Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

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, 2019 and December 31, 2018:

Exelon

	March 31, 2019
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	1,254	$	—	$	1,254	$	—	$	1,254
Long-term debt (including amounts due within one year)(a)	35,468		—		35,066		2,188		37,254
Long-term debt to financing trusts(b)	390		—		—		411		411
SNF obligation	1,178		—		989		—		989

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	714	$	—	$	714	$	—	$	714
Long-term debt (including amounts due within one year)(a)	35,424		—		33,711		2,158		35,869
Long-term debt to financing trusts(b)	390		—		—		400		400
SNF obligation	1,171		—		949		—		949

Generation

	March 31, 2019
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	8,747	$	—	$	7,641	$	1,443	$	9,084
SNF obligation	1,178		—		989		—		989

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	8,793	$	—	$	7,467	$	1,443	$	8,910
SNF obligation	1,171		—		949		—		949

ComEd

	March 31, 2019
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	322	$	—	$	322	$	—	$	322
Long-term debt (including amounts due within one year)(a)	8,194		—		8,855		—		8,855
Long-term debt to financing trusts(b)	205		—		—		215		215

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	8,101	$	—	$	8,390	$	—	$	8,390
Long-term debt to financing trusts(b)	205		—		—		209		209

PECO

	March 31, 2019
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	3,084	$	—	$	3,295	$	50	$	3,345
Long-term debt to financing trusts(b)	184		—		—		196		196

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	3,084	$	—	$	3,157	$	50	$	3,207
Long-term debt to financing trusts(b)	184		—		—		191		191

BGE

	March 31, 2019
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	106	$	—	$	106	$	—	$	106
Long-term debt (including amounts due within one year)(a)	2,876		—		3,051		—		3,051

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	35	$	—	$	35	$	—	$	35
Long-term debt (including amounts due within one year)(a)	2,876		—		2,950		—		2,950

PHI

	March 31, 2019
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	326	$	—	$	326	$	—	$	326
Long-term debt (including amounts due within one year)(a)	6,244		—		5,608		695		6,303

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	179	$	—	$	179	$	—	$	179
Long-term debt (including amounts due within one year)(a)	6,259		—		5,436		665		6,101

Pepco

	March 31, 2019
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	105	$	—	$	105	$	—	$	105
Long-term debt (including amounts due within one year)(a)	2,720		—		3,000		208		3,208

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	40	$	—	$	40	$	—	$	40
Long-term debt (including amounts due within one year)(a)	2,719		—		2,901		196		3,097

DPL

	March 31, 2019
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	5	$	—	$	5	$	—	$	5
Long-term debt (including amounts due within one year)(a)	1,495		—		1,345		204		1,549

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Long-term debt (including amounts due within one year)(a)	$	1,494	$	—	$	1,303	$	193	$	1,496

ACE

	March 31, 2019
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	216	$	—	$	216	$	—	$	216
Long-term debt (including amounts due within one year)(a)	1,184		—		1,004		283		1,287

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
Short-term liabilities	$	139	$	—	$	139	$	—	$	139
Long-term debt (including amounts due within one year)(a)	1,188		—		987		275		1,262

_________

(a) Includes unamortized debt issuance costs which are not fair valued of $216 million, $49 million, $67 million, $22 million, $18 million, $14 million, $33 million, $12 million and $6 million for Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, respectively, as of March 31, 2019. Includes unamortized debt issuance costs which are not fair valued of $216 million, $51 million, $63 million, $23 million, $18 million, $14 million, $34 million, $12 million and $7 million for Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, respectively, as of December 31, 2018.

(b) 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, 2019. Includes unamortized debt issuance costs which are not fair valued of less than $1 million and $1 million for Exelon and ComEd, respectively, as of December 31, 2018.

