2.2.0.7 true DEBT 116 - Disclosure - DEBT true false false false 1 USD true false false false PEPCO HOLDINGS INC dei_LegalEntityAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_ParentCompanyMember dei_LegalEntityAxis explicitMember iso4217_USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 iso4217_USD_per_shares Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares 0 shares Standard http://www.xbrl.org/2003/instance shares 0 $ 1 PEPCO HOLDINGS INC 0 na true na na No definition available. false true false false false false false false false false false http://www.pepcoholdings.com/taxonomy/role/notestofinancialstatementsdebtdisclosuretextblock false 1 false false false false 0 0 false false false false 1 USD true false false false PEPCO HOLDINGS INC dei_LegalEntityAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_ParentCompanyMember dei_LegalEntityAxis explicitMember iso4217_USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 iso4217_USD_per_shares Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares 0 shares Standard http://www.xbrl.org/2003/instance shares 0 $ na No definition available. No authoritative reference available. false 2 DEBT 2 us-gaap_DebtDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false false 1 false false false false 0 0 <div> (9) DEBT Credit Facilities PHI’s principal credit source is an unsecured $1.5 billion syndicated credit facility, which can be used by PHI and its utility subsidiaries to borrow funds, obtain letters of credit and support the issuance of commercial paper. This facility is in effect until May 2012 and consists of commitments from 16 lenders, no one of which is responsible for more than 8.5% of the total $1.5 billion commitment. PHI’s credit limit under the facility is $875 million. The credit limit of each of Pepco, DPL and ACE is the lesser of $500 million and the maximum amount of debt the company is permitted to have outstanding by its regulatory authorities, except that the aggregate amount of credit used by Pepco, DPL and ACE at any given time collectively may not exceed $625 million. PHI also has a $50 million bi-lateral credit agreement with The Bank of Nova Scotia that expires on November 2, 2010, which only can be used for the purpose of obtaining letters of credit. In addition, PHI had a $400 million unsecured credit facility that terminated on October 15, 2010. As of September 30, 2010, no letters of credit were outstanding under these agreements. In April 2010, PHI entered into a $450 million unsecured bridge facility with Morgan Stanley Bank, N.A. and Credit Suisse AG. PHI used the proceeds of the loans drawn under the facility to repay (i) $200 million in aggregate principal amount of its 4.0% Senior Notes due May 15, 2010 and (ii) $250 million in aggregate principal amount of its Floating Rate Notes due June 1, 2010. On July 1, 2010, PHI repaid all amounts outstanding under this facility with a portion of the proceeds from the sale of the Conectiv Energy wholesale power generation business, thereby terminating the facility. Under the terms of each of these facilities, the sale of the Conectiv Energy wholesale power generation business required the consent of the lenders. In each case, the sale was approved without any requirement that the terms of the facility be modified by reason of the sale.   At September 30, 2010 and December 31, 2009, the amount of cash plus borrowing capacity under the credit facilities available to meet the future liquidity needs of PHI and its utility subsidiaries on a consolidated basis each totaled $1.4 billion. PHI’s utility subsidiaries had combined cash and borrowing capacity under the $1.5 billion credit facility of $494 million and $582 million at September 30, 2010 and December 31, 2009, respectively. These amounts include (i) the $400 million unsecured credit facility available only to PHI, which expired on October 15, 2010, and was replaced by two PHI bi-lateral 364-day unsecured credit agreements in the aggregate amount of $200 million and (ii) the $50 million PHI bi-lateral credit agreement, which will expire in November 2010, each of which is more fully described below. Credit Facilities Activity Subsequent to September 30, 2010 On October 15, 2010, a $400 million unsecured credit facility maintained by PHI expired. To replace this facility, PHI, on October 27, 2010, entered into two bi-lateral 364 day unsecured credit agreements totaling $200 million. Under each of the credit agreements, PHI has access to revolving and floating rate loans over the terms of the agreements. Neither agreement provides for the issuance of letters of credit. The interest rate payable on funds borrowed is at PHI’s election, based on either (a) the prevailing Eurodollar rate or (b) the highest of (i) the prevailing prime rate, (ii) the federal funds effective rate plus 0.5% or (iii) the one-month Eurodollar rate plus 1.0%, plus a margin of 1.0%. In order to obtain loans under either of the agreements, PHI must be in compliance with the same covenants and conditions that it is required to satisfy for utilization of its existing $1.5 billion credit facility. The absence of a material adverse change in