Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2018

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, 2018 and December 31, 2017:

Exelon

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	1,654	$	—	$	1,654	$	—	$	1,654
Long-term debt (including amounts due within one year)(b)(c)	34,108		—		33,091		1,893		34,984
Long-term debt to financing trusts(d)	389		—		—		421		421
SNF obligation	1,151		—		922		—		922

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	929	$	—	$	929	$	—	$	929
Long-term debt (including amounts due within one year)(b)(c)	34,264		—		34,735		1,970		36,705
Long-term debt to financing trusts(d)	389		—		—		431		431
SNF obligation	1,147		—		936		—		936

Generation

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	166	$	—	$	166	$	—	$	166
Long-term debt (including amounts due within one year)(b)(c)	8,965		—		7,585		1,610		9,195
SNF obligation	1,151		—		922		—		922

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	2	$	—	$	2	$	—	$	2
Long-term debt (including amounts due within one year)(b)(c)	8,990		—		7,839		1,673		9,512
SNF obligation	1,147		—		936		—		936

ComEd

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	317	$	—	$	317	$	—	$	317
Long-term debt (including amounts due within one year)(b)(c)	7,694		—		8,061		—		8,061
Long-term debt to financing trusts(d)	205		—		—		222		222

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(b)(c)	$	7,601	$	—	$	8,418	$	—	$	8,418
Long-term debt to financing trusts(d)	205		—		—		227		227

PECO

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	220	$	—	$	220	$	—	$	220
Long-term debt (including amounts due within one year)(b)(c)	2,723		—		2,870		—		2,870
Long-term debt to financing trusts(d)	184		—		—		199		199

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(b)(c)	$	2,903	$	—	$	3,194	$	—	$	3,194
Long-term debt to financing trusts(d)	184		—		—		204		204

BGE

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	45	$	—	$	45	$	—	$	45
Long-term debt (including amounts due within one year)(b)(c)	$	2,578	$	—	$	2,689	$	—	$	2,689

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	77	$	—	$	77	$	—	$	77
Long-term debt (including amounts due within one year)(b)(c)	2,577		—		2,825		—		2,825

PHI

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	407	$	—	$	407	$	—	$	407
Long-term debt (including amounts due within one year)(b)(c)	5,849		—		5,423		283		5,706

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	350	$	—	$	350	$	—	$	350
Long-term debt (including amounts due within one year)(b)(c)	5,874		—		5,722		297		6,019

Pepco

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	60	$	—	$	60	$	—	$	60
Long-term debt (including amounts due within one year)(b)(c)	2,540		—		2,933		9		2,942

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	26	$	—	$	26	$	—	$	26
Long-term debt (including amounts due within one year)(b)(c)	2,540		—		3,114		9		3,123

DPL

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	211	$	—	$	211	$	—	$	211
Long-term debt (including amounts due within one year)(b)(c)	1,296		—		1,320		—		1,320

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	216	$	—	$	216	$	—	$	216
Long-term debt (including amounts due within one year)(b)(c)	1,300		—		1,393		—		1,393

ACE

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	136	$	—	$	136	$	—	$	136
Long-term debt (including amounts due within one year)(b)(c)	1,114		—		916		274		1,190

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	108	$	—	$	108	$	—	$	108
Long-term debt (including amounts due within one year)(b)(c)	1,121		—		949		288		1,237

_________

(a) Level 1 securities consist of dividends payable (included in other current liabilities). Level 2 securities consist of short term borrowings.

(b) Includes unamortized debt issuance costs which are not fair valued of $213 million, $57 million, $60 million, $20 million, $16 million, $6 million, $32 million, $11 million and $5 million for Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, respectively, as of March 31, 2018. Includes unamortized debt issuance costs which are not fair valued of $201 million, $60 million, $52 million, $17 million, $17 million, $6 million, $32 million, $11 million and $5 million for Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, respectively, as of December 31, 2017.

(c) Level 2 securities consist of fixed-rate taxable debt securities, fixed-rate tax-exempt debt, variable rate tax-exempt debt and variable rate non-recourse debt. Level 3 securities consist of fixed-rate private placement taxable debt securities, fixed rate nonrecourse debt and government-backed fixed rate non-recourse debt.

