Fair Value of Financial Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2018 and December 31, 2017:

Exelon

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	1,252	$	—	$	1,252	$	—	$	1,252
Long-term debt (including amounts due within one year)(b)(c)	34,337		—		32,388		2,154		34,542
Long-term debt to financing trusts(d)	389		—		—		420		420
SNF obligation	1,157		—		921		—		921

	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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(b)(c)	$	8,886	$	—	$	7,461	$	1,532	$	8,993
SNF obligation	1,157		—		921		—		921

	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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	320	$	—	$	320	$	—	$	320
Long-term debt (including amounts due within one year)(b)(c)	7,695		—		7,865		—		7,865
Long-term debt to financing trusts(d)	205		—		—		219		219

	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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	50	$	—	$	50	$	—	$	50
Long-term debt (including amounts due within one year)(b)(c)	2,773		—		2,819		50		2,869
Long-term debt to financing trusts(d)	184		—		—		201		201

	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

	June 30, 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)	2,578		—		2,629		—		2,629

	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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	247	$	—	$	247	$	—	$	247
Long-term debt (including amounts due within one year)(b)(c)	6,116		—		5,300		572		5,872

	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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(b)(c)	$	2,631	$	—	$	2,863	$	107	$	2,970

	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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(b)(c)	$	1,494	$	—	$	1,295	$	196	$	1,491

	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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	247	$	—	$	247	$	—	$	247
Long-term debt (including amounts due within one year)(b)(c)	1,107		—		898		269		1,167

	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, $55 million, $59 million, $20 million, $16 million, $12 million, $35 million, $12 million and $4 million for Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, respectively, as of June 30, 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, government-backed fixed rate non-recourse debt and loan agreements.

(d) Includes unamortized debt issuance costs which are not fair valued of $1 million and $1 million for Exelon and ComEd, respectively, as of June 30, 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 June 30, 2018 and December 31, 2017:

	As of June 30, 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)	$	235	$	—		$	—	$	235		$	83		$	—		$	—	$	83
Rabbi trust investments
Cash equivalents	39		—			—		39			72			—			—		72
Mutual funds	15		—			—		15			—			—			—		—
Fixed income	—		18			—		18			—			12			—		12
Life insurance contracts	—		23			36		59			—			23			22		45
Rabbi trust investments subtotal(b)	54		41			36		131			72			35			22		129
Total assets	289		41			36		366			155			35			22		212
Liabilities
Deferred compensation obligation	—		(22		)	—		(22		)	—			(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	—		(22		)	—		(22		)	—			(25		)	—		(25		)
Total net assets	$	289	$	19		$	36	$	344		$	155		$	10		$	22	$	187

	Pepco										DPL										ACE
As of June 30, 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)	$	73	$	—		$	—	$	73		$	137	$	—		$	—	$	137		$	25	$	—	$	—	$	25
Rabbi trust investments
Cash equivalents	38		—			—		38			—		—			—		—			—		—		—		—
Fixed income	—		7			—		7			—		—			—		—			—		—		—		—
Life insurance contracts	—		23			36		59			—		—			—		—			—		—		—		—
Rabbi trust investments subtotal(b)	38		30			36		104			—		—			—		—			—		—		—		—
Total assets	111		30			36		177			137		—			—		137			25		—		—		25
Liabilities
Deferred compensation obligation	—		(4		)	—		(4		)	—		(1		)	—		(1		)	—		—		—		—
Total liabilities	—		(4		)	—		(4		)	—		(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	111	$	26		$	36	$	173		$	137	$	(1	)	$	—	$	136		$	25	$	—	$	—	$	25

	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 $18 million and $12 million at June 30, 2018 and December 31, 2017, respectively, and includes long-term restricted cash of $20 million and $23 million at June 30, 2018 and December 31, 2017, respectively, which is reported in Other deferred debits on the Consolidated Balance Sheets.  Pepco excludes cash of $7 million and $4 million at June 30, 2018 and December 31, 2017, respectively. DPL excludes cash of $4 million and $2 million at June 30, 2018 and December 31, 2017, respectively. ACE excludes cash of $6 million and $2 million at June 30, 2018 and December 31, 2017, respectively, and includes long-term restricted cash of $20 million and $23 million at June 30, 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 and Pepco totaled $1 million and less than $1 million for the three and six months ended June 30, 2018 and June 30, 2017, respectively. The amount of unrealized gains/(losses) at DPL and ACE totaled less than $1 million for the three and six months ended June 30, 2018 and June 30, 2017, respectively.

