Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 14, 2014 | Jun. 28, 2013 |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'PEPCO HOLDINGS INC | ' | ' |
Entity Central Index Key | '0001135971 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 250,517,109 | ' |
Entity Public Float | ' | ' | $5,010.30 |
Potomac Electric Power Co [Member] | ' | ' | ' |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'POTOMAC ELECTRIC POWER CO | ' | ' |
Entity Central Index Key | '0000079732 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 100 | ' |
Entity Public Float | ' | ' | 0 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'DELMARVA POWER & LIGHT CO /DE/ | ' | ' |
Entity Central Index Key | '0000027879 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 1,000 | ' |
Entity Public Float | ' | ' | 0 |
Atlantic City Electric Co [Member] | ' | ' | ' |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'ATLANTIC CITY ELECTRIC CO | ' | ' |
Entity Central Index Key | '0000008192 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 8,546,017 | ' |
Entity Public Float | ' | ' | $0 |
Consolidated_Statements_of_Los
Consolidated Statements of (Loss) Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Revenue | $4,666 | $4,625 | $4,964 |
Operating Expenses | ' | ' | ' |
Fuel and purchased energy | 2,070 | 2,123 | 2,537 |
Other services cost of sales | 146 | 170 | 172 |
Other operation and maintenance | 851 | 898 | 889 |
Depreciation and amortization | 473 | 454 | 425 |
Other taxes | 428 | 432 | 451 |
Deferred electric service costs | 26 | -5 | -63 |
Impairment losses | 4 | 12 | ' |
Total Operating Expenses | 3,998 | 4,084 | 4,411 |
Operating (Loss) Income | 668 | 541 | 553 |
Other Income (Expenses) | ' | ' | ' |
Interest and dividend income | ' | 1 | 1 |
Interest expense | -273 | -256 | -242 |
Gain (loss) from equity investments | 2 | 1 | -3 |
Impairment losses | ' | -1 | -5 |
Other income | 32 | 35 | 32 |
Total Other Expenses | -239 | -220 | -217 |
Income Before Income Tax Expense | 429 | 321 | 336 |
Income Tax Expense | 319 | 103 | 114 |
Net Income from continuing operations | 110 | 218 | 222 |
(Loss) Income from Discontinued Operations, net of Income Taxes | -322 | 67 | 35 |
Net (Loss) Income | -212 | 285 | 257 |
Basic Share Information | ' | ' | ' |
Weighted average shares outstanding-Basic (millions) | 246 | 229 | 226 |
Earnings per share of common stock from Continuing Operations-Basic | $0.45 | $0.95 | $0.98 |
(Loss) earnings per share of common stock from Discontinued Operations-Basic | ($1.31) | $0.30 | $0.16 |
(Loss) earnings per share-Basic | ($0.86) | $1.25 | $1.14 |
Diluted Share Information | ' | ' | ' |
Weighted average shares outstanding-Diluted (millions) | 246 | 230 | 226 |
Earnings per share of common stock from Continuing Operations-Diluted | $0.45 | $0.95 | $0.98 |
(Loss) earnings per share of common stock from Discontinued Operations-Diluted | ($1.31) | $0.29 | $0.16 |
(Loss) earnings per share-Diluted | ($0.86) | $1.24 | $1.14 |
Potomac Electric Power Co [Member] | ' | ' | ' |
Operating Revenue | ' | ' | ' |
Operating Revenue | 2,026 | 1,948 | 2,078 |
Operating Expenses | ' | ' | ' |
Fuel and purchased energy | 750 | 726 | 893 |
Other operation and maintenance | 391 | 403 | 420 |
Depreciation and amortization | 196 | 190 | 171 |
Other taxes | 368 | 372 | 382 |
Total Operating Expenses | 1,705 | 1,691 | 1,866 |
Operating (Loss) Income | 321 | 257 | 212 |
Other Income (Expenses) | ' | ' | ' |
Interest expense | -110 | -101 | -94 |
Other income | 18 | 18 | 17 |
Total Other Expenses | -92 | -83 | -77 |
Income Before Income Tax Expense | 229 | 174 | 135 |
Income Tax Expense | 79 | 48 | 36 |
Net (Loss) Income | 150 | 126 | 99 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' |
Operating Revenue | ' | ' | ' |
Electric | 1,053 | 1,050 | 1,074 |
Natural gas | 191 | 183 | 230 |
Operating Revenue | 1,244 | 1,233 | 1,304 |
Operating Expenses | ' | ' | ' |
Fuel and purchased energy | 552 | 568 | 635 |
Gas purchased | 109 | 113 | 155 |
Other operation and maintenance | 251 | 260 | 239 |
Depreciation and amortization | 107 | 102 | 89 |
Other taxes | 40 | 36 | 37 |
Total Operating Expenses | 1,059 | 1,079 | 1,155 |
Operating (Loss) Income | 185 | 154 | 149 |
Other Income (Expenses) | ' | ' | ' |
Interest expense | -50 | -47 | -44 |
Other income | 10 | 10 | 8 |
Total Other Expenses | -40 | -37 | -36 |
Income Before Income Tax Expense | 145 | 117 | 113 |
Income Tax Expense | 56 | 44 | 42 |
Net (Loss) Income | 89 | 73 | 71 |
Atlantic City Electric Co [Member] | ' | ' | ' |
Operating Revenue | ' | ' | ' |
Operating Revenue | 1,202 | 1,198 | 1,268 |
Operating Expenses | ' | ' | ' |
Fuel and purchased energy | 660 | 703 | 807 |
Other operation and maintenance | 230 | 239 | 226 |
Depreciation and amortization | 136 | 124 | 134 |
Other taxes | 14 | 18 | 25 |
Deferred electric service costs | 26 | -5 | -63 |
Total Operating Expenses | 1,066 | 1,079 | 1,129 |
Operating (Loss) Income | 136 | 119 | 139 |
Other Income (Expenses) | ' | ' | ' |
Interest expense | -68 | -70 | -69 |
Other income | 1 | 4 | 2 |
Total Other Expenses | -67 | -66 | -67 |
Income Before Income Tax Expense | 69 | 53 | 72 |
Income Tax Expense | 19 | 18 | 33 |
Net (Loss) Income | $50 | $35 | $39 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive (Loss) Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net (loss) income | ($212) | $285 | $257 |
Other Comprehensive Income (Loss) from Continuing Operations | ' | ' | ' |
Losses on treasury rate locks reclassified into income | 1 | ' | 1 |
Pension and other postretirement benefit plans | 13 | -14 | -11 |
Other comprehensive income (loss), before income taxes | 14 | -14 | -10 |
Income tax expense (benefit) related to other comprehensive income | 6 | -6 | -4 |
Other comprehensive income (loss) from continuing operations, net of income taxes | 8 | -8 | -6 |
Other Comprehensive Income from Discontinued Operations, Net of Income Taxes | 6 | 23 | 49 |
Comprehensive (Loss) Income | ($198) | $300 | $300 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $23 | $25 |
Restricted cash equivalents | 13 | 10 |
Accounts receivable, less allowance for uncollectible accounts | 835 | 804 |
Inventories | 148 | 153 |
Prepayments of income taxes | 40 | 59 |
Deferred income tax assets, net | 51 | 28 |
Income taxes receivable | 234 | 69 |
Prepaid expenses and other | 53 | 81 |
Assets held for disposition | 1 | 38 |
Total Current Assets | 1,398 | 1,267 |
OTHER ASSETS | ' | ' |
Goodwill | 1,407 | 1,407 |
Regulatory assets | 2,087 | 2,614 |
Income taxes receivable | 67 | 217 |
Restricted cash equivalents | 14 | 17 |
Assets and accrued interest related to uncertain tax positions | 8 | 18 |
Derivative assets | ' | 8 |
Other | 163 | 163 |
Assets held for disposition | ' | 1,237 |
Total Other Assets | 3,746 | 5,681 |
PROPERTY, PLANT AND EQUIPMENT | ' | ' |
Property, plant and equipment | 14,567 | 13,625 |
Accumulated depreciation | -4,863 | -4,779 |
Net Property, Plant and Equipment | 9,704 | 8,846 |
TOTAL ASSETS | 14,848 | 15,794 |
CURRENT LIABILITIES | ' | ' |
Short-term debt | 565 | 965 |
Current portion of long-term debt | 446 | 569 |
Accounts payable | 215 | 196 |
Accrued liabilites | 301 | 357 |
Capital lease obligations due within one year | 9 | 8 |
Taxes accrued | 56 | 75 |
Interest accrued | 47 | 47 |
Liabilities and accrued interest related to uncertain tax positions | 397 | 9 |
Derivative liabilities | ' | 4 |
Other | 276 | 272 |
Liabilities associated with assets held for disposition | 1 | 41 |
Total Current Liabilities | 2,313 | 2,543 |
DEFERRED CREDITS | ' | ' |
Regulatory liabilities | 399 | 501 |
Deferred income tax liabilities, net | 2,928 | 3,208 |
Investment tax credits | 17 | 20 |
Pension benefit obligation | 116 | 449 |
Other postretirement benefit obligations | 206 | 454 |
Liabilities and accrued interest related to uncertain tax positions | 28 | 15 |
Derivative liabilities | ' | 11 |
Other | 189 | 191 |
Liabilities associated with assets held for disposition | ' | 2 |
Total Deferred Credits | 3,883 | 4,851 |
OTHER LONG-TERM LIABILITIES | ' | ' |
Long-term debt | 4,053 | 3,648 |
Transition bonds issued by ACE Funding | 214 | 256 |
Long-term project funding | 10 | 12 |
Capital lease obligations | 60 | 70 |
Total Other Long-Term Liabilities | 4,337 | 3,986 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
EQUITY | ' | ' |
Common stock | 3 | 2 |
Premium on stock and other capital contributions | 3,751 | 3,383 |
Accumulated other comprehensive loss | -34 | -48 |
Retained earnings | 595 | 1,077 |
Total Equity | 4,315 | 4,414 |
TOTAL LIABILITIES AND EQUITY | 14,848 | 15,794 |
Potomac Electric Power Co [Member] | ' | ' |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | 9 | 9 |
Restricted cash equivalents | 3 | ' |
Accounts receivable, less allowance for uncollectible accounts | 345 | 318 |
Inventories | 67 | 69 |
Prepayments of income taxes | 9 | 9 |
Deferred income tax assets, net | 48 | 9 |
Income taxes receivable | 104 | 31 |
Prepaid expenses and other | 18 | 16 |
Total Current Assets | 603 | 461 |
OTHER ASSETS | ' | ' |
Regulatory assets | 563 | 487 |
Prepaid pension expense | 332 | 353 |
Investment in trust | 33 | 31 |
Income taxes receivable | 36 | 102 |
Other | 66 | 59 |
Total Other Assets | 1,030 | 1,032 |
PROPERTY, PLANT AND EQUIPMENT | ' | ' |
Property, plant and equipment | 7,310 | 6,850 |
Accumulated depreciation | -2,772 | -2,705 |
Net Property, Plant and Equipment | 4,538 | 4,145 |
TOTAL ASSETS | 6,171 | 5,638 |
CURRENT LIABILITIES | ' | ' |
Short-term debt | 151 | 231 |
Current portion of long-term debt | 175 | 200 |
Accounts payable | 132 | 110 |
Accrued liabilites | 90 | 104 |
Accounts payable due to associated companies | 32 | 41 |
Capital lease obligations due within one year | 9 | 8 |
Taxes accrued | 34 | 58 |
Interest accrued | 20 | 17 |
Liabilities and accrued interest related to uncertain tax positions | 37 | ' |
Customer deposits | 46 | 48 |
Other | 75 | 58 |
Total Current Liabilities | 801 | 875 |
DEFERRED CREDITS | ' | ' |
Regulatory liabilities | 113 | 141 |
Deferred income tax liabilities, net | 1,412 | 1,219 |
Investment tax credits | 3 | 4 |
Other postretirement benefit obligations | 61 | 66 |
Liabilities and accrued interest related to uncertain tax positions | 10 | 53 |
Other | 65 | 66 |
Total Deferred Credits | 1,664 | 1,549 |
OTHER LONG-TERM LIABILITIES | ' | ' |
Long-term debt | 1,724 | 1,501 |
Capital lease obligations | 60 | 70 |
Total Other Long-Term Liabilities | 1,784 | 1,571 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
EQUITY | ' | ' |
Common stock | ' | ' |
Premium on stock and other capital contributions | 930 | 755 |
Retained earnings | 992 | 888 |
Total Equity | 1,922 | 1,643 |
TOTAL LIABILITIES AND EQUITY | 6,171 | 5,638 |
Delmarva Power & Light Co/De [Member] | ' | ' |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | 2 | 6 |
Accounts receivable, less allowance for uncollectible accounts | 208 | 201 |
Inventories | 51 | 53 |
Prepayments of income taxes | 10 | 10 |
Deferred income tax assets, net | 59 | 11 |
Income taxes receivable | 5 | 10 |
Assets and accrued interest related to uncertain tax positions | 17 | ' |
Prepaid expenses and other | 9 | 9 |
Total Current Assets | 361 | 300 |
OTHER ASSETS | ' | ' |
Goodwill | 8 | 8 |
Regulatory assets | 311 | 288 |
Prepaid pension expense | 228 | 232 |
Assets and accrued interest related to uncertain tax positions | 3 | 20 |
Other | 13 | 12 |
Total Other Assets | 563 | 560 |
PROPERTY, PLANT AND EQUIPMENT | ' | ' |
Property, plant and equipment | 3,673 | 3,422 |
Accumulated depreciation | -1,016 | -1,000 |
Net Property, Plant and Equipment | 2,657 | 2,422 |
TOTAL ASSETS | 3,581 | 3,282 |
CURRENT LIABILITIES | ' | ' |
Short-term debt | 252 | 137 |
Current portion of long-term debt | 100 | 250 |
Accounts payable | 46 | 40 |
Accrued liabilites | 71 | 85 |
Accounts payable due to associated companies | 22 | 20 |
Taxes accrued | 4 | 4 |
Interest accrued | 6 | 6 |
Derivative liabilities | ' | 4 |
Other | 60 | 61 |
Total Current Liabilities | 561 | 607 |
DEFERRED CREDITS | ' | ' |
Regulatory liabilities | 229 | 258 |
Deferred income tax liabilities, net | 816 | 697 |
Investment tax credits | 5 | 5 |
Other postretirement benefit obligations | 23 | 22 |
Other | 36 | 41 |
Total Deferred Credits | 1,109 | 1,023 |
OTHER LONG-TERM LIABILITIES | ' | ' |
Long-term debt | 867 | 667 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
EQUITY | ' | ' |
Common stock | ' | ' |
Premium on stock and other capital contributions | 407 | 407 |
Retained earnings | 637 | 578 |
Total Equity | 1,044 | 985 |
TOTAL LIABILITIES AND EQUITY | 3,581 | 3,282 |
Atlantic City Electric Co [Member] | ' | ' |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | 3 | 6 |
Restricted cash equivalents | 10 | 10 |
Accounts receivable, less allowance for uncollectible accounts | 186 | 192 |
Inventories | 28 | 30 |
Prepayments of income taxes | 17 | 27 |
Deferred income tax assets, net | 15 | 10 |
Income taxes receivable | 118 | 5 |
Assets and accrued interest related to uncertain tax positions | 12 | ' |
Prepaid expenses and other | 16 | 11 |
Total Current Assets | 390 | 281 |
OTHER ASSETS | ' | ' |
Regulatory assets | 569 | 694 |
Prepaid pension expense | 106 | 88 |
Income taxes receivable | 29 | 133 |
Restricted cash equivalents | 14 | 17 |
Assets and accrued interest related to uncertain tax positions | 5 | 12 |
Derivative assets | ' | 8 |
Other | 12 | 12 |
Total Other Assets | 735 | 964 |
PROPERTY, PLANT AND EQUIPMENT | ' | ' |
Property, plant and equipment | 2,901 | 2,771 |
Accumulated depreciation | -751 | -787 |
Net Property, Plant and Equipment | 2,150 | 1,984 |
TOTAL ASSETS | 3,275 | 3,229 |
CURRENT LIABILITIES | ' | ' |
Short-term debt | 138 | 133 |
Current portion of long-term debt | 148 | 108 |
Accounts payable | 21 | 26 |
Accrued liabilites | 105 | 121 |
Accounts payable due to associated companies | 15 | 14 |
Taxes accrued | 12 | 10 |
Interest accrued | 13 | 15 |
Customer deposits | 22 | 25 |
Other | 23 | 22 |
Total Current Liabilities | 497 | 474 |
DEFERRED CREDITS | ' | ' |
Regulatory liabilities | 57 | 102 |
Deferred income tax liabilities, net | 833 | 766 |
Investment tax credits | 5 | 6 |
Other postretirement benefit obligations | 35 | 34 |
Derivative liabilities | ' | 11 |
Other | 14 | 18 |
Total Deferred Credits | 944 | 937 |
OTHER LONG-TERM LIABILITIES | ' | ' |
Long-term debt | 753 | 760 |
Transition bonds issued by ACE Funding | 214 | 256 |
Total Other Long-Term Liabilities | 967 | 1,016 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
EQUITY | ' | ' |
Common stock | 26 | 26 |
Premium on stock and other capital contributions | 651 | 576 |
Retained earnings | 190 | 200 |
Total Equity | 867 | 802 |
TOTAL LIABILITIES AND EQUITY | $3,275 | $3,229 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for uncollectible accounts | $38 | $34 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares outstanding | 250,324,898 | 230,015,427 |
Potomac Electric Power Co [Member] | ' | ' |
Accounts receivable, allowance for uncollectible accounts | 16 | 13 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares outstanding | 100 | 100 |
Delmarva Power & Light Co/De [Member] | ' | ' |
Accounts receivable, allowance for uncollectible accounts | 12 | 9 |
Common stock, par value | $2.25 | $2.25 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Atlantic City Electric Co [Member] | ' | ' |
Accounts receivable, allowance for uncollectible accounts | $10 | $11 |
Common stock, par value | $3 | $3 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares outstanding | 8,546,017 | 8,546,017 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING ACTIVITIES | ' | ' | ' |
Net (loss) income | ($212) | $285 | $257 |
Loss (income) from discontinued operations, net of income taxes | 322 | -67 | -35 |
Adjustments to reconcile net income to net cash from operating activities: | ' | ' | ' |
Depreciation and amortization | 473 | 454 | 425 |
Deferred income taxes | 458 | 312 | 178 |
Losses on treasury rate locks reclassified into income | 1 | ' | 1 |
Investment tax credit amortization | -2 | -3 | -4 |
Impairment losses | 4 | 12 | ' |
Other | -13 | -15 | -16 |
Changes in: | ' | ' | ' |
Accounts receivable | -46 | -2 | 56 |
Inventories | 5 | -28 | -8 |
Prepaid expenses | 17 | -12 | -4 |
Regulatory assets and liabilities, net | -121 | -174 | -148 |
Accounts payable and accrued liabilities | 1 | 43 | -53 |
Pension contributions | -120 | -200 | -110 |
Pension benefit obligation, excluding contributions | 65 | 65 | 53 |
Cash collateral related to derivative activities | 31 | 88 | 9 |
Income tax-related prepayments, receivables and payables | -182 | -160 | -27 |
Advanced payment made to taxing authority | -242 | ' | ' |
Other assets and liabilities | 9 | 16 | 43 |
Net current assets held for disposition or sale | 47 | -25 | 65 |
Net Cash From Operating Activities | 497 | 592 | 686 |
INVESTING ACTIVITIES | ' | ' | ' |
Investment in property, plant and equipment | -1,310 | -1,216 | -941 |
Department of Energy capital reimbursement awards received | 22 | 40 | 52 |
Changes in restricted cash equivalents | 1 | -1 | -10 |
Net other investing activities | 3 | 6 | -9 |
Proceeds from disposal of assets held for disposition | 873 | 202 | 161 |
Net Cash Used By Investing Activities | -411 | -969 | -747 |
FINANCING ACTIVITIES | ' | ' | ' |
Dividends paid on common stock | -270 | -248 | -244 |
Common stock issued for the Direct Stock Purchase and Dividend Reinvestment Plan and employee-related compensation | 50 | 51 | 47 |
Issuances of common stock | 324 | ' | ' |
Redemption of preferred stock of subsidiaries | ' | ' | -6 |
Issuances of long-term debt | 800 | 450 | 235 |
Reacquisitions of long-term debt | -558 | -176 | -70 |
(Repayments) issuances of short-term debt, net | -200 | 33 | 198 |
Issuances of term loans | 250 | 200 | ' |
Repayments of term loans | -450 | ' | ' |
Cost of issuances | -23 | -9 | -10 |
Net other financing activities | -11 | -8 | -1 |
Net Cash (Used By) From Financing Activities | -88 | 293 | 149 |
Net (Decrease) Increase In Cash and Cash Equivalents | -2 | -84 | 88 |
Cash and Cash Equivalents at Beginning of Year | 25 | 109 | 21 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 23 | 25 | 109 |
SUPPLEMENTAL CASH FLOW INFORMATION | ' | ' | ' |
Cash paid for interest | 260 | 253 | 240 |
Cash (received) paid for income taxes | 228 | ' | 4 |
Non-cash activities: | ' | ' | ' |
Reclassification of property, plant and equipment to regulatory assets | ' | 88 | ' |
Reclassification of asset removal costs regulatory liability to accumulated depreciation | ' | 61 | ' |
Potomac Electric Power Co [Member] | ' | ' | ' |
OPERATING ACTIVITIES | ' | ' | ' |
Net (loss) income | 150 | 126 | 99 |
Adjustments to reconcile net income to net cash from operating activities: | ' | ' | ' |
Depreciation and amortization | 196 | 190 | 171 |
Deferred income taxes | 120 | 160 | 73 |
Investment tax credit amortization | -1 | -1 | -2 |
Changes in: | ' | ' | ' |
Accounts receivable | -39 | 22 | 33 |
Inventories | 2 | -19 | -6 |
Prepaid expenses | -1 | 6 | 1 |
Regulatory assets and liabilities, net | -99 | -110 | -43 |
Accounts payable and accrued liabilities | 26 | -10 | -27 |
Pension contributions | 0 | -85 | -40 |
Pension benefit obligation, excluding contributions | 21 | 21 | 24 |
Income tax-related prepayments, receivables and payables | -36 | -69 | 73 |
Interest accrued | 2 | ' | -1 |
Other assets and liabilities | -11 | -8 | 2 |
Net Cash From Operating Activities | 330 | 223 | 357 |
INVESTING ACTIVITIES | ' | ' | ' |
Investment in property, plant and equipment | -576 | -592 | -521 |
Department of Energy capital reimbursement awards received | 20 | 38 | 48 |
Changes in restricted cash equivalents | -3 | ' | ' |
Net other investing activities | -5 | 4 | -7 |
Net Cash Used By Investing Activities | -564 | -550 | -480 |
FINANCING ACTIVITIES | ' | ' | ' |
Dividends paid on common stock | -46 | -35 | -25 |
Capital contributions from Parent | 175 | 50 | ' |
Issuances of long-term debt | 400 | 200 | ' |
Reacquisitions of long-term debt | -200 | -38 | ' |
(Repayments) issuances of short-term debt, net | -80 | 157 | 74 |
Cost of issuances | -7 | -4 | ' |
Net other financing activities | -8 | -6 | -2 |
Net Cash (Used By) From Financing Activities | 234 | 324 | 47 |
Net (Decrease) Increase In Cash and Cash Equivalents | ' | -3 | -76 |
Cash and Cash Equivalents at Beginning of Year | 9 | 12 | 88 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 9 | 9 | 12 |
SUPPLEMENTAL CASH FLOW INFORMATION | ' | ' | ' |
Cash paid for interest | 102 | 97 | 91 |
Cash (received) paid for income taxes | -28 | -40 | -108 |
Non-cash activities: | ' | ' | ' |
Reclassification of property, plant and equipment to regulatory assets | ' | 50 | ' |
Reclassification of asset removal costs regulatory liability to accumulated depreciation | ' | 19 | ' |
Delmarva Power & Light Co/De [Member] | ' | ' | ' |
OPERATING ACTIVITIES | ' | ' | ' |
Net (loss) income | 89 | 73 | 71 |
Adjustments to reconcile net income to net cash from operating activities: | ' | ' | ' |
Depreciation and amortization | 107 | 102 | 89 |
Deferred income taxes | 65 | 55 | 57 |
Investment tax credit amortization | -1 | -1 | -1 |
Changes in: | ' | ' | ' |
Accounts receivable | -7 | -15 | 26 |
Inventories | 2 | -9 | -3 |
Regulatory assets and liabilities, net | -42 | -29 | -30 |
Accounts payable and accrued liabilities | -1 | 26 | -23 |
Pension contributions | -10 | -85 | -40 |
Pension benefit obligation, excluding contributions | 14 | 15 | 17 |
Income tax-related prepayments, receivables and payables | -1 | 8 | 14 |
Other assets and liabilities | -1 | -9 | 1 |
Net Cash From Operating Activities | 214 | 131 | 178 |
INVESTING ACTIVITIES | ' | ' | ' |
Investment in property, plant and equipment | -357 | -320 | -229 |
Net other investing activities | 2 | ' | -4 |
Net Cash Used By Investing Activities | -355 | -320 | -233 |
FINANCING ACTIVITIES | ' | ' | ' |
Dividends paid on common stock | -30 | ' | -60 |
Capital contributions from Parent | ' | 60 | ' |
Issuances of long-term debt | 300 | 250 | 35 |
Reacquisitions of long-term debt | -250 | -97 | -35 |
(Repayments) issuances of short-term debt, net | 115 | -15 | 47 |
Cost of issuances | -3 | -3 | ' |
Net other financing activities | 5 | -5 | 4 |
Net Cash (Used By) From Financing Activities | 137 | 190 | -9 |
Net (Decrease) Increase In Cash and Cash Equivalents | -4 | 1 | -64 |
Cash and Cash Equivalents at Beginning of Year | 6 | 5 | 69 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 2 | 6 | 5 |
SUPPLEMENTAL CASH FLOW INFORMATION | ' | ' | ' |
Cash paid for interest | 47 | 44 | 43 |
Cash (received) paid for income taxes | -8 | -24 | -24 |
Non-cash activities: | ' | ' | ' |
Reclassification of property, plant and equipment to regulatory assets | ' | 38 | ' |
Reclassification of asset removal costs regulatory liability to accumulated depreciation | ' | 42 | ' |
Atlantic City Electric Co [Member] | ' | ' | ' |
OPERATING ACTIVITIES | ' | ' | ' |
Net (loss) income | 50 | 35 | 39 |
Adjustments to reconcile net income to net cash from operating activities: | ' | ' | ' |
Depreciation and amortization | 136 | 124 | 134 |
Deferred income taxes | 53 | 62 | 42 |
Investment tax credit amortization | -1 | -1 | -1 |
Changes in: | ' | ' | ' |
Accounts receivable | 7 | -7 | 26 |
Inventories | 2 | -5 | -8 |
Regulatory assets and liabilities, net | 19 | -33 | -74 |
Accounts payable and accrued liabilities | 4 | 12 | -18 |
Pension contributions | -30 | -30 | -30 |
Income tax-related prepayments, receivables and payables | -6 | -43 | 45 |
Other assets and liabilities | 12 | 19 | 16 |
Net Cash From Operating Activities | 246 | 133 | 171 |
INVESTING ACTIVITIES | ' | ' | ' |
Investment in property, plant and equipment | -261 | -256 | -138 |
Department of Energy capital reimbursement awards received | 2 | 2 | 4 |
Net other investing activities | 3 | -1 | -9 |
Net Cash Used By Investing Activities | -256 | -255 | -143 |
FINANCING ACTIVITIES | ' | ' | ' |
Dividends paid on common stock | -60 | -35 | ' |
Capital contributions from Parent | 75 | ' | 60 |
Redemption of preferred stock of subsidiaries | ' | ' | -6 |
Issuances of long-term debt | 100 | ' | 200 |
Reacquisitions of long-term debt | -108 | -41 | -35 |
(Repayments) issuances of short-term debt, net | 6 | 110 | -158 |
Net other financing activities | -6 | 3 | -2 |
Net Cash (Used By) From Financing Activities | 7 | 37 | 59 |
Net (Decrease) Increase In Cash and Cash Equivalents | -3 | -85 | 87 |
Cash and Cash Equivalents at Beginning of Year | 6 | 91 | 4 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 3 | 6 | 91 |
SUPPLEMENTAL CASH FLOW INFORMATION | ' | ' | ' |
Cash paid for interest | 67 | 68 | 64 |
Cash (received) paid for income taxes | ($21) | $1 | ($51) |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Capitalized interest | $7 | $8 | $11 |
Potomac Electric Power Co [Member] | ' | ' | ' |
Capitalized interest | 5 | 4 | 8 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' |
Capitalized interest | 2 | 2 | 1 |
Atlantic City Electric Co [Member] | ' | ' | ' |
Capitalized interest | $1 | $2 | $2 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | Common Stock [Member] | Premium on Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] |
In Millions, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Common Stock [Member] | Premium on Stock [Member] | Retained Earnings [Member] | USD ($) | Common Stock [Member] | Premium on Stock [Member] | Retained Earnings [Member] | USD ($) | Common Stock [Member] | Premium on Stock [Member] | Retained Earnings [Member] |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||
Balance at Dec. 31, 2010 | $4,198 | $2 | $3,275 | $1,027 | ($106) | $1,428 | ' | $705 | $723 | $841 | ' | $347 | $494 | $703 | $26 | $516 | $161 |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2010 | ' | 225,082,252 | ' | ' | ' | ' | 100 | ' | ' | ' | 1,000 | ' | ' | ' | 8,546,017 | ' | ' |
Net (loss) income | 257 | ' | ' | 257 | ' | 99 | ' | ' | 99 | 71 | ' | ' | 71 | 39 | ' | ' | 39 |
Other comprehensive income | 43 | ' | ' | ' | 43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital contribution from Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 | ' | 60 | ' |
Dividends on common stock | -244 | ' | ' | -244 | ' | -25 | ' | ' | -25 | -60 | ' | ' | -60 | ' | ' | ' | ' |
Original issue shares, net | 17 | ' | 17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original issue shares, net, shares | ' | 854,124 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholder DRP original shares | 30 | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholder DRP original shares, shares | 2,000,000 | 1,563,814 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net activity related to stock-based awards | 3 | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 4,304 | 2 | 3,325 | 1,040 | -63 | 1,502 | ' | ' | 797 | 852 | ' | ' | 505 | 802 | 26 | 576 | 200 |
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2011 | ' | 227,500,190 | ' | ' | ' | ' | 100 | ' | ' | ' | 1,000 | ' | ' | ' | 8,546,017 | ' | ' |
Net (loss) income | 68 | ' | ' | ' | ' | 24 | ' | ' | ' | 21 | ' | ' | ' | 2 | ' | ' | ' |
Balance at Mar. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 4,304 | 2 | 3,325 | 1,040 | -63 | 1,502 | ' | 705 | 797 | 852 | ' | 347 | 505 | 802 | 26 | ' | 200 |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2011 | ' | 227,500,190 | ' | ' | ' | ' | 100 | ' | ' | ' | 1,000 | ' | ' | ' | 8,546,017 | ' | ' |
Net (loss) income | 285 | ' | ' | 285 | ' | 126 | ' | ' | 126 | 73 | ' | ' | 73 | 35 | ' | ' | 35 |
Other comprehensive income | 15 | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital contribution from Parent | ' | ' | ' | ' | ' | 50 | ' | 50 | ' | 60 | ' | 60 | ' | ' | ' | ' | ' |
Dividends on common stock | -248 | ' | ' | -248 | ' | -35 | ' | ' | -35 | ' | ' | ' | ' | -35 | ' | ' | -35 |
Original issue shares, net | 19 | ' | 19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original issue shares, net, shares | ' | 854,060 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholder DRP original shares | 32 | ' | 32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholder DRP original shares, shares | 2,000,000 | 1,661,177 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net activity related to stock-based awards | 7 | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 4,414 | 2 | 3,383 | 1,077 | -48 | 1,643 | ' | 755 | 888 | 985 | ' | 407 | 578 | 802 | 26 | ' | 200 |
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2012 | 230,015,427 | 230,015,427 | ' | ' | ' | 100 | 100 | ' | ' | 1,000 | 1,000 | ' | ' | 8,546,017 | 8,546,017 | ' | ' |
Balance at Sep. 30, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income | 43 | ' | ' | ' | ' | 25 | ' | ' | ' | 17 | ' | ' | ' | 20 | ' | ' | ' |
Balance at Dec. 31, 2012 | 4,414 | ' | ' | ' | ' | 1,643 | ' | ' | ' | 985 | ' | ' | ' | 802 | 26 | ' | ' |
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2012 | 230,015,427 | ' | ' | ' | ' | 100 | 100 | ' | ' | 1,000 | 1,000 | ' | ' | 8,546,017 | 8,546,017 | ' | ' |
Net (loss) income | -430 | ' | ' | ' | ' | 23 | ' | ' | ' | 26 | ' | ' | ' | 9 | ' | ' | ' |
Balance at Mar. 31, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 4,414 | 2 | 3,383 | 1,077 | -48 | 1,643 | ' | 755 | 888 | 985 | ' | ' | 578 | 802 | 26 | 576 | 200 |
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2012 | 230,015,427 | 230,015,427 | ' | ' | ' | 100 | 100 | ' | ' | 1,000 | 1,000 | ' | ' | 8,546,017 | 8,546,017 | ' | ' |
Net (loss) income | -212 | ' | ' | -212 | ' | 150 | ' | ' | 150 | 89 | ' | ' | 89 | 50 | ' | ' | 50 |
Other comprehensive income | 14 | ' | ' | ' | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital contribution from Parent | ' | ' | ' | ' | ' | 175 | ' | 175 | ' | ' | ' | ' | ' | 75 | ' | 75 | ' |
Dividends on common stock | -270 | ' | ' | -270 | ' | -46 | ' | ' | -46 | -30 | ' | ' | -30 | -60 | ' | ' | -60 |
Original issue shares, net | 332 | 1 | 331 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original issue shares, net, shares | ' | 18,734,128 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholder DRP original shares | 30 | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shareholder DRP original shares, shares | 2,000,000 | 1,575,343 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net activity related to stock-based awards | 7 | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 4,315 | 3 | 3,751 | 595 | -34 | 1,922 | ' | 930 | 992 | 1,044 | ' | 407 | 637 | 867 | 26 | 651 | 190 |
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2013 | 250,324,898 | 250,324,898 | ' | ' | ' | 100 | 100 | ' | ' | 1,000 | 1,000 | ' | ' | 8,546,017 | 8,546,017 | ' | ' |
Balance at Sep. 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income | 58 | ' | ' | ' | ' | 24 | ' | ' | ' | 28 | ' | ' | ' | 9 | ' | ' | ' |
Balance at Dec. 31, 2013 | $4,315 | ' | ' | ' | ' | $1,922 | ' | ' | ' | $1,044 | ' | $407 | ' | $867 | $26 | ' | ' |
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2013 | 250,324,898 | ' | ' | ' | ' | 100 | 100 | ' | ' | 1,000 | 1,000 | ' | ' | 8,546,017 | 8,546,017 | ' | ' |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Dividends on common stock, per share | $1.08 | $1.08 | $1.08 |
Retained Earnings [Member] | ' | ' | ' |
Dividends on common stock, per share | $1.08 | $1.08 | $1.08 |
Organization
Organization | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Organization | ' | |||
(1) ORGANIZATION | ||||
Pepco Holdings, Inc. (PHI or Pepco Holdings), a Delaware corporation incorporated in 2001, is a holding company that, through the following regulated public utility subsidiaries, is engaged primarily in the transmission, distribution and default supply of electricity and the distribution and supply of natural gas (Power Delivery): | ||||
• | Potomac Electric Power Company (Pepco), which was incorporated in Washington, D.C. in 1896 and became a domestic Virginia corporation in 1949, | |||
• | Delmarva Power & Light Company (DPL), which was incorporated in Delaware in 1909 and became a domestic Virginia corporation in 1979, and | |||
• | Atlantic City Electric Company (ACE), which was incorporated in New Jersey in 1924. | |||
Each of PHI, Pepco, DPL and ACE is also a reporting company under the Securities Exchange Act of 1934, as amended. Together, Pepco, DPL and ACE constitute the Power Delivery segment for financial reporting purposes. | ||||
Through Pepco Energy Services, Inc. and its subsidiaries (collectively, Pepco Energy Services), PHI provides energy savings performance contracting services, underground transmission and distribution construction and maintenance services, and steam and chilled water under long-term contracts. | ||||
PHI Service Company, a subsidiary service company of PHI, provides a variety of support services, including legal, accounting, treasury, tax, purchasing and information technology services to PHI and its operating subsidiaries. These services are provided pursuant to service agreements among PHI, PHI Service Company and the participating operating subsidiaries. The expenses of PHI Service Company are charged to PHI and the participating operating subsidiaries in accordance with cost allocation methodologies set forth in the service agreements. | ||||
Power Delivery | ||||
Each of Pepco, DPL and ACE is a regulated public utility in the jurisdictions that comprise its service territory. Each utility owns and operates a network of wires, substations and other equipment that is classified as transmission facilities, distribution facilities or common facilities (which are used for both transmission and distribution). Transmission facilities are high-voltage systems that carry wholesale electricity into, or across, the utility’s service territory. Distribution facilities are low-voltage systems that carry electricity to end-use customers in the utility’s service territory. | ||||
Each utility is responsible for the distribution of electricity, and in the case of DPL, the distribution and supply of natural gas, in its service territory, for which it is paid tariff rates established by the applicable local public service commissions. Each utility also supplies electricity at regulated rates to retail customers in its service territory who do not elect to purchase electricity from a competitive energy supplier. The regulatory term for this supply service is Standard Office Service (SOS) in Delaware, the District of Columbia and Maryland, and Basic Generation Service (BGS) in New Jersey. In these Notes to the consolidated financial statements, these supply service obligations are referred to generally as Default Electricity Supply. | ||||
Pepco Energy Services | ||||
Pepco Energy Services is engaged in the following businesses: | ||||
• | Energy savings performance contracting business: designing, constructing and operating energy efficiency projects and distributed generation equipment, including combined heat and power plants, principally for federal, state and local government customers; | |||
• | Underground transmission and distribution business: providing underground transmission and distribution construction and maintenance services for electric utilities in North America; and | |||
• | Thermal business: providing steam and chilled water under long-term contracts through systems owned and operated by Pepco Energy Services, primarily to hotels and casinos in Atlantic City, New Jersey. | |||
During 2012, Pepco Energy Services deactivated its Buzzard Point and Benning Road oil-fired generation facilities. Pepco Energy Services placed the facilities into an idle condition termed a “cold closure.” A cold closure requires that the utility service be disconnected so that the facilities are no longer operable and require only essential maintenance until they are completely decommissioned. During the third quarter of 2013, Pepco Energy Services determined that it would be more cost effective to pursue the demolition of the Benning Road generation facility and realization of the scrap metal salvage value of the facility instead of maintaining cold closure status. As a result of this change in intent, Pepco Energy Services reduced its asset retirement obligation related to the facility by $2 million. The demolition of the facility commenced in the fourth quarter of 2013 and is expected to be completed by the end of 2014. Pepco Energy Services will recognize the salvage proceeds associated with the scrap metals at the facility as realized. | ||||
Other Non-Regulated | ||||
Between 1990 and 1999, PCI, through various subsidiaries, entered into certain transactions involving investments in aircraft and aircraft equipment, railcars and other assets. In connection with these transactions, PCI recorded deferred tax assets in prior years of $101 million in the aggregate. Following events that took place during the first quarter of 2013, which included (i) court decisions in favor of the Internal Revenue Service (IRS) with respect to both Consolidated Edison’s cross-border lease transaction and another taxpayer’s structured transactions (see additional discussion at “- Discontinued Operations – Cross-Border Energy Lease Investments” below), (ii) the change in PHI’s tax position with respect to the tax benefits associated with its cross-border energy leases, and (iii) PHI’s decision in March 2013 to begin to pursue the early termination of its remaining cross-border energy lease investments (which represented a substantial portion of the remaining assets within PCI) without the intent to reinvest these proceeds in income-producing assets, management evaluated the likelihood that PCI would be able to realize the $101 million of deferred tax assets in the future. Based on this evaluation, PCI established valuation allowances against these deferred tax assets totaling $101 million in the first quarter of 2013. Further, during the fourth quarter of 2013, in light of additional court decisions in favor of the IRS involving other taxpayers, and after consideration of all relevant factors, management determined that it would abandon the further pursuit of these deferred tax assets, and these assets totaling $101 million were charged off against the previously established valuation allowances. | ||||
Discontinued Operations | ||||
Cross-Border Energy Lease Investments | ||||
Through its subsidiary PCI, PHI held a portfolio of cross-border energy lease investments. During July 2013, PHI completed the termination of its interest in its cross-border energy lease investments. With the completion of the termination of the cross-border energy leases, the cross-border energy lease investments are being accounted for as discontinued operations. | ||||
As discussed in Note (15), “Commitments and Contingencies – PHI’s Cross-Border Energy Lease Investments,” PHI is involved in ongoing litigation with the IRS concerning certain benefits associated with previously held investments in cross-border energy leases. On January 9, 2013, the U.S. Court of Appeals for the Federal Circuit issued an opinion in Consolidated Edison Company of New York, Inc. & Subsidiaries v. United States (to which PHI is not a party) that disallowed tax benefits associated with Consolidated Edison’s cross-border lease transaction. As a result of the court’s ruling in this case, PHI determined in the first quarter of 2013 that its tax position with respect to the benefits associated with its cross-border energy leases no longer met the more-likely-than-not standard of recognition for accounting purposes, and PCI recorded non-cash charges of $323 million (after-tax) in the first quarter of 2013 and $6 million (after-tax) in the second quarter of 2013, consisting of the following components: | ||||
• | A non-cash pre-tax charge of $373 million ($313 million after-tax) to reduce the carrying value of these cross-border energy lease investments under Financial Accounting Standards Board (FASB) guidance on leases (Accounting Standards Codification (ASC) 840). This pre-tax charge was originally recorded in the consolidated statements of (loss) income as a reduction in operating revenue and is now reflected in (loss) income from discontinued operations, net of income taxes. | |||
• | A non-cash charge of $16 million after-tax to reflect the anticipated additional net interest expense under FASB guidance for income taxes (ASC 740), related to estimated federal and state income tax obligations for the period over which the tax benefits may be disallowed. This after-tax charge was originally recorded in the consolidated statements of (loss) income as an increase in income tax expense and is now reflected in (loss) income from discontinued operations, net of income taxes. The after-tax interest charge for PHI on a consolidated basis was $70 million and this amount was allocated to each member of PHI’s consolidated group as if each member was a separate taxpayer, resulting in the recognition of a $12 million interest benefit for the Power Delivery segment and interest expense of $16 million for PCI and $66 million for Corporate and Other, respectively. | |||