(d) Includes unamortized debt issuance costs which are not fair valued of $1 million and $1 million for Exelon and ComEd, respectively, as of March 31, 2018

Assets and liabilities measured and recorded at fair value on recurring basis

PHI, Pepco, DPL and ACE

The following tables present assets and liabilities measured and recorded at fair value on PHI's, Pepco's, DPL's and ACE's Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of March 31, 2018 and December 31, 2017:

	As of March 31, 2018										As of December 31, 2017
PHI	Level 1		Level 2			Level 3		Total			Level 1			Level 2			Level 3		Total
Assets
Cash equivalents(a)	$	67	$	—		$	—	$	67		$	83		$	—		$	—	$	83
Rabbi trust investments
Cash equivalents	72		—			—		72			72			—			—		72
Fixed income	—		10			—		10			—			12			—		12
Life insurance contracts	—		23			23		46			—			23			22		45
Rabbi trust investments subtotal(b)	72		33			23		128			72			35			22		129
Total assets	139		33			23		195			155			35			22		212
Liabilities
Deferred compensation obligation	—		(23		)	—		(23		)	—			(25		)	—		(25		)
Mark-to-market derivative liabilities(c)	—		—			—		—			(1		)	—			—		(1		)
Effect of netting and allocation of collateral	—		—			—		—			1			—			—		1
Mark-to-market derivative liabilities subtotal	—		—			—		—			—			—			—		—
Total liabilities	—		(23		)	—		(23		)	—			(25		)	—		(25		)
Total net assets	$	139	$	10		$	23	$	172		$	155		$	10		$	22	$	187

	Pepco										DPL										ACE
As of March 31, 2018	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		$	—	$	—		$	—	$	—		$	27	$	—	$	—	$	27
Rabbi trust investments
Cash equivalents	44		—			—		44			—		—			—		—			—		—		—		—
Fixed income	—		10			—		10			—		—			—		—			—		—		—		—
Life insurance contracts	—		23			23		46			—		—			—		—			—		—		—		—
Rabbi trust investments subtotal(b)	44		33			23		100			—		—			—		—			—		—		—		—
Total assets	77		33			23		133			—		—			—		—			27		—		—		27
Liabilities
Deferred compensation obligation	—		(4		)	—		(4		)	—		(1		)	—		(1		)	—		—		—		—
Total liabilities	—		(4		)	—		(4		)	—		(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	77	$	29		$	23	$	129		$	—	$	(1	)	$	—	$	(1	)	$	27	$	—	$	—	$	27

	Pepco										DPL											ACE
As of December 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)	$	36	$	—		$	—	$	36		$	—		$	—		$	—	$	—		$	29	$	—	$	—	$	29
Rabbi trust investments
Cash equivalents	44		—			—		44			—			—			—		—			—		—		—		—
Fixed income	—		12			—		12			—			—			—		—			—		—		—		—
Life insurance contracts	—		23			22		45			—			—			—		—			—		—		—		—
Rabbi trust investments subtotal(b)	44		35			22		101			—			—			—		—			—		—		—		—
Total assets	80		35			22		137			—			—			—		—			29		—		—		29
Liabilities
Deferred compensation obligation	—		(4		)	—		(4		)	—			(1		)	—		(1		)	—		—		—		—
Mark-to-market derivative liabilities(c)	—		—			—		—			(1		)	—			—		(1		)	—		—		—		—
Effect of netting and allocation of collateral	—		—			—		—			1			—			—		1			—		—		—		—
Mark-to-market derivative liabilities subtotal	—		—			—		—			—			—			—		—			—		—		—		—
Total liabilities	—		(4		)	—		(4		)	—			(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	80	$	31		$	22	$	133		$	—		$	(1	)	$	—	$	(1	)	$	29	$	—	$	—	$	29

_________

(a) PHI excludes cash of $36 million and $12 million at March 31, 2018 and December 31, 2017, respectively, and includes long-term restricted cash of $20 million and $23 million at March 31, 2018 and December 31, 2017, respectively, which is reported in Other deferred debits on the Consolidated Balance Sheets.  Pepco excludes cash of $15 million and $4 million at March 31, 2018 and December 31, 2017, respectively. DPL excludes cash of $7 million and $2 million at March 31, 2018 and December 31, 2017, respectively. ACE excludes cash of $10 million and $2 million at March 31, 2018 and December 31, 2017, respectively, and includes long-term restricted cash of $20 million and $23 million at March 31, 2018 and December 31, 2017, respectively, which is reported in Other deferred debits on the Consolidated Balance Sheets.