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 in Exelon's and Generation’s Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of March 31, 2019 and December 31, 2018:

	Generation														Exelon
As of March 31, 2019	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)	$	370		$	—		$	—		$	—	$	370		$	817		$	—		$	—		$	—	$	817
NDT fund investments
Cash equivalents(b)	369			74			—			—		443			369			74			—			—		443
Equities	3,060			1,753			1			1,545		6,359			3,060			1,753			1			1,545		6,359
Fixed income
Corporate debt	—			1,545			236			1		1,782			—			1,545			236			1		1,782
U.S. Treasury and agencies	2,033			112			—			—		2,145			2,033			112			—			—		2,145
Foreign governments	—			43			—			—		43			—			43			—			—		43
State and municipal debt	—			110			—			—		110			—			110			—			—		110
Other(c)	—			26			—			935		961			—			26			—			935		961
Fixed income subtotal	2,033			1,836			236			936		5,041			2,033			1,836			236			936		5,041
Middle market lending	—			—			303			406		709			—			—			303			406		709
Private equity	—			—			—			352		352			—			—			—			352		352
Real estate	—			—			—			535		535			—			—			—			535		535
NDT fund investments subtotal(d)	5,462			3,663			540			3,774		13,439			5,462			3,663			540			3,774		13,439
Rabbi trust investments
Cash equivalents	4			—			—			—		4			47			—			—			—		47
Mutual funds	25			—			—			—		25			74			—			—			—		74
Fixed income	—			—			—			—		—			—			14			—			—		14
Life insurance contracts	—			23			—			—		23			—			71			39			—		110
Rabbi trust investments subtotal(e)	29			23			—			—		52			121			85			39			—		245
Commodity derivative assets
Economic hedges	273			2,164			1,442			—		3,879			273			2,164			1,442			—		3,879
Proprietary trading	—			74			104			—		178			—			74			104			—		178
Effect of netting and allocation of collateral(f)(g)	(294		)	(1,836		)	(820		)	—		(2,950		)	(294		)	(1,836		)	(820		)	—		(2,950		)
Commodity derivative assets subtotal	(21		)	402			726			—		1,107			(21		)	402			726			—		1,107
Interest rate and foreign currency derivative assets
Economic hedges	—			4			—			—		4			—			4			—			—		4
Effect of netting and allocation of collateral	—			(5		)	—			—		(5		)	—			(5		)	—			—		(5		)
Interest rate and foreign currency derivative assets subtotal	—			(1		)	—			—		(1		)	—			(1		)	—			—		(1		)
Other investments	—			—			42			—		42			—			—			42			—		42
Total assets	5,840			4,087			1,308			3,774		15,009			6,379			4,149			1,347			3,774		15,649

	Generation														Exelon
As of March 31, 2019	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Liabilities
Commodity derivative liabilities
Economic hedges	(350		)	(2,339		)	(1,164		)	—		(3,853		)	(350		)	(2,339		)	(1,404		)	—		(4,093		)
Proprietary trading	—			(79		)	(40		)	—		(119		)	—			(79		)	(40		)	—		(119		)
Effect of netting and allocation of collateral(f)(g)	346			2,119			977			—		3,442			346			2,119			977			—		3,442
	(4		)	(299		)	(227		)	—		(530		)	(4		)	(299		)	(467		)	—		(770		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			—			—			—		—			—			(2		)	—			—		(2		)
Economic hedges	—			(12		)	—			—		(12		)	—			(12		)	—			—		(12		)
Effect of netting and allocation of collateral	—			5			—			—		5			—			5			—			—		5
Interest rate and foreign currency derivative liabilities subtotal	—			(7		)	—			—		(7		)	—			(9		)	—			—		(9		)
Deferred compensation obligation	—			(36		)	—			—		(36		)	—			(140		)	—			—		(140		)
Total liabilities	(4		)	(342		)	(227		)	—		(573		)	(4		)	(448		)	(467		)	—		(919		)
Total net assets	$	5,836		$	3,745		$	1,081		$	3,774	$	14,436		$	6,375		$	3,701		$	880		$	3,774	$	14,730