(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 June 30, 2018 and December 31, 2017:

	Generation										Exelon
As of June 30, 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)	$	301	$	—	$	—	$	—	$	301	$	660	$	—	$	—	$	—	$	660
NDT fund investments
Cash equivalents(b)	212		94		—		—		306		212		94		—		—		306
Equities	3,429		1,174		—		1,948		6,551		3,429		1,174		—		1,948		6,551
Fixed income
Corporate debt	—		1,593		231		—		1,824		—		1,593		231		—		1,824
U.S. Treasury and agencies	2,007		94		—		—		2,101		2,007		94		—		—		2,101
Foreign governments	—		61		—		—		61		—		61		—		—		61
State and municipal debt	—		236		—		—		236		—		236		—		—		236
Other(c)	—		33		—		908		941		—		33		—		908		941
Fixed income subtotal	2,007		2,017		231		908		5,163		2,007		2,017		231		908		5,163
Middle market lending	—		—		354		216		570		—		—		354		216		570
Private equity	—		—		—		270		270		—		—		—		270		270
Real estate	—		—		—		506		506		—		—		—		506		506
NDT fund investments subtotal(d)	5,648		3,285		585		3,848		13,366		5,648		3,285		585		3,848		13,366
Pledged assets for Zion Station decommissioning
Cash equivalents	3		—		—		—		3		3		—		—		—		3
Middle market lending	—		—		18		—		18		—		—		18		—		18
Pledged assets for Zion Station decommissioning subtotal(e)	3		—		18		—		21		3		—		18		—		21

	Generation														Exelon
As of June 30, 2018	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Rabbi trust investments
Cash equivalents	5			—			—			—		5			45			—			—			—		45
Mutual funds	24			—			—			—		24			73			—			—			—		73
Fixed income	—			—			—			—		—			—			18			—			—		18
Life insurance contracts	—			22			—			—		22			—			71			36			—		107
Rabbi trust investments subtotal(f)	29			22			—			—		51			118			89			36			—		243
Commodity derivative assets
Economic hedges	237			2,091			1,770			—		4,098			237			2,091			1,770			—		4,098
Proprietary trading	—			138			83			—		221			—			138			83			—		221
Effect of netting and allocation of collateral(g) (h)	(219		)	(1,912		)	(950		)	—		(3,081		)	(219		)	(1,912		)	(950		)	—		(3,081		)
Commodity derivative assets subtotal	18			317			903			—		1,238			18			317			903			—		1,238
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—			16			—			—		16			—			16			—			—		16
Economic hedges	—			6			—			—		6			—			6			—			—		6
Effect of netting and allocation of collateral	—			(4		)	—			—		(4		)	—			(4		)	—			—		(4		)
Interest rate and foreign currency derivative assets subtotal	—			18			—			—		18			—			18			—			—		18
Other investments	—			—			36			—		36			—			—			36			—		36
Total assets	5,999			3,642			1,542			3,848		15,031			6,447			3,709			1,578			3,848		15,582
Liabilities
Commodity derivative liabilities
Economic hedges	(329		)	(2,244		)	(1,234		)	—		(3,807		)	(329		)	(2,244		)	(1,486		)	—		(4,059		)
Proprietary trading	—			(152		)	(20		)	—		(172		)	—			(152		)	(20		)	—		(172		)
Effect of netting and allocation of collateral(g) (h)	255			2,120			1,088			—		3,463			255			2,120			1,088			—		3,463
Commodity derivative liabilities subtotal	(74		)	(276		)	(166		)	—		(516		)	(74		)	(276		)	(418		)	—		(768		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			—			—			—		—			—			(8		)	—			—		(8		)
Economic hedges	—			(3		)	—			—		(3		)	—			(3		)	—			—		(3		)
Effect of netting and allocation of collateral	—			4			—			—		4			—			4			—			—		4
Interest rate and foreign currency derivative liabilities subtotal	—			1			—			—		1			—			(7		)	—			—		(7		)
Deferred compensation obligation	—			(34		)	—			—		(34		)	—			(136		)	—			—		(136		)
Total liabilities	(74		)	(309		)	(166		)	—		(549		)	(74		)	(419		)	(418		)	—		(911		)
Total net assets	$	5,925		$	3,333		$	1,376		$	3,848	$	14,482		$	6,373		$	3,290		$	1,160		$	3,848	$	14,671