(b) The amount of unrealized gains/(losses) at PHI, Pepco, DPL and ACE totaled less than $1 million for the three months ended March 31, 2018 and March 31, 2017.

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

The following tables present assets and liabilities measured and recorded at fair value on Exelon's and Generation’s Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of March 31, 2018 and December 31, 2017:

	Generation					Exelon
As of March 31, 2018	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)	343	—	—	—	343	517	—	—	—	517
NDT fund investments
Cash equivalents(b)	222	105	—	—	327	222	105	—	—	327
Equities	4,002	983	—	2,119	7,104	4,002	983	—	2,119	7,104
Fixed income
Corporate debt	—	1,583	240	—	1,823	—	1,583	240	—	1,823
U.S. Treasury and agencies	1,869	88	—	—	1,957	1,869	88	—	—	1,957
Foreign governments	—	86	—	—	86	—	86	—	—	86
State and municipal debt	—	254	—	—	254	—	254	—	—	254
Other(c)	—	39	—	532	571	—	39	—	532	571
Fixed income subtotal	1,869	2,050	240	532	4,691	1,869	2,050	240	532	4,691
Middle market lending	—	—	369	127	496	—	—	369	127	496
Private equity	—	—	—	253	253	—	—	—	253	253
Real estate	—	—	—	488	488	—	—	—	488	488
NDT fund investments subtotal(d)	6,093	3,138	609	3,519	13,359	6,093	3,138	609	3,519	13,359
Pledged assets for Zion Station decommissioning
Cash equivalents	13	—	—	—	13	13	—	—	—	13

	Generation									Exelon
As of March 31, 2018	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	—		—		16		—	16		—		—		16		—	16
Pledged assets for Zion Station decommissioning subtotal(e)	13		—		16		—	29		13		—		16		—	29
Rabbi trust investments
Cash equivalents	5		—		—		—	5		77		—		—		—	77
Mutual funds	24		—		—		—	24		59		—		—		—	59
Fixed income	—		—		—		—	—		—		10		—		—	10
Life insurance contracts	—		22		—		—	22		—		71		23		—	94
Rabbi trust investments subtotal(f)	29		22		—		—	51		136		81		23		—	240
Commodity derivative assets
Economic hedges	286		2,923		1,892		—	5,101		286		2,923		1,892		—	5,101
Proprietary trading	—		151		58		—	209		—		151		58		—	209
Effect of netting and allocation of collateral(g) (h)	(335	)	(2,589	)	(895	)	—	(3,819	)	(335	)	(2,589	)	(895	)	—	(3,819	)
Commodity derivative assets subtotal	(49	)	485		1,055		—	1,491		(49	)	485		1,055		—	1,491
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—		12		—		—	12		—		12		—		—	12
Economic hedges	—		6		—		—	6		—		6		—		—	6
Effect of netting and allocation of collateral	(1	)	(3	)	—		—	(4	)	(1	)	(3	)	—		—	(4	)
Interest rate and foreign currency derivative assets subtotal	(1	)	15		—		—	14		(1	)	15		—		—	14
Other investments	—		—		36		—	36		—		—		36		—	36
Total assets	6,428		3,660		1,716		3,519	15,323		6,709		3,719		1,739		3,519	15,686
Liabilities
Commodity derivative liabilities
Economic hedges	(415	)	(3,317	)	(1,203	)	—	(4,935	)	(415	)	(3,317	)	(1,470	)	—	(5,202	)
Proprietary trading	—		(164	)	(15	)	—	(179	)	—		(164	)	(15	)	—	(179	)
Effect of netting and allocation of collateral(g) (h)	415		3,007		1,081		—	4,503		415		3,007		1,081		—	4,503
Commodity derivative liabilities subtotal	—		(474	)	(137	)	—	(611	)	—		(474	)	(404	)	—	(878	)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—		—		—		—	—		—		(4	)	—		—	(4	)

	Generation														Exelon
As of March 31, 2018	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Economic hedges	(1		)	(4		)	—			—		(5		)	(1		)	(4		)	—			—		(5		)
Effect of netting and allocation of collateral	1			3			—			—		4			1			3			—			—		4
Interest rate and foreign currency derivative liabilities subtotal	—			(1		)	—			—		(1		)	—			(5		)	—			—		(5		)
Deferred compensation obligation	—			(35		)	—			—		(35		)	—			(138		)	—			—		(138		)
Total liabilities	—			(510		)	(137		)	—		(647		)	—			(617		)	(404		)	—		(1,021		)
Total net assets	$	6,428		$	3,150		$	1,579		$	3,519	$	14,676		$	6,709		$	3,102		$	1,335		$	3,519	$	14,665