	Generation														Exelon
As of December 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)	$	581		$	—		$	—		$	—	$	581		$	1,243		$	—		$	—		$	—	$	1,243
NDT fund investments
Cash equivalents(b)	252			86			—			—		338			252			86			—			—		338
Equities	2,918			1,591			—			1,381		5,890			2,918			1,591			—			1,381		5,890
Fixed income
Corporate debt	—			1,593			230			—		1,823			—			1,593			230			—		1,823
U.S. Treasury and agencies	2,081			99			—			—		2,180			2,081			99			—			—		2,180
Foreign governments	—			50			—			—		50			—			50			—			—		50
State and municipal debt	—			149			—			—		149			—			149			—			—		149
Other(c)	—			30			—			846		876			—			30			—			846		876
Fixed income subtotal	2,081			1,921			230			846		5,078			2,081			1,921			230			846		5,078
Middle market lending	—			—			313			367		680			—			—			313			367		680
Private equity	—			—			—			329		329			—			—			—			329		329
Real estate	—			—			—			510		510			—			—			—			510		510
NDT fund investments subtotal(d)	5,251			3,598			543			3,433		12,825			5,251			3,598			543			3,433		12,825
Rabbi trust investments
Cash equivalents	5			—			—			—		5			48			—			—			—		48
Mutual funds	24			—			—			—		24			72			—			—			—		72
Fixed income	—			—			—			—		—			—			15			—			—		15
Life insurance contracts	—			22			—			—		22			—			70			38			—		108
Rabbi trust investments subtotal(e)	29			22			—			—		51			120			85			38			—		243
Commodity derivative assets
Economic hedges	541			2,760			1,470			—		4,771			541			2,760			1,470			—		4,771
Proprietary trading	—			69			77			—		146			—			69			77			—		146
Effect of netting and allocation of collateral(f)(g)	(582		)	(2,357		)	(732		)	—		(3,671		)	(582		)	(2,357		)	(732		)	—		(3,671		)
Commodity derivative assets subtotal	(41		)	472			815			—		1,246			(41		)	472			815			—		1,246
Interest rate and foreign currency derivative assets
Economic hedges	—			13			—			—		13			—			13			—			—		13
Effect of netting and allocation of collateral	—			(3		)	—			—		(3		)	—			(3		)	—			—		(3		)
Interest rate and foreign currency derivative assets subtotal	—			10			—			—		10			—			10			—			—		10
Other investments	—			—			42			—		42			—			—			42			—		42
Total assets	5,820			4,102			1,400			3,433		14,755			6,573			4,165			1,438			3,433		15,609

	Generation														Exelon
As of December 31, 2018	Level 1			Level 2			Level 3			Not subject to leveling		Total			Level 1			Level 2			Level 3			Not subject to leveling		Total
Liabilities
Commodity derivative liabilities
Economic hedges	(642		)	(2,963		)	(1,027		)	—		(4,632		)	(642		)	(2,963		)	(1,276		)	—		(4,881		)
Proprietary trading	—			(73		)	(21		)	—		(94		)	—			(73		)	(21		)	—		(94		)
Effect of netting and allocation of collateral(f)(g)	639			2,581			808			—		4,028			639			2,581			808			—		4,028
Commodity derivative liabilities subtotal	(3		)	(455		)	(240		)	—		(698		)	(3		)	(455		)	(489		)	—		(947		)
Interest rate and foreign currency derivative liabilities
Derivatives designated as hedging instruments	—			—			—			—		—			—			(4		)	—			—		(4		)
Economic hedges	—			(6		)	—			—		(6		)	—			(6		)	—			—		(6		)
Effect of netting and allocation of collateral	—			3			—			—		3			—			3			—			—		3
Interest rate and foreign currency derivative liabilities subtotal	—			(3		)	—			—		(3		)	—			(7		)	—			—		(7		)
Deferred compensation obligation	—			(35		)	—			—		(35		)	—			(137		)	—			—		(137		)
Total liabilities	(3		)	(493		)	(240		)	—		(736		)	(3		)	(599		)	(489		)	—		(1,091		)
Total net assets	$	5,817		$	3,609		$	1,160		$	3,433	$	14,019		$	6,570		$	3,566		$	949		$	3,433	$	14,518

_________

(a) Generation excludes cash of $270 million and $283 million at March 31, 2019 and December 31, 2018 and restricted cash of $36 million and $39 million at March 31, 2019 and December 31, 2018.  Exelon excludes cash of $426 million and $458 million at March 31, 2019 and December 31, 2018 and restricted cash of $71 million and $80 million at March 31, 2019 and December 31, 2018 and includes long-term restricted cash of $211 million and $185 million at March 31, 2019 and December 31, 2018, which is reported in Other deferred debits in the Consolidated Balance Sheets.

(b) Includes $43 million and $50 million of cash received from outstanding repurchase agreements at March 31, 2019 and December 31, 2018, respectively, and is offset by an obligation to repay upon settlement of the agreement as discussed in (d) below.