	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

	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
Interest rate and foreign currency derivative assets
Derivatives designated as hedging instruments	—			3			—			—		3			—			6			—			—		6
Economic hedges	—			10			—			—		10			—			10			—			—		10
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 $204 million and $259 million at June 30, 2018 and December 31, 2017 and restricted cash of $45 million and $127 million at June 30, 2018 and December 31, 2017.  Exelon excludes cash of $296 million and $389 million at June 30, 2018 and December 31, 2017 and restricted cash of $72 million and $145 million at June 30, 2018 and December 31, 2017 and includes long-term restricted cash of $128 million and $85 million at June 30, 2018 and December 31, 2017, which is reported in Other deferred debits on the Consolidated Balance Sheets.

(b) Includes $48 million and $77 million of cash received from outstanding repurchase agreements at June 30, 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 less than $1 million and less than $1 million, which have a total notional amount of $965 million and $811 million at June 30, 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 Exelon and Generation's exposure to credit or market loss.

(d) Excludes net liabilities of $103 million and $82 million at June 30, 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 less than $1 million at June 30, 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 less than $1 million for the three months ended June 30, 2018 and June 30, 2017, respectively. The amount of unrealized gains/(losses) at Generation totaled less than $1 million and $1 million for the six months ended June 30, 2018 and June 30, 2017, respectively. The amount of unrealized gains/(losses) at Exelon totaled less than $1 million and $1 million for the three months ended June 30, 2018 and June 30, 2017, respectively. The amount of unrealized gains/(losses) at Exelon totaled $1 million and $3 million for the six months ended June 30, 2018 and June 30, 2017, respectively.

(g) Collateral posted/(received) from counterparties totaled $36 million, $208 million and $138 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of June 30, 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), $11 million represents variation margin on the exchanges as of June 30, 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 June 30, 2018. Changes were immaterial in fair value, cumulative adjustments and impairments for the three and six months ended June 30, 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 June 30, 2018 and December 31, 2017:

	ComEd											PECO										BGE
As of June 30, 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)	$	113	$	—		$	—		$	113		$	5	$	—		$	—	$	5		$	—	$	—		$	—	$	—
Rabbi trust investments
Cash equivalents	—		—			—			—			—		—			—		—			—		—			—		—
Mutual funds	—		—			—			—			7		—			—		7			6		—			—		6
Life insurance contracts	—		—			—			—			—		10			—		10			—		—			—		—
Rabbi trust investments subtotal(b)	—		—			—			—			7		10			—		17			6		—			—		6
Total assets	113		—			—			113			12		10			—		22			6		—			—		6
Liabilities
Deferred compensation obligation	—		(7		)	—			(7		)	—		(9		)	—		(9		)	—		(4		)	—		(4		)
Mark-to-market derivative liabilities(c)	—		—			(252		)	(252		)	—		—			—		—			—		—			—		—
Total liabilities	—		(7		)	(252		)	(259		)	—		(9		)	—		(9		)	—		(4		)	—		(4		)
Total net assets (liabilities)	$	113	$	(7	)	$	(252	)	$	(146	)	$	12	$	1		$	—	$	13		$	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 $30 million and $45 million at June 30, 2018 and December 31, 2017 and includes long-term restricted cash of $108 million and $62 million at June 30, 2018 and December 31, 2017, which is reported in Other deferred debits on the Consolidated Balance Sheets.  PECO excludes cash of $18 million and $47 million at June 30, 2018 and December 31, 2017.  BGE excludes cash of $7 million and $17 million at June 30, 2018 and December 31, 2017 and restricted cash of $1 million and $1 million at June 30, 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 and six months ended June 30, 2018 and June 30, 2017, respectively.