	Generation														Exelon
As of December 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)	$	168		$	—		$	—		$	—	$	168		$	656		$	—		$	—		$	—	$	656
NDT fund investments
Cash equivalents(b)	135			85			—			—		220			135			85			—			—		220
Equities	4,163			915			—			2,176		7,254			4,163			915			—			2,176		7,254
Fixed income
Corporate debt	—			1,614			251			—		1,865			—			1,614			251			—		1,865
U.S. Treasury and agencies	1,917			52			—			—		1,969			1,917			52			—			—		1,969
Foreign governments	—			82			—			—		82			—			82			—			—		82
State and municipal debt	—			263			—			—		263			—			263			—			—		263
Other(c)	—			47			—			510		557			—			47			—			510		557
Fixed income subtotal	1,917			2,058			251			510		4,736			1,917			2,058			251			510		4,736
Middle market lending	—			—			397			131		528			—			—			397			131		528
Private equity	—			—			—			222		222			—			—			—			222		222
Real estate	—			—			—			471		471			—			—			—			471		471
NDT fund investments subtotal(d)	6,215			3,058			648			3,510		13,431			6,215			3,058			648			3,510		13,431
Pledged assets for Zion Station decommissioning
Cash equivalents	2			—			—			—		2			2			—			—			—		2
Equities	—			1			—			—		1			—			1			—			—		1
Middle market lending	—			—			12			24		36			—			—			12			24		36
Pledged assets for Zion Station decommissioning subtotal(e)	2			1			12			24		39			2			1			12			24		39
Rabbi trust investments
Cash equivalents	5			—			—			—		5			77			—			—			—		77
Mutual funds	23			—			—			—		23			58			—			—			—		58
Fixed income	—			—			—			—		—			—			12			—			—		12
Life insurance contracts	—			22			—			—		22			—			71			22			—		93
Rabbi trust investments subtotal(f)	28			22			—			—		50			135			83			22			—		240
Commodity derivative assets
Economic hedges	557			2,378			1,290			—		4,225			557			2,378			1,290			—		4,225
Proprietary trading	2			31			35			—		68			2			31			35			—		68
Effect of netting and allocation of collateral(g) (h)	(585		)	(1,769		)	(635		)	—		(2,989		)	(585		)	(1,769		)	(635		)	—		(2,989		)
Commodity derivative assets subtotal	(26		)	640			690			—		1,304			(26		)	640			690			—		1,304
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—			3			—			—		3			—			6			—			—		6
Economic hedges	—			10			—			—		10			—			10			—			—		10

	Generation														Exelon
As of December 31, 2017	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Effect of netting and allocation of collateral	(2		)	(5		)	—			—		(7		)	(2		)	(5		)	—			—		(7		)
Interest rate and foreign currency derivative assets subtotal	(2		)	8			—			—		6			(2		)	11			—			—		9
Other investments	—			—			37			—		37			—			—			37			—		37
Total assets	6,385			3,729			1,387			3,534		15,035			6,980			3,793			1,409			3,534		15,716
Liabilities
Commodity derivative liabilities
Economic hedges	(712		)	(2,226		)	(845		)	—		(3,783		)	(713		)	(2,226		)	(1,101		)	—		(4,040		)
Proprietary trading	(2		)	(42		)	(9		)	—		(53		)	(2		)	(42		)	(9		)	—		(53		)
Effect of netting and allocation of collateral(g) (h)	650			2,089			716			—		3,455			651			2,089			716			—		3,456
Commodity derivative liabilities subtotal	(64		)	(179		)	(138		)	—		(381		)	(64		)	(179		)	(394		)	—		(637		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			(2		)	—			—		(2		)	—			(2		)	—			—		(2		)
Economic hedges	(1		)	(8		)	—			—		(9		)	(1		)	(8		)	—			—		(9		)
Effect of netting and allocation of collateral	2			5			—			—		7			2			5			—			—		7
Interest rate and foreign currency derivative liabilities subtotal	1			(5		)	—			—		(4		)	1			(5		)	—			—		(4		)
Deferred compensation obligation	—			(38		)	—			—		(38		)	—			(145		)	—			—		(145		)
Total liabilities	(63		)	(222		)	(138		)	—		(423		)	(63		)	(329		)	(394		)	—		(786		)
Total net assets	$	6,322		$	3,507		$	1,249		$	3,534	$	14,612		$	6,917		$	3,464		$	1,015		$	3,534	$	14,930