Pepco Energy Services | ||||
In December 2009, PHI announced the wind-down of the retail energy supply component of the Pepco Energy Services business which was comprised of the retail electric and natural gas supply businesses. Pepco Energy Services implemented the wind-down by not entering into any new retail electric or natural gas supply contracts while continuing to perform under its existing retail electric and natural gas supply contracts through their respective expiration dates. On March 21, 2013, Pepco Energy Services entered into an agreement whereby a third party assumed all the rights and obligations of the remaining retail natural gas supply customer contracts, and the associated supply obligations, inventory and derivative contracts. The transaction was completed on April 1, 2013. In addition, Pepco Energy Services completed the wind-down of its retail electric supply business in the second quarter of 2013 by terminating its remaining customer supply and wholesale purchase obligations beyond June 30, 2013. | ||||
The operations of Pepco Energy Services’ retail electric and natural gas supply businesses have been classified as discontinued operations and are no longer a part of the Pepco Energy Services segment for financial reporting purposes. | ||||
Potomac Electric Power Co [Member] | ' | |||
Organization | ' | |||
(1) ORGANIZATION | ||||
Potomac Electric Power Company (Pepco) is engaged in the transmission and distribution of electricity in the District of Columbia and major portions of Prince George’s County and Montgomery County in suburban Maryland. Pepco also provides Default Electricity Supply, which is the supply of electricity at regulated rates to retail customers in its service territories who do not elect to purchase electricity from a competitive energy supplier. Default Electricity Supply is known as Standard Offer Service in both the District of Columbia and Maryland. Pepco is a wholly owned subsidiary of Pepco Holdings, Inc. (Pepco Holdings or PHI). | ||||
Delmarva Power & Light Co/De [Member] | ' | |||
Organization | ' | |||
(1) ORGANIZATION | ||||
Delmarva Power & Light Company (DPL) is engaged in the transmission and distribution of electricity in Delaware and portions of Maryland and provides natural gas distribution service in northern Delaware. Additionally, DPL provides Default Electricity Supply, which is the supply of electricity at regulated rates to retail customers in its service territories who do not elect to purchase electricity from a competitive supplier. Default Electricity Supply is known as Standard Offer Service in both Delaware and Maryland. DPL is a wholly owned subsidiary of Conectiv, LLC (Conectiv), which is wholly owned by Pepco Holdings, Inc. (Pepco Holdings or PHI). | ||||
Atlantic City Electric Co [Member] | ' | |||
Organization | ' | |||
(1) ORGANIZATION | ||||
Atlantic City Electric Company (ACE) is engaged in the transmission and distribution of electricity in southern New Jersey. ACE also provides Default Electricity Supply, which is the supply of electricity at regulated rates to retail customers in its service territory who do not elect to purchase electricity from a competitive energy supplier. Default Electricity Supply is known as Basic Generation Service in New Jersey. ACE is a wholly owned subsidiary of Conectiv, LLC (Conectiv), which is wholly owned by Pepco Holdings, Inc. (Pepco Holdings or PHI). |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||||||||||
(2) SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||||||
Consolidation Policy | |||||||||||||||||||||||||
The accompanying consolidated financial statements include the accounts of Pepco Holdings and its wholly owned subsidiaries. All material intercompany balances and transactions between subsidiaries have been eliminated. Pepco Holdings uses the equity method to report investments, corporate joint ventures, partnerships, and affiliated companies in which it holds an interest and can exercise significant influence over the operations and policies of the entity. Certain transmission and other facilities currently held, are consolidated in proportion to PHI’s percentage interest in the facility. | |||||||||||||||||||||||||
Consolidation of Variable Interest Entities | |||||||||||||||||||||||||
PHI assesses its contractual arrangements with variable interest entities to determine whether it is the primary beneficiary and thereby has to consolidate the entities in accordance with FASB ASC 810. The guidance addresses conditions under which an entity should be consolidated based upon variable interests rather than voting interests. See Note (16), “Variable Interest Entities,” for additional information. | |||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in the consolidated financial statements and accompanying notes. Although Pepco Holdings believes that its estimates and assumptions are reasonable, they are based upon information available to management at the time the estimates are made. Actual results may differ significantly from these estimates. | |||||||||||||||||||||||||
Significant matters that involve the use of estimates include the assessment of contingencies, the calculation of future cash flows and fair value amounts for use in asset and goodwill impairment calculations, fair value calculations for derivative instruments, pension and other postretirement benefit assumptions, the assessment of the probability of recovery of regulatory assets, accrual of storm restoration costs, accrual of unbilled revenue, recognition of changes in network service transmission rates for prior service year costs, accrual of loss contingency liabilities for general and auto liability claims, accrual of interest related to income taxes, the recognition of lease income and income tax benefits for investments in finance leases held in trust associated with PHI’s portfolio of cross-border energy lease investments (see Note (19), “Discontinued Operations – Cross-Border Energy Lease Investments”), and income tax provisions and reserves. Additionally, PHI is subject to legal, regulatory and other proceedings and claims that arise in the ordinary course of its business. PHI records an estimated liability for these proceedings and claims when it is probable that a loss has been incurred and the loss is reasonably estimable. | |||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
Regulated Revenue | |||||||||||||||||||||||||
Power Delivery recognizes revenue upon distribution of electricity and natural gas to its customers, including unbilled revenue for services rendered but not yet billed. PHI’s unbilled revenue was $177 million and $182 million as of December 31, 2013 and 2012, respectively, and these amounts are included in Accounts receivable. PHI’s utility subsidiaries calculate unbilled revenue using an output-based methodology. This methodology is based on the supply of electricity or natural gas intended for distribution to customers. The unbilled revenue process requires management to make assumptions and judgments about input factors such as customer sales mix, temperature and estimated line losses (estimates of electricity and natural gas expected to be lost in the process of its transmission and distribution to customers). The assumptions and judgments are inherently uncertain and susceptible to change from period to period, and if the actual results differ from the projected results, the impact could be material. | |||||||||||||||||||||||||
Taxes related to the consumption of electricity and natural gas by the utility customers, such as fuel, energy, or other similar taxes, are components of the tariff rates charged by PHI’s utility subsidiaries and, as such, are billed to customers and recorded in Operating revenue. Accruals for the remittance of these taxes are recorded in Other taxes. | |||||||||||||||||||||||||
Pepco Energy Services Revenue | |||||||||||||||||||||||||
Revenue for Pepco Energy Services’ energy savings performance construction business is recognized using the percentage-of-completion method which recognizes revenue as work is completed on its contracts. Revenues from its operation and maintenance activities and measurement and verification activities in its energy savings business are recognized when earned. | |||||||||||||||||||||||||
Taxes Assessed by a Governmental Authority on Revenue-Producing Transactions | |||||||||||||||||||||||||
Taxes included in PHI’s gross revenues were $346 million, $356 million and $378 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Accounting for Derivatives | |||||||||||||||||||||||||
PHI and its subsidiaries may use derivative instruments primarily to manage risk associated with commodity prices and interest rates. Risk management policies are determined by PHI’s Corporate Risk Management Committee (CRMC). The CRMC monitors interest rate fluctuation, commodity price fluctuation and credit risk exposure, and sets risk management policies that establish limits on unhedged risk. | |||||||||||||||||||||||||
PHI accounts for its derivative activities in accordance with FASB guidance on derivatives and hedging. Derivatives are recorded on the consolidated balance sheets as Derivative assets or Derivative liabilities and measured at fair value. | |||||||||||||||||||||||||
Changes in the fair value of derivatives held by DPL that do not qualify for hedge accounting or are not designated as hedges are presented on the consolidated statements of (loss) income as Fuel and purchased energy expense or Operating revenue, respectively. Changes in the fair value of derivatives held by DPL are deferred as regulatory assets or liabilities under the accounting guidance for regulated operations. | |||||||||||||||||||||||||
The gain or loss on a derivative that qualifies as a cash flow hedge of an exposure to variable cash flows of a forecasted transaction is initially recorded in accumulated other comprehensive loss (AOCL) (a separate component of equity) to the extent that the hedge is effective and is subsequently reclassified into earnings, in the same category as the item being hedged, when the gain or loss from the forecasted transaction occurs. If it is probable that a forecasted transaction will not occur, the deferred gain or loss in AOCL is immediately reclassified to earnings. Gains or losses related to any ineffective portion of cash flow hedges are also recognized in earnings immediately. | |||||||||||||||||||||||||
Changes in the fair value of derivatives designated as fair value hedges, as well as changes in the fair value of the hedged asset, liability or firm commitment, are recorded in the consolidated statements of (loss) income. | |||||||||||||||||||||||||
The impact of derivatives that are marked to market through current earnings, the ineffective portion of cash flow hedges, and the portion of fair value hedges that flows to current earnings are presented on a net basis in the consolidated statements of (loss) income as Operating revenue or as Fuel and purchased energy expense. When a hedging gain or loss is realized, it is presented on a net basis in the same line item as the underlying item being hedged. Unrealized derivative gains and losses are presented gross on the consolidated balance sheets except where contractual netting agreements are in place with individual counterparties. | |||||||||||||||||||||||||
The fair value of derivatives is determined using quoted exchange prices where available. For instruments that are not traded on an exchange, pricing services and external broker quotes may also be used to determine fair value. For some custom and complex instruments, internal models use market-based information when external broker quotes are not available. For certain long-dated instruments, broker or exchange data are extrapolated, or capacity prices are forecasted, for future periods where information is limited. Models are also used to estimate volumes for certain transactions. | |||||||||||||||||||||||||
PHI may enter into master netting arrangements to mitigate credit risk related to its derivatives. Under FASB guidance on offsetting of balance sheet accounts (ASC 210-20), amounts recognized for derivative assets and liabilities and the fair value amounts recognized for any related collateral positions executed with the same counterparty under such master netting agreements are offset. | |||||||||||||||||||||||||
See Note (13), “Derivative Instruments and Hedging Activities,” for more information about the types of derivatives employed by PHI, the components of any unrealized and realized gains and losses and Note (14), “Fair Value Disclosures,” for the methodologies used to value them. | |||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||
PHI recognizes compensation expense for stock-based awards, modifications or cancellations based on the grant-date fair value. Compensation expense is recognized over the requisite service period. A deferred tax asset and deferred tax benefit are also recognized concurrently with compensation expense for the tax effect of the deduction of stock options and restricted stock awards, which are deductible only upon exercise and vesting. | |||||||||||||||||||||||||
Historically, PHI’s compensation awards had included both time-based restricted stock awards that vest over a three-year service period and performance-based restricted stock units that were earned based on performance over a three-year period. Beginning in 2011, stock-based compensation awards have been granted primarily in the form of restricted stock units. The compensation expense associated with these awards is calculated based on the estimated fair value of the awards at the grant date and is recognized over the service or performance period. | |||||||||||||||||||||||||
PHI estimated the fair value of stock option awards on the date of grant using the Black-Scholes-Merton option pricing model. This model used assumptions related to expected term, expected volatility, expected dividend yield, and the risk-free interest rate. PHI used historical data to estimate award exercises and employee terminations within the valuation model; groups of employees that have similar historical exercise behavior were considered separately for valuation purposes. | |||||||||||||||||||||||||
PHI’s current policy is to issue new shares to satisfy vested awards of restricted stock units. | |||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
PHI and the majority of its subsidiaries file a consolidated federal income tax return. Federal income taxes are allocated among PHI and the subsidiaries included in its consolidated group pursuant to a written tax sharing agreement, which was approved by the Securities and Exchange Commission (SEC) in 2002 in connection with the establishment of PHI as a public utility holding company. Under this tax sharing agreement, PHI’s consolidated federal income tax liability is allocated based upon PHI’s and its subsidiaries’ separate taxable income or loss amounts. | |||||||||||||||||||||||||
The consolidated financial statements include current and deferred income taxes. Current income taxes represent the amount of tax expected to be reported on PHI’s and its subsidiaries’ federal and state income tax returns. Deferred income tax assets and liabilities represent the tax effects of temporary differences between the financial statement basis and tax basis of existing assets and liabilities, and they are measured using presently enacted tax rates. See Note (11), “Income Taxes,” for a listing of primary deferred tax assets and liabilities. The portions of Pepco’s, DPL’s and ACE’s deferred tax liabilities applicable to their utility operations that have not been recovered from utility customers represent income taxes recoverable in the future and are included in Regulatory Assets on the consolidated balance sheets. See Note (7), “Regulatory Matters – Regulatory Assets and Regulatory Liabilities,” for additional information. | |||||||||||||||||||||||||
PHI recognizes interest on underpayments and overpayments of income taxes, interest on uncertain tax positions and tax-related penalties in income tax expense. Deferred income tax expense generally represents the net change during the reporting period in the net deferred tax liability and deferred recoverable income taxes. | |||||||||||||||||||||||||
Investment tax credits are amortized to income over the useful lives of the related property. | |||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
Cash and cash equivalents include cash on hand, cash invested in money market funds and commercial paper held with original maturities of three months or less. | |||||||||||||||||||||||||
Restricted Cash Equivalents | |||||||||||||||||||||||||
The Restricted cash equivalents included in Current assets and the Restricted cash equivalents included in Other assets consist of (i) cash held as collateral that is restricted from use for general corporate purposes and (ii) cash equivalents that are specifically segregated based on management’s intent to use such cash equivalents for a particular purpose. The classification as current or non-current conforms to the classification of the related liabilities. | |||||||||||||||||||||||||
Accounts Receivable and Allowance for Uncollectible Accounts | |||||||||||||||||||||||||
PHI’s Accounts receivable balances primarily consist of customer accounts receivable arising from the sale of goods and services to customers within PHI’s service territories, other accounts receivable, and accrued unbilled revenue. Accrued unbilled revenue represents revenue earned in the current period but not billed to the customer until a future date (usually within one month after the receivable is recorded). | |||||||||||||||||||||||||
PHI maintains an allowance for uncollectible accounts and changes in the allowance are recorded as an adjustment to Other operation and maintenance expense in the consolidated statements of (loss) income. PHI determines the amount of the allowance based on specific identification of material amounts at risk by customer and maintains a reserve based on its historical collection experience. The adequacy of this allowance is assessed on a quarterly basis by evaluating all known factors, such as the aging of the receivables, historical collection experience, the economic and competitive environment and changes in the creditworthiness of its customers. Accounts receivable are written off in the period in which the receivable is deemed uncollectible and collection efforts have been exhausted. Recoveries of Accounts receivable previously written off are recorded when it is probable they will be recovered. Although PHI believes its allowance is adequate, it cannot anticipate with any certainty the changes in the financial condition of its customers. As a result, PHI records adjustments to the allowance for uncollectible accounts in the period in which the new information that requires an adjustment to the reserve becomes known. | |||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||
Inventory is valued at the lower of cost or market value. Included in Inventories are generation, transmission and distribution materials and supplies, natural gas and fuel oil. | |||||||||||||||||||||||||
PHI utilizes the weighted average cost method of accounting for inventory items. Under this method, an average price is determined for the quantity of units acquired at each price level and is applied to the ending quantity to calculate the total ending inventory balance. Materials and supplies are recorded in Inventory when purchased and then expensed or capitalized to plant, as appropriate, when installed. | |||||||||||||||||||||||||
The cost of natural gas, including transportation costs, is included in Inventory when purchased and charged to Fuel and Purchased Energy expense when used. | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
Goodwill represents the excess of the purchase price of an acquisition over the fair value of the net assets acquired at the acquisition date. PHI tests its goodwill for impairment annually as of November 1 and whenever an event occurs or circumstances change in the interim that would more likely than not (that is, a greater than 50% chance) reduce the estimated fair value of a reporting unit below the carrying amount of its net assets. Factors that may result in an interim impairment test include, but are not limited to: a change in the identified reporting units; an adverse change in business conditions; a protracted decline in PHI’s stock price causing market capitalization to fall significantly below book value; an adverse regulatory action; or an impairment of long-lived assets in the reporting unit. PHI performed its most recent annual impairment test as of November 1, 2013, and its goodwill was not impaired as described in Note (6), “Goodwill.” | |||||||||||||||||||||||||
Regulatory Assets and Regulatory Liabilities | |||||||||||||||||||||||||
The operations of Pepco are regulated by the District of Columbia Public Service Commission (DCPSC) and the Maryland Public Service Commission (MPSC). The operations of DPL are regulated by the Delaware Public Service Commission (DPSC) and the MPSC. DPL’s interstate transportation and wholesale sale of natural gas are regulated by the Federal Energy Regulatory Commission (FERC). The operations of ACE are regulated by the New Jersey Board of Public Utilities (NJBPU). The transmission of electricity by Pepco, DPL and ACE is regulated by FERC. | |||||||||||||||||||||||||
The FASB guidance on regulated operations (ASC 980) applies to Power Delivery. It allows regulated entities, in appropriate circumstances, to defer the income statement impact of certain costs that are expected to be recovered in future rates through the establishment of regulatory assets and defer certain revenues that are expected to be refunded to customers through the establishment of regulatory liabilities. Management’s assessment of the probability of recovery of regulatory assets requires judgment and interpretation of laws, regulatory commission orders and other factors. If management subsequently determines, based on changes in facts or circumstances, that a regulatory asset is not probable of recovery, then the regulatory asset would be eliminated through a charge to earnings. | |||||||||||||||||||||||||
Effective June 2007, the MPSC approved a bill stabilization adjustment (BSA) mechanism for retail customers of Pepco and DPL. Effective November 2009, the DCPSC approved a BSA for Pepco’s retail customers. For customers to whom the BSA applies, Pepco and DPL recognize distribution revenue based on an approved distribution charge per customer. From a revenue recognition standpoint, the BSA has the effect of decoupling the distribution revenue recognized in a reporting period from the amount of power delivered during that period. Pursuant to this mechanism, Pepco and DPL recognize either (i) a positive adjustment equal to the amount by which revenue from Maryland and the District of Columbia retail distribution sales falls short of the revenue that Pepco and DPL are entitled to earn based on the approved distribution charge per customer, or (ii) a negative adjustment equal to the amount by which revenue from such distribution sales exceeds the revenue that Pepco and DPL are entitled to earn based on the approved distribution charge per customer (a Revenue Decoupling Adjustment). A net positive Revenue Decoupling Adjustment is recorded as a regulatory asset and a net negative Revenue Decoupling Adjustment is recorded as a regulatory liability. | |||||||||||||||||||||||||
Leasing Activities | |||||||||||||||||||||||||
Pepco Holdings’ lease transactions include plant, office space, equipment, software, vehicles and elements of power purchase agreements (PPAs). In accordance with FASB guidance on leases (ASC 840), these leases are classified as either leveraged leases, operating leases or capital leases. | |||||||||||||||||||||||||
Leveraged Leases | |||||||||||||||||||||||||
Income from investments in leveraged lease transactions, in which PHI is an equity participant, was accounted for using the financing method. In accordance with the financing method, investments in leased property were recorded as a receivable from the lessee to be recovered through the collection of future rentals. Income was recognized over the life of the lease at a constant rate of return on the positive net investment. Each quarter, PHI reviewed the carrying value of each lease, which included a review of the underlying financial assumptions, the timing and collectibility of cash flows, and the credit quality of the lessee. Changes to the underlying assumptions, if any, were accounted for in accordance with FASB guidance on leases and reflected in the carrying value of the lease effective for the quarter within which they occurred. | |||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||
An operating lease in which PHI or a subsidiary is the lessee generally results in a level income statement charge over the term of the lease, reflecting the rental payments required by the lease agreement. If rental payments are not made on a straight-line basis, PHI’s policy is to recognize rent expense on a straight-line basis over the lease term unless another systematic and rational allocation basis is more representative of the time pattern in which the leased property is physically employed. | |||||||||||||||||||||||||
Capital Leases | |||||||||||||||||||||||||
For ratemaking purposes, capital leases in which PHI or a subsidiary is the lessee are treated as operating leases; therefore, in accordance with FASB guidance on regulated operations (ASC 980), the amortization of the leased asset is based on the recovery of rental payments through customer rates. Investments in equipment under capital leases are stated at cost, less accumulated depreciation. Depreciation is recorded on a straight-line basis over the equipment’s estimated useful life. | |||||||||||||||||||||||||
Arrangements Containing a Lease | |||||||||||||||||||||||||
PPAs contain a lease if the arrangement conveys the right to control the use of property, plant or equipment. If so, PHI determines the appropriate lease accounting classification. | |||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||
Property, plant and equipment is recorded at original cost, including labor, materials, asset retirement costs and other direct and indirect costs including capitalized interest. The carrying value of Property, plant and equipment is evaluated for impairment whenever circumstances indicate the carrying value of those assets may not be recoverable. Upon retirement, the cost of regulated property, net of salvage, is charged to Accumulated depreciation. For non-regulated property, the cost and accumulated depreciation of the property, plant and equipment retired or otherwise disposed of are removed from the related accounts and included in the determination of any gain or loss on disposition. | |||||||||||||||||||||||||
The annual provision for depreciation on electric and natural gas property, plant and equipment is computed on a straight-line basis using composite rates by classes of depreciable property. Accumulated depreciation is charged with the cost of depreciable property retired, less salvage and other recoveries. Non-operating and other property is generally depreciated on a straight-line basis over the useful lives of the assets. The table below provides system-wide composite annual depreciation rates for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
Transmission and | Generation | ||||||||||||||||||||||||
Distribution | |||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Pepco | 2.2 | % | 2.5 | % | 2.6 | % | — | — | — | ||||||||||||||||
DPL | 2.6 | % | 2.7 | % | 2.8 | % | — | — | — | ||||||||||||||||
ACE | 2.8 | % | 3 | % | 3 | % | — | — | — | ||||||||||||||||
Pepco Energy Services (a) | — | — | — | 0.4 | % | 6.4 | % | 10.2 | % | ||||||||||||||||
(a) | Percentages reflect accelerated depreciation of the Benning Road and Buzzard Point generating facilities retired during 2012. | ||||||||||||||||||||||||
In 2010, subsidiaries of PHI received awards from the U.S. Department of Energy (DOE) under the American Recovery and Reinvestment Act of 2009. Pepco was awarded $149 million from DOE to fund a portion of the costs incurred for the implementation of an advanced metering infrastructure (AMI) system (a system that collects, measures and analyzes energy usage data from advanced digital meters known as smart meters), direct load control, distribution automation and communications infrastructure in its Maryland and District of Columbia service territories. ACE was awarded $19 million from DOE to fund a portion of the costs incurred for the implementation of direct load control, distribution automation and communications infrastructure in its New Jersey service territory. PHI has elected to recognize the award proceeds as a reduction in the carrying value of the assets acquired rather than grant income over the service period. | |||||||||||||||||||||||||
Long-Lived Asset Impairment Evaluation | |||||||||||||||||||||||||
PHI evaluates long-lived assets to be held and used, such as generating property and equipment, and real estate, for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Examples of such events or changes include a significant decrease in the market price of a long-lived asset or a significant adverse change in the manner in which an asset is being used or its physical condition. A long-lived asset to be held and used is written down to its estimated fair value if the expected future undiscounted cash flow from the asset is less than its carrying value. | |||||||||||||||||||||||||
For long-lived assets held for sale, an impairment loss is recognized to the extent that the asset’s carrying value exceeds its estimated fair value including costs to sell. | |||||||||||||||||||||||||
Capitalized Interest and Allowance for Funds Used During Construction | |||||||||||||||||||||||||
In accordance with FASB guidance on regulated operations (ASC 980), PHI’s utility subsidiaries can capitalize the capital costs of financing the construction of plant and equipment as allowance for funds used during construction (AFUDC). This results in the debt portion of AFUDC being recorded as a reduction of Interest expense and the equity portion of AFUDC being recorded as an increase to Other income in the accompanying consolidated statements of (loss) income. | |||||||||||||||||||||||||
Pepco Holdings recorded AFUDC for borrowed funds of $7 million, $7 million and $11 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Pepco Holdings recorded amounts for the equity component of AFUDC of $11 million, $14 million and $15 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Amortization of Debt Issuance and Reacquisition Costs | |||||||||||||||||||||||||
Pepco Holdings defers and amortizes debt issuance costs and long-term debt premiums and discounts over the lives of the respective debt issuances. When PHI utility subsidiaries refinance existing debt or redeem existing debt, any unamortized premiums, discounts and debt issuance costs, as well as debt redemption costs, are classified as Regulatory assets and are amortized over the life of the original or new issue. | |||||||||||||||||||||||||
Asset Removal Costs | |||||||||||||||||||||||||
In accordance with FASB guidance, asset removal costs are recorded by PHI utility subsidiaries as Regulatory liabilities. At December 31, 2013 and 2012, $275 million and $324 million, respectively, of asset removal costs are included in Regulatory liabilities in the accompanying consolidated balance sheets. | |||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | |||||||||||||||||||||||||
PHI sponsors the PHI Retirement Plan, a non-contributory, defined benefit pension plan that covers substantially all employees of Pepco, DPL, ACE and certain employees of other PHI subsidiaries. PHI also provides supplemental retirement benefits to certain eligible executives and key employees through nonqualified retirement plans and provides certain postretirement health care and life insurance benefits for eligible retired employees. Most employees hired after January 1, 2005 will not have retiree health care coverage. | |||||||||||||||||||||||||
Net periodic benefit cost is included in Other operation and maintenance expense, net of the portion of the net periodic benefit cost capitalized as part of the cost of labor for internal construction projects. After intercompany allocations, the three utility subsidiaries are responsible for substantially all of the total PHI net periodic benefit cost. | |||||||||||||||||||||||||
PHI accounts for the PHI Retirement Plan, the nonqualified retirement plans, and the retirement health care and life insurance benefit plans in accordance with FASB guidance on retirement benefits (ASC 715). | |||||||||||||||||||||||||
See Note (9), “Pension and Other Postretirement Benefits,” for additional information. | |||||||||||||||||||||||||
Reclassifications and Adjustments | |||||||||||||||||||||||||
Certain prior period amounts have been reclassified in order to conform to the current period presentation. The following adjustments have been recorded and are not considered material individually or in the aggregate to either the current period or prior period financial results: | |||||||||||||||||||||||||
Income Tax Expense Related to Continuing Operations | |||||||||||||||||||||||||
During 2013, Pepco recorded certain adjustments to correct prior period errors related to income taxes. These adjustments resulted from the completion of additional analysis of deferred tax balances and resulted in an increase in Income tax expense of $4 million, for the year ended December 31, 2013. | |||||||||||||||||||||||||
During 2011, PHI recorded adjustments to correct certain income tax errors related to prior periods associated with the interest on uncertain tax positions. The adjustment resulted in an increase in Income tax expense of $2 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
Pepco Energy Services Derivative Accounting Adjustment | |||||||||||||||||||||||||
During 2011, PHI recorded an adjustment associated with an increase in the value of certain derivatives from October 1, 2010 to December 31, 2010, which had been erroneously recorded in other comprehensive income at December 31, 2010. This adjustment resulted in a decrease in Loss from discontinued operations, net of income taxes of $1 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
DPL Operating Revenue Adjustment | |||||||||||||||||||||||||
During 2012, DPL recorded an adjustment to correct an overstatement of unbilled revenue in its natural gas distribution business related to prior periods. The adjustment resulted in a decrease in Operating revenue of $1 million for the year ended December 31, 2012. | |||||||||||||||||||||||||
DPL Default Electricity Supply Revenue and Cost Adjustments | |||||||||||||||||||||||||
During 2011, DPL recorded adjustments to correct certain errors associated with the accounting for Default Electricity Supply revenue and costs. These adjustments primarily arose from the under-recognition of allowed returns on the cost of working capital and resulted in a pre-tax decrease in Other operation and maintenance expense of $11 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
ACE BGS Deferred Electric Service Costs Adjustments | |||||||||||||||||||||||||
In 2012, ACE recorded an adjustment to correct errors associated with its calculation of deferred electric service costs. This adjustment resulted in an increase of $3 million to deferred electric service costs, all of which relates to periods prior to 2012. | |||||||||||||||||||||||||
Revision to Prior Period Financial Statements | |||||||||||||||||||||||||
PCI Deferred Income Tax Liability Adjustment | |||||||||||||||||||||||||
Since 1999, PCI had not recorded a deferred tax liability related to a temporary difference between the financial reporting basis and the tax basis of an investment in a wholly owned partnership. In the second quarter of 2013, PHI re-evaluated this accounting treatment and found it to be in error, requiring an adjustment related to prior periods. PHI determined that the cumulative adjustment required, representing a charge to earnings of $32 million, related to a period prior to the year ended December 31, 2009 (the earliest period for which selected consolidated financial data is presented in the table entitled “Selected Financial Data” in Part II, Item 6 of this Annual Report on Form 10-K). Consistent with PHI’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, the accompanying consolidated financial statements reflect the correction of this error as an adjustment to shareholders’ equity for the earliest period presented. The adjustment to correct the error did not affect PHI’s consolidated statements of (loss) income, comprehensive (loss) income and cash flows for each of the three years in the period ended December 31, 2013, and only affected PHI’s reported balances of deferred income tax liabilities and retained earnings as reflected in the consolidated balance sheets as of December 31, 2013 and 2012 and the reported balances of retained earnings and total equity as reflected in the consolidated statements of equity for each of the three years in the period ended December 31, 2013. The adjustment is not considered to be material to PHI’s reported balances of retained earnings and total equity reflected in the PHI consolidated financial statements included in this Annual Report on Form 10-K. The table below illustrates the effects of the revision on reported balances in PHI’s consolidated financial statements. | |||||||||||||||||||||||||
As Filed | Adjustment | As Revised | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Deferred income tax liabilities, net | $ | 3,176 | $ | 32 | $ | 3,208 | |||||||||||||||||||
Total deferred credits | 4,819 | (a) | 32 | 4,851 | |||||||||||||||||||||
Retained earnings | 1,109 | (32 | ) | 1,077 | |||||||||||||||||||||
Total equity | 4,446 | (32 | ) | 4,414 | |||||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||
Deferred income tax liabilities, net | $ | 2,863 | $ | 32 | $ | 2,895 | |||||||||||||||||||
Total deferred credits | 4,549 | (a) | 32 | 4,581 | |||||||||||||||||||||
Retained earnings | 1,072 | (32 | ) | 1,040 | |||||||||||||||||||||
Total equity | 4,336 | (32 | ) | 4,304 | |||||||||||||||||||||
December 31, 2010 | |||||||||||||||||||||||||
Retained earnings | $ | 1,059 | $ | (32 | ) | $ | 1,027 | ||||||||||||||||||
Total equity | 4,230 | (b) | (32 | ) | 4,198 | ||||||||||||||||||||
(a) | The amount of total deferred credits differs from the amount orginially reported in PHI’s 2012 Form 10-K due to certain reclassifications. | ||||||||||||||||||||||||
(b) | The amount represents total shareholders’ equity, which excludes a non-controlling interest of $6 million. | ||||||||||||||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||||||||||
(2) SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. Although Pepco believes that its estimates and assumptions are reasonable, they are based upon information available to management at the time the estimates are made. Actual results may differ significantly from these estimates. | |||||||||||||||||||||||||
Significant matters that involve the use of estimates include the assessment of contingencies, the calculation of future cash flows and fair value amounts for use in asset impairment evaluations, pension and other postretirement benefits assumptions, the assessment of the probability of recovery of regulatory assets, accrual of storm restoration costs, accrual of unbilled revenue, recognition of changes in network service transmission rates for prior service year costs, accrual of loss contingency liabilities for general and auto liability claims and income tax provisions and reserves. Additionally, Pepco is subject to legal, regulatory, and other proceedings and claims that arise in the ordinary course of its business. Pepco records an estimated liability for these proceedings and claims when it is probable that a loss has been incurred and the loss is reasonably estimable. | |||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