(c) The Level 3 balance consists of the current and noncurrent liability of $23 million and $229 million, respectively, at June 30, 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 and six months ended June 30, 2018 and 2017:

	Generation														ComEd				PHI						Exelon
Three Months Ended June 30, 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 March 31, 2018	$	609		$	16	$	918			$	36	$	1,579		$	(267	)		$	23		$	—		$	1,335
Total realized / unrealized gains (losses)
Included in net income	—			—		(113		)	(a)	—		(113		)	—				1			—			(112		)
Included in noncurrent payables to affiliates	(3		)	—		—				—		(3		)	—				—			3			—
Included in payable for Zion Station decommissioning	—			2		—				—		2			—				—			—			2
Included in regulatory assets/liabilities	—			—		—				—		—			15			(b)	—			(3		)	12
Change in collateral	—			—		(49		)		—		(49		)	—				—			—			(49		)
Purchases, sales, issuances and settlements
Purchases	17			—		13				—		30			—				—			—			30
Sales	—			—		(1		)		—		(1		)	—				—			—			(1		)
Settlements	(38		)	—		—				—		(38		)	—				12		(d)	—			(26		)
Transfers into Level 3	—			—		(15		)		—		(15		)	—				—			—			(15		)
Transfers out of Level 3	—			—		(16		)		—		(16		)	—				—			—			(16		)
Balance at June 30, 2018	$	585		$	18	$	737			$	36	$	1,376		$	(252	)		$	36		$	—		$	1,160
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of June 30, 2018	$	(4	)	$	—	$	7			$	—	$	3		$	—			$	—		$	—		$	3

	Generation															ComEd				PHI						Exelon
Six Months Ended June 30, 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			Mark-to-Market Derivatives
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	1			—		71			(a)	1			73			—				2			—			75
Included in noncurrent payables to affiliates	3			—		—				—			3			—				—			(3		)	—
Included in payable for Zion Station decommissioning	—			5		—				—			5			—				—			—			5
Included in regulatory assets	—			—		—				—			—			4			(b)	—			3			7
Change in collateral	—			—		57				—			57			—				—			—			57
Purchases, sales, issuances and settlements
Purchases	19			1		100				—			120			—				—			—			120
Sales	—			—		(4		)		—			(4		)	—				—			—			(4		)
Settlements	(86		)	—		—				—			(86		)	—				12		(d)	—			(74		)
Transfers into Level 3	—			—		(23		)		—			(23		)	—				—			—			(23		)
Transfers out of Level 3	—			—		(16		)		(2		)	(18		)	—				—			—			(18		)
Balance as of June 30, 2018	$	585		$	18	$	737			$	36		$	1,376		$	(252	)		$	36		$	—		$	1,160
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of June 30, 2018	$	(4	)	$	—	$	263			$	1		$	260		$	—			$	—		$	—		$	260

__________

(a) Includes a reduction for the reclassification of $120 million and $192 million of realized gains due to the settlement of derivative contracts for the three and six months ended June 30, 2018, respectively.

(b) Includes $11 million of increases in fair value and an increase for realized losses due to settlements of $4 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended June 30, 2018. Includes $6 million of decreases in fair value and an increase for realized losses due to settlements of $10 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the six months ended June 30, 2018.

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

(d) The settlement amount represents the full payment of a loan held against one of Pepco's life insurance policy contracts.

	Generation														ComEd				PHI					Exelon
Three Months Ended June 30, 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 March 31, 2017	$	683		$	20	$	565			$	40	$	1,308		$	(282	)		$	20	$	—		$	1,046
Total realized / unrealized gains (losses)
Included in net income	1			—		(3		)	(a)	—		(2		)	—				—		—			(2		)
Included in noncurrent payables to affiliates	4			—		—				—		4			—				—		(4		)	—
Included in payable for Zion Station decommissioning	—			1		—				—		1			—				—		—			1
Included in regulatory assets	—			—		—				—		—			26			(b)	—		4			30
Change in collateral	—			—		31				—		31			—				—		—			31
Purchases, sales, issuances and settlements
Purchases	19			—		21				1		41			—				—		—			41
Sales	—			—		(13		)		—		(13		)	—				—		—			(13		)
Settlements	(24		)	—		—				—		(24		)	—				—		—			(24		)
Transfers into Level 3	—			—		(8		)		—		(8		)	—				—		—			(8		)
Transfers out of Level 3	—			—		(4		)		—		(4		)	—				—		—			(4		)
Balance as of June 30, 2017	$	683		$	21	$	589			$	41	$	1,334		$	(256	)		$	20	$	—		$	1,098
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of June 30, 2017	$	—		$	—	$	43			$	—	$	43		$	—			$	—	$	—		$	43