_________

(a) Generation excludes cash of $371 million and $259 million at March 31, 2018 and December 31, 2017 and restricted cash of $23 million and $127 million at March 31, 2018 and December 31, 2017.  Exelon excludes cash of $531 million and $389 million at March 31, 2018 and December 31, 2017 and restricted cash of $51 million and $145 million at March 31, 2018 and December 31, 2017 and includes long-term restricted cash of $103 million and $85 million at March 31, 2018 and December 31, 2017, which is reported in Other deferred debits on the Consolidated Balance Sheets.

(b) Includes $53 million and $77 million of cash received from outstanding repurchase agreements at March 31, 2018 and December 31, 2017, respectively, and is offset by an obligation to repay upon settlement of the agreement as discussed in (d) below.

(c) Includes derivative instruments of $2 million and less than $1 million, which have a total notional amount of $949 million and $811 million at March 31, 2018 and December 31, 2017, 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 liabilities of $84 million and $82 million at March 31, 2018 and December 31, 2017, 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 $1 million at March 31, 2018. These items consist of receivables related to pending securities sales, interest and dividend receivables, and payables related to pending securities purchases.

(f) The amount of unrealized gains/(losses) at Generation totaled less than $1 million and $1 million for the three months ended March 31, 2018 and March 31, 2017, respectively. The amount of unrealized gains/(losses) at Exelon totaled $1 million and $2 million for the three months ended March 31, 2018 and March 31, 2017, respectively.

(g) Collateral posted/(received) from counterparties totaled $80 million, $418 million and $186 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of March 31, 2018. Collateral posted/(received) from counterparties, net of collateral paid to counterparties, totaled $65 million, $320 million and $81 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of December 31, 2017.

(h) Of the collateral posted/(received), $156 million represents variation margin on the exchanges as of March 31, 2018. Of the collateral posted/(received), $(117) million represents variation margin on the exchanges as of December 31, 2017.

Exelon and Generation hold investments without readily determinable fair values with carrying amounts of $68 million as of March 31, 2018. Changes were immaterial in fair value, cumulative adjustments and impairments for the three months ended March 31, 2018.

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, 2018 and December 31, 2017:

	ComEd											PECO										BGE
As of March 31, 2018	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)	$	93	$	—		$	—		$	93		$	6	$	—		$	—	$	6		$	—	$	—		$	—	$	—
Rabbi trust investments
Mutual funds	—		—			—			—			7		—			—		7			6		—			—		6
Life insurance contracts	—		—			—			—			—		10			—		10			—		—			—		—
Rabbi trust investments subtotal(b)	—		—			—			—			7		10			—		17			6		—			—		6
Total assets	93		—			—			93			13		10			—		23			6		—			—		6
Liabilities
Deferred compensation obligation	—		(8		)	—			(8		)	—		(11		)	—		(11		)	—		(4		)	—		(4		)
Mark-to-market derivative liabilities(c)	—		—			(267		)	(267		)	—		—			—		—			—		—			—		—
Total liabilities	—		(8		)	(267		)	(275		)	—		(11		)	—		(11		)	—		(4		)	—		(4		)
Total net assets (liabilities)	$	93	$	(8	)	$	(267	)	$	(182	)	$	13	$	(1	)	$	—	$	12		$	6	$	(4	)	$	—	$	2

	ComEd											PECO										BGE
As of December 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)	$	98	$	—		$	—		$	98		$	228	$	—		$	—	$	228		$	—	$	—		$	—	$	—
Rabbi trust investments
Mutual funds	—		—			—			—			7		—			—		7			6		—			—		6
Life insurance contracts	—		—			—			—			—		10			—		10			—		—			—		—
Rabbi trust investments subtotal(b)	—		—			—			—			7		10			—		17			6		—			—		6
Total assets	98		—			—			98			235		10			—		245			6		—			—		6
Liabilities
Deferred compensation obligation	—		(8		)	—			(8		)	—		(11		)	—		(11		)	—		(5		)	—		(5		)
Mark-to-market derivative liabilities(c)	—		—			(256		)	(256		)	—		—			—		—			—		—			—		—
Total liabilities	—		(8		)	(256		)	(264		)	—		(11		)	—		(11		)	—		(5		)	—		(5		)
Total net assets (liabilities)	$	98	$	(8	)	$	(256	)	$	(166	)	$	235	$	(1	)	$	—	$	234		$	6	$	(5	)	$	—	$	1