Pepco recognizes revenue upon distribution of electricity to its customers, including unbilled revenue for services rendered, but not yet billed. Pepco’s unbilled revenue was $80 million and $81 million as of December 31, 2013 and 2012, respectively, and these amounts are included in Accounts receivable. Pepco calculates unbilled revenue using an output-based methodology. This methodology is based on the supply of electricity intended for distribution to customers. The unbilled revenue process requires management to make assumptions and judgments about input factors such as customer sales mix, temperature, and estimated line losses (estimates of electricity expected to be lost in the process of its transmission and distribution to customers). The assumptions and judgments are inherently uncertain and susceptible to change from period to period, and if actual results differ from projected results, the impact could be material. | |||||||||||||||||||||||||
Taxes related to the consumption of electricity by its customers, such as fuel, energy, or other similar taxes, are components of Pepco’s tariffs and, as such, are billed to customers and recorded in Operating revenue. Accruals for the remittance of these taxes by Pepco are recorded in Other taxes. | |||||||||||||||||||||||||
Taxes Assessed by a Governmental Authority on Revenue-Producing Transactions | |||||||||||||||||||||||||
Taxes included in Pepco’s gross revenues were $318 million, $324 million and $338 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Long-Lived Assets Impairment Evaluation | |||||||||||||||||||||||||
Pepco evaluates certain long-lived assets to be held and used (for example, equipment and real estate) for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Examples of such events or changes include a significant decrease in the market price of a long-lived asset or a significant adverse change in the manner in which an asset is being used or its physical condition. A long-lived asset to be held and used is written down to its estimated fair value if the expected future undiscounted cash flow from the asset is less than its carrying value. | |||||||||||||||||||||||||
For long-lived assets that can be classified as assets to be disposed of by sale, an impairment loss is recognized to the extent that the asset’s carrying value exceeds its estimated fair value including costs to sell. | |||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
Pepco, as a direct subsidiary of Pepco Holdings, is included in the consolidated federal income tax return of PHI. Federal income taxes are allocated to Pepco based upon the taxable income or loss amounts, determined on a separate return basis. | |||||||||||||||||||||||||
The financial statements include current and deferred income taxes. Current income taxes represent the amount of tax expected to be reported on Pepco’s state income tax returns and the amount of federal income tax allocated from Pepco Holdings. | |||||||||||||||||||||||||
Deferred income tax assets and liabilities represent the tax effects of temporary differences between the financial statement basis and tax basis of existing assets and liabilities and they are measured using presently enacted tax rates. The portion of Pepco’s deferred tax liability applicable to its utility operations that has not been recovered from utility customers represents income taxes recoverable in the future and is included in Regulatory assets on the balance sheets. See Note (6), “Regulatory Matters,” for additional information. | |||||||||||||||||||||||||
Deferred income tax expense generally represents the net change during the reporting period in the net deferred tax liability and deferred recoverable income taxes. | |||||||||||||||||||||||||
Pepco recognizes interest on underpayments and overpayments of income taxes, interest on uncertain tax positions, and tax-related penalties in income tax expense. | |||||||||||||||||||||||||
Investment tax credits are being amortized to income over the useful lives of the related property. | |||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
Cash and cash equivalents include cash on hand, cash invested in money market funds and commercial paper held with original maturities of three months or less. Additionally, deposits in PHI’s money pool, which Pepco and certain other PHI subsidiaries use to manage short-term cash management requirements, are considered cash equivalents. Deposits in the money pool are guaranteed by PHI. PHI deposits funds in the money pool to the extent that the pool has insufficient funds to meet the needs of its participants, which may require PHI to borrow funds for deposit from external sources. | |||||||||||||||||||||||||
Restricted Cash Equivalents | |||||||||||||||||||||||||
The Restricted cash equivalents included in Current assets consist of (i) cash held as collateral that is restricted from use for general corporate purposes and (ii) cash equivalents that are specifically segregated based on management’s intent to use such cash equivalents for a particular purpose. The classification as current conforms to the classification of the related liabilities. | |||||||||||||||||||||||||
Accounts Receivable and Allowance for Uncollectible Accounts | |||||||||||||||||||||||||
Pepco’s Accounts receivable balance primarily consists of customer accounts receivable arising from the sale of goods and services to customers within its service territory, other accounts receivable, and accrued unbilled revenue. Accrued unbilled revenue represents revenue earned in the current period but not billed to the customer until a future date (usually within one month after the receivable is recorded). | |||||||||||||||||||||||||
Pepco maintains an allowance for uncollectible accounts and changes in the allowance are recorded as an adjustment to Other operation and maintenance expense in the statements of income. Pepco determines the amount of the allowance based on specific identification of material amounts at risk by customer and maintains a reserve based on its historical collection experience. The adequacy of this allowance is assessed on a quarterly basis by evaluating all known factors such as the aging of the receivables, historical collection experience, the economic and competitive environment and changes in the creditworthiness of its customers. Accounts receivable are written off in the period in which the receivable is deemed uncollectible and collection efforts have been exhausted. Recoveries of Accounts receivable previously written off are recorded when it is probable they will be recovered. Although Pepco believes its allowance is adequate, it cannot anticipate with any certainty the changes in the financial condition of its customers. As a result, Pepco records adjustments to the allowance for uncollectible accounts in the period in which the new information that requires an adjustment to the reserve becomes known. | |||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||
Included in Inventories are transmission and distribution materials and supplies. Pepco utilizes the weighted average cost method of accounting for inventory items. Under this method, an average price is determined for the quantity of units acquired at each price level and is applied to the ending quantity to calculate the total ending inventory balance. Materials and supplies are recorded in Inventory when purchased and then expensed or capitalized to plant, as appropriate, when installed. | |||||||||||||||||||||||||
Regulatory Assets and Regulatory Liabilities | |||||||||||||||||||||||||
Pepco is regulated by the Maryland Public Service Commission (MPSC) and the District of Columbia Public Service Commission (DCPSC). The transmission of electricity by Pepco is regulated by the Federal Energy Regulatory Commission (FERC). | |||||||||||||||||||||||||
Based on the regulatory framework in which it has operated, Pepco has historically applied, and in connection with its transmission and distribution business continues to apply, the Financial Accounting Standards Board (FASB) guidance on regulated operations (Accounting Standards Codification (ASC) 980). The guidance allows regulated entities, in appropriate circumstances, to defer the income statement impact of certain costs that are expected to be recovered in future rates through the establishment of regulatory assets and defer certain revenues that are expected to be refunded to customers through the establishment of regulatory liabilities. Management’s assessment of the probability of recovery of regulatory assets requires judgment and interpretation of laws, regulatory commission orders and other factors. If management subsequently determines, based on changes in facts or circumstances, that a regulatory asset is not probable of recovery, the regulatory asset would be eliminated through a charge to earnings. | |||||||||||||||||||||||||
Effective June 2007, the MPSC approved a bill stabilization adjustment (BSA) mechanism for retail customers. Effective November 2009, the DCPSC approved a BSA for retail customers. For customers to whom the BSA applies, Pepco recognizes distribution revenue based on an approved distribution charge per customer. From a revenue recognition standpoint, the BSA has the effect of decoupling the distribution revenue recognized in a reporting period from the amount of power delivered during that period. Pursuant to this mechanism, Pepco recognizes either (i) a positive adjustment equal to the amount by which revenue from Maryland and the District of Columbia retail distribution sales falls short of the revenue that Pepco is entitled to earn based on the approved distribution charge per customer, or (ii) a negative adjustment equal to the amount by which revenue from such distribution sales exceeds the revenue that Pepco is entitled to earn based on the approved distribution charge per customer (a Revenue Decoupling Adjustment). A net positive Revenue Decoupling Adjustment is recorded as a regulatory asset and a net negative Revenue Decoupling Adjustment is recorded as a regulatory liability. | |||||||||||||||||||||||||
Investment in Trust | |||||||||||||||||||||||||
Represents assets held in a trust for the benefit of participants in the Pepco Owned Life Insurance plan. | |||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||
Property, plant and equipment is recorded at original cost, including labor, materials, asset retirement costs and other direct and indirect costs including capitalized interest. The carrying value of Property, plant and equipment is evaluated for impairment whenever circumstances indicate the carrying value of those assets may not be recoverable. Upon retirement, the cost of regulated property, net of salvage, is charged to Accumulated depreciation. For additional information regarding the treatment of asset removal obligations, see the “Asset Removal Costs” section included in this Note. | |||||||||||||||||||||||||
The annual provision for depreciation on electric property, plant and equipment is computed on a straight-line basis using composite rates by classes of depreciable property. Accumulated depreciation is charged with the cost of depreciable property retired, less salvage and other recoveries. Non-operating and other property is generally depreciated on a straight-line basis over the useful lives of the assets. The system-wide composite annual depreciation rates for the years ended December 31, 2013, 2012 and 2011 for Pepco’s property were approximately 2.2%, 2.5% and 2.6%, respectively. | |||||||||||||||||||||||||
In 2010, Pepco was awarded $149 million from the U.S. Department of Energy (DOE) to fund a portion of the costs incurred for the implementation of an advanced metering infrastructure system, direct load control, distribution automation and communications infrastructure in its Maryland and District of Columbia service territories. Pepco has elected to recognize the award proceeds as a reduction in the carrying value of the assets acquired rather than grant income over the service period. | |||||||||||||||||||||||||
Capitalized Interest and Allowance for Funds Used During Construction | |||||||||||||||||||||||||
In accordance with FASB guidance on regulated operations (ASC 980), utilities can capitalize the capital costs of financing the construction of plant and equipment as Allowance for Funds Used During Construction (AFUDC). This results in the debt portion of AFUDC being recorded as a reduction of Interest expense and the equity portion of AFUDC being recorded as an increase to Other income in the accompanying statements of income. | |||||||||||||||||||||||||
Pepco recorded AFUDC for borrowed funds of $5 million, $4 million and $8 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Pepco recorded amounts for the equity component of AFUDC of $9 million, $8 million and $12 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Leasing Activities | |||||||||||||||||||||||||
Pepco’s lease transactions include office space, equipment, software and vehicles. In accordance with FASB guidance on leases (ASC 840), these leases are classified as either operating leases or capital leases. | |||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||
An operating lease in which Pepco is the lessee generally results in a level income statement charge over the term of the lease, reflecting the rental payments required by the lease agreement. If rental payments are not made on a straight-line basis, Pepco’s policy is to recognize rent expense on a straight-line basis over the lease term unless another systematic and rational allocation basis is more representative of the time pattern in which the leased property is physically employed. | |||||||||||||||||||||||||
Capital Leases | |||||||||||||||||||||||||
For ratemaking purposes, capital leases in which Pepco is the lessee are treated as operating leases; therefore, in accordance with FASB guidance on regulated operations (ASC 980), the amortization of the leased asset is based on the recovery of rental payments through customer rates. Investments in equipment under capital leases are stated at cost, less accumulated depreciation. Depreciation is recorded on a straight-line basis over the equipment’s estimated useful life. | |||||||||||||||||||||||||
Amortization of Debt Issuance and Reacquisition Costs | |||||||||||||||||||||||||
Pepco defers and amortizes debt issuance costs and long-term debt premiums and discounts over the lives of the respective debt issuances. When refinancing or redeeming existing debt, any unamortized premiums, discounts and debt issuance costs, as well as debt redemption costs, are classified as Regulatory assets and are amortized generally over the life of the new issue. | |||||||||||||||||||||||||
Asset Removal Costs | |||||||||||||||||||||||||
In accordance with FASB guidance, asset removal costs are recorded as regulatory liabilities. At December 31, 2013 and 2012, $102 million and $122 million, respectively, of asset removal costs are included in Regulatory liabilities in the accompanying balance sheets. | |||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | |||||||||||||||||||||||||
Pepco Holdings sponsors the PHI Retirement Plan, a non-contributory, defined benefit pension plan that covers substantially all employees of Pepco and certain employees of other Pepco Holdings subsidiaries. Pepco Holdings also provides supplemental retirement benefits to certain eligible executives and key employees through nonqualified retirement plans and provides certain postretirement health care and life insurance benefits for eligible retired employees. | |||||||||||||||||||||||||
The PHI Retirement Plan is accounted for in accordance with FASB guidance on retirement benefits (ASC 715). | |||||||||||||||||||||||||
Dividend Restrictions | |||||||||||||||||||||||||
All of Pepco’s shares of outstanding common stock are held by PHI, its parent company. In addition to its future financial performance, the ability of Pepco to pay dividends to its parent company is subject to limits imposed by: (i) state corporate laws, which impose limitations on the funds that can be used to pay dividends, and (ii) the prior rights of holders of future preferred stock, if any, and existing and future mortgage bonds and other long-term debt issued by Pepco and any other restrictions imposed in connection with the incurrence of liabilities. Pepco has no shares of preferred stock outstanding. Pepco had approximately $992 million and $888 million of retained earnings available for payment of common stock dividends at December 31, 2013 and 2012, respectively. These amounts represent the total retained earnings balances at those dates. | |||||||||||||||||||||||||
Reclassifications and Adjustments | |||||||||||||||||||||||||
Certain prior period amounts have been reclassified in order to conform to the current period presentation. The following adjustments have been recorded and are not considered material individually or in the aggregate to either the current period or prior period financial results: | |||||||||||||||||||||||||
Income Tax Adjustments | |||||||||||||||||||||||||
During 2013, Pepco recorded certain adjustments to correct prior period errors related to income taxes. These adjustments resulted from the completion of additional analysis of deferred tax balances and resulted in an increase in Income tax expense of $4 million for the year ended December 31, 2013. | |||||||||||||||||||||||||
During 2011, Pepco recorded an adjustment to correct certain income tax errors related to prior periods associated with the interest on uncertain tax positions. The adjustment resulted in an increase in Income tax expense of $1 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||||||||||
(2) SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. Although DPL believes that its estimates and assumptions are reasonable, they are based upon information available to management at the time the estimates are made. Actual results may differ significantly from these estimates. | |||||||||||||||||||||||||
Significant matters that involve the use of estimates include the assessment of contingencies, the calculation of future cash flows and fair value amounts for use in asset and goodwill impairment evaluations, fair value calculations for derivative instruments, pension and other postretirement benefits assumptions, the assessment of the probability of recovery of regulatory assets, accrual of storm restoration costs, accrual of unbilled revenue, recognition of changes in network service transmission rates for prior service year costs, accrual of loss contingency liabilities for general and auto liability claims, and income tax provisions and reserves. Additionally, DPL is subject to legal, regulatory, and other proceedings and claims that arise in the ordinary course of its business. DPL records an estimated liability for these proceedings and claims when it is probable that a loss has been incurred and the loss is reasonably estimable. | |||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
DPL recognizes revenues upon distribution of electricity and natural gas to its customers, including unbilled revenue for services rendered, but not yet billed. DPL’s unbilled revenue was $61 million and $62 million as of December 31, 2013 and 2012, respectively, and these amounts are included in Accounts receivable. DPL calculates unbilled revenue using an output-based methodology. This methodology is based on the supply of electricity or natural gas intended for distribution to customers. The unbilled revenue process requires management to make assumptions and judgments about input factors such as customer sales mix, temperature, and estimated line losses (estimates of electricity and natural gas expected to be lost in the process of its transmission and distribution to customers). The assumptions and judgments are inherently uncertain and susceptible to change from period to period, and if the actual results differ from the projected results, the impact could be material. Revenues from non-regulated electricity and natural gas sales are included in Electric revenues and Natural gas revenues, respectively. | |||||||||||||||||||||||||
Taxes related to the consumption of electricity and natural gas by its customers, such as fuel, energy, or other similar taxes, are components of DPL’s tariffs and, as such, are billed to customers and recorded in Operating revenue. Accruals for the remittance of these taxes by DPL are recorded in Other taxes. | |||||||||||||||||||||||||
Taxes Assessed by a Governmental Authority on Revenue-Producing Transactions | |||||||||||||||||||||||||
Taxes included in DPL’s gross revenues were $17 million, $15 million and $18 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Accounting for Derivatives | |||||||||||||||||||||||||
DPL uses derivative instruments primarily to reduce natural gas commodity price volatility and to limit its customers’ exposure to natural gas price fluctuations under a hedging program approved by the Delaware Public Service Commission (DPSC). Derivatives are recorded in the balance sheets as Derivative assets or Derivative liabilities and measured at fair value. DPL enters physical natural gas contracts as part of the hedging program that qualify as normal purchases or normal sales, which are not required to be recorded in the financial statements until settled. DPL’s capacity contracts are not classified as derivatives. Changes in the fair value of derivatives that are not designated as cash flow hedges are reflected in income. | |||||||||||||||||||||||||
All premiums paid and other transaction costs incurred as part of DPL’s natural gas hedging activity, in addition to all gains and losses related to hedging activities, are fully recoverable through the fuel adjustment clause approved by the DPSC, and are deferred under Financial Accounting Standards Board (FASB) guidance on regulated operations (Accounting Standards Codification (ASC) 980) until recovered. | |||||||||||||||||||||||||
Long-Lived Asset Impairment Evaluation | |||||||||||||||||||||||||
DPL evaluates certain long-lived assets to be held and used (for example, equipment and real estate) for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Examples of such events or changes include a significant decrease in the market price of a long-lived asset or a significant adverse change in the manner in which an asset is being used or its physical condition. A long-lived asset to be held and used is written down to its estimated fair value if the expected future undiscounted cash flow from the asset is less than its carrying value. | |||||||||||||||||||||||||
For long-lived assets that can be classified as assets to be disposed of by sale, an impairment loss is recognized to the extent that the assets’ carrying value exceeds its estimated fair value including costs to sell. | |||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
DPL, as an indirect subsidiary of Pepco Holdings, is included in the consolidated federal income tax return of PHI. Federal income taxes are allocated to DPL based upon the taxable income or loss amounts, determined on a separate return basis. | |||||||||||||||||||||||||
The financial statements include current and deferred income taxes. Current income taxes represent the amount of tax expected to be reported on DPL’s state income tax returns and the amount of federal income tax allocated from Pepco Holdings. | |||||||||||||||||||||||||
Deferred income tax assets and liabilities represent the tax effects of temporary differences between the financial statement basis and tax basis of existing assets and liabilities, and they are measured using presently enacted tax rates. The portion of DPL’s deferred tax liability applicable to its utility operations that has not been recovered from utility customers represents income taxes recoverable in the future and is included in Regulatory assets on the balance sheets. See Note (7), “Regulatory Matters,” for additional information. | |||||||||||||||||||||||||
Deferred income tax expense generally represents the net change during the reporting period in the net deferred tax liability and deferred recoverable income taxes. | |||||||||||||||||||||||||
DPL recognizes interest on underpayments and overpayments of income taxes, interest on uncertain tax positions, and tax-related penalties in income tax expense. | |||||||||||||||||||||||||
Investment tax credits are being amortized to income over the useful lives of the related property. | |||||||||||||||||||||||||
Consolidation of Variable Interest Entities | |||||||||||||||||||||||||
DPL assesses its contractual arrangements with variable interest entities to determine whether it is the primary beneficiary and thereby has to consolidate the entities in accordance with ASC 810. The guidance addresses conditions under which an entity should be consolidated based upon variable interests rather than voting interests. See Note (17), “Variable Interest Entities, “ for additional information. | |||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
Cash and cash equivalents include cash on hand, cash invested in money market funds and commercial paper held with original maturities of three months or less. Additionally, deposits in PHI’s money pool, which DPL and certain other PHI subsidiaries use to manage short-term cash management requirements, are considered cash equivalents. Deposits in the money pool are guaranteed by PHI. PHI deposits funds in the money pool to the extent that the pool has insufficient funds to meet the needs of its participants, which may require PHI to borrow funds for deposit from external sources. | |||||||||||||||||||||||||
Accounts Receivable and Allowance for Uncollectible Accounts | |||||||||||||||||||||||||
DPL’s Accounts receivable balance primarily consists of customer accounts receivable arising from the sale of goods and services to customers within its service territory, other accounts receivable, and accrued unbilled revenue. Accrued unbilled revenue represents revenue earned in the current period but not billed to the customer until a future date (usually within one month after the receivable is recorded). | |||||||||||||||||||||||||
DPL maintains an allowance for uncollectible accounts and changes in the allowance are recorded as an adjustment to Other operation and maintenance expense in the statements of income. DPL determines the amount of the allowance based on specific identification of material amounts at risk by customer and maintains a reserve based on its historical collection experience. The adequacy of this allowance is assessed on a quarterly basis by evaluating all known factors such as the aging of the receivables, historical collection experience, the economic and competitive environment and changes in the creditworthiness of its customers. Accounts receivable are written off in the period in which the receivable is deemed uncollectible and collection efforts have been exhausted. Recoveries of Accounts receivable previously written off are recorded when it is probable they will be recovered. Although DPL believes its allowance is adequate, it cannot anticipate with any certainty the changes in the financial condition of its customers. As a result, DPL records adjustments to the allowance for uncollectible accounts in the period in which the new information that requires an adjustment to the reserve becomes known. | |||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||
Included in Inventories are transmission and distribution materials and supplies and natural gas. DPL utilizes the weighted average cost method of accounting for inventory items. Under this method, an average price is determined for the quantity of units acquired at each price level and is applied to the ending quantity to calculate the total ending inventory balance. Materials and supplies are recorded in Inventory when purchased and then expensed or capitalized to plant, as appropriate, when installed. | |||||||||||||||||||||||||
The cost of natural gas, including transportation costs, is included in Inventory when purchased and charged to Gas purchased expense when used. | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
Goodwill represents the excess of the purchase price of an acquisition over the fair value of the net assets acquired at the acquisition date. DPL tests its goodwill for impairment annually as of November 1 and whenever an event occurs or circumstances change in the interim that would more likely than not (that is, a greater than 50% chance) reduce the estimated fair value of DPL below the carrying amount of its net assets. Factors that may result in an interim impairment test include, but are not limited to: a change in the identified reporting unit; an adverse change in business conditions; an adverse regulatory action; or an impairment of DPL’s long-lived assets. DPL performed its most recent annual impairment test as of November 1, 2013, and its goodwill was not impaired as described in Note (6), “Goodwill.” | |||||||||||||||||||||||||
Regulatory Assets and Regulatory Liabilities | |||||||||||||||||||||||||
Certain aspects of DPL’s business are subject to regulation by the DPSC and the Maryland Public Service Commission (MPSC). The transmission of electricity by DPL is regulated by the Federal Energy Regulatory Commission (FERC). DPL’s interstate transportation and wholesale sale of natural gas are regulated by FERC. | |||||||||||||||||||||||||
Based on the regulatory framework in which it has operated, DPL has historically applied, and in connection with its transmission and distribution business continues to apply, FASB guidance on regulated operations (ASC 980). The guidance allows regulated entities, in appropriate circumstances, to defer the income statement impact of certain costs that are expected to be recovered in future rates through the establishment of regulatory assets and defer certain revenues that are expected to be refunded to customers through the establishment of regulatory liabilities. Management’s assessment of the probability of recovery of regulatory assets requires judgment and interpretation of laws, regulatory commission orders and other factors. If management subsequently determines, based on changes in facts or circumstances, that a regulatory asset is not probable of recovery, the regulatory asset would be eliminated through a charge to earnings. | |||||||||||||||||||||||||
Effective June 2007, the MPSC approved a bill stabilization adjustment (BSA) mechanism for retail customers. For customers to whom the BSA applies, DPL recognizes distribution revenue based on an approved distribution charge per customer. From a revenue recognition standpoint, the BSA has the effect of decoupling the distribution revenue recognized in a reporting period from the amount of power delivered during that period. Pursuant to this mechanism, DPL recognizes either (i) a positive adjustment equal to the amount by which revenue from Maryland retail distribution sales falls short of the revenue that DPL is entitled to earn based on the approved distribution charge per customer, or (ii) a negative adjustment equal to the amount by which revenue from such distribution sales exceeds the revenue that DPL is entitled to earn based on the approved distribution charge per customer (a Revenue Decoupling Adjustment). A net positive Revenue Decoupling Adjustment is recorded as a regulatory asset and a net negative Revenue Decoupling Adjustment is recorded as a regulatory liability. | |||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||
Property, plant and equipment is recorded at original cost, including labor, materials, asset retirement costs and other direct and indirect costs including capitalized interest. The carrying value of Property, plant and equipment is evaluated for impairment whenever circumstances indicate the carrying value of those assets may not be recoverable. Upon retirement, the cost of regulated property, net of salvage, is charged to Accumulated depreciation. For additional information regarding the treatment of asset retirement obligations, see the “Asset Removal Costs” section included in this Note. | |||||||||||||||||||||||||
The annual provision for depreciation on electric and natural gas property, plant and equipment is computed on a straight-line basis using composite rates by classes of depreciable property. Accumulated depreciation is charged with the cost of depreciable property retired, less salvage and other recoveries. Non-operating and other property is generally depreciated on a straight-line basis over the useful lives of the assets. The system-wide composite annual depreciation rates for the years ended December 31, 2013, 2012 and 2011 for DPL’s property were approximately 2.6%, 2.7% and 2.8%, respectively. | |||||||||||||||||||||||||
Capitalized Interest and Allowance for Funds Used During Construction | |||||||||||||||||||||||||
In accordance with FASB guidance on regulated operations (ASC 980), utilities can capitalize the capital costs of financing the construction of plant and equipment as Allowance for Funds Used During Construction (AFUDC). This results in the debt portion of AFUDC being recorded as a reduction of Interest expense and the equity portion of AFUDC being recorded as an increase to Other income in the accompanying statements of income. | |||||||||||||||||||||||||
DPL recorded AFUDC for borrowed funds of $2 million, $2 million and $1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
DPL recorded amounts for the equity component of AFUDC of $2 million, $3 million and $3 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Leasing Activities | |||||||||||||||||||||||||
DPL’s lease transactions include plant, office space, equipment, software and vehicles. In accordance with FASB guidance on leases (ASC 840), these leases are classified as operating leases. | |||||||||||||||||||||||||
An operating lease in which DPL is the lessee generally results in a level income statement charge over the term of the lease, reflecting the rental payments required by the lease agreement. If rental payments are not made on a straight-line basis, DPL’s policy is to recognize rent expense on a straight-line basis over the lease term unless another systematic and rational allocation basis is more representative of the time pattern in which the leased property is physically employed. | |||||||||||||||||||||||||
Amortization of Debt Issuance and Reacquisition Costs | |||||||||||||||||||||||||
DPL defers and amortizes debt issuance costs and long-term debt premiums and discounts over the lives of the respective debt issuances. When refinancing or redeeming existing debt, any unamortized premiums, discounts and debt issuance costs, as well as debt redemption costs, are classified as Regulatory assets and are amortized generally over the life of the original issue. | |||||||||||||||||||||||||
Asset Removal Costs | |||||||||||||||||||||||||
In accordance with FASB guidance, asset removal costs are recorded as regulatory liabilities. At December 31, 2013 and 2012, $173 million and $202 million, respectively, of asset removal costs are included in Regulatory liabilities in the accompanying balance sheets. | |||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | |||||||||||||||||||||||||
Pepco Holdings sponsors the PHI Retirement Plan, a non-contributory, defined benefit pension plan that covers substantially all employees of DPL and certain employees of other Pepco Holdings subsidiaries. Pepco Holdings also provides supplemental retirement benefits to certain eligible executives and key employees through nonqualified retirement plans and provides certain postretirement health care and life insurance benefits for eligible retired employees. | |||||||||||||||||||||||||
The PHI Retirement Plan is accounted for in accordance with FASB guidance on retirement benefits (ASC 715). | |||||||||||||||||||||||||
Dividend Restrictions | |||||||||||||||||||||||||
All of DPL’s shares of outstanding common stock are held by Conectiv, its parent company. In addition to its future financial performance, the ability of DPL to pay dividends to its parent company is subject to limits imposed by: (i) state corporate laws, which impose limitations on the funds that can be used to pay dividends, and (ii) the prior rights of holders of existing and future preferred stock, mortgage bonds and other long-term debt issued by DPL and any other restrictions imposed in connection with the incurrence of liabilities. DPL has no shares of preferred stock outstanding. DPL had approximately $637 million and $578 million of retained earnings available for payment of common stock dividends at December 31, 2013 and 2012, respectively. These amounts represent the total retained earnings balances at those dates. | |||||||||||||||||||||||||
Reclassifications and Adjustments | |||||||||||||||||||||||||
Certain prior period amounts have been reclassified in order to conform to the current period presentation. The following adjustments have been recorded and are not considered material individually or in the aggregate to either the current period or prior period financial results: | |||||||||||||||||||||||||
Natural Gas Operating Revenue Adjustment | |||||||||||||||||||||||||
During 2012, DPL recorded an adjustment to correct an overstatement of unbilled revenue in its natural gas distribution business related to prior periods. The adjustment resulted in a decrease in Operating revenue of $1 million for the year ended December 31, 2012. | |||||||||||||||||||||||||
Default Electricity Supply Revenue and Costs Adjustments | |||||||||||||||||||||||||
During 2011, DPL recorded adjustments to correct certain errors associated with the accounting for Default Electricity Supply revenue and costs. These adjustments primarily arose from the under-recognition of allowed returns on the cost of working capital and resulted in a pre-tax decrease in Other operation and maintenance expense of $11 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||||||||||
(2) SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||||||
Consolidation Policy | |||||||||||||||||||||||||
The accompanying consolidated financial statements include the accounts of ACE and its wholly owned subsidiary Atlantic City Electric Transition Funding, LLC (ACE Funding). All intercompany balances and transactions between subsidiaries have been eliminated. ACE uses the equity method to report investments, corporate joint ventures, partnerships, and affiliated companies where it holds an interest and can exercise significant influence over the operations and policies of the entity. Certain transmission and other facilities currently held are consolidated in proportion to ACE’s percentage interest in the facility. | |||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in the consolidated financial statements and accompanying notes. Although ACE believes that its estimates and assumptions are reasonable, they are based upon information available to management at the time the estimates are made. Actual results may differ significantly from these estimates. | |||||||||||||||||||||||||
Significant matters that involve the use of estimates include the assessment of contingencies, the calculation of future cash flows and fair value amounts for use in asset impairment evaluations, fair value calculations for derivative instruments, pension and other postretirement benefits assumptions, the assessment of the probability of recovery of regulatory assets, accrual of storm restoration costs, accrual of unbilled revenue, recognition of changes in network service transmission rates for prior service year costs, accrual of loss contingency liabilities for general and auto liability claims, and income tax provisions and reserves. Additionally, ACE is subject to legal, regulatory, and other proceedings and claims that arise in the ordinary course of its business. ACE records an estimated liability for these proceedings and claims when it is probable that a loss has been incurred and the loss is reasonably estimable. | |||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
ACE recognizes revenue upon distribution of electricity to its customers, including unbilled revenue for electricity delivered but not yet billed. ACE’s unbilled revenue was $36 million and $39 million as of December 31, 2012 and 2011, respectively, and these amounts are included in Accounts receivable. ACE calculates unbilled revenue using an output-based methodology. This methodology is based on the supply of electricity intended for distribution to customers. The unbilled revenue process requires management to make assumptions and judgments about input factors such as customer sales mix, temperature, and estimated line losses (estimates of electricity expected to be lost in the process of its transmission and distribution to customers). The assumptions and judgments are inherently uncertain and susceptible to change from period to period, and if the actual results differ from the projected results, the impact could be material. | |||||||||||||||||||||||||