(c) Includes derivative instruments of $7 million and $44 million, which have a total notional amount of $1,223 million and $1,432 million at March 31, 2019 and December 31, 2018, 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 $94 million and $130 million at March 31, 2019 and December 31, 2018, 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) The amount of unrealized gains/(losses) at Generation totaled less than $1 million for the three months ended March 31, 2019 and March 31, 2018, respectively. The amount of unrealized gains/(losses) at Exelon totaled $1 million for the three months ended March 31, 2019 and March 31, 2018, respectively.

(f) Collateral posted/(received) from counterparties totaled $52 million, $283 million and $157 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of March 31, 2019. Collateral posted/(received) from counterparties, net of collateral paid to counterparties, totaled $57 million, $224 million and $76 million allocated to Level 1, Level 2 and Level 3 mark-to-market derivatives, respectively, as of December 31, 2018.

(g) Of the collateral posted/(received), $(33) million and $(94) million represents variation margin on the exchanges as of March 31, 2019 and December 31, 2018, respectively.

Exelon and Generation hold investments without readily determinable fair values with carrying amounts of $71 million as of March 31, 2019. Changes were immaterial in fair value, cumulative adjustments and impairments for the three months ended March 31, 2019.

ComEd, PECO and BGE

The following tables present assets and liabilities measured and recorded at fair value in 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, 2019 and December 31, 2018:

	ComEd											PECO										BGE
As of March 31, 2019	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)	$	194	$	—		$	—		$	194		$	16	$	—		$	—	$	16		$	3	$	—		$	—	$	3
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	194		—			—			194			23		10			—		33			9		—			—		9
Liabilities
Deferred compensation obligation	—		(7		)	—			(7		)	—		(10		)	—		(10		)	—		(5		)	—		(5		)
Mark-to-market derivative liabilities(c)	—		—			(240		)	(240		)	—		—			—		—			—		—			—		—
Total liabilities	—		(7		)	(240		)	(247		)	—		(10		)	—		(10		)	—		(5		)	—		(5		)
Total net assets (liabilities)	$	194	$	(7	)	$	(240	)	$	(53	)	$	23	$	—		$	—	$	23		$	9	$	(5	)	$	—	$	4

	ComEd											PECO										BGE
As of December 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)	$	209	$	—		$	—		$	209		$	111	$	—		$	—	$	111		$	4	$	—		$	—	$	4
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	209		—			—			209			118		10			—		128			10		—			—		10
Liabilities
Deferred compensation obligation	—		(6		)	—			(6		)	—		(10		)	—		(10		)	—		(5		)	—		(5		)
Mark-to-market derivative liabilities(c)	—		—			(249		)	(249		)	—		—			—		—			—		—			—		—
Total liabilities	—		(6		)	(249		)	(255		)	—		(10		)	—		(10		)	—		(5		)	—		(5		)
Total net assets (liabilities)	$	209	$	(6	)	$	(249	)	$	(46	)	$	118	$	—		$	—	$	118		$	10	$	(5	)	$	—	$	5

_________

(a) ComEd excludes cash of $69 million and $93 million at March 31, 2019 and December 31, 2018 and restricted cash of $15 million and $28 million at March 31, 2019 and December 31, 2018 and includes long-term restricted cash of $193 million and $166 million at March 31, 2019 and December 31, 2018, which is reported in Other deferred debits in the Consolidated Balance Sheets.  PECO excludes cash of $31 million and $24 million at March 31, 2019 and December 31, 2018.  BGE excludes cash of $12 million and $7 million at March 31, 2019 and December 31, 2018 and restricted cash of $1 million and $2 million at March 31, 2019 and December 31, 2018.

(b) The amount of unrealized gains/(losses) at ComEd, PECO and BGE totaled less than $1 million for the three months ended March 31, 2019 and March 31, 2018.