_________

(a) ComEd excludes cash of $69 million and $45 million at March 31, 2018 and December 31, 2017 and includes long-term restricted cash of $83 million and $62 million at March 31, 2018 and December 31, 2017, which is reported in Other deferred debits on the Consolidated Balance Sheets.  PECO excludes cash of $20 million and $47 million at March 31, 2018 and December 31, 2017.  BGE excludes cash of $22 million and $17 million at March 31, 2018 and December 31, 2017 and restricted cash of $2 million and $1 million at March 31, 2018 and December 31, 2017.

(b) The amount of unrealized gains/(losses) at ComEd, PECO and BGE totaled less than $1 million for the three months ended March 31, 2018 and March 31, 2017, respectively.

(c) The Level 3 balance consists of the current and noncurrent liability of $24 million and $243 million, respectively, at March 31, 2018, and $21 million and $235 million, respectively, at December 31, 2017, related to floating-to-fixed energy swap contracts with unaffiliated suppliers.

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

The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis during the three months ended March 31, 2018 and 2017:

	Generation															ComEd				PHI					Exelon
Three Months Ended March 31, 2018	NDT Fund Investments			Pledged Assets for Zion Station Decommissioning		Mark-to-Market Derivatives				Other Investments			Total Generation			Mark-to-Market Derivatives				Life Insurance Contracts(c)		Eliminated in Consolidation			Total
Balance as of December 31, 2017	$	648		$	12	$	552			$	37		$	1,249		$	(256	)		$	22	$	—		$	1,015
Total realized / unrealized gains (losses)
Included in net income	—			—		184			(a)	1			185			—				1		—			186
Included in noncurrent payables to affiliates	7			—		—				—			7			—				—		(7		)	—
Included in payable for Zion Station decommissioning	—			4		—				—			4			—				—		—			4
Included in regulatory assets/liabilities	—			—		—				—			—			(11		)	(b)	—		7			(4		)
Change in collateral	—			—		105				—			105			—				—		—			105
Purchases, sales, issuances and settlements
Purchases	2			—		88				—			90			—				—		—			90
Sales	—			—		(3		)		—			(3		)	—				—		—			(3		)
Settlements	(48		)	—		—				—			(48		)	—				—		—			(48		)
Transfers into Level 3	—			—		(8		)		—			(8		)	—				—		—			(8		)
Transfers out of Level 3	—			—		—				(2		)	(2		)	—				—		—			(2		)
Balance at March 31, 2018	$	609		$	16	$	918			$	36		$	1,579		$	(267	)		$	23	$	—		$	1,335
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, 2018	$	—		$	—	$	256			$	1		$	257		$	—			$	1	$	—		$	258

	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				Life Insurance Contracts(c)			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		)	(a)	1			(39		)	—				1			—			(38		)
Included in noncurrent payables to affiliates	9			—		—				—			9			—				—			(9		)	—
Included in regulatory assets/liabilities	—			—		—				—			—			(24		)	(b)	—			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 a reduction for the reclassification of $72 million and $102 million of realized gains due to the settlement of derivative contracts for the three months ended March 31, 2018 and March 31, 2017, respectively.

(b) Includes $17 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, 2018. 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.

(c) The amounts represented are life insurance contracts at Pepco.

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, 2018 and 2017:

	Generation							PHI		Exelon
	Operating Revenues		Purchased Power and Fuel			Other, net(a)		Operating and Maintenance		Operating Revenues		Purchased Power and Fuel			Operating and Maintenance		Other, net(a)
Total gains (losses) included in net income for the three months ended March 31, 2018	$	335	$	(151	)	$	1	$	1	$	335	$	(151	)	$	1	$	1
Change in the unrealized gains (losses) relating to assets and liabilities held for the three months ended March 31, 2018	309		(53		)	1		1		309		(53		)	1		1