Taxes related to the consumption of electricity by its customers are a component of ACE’s tariffs and, as such, are billed to customers and recorded in Operating revenue. Accruals for the remittance of these taxes by ACE are recorded in Other taxes. | |||||||||||||||||||||||||
Taxes Assessed by a Governmental Authority on Revenue-Producing Transactions | |||||||||||||||||||||||||
Taxes included in ACE’s gross revenues were $11 million, $15 million and $22 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Accounting for Derivatives | |||||||||||||||||||||||||
ACE began applying derivative accounting to two of its Standard Offer Capacity Agreements (SOCAs), as of June 30, 2012 because the generators cleared the 2015-2016 PJM Interconnection, LLC (PJM) capacity auction in May 2012. Changes in the fair value of the derivatives embedded in the SOCAs are deferred as regulatory assets or liabilities because the New Jersey Board of Public Utilities (NJBPU) has ordered that ACE is obligated to distribute to or recover from its distribution customers, all payments received or made by ACE, respectively, under the SOCAs. See Note (6), “Regulatory Matters,” for additional information on the SOCAs. | |||||||||||||||||||||||||
Long-Lived Asset Impairment Evaluation | |||||||||||||||||||||||||
ACE evaluates certain long-lived assets to be held and used (for example, equipment and real estate) for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Examples of such events or changes include a significant decrease in the market price of a long-lived asset or a significant adverse change in the manner in which an asset is being used or its physical condition. A long-lived asset to be held and used is written down to its estimated fair value if the expected future undiscounted cash flow from the asset is less than its carrying value. | |||||||||||||||||||||||||
For long-lived assets that can be classified as assets to be disposed of by sale, an impairment loss is recognized to the extent that the asset’s carrying value exceeds its estimated fair value including costs to sell. | |||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
ACE, as an indirect subsidiary of Pepco Holdings, is included in the consolidated federal income tax return of PHI. Federal income taxes are allocated to ACE based upon the taxable income or loss amounts, determined on a separate return basis. | |||||||||||||||||||||||||
The consolidated financial statements include current and deferred income taxes. Current income taxes represent the amount of tax expected to be reported on ACE’s state income tax returns and the amount of federal income tax allocated from Pepco Holdings. | |||||||||||||||||||||||||
Deferred income tax assets and liabilities represent the tax effects of temporary differences between the financial statement basis and tax basis of existing assets and liabilities, and they are measured using presently enacted tax rates. The portion of ACE’s deferred tax liability applicable to its utility operations that has not been recovered from utility customers represents income taxes recoverable in the future and is included in Regulatory assets on the consolidated balance sheets. See Note (6), “Regulatory Matters,” for additional information. | |||||||||||||||||||||||||
Deferred income tax expense generally represents the net change during the reporting period in the net deferred tax liability and deferred recoverable income taxes. | |||||||||||||||||||||||||
ACE recognizes interest on underpayments and overpayments of income taxes, interest on uncertain tax positions, and tax-related penalties in income tax expense. | |||||||||||||||||||||||||
Investment tax credits are being amortized to income over the useful lives of the related property. | |||||||||||||||||||||||||
Consolidation of Variable Interest Entities | |||||||||||||||||||||||||
ACE assesses its contractual arrangements with variable interest entities to determine whether it is the primary beneficiary and thereby has to consolidate the entities in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 810. The guidance addresses conditions under which an entity should be consolidated based upon variable interests rather than voting interests. See Note (16), “Variable Interest Entities,” for additional information. | |||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
Cash and cash equivalents include cash on hand, cash invested in money market funds and commercial paper held with original maturities of three months or less. Additionally, deposits in PHI’s money pool, which ACE and certain other PHI subsidiaries use to manage short-term cash management requirements, are considered cash equivalents. Deposits in the money pool are guaranteed by PHI. PHI deposits funds in the money pool to the extent that the pool has insufficient funds to meet the needs of its participants, which may require PHI to borrow funds for deposit from external sources. | |||||||||||||||||||||||||
Restricted Cash Equivalents | |||||||||||||||||||||||||
The Restricted cash equivalents included in Current assets and the Restricted cash equivalents included in Other assets consist of (i) cash held as collateral that is restricted from use for general corporate purposes and (ii) cash equivalents that are specifically segregated based on management’s intent to use such cash equivalents for a particular purpose. The classification as current or non-current conforms to the classification of the related liabilities. | |||||||||||||||||||||||||
Accounts Receivable and Allowance for Uncollectible Accounts | |||||||||||||||||||||||||
ACE’s Accounts receivable balance primarily consists of customer accounts receivable arising from the sale of goods and services to customers within its service territories, other accounts receivable, and accrued unbilled revenue. Accrued unbilled revenue represents revenue earned in the current period but not billed to the customer until a future date (usually within one month after the receivable is recorded). | |||||||||||||||||||||||||
ACE maintains an allowance for uncollectible accounts and changes in the allowance are recorded as an adjustment to Other operation and maintenance expense in the consolidated statements of income. ACE determines the amount of allowance based on specific identification of material amounts at risk by customer and maintains a reserve based on its historical collection experience. The adequacy of this allowance is assessed on a quarterly basis by evaluating all known factors such as the aging of the receivables, historical collection experience, the economic and competitive environment and changes in the creditworthiness of its customers. Accounts receivable are written off in the period in which the receivable is deemed uncollectible and collection efforts have been exhausted. Recoveries of Accounts receivable previously written off are recorded when it is probable they will be recovered. Although ACE believes its allowance is adequate, it cannot anticipate with any certainty the changes in the financial condition of its customers. As a result, ACE records adjustments to the allowance for uncollectible accounts in the period in which the new information that requires an adjustment to the reserve becomes known. | |||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||
Included in inventories are transmission and distribution materials and supplies. ACE utilizes the weighted average cost method of accounting for inventory items. Under this method, an average price is determined for the quantity of units acquired at each price level and is applied to the ending quantity to calculate the total ending inventory balance. Materials and supplies are recorded in Inventory when purchased and then expensed or capitalized to plant, as appropriate, when installed. | |||||||||||||||||||||||||
Regulatory Assets and Regulatory Liabilities | |||||||||||||||||||||||||
Certain aspects of ACE’s business are subject to regulation by the NJBPU. The transmission of electricity by ACE is regulated by the Federal Energy Regulatory Commission (FERC). | |||||||||||||||||||||||||
Based on the regulatory framework in which it has operated, ACE has historically applied, and in connection with its transmission and distribution business continues to apply, FASB guidance on regulated operations (ASC 980). The guidance allows regulated entities, in appropriate circumstances, to defer the income statement impact of certain costs that are expected to be recovered in future rates through the establishment of regulatory assets and defer certain revenues that are expected to be refunded to customers through the establishment of regulatory liabilities. Management’s assessment of the probability of recovery of regulatory assets requires judgment and interpretation of laws, regulatory commission orders and other factors. If management subsequently determines, based on changes in facts or circumstances, that a regulatory asset is not probable of recovery, the regulatory asset would be eliminated through a charge to earnings. | |||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||
Property, plant and equipment is recorded at original cost, including labor, materials, asset retirement costs and other direct and indirect costs, including capitalized interest. The carrying value of Property, plant and equipment is evaluated for impairment whenever circumstances indicate the carrying value of those assets may not be recoverable. Upon retirement, the cost of regulated property, net of salvage, is charged to accumulated depreciation. | |||||||||||||||||||||||||
The annual provision for depreciation on electric property, plant and equipment is computed on a straight-line basis using composite rates by classes of depreciable property. Accumulated depreciation is charged with the cost of depreciable property retired, less salvage and other recoveries. Non-operating and other property is generally depreciated on a straight-line basis over the useful lives of the assets. The system-wide composite annual depreciation rates for the years ended December 31, 2013, 2012 and 2011 for ACE’s property were approximately 2.8%, 3.0% and 3.0%, respectively. | |||||||||||||||||||||||||
In 2010, ACE was awarded $19 million from the U.S. Department of Energy (DOE) to fund a portion of the costs incurred for the implementation of direct load control, distribution automation and communications infrastructure in its New Jersey service territory. ACE has elected to recognize the award proceeds as a reduction in the carrying value of the assets acquired rather than grant income over the service period. | |||||||||||||||||||||||||
Capitalized Interest and Allowance for Funds Used During Construction | |||||||||||||||||||||||||
In accordance with FASB guidance on regulated operations (ASC 980), utilities can capitalize the capital costs of financing the construction of plant and equipment as Allowance for Funds Used During Construction (AFUDC). This results in the debt portion of AFUDC being recorded as a reduction of Interest expense and the equity portion of AFUDC being recorded as an increase to Other income in the accompanying consolidated statements of income. | |||||||||||||||||||||||||
ACE recorded AFUDC for borrowed funds of less than $1 million for the year ended December 31, 2013, $2 million for the year ended December 31, 2012 and $2 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
ACE recorded amounts for the equity component of AFUDC of less than $1 million for the year ended December 31, 2013, $3 million for the year ended December 31, 2012 and less than $1 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
Leasing Activities | |||||||||||||||||||||||||
ACE’s lease transactions include plant, office space, equipment, software and vehicles. In accordance with FASB guidance on leases (ASC 840), these leases are classified as operating leases. | |||||||||||||||||||||||||
An operating lease in which ACE is the lessee generally results in a level income statement charge over the term of the lease, reflecting the rental payments required by the lease agreement. If rental payments are not made on a straight-line basis, ACE’s policy is to recognize rent expense on a straight-line basis over the lease term unless another systematic and rational allocation basis is more representative of the time pattern in which the leased property is physically employed. | |||||||||||||||||||||||||
Amortization of Debt Issuance and Reacquisition Costs | |||||||||||||||||||||||||
ACE defers and amortizes debt issuance costs and long-term debt premiums and discounts over the lives of the respective debt issuances. When refinancing or redeeming existing debt, any unamortized premiums, discounts and debt issuance costs, as well as debt redemption costs, are classified as regulatory assets and are amortized generally over the life of the original issue. | |||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | |||||||||||||||||||||||||
Pepco Holdings sponsors the PHI Retirement Plan, a non-contributory, defined benefit pension plan that covers substantially all employees of ACE and certain employees of other Pepco Holdings subsidiaries. Pepco Holdings also provides supplemental retirement benefits to certain eligible executives and key employees through nonqualified retirement plans and provides certain postretirement health care and life insurance benefits for eligible retired employees. | |||||||||||||||||||||||||
The PHI Retirement Plan is accounted for in accordance with FASB guidance on retirement benefits (ASC 715). | |||||||||||||||||||||||||
Dividend Restrictions | |||||||||||||||||||||||||
All of ACE’s shares of outstanding common stock are held by Conectiv, its parent company. In addition to its future financial performance, the ability of ACE to pay dividends to its parent company is subject to limits imposed by: (i) state corporate laws, which impose limitations on the funds that can be used to pay dividends and the regulatory requirement that ACE obtain the prior approval of the NJBPU before dividends can be paid if its equity as a percent of its total capitalization, excluding securitization debt, falls below 30%; (ii) the prior rights of holders of existing and future preferred stock, mortgage bonds and other long-term debt issued by ACE and any other restrictions imposed in connection with the incurrence of liabilities; and (iii) certain provisions of the charter of ACE which impose restrictions on payment of common stock dividends for the benefit of preferred stockholders. Currently, the restriction in the ACE charter does not limit its ability to pay common stock dividends. ACE had approximately $190 million and $200 million of retained earnings available for payment of common stock dividends at December 31, 2013 and 2012, respectively. These amounts represent the total retained earnings balances at those dates. | |||||||||||||||||||||||||
Reclassifications and Adjustments | |||||||||||||||||||||||||
Certain prior period amounts have been reclassified in order to conform to the current period presentation. The following adjustments have been recorded and are not considered material individually or in the aggregate to either the current period or prior period financial results: | |||||||||||||||||||||||||
Deferred Electric Service Costs Adjustments | |||||||||||||||||||||||||
In 2012, ACE recorded an adjustment to correct errors associated with its calculation of deferred electric service costs. This adjustment resulted in an increase of $3 million to deferred electric service costs, all of which relates to periods prior to 2012. | |||||||||||||||||||||||||
Income Tax Expense | |||||||||||||||||||||||||
During 2011, ACE completed a reconciliation of its deferred taxes associated with certain regulatory assets and recorded adjustments which resulted in an increase to income tax expense of $1 million for the year ended December 31, 2011. |
Newly_Adopted_Accounting_Stand
Newly Adopted Accounting Standards | 12 Months Ended |
Dec. 31, 2013 | |
Newly Adopted Accounting Standards | ' |
(3) NEWLY ADOPTED ACCOUNTING STANDARDS | |
Balance Sheet (ASC 210) | |
In December 2011, the FASB issued new disclosure requirements for financial assets and financial liabilities, such as derivatives, that are subject to contractual netting arrangements. The new disclosure requirements include information about the gross exposure of the instruments and the net exposure of the instruments under contractual netting arrangements, how the exposures are presented in the financial statements, and the terms and conditions of the contractual netting arrangements. PHI adopted the new guidance during the first quarter of 2013 and concluded it did not have a material impact on its consolidated financial statements. | |
Comprehensive Income (ASC 220) | |
The new disclosure requirements for reclassifications from accumulated other comprehensive income were effective for PHI beginning with its March 31, 2013 consolidated financial statements and required PHI to present additional information about its reclassifications from accumulated other comprehensive income in a single footnote or on the face of its consolidated financial statements. The additional information required to be disclosed includes a presentation of the components of accumulated other comprehensive income that have been reclassified by source (e.g., commodity derivatives), and the income statement line item (e.g., Fuel and purchased energy) affected by the reclassification. PHI has provided the new required disclosures in Note (17), “Accumulated Other Comprehensive Loss.” | |
Potomac Electric Power Co [Member] | ' |
Newly Adopted Accounting Standards | ' |
(3) NEWLY ADOPTED ACCOUNTING STANDARDS | |
None. | |
Delmarva Power & Light Co/De [Member] | ' |
Newly Adopted Accounting Standards | ' |
(3) NEWLY ADOPTED ACCOUNTING STANDARDS | |
Balance Sheet (ASC 210) | |
In December 2011, the FASB issued new disclosure requirements for financial assets and financial liabilities, such as derivatives, that are subject to contractual netting arrangements. The new disclosure requirements include information about the gross exposure of the instruments and the net exposure of the instruments under contractual netting arrangements, how the exposures are presented in the financial statements, and the terms and conditions of the contractual netting arrangements. DPL adopted the new guidance during the first quarter of 2013 and concluded it did not have a material impact on its financial statements. | |
Atlantic City Electric Co [Member] | ' |
Newly Adopted Accounting Standards | ' |
(3) NEWLY ADOPTED ACCOUNTING STANDARDS | |
Balance Sheet (ASC 210) | |
In December 2011, the FASB issued new disclosure requirements for financial assets and financial liabilities, such as derivatives, that are subject to contractual netting arrangements. The new disclosure requirements include information about the gross exposure of the instruments and the net exposure of the instruments under contractual netting arrangements, how the exposures are presented in the financial statements, and the terms and conditions of the contractual netting arrangements. ACE adopted the new guidance during the first quarter of 2013 and concluded it did not have a material impact on its consolidated financial statements. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards, Not Yet Adopted | 12 Months Ended |
Dec. 31, 2013 | |
Recently Issued Accounting Standards, Not Yet Adopted | ' |
(4) RECENTLY ISSUED ACCOUNTING STANDARDS, NOT YET ADOPTED | |
Joint and Several Liability Arrangements (ASC 405) | |
In February 2013, the FASB issued new recognition and disclosure requirements for certain joint and several liability arrangements where the total amount of the obligation is fixed at the reporting date. For arrangements within the scope of this standard, PHI will be required to include in its liabilities the additional amounts it expects to pay on behalf of its co-obligors, if any. PHI will also be required to provide additional disclosures including the nature of the arrangements with its co-obligors, the total amounts outstanding under the arrangements between PHI and its co-obligors, the carrying value of the liability, and the nature and limitations of any recourse provisions that would enable recovery from other entities. | |
The new requirements are effective retroactively beginning on January 1, 2014, with implementation required for prior periods if joint and several liability arrangement obligations exist as of January 1, 2014. PHI does not expect this new guidance to have a material impact on its consolidated financial statements. | |
Income Taxes (ASC 740) | |
In July 2013, the FASB issued new guidance that will require the netting of certain unrecognized tax benefits against a deferred tax asset for a loss or other similar tax carryforward that would apply upon settlement of the uncertain tax position. The new requirements are effective prospectively beginning with PHI’s March 31, 2014 consolidated financial statements for all unrecognized tax benefits existing at the adoption date. Retrospective implementation and early adoption of the guidance are permitted. PHI does not expect this new guidance to have a material impact on its consolidated financial statements. | |
Potomac Electric Power Co [Member] | ' |
Recently Issued Accounting Standards, Not Yet Adopted | ' |
4) RECENTLY ISSUED ACCOUNTING STANDARDS, NOT YET ADOPTED | |
Joint and Several Liability Arrangements (ASC 405) | |
In February 2013, the FASB issued new recognition and disclosure requirements for certain joint and several liability arrangements where the total amount of the obligation is fixed at the reporting date. For arrangements within the scope of this standard, Pepco will be required to include in its liabilities the additional amounts it expects to pay on behalf of its co-obligors, if any. Pepco will also be required to provide additional disclosures including the nature of the arrangements with its co-obligors, the total amounts outstanding under the arrangements between Pepco and its co-obligors, the carrying value of the liability, and the nature and limitations of any recourse provisions that would enable recovery from other entities. | |
The new requirements are effective retroactively beginning on January 1, 2014, with implementation required for prior periods if joint and several liability arrangement obligations exist as of January 1, 2014. Pepco does not expect this new guidance to have a material impact on its financial statements. | |
Income Taxes (ASC 740) | |
In July 2013, the FASB issued new guidance that will require the netting of certain unrecognized tax benefits against a deferred tax asset for a loss or other similar tax carryforward that would apply upon settlement of the uncertain tax position. The new requirements are effective prospectively beginning with Pepco’s March 31, 2014 financial statements for all unrecognized tax benefits existing at the adoption date. Retrospective implementation and early adoption of the guidance are permitted. Pepco does not expect this new guidance to have a material impact on its financial statements. | |
Delmarva Power & Light Co/De [Member] | ' |
Recently Issued Accounting Standards, Not Yet Adopted | ' |
(4) RECENTLY ISSUED ACCOUNTING STANDARDS, NOT YET ADOPTED | |
Joint and Several Liability Arrangements (ASC 405) | |
In February 2013, the FASB issued new recognition and disclosure requirements for certain joint and several liability arrangements where the total amount of the obligation is fixed at the reporting date. For arrangements within the scope of this standard, DPL will be required to include in its liabilities the additional amounts it expects to pay on behalf of its co-obligors, if any. DPL will also be required to provide additional disclosures including the nature of the arrangements with its co-obligors, the total amounts outstanding under the arrangements between DPL and its co-obligors, the carrying value of the liability, and the nature and limitations of any recourse provisions that would enable recovery from other entities. | |
The new requirements are effective retroactively beginning on January 1, 2014, with implementation required for prior periods if joint and several liability arrangement obligations exist as of January 1, 2014. DPL does not expect this new guidance to have a material impact on its financial statements. | |
Income Taxes (ASC 740) | |
In July 2013, the FASB issued new guidance that will require the netting of certain unrecognized tax benefits against a deferred tax asset for a loss or other similar tax carryforward that would apply upon settlement of the uncertain tax position. The new requirements are effective prospectively beginning with DPL’s March 31, 2014 financial statements for all unrecognized tax benefits existing at the adoption date. Retrospective implementation and early adoption of the guidance are permitted. DPL does not expect this new guidance to have a material impact on its financial statements. | |
Atlantic City Electric Co [Member] | ' |
Recently Issued Accounting Standards, Not Yet Adopted | ' |
(4) RECENTLY ISSUED ACCOUNTING STANDARDS, NOT YET ADOPTED | |
Joint and Several Liability Arrangements (ASC 405) | |
In February 2013, the FASB issued new recognition and disclosure requirements for certain joint and several liability arrangements where the total amount of the obligation is fixed at the reporting date. For arrangements within the scope of this standard, ACE will be required to include in its liabilities the additional amounts it expects to pay on behalf of its co-obligors, if any. ACE will also be required to provide additional disclosures including the nature of the arrangements with its co-obligors, the total amounts outstanding under the arrangements between ACE and its co-obligors, the carrying value of the liability, and the nature and limitations of any recourse provisions that would enable recovery from other entities. | |
The new requirements are effective retroactively beginning on January 1, 2014, with implementation required for prior periods if joint and several liability arrangement obligations exist as of January 1, 2014. ACE does not expect this new guidance to have a material impact on its consolidated financial statements. | |
Income Taxes (ASC 740) | |
In July 2013, the FASB issued new guidance that will require the netting of certain unrecognized tax benefits against a deferred tax asset for a loss or other similar tax carryforward that would apply upon settlement of the uncertain tax position. The new requirements are effective prospectively beginning with ACE’s March 31, 2014 consolidated financial statements for all unrecognized tax benefits existing at the adoption date. Retrospective implementation and early adoption of the guidance are permitted. ACE does not expect this new guidance to have a material impact on its consolidated financial statements. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
(5) SEGMENT INFORMATION | |||||||||||||||||
Pepco Holdings’ management has identified its operating segments at December 31, 2013 as Power Delivery and Pepco Energy Services. In the tables below, the Corporate and Other column is included to reconcile the segment data with consolidated data and includes unallocated Pepco Holdings’ (parent company) capital costs, such as financing costs. Through its subsidiary PCI, PHI maintained a portfolio of cross-border energy lease investments. PHI completed the termination of its interests in its cross-border energy lease investments during 2013. As a result, the cross-border energy lease investments, which comprised substantially all of the operations of the former Other Non-Regulated segment, are being accounted for as discontinued operations. The remaining operations of the former Other Non-Regulated segment, which no longer meet the definition of a separate segment for financial reporting purposes, are now included in Corporate and Other. Segment financial information for continuing operations at and for the years ended December 31, 2013, 2012 and 2011, is as follows: | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
(millions of dollars) | |||||||||||||||||
Power | Pepco | Corporate | PHI | ||||||||||||||
Delivery | Energy | and | Consolidated | ||||||||||||||
Services | Other (a) | ||||||||||||||||
Operating Revenue | $ | 4,472 | $ | 203 | $ | (9 | ) | $ | 4,666 | ||||||||
Operating Expenses (b) | 3,828 | 201 | (e) | (31 | ) | 3,998 | |||||||||||
Operating Income | 644 | 2 | 22 | 668 | |||||||||||||
Interest Expense | 228 | 1 | 44 | 273 | |||||||||||||
Other Income | 28 | 3 | 3 | 34 | |||||||||||||
Income Tax Expense (c) | 155 | 1 | 163 | (d) | 319 | ||||||||||||
Net Income (Loss) from Continuing Operations | 289 | 3 | (182 | ) | 110 | ||||||||||||
Total Assets (excluding Assets Held for Disposition) | 13,027 | 335 | 1,485 | 14,847 | |||||||||||||
Construction Expenditures | $ | 1,194 | $ | 4 | $ | 112 | $ | 1,310 | |||||||||
(a) | Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(10) million for Operating Revenue, $(9) million for Operating Expenses and $(5) million for Interest Expense. | ||||||||||||||||
(b) | Includes depreciation and amortization expense of $473 million, consisting of $439 million for Power Delivery, $6 million for Pepco Energy Services and $28 million for Corporate and Other. | ||||||||||||||||
(c) | Includes after-tax interest associated with uncertain and effectively settled tax positions allocated to each member of the consolidated group, including a $12 million interest benefit for Power Delivery and interest expense of $66 million for Corporate and Other. | ||||||||||||||||
(d) | Includes non-cash charges of $101 million representing the establishment of valuation allowances against certain deferred tax assets of PCI included in Corporate and Other. | ||||||||||||||||
(e) | Includes pre-tax impairment losses of $4 million ($3 million after-tax) at Pepco Energy Services associated with a landfill gas-fired electric generation facility. | ||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
(millions of dollars) | |||||||||||||||||
Power | Pepco | Corporate | PHI | ||||||||||||||
Delivery | Energy | and | Consolidated | ||||||||||||||
Services | Other (a) | ||||||||||||||||
Operating Revenue | $ | 4,378 | $ | 256 | (b) | $ | (9 | ) | $ | 4,625 | |||||||
Operating Expenses (c) | 3,847 | 271 | (b)(d) | (34 | ) | 4,084 | |||||||||||
Operating Income (Loss) | 531 | (15 | ) | 25 | 541 | ||||||||||||
Interest Income | 1 | 1 | (1 | ) | 1 | ||||||||||||
Interest Expense | 219 | 2 | 35 | 256 | |||||||||||||
Impairment Losses | — | — | (1 | ) | (1 | ) | |||||||||||
Other Income | 32 | 1 | 3 | 36 | |||||||||||||
Income Tax Expense (Benefit) | 110 | (7 | ) | — | 103 | ||||||||||||
Net Income (Loss) from Continuing Operations | 235 | (8 | ) | (9 | ) | 218 | |||||||||||
Total Assets (excluding Assets Held for Disposition) | 12,149 | 342 | 2,028 | 14,519 | |||||||||||||
Construction Expenditures | $ | 1,168 | $ | 11 | $ | 37 | $ | 1,216 | |||||||||
(a) | Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(11) million for Operating Revenue, $(10) million for Operating Expenses, $(21) million for Interest Income and $(18) million for Interest Expense. | ||||||||||||||||
(b) | Includes $9 million of intra-company revenues (and associated costs) previously eliminated in consolidation which will continue to be recognized from third parties subsequent to the completion of the wind-down of the Pepco Energy Services’ retail electric and natural gas supply businesses. | ||||||||||||||||
(c) | Includes depreciation and amortization expense of $454 million, consisting of $416 million for Power Delivery, $14 million for Pepco Energy Services and $24 million for Corporate and Other. | ||||||||||||||||
(d) | Includes impairment losses of $12 million pre-tax ($7 million after-tax) at Pepco Energy Services associated primarily with investments in landfill gas-fired electric generation facilities, and the combustion turbines at Buzzard Point. | ||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||
(millions of dollars) | |||||||||||||||||
Power | Pepco | Corporate | PHI | ||||||||||||||
Delivery | Energy | and | Consolidated | ||||||||||||||
Services | Other (a) | ||||||||||||||||
Operating Revenue | $ | 4,650 | $ | 330 | (b) | $ | (16 | ) | $ | 4,964 | |||||||
Operating Expenses (c) | 4,150 | 301 | (b) | (40 | ) | 4,411 | |||||||||||
Operating Income | 500 | 29 | 24 | 553 | |||||||||||||
Interest Income | 1 | 1 | (1 | ) | 1 | ||||||||||||
Interest Expense | 208 | 2 | 32 | 242 | |||||||||||||
Impairment Losses | — | — | (5 | ) | (5 | ) | |||||||||||
Other Income (Expenses) | 29 | 2 | (2 | ) | 29 | ||||||||||||
Income Tax Expense (Benefit) (d) | 112 | 8 | (6 | ) | 114 | ||||||||||||
Net Income (Loss) from Continuing Operations | 210 | 22 | (10 | ) | 222 | ||||||||||||
Total Assets (excluding Assets Held for Disposition) | 11,008 | 529 | 1,988 | 13,525 | |||||||||||||
Construction Expenditures | $ | 888 | $ | 14 | $ | 39 | $ | 941 | |||||||||
(a) | Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(16) million for Operating Revenue, $(15) million for Operating Expense, $(22) million for Interest Income and $(22) million for Interest Expense. | ||||||||||||||||
(b) | Includes $15 million of intra-company revenues (and associated costs) previously eliminated in consolidation which will continue to be recognized from third parties subsequent to the completion of the wind-down of the Pepco Energy Services’ retail electric and natural gas supply businesses. | ||||||||||||||||
(c) | Includes depreciation and amortization expense of $425 million, consisting of $394 million for Power Delivery, $16 million for Pepco Energy Services and $15 million for Corporate and Other. | ||||||||||||||||
(d) | Includes tax benefits of $14 million for Power Delivery primarily associated with an interest benefit related to federal tax liabilities. | ||||||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
(5) SEGMENT INFORMATION | |||||||||||||||||
The company operates its business as one regulated utility segment, which includes all of its services as described above. | |||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
(5) SEGMENT INFORMATION | |||||||||||||||||
The company operates its business as one regulated utility segment, which includes all of its services as described above. | |||||||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
(5) SEGMENT INFORMATION | |||||||||||||||||
The company operates its business as one regulated utility segment, which includes all of its services as described above. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2013 | |
Goodwill | ' |
(6) GOODWILL | |
Substantially all of PHI’s goodwill balance as of December 31, 2013 and 2012 was generated by Pepco’s acquisition of Conectiv in 2002 and is allocated entirely to the Power Delivery reporting unit based on the aggregation of its regulated public utility company components for purposes of assessing impairment under FASB guidance on goodwill and other intangibles (ASC 350). | |
In order to estimate the fair value of the Power Delivery reporting unit, PHI uses two valuation techniques: an income approach and a market approach. The income approach estimates fair value based on a discounted future cash flow analysis and a terminal value that is consistent with Power Delivery’s long-term view of the business. This approach uses a discount rate based on the estimated weighted average cost of capital (WACC) for the reporting unit. PHI determines the estimated WACC by considering appropriate market-based information for the cost of equity and cost of debt as of the measurement date. The market approach estimates fair value based on a multiple of earnings before interest, taxes, depreciation, and amortization (EBITDA) that management believes is consistent with EBITDA multiples for comparable utilities. PHI has consistently used this valuation technique to estimate the fair value of Power Delivery. | |
The estimation of fair value is dependent on a number of factors including but not limited to interest rates, growth assumptions, returns on rate base, operating and capital expenditure requirements, and other factors, changes in which could materially affect the results of impairment testing. Assumptions used were consistent with historical experience, including assumptions concerning the recovery of operating costs and capital expenditures and current market-based information. Sensitive, interrelated and uncertain variables that could decrease the estimated fair value of the Power Delivery reporting unit include utility sector market performance, sustained adverse business conditions, changes in forecasted revenues, higher operating and maintenance capital expenditure requirements, a significant increase in the weighted-average cost of capital and other factors. | |
In addition to estimating the fair value of its Power Delivery reporting unit, PHI estimated the fair value of its other reporting units at November 1, 2013. The sum of the estimated fair values of all reporting units was reconciled to PHI’s market capitalization at November 1, 2013 to corroborate PHI’s estimates of the fair values of its reporting units. The sum of the estimated fair values of all reporting units exceeded the market capitalization of PHI at November 1, 2013. PHI believes that the excess of the estimated fair value of PHI’s reporting units as compared to PHI’s market capitalization reflects a control premium that is reasonable when compared to control premiums observed in historical acquisitions in the utility industry and giving consideration to the current economic environment. | |
As of December 31, 2013 and 2012, PHI’s goodwill balance was $1,407 million, which is net of accumulated impairment losses of $18 million. | |
Delmarva Power & Light Co/De [Member] | ' |
Goodwill | ' |
(6) GOODWILL | |
All of DPL’s goodwill was generated by its acquisition of Conowingo Power Company in 1995. In order to estimate the fair value of the DPL reporting unit, DPL uses two valuation techniques: an income approach and a market approach. The income approach estimates fair value based on a discounted future cash flow analysis and a terminal value that is consistent with DPL’s long-term view of the business. This approach uses a discount rate based on the estimated weighted average cost of capital (WACC) for the reporting unit. DPL determines the estimated WACC by considering appropriate market-based information for the cost of equity and cost of debt as of the measurement date . The market approach estimates fair value based on a multiple of earnings before interest, taxes, depreciation, and amortization (EBITDA) that management believes is consistent with EBITDA multiples for comparable utilities. DPL has consistently used this valuation technique to estimate the fair value of the DPL reporting unit. | |
The estimation of fair value is dependent on a number of factors including but not limited to interest rates, growth assumptions, returns on rate base, operating and capital expenditure requirements, and other factors, changes in which could materially affect the results of impairment testing. Assumptions used were consistent with historical experience, including assumptions concerning the recovery of operating costs and capital expenditures and current market-based information. Sensitive, interrelated and uncertain variables that could decrease the estimated fair value of the DPL reporting unit include utility sector market performance, sustained adverse business conditions, changes in forecasted revenues, higher operating and maintenance capital expenditure requirements, a significant increase in the weighted average cost of capital and other factors. | |
As of December 31, 2013 and 2012, DPL’s goodwill balance was $8 million. There are no accumulated impairment losses. |
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Regulatory Matters | ' | ||||||||||||
(7) REGULATORY MATTERS | |||||||||||||
Regulatory Assets and Regulatory Liabilities | |||||||||||||
The components of Pepco Holdings’ regulatory asset and liability balances at December 31, 2013 and 2012 are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Regulatory Assets | |||||||||||||
Pension and OPEB costs | $ | 667 | $ | 1,171 | |||||||||
Securitized stranded costs (a) | 350 | 416 | |||||||||||
Smart Grid costs (a) | 251 | 230 | |||||||||||
Recoverable income taxes | 225 | 177 | |||||||||||
Deferred energy supply costs (a) | 136 | 183 | |||||||||||
Demand-side management costs (a) | 125 | 57 | |||||||||||
Incremental storm restoration costs (a) | 72 | 89 | |||||||||||
MAPP abandonment costs (a) | 68 | 88 | |||||||||||
