)	7,035		—		7,615		—		7,615
Long-term debt to financing trusts(b)	205		—		—		218		218

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	7,033	$	—	$	7,585	$	—	$	7,585
Long-term debt to financing trusts(b)	205		—		—		215		215

PECO Energy Co [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

PECO

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,580	$	—	$	2,806	$	—	$	2,806
Long-term debt to financing trusts	184		—		—		193		193

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	2,580	$	—	$	2,794	$	—	$	2,794
Long-term debt to financing trusts	184		—		—		192		192

Baltimore Gas and Electric Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

BGE

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	95	$	—	$	95	$	—	$	95
Long-term debt (including amounts due within one year)(a)	2,323		—		2,501		—		2,501
Long-term debt to financing trusts(b)	252		—		—		266		266

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	45	$	—	$	45	$	—	$	45
Long-term debt (including amounts due within one year)(a)	2,322		—		2,467		—		2,467
Long-term debt to financing trusts(b)	252		—		—		260		260

PEPCO Holdings Inc [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

PHI (Successor)

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	167	$	—	$	167	$	—	$	167
Long-term debt (including amounts due within one year)(a)	5,860		—		5,510		291		5,801

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	522	$	—	$	522	$	—	$	522
Long-term debt (including amounts due within one year)(a)	5,898		—		5,520		289		5,809

Potomac Electric Power Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

Pepco

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	167	$	—	$	167	$	—	$	167
Long-term debt (including amounts due within one year)(a)	2,350		—		2,804		9		2,813

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	23	$	—	$	23	$	—	$	23
Long-term debt (including amounts due within one year)(a)	2,349		—		2,788		8		2,796

Delmarva Power and Light Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

DPL

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,326	$	—	$	1,374	$	—	$	1,374

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,340	$	—	$	1,383	$	—	$	1,383

Atlantic City Electric Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

ACE

	March 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,145	$	—	$	989	$	282	$	1,271

	December 31, 2016
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,155	$	—	$	1,007	$	280	$	1,287