	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

_________

(a) Other, net activity consists of realized and unrealized gains (losses) included in income for the NDT funds held by Generation, accrued interest on a convertible promissory note at 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, 2018			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(b)	$	689		Discounted Cash Flow	Forward power price	$1	-	$202
					Forward gas price	$1.12	-	$12.80
				Option Model	Volatility percentage	10%	-	227%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(b)	$	43		Discounted Cash Flow	Forward power price	$4	-	$202
Mark-to-market derivatives (Exelon and ComEd)	$	(267	)	Discounted Cash Flow	Forward heat rate(c)	9x	-	10x
					Marketability reserve	4%	-	8%
					Renewable factor	87%	-	122%

Type of trade	Fair Value at December 31, 2017			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(b)	$	445		Discounted Cash Flow	Forward power price	$3	-	$124
					Forward gas price	$1.27	-	$12.80
				Option Model	Volatility percentage	11%	-	139%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(b)	$	26		Discounted Cash Flow	Forward power price	$14	-	$94
Mark-to-market derivatives (Exelon and ComEd)	$	(256	)	Discounted Cash Flow	Forward heat rate(c)	9x	-	10x
					Marketability reserve	4%	-	8%
					Renewable factor	88%	-	120%

_________

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

(b) The fair values do not include cash collateral posted on level three positions of $186 million and $81 million as of March 31, 2018 and December 31, 2017, respectively.

(c) 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.

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, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	166	$	—	$	166	$	—	$	166
Long-term debt (including amounts due within one year)(b)(c)	8,965		—		7,585		1,610		9,195
SNF obligation	1,151		—		922		—		922

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	2	$	—	$	2	$	—	$	2
Long-term debt (including amounts due within one year)(b)(c)	8,990		—		7,839		1,673		9,512
SNF obligation	1,147		—		936		—		936

Commonwealth Edison Co [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

ComEd

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	317	$	—	$	317	$	—	$	317
Long-term debt (including amounts due within one year)(b)(c)	7,694		—		8,061		—		8,061
Long-term debt to financing trusts(d)	205		—		—		222		222

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(b)(c)	$	7,601	$	—	$	8,418	$	—	$	8,418
Long-term debt to financing trusts(d)	205		—		—		227		227

PECO Energy Co [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

PECO

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	220	$	—	$	220	$	—	$	220
Long-term debt (including amounts due within one year)(b)(c)	2,723		—		2,870		—		2,870
Long-term debt to financing trusts(d)	184		—		—		199		199

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(b)(c)	$	2,903	$	—	$	3,194	$	—	$	3,194
Long-term debt to financing trusts(d)	184		—		—		204		204

Baltimore Gas and Electric Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

BGE

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	45	$	—	$	45	$	—	$	45
Long-term debt (including amounts due within one year)(b)(c)	$	2,578	$	—	$	2,689	$	—	$	2,689

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	77	$	—	$	77	$	—	$	77
Long-term debt (including amounts due within one year)(b)(c)	2,577		—		2,825		—		2,825

PEPCO Holdings Inc [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

PHI

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	407	$	—	$	407	$	—	$	407
Long-term debt (including amounts due within one year)(b)(c)	5,849		—		5,423		283		5,706

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	350	$	—	$	350	$	—	$	350
Long-term debt (including amounts due within one year)(b)(c)	5,874		—		5,722		297		6,019

Potomac Electric Power Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

Pepco

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	60	$	—	$	60	$	—	$	60
Long-term debt (including amounts due within one year)(b)(c)	2,540		—		2,933		9		2,942

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	26	$	—	$	26	$	—	$	26
Long-term debt (including amounts due within one year)(b)(c)	2,540		—		3,114		9		3,123

Delmarva Power and Light Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

DPL

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	211	$	—	$	211	$	—	$	211
Long-term debt (including amounts due within one year)(b)(c)	1,296		—		1,320		—		1,320

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	216	$	—	$	216	$	—	$	216
Long-term debt (including amounts due within one year)(b)(c)	1,300		—		1,393		—		1,393

Atlantic City Electric Company [Member]

Fair Value Tables [Line Items]

Fair value of financial liabilities recorded at the carrying amount

ACE

	March 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	136	$	—	$	136	$	—	$	136
Long-term debt (including amounts due within one year)(b)(c)	1,114		—		916		274		1,190

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	108	$	—	$	108	$	—	$	108
Long-term debt (including amounts due within one year)(b)(c)	1,121		—		949		288		1,237