Deferred debt extinguishment costs (a) | 47 | 53 | |||||||||||
Recoverable workers’ compensation and long-term disability costs | 26 | 31 | |||||||||||
Deferred losses on gas derivatives | — | 4 | |||||||||||
Other | 120 | 115 | |||||||||||
Total Regulatory Assets | $ | 2,087 | $ | 2,614 | |||||||||
Regulatory Liabilities | |||||||||||||
Asset removal costs | $ | 275 | $ | 324 | |||||||||
Deferred energy supply costs | 46 | 78 | |||||||||||
Deferred income taxes due to customers | 45 | 45 | |||||||||||
Deferred gains on gas derivatives | 1 | — | |||||||||||
Excess depreciation reserve | — | 11 | |||||||||||
Other | 32 | 43 | |||||||||||
Total Regulatory Liabilities | $ | 399 | $ | 501 | |||||||||
(a) | A return is generally earned on these deferrals. | ||||||||||||
A description for each category of regulatory assets and regulatory liabilities follows: | |||||||||||||
Pension and OPEB Costs: Represents unrecognized net actuarial losses and prior service cost (credit) for Pepco Holdings’ defined benefit pension and other postretirement benefit (OPEB) plans that are expected to be recovered by Pepco, DPL and ACE in rates. The utilities have historically included these items as a part of its cost of service in its customer rates. This regulatory asset is adjusted at least annually when the funded status of Pepco Holdings’ defined benefit pension and OPEB plans are re-measured. See Note (9), “Pension and Other Postretirement Benefits,” for more information about the components of the unrecognized pension and OPEB costs. | |||||||||||||
Securitized Stranded Costs: Certain contract termination payments under a contract between ACE and an unaffiliated non-utility generator (NUG) and costs associated with the regulated operations of ACE’s electricity generation business are no longer recoverable through customer rates (collectively referred to as “stranded costs”). The stranded costs are amortized over the life of Transition Bonds issued by Atlantic City Electric Transition Funding LLC (ACE Funding) (Transition Bonds) to securitize the recoverability of these stranded costs. These bonds mature between 2014 and 2023. A customer surcharge is collected by ACE to fund principal and interest payments on the Transition Bonds. | |||||||||||||
Smart Grid Costs: Represents AMI costs associated with the installation of smart meters and the early retirement of existing meters throughout Pepco’s and DPL’s service territories that are recoverable from customers. AMI has not been approved by the NJBPU for ACE in New Jersey. | |||||||||||||
Recoverable Income Taxes: Represents amounts recoverable from Power Delivery’s customers for tax benefits applicable to utility operations of Pepco, DPL and ACE previously recognized in income tax expense before the companies were ordered to account for the tax benefits as deferred income taxes. As the temporary differences between the financial statement basis and tax basis of assets reverse, the deferred recoverable balances are reversed. | |||||||||||||
Deferred Energy Supply Costs: The regulatory asset represents primarily deferred costs associated with a net under-recovery of Default Electricity Supply costs incurred by Pepco, DPL and ACE that are probable of recovery in rates. The regulatory liability represents primarily deferred costs associated with a net over-recovery of Default Electricity Supply costs incurred that will be refunded by Pepco, DPL and ACE to customers. | |||||||||||||
Demand-Side Management Costs: Represents recoverable costs associated with customer energy efficiency and conservation programs in Pepco’s and DPL’s Maryland jurisdictions. | |||||||||||||
Incremental Storm Restoration Costs: Represents total incremental storm restoration costs incurred for repair work due to major storm events in 2012 and 2011, including Hurricane Sandy, the June 2012 derecho, Hurricane Irene and the 2011 severe winter storm (for Pepco), that are recoverable from customers in the Maryland and New Jersey jurisdictions. Pepco’s and DPL’s costs related to Hurricane Sandy, the June 2012 derecho, Hurricane Irene and Pepco’s costs related to the 2011 severe winter storm are being amortized and recovered in rates, each over a five-year period. ACE’s costs related to Hurricane Sandy, the June 2012 derecho and Hurricane Irene are being amortized and recovered in rates, each over a three-year period. | |||||||||||||
MAPP Abandonment Costs: Represents the probable recovery of abandoned costs prudently incurred in connection with the Mid-Atlantic Power Pathway (MAPP) project which was terminated by PJM Interconnection, LLC (PJM) on August 24, 2012. The regulatory asset includes the costs of land, land rights, supplies and materials, engineering and design, environmental services, and project management and administration. The regulatory asset will be reduced as the result of sale or alternative use of these assets. As of December 31, 2013, these assets were earning a return of 12.8%. For additional information, see “MAPP Project” discussion below. | |||||||||||||
Deferred Debt Extinguishment Costs: Represents the costs of debt extinguishment of Pepco, DPL and ACE associated with issuances of debt for which recovery through regulated utility rates is considered probable, and if approved, will be amortized to interest expense during the authorized rate recovery period. | |||||||||||||
Recoverable Workers’ Compensation and Long-Term Disability Costs: Represents accrued workers’ compensation and long-term disability costs for Pepco, which are recoverable from customers when actual claims are paid to employees. | |||||||||||||
Deferred Losses on Gas Derivatives: Represents losses associated with hedges of natural gas purchases that are recoverable through the Gas Cost Rate approved by the DPSC. | |||||||||||||
Other: Represents miscellaneous regulatory assets that generally are being amortized over 1 to 20 years. | |||||||||||||
Asset Removal Costs: The depreciation rates for Pepco and DPL include a component for removal costs, as approved by the relevant federal and state regulatory commissions. Accordingly, Pepco and DPL have recorded regulatory liabilities for their estimate of the difference between incurred removal costs and the amount of removal costs recovered through depreciation rates. | |||||||||||||
Deferred Income Taxes Due to Customers: Represents the portions of deferred income tax assets applicable to utility operations of Pepco and DPL that have not been reflected in current customer rates for which future payment to customers is probable. As the temporary differences between the financial statement basis and tax basis of assets reverse, deferred recoverable income taxes are amortized. | |||||||||||||
Deferred Gains on Gas Derivatives: Represents gains associated with hedges of natural gas purchases that will be refunded to customers through the Gas Cost Rate approved by the DPSC. | |||||||||||||
Excess Depreciation Reserve: The excess depreciation reserve was recorded as part of an ACE New Jersey rate case settlement. This excess reserve is the result of a change in estimated depreciable lives and a change in depreciation technique from remaining life to whole life that caused an over-recovery for depreciation expense from customers when the remaining life method had been used. The excess was amortized as a reduction in Depreciation and amortization expense over an 8.25 year period, and expired in 2013. | |||||||||||||
Other: Includes miscellaneous regulatory liabilities. | |||||||||||||
Rate Proceedings | |||||||||||||
The following table shows, for each of PHI’s utility subsidiaries, the electric distribution base rate cases currently pending. Additional information concerning each of these filings is provided in the discussion below. | |||||||||||||
Jurisdiction/Company | Requested Revenue | Requested Return | Filing | Expected Timing | |||||||||
Requirement Increase | on Equity | Date | of Decision | ||||||||||
(millions of dollars) | |||||||||||||
DC – Pepco | $ | 44.8 | (a) | 10.25 | % | 8-Mar-13 | Q1, 2014 | ||||||
DE – DPL (Electric) | $ | 39.0 | (b) | 10.25 | % | 22-Mar-13 | Q2, 2014 | ||||||
MD – Pepco | $ | 43.3 | 10.25 | % | December 4, 2013 | Q3, 2014 | |||||||
(a) | Reflects Pepco’s updated revenue requirement as filed on December 3, 2013. | ||||||||||||
(b) | Reflects DPL’s updated revenue requirement as filed on September 20, 2013. | ||||||||||||
The following table shows, for each of PHI’s utility subsidiaries, the distribution base rate cases completed in 2013. Additional information concerning each of these cases is provided in the discussion below. | |||||||||||||
Jurisdiction/Company | Approved Revenue | Approved Return | Completion | Rate Effective | |||||||||
Requirement Increase | on Equity | Date | Date | ||||||||||
(millions of dollars) | |||||||||||||
NJ – ACE | $ | 25.5 | 9.75 | % | 21-Jun-13 | 1-Jul-13 | |||||||
MD – Pepco | $ | 27.9 | 9.36 | % | 12-Jul-13 | 12-Jul-13 | |||||||
MD – DPL | $ | 15 | 9.81 | % (a) | 30-Aug-13 | September 15, 2013 | |||||||
DE – DPL (Gas) | $ | 6.8 | 9.75 | % (b) | October 22, 2013 | 1-Nov-13 | |||||||
(a) | Return on equity (ROE) has not been determined by any proceeding and is specified only for the purposes of calculating the AFUDC and regulatory asset carrying costs. | ||||||||||||
(b) | ROE has not been determined by any proceeding and is specified only for reporting purposes and for calculating the AFUDC, construction work in process (CWIP), regulatory asset carrying costs and other accounting metrics. | ||||||||||||
Bill Stabilization Adjustment | |||||||||||||
PHI’s utility subsidiaries have proposed in each of their respective jurisdictions the adoption of a mechanism to decouple retail distribution revenue from the amount of power delivered to retail customers. To date: | |||||||||||||
• | A BSA has been approved and implemented for Pepco and DPL electric service in Maryland and for Pepco electric service in the District of Columbia. | ||||||||||||
• | A proposed modified fixed variable rate design (MFVRD) for DPL electric and natural gas service in Delaware was filed in 2009 for consideration by the DPSC and while there was little activity associated with this filing in 2013, the proceeding remains open. | ||||||||||||
• | In New Jersey, a BSA proposed by ACE in 2009 was not approved and there is no BSA proposal currently pending. | ||||||||||||
Under the BSA, customer distribution rates are subject to adjustment (through a credit or surcharge mechanism), depending on whether actual distribution revenue per customer exceeds or falls short of the revenue-per-customer amount approved by the applicable public service commission. The MFVRD proposed in Delaware contemplates a fixed customer charge (i.e., not tied to the customer’s volumetric consumption of electricity or natural gas) to recover the utility’s fixed costs, plus a reasonable rate of return. | |||||||||||||
Delaware | |||||||||||||
Electric Distribution Base Rates | |||||||||||||
On March 22, 2013, DPL submitted an application with the DPSC to increase its electric distribution base rates. The filing seeks approval of an annual rate increase of approximately $39 million (as adjusted by DPL on September 20, 2013), based on a requested ROE of 10.25%. The requested rate increase seeks to recover expenses associated with DPL’s ongoing investments in reliability enhancement improvements and efforts to maintain safe and reliable service. The DPSC suspended the full proposed increase and, as permitted by state law, DPL implemented an interim increase of $2.5 million on June 1, 2013, subject to refund and pending final DPSC approval. On October 8, 2013, the DPSC approved DPL’s request to implement an additional interim increase of $25.1 million, effective on October 22, 2013, bringing the total interim rates in effect subject to refund to $27.6 million. A final DPSC decision is expected by the second quarter of 2014. | |||||||||||||
Forward Looking Rate Plan | |||||||||||||
On October 2, 2013, DPL filed a multi-year rate plan, referred to as the Forward Looking Rate Plan (FLRP). As proposed, the FLRP would provide for annual electric distribution base rate increases over a four-year period in the aggregate amount of approximately $56 million. The FLRP as proposed provides the opportunity to achieve estimated earned ROEs of 7.41% and 8.80% in years one and two, respectively, and 9.75% in both years three and four of the plan. | |||||||||||||
In addition, DPL proposed that as part of the FLRP, in order to provide a higher minimum required standard of reliability for DPL’s customers than that to which DPL is currently subject, the standards by which DPL’s reliability is measured would be made more stringent in each year of the FLRP. In addition, DPL has offered to refund an aggregate of $500,000 to customers in each year of the FLRP that it fails to meet the proposed stricter minimum reliability standards. | |||||||||||||
On October 22, 2013, the DPSC opened a docket for the purpose of reviewing the details of the FLRP, but stated that it would not address the FLRP until the pending electric distribution base rate case discussed above was concluded. DPL expects that the FLRP will be updated and re-filed at the conclusion of the electric distribution base rate case. A schedule for the FLRP docket has not yet been established. | |||||||||||||
Gas Distribution Base Rates | |||||||||||||
On December 7, 2012, DPL submitted an application with the DPSC to increase its natural gas distribution base rates. The filing sought approval of an annual rate increase of approximately $12.0 million (as adjusted by DPL on July 15, 2013), based on a requested ROE of 10.25%. The requested rate increase sought to recover expenses associated with DPL’s ongoing efforts to maintain safe and reliable gas service. On October 22, 2013, the DPSC approved a settlement entered into on August 27, 2013 by the DPSC Staff, the Delaware Division of the Public Advocate and DPL, which provides for an annual rate increase of $6.8 million. While the approved settlement provided that no understanding was reached concerning the appropriate ROE, it specified that for reporting purposes and for calculating the AFUDC, CWIP, regulatory asset carrying costs and other accounting metrics, the rate of 9.75% should be used. The new rates became effective on November 1, 2013. | |||||||||||||
The approved settlement also provides for a phase-in of the recovery of the deferred costs associated with DPL’s deployment of the interface management unit (IMU). The IMU is part of its AMI and allows for the remote reading of gas meters. Recovery of such costs will occur through base rates over a two-year period, assuming specific milestones are met and pursuant to the following schedule: 50% of the IMU portion of DPL’s AMI will be put into rates on May 1, 2014, and the remainder will be put into rates on March 1, 2015. DPL also agreed in the settlement that its next natural gas distribution base rate application may be filed with the DPSC no earlier than January 1, 2015. | |||||||||||||
Gas Cost Rates | |||||||||||||
DPL makes an annual Gas Cost Rate (GCR) filing with the DPSC for the purpose of allowing DPL to recover natural gas procurement costs through customer rates. On August 28, 2013, DPL made its 2013 GCR filing. The rates proposed in the 2013 GCR filing would result in a GCR decrease of approximately 5.5%. On September 26, 2013, the DPSC issued an order authorizing DPL to place the new rates into effect on November 1, 2013, subject to refund and pending final DPSC approval. | |||||||||||||
District of Columbia | |||||||||||||
On March 8, 2013, Pepco filed an application with the DCPSC to increase its annual electric distribution base rates by approximately $44.8 million (as adjusted by Pepco on December 3, 2013), based on a requested ROE of 10.25%. The requested rate increase seeks to recover expenses associated with Pepco’s ongoing investments in reliability enhancement improvements and efforts to maintain safe and reliable service. Evidentiary hearings were held in November 2013 and a final DCPSC decision is expected in the first quarter of 2014. | |||||||||||||
Maryland | |||||||||||||
DPL Electric Distribution Base Rates | |||||||||||||
On March 29, 2013, DPL submitted an application with the MPSC to increase its electric distribution base rates by approximately $22.8 million, based on a requested ROE of 10.25%. The requested rate increase sought to recover expenses associated with DPL’s ongoing investments in reliability enhancement improvements and efforts to maintain safe and reliable service. DPL also proposed a three-year Grid Resiliency Charge rider for recovery of costs totaling approximately $10.2 million associated with its plan to accelerate investments in electric distribution infrastructure in a condensed timeframe. Acceleration of resiliency improvements was one of several recommendations included in a September 2012 report from Maryland’s Grid Resiliency Task Force (as discussed below under “Resiliency Task Forces”). Specific projects under DPL’s Grid Resiliency Charge plan included accelerating its tree-trimming cycle and upgrading five additional feeders per year for two years. In addition, DPL proposed a reliability performance-based mechanism that would allow DPL to earn up to $500,000 as an incentive for meeting enhanced reliability goals in 2015, but provided for a credit to customers of up to $500,000 in total if DPL did not meet at least the minimum reliability performance targets. DPL requested that any credits or charges would flow through the proposed Grid Resiliency Charge rider. | |||||||||||||
On August 30, 2013, the MPSC issued a final order approving a settlement among DPL, the MPSC staff and the Maryland Office of People’s Counsel (OPC). The approved settlement provides for an annual rate increase of approximately $15 million. While the settlement does not specify an overall ROE, the parties did agree that the ROE for purposes of calculating the AFUDC and regulatory asset carrying costs would be 9.81%. The approved settlement also provides for (i) recovery of storm restoration costs incurred as a result of recent major storm events, including the derecho storm in June 2012 and Hurricane Sandy in October 2012, by amortizing the related deferred operation and maintenance expenses of approximately $6 million over a five-year period with the unamortized balance included in rate base, and (ii) a Grid Resiliency Charge for recovery of costs totaling approximately $4.2 million associated with DPL’s proposed plan to accelerate investments related to certain priority feeders, provided that before implementing the surcharge, DPL provides additional information to the MPSC related to performance objectives, milestones and costs, and makes annual filings with the MPSC thereafter concerning this project, which will permit the MPSC to establish the applicable Grid Resiliency Charge rider for the following year. The approved settlement does not provide for approval of a portion of the Grid Resiliency Charge related to the proposed acceleration of the tree-trimming cycle, or DPL’s proposed reliability performance-based mechanism. The new rates became effective on September 15, 2013. | |||||||||||||
Pepco Electric Distribution Base Rates | |||||||||||||
In December 2011, Pepco submitted an application with the MPSC to increase its electric distribution base rates. The filing sought approval of an annual rate increase of approximately $68.4 million (subsequently reduced by Pepco to $66.2 million), based on a requested ROE of 10.75%. In July 2012, the MPSC issued an order approving an annual rate increase of approximately $18.1 million, based on an ROE of 9.31%. The order also reduced Pepco’s depreciation rates, which lowered annual depreciation and amortization expenses by an estimated $27.3 million. The lower depreciation rates resulted from, among other things, the rebalancing of excess reserves for estimated future removal costs identified in a depreciation study conducted as part of the rate case filing. The identified excess reserves for estimated future removal costs, reported as Regulatory liabilities, were reclassified to Accumulated depreciation among various plant accounts. Among other things, the order additionally authorized Pepco to recover the actual cost of AMI meters installed during the 2011 test year and states that cost recovery for AMI deployment will be allowed in future rate cases in which Pepco demonstrates that the system is cost effective. The new revenue rates and lower depreciation rates were effective on July 20, 2012. The Maryland OPC has sought rehearing on the portion of the order allowing Pepco to recover the costs of AMI meters installed during the test year; that motion remains pending. | |||||||||||||
On November 30, 2012, Pepco submitted an application with the MPSC to increase its electric distribution base rates. The filing sought approval of an annual rate increase of approximately $60.8 million, based on a requested ROE of 10.25%. The requested rate increase sought to recover expenses associated with Pepco’s ongoing investments in reliability enhancement improvements and efforts to maintain safe and reliable service. Pepco also proposed a three-year Grid Resiliency Charge rider for recovery of costs totaling approximately $192 million associated with its plan to accelerate investments in infrastructure in a condensed timeframe. Acceleration of resiliency improvements was one of several recommendations included in a September 2012 report from Maryland’s Grid Resiliency Task Force (as discussed below under “Resiliency Task Forces”). Specific projects under Pepco’s Grid Resiliency Charge plan included acceleration of its tree-trimming cycle, upgrade of 12 additional feeders per year for two years and undergrounding of six distribution feeders. In addition, Pepco proposed a reliability performance-based mechanism that would allow Pepco to earn up to $1 million as an incentive for meeting enhanced reliability goals in 2015, but provided for a credit to customers of up to $1 million in total if Pepco does not meet at least the minimum reliability performance targets. Pepco requested that any credits/charges would flow through the proposed Grid Resiliency Charge rider. | |||||||||||||
On July 12, 2013, the MPSC issued an order related to Pepco’s November 30, 2012 application approving an annual rate increase of approximately $27.9 million, based on an ROE of 9.36%. The order provides for the full recovery of storm restoration costs incurred as a result of recent major storm events, including the derecho storm in June 2012 and Hurricane Sandy in October 2012, by including the related capital costs in the rate base and amortizing the related deferred operation and maintenance expenses of $23.6 million over a five-year period. The order excludes the cost of AMI meters from Pepco’s rate base until such time as Pepco demonstrates the cost effectiveness of the AMI system; as a result, costs for AMI meters incurred with respect to the 2012 test year and beyond will be treated as other incremental AMI costs incurred in conjunction with the deployment of the AMI system that are deferred and on which a return is earned, but only until such cost effectiveness has been demonstrated and such costs are included in rates. However, the MPSC’s July 2012 order in Pepco’s previous electric distribution base rate case, which allowed Pepco to recover the costs of meters installed during the 2011 test year for that case, remains in effect, and the Maryland OPC’s motion for rehearing in that case remains pending. | |||||||||||||
The order also approved a Grid Resiliency Charge for recovery of costs totaling approximately $24.0 million associated with Pepco’s proposed plan to accelerate investments related to certain priority feeders, provided that, before implementing the surcharge, Pepco provides additional information to the MPSC related to performance objectives, milestones and costs, and makes annual filings with the MPSC thereafter concerning this project, which will permit the MPSC to establish the applicable Grid Resiliency Charge rider for each following year. The MPSC did not approve the proposed acceleration of the tree-trimming cycle or the undergrounding of six distribution feeders. The MPSC also rejected Pepco’s proposed reliability performance-based mechanism. The new rates were effective on July 12, 2013. | |||||||||||||
On July 26, 2013, Pepco filed a notice of appeal of the July 12, 2013 order in the Circuit Court for the City of Baltimore. Other parties also have filed notices of appeal, which have been consolidated with Pepco’s appeal. In its memorandum filed with the appeals court, Pepco asserts that the MPSC erred in failing to grant Pepco an adequate ROE, denying a number of other cost recovery mechanisms and limiting Pepco’s test year data to no more than four months of forecasted data in future rate cases. The memoranda filed with the appeals court by the other parties primarily assert that the MPSC erred or acted arbitrarily and capriciously in allowing the recovery of certain costs by Pepco and refusing to reduce Pepco’s rate base by known and measurable accumulated depreciation. | |||||||||||||
On December 4, 2013, Pepco submitted an application with the MPSC to increase its electric distribution base rates. The filing seeks approval of an annual rate increase of approximately $43.3 million, based on a requested ROE of 10.25%. The requested rate increase seeks to recover expenses associated with Pepco’s ongoing investments in reliability enhancement improvements and efforts to maintain safe and reliable service. A decision is expected in the third quarter of 2014. | |||||||||||||
New Jersey | |||||||||||||
Electric Distribution Base Rates | |||||||||||||
On December 11, 2012, ACE submitted an application with the NJBPU, updated on January 4, 2013, to increase its electric distribution base rates by approximately $70.4 million (excluding sales-and-use taxes), based on a requested ROE of 10.25%. This proposed net increase was comprised of (i) a proposed increase to ACE’s distribution rates of approximately $72.1 million and (ii) a net decrease to ACE’s Regulatory Asset Recovery Charge (a customer charge to recover deferred, NJBPU-approved expenses incurred as part of ACE’s public service obligation) in the amount of approximately $1.7 million. The requested rate increase seeks to recover expenses associated with ACE’s ongoing investments in reliability enhancement improvements and efforts to maintain safe and reliable service and to recover system restoration costs associated with the derecho storm in June 2012 and Hurricane Sandy in October 2012. On June 21, 2013, the NJBPU approved a settlement of the parties providing for an increase in ACE’s electric distribution base rates in the amount of $25.5 million, based on an ROE of 9.75%. The base distribution revenue increase includes full recovery of the approximately $70.0 million in incremental storm restoration costs incurred as a result of recent major storm events, including the derecho storm and Hurricane Sandy, by including the related capital costs of approximately $44.2 million in rate base and amortizing the related deferred operation and maintenance expenses of approximately $25.8 million over a three-year period. Rates were effective on July 1, 2013. | |||||||||||||
Update and Reconciliation of Certain Under-Recovered Balances | |||||||||||||
In February 2012 and March 2013, ACE submitted petitions with the NJBPU seeking to reconcile and update (i) charges related to the recovery of above-market costs associated with ACE’s long-term power purchase contracts with the NUGs, (ii) costs related to surcharges for the New Jersey Societal Benefit Program (a statewide public interest program for low income customers) and ACE’s uncollected accounts and (iii) operating costs associated with ACE’s residential appliance cycling program. In June 2012, the NJBPU approved a stipulation of settlement related to ACE’s February 2012 filing, which provided for an overall annual rate increase of $55.3 million that went into effect on July 1, 2012. In May 2013, the NJBPU approved a stipulation of settlement related to ACE’s March 2013 filing, which provided for an overall annual rate increase of $52.2 million (in addition to the $55.3 million approved by the NJBPU in June 2012) that went into effect on June 1, 2013. These rate increases, which primarily provide for the recovery of above-market costs associated with the NUG contracts and will have no effect on ACE’s operating income, were placed into effect provisionally and were subject to a review by the NJBPU of the final underlying costs for reasonableness and prudence. On February 19, 2014, the NJBPU approved a stipulation of settlement for both proceedings, which made final the provisional rates that went into effect on July 1, 2012 and June 1, 2013, respectively. | |||||||||||||
Service Extension Contributions Refund Order | |||||||||||||
On July 19, 2013, in compliance with a 2012 Superior Court of New Jersey Appellate Division (Appellate Division) court decision, the NJBPU released an order requiring utilities to issue refunds to persons or entities that paid non-refundable contributions for utility service extensions to certain areas described as “Areas Not Designated for Growth.” The order is limited to eligible contributions paid between March 20, 2005 and December 20, 2009. ACE is processing the refund requests that meet the eligibility criteria established in the order as they are received. Although ACE believes it received approximately $11 million of contributions between March 20, 2005 and December 20, 2009, it is currently unable to reasonably estimate the amount that it may be required to refund using the eligibility criteria established by the order. At this time, ACE does not expect that any such amount refunded will have a material effect on its consolidated financial condition, results of operations or cash flows, as any amounts that may be refunded will generally increase the value of ACE’s property, plant and equipment and may ultimately be recovered through depreciation and cost of service. It is anticipated that the NJBPU will commence a rulemaking proceeding to further implement the directives of the Appellate Division decision. | |||||||||||||
Generic Consolidated Tax Adjustment Proceeding | |||||||||||||
In January 2013, the NJBPU initiated a generic proceeding to examine whether a consolidated tax adjustment (CTA) should continue to be used, and if so, how it should be calculated in determining a utility’s cost of service. Under the NJBPU’s current policy, when a New Jersey utility is included in a consolidated group income tax return, an allocated amount of any reduction in the consolidated group’s taxes as a result of losses by affiliates is used to reduce the utility’s rate base, upon which the utility earns a return. Consequently, this policy has substantially reduced ACE’s rate base and ACE’s position is that the CTA should be eliminated. A stakeholder process has been initiated by the NJBPU to aid in this examination. No formal schedule has been set for the remainder of the proceeding or for the issuance of a decision. | |||||||||||||
Federal Energy Regulatory Commission | |||||||||||||
On October 17, 2013, the FERC issued a ruling on challenges filed by the Delaware Municipal Electric Corporation, Inc. (DEMEC) to DPL’s 2011 and 2012 annual formula rate updates. In 2006, FERC approved a formula rate for DPL that is incorporated into the PJM tariff. The formula rate establishes the treatment of costs and revenues and the resulting rates for DPL. Pursuant to the protocols approved by FERC and after a period of discovery, interested parties have an opportunity to file challenges regarding the application of the formula rate. The FERC order sets various issues in this proceeding for hearing, including challenges regarding formula rate inputs, deferred income items, prepayments of estimated income taxes, rate base reductions, various administrative and general expenses and the inclusion in rate base of CWIP related to the MAPP project (which has been abandoned). Settlement discussions began in this matter on November 5, 2013 before an administrative law judge at FERC. | |||||||||||||
On December 12, 2013, DEMEC filed a formal challenge to the DPL 2013 annual formula rate update, including a request to consolidate the 2013 challenge with the two prior challenges. This challenge is pending at FERC. PHI cannot predict when a final FERC decision in this proceeding will be issued. | |||||||||||||
On February 27, 2013, the public service commissions and public advocates of the District of Columbia, Maryland, Delaware and New Jersey, as well as DEMEC, filed a joint complaint with FERC against Pepco, DPL and ACE, as well as Baltimore Gas and Electric Company (BGE). The complainants challenged the base ROE and the application of the formula rate process, each associated with the transmission service that PHI’s utilities provide. The complainants support an ROE within a zone of reasonableness of 6.78% and 10.33%, and have argued for a base ROE of 8.7%. The base ROE currently authorized by FERC for PHI’s utilities is (i) 11.3% for facilities placed into service after January 1, 2006, and (ii) 10.8% for facilities placed into service prior to 2006. As currently authorized, the 10.8% base ROE for facilities placed into service prior to 2006 is eligible for a 50-basis-point incentive adder for being a member of a regional transmission organization. PHI, Pepco, DPL and ACE believe the allegations in this complaint are without merit and are vigorously contesting it. On April 3, 2013, Pepco, DPL and ACE filed their answer to this complaint, requesting that FERC dismiss the complaint against them on the grounds that it failed to meet the required burden to demonstrate that the existing rates and protocols are unjust and unreasonable. PHI cannot predict when a final FERC decision in this proceeding will be issued. | |||||||||||||
MPSC New Generation Contract Requirement | |||||||||||||
In September 2009, the MPSC initiated an investigation into whether Maryland electric distribution companies (EDCs) should be required to enter into long-term contracts with entities that construct, acquire or lease, and operate, new electric generation facilities in Maryland. In April 2012, the MPSC issued an order determining that there is a need for one new power plant in the range of 650 to 700 megawatts (MWs) beginning in 2015. The order requires Pepco, DPL and BGE (collectively, the Contract EDCs) to negotiate and enter into a contract with the winning bidder of a competitive bidding process in amounts proportional to their relative SOS loads. Under the contract, the winning bidder will construct a 661 MW natural gas-fired combined cycle generation plant in Waldorf, Maryland, with an expected commercial operation date of June 1, 2015. The order acknowledged the Contract EDCs’ concerns about the requirements of the contract and directed them to negotiate with the winning bidder and submit any proposed changes in the contract to the MPSC for approval. The order further specified that each of the Contract EDCs will recover its costs associated with the contract through surcharges on its respective SOS customers. | |||||||||||||
In April 2012, a group of generating companies operating in the PJM region filed a complaint in the U.S. District Court for the District of Maryland challenging the MPSC’s order on the grounds that it violates the Commerce Clause and the Supremacy Clause of the U.S. Constitution. In May 2012, the Contract EDCs and other parties filed notices of appeal in circuit courts in Maryland requesting judicial review of the MPSC’s order. The Maryland circuit court appeals were consolidated in the Circuit Court for Baltimore City. | |||||||||||||
On April 16, 2013, the MPSC issued an order approving a final form of the contract and directing the Contract EDCs to enter into the contract with the winning bidder in amounts proportional to their relative SOS loads. On June 4, 2013, Pepco and DPL each entered into identical contracts in accordance with the terms of the MPSC’s order; however, under each contract’s terms, it will not become effective, if at all, until all legal proceedings related to these contracts and the actions of the MPSC in the related proceeding have been resolved. | |||||||||||||
On September 30, 2013, the U.S. District Court for the District of Maryland issued a ruling that the MPSC’s April 2012 order violated the Supremacy Clause of the U.S. Constitution by attempting to regulate wholesale prices. In contrast, on October 1, 2013, the Maryland Circuit Court for Baltimore City upheld the MPSC’s orders requiring the Contract EDCs to enter into the contracts. | |||||||||||||
On October 24, 2013, the Federal district court issued an order ruling that the contracts are illegal and unenforceable. The Federal district court order and its associated ruling could impact the state circuit court appeal, to which the Contract EDCs are parties, although such impact, if any, cannot be determined at this time. The Contract EDCs, the Maryland Office of People’s Counsel and one generating company have appealed the Maryland Circuit Court’s decision to the Maryland Court of Special Appeals. In addition, in November 2013 both the winning bidder and the MPSC appealed the Federal district court decision to the U.S. Court of Appeals for the Fourth Circuit. These appeals remain pending. | |||||||||||||
Assuming the contracts, as currently written, were to become effective by the expected commercial operation date of June 1, 2015, PHI continues to believe that Pepco and DPL may be required to account for their proportional share of the contracts as a derivative instrument at fair value with an offsetting regulatory asset because they would recover any payments under the contracts from SOS customers. PHI, Pepco and DPL have concluded that any accounting for these contracts would not be required until all legal proceedings related to these contracts and the actions of the MPSC in the related proceeding have been resolved. | |||||||||||||
PHI, Pepco and DPL continue to evaluate these proceedings to determine, should the contracts be found to be valid and enforceable, (i) the extent of the negative effect that the contracts may have on PHI’s, Pepco’s and DPL’s respective credit metrics, as calculated by independent rating agencies that evaluate and rate PHI, Pepco and DPL and their debt issuances, (ii) the effect on Pepco’s and DPL’s ability to recover their associated costs of the contracts if a significant number of SOS customers elect to buy their energy from alternative energy suppliers, and (iii) the effect of the contracts on the financial condition, results of operations and cash flows of each of PHI, Pepco and DPL. | |||||||||||||
ACE Standard Offer Capacity Agreements | |||||||||||||
In April 2011, ACE entered into three Standard Offer Capacity Agreements (SOCAs) by order of the NJBPU, each with a different generation company, as more fully described in Note (13), “Derivative Instruments and Hedging Activities.” ACE and the other New Jersey EDCs entered into the SOCAs under protest, arguing that the EDCs were denied due process and that the SOCAs violate certain of the requirements under the New Jersey law under which the SOCAs were established (the NJ SOCA Law). On October 22, 2013, in light of the decision of the U.S. District Court for the District of New Jersey described below, the state appeals of the NJBPU implementation orders filed by the EDCs and generators, were dismissed without prejudice subject to the parties exercising their appellate rights in the Federal courts. | |||||||||||||