	Generation															ComEd				PHI						Exelon
Six Months Ended June 30, 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	4			—		(46		)	(a)	1			(41		)	—				1			—			(40		)
Included in noncurrent payables to affiliates	13			—		—				—			13			—				—			(13		)	—
Included in payable for Zion Station decommissioning	—			1		—				—			1			—				—			—			1
Included in regulatory assets	—			—		—				—			—			2			(b)	—			13			15
Change in collateral	—			—		69				—			69			—				—			—			69
Purchases, sales, issuances and settlements
Purchases	36			1		90				3			130			—				—			—			130
Sales	—			—		(15		)		—			(15		)	—				—			—			(15		)
Issuances	—			—		—				—			—			—				(1		)	—			(1		)
Settlements	(47		)	—		—				—			(47		)	—				—			—			(47		)
Transfers into Level 3	—			—		(10		)		—			(10		)	—				—			—			(10		)
Transfers out of Level 3	—			—		8				(5		)	3			—				—			—			3
Balance as of June 30, 2017	$	683		$	21	$	589			$	41		$	1,334		$	(256	)		$	20		$	—		$	1,098
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of June 30, 2017	$	2		$	—	$	102			$	1		$	105		$	—			$	1		$	—		$	106

__________

(a) Includes a reduction for the reclassification of $46 million and $148 million of realized gains due to the settlement of derivative contracts for the three and six months ended June 30, 2017, respectively.

(b) Includes $25 million of increases in fair value and an increase for realized losses 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 June 30, 2017. Includes $5 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 six months ended June 30, 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 and six months ended June 30, 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 June 30, 2018	$	(191	)	$	78		$	—		$	1	$	(191	)	$	78		$	1	$	—
Total gains (losses) included in net income for the six months ended June 30, 2018	144			(73		)	2			2		144			(73		)	2		2
Change in the unrealized gains (losses) relating to assets and liabilities held for the three months ended June 30, 2018	(71		)	78			(4		)	—		(71		)	78			—		(4		)
Change in the unrealized gains (losses) relating to assets and liabilities held for the six months ended June 30, 2018	238			25			(3		)	—		238			25			—		(3		)

	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 June 30, 2017	$	(51	)	$	48		$	1	$	—	$	(51	)	$	48		$	1
Total gains (losses) included in net income for the six months ended June 30, 2017	37			(83		)	5		1		37			(83		)	6
Change in the unrealized gains (losses) relating to assets and liabilities held for the three months ended June 30, 2017	—			43			—		—		—			43			—
Change in the unrealized gains (losses) relating to assets and liabilities held for the six months ended June 30, 2017	140			(38		)	3		1		140			(38		)	4

__________

(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 June 30, 2018			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(b)	$	536		Discounted Cash Flow	Forward power price	$9	-	$141
					Forward gas price	$1.04	-	$11.19
				Option Model	Volatility percentage	9%	-	435%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(b)	$	63		Discounted Cash Flow	Forward power price	$9	-	$139
Mark-to-market derivatives (Exelon and ComEd)	$	(252	)	Discounted Cash Flow	Forward heat rate(c)	10x	-	11x
					Marketability reserve	4%	-	8%
					Renewable factor	88%	-	120%

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 $138 million and $81 million as of June 30, 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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(b)(c)	$	8,886	$	—	$	7,461	$	1,532	$	8,993
SNF obligation	1,157		—		921		—		921

	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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	320	$	—	$	320	$	—	$	320
Long-term debt (including amounts due within one year)(b)(c)	7,695		—		7,865		—		7,865
Long-term debt to financing trusts(d)	205		—		—		219		219

	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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	50	$	—	$	50	$	—	$	50
Long-term debt (including amounts due within one year)(b)(c)	2,773		—		2,819		50		2,869
Long-term debt to financing trusts(d)	184		—		—		201		201

	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

	June 30, 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)	2,578		—		2,629		—		2,629

	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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	247	$	—	$	247	$	—	$	247
Long-term debt (including amounts due within one year)(b)(c)	6,116		—		5,300		572		5,872

	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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(b)(c)	$	2,631	$	—	$	2,863	$	107	$	2,970

	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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(b)(c)	$	1,494	$	—	$	1,295	$	196	$	1,491

	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

	June 30, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities(a)	$	247	$	—	$	247	$	—	$	247
Long-term debt (including amounts due within one year)(b)(c)	1,107		—		898		269		1,167

	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