PHI’s business, property, and results of operations or financial condition is not a condition to the availability of credit under the agreements. Neither agreement includes any rating triggers. PHI does not plan to renew its $50 million bi-lateral credit agreement with The Bank of Nova Scotia that expires on November 2, 2010. The two expiring credit facilities were established to provide additional liquidity and collateral support for Pepco Energy Services’ retail energy supply business and for Conectiv Energy. Based on the progress toward winding down the retail energy supply business and disposing of the Conectiv Energy segment, the level of liquidity and collateral needed to support these businesses has decreased. As a result, PHI has been able to reduce the total amount of its credit facility needs by $250 million. Other Financing Activities During the three months ended September 30, 2010, the following financing activities occurred: In July 2010, ACE Funding made principal payments of $5.5 million on Series 2002-1 Bonds, Class A-2, and $2.1 million on Series 2003-1 Bonds, Class A-2. On July 1, 2010, DPL purchased $31 million of unsecured tax-exempt bonds issued for the benefit of DPL by The Delaware Economic Development Authority that in accordance with the terms of the bonds were subject to mandatory tender. DPL intends to remarket these bonds during the fourth quarter of 2010. On August 30, 2010, ACE redeemed $1 million of 7.25% secured medium-term notes at maturity. Debt Tender Offers On July 2, 2010, PHI purchased, pursuant to a cash tender offer, $640 million in principal amount of its 6.45% Senior Notes due 2012 (6.45% Notes) for an aggregate purchase price of $713 million, plus accrued and unpaid interest. The tender offer for the 6.45% Notes also constituted a solicitation of the consent of the holders of the 6.45% Notes to an amendment of the terms of the 6.45% Notes to reduce the notice period for the redemption from not less than 30 days and not more than 60 days to three business days. This amendment, which required the consent of the holders of a majority of the outstanding 6.45% Notes, was approved upon the repurchase of the 6.45% Notes pursuant to the tender offer. On July 2, 2010, PHI terminated the tender offer and issued a notice of redemption for the balance of the 6.45% Notes. On July 8, 2010, PHI redeemed the remaining $110 million of outstanding 6.45% Notes at an aggregate redemption price of $122 million, plus accrued and unpaid interest. On July 20, 2010, PHI purchased, pursuant to a cash tender offer, (i) $129 million of its 6.125% Senior Notes due 2017 (6.125% Notes), at an aggregate purchase price of $145 million, plus accrued and unpaid interest, and (ii) $65 million of 7.45% Senior Notes due 2032 (7.45% Notes), at an aggregate purchase price of $78 million, plus accrued and unpaid interest. The purchases of the 6.45% Notes, 6.125% Notes and the 7.45% Notes were funded using the proceeds realized by PHI from the sale of Conectiv Energy’s wholesale power generation business. As a result of the aforementioned purchases of debt, PHI recorded a pre-tax loss on extinguishment of debt of $120 million in the third quarter of 2010. Treasury Rate Locks In June 2002, PHI entered into several treasury rate lock transactions to hedge changes in interest rates related to the anticipated issuance in August 2002 of several series of senior notes, including the 6.45% Notes and the 7.45% Notes. Upon issuance of the fixed rate debt in August 2002, the treasury rate locks were terminated at a loss that has been deferred in Accumulated Other Comprehensive Loss and is being recognized in income over the life of the debt issued as interest payments on the debt are made. In connection with the purchases of the 6.45% Notes and the 7.45% Notes, PHI accelerated the recognition of $15 million of pre-tax losses attributable to the 6.45% Notes and 7.45% Notes by reclassifying these losses from Accumulated Other Comprehensive Loss to the income statement in the third quarter of 2010. These losses have also been reported as a pre-tax loss on extinguishment of debt. Financing Activities Subsequent to September 30, 2010 On October 1, 2010, PHI issued $250 million of 2.70% Senior Notes due October 1, 2015 (2.70% Notes). On October 13, 2010, PHI:   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="2%" align="left">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> purchased, pursuant to a cash tender offer, an additional $40 million in principal amount of the 6.125% Notes for an aggregate purchase price of $48 million, plus accrued and unpaid interest. PHI used proceeds from the issuance of the 2.70% Notes to pay the purchase price of the 6.125% Notes; and </td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"> </td> <td valign="top" width="2%" align="left">•</td> <td valign="top" width="1%"> </td> <td valign="top" align="left"> issued notices of redemption of (i) $200 million in principal amount of its 6.0% Senior Notes due 2019 (6.0% Notes) and (ii) $10 million in principal amount of its 5.9% Senior Notes due 2016 (5.9% Notes). PHI will use proceeds from the issuance of the 2.70% Notes