In February 2011, ACE joined other plaintiffs in an action filed in the U.S. District Court for the District of New Jersey challenging the NJ SOCA Law on the grounds that it violates the Commerce Clause and the Supremacy Clause of the U.S. Constitution. On October 11, 2013, the Federal district court issued a ruling that the NJ SOCA Law is preempted by the Federal Power Act and violates the Supremacy Clause, and is therefore null and void. On October 21, 2013 a joint motion to stay the Federal district court’s decision pending appeal was filed by the NJBPU and one of the SOCA generation companies. In that motion, the NJBPU notified the Federal district court that it would take no action to force implementation of the SOCAs pending the appeal or such other action—such as FERC approval of the SOCAs—that would cure the constitutional issues to the Federal district court’s satisfaction. On October 25, 2013, the Federal district court issued an order denying the joint motion to stay and ruling that the SOCAs are void, invalid and unenforceable. On October 31, 2013, one of the SOCA generation companies filed a notice of appeal of the October 25, 2013 Federal district court decision with the U.S. Court of Appeals for the Third Circuit (the Federal circuit court). On November 8, 2013, the other remaining SOCA generating company filed a motion to intervene in the proceedings and a notice of appeal of the October 25, 2013 Federal district court decision. On November 21, 2013, the NJBPU filed its notice of appeal of the October 25, 2013 Federal district court decision. On November 14, 2013, the Federal circuit court granted the motion to intervene and on December 13, 2013, the Federal circuit court issued an order consolidating the appeals filed by the NJBPU and the SOCA generating companies of the October 25, 2013 Federal district court decision. The matter has been placed on an expedited schedule and appeal proceedings remain pending. The Federal circuit court is tentatively scheduled to hear the appeal on March 27, 2014. | |||||||||||||
One of the three SOCAs was terminated effective July 1, 2013 because of an event of default of the generation company that was a party to the SOCA. The remaining two SOCAs were terminated effective November 19, 2013, as a result of a termination notice delivered by ACE after the Federal district court’s October 25, 2013 decision. | |||||||||||||
In light of the Federal district court order (which has not been stayed pending appeal), ACE derecognized both the derivative assets (liabilities) for the estimated fair value of the SOCAs and the offsetting regulatory liabilities (assets) in the fourth quarter of 2013. | |||||||||||||
Resiliency Task Forces | |||||||||||||
In July 2012, the Maryland governor signed an Executive Order directing his energy advisor, in collaboration with certain state agencies, to solicit input and recommendations from experts on how to improve the resiliency and reliability of the electric distribution system in Maryland. The resulting Grid Resiliency Task Force issued its report in September 2012, in which it made 11 recommendations. The governor forwarded the report to the MPSC in October 2012, urging the MPSC to quickly implement the first four recommendations: (i) strengthen existing reliability and storm restoration regulations; (ii) accelerate the investment necessary to meet the enhanced metrics; (iii) allow surcharge recovery for the accelerated investment; and (iv) implement clearly defined performance metrics into the traditional ratemaking scheme. Pepco’s electric distribution base rate case filed with the MPSC on November 30, 2012 and DPL’s electric distribution base rate case filed with the MPSC on March 29, 2013, each attempted to address the Grid Resiliency Task Force recommendations. In July and August 2013, the MPSC issued orders in the Pepco and DPL Maryland electric distribution base rate cases, respectively, that only partially approved the proposed Grid Resiliency Charge. See “Rate Proceedings – Maryland” above for more information about these base rate cases. | |||||||||||||
In August 2012, the District of Columbia mayor issued an Executive Order establishing the Mayor’s Power Line Undergrounding Task Force (the DC Undergrounding Task Force). The stated purpose of the DC Undergrounding Task Force was to pool the collective resources available in the District of Columbia to produce an analysis of the technical feasibility, infrastructure options and reliability implications of undergrounding new or existing overhead distribution facilities in the District of Columbia. These resources included legislative bodies, regulators, utility personnel, experts and other parties who could contribute in a meaningful way to the DC Undergrounding Task Force. On May 13, 2013, the DC Undergrounding Task Force issued a written recommendation endorsing a $1 billion plan of the DC Undergrounding Task Force to underground 60 of the District of Columbia’s most outage-prone power lines, which lines would be owned and maintained by Pepco. The legislation providing for implementation of the report’s recommendations contemplates that: (i) Pepco would fund approximately $500 million of the $1 billion estimated cost to complete this project, recovering those costs through surcharges on the electric bills of Pepco District of Columbia customers; (ii) $375 million of the undergrounding project cost would be financed by the District of Columbia’s issuance of securitized bonds, which bonds would be repaid through surcharges on the electric bills of Pepco District of Columbia customers (Pepco would not earn a return on or of the cost of the assets funded with the proceeds received from the issuance of the securitized bonds, but ownership and responsibility for the operation and maintenance of such assets would be transferred to Pepco for a nominal amount); and (iii) the remaining amount would be funded through the District of Columbia Department of Transportation’s existing capital projects program. This legislation was approved in the Council of the District of Columbia on February 4, 2014 and is awaiting the signature of the Mayor of the District of Columbia. Once signed by the Mayor and transmitted to Congress, the legislation will undergo a 30-day Congressional review period before becoming law, which is expected to occur in the second quarter of 2014. The final step would be DCPSC approval of the underground project plan and financing orders required by the legislation to establish the customer surcharges contemplated by the legislation, a decision on which is expected during the fourth quarter of 2014. | |||||||||||||
MAPP Project | |||||||||||||
On August 24, 2012, the board of PJM terminated the MAPP project and removed it from PJM’s regional transmission expansion plan. PHI had been directed to construct the MAPP project, a 152-mile high-voltage interstate transmission line, to address the reliability needs of the region’s transmission system. In December 2012, PHI submitted a filing to FERC seeking recovery of approximately $88 million of abandoned MAPP costs over a five-year recovery period. The FERC filing addressed, among other things, the prudence of the recoverable costs incurred, the proposed period over which the abandoned costs are to be amortized and the rate of return on these costs during the recovery period. | |||||||||||||
In February 2013, FERC issued an order concluding that the MAPP project was cancelled for reasons beyond the control of Pepco and DPL, finding that the prudently incurred costs associated with the abandonment of the MAPP project are eligible to be recovered, and setting for hearing and settlement procedures the prudence of the abandoned costs and the amortization period for those costs. | |||||||||||||
On December 18, 2013, PHI submitted a settlement agreement to FERC, which provides for recovery of PHI’s abandoned MAPP costs over a three-year recovery period beginning June 1, 2013. The settlement agreement, which is subject to FERC approval, would resolve all issues concerning the recovery of abandonment costs associated with the cancellation of the MAPP project. PHI cannot predict the timing or results of a final FERC decision in this proceeding. | |||||||||||||
As of December 31, 2013, PHI had a regulatory asset related to the MAPP abandoned costs of approximately $68 million, representing the original filing amount of approximately $88 million of abandoned costs referred to above less: (i) approximately $2 million of disallowed costs written off in 2013; (ii) $4 million of materials transferred to inventories for use on other projects; and (iii) $14 million of amortization expense recorded in 2013. The regulatory asset balance includes the costs of land, land rights, engineering and design, environmental services, and project management and administration. | |||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||
Regulatory Matters | ' | ||||||||||||
(6) REGULATORY MATTERS | |||||||||||||
Regulatory Assets and Regulatory Liabilities | |||||||||||||
The components of Pepco’s regulatory asset and liability balances at December 31, 2013 and 2012 are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Regulatory Assets | |||||||||||||
Smart Grid costs (a) | $ | 168 | $ | 159 | |||||||||
Recoverable income taxes | 107 | 75 | |||||||||||
Demand-side management costs (a) | 98 | 45 | |||||||||||
Incremental storm restoration costs (a) | 37 | 44 | |||||||||||
MAPP abandonment costs (a) | 37 | 50 | |||||||||||
Recoverable workers’ compensation and long-term disability costs | 26 | 31 | |||||||||||
Deferred debt extinguishment costs (a) | 25 | 28 | |||||||||||
Deferred energy supply costs | 6 | 4 | |||||||||||
Other | 59 | 51 | |||||||||||
Total Regulatory Assets | $ | 563 | $ | 487 | |||||||||
Regulatory Liabilities | |||||||||||||
Asset removal costs | $ | 102 | $ | 122 | |||||||||
Other | 11 | 19 | |||||||||||
Total Regulatory Liabilities | $ | 113 | $ | 141 | |||||||||
(a) | A return is generally earned on these deferrals. | ||||||||||||
A description for each category of regulatory assets and regulatory liabilities follows: | |||||||||||||
Smart Grid Costs: Represents advanced metering infrastructure (AMI) costs associated with the installation of smart meters and the early retirement of existing meters throughout Pepco’s service territory that are recoverable from customers. | |||||||||||||
Recoverable Income Taxes: Represents amounts recoverable from Pepco’s customers for tax benefits applicable to utility operations that were previously recognized in income tax expense before the company was ordered to account for the tax benefits as deferred income taxes. As the temporary differences between the financial statement basis and tax basis of assets reverse, the deferred recoverable balances are reversed. | |||||||||||||
Demand-Side Management Costs: Represents recoverable costs associated with customer energy efficiency and conservation programs in Pepco’s Maryland jurisdiction. | |||||||||||||
Incremental Storm Restoration Costs: Represents total incremental storm restoration costs incurred for repair work due to major storm events in 2012 and 2011, including Hurricane Sandy, the June 2012 derecho, Hurricane Irene, and the 2011 severe winter storm, that are recoverable from customers in the Maryland jurisdiction. Pepco’s costs related to Hurricane Sandy, the June 2012 derecho, Hurricane Irene and the 2011 severe winter storm are being amortized and recovered in rates, each over a five-year period. | |||||||||||||
MAPP Abandonment Costs: Represents the probable recovery of abandoned costs prudently incurred in connection with the Mid-Atlantic Power Pathway (MAPP) project which was terminated on August 24, 2012. The regulatory asset includes the costs of land, land rights, supplies and materials, engineering and design, environmental services, and project management and administration. The regulatory asset will be reduced as the result of sale or alternative use of these assets. As of December 31, 2013, these assets were earning a return of 12.8%. For additional information, see “MAPP Project” discussion below. | |||||||||||||
Recoverable Workers’ Compensation and Long-Term Disability Costs: Represents accrued workers’ compensation and long-term disability costs for Pepco, which are recoverable from customers when actual claims are paid to employees. | |||||||||||||
Deferred Debt Extinguishment Costs: Represents the costs of debt extinguishment associated with issuances of debt for which recovery through regulated utility rates is considered probable, and if approved, will be amortized to interest expense during the authorized rate recovery period. | |||||||||||||
Deferred Energy Supply Costs: The regulatory asset represents primarily deferred costs associated with a net under-recovery of Default Electricity Supply costs incurred by Pepco that are probable of recovery in rates. | |||||||||||||
Other: Represents miscellaneous regulatory assets that generally are being amortized over 1 to 20 years. | |||||||||||||
Asset Removal Costs: The depreciation rates for Pepco include a component for removal costs, as approved by the relevant federal and state regulatory commissions. Accordingly, Pepco has recorded regulatory liabilities for its estimate of the difference between incurred removal costs and the amount of removal costs recovered through depreciation rates. | |||||||||||||
Other: Includes miscellaneous regulatory liabilities. | |||||||||||||
Rate Proceedings | |||||||||||||
Bill Stabilization Adjustment | |||||||||||||
Pepco proposed in each of its respective jurisdictions the adoption of a BSA mechanism to decouple retail distribution revenue from the amount of power delivered to retail customers. The BSA proposal has been approved and implemented for Pepco electric service in Maryland and in the District of Columbia. | |||||||||||||
Under the BSA, customer distribution rates are subject to adjustment (through a credit or surcharge mechanism), depending on whether actual distribution revenue per customer exceeds or falls short of the revenue-per-customer amount approved by the applicable public service commission. | |||||||||||||
District of Columbia | |||||||||||||
On March 8, 2013, Pepco filed an application with the DCPSC to increase its annual electric distribution base rates by approximately $44.8 million (as adjusted by Pepco on December 3, 2013), based on a requested ROE of 10.25%. The requested rate increase seeks to recover expenses associated with Pepco’s ongoing investments in reliability enhancement improvements and efforts to maintain safe and reliable service. Evidentiary hearings were held in November 2013 and a final DCPSC decision is expected in the first quarter of 2014. | |||||||||||||
Maryland | |||||||||||||
In December 2011, Pepco submitted an application with the MPSC to increase its electric distribution base rates. The filing sought approval of an annual rate increase of approximately $68.4 million (subsequently reduced by Pepco to $66.2 million), based on a requested ROE of 10.75%. In July 2012, the MPSC issued an order approving an annual rate increase of approximately $18.1 million, based on an ROE of 9.31%. The order also reduced Pepco’s depreciation rates, which lowered annual depreciation and amortization expenses by an estimated $27.3 million. The lower depreciation rates resulted from, among other things, the rebalancing of excess reserves for estimated future removal costs identified in a depreciation study conducted as part of the rate case filing. The identified excess reserves for estimated future removal costs, reported as Regulatory liabilities, were reclassified to Accumulated depreciation among various plant accounts. Among other things, the order additionally authorized Pepco to recover the actual cost of AMI meters installed during the 2011 test year and states that cost recovery for AMI deployment will be allowed in future rate cases in which Pepco demonstrates that the system is cost effective. The new revenue rates and lower depreciation rates were effective on July 20, 2012. The Maryland OPC has sought rehearing on the portion of the order allowing Pepco to recover the costs of AMI meters installed during the test year; that motion remains pending. | |||||||||||||
On November 30, 2012, Pepco submitted an application with the MPSC to increase its electric distribution base rates. The filing sought approval of an annual rate increase of approximately $60.8 million, based on a requested ROE of 10.25%. The requested rate increase sought to recover expenses associated with Pepco’s ongoing investments in reliability enhancement improvements and efforts to maintain safe and reliable service. Pepco also proposed a three-year Grid Resiliency Charge rider for recovery of costs totaling approximately $192 million associated with its plan to accelerate investments in infrastructure in a condensed timeframe. Acceleration of resiliency improvements was one of several recommendations included in a September 2012 report from Maryland’s Grid Resiliency Task Force (as discussed below under “Resiliency Task Forces”). Specific projects under Pepco’s Grid Resiliency Charge plan included acceleration of its tree-trimming cycle, upgrade of 12 additional feeders per year for two years and undergrounding of six distribution feeders. In addition, Pepco proposed a reliability performance-based mechanism that would allow Pepco to earn up to $1 million as an incentive for meeting enhanced reliability goals in 2015, but provided for a credit to customers of up to $1 million in total if Pepco does not meet at least the minimum reliability performance targets. Pepco requested that any credits/charges would flow through the proposed Grid Resiliency Charge rider. | |||||||||||||
On July 12, 2013, the MPSC issued an order related to Pepco’s November 30, 2012 application approving an annual rate increase of approximately $27.9 million, based on an ROE of 9.36%. The order provides for the full recovery of storm restoration costs incurred as a result of recent major storm events, including the derecho storm in June 2012 and Hurricane Sandy in October 2012, by including the related capital costs in the rate base and amortizing the related deferred operation and maintenance expenses of $23.6 million over a five-year period. The order excludes the cost of AMI meters from Pepco’s rate base until such time as Pepco demonstrates the cost effectiveness of the AMI system; as a result, costs for AMI meters incurred with respect to the 2012 test year and beyond will be treated as other incremental AMI costs incurred in conjunction with the deployment of the AMI system that are deferred and on which a return is earned, but only until such cost effectiveness has been demonstrated and such costs are included in rates. However, the MPSC’s July 2012 order in Pepco’s previous electric distribution base rate case, which allowed Pepco to recover the costs of meters installed during the 2011 test year for that case, remains in effect, and the Maryland OPC’s motion for rehearing in that case remains pending. | |||||||||||||
The order also approved a Grid Resiliency Charge for recovery of costs totaling approximately $24.0 million associated with Pepco’s proposed plan to accelerate investments related to certain priority feeders, provided that, before implementing the surcharge, Pepco provides additional information to the MPSC related to performance objectives, milestones and costs, and makes annual filings with the MPSC thereafter concerning this project, which will permit the MPSC to establish the applicable Grid Resiliency Charge rider for each following year. The MPSC did not approve the proposed acceleration of the tree-trimming cycle or the undergrounding of six distribution feeders. The MPSC also rejected Pepco’s proposed reliability performance-based mechanism. The new rates were effective on July 12, 2013. | |||||||||||||
On July 26, 2013, Pepco filed a notice of appeal of the July 12, 2013 order in the Circuit Court for the City of Baltimore. Other parties also have filed notices of appeal, which have been consolidated with Pepco’s appeal. In its memorandum filed with the appeals court, Pepco asserts that the MPSC erred in failing to grant Pepco an adequate ROE, denying a number of other cost recovery mechanisms and limiting Pepco’s test year data to no more than four months of forecasted data in future rate cases. The memoranda filed with the appeals court by the other parties primarily assert that the MPSC erred or acted arbitrarily and capriciously in allowing the recovery of certain costs by Pepco and refusing to reduce Pepco’s rate base by known and measurable accumulated depreciation. | |||||||||||||
On December 4, 2013, Pepco submitted an application with the MPSC to increase its electric distribution base rates. The filing seeks approval of an annual rate increase of approximately $43.3 million, based on a requested ROE of 10.25%. The requested rate increase seeks to recover expenses associated with Pepco’s ongoing investments in reliability enhancement improvements and efforts to maintain safe and reliable service. A decision is expected in the third quarter of 2014. | |||||||||||||
Federal Energy Regulatory Commission | |||||||||||||
On February 27, 2013, the public service commissions and public advocates of the District of Columbia, Maryland, Delaware and New Jersey, as well as the Delaware Municipal Electric Corporation, Inc., filed a joint complaint with the Federal Energy Regulatory Commission (FERC) against Pepco and its affiliates Delmarva Power & Light Company (DPL) and Atlantic City Electric Company (ACE), as well as Baltimore Gas and Electric Company (BGE). The complainants challenged the base ROE and the application of the formula rate process, each associated with the transmission service that Pepco and its utility affiliates provide. The complainants support an ROE within a zone of reasonableness of 6.78% and 10.33%, and have argued for a base ROE of 8.7%. The base ROE currently authorized by FERC for Pepco and its utility affiliates is (i) 11.3% for facilities placed into service after January 1, 2006, and (ii) 10.8% for facilities placed into service prior to 2006. As currently authorized, the 10.8% base ROE for facilities placed into service prior to 2006 is eligible for a 50-basis-point incentive adder for being a member of a regional transmission organization. Pepco believes the allegations in this complaint are without merit and is vigorously contesting it. On April 3, 2013, Pepco filed its answer to this complaint, requesting that FERC dismiss the complaint against it on the grounds that it failed to meet the required burden to demonstrate that the existing rates and protocols are unjust and unreasonable. Pepco cannot predict when a final FERC decision in this proceeding will be issued. | |||||||||||||
MPSC New Generation Contract Requirement | |||||||||||||
In September 2009, the MPSC initiated an investigation into whether Maryland electric distribution companies (EDCs) should be required to enter into long-term contracts with entities that construct, acquire or lease, and operate, new electric generation facilities in Maryland. In April 2012, the MPSC issued an order determining that there is a need for one new power plant in the range of 650 to 700 megawatts (MWs) beginning in 2015. The order requires Pepco, its affiliate DPL and BGE (collectively, the Contract EDCs) to negotiate and enter into a contract with the winning bidder of a competitive bidding process in amounts proportional to their relative Standard Offer Service (SOS) loads. Under the contract, the winning bidder will construct a 661 MW natural gas-fired combined cycle generation plant in Waldorf, Maryland, with an expected commercial operation date of June 1, 2015. The order acknowledged the Contract EDCs’ concerns about the requirements of the contract and directed them to negotiate with the winning bidder and submit any proposed changes in the contract to the MPSC for approval. The order further specified that each of the Contract EDCs will recover its costs associated with the contract through surcharges on its respective SOS customers. | |||||||||||||
In April 2012, a group of generating companies operating in the PJM Interconnection, LLC (PJM) region filed a complaint in the U.S. District Court for the District of Maryland challenging the MPSC’s order on the grounds that it violates the Commerce Clause and the Supremacy Clause of the U.S. Constitution. In May 2012, the Contract EDCs and other parties filed notices of appeal in circuit courts in Maryland requesting judicial review of the MPSC’s order. The Maryland circuit court appeals were consolidated in the Circuit Court for Baltimore City. | |||||||||||||
On April 16, 2013, the MPSC issued an order approving a final form of the contract and directing the Contract EDCs to enter into the contract with the winning bidder in amounts proportional to their relative SOS loads. On June 4, 2013, Pepco and DPL each entered into identical contracts in accordance with the terms of the MPSC’s order; however, under each contract’s terms, it will not become effective, if at all, until all legal proceedings related to these contracts and the actions of the MPSC in the related proceeding have been resolved. | |||||||||||||
On September 30, 2013, the U.S. District Court for the District of Maryland issued a ruling that the MPSC’s April 2012 order violated the Supremacy Clause of the U.S. Constitution by attempting to regulate wholesale prices. In contrast, on October 1, 2013, the Maryland Circuit Court for Baltimore City upheld the MPSC’s orders requiring the Contract EDCs to enter into the contracts. | |||||||||||||
On October 24, 2013, the Federal district court issued an order ruling that the contracts are illegal and unenforceable. The Federal district court order and its associated ruling could impact the state circuit court appeal, to which the Contract EDCs are parties, although such impact, if any, cannot be determined at this time. The Contract EDCs, the Maryland Office of People’s Counsel and one generating company have appealed the Maryland Circuit Court’s decision to the Maryland Court of Special Appeals. In addition, in November 2013 both the winning bidder and the MPSC appealed the Federal district court decision to the U.S. Court of Appeals for the Fourth Circuit. These appeals remain pending. | |||||||||||||
Assuming the contracts, as currently written, were to become effective by the expected commercial operation date of June 1, 2015, Pepco continues to believe that it may be required to account for its proportional share of the contracts as a derivative instrument at fair value with an offsetting regulatory asset because they would recover any payments under the contracts from SOS customers. Pepco has concluded that any accounting for these contracts would not be required until all legal proceedings related to these contracts and the actions of the MPSC in the related proceeding have been resolved. | |||||||||||||
Pepco continues to evaluate these proceedings to determine, should the contracts be found to be valid and enforceable, (i) the extent of the negative effect that the contracts may have on Pepco’s credit metrics, as calculated by independent rating agencies that evaluate and rate Pepco and its debt issuances, (ii) the effect on Pepco’s ability to recover its associated costs of the contracts if a significant number of SOS customers elect to buy their energy from alternative energy suppliers, and (iii) the effect of the contracts on the financial condition, results of operations and cash flows of Pepco. | |||||||||||||
Resiliency Task Forces | |||||||||||||
In July 2012, the Maryland governor signed an Executive Order directing his energy advisor, in collaboration with certain state agencies, to solicit input and recommendations from experts on how to improve the resiliency and reliability of the electric distribution system in Maryland. The resulting Grid Resiliency Task Force issued its report in September 2012, in which it made 11 recommendations. The governor forwarded the report to the MPSC in October 2012, urging the MPSC to quickly implement the first four recommendations: (i) strengthen existing reliability and storm restoration regulations; (ii) accelerate the investment necessary to meet the enhanced metrics; (iii) allow surcharge recovery for the accelerated investment; and (iv) implement clearly defined performance metrics into the traditional ratemaking scheme. Pepco’s electric distribution base rate case filed with the MPSC on November 30, 2012 attempted to address the Grid Resiliency Task Force recommendations. In July 2013, the MPSC issued an order in the Pepco Maryland electric distribution base rate case that only partially approved the proposed Grid Resiliency Charge. See “Rate Proceedings – Maryland” above for more information about the base rate case. | |||||||||||||
In August 2012, the District of Columbia mayor issued an Executive Order establishing the Mayor’s Power Line Undergrounding Task Force (the DC Undergrounding Task Force). The stated purpose of the DC Undergrounding Task Force was to pool the collective resources available in the District of Columbia to produce an analysis of the technical feasibility, infrastructure options and reliability implications of undergrounding new or existing overhead distribution facilities in the District of Columbia. These resources included legislative bodies, regulators, utility personnel, experts and other parties who could contribute in a meaningful way to the DC Undergrounding Task Force. On May 13, 2013, the DC Undergrounding Task Force issued a written recommendation endorsing a $1 billion plan of the DC Undergrounding Task Force to underground 60 of the District of Columbia’s most outage-prone power lines, which lines would be owned and maintained by Pepco. The legislation providing for implementation of the report’s recommendations contemplates that: (i) Pepco would fund approximately $500 million of the $1 billion estimated cost to complete this project, recovering those costs through surcharges on the electric bills of Pepco District of Columbia customers; (ii) $375 million of the undergrounding project cost would be financed by the District of Columbia’s issuance of securitized bonds, which bonds would be repaid through surcharges on the electric bills of Pepco District of Columbia customers (Pepco would not earn a return on or of the cost of the assets funded with the proceeds received from the issuance of the securitized bonds, but ownership and responsibility for the operation and maintenance of such assets would be transferred to Pepco for a nominal amount); and (iii) the remaining amount would be funded through the District of Columbia Department of Transportation’s existing capital projects program. This legislation was approved in the Council of the District of Columbia on February 4, 2014 and is awaiting the signature of the Mayor of the District of Columbia. Once signed by the Mayor and transmitted to Congress, the legislation will undergo a 30-day Congressional review period before becoming law, which is expected to occur in the second quarter of 2014. The final step would be DCPSC approval of the underground project plan and financing orders required by the legislation to establish the customer surcharges contemplated by the legislation, a decision on which is expected during the fourth quarter of 2014. | |||||||||||||
MAPP Project | |||||||||||||
On August 24, 2012, the board of PJM terminated the MAPP project and removed it from PJM’s regional transmission expansion plan. Pepco had been directed to construct the MAPP project, a 152-mile high-voltage interstate transmission line, to address the reliability needs of the region’s transmission system. In December 2012, Pepco submitted a filing to FERC seeking recovery of approximately $50 million of abandoned MAPP costs over a five-year recovery period. The FERC filing addressed, among other things, the prudence of the recoverable costs incurred, the proposed period over which the abandoned costs are to be amortized and the rate of return on these costs during the recovery period. | |||||||||||||
In February 2013, FERC issued an order concluding that the MAPP project was cancelled for reasons beyond the control of Pepco, finding that the prudently incurred costs associated with the abandonment of the MAPP project are eligible to be recovered, and setting for hearing and settlement procedures the prudence of the abandoned costs and the amortization period for those costs. | |||||||||||||
On December 18, 2013, Pepco submitted a settlement agreement to FERC, which provides for recovery of Pepco’s abandoned MAPP costs over a three-year recovery period beginning June 1, 2013. The settlement agreement, which is subject to FERC approval, would resolve all issues concerning the recovery of abandonment costs associated with the cancellation of the MAPP project. Pepco cannot predict the timing or results of a final FERC decision in this proceeding. | |||||||||||||
As of December 31, 2013, Pepco had a regulatory asset related to the MAPP abandoned costs of approximately $37 million, representing the original filing amount of approximately $50 million of abandoned costs referred to above less: (i) approximately $1 million of disallowed costs written off in 2013; (ii) $4 million of materials transferred to inventories for use on other projects; and (iii) $8 million of amortization expense recorded in 2013. The regulatory asset balance includes the costs of land, land rights, engineering and design, environmental services, and project management and administration. | |||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||
Regulatory Matters | ' | ||||||||||||
(7) REGULATORY MATTERS | |||||||||||||
Regulatory Assets and Regulatory Liabilities | |||||||||||||
The components of DPL’s regulatory asset and liability balances at December 31, 2013 and 2012 are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Regulatory Assets | |||||||||||||
Smart Grid costs (a) | $ | 83 | $ | 71 | |||||||||
Recoverable income taxes | 76 | 69 | |||||||||||
MAPP abandonment costs (a) | 31 | 38 | |||||||||||
Demand-side management costs (a) | 27 | 12 | |||||||||||
COPCO acquisition adjustment (a) | 22 | 26 | |||||||||||
Deferred debt extinguishment costs (a) | 13 | 15 | |||||||||||
Deferred energy supply costs (b) | 13 | 13 | |||||||||||
Incremental storm restoration costs (a) | 9 | 11 | |||||||||||
Deferred losses on gas derivatives | — | 4 | |||||||||||
Other | 37 | 29 | |||||||||||
Total Regulatory Assets | $ | 311 | $ | 288 | |||||||||
Regulatory Liabilities | |||||||||||||
Asset removal costs | $ | 173 | $ | 202 | |||||||||
Deferred income taxes due to customers | 37 | 38 | |||||||||||
Deferred energy supply costs | 3 | 6 | |||||||||||
Deferred gains on gas derivatives | 1 | — | |||||||||||
Other | 15 | 12 | |||||||||||
Total Regulatory Liabilities | $ | 229 | $ | 258 | |||||||||
(a) | A return is earned on these deferrals. | ||||||||||||
(b) | A return is generally earned in Delaware on this deferral. | ||||||||||||
A description for each category of regulatory assets and regulatory liabilities follows: | |||||||||||||
Smart Grid Costs: Represents advanced metering infrastructure (AMI) costs associated with the installation of smart meters and the early retirement of existing meters throughout DPL’s service territory that are recoverable from customers. | |||||||||||||
Recoverable Income Taxes: Represents amounts recoverable from DPL’s customers for tax benefits applicable to utility operations that were previously recognized in income tax expense before the company was ordered to account for the tax benefits as deferred income taxes. As the temporary differences between the financial statement basis and tax basis of assets reverse, the deferred recoverable balances are reversed. | |||||||||||||
MAPP Abandonment Costs: Represents the probable recovery of abandoned costs prudently incurred in connection with the Mid-Atlantic Power Pathway (MAPP) project which was terminated on August 24, 2012. The regulatory asset includes the costs of land, land rights, supplies and materials, engineering and design, environmental services, and project management and administration. The regulatory asset will be reduced as the result of sale or alternative use of these assets. As of December 31, 2013, these assets were earning a return of 12.8%. For additional information, see “MAPP Project” discussion below. | |||||||||||||
Demand-Side Management Costs: Represents recoverable costs associated with customer energy efficiency and conservation programs in DPL’s Maryland jurisdiction. | |||||||||||||
COPCO Acquisition Adjustment: On July 19, 2007, the MPSC issued an order which provided for the recovery of a portion of DPL’s goodwill. As a result of this order, $41 million in DPL goodwill was transferred to a regulatory asset. This item is being amortized from August 2007 through August 2018. The return earned is 12.95%. | |||||||||||||
Deferred Debt Extinguishment Costs: Represents the costs of debt extinguishment associated with issuances of debt for which recovery through regulated utility rates is considered probable, and if approved, will be amortized to interest expense during the authorized rate recovery period. | |||||||||||||
Deferred Energy Supply Costs: The regulatory asset represents primarily deferred costs associated with a net under-recovery of Default Electricity Supply costs incurred by DPL that are probable of recovery in rates. The regulatory liability represents primarily deferred costs associated with a net over-recovery of Default Electricity Supply costs incurred that will be refunded by DPL to customers. | |||||||||||||
Incremental Storm Restoration Costs: Represents total incremental storm restoration costs incurred for repair work due to major storm events in 2012 and 2011, including Hurricane Sandy, the June 2012 derecho, and Hurricane Irene, that are recoverable from customers in the Maryland jurisdiction. DPL’s costs related to Hurricane Sandy, the June 2012 derecho and Hurricane Irene are being amortized and recovered in rates, each over a five-year period. | |||||||||||||
Deferred Losses on Gas Derivatives: Represents losses associated with hedges of natural gas purchases that are recoverable through the Gas Cost Rate approved by the DPSC. | |||||||||||||
Other: Represents miscellaneous regulatory assets that generally are being amortized over 1 to 20 years. | |||||||||||||
Asset Removal Costs: The depreciation rates for DPL include a component for removal costs, as approved by the relevant federal and state regulatory commissions. Accordingly, DPL has recorded regulatory liabilities for its estimate of the difference between incurred removal costs and the amount of removal costs recovered through depreciation rates. | |||||||||||||
Deferred Income Taxes Due to Customers: Represents the portions of deferred income tax assets applicable to utility operations of DPL that have not been reflected in current customer rates for which future payment to customers is probable. As the temporary differences between the financial statement basis and tax basis of assets reverse, deferred recoverable income taxes are amortized. | |||||||||||||
Deferred Gains on Gas Derivatives: Represents gains associated with hedges of natural gas purchases that will be refunded to customers through the Gas Cost Rate approved by the DPSC. | |||||||||||||
Other: Includes miscellaneous regulatory liabilities. | |||||||||||||
Rate Proceedings | |||||||||||||
Bill Stabilization Adjustment | |||||||||||||
DPL has proposed in each of its respective jurisdictions the adoption of a mechanism to decouple retail distribution revenue from the amount of power delivered to retail customers. To date: | |||||||||||||
• | A BSA has been approved and implemented for DPL electric service in Maryland. | ||||||||||||
• | A proposed modified fixed variable rate design (MFVRD) for DPL electric and natural gas service in Delaware was filed in 2009 for consideration by the DPSC and while there was little activity associated with this filing in 2013, the proceeding remains open. | ||||||||||||
Under the BSA, customer distribution rates are subject to adjustment (through a credit or surcharge mechanism), depending on whether actual distribution revenue per customer exceeds or falls short of the revenue-per-customer amount approved by the applicable public service commission. The MFVRD proposed in Delaware contemplates a fixed customer charge (i.e., not tied to the customer’s volumetric consumption of electricity or natural gas) to recover the utility’s fixed costs, plus a reasonable rate of return. | |||||||||||||
Delaware | |||||||||||||
Electric Distribution Base Rates | |||||||||||||
On March 22, 2013, DPL submitted an application with the DPSC to increase its electric distribution base rates. The filing seeks approval of an annual rate increase of approximately $39 million (as adjusted by DPL on September 20, 2013), based on a requested return on equity (ROE) of 10.25%. The requested rate increase seeks to recover expenses associated with DPL’s ongoing investments in reliability enhancement improvements and efforts to maintain safe and reliable service. The DPSC suspended the full proposed increase and, as permitted by state law, DPL implemented an interim increase of $2.5 million on June 1, 2013, subject to refund and pending final DPSC approval. On October 8, 2013, the DPSC approved DPL’s request to implement an additional interim increase of $25.1 million, effective on October 22, 2013, bringing the total interim rates in effect subject to refund to $27.6 million. A final DPSC decision is expected by the second quarter of 2014. | |||||||||||||
