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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