to pay the redemption price. The redemption date is November 15, 2010. The redemption price will be determined three business days prior to the redemption date. </td> </tr> </table> PHI expects to record after-tax losses on extinguishment of debt of approximately $33 million in the fourth quarter of 2010 associated with the October 13, 2010 tender offer for the 6.125% Notes and the redemptions of the 6.0% Notes and the 5.9% Notes. Collateral Requirements At September 30, 2010 and December 31, 2009, the aggregate amount of cash, plus borrowing capacity under the credit facilities available to meet the combined future liquidity needs of Pepco Energy Services and Conectiv Energy totaled $912 million and $820 million, respectively. On October 15, 2010, a $400 million unsecured credit facility maintained by PHI expired and was replaced by two bi-lateral 364-day unsecured credit agreements in the aggregate amount of $200 million. A PHI $50 million bi-lateral credit agreement will expire on November 2, 2010.   Collateral Requirements of Pepco Energy Services In conducting its retail energy supply business, Pepco Energy Services, during periods of declining energy prices, has been exposed to the asymmetrical risk of having to post collateral under its wholesale purchase contracts without receiving a corresponding amount of collateral from its retail customers. To partially address these asymmetrical collateral obligations, Pepco Energy Services, in the first quarter of 2009, entered into a credit intermediation arrangement with Morgan Stanley Capital Group, Inc. (MSCG). Under this arrangement, MSCG, in consideration for the payment to MSCG of certain fees: (i) has assumed by novation certain electricity purchase obligations of Pepco Energy Services in years 2009 through 2011 under several wholesale purchase contracts, and (ii) has agreed to supply electricity to Pepco Energy Services on the same terms as the novated transactions, but without imposing on Pepco Energy Services any obligation to post collateral based on changes in electricity prices. As of September 30, 2010, approximately 3% of Pepco Energy Services’ wholesale electricity purchase obligations (measured in megawatt hours) was covered by this credit intermediation arrangement with MSCG. The upfront fees incurred by Pepco Energy Services in the amount of $25 million are being amortized into expense in declining amounts over the life of the arrangement based on the fair value of the underlying contracts at the time of novation. For the three months ended September 30, 2010 and 2009, approximately $1 million and $4 million, respectively, of the fees have been amortized and reflected in interest expense. For the nine months ended September 30, 2010 and 2009, approximately $6 million and $12 million, respectively, of the fees have been amortized and reflected in interest expense. In relation to its retail energy supply business, Pepco Energy Services in the ordinary course of business enters into various other contracts to buy and sell electricity, fuels and related products, including derivative instruments, designed to reduce its financial exposure to changes in the value of its assets and obligations due to energy price fluctuations. These contracts also typically have collateral requirements. Depending on the contract terms, the collateral required to be posted by Pepco Energy Services can be of varying forms, including cash and letters of credit. As of September 30, 2010, Pepco Energy Services had posted net cash collateral of $150 million and letters of credit of $140 million. At December 31, 2009, Pepco Energy Services had posted net cash collateral of $123 million and letters of credit of $157 million. Remaining Collateral Requirements of Conectiv Energy Depending on the contract terms, the collateral required to be posted by Conectiv Energy was of varying forms, including cash and letters of credit. As of September 30, 2010, Conectiv Energy had posted net cash collateral of $172 million and letters of credit of $2 million. At December 31, 2009, Conectiv Energy had posted net cash collateral of $240 million and letters of credit of $22 million. </div> false false false us-types:textBlockItemType textblock Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 false 3 ATLANTIC CITY ELECTRIC CO 0 na true na na No definition available. false true false false false false false false false false false http://www.pepcoholdings.com/taxonomy/role/notestofinancialstatementsdebtdisclosuretextblock false 1 false false false false 0 0 false false false false 2 USD true false false false ATLANTIC CITY ELECTRIC CO dei_LegalEntityAxis xbrldi http://xbrl.org/2006/xbrldi pom_AtlanticCityElectricCoMember dei_LegalEntityAxis explicitMember iso4217_USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 $ na No definition available. No authoritative reference available. false 4 DEBT 2 us-gaap_DebtDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false false 1 false false false false 0 0 <div> (7) DEBT Credit Facilities PHI, Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL) and ACE maintain an unsecured credit facility to provide for their respective short-term