Forward Looking Rate Plan | |||||||||||||
On October 2, 2013, DPL filed a multi-year rate plan, referred to as the Forward Looking Rate Plan (FLRP). As proposed, the FLRP would provide for annual electric distribution base rate increases over a four-year period in the aggregate amount of approximately $56 million. The FLRP as proposed provides the opportunity to achieve estimated earned ROEs of 7.41% and 8.80% in years one and two, respectively, and 9.75% in both years three and four of the plan. | |||||||||||||
In addition, DPL proposed that as part of the FLRP, in order to provide a higher minimum required standard of reliability for DPL’s customers than that to which DPL is currently subject, the standards by which DPL’s reliability is measured would be made more stringent in each year of the FLRP. In addition, DPL has offered to refund an aggregate of $500,000 to customers in each year of the FLRP that it fails to meet the proposed stricter minimum reliability standards. | |||||||||||||
On October 22, 2013, the DPSC opened a docket for the purpose of reviewing the details of the FLRP, but stated that it would not address the FLRP until the pending electric distribution base rate case discussed above was concluded. DPL expects that the FLRP will be updated and re-filed at the conclusion of the electric distribution base rate case. A schedule for the FLRP docket has not yet been established. | |||||||||||||
Gas Distribution Base Rates | |||||||||||||
On December 7, 2012, DPL submitted an application with the DPSC to increase its natural gas distribution base rates. The filing sought approval of an annual rate increase of approximately $12.0 million (as adjusted by DPL on July 15, 2013), based on a requested ROE of 10.25%. The requested rate increase sought to recover expenses associated with DPL’s ongoing efforts to maintain safe and reliable gas service. On October 22, 2013, the DPSC approved a settlement entered into on August 27, 2013 by the DPSC Staff, the Delaware Division of the Public Advocate and DPL, which provides for an annual rate increase of $6.8 million. While the approved settlement provided that no understanding was reached concerning the appropriate ROE, it specified that for reporting purposes and for calculating the AFUDC, construction work in process (CWIP), regulatory asset carrying costs and other accounting metrics, the rate of 9.75% should be used. The new rates became effective on November 1, 2013. | |||||||||||||
The approved settlement also provides for a phase-in of the recovery of the deferred costs associated with DPL’s deployment of the interface management unit (IMU). The IMU is part of its AMI and allows for the remote reading of gas meters. Recovery of such costs will occur through base rates over a two-year period, assuming specific milestones are met and pursuant to the following schedule: 50% of the IMU portion of DPL’s AMI will be put into rates on May 1, 2014, and the remainder will be put into rates on March 1, 2015. DPL also agreed in the settlement that its next natural gas distribution base rate application may be filed with the DPSC no earlier than January 1, 2015. | |||||||||||||
Gas Cost Rates | |||||||||||||
DPL makes an annual Gas Cost Rate (GCR) filing with the DPSC for the purpose of allowing DPL to recover natural gas procurement costs through customer rates. On August 28, 2013, DPL made its 2013 GCR filing. The rates proposed in the 2013 GCR filing would result in a GCR decrease of approximately 5.5%. On September 26, 2013, the DPSC issued an order authorizing DPL to place the new rates into effect on November 1, 2013, subject to refund and pending final DPSC approval. | |||||||||||||
Maryland | |||||||||||||
On March 29, 2013, DPL submitted an application with the MPSC to increase its electric distribution base rates by approximately $22.8 million, based on a requested ROE of 10.25%. The requested rate increase sought to recover expenses associated with DPL’s ongoing investments in reliability enhancement improvements and efforts to maintain safe and reliable service. DPL also proposed a three-year Grid Resiliency Charge rider for recovery of costs totaling approximately $10.2 million associated with its plan to accelerate investments in electric distribution infrastructure in a condensed timeframe. Acceleration of resiliency improvements was one of several recommendations included in a September 2012 report from Maryland’s Grid Resiliency Task Force (as discussed below under “Resiliency Task Forces”). Specific projects under DPL’s Grid Resiliency Charge plan included accelerating its tree-trimming cycle and upgrading five additional feeders per year for two years. In addition, DPL proposed a reliability performance-based mechanism that would allow DPL to earn up to $500,000 as an incentive for meeting enhanced reliability goals in 2015, but provided for a credit to customers of up to $500,000 in total if DPL did not meet at least the minimum reliability performance targets. DPL requested that any credits or charges would flow through the proposed Grid Resiliency Charge rider. | |||||||||||||
On August 30, 2013, the MPSC issued a final order approving a settlement among DPL, the MPSC staff and the Maryland Office of People’s Counsel (OPC). The approved settlement provides for an annual rate increase of approximately $15 million. While the settlement does not specify an overall ROE, the parties did agree that the ROE for purposes of calculating the AFUDC and regulatory asset carrying costs would be 9.81%. The approved settlement also provides for (i) recovery of storm restoration costs incurred as a result of recent major storm events, including the derecho storm in June 2012 and Hurricane Sandy in October 2012, by amortizing the related deferred operation and maintenance expenses of approximately $6 million over a five-year period with the unamortized balance included in rate base, and (ii) a Grid Resiliency Charge for recovery of costs totaling approximately $4.2 million associated with DPL’s proposed plan to accelerate investments related to certain priority feeders, provided that before implementing the surcharge, DPL provides additional information to the MPSC related to performance objectives, milestones and costs, and makes annual filings with the MPSC thereafter concerning this project, which will permit the MPSC to establish the applicable Grid Resiliency Charge rider for the following year. The approved settlement does not provide for approval of a portion of the Grid Resiliency Charge related to the proposed acceleration of the tree-trimming cycle, or DPL’s proposed reliability performance-based mechanism. The new rates became effective on September 15, 2013. | |||||||||||||
Federal Energy Regulatory Commission | |||||||||||||
On October 17, 2013, FERC issued a ruling on challenges filed by the Delaware Municipal Electric Corporation, Inc. (DEMEC) to DPL’s 2011 and 2012 annual formula rate updates. In 2006, FERC approved a formula rate for DPL that is incorporated into the PJM Interconnection, LLC (PJM) tariff. The formula rate establishes the treatment of costs and revenues and the resulting rates for DPL. Pursuant to the protocols approved by FERC and after a period of discovery, interested parties have an opportunity to file challenges regarding the application of the formula rate. The FERC order sets various issues in this proceeding for hearing, including challenges regarding formula rate inputs, deferred income items, prepayments of estimated income taxes, rate base reductions, various administrative and general expenses and the inclusion in rate base of CWIP related to the MAPP project (which has been abandoned). Settlement discussions began in this matter on November 5, 2013 before an administrative law judge at FERC. | |||||||||||||
On December 12, 2013, DEMEC filed a formal challenge to the DPL 2013 annual formula rate update, including a request to consolidate the 2013 challenge with the two prior challenges. This challenge is pending at FERC. PHI cannot predict when a final FERC decision in this proceeding will be issued. | |||||||||||||
On February 27, 2013, the public service commissions and public advocates of the District of Columbia, Maryland, Delaware and New Jersey, as well as DEMEC, filed a joint complaint with FERC against DPL and its affiliates Potomac Electric Power Company (Pepco) and Atlantic City Electric Company (ACE), as well as Baltimore Gas and Electric Company (BGE). The complainants challenged the base ROE and the application of the formula rate process, each associated with the transmission service that DPL and its utility affiliates provide. The complainants support an ROE within a zone of reasonableness of 6.78% and 10.33%, and have argued for a base ROE of 8.7%. The base ROE currently authorized by FERC for DPL and its utility affiliates is (i) 11.3% for facilities placed into service after January 1, 2006, and (ii) 10.8% for facilities placed into service prior to 2006. As currently authorized, the 10.8% base ROE for facilities placed into service prior to 2006 is eligible for a 50-basis-point incentive adder for being a member of a regional transmission organization. DPL believes the allegations in this complaint are without merit and is vigorously contesting it. On April 3, 2013, DPL filed its answer to this complaint, requesting that FERC dismiss the complaint against it on the grounds that it failed to meet the required burden to demonstrate that the existing rates and protocols are unjust and unreasonable. DPL cannot predict when a final FERC decision in this proceeding will be issued. | |||||||||||||
MPSC New Generation Contract Requirement | |||||||||||||
In September 2009, the MPSC initiated an investigation into whether Maryland electric distribution companies (EDCs) should be required to enter into long-term contracts with entities that construct, acquire or lease, and operate, new electric generation facilities in Maryland. In April 2012, the MPSC issued an order determining that there is a need for one new power plant in the range of 650 to 700 megawatts (MWs) beginning in 2015. The order requires DPL, its affiliate Pepco and BGE (collectively, the Contract EDCs) to negotiate and enter into a contract with the winning bidder of a competitive bidding process in amounts proportional to their relative Standard Offer Service (SOS) loads. Under the contract, the winning bidder will construct a 661 MW natural gas-fired combined cycle generation plant in Waldorf, Maryland, with an expected commercial operation date of June 1, 2015. The order acknowledged the Contract EDCs’ concerns about the requirements of the contract and directed them to negotiate with the winning bidder and submit any proposed changes in the contract to the MPSC for approval. The order further specified that each of the Contract EDCs will recover its costs associated with the contract through surcharges on its respective SOS customers. | |||||||||||||
In April 2012, a group of generating companies operating in the PJM region filed a complaint in the U.S. District Court for the District of Maryland challenging the MPSC’s order on the grounds that it violates the Commerce Clause and the Supremacy Clause of the U.S. Constitution. In May 2012, the Contract EDCs and other parties filed notices of appeal in circuit courts in Maryland requesting judicial review of the MPSC’s order. The Maryland circuit court appeals were consolidated in the Circuit Court for Baltimore City. | |||||||||||||
On April 16, 2013, the MPSC issued an order approving a final form of the contract and directing the Contract EDCs to enter into the contract with the winning bidder in amounts proportional to their relative SOS loads. On June 4, 2013, DPL and Pepco each entered into identical contracts in accordance with the terms of the MPSC’s order; however, under each contract’s terms, it will not become effective, if at all, until all legal proceedings related to these contracts and the actions of the MPSC in the related proceeding have been resolved. | |||||||||||||
On September 30, 2013, the U.S. District Court for the District of Maryland issued a ruling that the MPSC’s April 2012 order violated the Supremacy Clause of the U.S. Constitution by attempting to regulate wholesale prices. In contrast, on October 1, 2013, the Maryland Circuit Court for Baltimore City upheld the MPSC’s orders requiring the Contract EDCs to enter into the contracts. | |||||||||||||
On October 24, 2013, the Federal district court issued an order ruling that the contracts are illegal and unenforceable. The Federal district court order and its associated ruling could impact the state circuit court appeal, to which the Contract EDCs are parties, although such impact, if any, cannot be determined at this time. The Contract EDCs, the Maryland Office of People’s Counsel and one generating company have appealed the Maryland Circuit Court’s decision to the Maryland Court of Special Appeals. In addition, in November 2013 both the winning bidder and the MPSC appealed the Federal district court decision to the U.S. Court of Appeals for the Fourth Circuit. These appeals remain pending. | |||||||||||||
Assuming the contracts, as currently written, were to become effective by the expected commercial operation date of June 1, 2015, DPL continues to believe that it may be required to account for its proportional share of the contracts as a derivative instrument at fair value with an offsetting regulatory asset because they would recover any payments under the contracts from SOS customers. DPL has concluded that any accounting for these contracts would not be required until all legal proceedings related to these contracts and the actions of the MPSC in the related proceeding have been resolved. | |||||||||||||
DPL continues to evaluate these proceedings to determine, should the contracts be found to be valid and enforceable, (i) the extent of the negative effect that the contracts may have on DPL’s credit metrics, as calculated by independent rating agencies that evaluate and rate DPL and its debt issuances, (ii) the effect on DPL’s ability to recover its associated costs of the contracts if a significant number of SOS customers elect to buy their energy from alternative energy suppliers, and (iii) the effect of the contracts on the financial condition, results of operations and cash flows of DPL. | |||||||||||||
Resiliency Task Force | |||||||||||||
In July 2012, the Maryland governor signed an Executive Order directing his energy advisor, in collaboration with certain state agencies, to solicit input and recommendations from experts on how to improve the resiliency and reliability of the electric distribution system in Maryland. The resulting Grid Resiliency Task Force issued its report in September 2012, in which it made 11 recommendations. The governor forwarded the report to the MPSC in October 2012, urging the MPSC to quickly implement the first four recommendations: (i) strengthen existing reliability and storm restoration regulations; (ii) accelerate the investment necessary to meet the enhanced metrics; (iii) allow surcharge recovery for the accelerated investment; and (iv) implement clearly defined performance metrics into the traditional ratemaking scheme. DPL’s electric distribution base rate case filed with the MPSC on March 29, 2013 attempted to address the Grid Resiliency Task Force recommendations. In August 2013, the MPSC issued an order in the DPL Maryland electric distribution base rate case that only partially approved the proposed Grid Resiliency Charge. See “Rate Proceedings – Maryland” above for more information about these base rate cases. | |||||||||||||
MAPP Project | |||||||||||||
On August 24, 2012, the board of PJM terminated the MAPP project and removed it from PJM’s regional transmission expansion plan. DPL had been directed to construct the MAPP project, a 152-mile high-voltage interstate transmission line, to address the reliability needs of the region’s transmission system. In December 2012, DPL submitted a filing to FERC seeking recovery of approximately $38 million of abandoned MAPP costs over a five-year recovery period. The FERC filing addressed, among other things, the prudence of the recoverable costs incurred, the proposed period over which the abandoned costs are to be amortized and the rate of return on these costs during the recovery period. | |||||||||||||
In February 2013, FERC issued an order concluding that the MAPP project was cancelled for reasons beyond the control of DPL, finding that the prudently incurred costs associated with the abandonment of the MAPP project are eligible to be recovered, and setting for hearing and settlement procedures the prudence of the abandoned costs and the amortization period for those costs. | |||||||||||||
On December 18, 2013, DPL submitted a settlement agreement to FERC, which provides for recovery of DPL’s abandoned MAPP costs over a three-year recovery period beginning June 1, 2013. The settlement agreement, which is subject to FERC approval, would resolve all issues concerning the recovery of abandonment costs associated with the cancellation of the MAPP project. DPL cannot predict the timing or results of a final FERC decision in this proceeding. | |||||||||||||
As of December 31, 2013, DPL had a regulatory asset related to the MAPP abandoned costs of approximately $31 million, representing the original filing amount of approximately $38 million of abandoned costs referred to above less: (i) approximately $1 million of disallowed costs written off in 2013; and (ii) $6 million of amortization expense recorded in 2013. The regulatory asset balance includes the costs of land, land rights, engineering and design, environmental services, and project management and administration. | |||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||
Regulatory Matters | ' | ||||||||||||
(6) REGULATORY MATTERS | |||||||||||||
Regulatory Assets and Regulatory Liabilities | |||||||||||||
The components of ACE’s regulatory asset and liability balances at December 31, 2013 and 2012 are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Regulatory Assets | |||||||||||||
Securitized stranded costs (a) | $ | 350 | $ | 416 | |||||||||
Deferred energy supply costs (a) | 117 | 166 | |||||||||||
Recoverable income taxes | 42 | 33 | |||||||||||
Incremental storm restoration costs | 26 | 34 | |||||||||||
ACE SOCAs | — | 11 | |||||||||||
Other | 34 | 34 | |||||||||||
Total Regulatory Assets | $ | 569 | $ | 694 | |||||||||
Regulatory Liabilities | |||||||||||||
Deferred energy supply costs | $ | 38 | $ | 62 | |||||||||
Federal and state tax benefits, related to securitized stranded costs | 13 | 16 | |||||||||||
Excess depreciation reserve | — | 11 | |||||||||||
ACE SOCAs | — | 8 | |||||||||||
Other | 6 | 5 | |||||||||||
Total Regulatory Liabilities | $ | 57 | $ | 102 | |||||||||
(a) | A return is generally earned on these deferrals. | ||||||||||||
A description for each category of regulatory assets and regulatory liabilities follows: | |||||||||||||
Securitized Stranded Costs: Certain contract termination payments under a contract between ACE and an unaffiliated non-utility generator (NUG) and costs associated with the regulated operations of ACE’s electricity generation business are no longer recoverable through customer rates (collectively referred to as “stranded costs”). The stranded costs are amortized over the life of Transition Bonds issued by ACE Funding to securitize the recoverability of these stranded costs. These Transition Bonds mature between 2013 and 2023. A customer surcharge is collected by ACE to fund principal and interest payments on the Transition Bonds. | |||||||||||||
Deferred Energy Supply Costs: The regulatory asset represents primarily deferred costs associated with a net under-recovery of Basic Generation Service costs incurred by ACE that are probable of recovery in rates. The regulatory liability represents primarily deferred costs associated with a net over-recovery of Basic Generation Service costs incurred that will be refunded by ACE to customers. | |||||||||||||
Recoverable Income Taxes: Represents amounts recoverable from ACE’s customers for tax benefits applicable to utility operations previously recognized in income tax expense before the company was ordered to account for the tax benefits as deferred income taxes. As the temporary differences between the financial statement basis and tax basis of assets reverse, the deferred recoverable balances are reversed. | |||||||||||||
Incremental Storm Restoration Costs: Represents total incremental storm restoration costs incurred for repair work due to major storm events in 2012 and 2011, including Hurricane Sandy, the June 2012 derecho, and Hurricane Irene, that are recoverable from customers in the New Jersey jurisdiction. ACE’s costs related to Hurricane Sandy, the June 2012 derecho and Hurricane Irene are being amortized and recovered in rates, each over a three-year period. | |||||||||||||
ACE SOCAs: The regulatory asset represented unrealized losses associated with the SOCAs that ACE had entered into by order of the NJBPU. The NJBPU had ordered full recovery from distribution customers of payments made by ACE related to the SOCAs. Since these unrealized losses were non-cash, the related regulatory asset does not earn a return. The regulatory liability represented unrealized gains associated with the SOCAs that ACE had entered into by order of the NJBPU. The NJBPU had ordered that any amounts that ACE receives related to the SOCAs be remitted to its distribution customers. As further discussed below, ACE has derecognized their regulatory assets and liabilities related to the SOCAs in the fourth quarter of 2013. | |||||||||||||
Other: Represents miscellaneous regulatory assets that generally are being amortized over 1 to 20 years. | |||||||||||||
Federal and State Tax Benefits, Related to Securitized Stranded Costs: Securitized stranded costs include a portion attributable to the future tax benefit expected to be realized when the higher tax basis of the generating facilities divested by ACE is deducted for New Jersey state income tax purposes, as well as the future benefit to be realized through the reversal of federal excess deferred taxes. To account for the possibility that these tax benefits may be given to ACE’s customers through lower rates in the future, ACE established a regulatory liability. The regulatory liability related to federal excess deferred taxes will remain until such time as the Internal Revenue Service (IRS) issues its final regulations with respect to normalization of these federal excess deferred taxes. | |||||||||||||
Excess Depreciation Reserve: The excess depreciation reserve was recorded as part of an ACE New Jersey rate case settlement. This excess reserve is the result of a change in estimated depreciable lives and a change in depreciation technique from remaining life to whole life that caused an over-recovery for depreciation expense from customers when the remaining life method had been used. The excess was amortized as a reduction in Depreciation and amortization expense over an 8.25 year period, and expired in 2013. | |||||||||||||
Other: Includes miscellaneous regulatory liabilities. | |||||||||||||
Rate Proceedings | |||||||||||||
Bill Stabilization Adjustment | |||||||||||||
In 2009, ACE proposed in New Jersey the adoption of a bill stabilization adjustment (BSA) mechanism to decouple retail distribution revenue from the amount of power delivered to retail customers. The BSA proposal was not approved and there is no BSA proposal currently pending. | |||||||||||||
Under the BSA, customer distribution rates are subject to adjustment (through a credit or surcharge mechanism), depending on whether actual distribution revenue per customer exceeds or falls short of the revenue-per-customer amount approved by the applicable public service commission. | |||||||||||||
Electric Distribution Base Rates | |||||||||||||
On December 11, 2012, ACE submitted an application with the NJBPU, updated on January 4, 2013, to increase its electric distribution base rates by approximately $70.4 million (excluding sales-and-use taxes), based on a requested return on equity (ROE) of 10.25%. This proposed net increase was comprised of (i) a proposed increase to ACE’s distribution rates of approximately $72.1 million and (ii) a net decrease to ACE’s Regulatory Asset Recovery Charge (a customer charge to recover deferred, NJBPU-approved expenses incurred as part of ACE’s public service obligation) in the amount of approximately $1.7 million. The requested rate increase seeks to recover expenses associated with ACE’s ongoing investments in reliability enhancement improvements and efforts to maintain safe and reliable service. and to recover system restoration costs associated with the derecho storm in June 2012 and Hurricane Sandy in October 2012. On June 21, 2013, the NJBPU approved a settlement of the parties providing for an increase in ACE’s electric distribution base rates in the amount of $25.5 million, based on an ROE of 9.75%. The base distribution revenue increase includes full recovery of the approximately $70.0 million in incremental storm restoration costs incurred as a result of recent major storm events, including the derecho storm and Hurricane Sandy, by including the related capital costs of approximately $44.2 million in rate base and amortizing the related deferred operation and maintenance expenses of approximately $25.8 million over a three-year period. Rates were effective on July 1, 2013. | |||||||||||||
Update and Reconciliation of Certain Under-Recovered Balances | |||||||||||||
In February 2012 and March 2013, ACE submitted petitions with the NJBPU seeking to reconcile and update (i) charges related to the recovery of above-market costs associated with ACE’s long-term power purchase contracts with the NUGs, (ii) costs related to surcharges for the New Jersey Societal Benefit Program (a statewide public interest program for low income customers) and ACE’s uncollected accounts and (iii) operating costs associated with ACE’s residential appliance cycling program. In June 2012, the NJBPU approved a stipulation of settlement related to ACE’s February 2012 filing, which provided for an overall annual rate increase of $55.3 million that went into effect on July 1, 2012. In May 2013, the NJBPU approved a stipulation of settlement related to ACE’s March 2013 filing, which provided for an overall annual rate increase of $52.2 million (in addition to the $55.3 million approved by the NJBPU in June 2012) that went into effect on June 1, 2013. These rate increases, which primarily provide for the recovery of above-market costs associated with the NUG contracts and will have no effect on ACE’s operating income, were placed into effect provisionally and were subject to a review by the NJBPU of the final underlying costs for reasonableness and prudence. On February 19, 2014, the NJBPU approved a stipulation of settlement for both proceedings, which made final the provisional rates that went into effect on July 1, 2012 and June 1, 2013, respectively. | |||||||||||||
Service Extension Contributions Refund Order | |||||||||||||
On July 19, 2013, in compliance with a 2012 Superior Court of New Jersey Appellate Division (Appellate Division) court decision, the NJBPU released an order requiring utilities to issue refunds to persons or entities that paid non-refundable contributions for utility service extensions to certain areas described as “Areas Not Designated for Growth.” The order is limited to eligible contributions paid between March 20, 2005 and December 20, 2009. ACE is processing the refund requests that meet the eligibility criteria established in the order as they are received. Although ACE believes it received approximately $11 million of contributions between March 20, 2005 and December 20, 2009, it is currently unable to reasonably estimate the amount that it may be required to refund using the eligibility criteria established by the order. At this time, ACE does not expect that any such amount refunded will have a material effect on its consolidated financial condition, results of operations or cash flows, as any amounts that may be refunded will generally increase the value of ACE’s property, plant and equipment and may ultimately be recovered through depreciation and cost of service. It is anticipated that NJBPU will commence a rulemaking proceeding to further implement the directives of the Appellate Division decision. | |||||||||||||
Generic Consolidated Tax Adjustment Proceeding | |||||||||||||
In January 2013, the NJBPU initiated a generic proceeding to examine whether a consolidated tax adjustment (CTA) should continue to be used, and if so, how it should be calculated in determining a utility’s cost of service. Under the NJBPU’s current policy, when a New Jersey utility is included in a consolidated group income tax return, an allocated amount of any reduction in the consolidated group’s taxes as a result of losses by affiliates is used to reduce the utility’s rate base, upon which the utility earns a return. Consequently, this policy has substantially reduced ACE’s rate base and ACE’s position is that the CTA should be eliminated. A stakeholder process has been initiated by the NJBPU to aid in this examination. No formal schedule has been set for the remainder of the proceeding or for the issuance of a decision. | |||||||||||||
Federal Energy Regulatory Commission | |||||||||||||
On February 27, 2013, the public service commissions and public advocates of the District of Columbia, Maryland, Delaware and New Jersey, as well as the Delaware Municipal Electric Corporation, Inc., filed a joint complaint with FERC against ACE and its affiliates Potomac Electric Power Company (Pepco) and Delmarva Power & Light Company (DPL), as well as Baltimore Gas and Electric Company. The complainants challenged the base ROE and the application of the formula rate process, each associated with the transmission service that ACE and its utility affiliates provide. The complainants support an ROE within a zone of reasonableness of 6.78% and 10.33%, and have argued for a base ROE of 8.7%. The base ROE currently authorized by FERC for ACE and its utility affiliates is (i) 11.3% for facilities placed into service after January 1, 2006, and (ii) 10.8% for facilities placed into service prior to 2006. As currently authorized, the 10.8% base ROE for facilities placed into service prior to 2006 is eligible for a 50-basis-point incentive adder for being a member of a regional transmission organization. ACE believes the allegations in this complaint are without merit and is vigorously contesting it. On April 3, 2013, ACE filed its answer to this complaint, requesting that FERC dismiss the complaint against it on the grounds that it failed to meet the required burden to demonstrate that the existing rates and protocols are unjust and unreasonable. ACE cannot predict when a final FERC decision in this proceeding will be issued. | |||||||||||||
ACE Standard Offer Capacity Agreements | |||||||||||||
In April 2011, ACE entered into three SOCAs by order of the NJBPU, each with a different generation company, as more fully described in Note (13), “Derivative Instruments and Hedging Activities.” ACE and the other New Jersey electric distribution companies (EDCs) entered into the SOCAs under protest, arguing that the EDCs were denied due process and that the SOCAs violate certain of the requirements under the New Jersey law under which the SOCAs were established (the NJ SOCA Law). On October 22, 2013, in light of the decision of the U.S. District Court for the District of New Jersey described below, the state appeals of the NJBPU implementation orders filed by the EDCs and generators, were dismissed without prejudice subject to the parties exercising their appellate rights in the Federal courts. | |||||||||||||
In February 2011, ACE joined other plaintiffs in an action filed in the U.S. District Court for the District of New Jersey challenging the NJ SOCA Law on the grounds that it violates the Commerce Clause and the Supremacy Clause of the U.S. Constitution. On October 11, 2013, the Federal district court issued a ruling that the NJ SOCA Law is preempted by the Federal Power Act and violates the Supremacy Clause, and is therefore null and void. On October 21, 2013 a joint motion to stay the Federal district court’s decision pending appeal was filed by the NJBPU and one of the SOCA generation companies. In that motion, the NJBPU notified the Federal district court that it would take no action to force implementation of the SOCAs pending the appeal or such other action—such as FERC approval of the SOCAs—that would cure the constitutional issues to the Federal district court’s satisfaction. On October 25, 2013, the Federal district court issued an order denying the joint motion to stay and ruling that the SOCAs are void, invalid and unenforceable. On October 31, 2013, one of the SOCA generation companies filed a notice of appeal of the October 25, 2013 Federal district court decision with the U.S. Court of Appeals for the Third Circuit (the Federal circuit court). On November 8, 2013, the other remaining SOCA generating company filed a motion to intervene in the proceedings and a notice of appeal of the October 25, 2013 Federal district court decision. On November 21, 2013, the NJBPU filed its notice of appeal of the October 25, 2013 Federal district court decision. On November 14, 2013, the Federal circuit court granted the motion to intervene and on December 13, 2013, the Federal circuit court issued an order consolidating the appeals filed by the NJBPU and the SOCA generating companies of the October 25, 2013 Federal district court decision. The matter has been placed on an expedited schedule and appeal proceedings remain pending. The Federal circuit court is tentatively scheduled to hear the appeal on March 27, 2014. | |||||||||||||
One of the three SOCAs was terminated effective July 1, 2013 because of an event of default of the generation company that was a party to the SOCA. The remaining two SOCAs were terminated effective November 19, 2013, as a result of a termination notice delivered by ACE after the Federal district court’s October 25, 2013 decision. | |||||||||||||
In light of the Federal district court order (which has not been stayed pending appeal), ACE derecognized both the derivative assets (liabilities) for the estimated fair value of the SOCAs and the offsetting regulatory liabilities (assets) in the fourth quarter of 2013. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
(8) PROPERTY, PLANT AND EQUIPMENT | |||||||||||||
Property, plant and equipment is comprised of the following: | |||||||||||||
Original | Accumulated | Net | |||||||||||
Cost | Depreciation | Book Value | |||||||||||
(millions of dollars) | |||||||||||||
At December 31, 2013 | |||||||||||||
Generation | $ | 105 | $ | 99 | $ | 6 | |||||||
Distribution | 8,896 | 2,961 | 5,935 | ||||||||||
Transmission | 2,991 | 908 | 2,083 | ||||||||||
Gas | 481 | 142 | 339 | ||||||||||
Construction work in progress | 677 | — | 677 | ||||||||||
Non-operating and other property | 1,417 | 753 | 664 | ||||||||||
Total | $ | 14,567 | $ | 4,863 | $ | 9,704 | |||||||
At December 31, 2012 | |||||||||||||
Generation | $ | 107 | $ | 97 | $ | 10 | |||||||
Distribution | 8,320 | 2,954 | 5,366 | ||||||||||
Transmission | 2,783 | 866 | 1,917 | ||||||||||
Gas | 458 | 137 | 321 | ||||||||||
Construction work in progress | 692 | — | 692 | ||||||||||
Non-operating and other property | 1,265 | 725 | 540 | ||||||||||
Total | $ | 13,625 | $ | 4,779 | $ | 8,846 | |||||||
The non-operating and other property amounts include balances for general plant, intangible plant, distribution plant and transmission plant held for future use as well as other property held by non-utility subsidiaries. Utility plant is generally subject to a first mortgage lien. | |||||||||||||
Pepco Holdings’ utility subsidiaries use separate depreciation rates for each electric plant account. The rates vary from jurisdiction to jurisdiction. | |||||||||||||
Jointly Owned Plant | |||||||||||||
PHI’s consolidated balance sheets include its proportionate share of assets and liabilities related to jointly owned plant. At December 31, 2013 and 2012, PHI’s subsidiaries had a net book value ownership interest of $12 million and $13 million, respectively, in transmission and other facilities in which various parties also have ownership interests. PHI’s share of the operating and maintenance expenses of the jointly-owned plant is included in the corresponding expenses in the consolidated statements of (loss) income. PHI is responsible for providing its share of the financing for the above jointly-owned facilities. | |||||||||||||
Capital Leases | |||||||||||||
Pepco leases its consolidated control center, which is an integrated energy management center used by Pepco to centrally control the operation of its transmission and distribution systems. This lease is accounted for as a capital lease and was initially recorded at the present value of future lease payments, which totaled $152 million. The lease requires semi-annual payments of approximately $8 million over a 25-year period that began in December 1994, and provides for transfer of ownership of the system to Pepco for $1 at the end of the lease term. Under FASB guidance on regulated operations, the amortization of leased assets is modified so that the total interest expense charged on the obligation and amortization expense of the leased asset is equal to the rental expense allowed for rate-making purposes. The amortization expense is included within Depreciation and amortization in the consolidated statements of (loss) income. This lease is treated as an operating lease for rate-making purposes. | |||||||||||||
Capital lease assets recorded within Property, Plant and Equipment at December 31, 2013 and 2012, in millions of dollars, are comprised of the following: | |||||||||||||
Original | Accumulated | Net Book | |||||||||||
Cost | Amortization | Value | |||||||||||
At December 31, 2013 | |||||||||||||
Transmission | $ | 76 | $ | 41 | $ | 35 | |||||||
Distribution | 76 | 42 | 34 | ||||||||||
General | 3 | 3 | — | ||||||||||
Total | $ | 155 | $ | 86 | $ | 69 | |||||||
At December 31, 2012 | |||||||||||||
Transmission | $ | 76 | $ | 37 | $ | 39 | |||||||
Distribution | 76 | 37 | 39 | ||||||||||
General | 3 | 3 | — | ||||||||||
Total | $ | 155 | $ | 77 | $ | 78 | |||||||
The approximate annual commitments under all capital leases are $15 million for each year 2014 through 2018, and $16 million thereafter. | |||||||||||||
Deactivation of Pepco Energy Services’ Generating Facilities | |||||||||||||
During 2012, Pepco Energy Services deactivated its Buzzard Point and Benning Road oil-fired generation facilities. The facilities were located in Washington, D.C. and had a generating capacity of approximately 790 megawatts. During the years ended December 31, 2012 and 2011, PHI has recorded decommissioning costs of $3 million and $2 million, respectively, related to these generating facilities. | |||||||||||||
Pepco Energy Services placed the facilities into an idle condition termed a “cold closure.” A cold closure requires that the utility service be disconnected so that the facilities are no longer operable and require only essential maintenance until they are completely decommissioned. During the third quarter of 2013, Pepco Energy Services determined that it would be more cost effective to pursue the demolition of the Benning Road generation facility and realization of the scrap metal salvage value of the facility instead of maintaining cold closure status. The demolition of the facility commenced in the fourth quarter of 2013 and is expected to be completed by the end of 2014. Pepco Energy Services will recognize the salvage proceeds associated with the scrap metals at the facility as realized. | |||||||||||||
Long-Lived Asset Impairment | |||||||||||||
For the years ended December 31, 2013 and 2012, PHI recorded impairment losses of $4 million ($3 million after-tax) and $12 million ($7 million after-tax), respectively, at Pepco Energy Services associated primarily with its investments in landfill gas-fired electric generation facilities. In 2012, the impairment loss also included the reduction in the estimated net realizable value of the combustion turbines at Buzzard Point. PHI performed a long-lived asset impairment test on the landfill generation facilities of Pepco Energy Services as a result of a sustained decline in energy prices and recent production levels. The asset value of the facilities was written down to their estimated fair value because the future expected cash flows of the facilities were not sufficient to provide recovery of the facilities’ carrying value. PHI estimated the fair value of the facilities by calculating the present value of expected future cash flows using an appropriate discount rate. Both the expected future cash flows and the discount rate used primarily unobservable inputs. | |||||||||||||