(c) The Level 3 balance consists of the current and noncurrent liability of $27 million and $213 million, respectively, at March 31, 2019, and $26 million and $223 million, respectively, at December 31, 2018, 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 in 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, 2019 and December 31, 2018:

	As of March 31, 2019										As of December 31, 2018
PHI	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
Assets
Cash equivalents(a)	$	63	$	—		$	—	$	63		$	147	$	—		$	—	$	147
Rabbi trust investments
Cash equivalents	42		—			—		42			42		—			—		42
Mutual funds	14		—			—		14			13		—			—		13
Fixed income	—		14			—		14			—		15			—		15
Life insurance contracts	—		22			39		61			—		22			38		60
Rabbi trust investments subtotal(b)	56		36			39		131			55		37			38		130
Total assets	119		36			39		194			202		37			38		277
Liabilities
Deferred compensation obligation	—		(20		)	—		(20		)	—		(21		)	—		(21		)
Total liabilities	—		(20		)	—		(20		)	—		(21		)	—		(21		)
Total net assets	$	119	$	16		$	39	$	174		$	202	$	16		$	38	$	256

	Pepco										DPL										ACE
As of March 31, 2019	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)	$	35	$	—		$	—	$	35		$	2	$	—		$	—	$	2		$	21	$	—	$	—	$	21
Rabbi trust investments
Cash equivalents	42		—			—		42			—		—			—		—			—		—		—		—
Fixed income	—		4			—		4			—		—			—		—			—		—		—		—
Life insurance contracts	—		22			38		60			—		—			—		—			—		—		—		—
Rabbi trust investments subtotal(b)	42		26			38		106			—		—			—		—			—		—		—		—
Total assets	77		26			38		141			2		—			—		2			21		—		—		21
Liabilities
Deferred compensation obligation	—		(3		)	—		(3		)	—		(1		)	—		(1		)	—		—		—		—
Total liabilities	—		(3		)	—		(3		)	—		(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	77	$	23		$	38	$	138		$	2	$	(1	)	$	—	$	1		$	21	$	—	$	—	$	21

	Pepco										DPL										ACE
As of December 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)	$	38	$	—		$	—	$	38		$	16	$	—		$	—	$	16		$	23	$	—	$	—	$	23
Rabbi trust investments
Cash equivalents	41		—			—		41			—		—			—		—			—		—		—		—
Fixed income	—		5			—		5			—		—			—		—			—		—		—		—
Life insurance contracts	—		22			37		59			—		—			—		—			—		—		—		—
Rabbi trust investments subtotal(b)	41		27			37		105			—		—			—		—			—		—		—		—
Total assets	79		27			37		143			16		—			—		16			23		—		—		23
Liabilities
Deferred compensation obligation	—		(3		)	—		(3		)	—		(1		)	—		(1		)	—		—		—		—
Total liabilities	—		(3		)	—		(3		)	—		(1		)	—		(1		)	—		—		—		—
Total net assets (liabilities)	$	79	$	24		$	37	$	140		$	16	$	(1	)	$	—	$	15		$	23	$	—	$	—	$	23

_________

(a) PHI excludes cash of $29 million and $39 million at March 31, 2019 and December 31, 2018, respectively, and includes long-term restricted cash of $19 million at both March 31, 2019 and December 31, 2018, which is reported in Other deferred debits in the Consolidated Balance Sheets.  Pepco excludes cash of $11 million and $15 million at March 31, 2019 and December 31, 2018, respectively. DPL excludes cash of $6 million and $8 million at March 31, 2019 and December 31, 2018, respectively. ACE excludes cash of $7 million at both March 31, 2019 and December 31, 2018, and includes long-term restricted cash of $19 million at both March 31, 2019 and December 31, 2018, which is reported in Other deferred debits in the Consolidated Balance Sheets.

(b) The amount of unrealized gains/(losses) at PHI totaled less than $1 million for both the three months ended March 31, 2019 and 2018. The amount of unrealized gains/(losses) at Pepco totaled less than $1 million for both the three months ended March 31, 2019 and 2018

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, 2019 and 2018:

	Generation												ComEd				PHI					Exelon
Three Months Ended March 31, 2019	NDT Fund Investments			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, 2018	$	543		$	575			$	42	$	1,160		$	(249	)		$	38	$	—		$	949
Total realized / unrealized gains (losses)
Included in net income	2			(231		)	(a)	—		(229		)	—				1		—			(228		)
Included in noncurrent payables to affiliates	11			—				—		11			—				—		(11		)	—
Included in regulatory assets/liabilities	—			—				—		—			9			(b)	—		11			20
Change in collateral	—			81				—		81			—				—		—			81
Purchases, sales, issuances and settlements
Purchases	1			57				—		58			—				—		—			58
Sales	—			—				—		—			—				—		—			—
Settlements	(17		)	—				—		(17		)	—				—		—			(17		)
Transfers into Level 3	—			—			(d)	—		—			—				—		—			—
Transfers out of Level 3	—			17			(d)	—		17			—				—		—			17
Balance at March 31, 2019	$	540		$	499			$	42	$	1,081		$	(240	)		$	39	$	—		$	880
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, 2019	$	2		$	(151	)		$	—	$	(149	)	$	—			$	1	$	—		$	(148	)