liquidity needs. The aggregate borrowing limit under the facility is $1.5 billion, all or any portion of which may be used to obtain loans or to issue letters of credit. PHI’s credit limit under the facility is $875 million. The credit limit of each of Pepco, DPL and ACE is the lesser of $500 million and the maximum amount of debt the company is permitted to have outstanding by its regulatory authorities, except that the aggregate amount of credit used by Pepco, DPL and ACE at any given time collectively may not exceed $625 million. At September 30, 2010 and December 31, 2009, the amount of cash plus borrowing capacity under the $1.5 billion credit facility available to meet the liquidity needs of PHI’s utility subsidiaries was $494 million and $582 million, respectively. Other Financing Activities In July 2010, ACE Funding made principal payments of $5.5 million on Series 2002-1 Bonds, Class A-2, and $2.1 million on Series 2003-1 Bonds, Class A-2. On August 30, 2010, ACE redeemed $1 million of 7.25% secured medium-term notes at maturity.   </div> false false false us-types:textBlockItemType textblock Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 false 5 DELMARVA POWER & LIGHT CO /DE/ 0 na true na na No definition available. false true false false false false false false false false false http://www.pepcoholdings.com/taxonomy/role/notestofinancialstatementsdebtdisclosuretextblock false 1 false false false false 0 0 false false false false 3 USD true false false false DELMARVA POWER & LIGHT CO /DE/ dei_LegalEntityAxis xbrldi http://xbrl.org/2006/xbrldi pom_DelmarvaPowerLightCoMember dei_LegalEntityAxis explicitMember iso4217_USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 $ na No definition available. No authoritative reference available. false 6 DEBT 2 us-gaap_DebtDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false false 1 false false false false 0 0 <div> (8) DEBT Credit Facilities PHI, Potomac Electric Power Company (Pepco), DPL and Atlantic City Electric Company (ACE) maintain an unsecured credit facility to provide for their respective short-term liquidity needs. The aggregate borrowing limit under the facility is $1.5 billion, all or any portion of which may be used to obtain loans or to issue letters of credit. PHI’s credit limit under the facility is $875 million. The credit limit of each of Pepco, DPL and ACE is the lesser of $500 million and the maximum amount of debt the company is permitted to have outstanding by its regulatory authorities, except that the aggregate amount of credit used by Pepco, DPL and ACE at any given time collectively may not exceed $625 million. At September 30, 2010 and December 31, 2009, the amount of cash plus borrowing capacity under the $1.5 billion credit facility available to meet the liquidity needs of PHI’s utility subsidiaries was $494 million and $582 million, respectively.   Other Financing Activities On July 1, 2010, DPL purchased $31 million of unsecured tax-exempt bonds issued for the benefit of DPL by The Delaware Economic Development Authority that in accordance with the terms of the bonds were subject to mandatory tender. DPL intends to remarket these bonds during the fourth quarter of 2010. </div> false false false us-types:textBlockItemType textblock Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 false 7 POTOMAC ELECTRIC POWER CO 0 na true na na No definition available. false true false false false false false false false false false http://www.pepcoholdings.com/taxonomy/role/notestofinancialstatementsdebtdisclosuretextblock false 1 false false false false 0 0 false false false false 4 USD true false false false POTOMAC ELECTRIC POWER CO dei_LegalEntityAxis xbrldi http://xbrl.org/2006/xbrldi pom_PotomacElectricPowerCoMember dei_LegalEntityAxis explicitMember iso4217_USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 $ na No definition available. No authoritative reference available. false 8 DEBT 2 us-gaap_DebtDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false false 1 false false false false 0 0 <div> (7) DEBT Credit Facilities PHI, Pepco, Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE) maintain an unsecured credit facility to provide for their respective short-term liquidity needs. The aggregate borrowing limit under the facility is $1.5 billion, all or any portion of which may be used to obtain loans or to issue letters of credit. PHI’s credit limit under the facility is $875 million. The credit limit of each of Pepco, DPL and ACE is the lesser of $500 million and the maximum amount of debt the company is permitted to have outstanding by its regulatory authorities, except that the aggregate amount of credit used by Pepco, DPL and ACE at any given time collectively may not exceed $625 million. At September 30, 2010 and December 31, 2009, the amount of cash plus borrowing capacity under the $1.5 billion credit facility available to meet the liquidity needs of PHI’s utility subsidiaries was $494 million and $582 million, respectively. </div> false false false us-types:textBlockItemType textblock Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. 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