	Generation													ComEd				PHI					Exelon
Three Months Ended March 31, 2018	NDT Fund Investments			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		$	552			$	37		$	1,237		$	(256	)		$	22	$	—		$	1,003
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 regulatory assets	—			—				—			—			(11		)	(b)	—		7			(4		)
Change in collateral	—			105				—			105			—				—		—			105
Purchases, sales, issuances and settlements
Purchases	2			88				—			90			—				—		—			90
Sales	—			(3		)		—			(3		)	—				—		—			(3		)
Issuances	—			—				—			—			—				—		—			—
Settlements	(48		)	—				—			(48		)	—				—		—			(48		)
Transfers into Level 3	—			(8		)	(d)	—			(8		)	—				—		—			(8		)
Transfers out of Level 3	—			—			(d)	(2		)	(2		)	—				—		—			(2		)
Balance as of March 31, 2018	$	609		$	918			$	36		$	1,563		$	(267	)		$	23	$	—		$	1,319
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

__________

(a) Includes a reduction for the reclassification of $80 million and $72 million of realized gains due to the settlement of derivative contracts for the three months ended March 31, 2019 and 2018, respectively.

(b) Includes $14 million of decreases in fair value and an increase for realized losses due to settlements of $5 million recorded in purchased power expense associated with floating-to-fixed energy swap contracts with unaffiliated suppliers for the three months ended March 31, 2019. Includes $17 million of increases 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.

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

(d) Transfers into and out of Level 3 generally occur when the contract tenor becomes less and more observable respectively, primarily due to changes in market liquidity or assumptions for certain commodity contracts.

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, 2019 and 2018:

	Generation								PHI		Exelon
	Operating Revenues			Purchased Power and Fuel			Other, net		Operating and Maintenance		Operating Revenues			Purchased Power and Fuel			Operating and Maintenance		Other, net
Total gains (losses) included in net income for the three months ended March 31, 2019	$	(128	)	$	(103	)	$	2	$	1	$	(128	)	$	(103	)	$	1	$	2
Change in the unrealized gains (losses) relating to assets and liabilities held for the three months ended March 31, 2019	(91		)	(60		)	2		1		(91		)	(60		)	1		2

	Generation							PHI		Exelon
	Operating Revenues		Purchased Power and Fuel			Other, net		Operating and Maintenance		Operating Revenues		Purchased Power and Fuel			Operating and Maintenance		Other, net
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

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

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

Type of trade	Fair Value at March 31, 2019			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(b)	$	278		Discounted Cash Flow	Forward power price	$9	-	$164
					Forward gas price	$1.76	-	$11.63
				Option Model	Volatility percentage	10%	-	334%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(b)	$	64		Discounted Cash Flow	Forward power price	$9	-	$162
Mark-to-market derivatives (Exelon and ComEd)	$	(240	)	Discounted Cash Flow	Forward heat rate(c)	10x	-	11x
					Marketability reserve	4%	-	8%
					Renewable factor	85%	-	120%

Type of trade	Fair Value at December 31, 2018			Valuation Technique	Unobservable Input	Range
Mark-to-market derivatives — Economic Hedges (Exelon and Generation)(a)(b)	$	443		Discounted Cash Flow	Forward power price	$12	-	$174
					Forward gas price	$0.78	-	$12.38
				Option Model	Volatility percentage	10%	-	277%
Mark-to-market derivatives — Proprietary trading (Exelon and Generation)(a)(b)	$	56		Discounted Cash Flow	Forward power price	$14	-	$174
Mark-to-market derivatives (Exelon and ComEd)	$	(249	)	Discounted Cash Flow	Forward heat rate(c)	10x	-	11x
					Marketability reserve	4%	-	8%
					Renewable factor	86%	-	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 $157 million and $76 million as of March 31, 2019 and December 31, 2018, 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.