Asset Retirement Obligations | |||||||||||||
PHI recognizes liabilities related to the retirement of long-lived assets in accordance with ASC 410. In connection with Pepco Energy Services’ decommissioning of the Buzzard Point and Benning Road generation facilities, PHI has recorded an asset retirement obligation of $2 million and $9 million as of December 31, 2013 and 2012, respectively on its consolidated balance sheets. | |||||||||||||
During 2013, Pepco Energy Services determined that it would be more cost effective to pursue the demolition of the Benning Road generation facility instead of maintaining cold closure status. As a result of this change in intent, Pepco Energy Services reduced its asset retirement obligation related to the facility by $2 million. | |||||||||||||
The sale of the Conectiv Energy wholesale power generation business to Calpine Corporation (Calpine) did not include a coal ash landfill site located at the Edge Moor generating facility, which PHI intends to close. The preliminary estimate of the costs to PHI to close the coal ash landfill ranges from approximately $2 million to $3 million, plus annual post-closure operations, maintenance and monitoring costs for 30 years. PHI has recorded an asset retirement obligation of $6 million on its consolidated balance sheet related to the Edge Moor landfill. | |||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
(7) PROPERTY, PLANT AND EQUIPMENT | |||||||||||||
Property, plant and equipment is comprised of the following: | |||||||||||||
Original | Accumulated | Net Book | |||||||||||
Cost | Depreciation | Value | |||||||||||
(millions of dollars) | |||||||||||||
At December 31, 2013 | |||||||||||||
Distribution | $ | 5,287 | $ | 2,027 | $ | 3,260 | |||||||
Transmission | 1,223 | 444 | 779 | ||||||||||
Construction work in progress | 312 | — | 312 | ||||||||||
Non-operating and other property | 488 | 301 | 187 | ||||||||||
Total | $ | 7,310 | $ | 2,772 | $ | 4,538 | |||||||
At December 31, 2012 | |||||||||||||
Distribution | $ | 4,949 | $ | 1,995 | $ | 2,954 | |||||||
Transmission | 1,166 | 419 | 747 | ||||||||||
Construction work in progress | 303 | — | 303 | ||||||||||
Non-operating and other property | 432 | 291 | 141 | ||||||||||
Total | $ | 6,850 | $ | 2,705 | $ | 4,145 | |||||||
The non-operating and other property amounts include balances for general plant, distribution plant and transmission plant held for future use, intangible plant and non-utility property. Utility plant is generally subject to a first mortgage lien. | |||||||||||||
Capital Leases | |||||||||||||
Pepco leases its consolidated control center, which is an integrated energy management center used by Pepco to centrally control the operation of its transmission and distribution systems. This lease is accounted for as a capital lease and was initially recorded at the present value of future lease payments. The lease requires semi-annual payments of approximately $8 million over a 25-year period that began in December 1994, and provides for transfer of ownership of the system to Pepco for $1 at the end of the lease term. Under FASB guidance on regulated operations, the amortization of leased assets is modified so that the total interest expense charged on the obligation and amortization expense of the leased asset is equal to the rental expense allowed for rate-making purposes. The amortization expense is included within Depreciation and amortization in the statements of income. This lease is treated as an operating lease for rate-making purposes. | |||||||||||||
Capital lease assets recorded within Property, plant and equipment at December 31, 2013 and 2012 are comprised of the following: | |||||||||||||
Original | Accumulated | Net Book | |||||||||||
Cost | Amortization | Value | |||||||||||
(millions of dollars) | |||||||||||||
At December 31, 2013 | |||||||||||||
Transmission | $ | 76 | $ | 41 | $ | 35 | |||||||
Distribution | 76 | 42 | 34 | ||||||||||
Other | 3 | 3 | — | ||||||||||
Total | $ | 155 | $ | 86 | $ | 69 | |||||||
At December 31, 2012 | |||||||||||||
Transmission | $ | 76 | $ | 37 | $ | 39 | |||||||
Distribution | 76 | 37 | 39 | ||||||||||
Other | 3 | 3 | — | ||||||||||
Total | $ | 155 | $ | 77 | $ | 78 | |||||||
The approximate annual commitments under capital leases are $15 million for each year 2014 through 2018, and $16 million thereafter. | |||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
(8) PROPERTY, PLANT AND EQUIPMENT | |||||||||||||
Property, plant and equipment is comprised of the following: | |||||||||||||
Original | Accumulated | Net | |||||||||||
Cost | Depreciation | Book Value | |||||||||||
(millions of dollars) | |||||||||||||
At December 31, 2013 | |||||||||||||
Distribution | $ | 1,788 | $ | 492 | $ | 1,296 | |||||||
Transmission | 982 | 243 | 739 | ||||||||||
Gas | 481 | 142 | 339 | ||||||||||
Construction work in progress | 158 | — | 158 | ||||||||||
Non-operating and other property | 264 | 139 | 125 | ||||||||||
Total | $ | 3,673 | $ | 1,016 | $ | 2,657 | |||||||
At December 31, 2012 | |||||||||||||
Distribution | $ | 1,664 | $ | 498 | $ | 1,166 | |||||||
Transmission | 877 | 233 | 644 | ||||||||||
Gas | 458 | 137 | 321 | ||||||||||
Construction work in progress | 206 | — | 206 | ||||||||||
Non-operating and other property | 217 | 132 | 85 | ||||||||||
Total | $ | 3,422 | $ | 1,000 | $ | 2,422 | |||||||
The non-operating and other property amounts include balances for general plant, plant held for future use, intangible plant and non-utility property. Utility plant is generally subject to a first mortgage lien. | |||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
(7) PROPERTY, PLANT AND EQUIPMENT | |||||||||||||
Property, plant and equipment is comprised of the following: | |||||||||||||
Original | Accumulated | Net | |||||||||||
Cost | Depreciation | Book Value | |||||||||||
(millions of dollars) | |||||||||||||
At December 31, 2013 | |||||||||||||
Generation | $ | 10 | $ | 9 | $ | 1 | |||||||
Distribution | 1,821 | 442 | 1,379 | ||||||||||
Transmission | 786 | 221 | 565 | ||||||||||
Construction work in progress | 110 | — | 110 | ||||||||||
Non-operating and other property | 174 | 79 | 95 | ||||||||||
Total | $ | 2,901 | $ | 751 | $ | 2,150 | |||||||
At December 31, 2012 | |||||||||||||
Generation | $ | 10 | $ | 9 | $ | 1 | |||||||
Distribution | 1,707 | 461 | 1,246 | ||||||||||
Transmission | 740 | 214 | 526 | ||||||||||
Construction work in progress | 133 | — | 133 | ||||||||||
Non-operating and other property | 181 | 103 | 78 | ||||||||||
Total | $ | 2,771 | $ | 787 | $ | 1,984 | |||||||
The non-operating and other property amounts include balances for general plant, plant held for future use, intangible plant and non-utility property. Utility plant is generally subject to a first mortgage lien. | |||||||||||||
Jointly Owned Plant | |||||||||||||
ACE’s consolidated balance sheets include its proportionate share of assets and liabilities related to jointly owned plant. At December 31, 2013 and 2012, ACE’s subsidiaries had a net book value ownership interest of $8 million in transmission and other facilities in which various parties also have ownership interests. ACE’s share of the operating and maintenance expenses of the jointly-owned plant is included in the corresponding expenses in the consolidated statements of income. ACE is responsible for providing its share of the financing for the above jointly-owned facilities. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Pension and Other Postretirement Benefits | ' | ||||||||||||||||||||||||
(9) PENSION AND OTHER POSTRETIREMENT BENEFITS | |||||||||||||||||||||||||
The following table shows changes in the benefit obligation and plan assets for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||||
Benefit obligation as of January 1 | $ | 2,494 | $ | 2,124 | $ | 775 | $ | 750 | |||||||||||||||||
Service cost | 53 | 35 | 8 | 7 | |||||||||||||||||||||
Interest cost | 100 | 107 | 29 | 35 | |||||||||||||||||||||
Amendments | 3 | — | (124 | ) | — | ||||||||||||||||||||
Actuarial (gain) loss | (277 | ) | 341 | (71 | ) | 24 | |||||||||||||||||||
Benefits paid (a) | (135 | ) | (113 | ) | (43 | ) | (41 | ) | |||||||||||||||||
Benefit obligation as of December 31 | $ | 2,238 | $ | 2,494 | $ | 574 | $ | 775 | |||||||||||||||||
Change in Plan Assets | |||||||||||||||||||||||||
Fair value of plan assets as of January 1 | $ | 2,039 | $ | 1,694 | $ | 321 | $ | 281 | |||||||||||||||||
Actual return on plan assets | 86 | 252 | 56 | 38 | |||||||||||||||||||||
Company and participant contributions | 126 | 206 | 34 | 43 | |||||||||||||||||||||
Benefits paid (a) | (135 | ) | (113 | ) | (43 | ) | (41 | ) | |||||||||||||||||
Fair value of plan assets as of December 31 | $ | 2,116 | $ | 2,039 | $ | 368 | $ | 321 | |||||||||||||||||
Funded Status at end of year (plan assets less plan obligations) | $ | (122 | ) | $ | (455 | ) | $ | (206 | ) | $ | (454 | ) | |||||||||||||
(a) | Other Postretirement Benefits paid is net of Medicare Part D subsidy receipts of zero and $4 million in 2013 and 2012, respectively. | ||||||||||||||||||||||||
At December 31, 2013 and 2012, the PHI Retirement Plan’s accumulated benefit obligation was approximately $2.1 billion and $2.3 billion, respectively. The accumulated benefit obligation differs from the pension benefit obligation presented in the table above in that the accumulated benefit obligation includes no assumption about future compensation levels. | |||||||||||||||||||||||||
The following table provides the amounts recorded in PHI’s consolidated balance sheets as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Regulatory asset | $ | 664 | $ | 934 | $ | 3 | $ | 237 | |||||||||||||||||
Current liabilities | (6 | ) | (6 | ) | — | — | |||||||||||||||||||
Pension benefit obligation | (116 | ) | (449 | ) | — | — | |||||||||||||||||||
Other postretirement benefit obligations | — | — | (206 | ) | (454 | ) | |||||||||||||||||||
Deferred income tax liabilities, net | (217 | ) | (216 | ) | 82 | 88 | |||||||||||||||||||
Accumulated other comprehensive loss, net of tax | 25 | 32 | — | — | |||||||||||||||||||||
Net amount recorded | $ | 350 | $ | 295 | $ | (121 | ) | $ | (129 | ) | |||||||||||||||
Amounts included in AOCL (pre-tax) and Regulatory assets at December 31, 2013 and 2012, consist of: | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Unrecognized net actuarial loss | $ | 694 | $ | 979 | $ | 117 | $ | 238 | |||||||||||||||||
Unamortized prior service cost (credit) | 10 | 9 | (114 | ) | (1 | ) | |||||||||||||||||||
Total | $ | 704 | $ | 988 | $ | 3 | $ | 237 | |||||||||||||||||
Accumulated other comprehensive loss ($25 million and $32 million, net of tax, at December 31, 2013 and 2012, respectively) | $ | 40 | $ | 54 | $ | — | $ | — | |||||||||||||||||
Regulatory assets | 664 | 934 | 3 | 237 | |||||||||||||||||||||
Total | $ | 704 | $ | 988 | $ | 3 | $ | 237 | |||||||||||||||||
Under FASB guidance on regulated operations, a portion of actuarial gains and losses and prior service costs (credits) are included in Regulatory assets (liabilities) in the consolidated balance sheets to reflect expected regulatory recovery of such amounts, which otherwise would be recorded to AOCL. The table below provides the changes in plan assets and benefit obligations recognized in AOCL and Regulatory assets for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Amounts amortized during the year: | |||||||||||||||||||||||||
Amortization of prior service (cost) credit | $ | (2 | ) | $ | (1 | ) | $ | — | $ | 11 | $ | 4 | $ | 5 | |||||||||||
Amortization of net actuarial (loss) | (67 | ) | (64 | ) | (47 | ) | (12 | ) | (14 | ) | (14 | ) | |||||||||||||
Amounts arising during the year: | |||||||||||||||||||||||||
Current year prior service cost (credit) | 3 | — | 19 | (124 | ) | — | 6 | ||||||||||||||||||
Current year actuarial (gain) loss | (218 | ) | 220 | 177 | (109 | ) | 4 | 53 | |||||||||||||||||
Total recognized in AOCL and Regulatory assets for the year ended December 31 | $ | (284 | ) | $ | 155 | $ | 149 | $ | (234 | ) | $ | (6 | ) | $ | 50 | ||||||||||
The estimated net actuarial loss and prior service cost for the defined benefit pension plans that will be amortized from AOCL or Regulatory assets into net periodic benefit cost over the next reporting year are $44 million and $2 million, respectively. The estimated net actuarial loss and prior service credit for the OPEB plan that will be amortized from AOCL or Regulatory assets into net periodic benefit cost over the next reporting year are $6 million and $13 million, respectively. | |||||||||||||||||||||||||
The table below provides the components of net periodic benefit costs recognized for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Service cost | $ | 53 | $ | 35 | $ | 35 | $ | 8 | $ | 7 | $ | 5 | |||||||||||||
Interest cost | 100 | 107 | 107 | 29 | 35 | 37 | |||||||||||||||||||
Expected return on plan assets | (145 | ) | (132 | ) | (128 | ) | (20 | ) | (18 | ) | (19 | ) | |||||||||||||
Amortization of prior service cost (credit) | 2 | 1 | — | (11 | ) | (4 | ) | (5 | ) | ||||||||||||||||
Amortization of net actuarial loss | 67 | 64 | 47 | 12 | 14 | 14 | |||||||||||||||||||
Termination benefits | — | — | — | — | 1 | 1 | |||||||||||||||||||
Net periodic benefit cost | $ | 77 | $ | 75 | $ | 61 | $ | 18 | $ | 35 | $ | 33 | |||||||||||||
The table below provides the split of the combined pension and other postretirement net periodic benefit costs among subsidiaries for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Pepco | $ | 34 | $ | 39 | $ | 43 | |||||||||||||||||||
DPL | 18 | 23 | 23 | ||||||||||||||||||||||
ACE | 17 | 24 | 21 | ||||||||||||||||||||||
Other subsidiaries | 26 | 24 | 7 | ||||||||||||||||||||||
Total | $ | 95 | $ | 110 | $ | 94 | |||||||||||||||||||
The following weighted average assumptions were used to determine the benefit obligations at December 31: | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Discount rate | 5.05 | % | 4.15 | % | 5 | % | 4.1 | % | |||||||||||||||||
Rate of compensation increase | 5 | % | 5 | % | 5 | % | 5 | % | |||||||||||||||||
Health care cost trend rate assumed for current year – pre 65 | — | — | 7 | % | 7.5 | % | |||||||||||||||||||
Health care cost trend rate assumed for current year – post 65 | — | — | 5.6 | % | 7.5 | % | |||||||||||||||||||
Rate to which the cost trend rate is assumed to decline for all eligible retirees (the ultimate trend rate) | — | — | 5 | % | 5 | % | |||||||||||||||||||
Year that the cost trend rate reaches the ultimate trend rate | — | — | 2020 | 2018 | |||||||||||||||||||||
Assumed health care cost trend rates may have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects, in millions of dollars: | |||||||||||||||||||||||||
1-Percentage- | 1-Percentage- | ||||||||||||||||||||||||
Point Increase | Point Decrease | ||||||||||||||||||||||||
Increase (decrease) in total service and interest cost | $ | 1 | $ | (1 | ) | ||||||||||||||||||||
Increase (decrease) in postretirement benefit obligation | $ | 17 | $ | (19 | ) | ||||||||||||||||||||
The following weighted average assumptions were used to determine the net periodic benefit cost for the years ended December 31: | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Discount rate | 4.15 | % | 5 | % | 5.65 | % | 4.10%/4.95 | % (a) | 4.9 | % | 5.6 | % | |||||||||||||
Expected long-term return on plan assets | 7 | % | 7.25 | % | 7.75 | % | 7 | % | 7.25 | % | 7.75 | % | |||||||||||||
Rate of compensation increase | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | |||||||||||||
Health care cost trend rate | — | — | — | 7.5 | % | 8 | % | 8 | % | ||||||||||||||||
(a) | The discount rate was updated for remeasurement to 4.95% on July 1, 2013. | ||||||||||||||||||||||||
PHI utilizes an analytical tool developed by its actuaries to select the discount rate. The analytical tool utilizes a high-quality bond portfolio with cash flows that match the benefit payments expected to be made under the plans. | |||||||||||||||||||||||||
PHI uses a building block approach to estimate the expected rate of return on plan assets. Under this approach, the percentage of plan assets in each asset class according to PHI’s target asset allocation, at the beginning of the year, is applied to the expected asset return for the related asset class. PHI incorporates long-term assumptions for real returns, inflation expectations, volatility and correlations among asset classes to determine expected returns for a given asset allocation. The pension and postretirement benefit plan assets consist of equity, fixed income, real estate and private equity investments. PHI periodically reviews its asset mix and rebalances assets to the target allocation. | |||||||||||||||||||||||||
The average remaining service periods for participating employees of the benefit plans was approximately 11 years for both 2013 and 2012. PHI utilizes plan census data to estimate these average remaining service periods. PHI uses the IRS prescribed mortality tables to estimate the average life expectancy. The IRS prescribed tables for 2013 and 2012 were used to determine net periodic pension and OPEB cost for the same respective years. The tables for 2014 and 2013 were used for determining the benefit obligations as of December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Benefit Plan Modifications | |||||||||||||||||||||||||
During 2013, PHI approved two amendments to its other postretirement benefits plan. These amendments impacted the retiree health care and the retiree life insurance benefits, and were effective on January 1, 2014. As a result of the amendments, which were cumulatively significant, PHI remeasured its accumulated postretirement benefit obligation for other postretirement benefits as of July 1, 2013. The remeasurement resulted in a $193 million reduction of the accumulated postretirement benefit obligation, which included recording a prior service credit of $124 million, which will be amortized over approximately ten years, and a $69 million reduction from a change in the discount rate from 4.10% as of December 31, 2012 to 4.95% as of July 1, 2013. The remeasurement resulted in a $17 million reduction in net periodic benefit cost for other postretirement benefits during 2013, when compared to 2012. Approximately 37% of net periodic other postretirement benefit costs were capitalized in 2013. | |||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
Investment Policies and Strategies | |||||||||||||||||||||||||
In developing its allocation policy for the assets in the PHI Retirement Plan and the other postretirement benefit plan, PHI examined projections of asset returns and volatility over a long-term horizon. In connection with this analysis, PHI evaluated the risk and return tradeoffs of alternative asset classes and asset mixes given long-term historical relationships as well as prospective capital market returns. PHI also conducted an asset-liability study to match projected asset growth with projected liability growth to determine whether there is sufficient liquidity for projected benefit payments. PHI developed its asset mix guidelines by incorporating the results of these analyses with an assessment of its risk posture, and taking into account industry practices. PHI periodically evaluates its investment strategy to ensure that plan assets are sufficient to meet the benefit obligations of the plans. As part of the ongoing evaluation, PHI may make changes to its targeted asset allocations and investment strategy. | |||||||||||||||||||||||||
PHI’s pension investment strategy is designed to meet the following investment objectives: | |||||||||||||||||||||||||
• | Generate investment returns that, in combination with funding contributions from PHI, provide adequate funding to meet all current and future benefit obligations of the plan. | ||||||||||||||||||||||||
• | Provide investment results that meet or exceed the assumed long-term rate of return, while maintaining the funded status of the plan at acceptable levels. | ||||||||||||||||||||||||
• | Improve funded status over time. | ||||||||||||||||||||||||
• | Decrease contribution and expense volatility as funded status improves. | ||||||||||||||||||||||||
To achieve these investment objectives, PHI’s investment strategy divides the pension program into two primary portfolios: | |||||||||||||||||||||||||
Return-Seeking Assets—These assets are intended to provide investment returns in excess of pension liability growth and reduce existing deficits in the funded status of the plan. The category includes a diversified mix of U.S. large and small cap equities, non-U.S. developed and emerging market equities, real estate, and private equity. | |||||||||||||||||||||||||
Liability-Hedging Assets—These assets are intended to reflect the sensitivity of the plan’s liabilities to changes in discount rates. This category includes a diversified mix of long duration, primarily investment grade credit and U.S. treasury securities. | |||||||||||||||||||||||||
PHI follows an asset-liability management strategy for PHI Retirement Plan assets in order to reduce the effects of future volatility of the fair value of its pension plan assets relative to its pension plan liabilities. For example, in 2013, this strategy uses a 66% target allocation to fixed income investments, primarily in high quality, longer-maturity fixed income securities. The PHI Retirement Plan asset allocations at December 31, 2013 and 2012, by asset category, were as follows: | |||||||||||||||||||||||||
Asset Category | Plan Assets | Target Plan | |||||||||||||||||||||||
at December 31, | Asset Allocation | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Equity | 31 | % | 30 | % | 28 | % | 32 | % | |||||||||||||||||
Fixed Income | 62 | % | 62 | % | 66 | % | 62 | % | |||||||||||||||||
Other (real estate, private equity) | 7 | % | 8 | % | 6 | % | 6 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
PHI’s other postretirement benefit plan asset allocations at December 31, 2013 and 2012, by asset category, were as follows: | |||||||||||||||||||||||||
Asset Category | Plan Assets | Target Plan | |||||||||||||||||||||||
at December 31, | Asset Allocation | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Equity | 63 | % | 62 | % | 60 | % | 60 | % | |||||||||||||||||
Fixed Income | 31 | % | 36 | % | 35 | % | 35 | % | |||||||||||||||||
Cash | 6 | % | 2 | % | 5 | % | 5 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
PHI will rebalance the plan asset portfolios when the actual allocations fall outside the ranges outlined in the investment policy or as funded status improves over a reasonable period of time. | |||||||||||||||||||||||||
Risk Management | |||||||||||||||||||||||||
Pension and other postretirement benefit plan assets may be invested in separately managed accounts in which there is ownership of individual securities, shares of commingled funds or mutual funds, or limited partnerships. Commingled funds and mutual funds are subject to detailed policy guidelines set forth in the fund’s prospectus or fund declaration, and limited partnerships are subject to the terms of the partnership agreement. | |||||||||||||||||||||||||
Separate account investment managers are responsible for achieving a level of diversification in their portfolio that is consistent with their investment approach and their role in PHI’s overall investment structure. Separate account investment managers must follow risk management guidelines established by PHI unless authorized in writing by PHI. | |||||||||||||||||||||||||
Derivative instruments are permissible in an investment portfolio to the extent they comply with policy guidelines and are consistent with risk and return objectives. Under no circumstances may such instruments be used speculatively or to leverage the portfolio. Separately managed accounts are prohibited from holding securities issued by the following firms: | |||||||||||||||||||||||||
• | PHI and its subsidiaries, | ||||||||||||||||||||||||
• | PHI’s pension plan trustee, its parent or its affiliates, | ||||||||||||||||||||||||
• | PHI’s pension plan consultant, its parent or its affiliates, and | ||||||||||||||||||||||||
• | PHI’s pension plan investment manager, its parent or its affiliates | ||||||||||||||||||||||||
Fair Value of Plan Assets | |||||||||||||||||||||||||
As defined in the FASB guidance on fair value measurement and disclosures (ASC 820), fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB’s fair value framework includes a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Investments are classified within the fair value hierarchy as follows: | |||||||||||||||||||||||||
Level 1: Investments are valued using quoted prices in active markets for identical instruments. | |||||||||||||||||||||||||
Level 2: Investments are valued using other significant observable inputs (e.g., quoted prices for similar investments, interest rates, credit risks, etc). | |||||||||||||||||||||||||
Level 3: Investments are valued using significant unobservable inputs, including internal assumptions. | |||||||||||||||||||||||||
There were no significant transfers between level 1 and level 2 during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||
The following tables present the fair values of PHI’s pension and other postretirement benefit plan assets by asset category within the fair value hierarchy levels, as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Instruments | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Pension Plan Assets: | |||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||
Domestic (a) | $ | 432 | $ | 185 | $ | 213 | $ | 34 | |||||||||||||||||
International (b) | 217 | 215 | 1 | 1 | |||||||||||||||||||||
Fixed Income (c) | 1,309 | — | 1,298 | 11 | |||||||||||||||||||||
Other | |||||||||||||||||||||||||
Private Equity | 53 | — | — | 53 | |||||||||||||||||||||
Real Estate | 61 | — | — | 61 | |||||||||||||||||||||
Cash Equivalents (d) | 44 | 44 | — | — | |||||||||||||||||||||
Pension Plan Assets Subtotal | 2,116 | 444 | 1,512 | 160 | |||||||||||||||||||||
Other Postretirement Plan Assets: | |||||||||||||||||||||||||
Equity (e) | 233 | 204 | 29 | — | |||||||||||||||||||||
Fixed Income (f) | 113 | 113 | — | — | |||||||||||||||||||||
Cash Equivalents | 22 | 22 | — | — | |||||||||||||||||||||
Postretirement Plan Assets Subtotal | 368 | 339 | 29 | — | |||||||||||||||||||||
Total Pension and Other Postretirement Assets | $ | 2,484 | $ | 783 | $ | 1,541 | $ | 160 | |||||||||||||||||
(a) | Predominantly includes domestic common stock and commingled funds. | ||||||||||||||||||||||||
(b) | Predominantly includes foreign common and preferred stock and warrants. | ||||||||||||||||||||||||
(c) | Predominantly includes corporate bonds, government bonds, municipal/provincial bonds, collateralized mortgage obligations and commingled funds. | ||||||||||||||||||||||||
(d) | Predominantly includes cash investment in short-term investment funds. | ||||||||||||||||||||||||
(e) | Includes domestic and international commingled funds. | ||||||||||||||||||||||||
(f) | Includes fixed income commingled funds. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Instruments | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Pension Plan Assets: | |||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||
Domestic (a) | $ | 367 | $ | 169 | $ | 170 | $ | 28 | |||||||||||||||||
International (b) | 254 | 250 | 1 | 3 | |||||||||||||||||||||
Fixed Income (c) | 1,256 | — | 1,243 | 13 | |||||||||||||||||||||
Other | |||||||||||||||||||||||||
Private Equity | 56 | — | — | 56 | |||||||||||||||||||||
Real Estate | 74 | — | — | 74 | |||||||||||||||||||||
Cash Equivalents (d) | 32 | 32 | — | — | |||||||||||||||||||||
Pension Plan Assets Subtotal | 2,039 | 451 | 1,414 | 174 | |||||||||||||||||||||
Other Postretirement Plan Assets: | |||||||||||||||||||||||||
Equity (e) | 199 | 171 | 28 | — | |||||||||||||||||||||
Fixed Income (f) | 115 | 115 | — | — | |||||||||||||||||||||
Cash Equivalents | 7 | 7 | — | — | |||||||||||||||||||||
Postretirement Plan Assets Subtotal | 321 | 293 | 28 | — | |||||||||||||||||||||
Total Pension and Other Postretirement Plan Assets | $ | 2,360 | $ | 744 | $ | 1,442 | $ | 174 | |||||||||||||||||
(a) | Predominantly includes domestic common stock and commingled funds. | ||||||||||||||||||||||||
(b) | Predominantly includes foreign common and preferred stock and warrants. | ||||||||||||||||||||||||
(c) | Predominantly includes corporate bonds, government bonds, municipal/provincial bonds, collateralized mortgage obligations and commingled funds. | ||||||||||||||||||||||||
(d) | Predominantly includes cash investment in short-term investment funds. | ||||||||||||||||||||||||
(e) | Includes domestic and international commingled funds. | ||||||||||||||||||||||||
(f) | Includes fixed income commingled funds. | ||||||||||||||||||||||||
There were no significant concentrations of risk in pension and OPEB plan assets at December 31, 2013 and 2012. | |||||||||||||||||||||||||
Valuation Techniques Used to Determine Fair Value | |||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||
Equity securities are primarily comprised of securities issued by public companies in domestic and foreign markets plus investments in commingled funds, which are valued on a daily basis. PHI can exchange shares of the publicly traded securities and the fair values are primarily sourced from the closing prices on stock exchanges where there is active trading, therefore they would be classified as level 1 investments. If there is less active trading, then the publicly traded securities would typically be priced using observable data, such as bid/ask prices, and these measurements would be classified as level 2 investments. Investments that are not publicly traded and valued using unobservable inputs would be classified as level 3 investments. | |||||||||||||||||||||||||
Commingled funds with publicly quoted prices and active trading are classified as level 1 investments. For commingled funds that are not publicly traded and have ongoing subscription and redemption activity, the fair value of the investment is the net asset value (NAV) per fund share, derived from the underlying securities’ quoted prices in active markets, and are classified as level 2 investments. Investments in commingled funds with redemption restrictions that use NAV are classified as level 3 investments. | |||||||||||||||||||||||||
Fixed Income | |||||||||||||||||||||||||
Fixed income investments are primarily comprised of fixed income securities and fixed income commingled funds. The prices for direct investments in fixed income securities are generated on a daily basis. Like the equity securities, fair values generated from active trading on exchanges are classified as level 1 investments. Prices generated from less active trading with wider bid/ask prices are classified as level 2 investments. If prices are based on uncorroborated and unobservable inputs, then the investments are classified as level 3 investments. | |||||||||||||||||||||||||
Commingled funds with publicly quoted prices and active trading are classified as level 1 investments. For commingled funds that are not publicly traded and have ongoing subscription and redemption activity, the fair value of the investment is the NAV per fund share, derived from the underlying securities’ quoted prices in active markets, and are classified as level 2 investments. Investments in commingled funds with redemption restrictions that use NAV are classified as level 3 investments. | |||||||||||||||||||||||||
Other – Private Equity and Real Estate | |||||||||||||||||||||||||
Investments in private equity and real estate funds are primarily invested in privately held real estate investment properties, trusts and partnerships, as well as equity and debt issued by public or private companies. As a practical expedient, PHI’s interest in the fund or partnership is estimated at NAV. PHI’s interest in these funds cannot be readily redeemed due to the inherent lack of liquidity and the primarily long-term nature of the underlying assets. Distribution is made through the liquidation of the underlying assets. PHI views these investments as part of a long-term investment strategy. These investments are valued by each investment manager based on the underlying assets. The majority of the underlying assets are valued using significant unobservable inputs and often require significant management judgment or estimation based on the best available information. Market data includes observations of the trading multiples of public companies considered comparable to the private companies being valued. The funds utilize valuation techniques consistent with the market, income and cost approaches to measure the fair value of certain real estate investments. As a result, PHI classifies these investments as level 3 investments. | |||||||||||||||||||||||||
The investments in private equity and real estate funds require capital commitments, which may be called over a specific number of years. Unfunded capital commitments as of December 31, 2013 and 2012 totaled $12 million and $15 million, respectively. | |||||||||||||||||||||||||
Reconciliations of the beginning and ending balances of PHI’s fair value measurements using significant unobservable inputs (level 3) for investments in the pension plan for the years ended December 31, 2013 and 2012 are shown below: | |||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs | |||||||||||||||||||||||||
(Level 3) | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Equity | Fixed | Private | Real | Total | |||||||||||||||||||||
Income | Equity | Estate | Level 3 | ||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 31 | $ | 13 | $ | 56 | $ | 74 | $ | 174 | |||||||||||||||
Transfer in (out) of Level 3 | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||||
Purchases | — | — | 2 | 2 | 4 | ||||||||||||||||||||
Sales | (5 | ) | (1 | ) | — | (13 | ) | (19 | ) | ||||||||||||||||
Settlements | — | 2 | (4 | ) | (10 | ) | (12 | ) | |||||||||||||||||
Unrealized gain/(loss) | 7 | — | (7 | ) | 7 | 7 | |||||||||||||||||||
Realized gain | 2 | — | 6 | 1 | 9 | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | 35 | $ | 11 | $ | 53 | $ | 61 | $ | 160 | |||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs | |||||||||||||||||||||||||
(Level 3) | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Equity | Fixed | Private | Real | Total | |||||||||||||||||||||
Income | Equity | Estate | Level 3 | ||||||||||||||||||||||
Balance as of January 1, 2012 | $ | 27 | $ | 9 | $ | 64 | $ | 65 | $ | 165 | |||||||||||||||
Transfer in (out) of Level 3 | — | 2 | — | — | 2 | ||||||||||||||||||||
Purchases | 4 | 2 | 4 | 5 | 15 | ||||||||||||||||||||
Sales | (4 | ) | (1 | ) | — | — | (5 | ) | |||||||||||||||||
Settlements | (1 | ) | 1 | (8 | ) | (5 | ) | (13 | ) | ||||||||||||||||
Unrealized gain/(loss) | 4 | — | (11 | ) | 8 | 1 | |||||||||||||||||||
Realized gain | 1 | — | 7 | 1 | 9 | ||||||||||||||||||||
Balance as of December 31, 2012 | $ | 31 | $ | 13 | $ | 56 | $ | 74 | $ | 174 | |||||||||||||||
Cash Flows | |||||||||||||||||||||||||
Contributions—PHI Retirement Plan | |||||||||||||||||||||||||
PHI’s funding policy with regard to the PHI Retirement Plan is to maintain a funding level that is at least equal to the target liability as defined under the Pension Protection Act of 2006. During 2013, PHI, DPL and ACE made discretionary tax-deductible contributions to the PHI Retirement Plan in the amounts of $80 million, $10 million and $30 million, respectively, which brought the PHI Retirement Plan assets to the funding target level for 2013 under the Pension Protection Act. During 2012, Pepco, DPL and ACE made discretionary tax-deductible contributions to the PHI Retirement Plan in the amounts of $85 million, $85 million and $30 million, respectively, which brought plan assets to the funding target level for 2012 under the Pension Protection Act. | |||||||||||||||||||||||||
Contributions—Other Postretirement Benefit Plan | |||||||||||||||||||||||||
In 2013 and 2012, Pepco contributed $6 million and $5 million, respectively, DPL contributed $3 million and $7 million, respectively, and ACE contributed $6 million and $7 million, respectively, to the other postretirement benefit plan. In 2013 and 2012, contributions of $7 million and $13 million, respectively, were made by other PHI subsidiaries. | |||||||||||||||||||||||||
Expected Benefit Payments | |||||||||||||||||||||||||
Estimated future benefit payments to participants in PHI’s pension and other postretirement benefit plans, which reflect expected future service as appropriate, are as follows: | |||||||||||||||||||||||||
Years | Pension Benefits | Other | |||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
2014 | $ | 159 | $ | 38 | |||||||||||||||||||||
2015 | 136 | 39 | |||||||||||||||||||||||
2016 | 139 | 39 | |||||||||||||||||||||||
2017 | 142 | 40 | |||||||||||||||||||||||
2018 | 147 | 40 | |||||||||||||||||||||||
2019 through 2023 | $ | 795 | $ | 201 | |||||||||||||||||||||
Medicare Prescription Drug Improvement and Modernization Act of 2003 (Medicare Act) | |||||||||||||||||||||||||
On December 8, 2003, the Medicare Act became effective. The Medicare Act introduced Medicare Part D, as well as a federal subsidy to sponsors of retiree health care benefit plans that provide a benefit that is at least actuarially equivalent to Medicare Part D. Pepco Holdings sponsors postretirement health care plans that provide prescription drug benefits that PHI plan actuaries have determined are actuarially equivalent to Medicare Part D. In 2012, Pepco Holdings received $4 million in federal Medicare prescription drug subsidies. PHI did not receive the Part D subsidy in 2013 and will not receive it in the future due to the implementation of an Employer Group Waiver Plan which is not eligible for Part D reimbursements. | |||||||||||||||||||||||||
Pepco Holdings Retirement Savings Plan | |||||||||||||||||||||||||
Pepco Holdings has a defined contribution retirement savings plan. Participation in the plan is voluntary. All participants are 100% vested and have a nonforfeitable interest in their own contributions and in the Pepco Holdings’ company matching contributions, including any earnings or losses thereon. Pepco Holdings’ matching contributions were $12 million, $12 million and $11 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||||||||||
Pension and Other Postretirement Benefits | ' | ||||||||||||||||||||||||
(8) PENSION AND OTHER POSTRETIREMENT BENEFITS | |||||||||||||||||||||||||
Pepco accounts for its participation in its parent’s single-employer plans, Pepco Holding’s non-contributory retirement plan (the PHI Retirement Plan) and the Pepco Holdings, Inc. Welfare Plan for Retirees (the PHI OPEB Plan), as participation in multiemployer plans. For 2013, 2012 and 2011, Pepco was responsible for $34 million, $39 million and $43 million, respectively, of the pension and other postretirement net periodic benefit cost incurred by PHI. Pepco made a discretionary, tax-deductible contribution of zero, $85 million and $40 million to the PHI Retirement Plan for the years ended December 31, 2013, 2012 and 2011, respectively. In addition, Pepco made contributions of $6 million, $5 million and $7 million, respectively, to the PHI OPEB Plan for the years ended December 31, 2013, 2012 and 2011. At December 31, 2013 and 2012, Pepco’s Prepaid pension expense of $332 million and $353 million, respectively, and Other postretirement benefit obligations of $61 million and $66 million, respectively, effectively represent assets and benefit obligations resulting from Pepco’s participation in the Pepco Holdings benefit plans. | |||||||||||||||||||||||||
Other Postretirement Benefit Plan Amendments | |||||||||||||||||||||||||
During 2013, PHI approved two amendments to its other postretirement benefits plan. These amendments impacted the retiree health care and the retiree life insurance benefits, and were effective on January 1, 2014. As a result of the amendments, which were cumulatively significant, PHI remeasured its accumulated postretirement benefit obligation for other postretirement benefits as of July 1, 2013. The remeasurement resulted in a $4 million reduction in Pepco’s net periodic benefit cost for other postretirement benefits in 2013. Approximately 38% of net periodic other postretirement benefit costs were capitalized in 2013. | |||||||||||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||||||||||
Pension and Other Postretirement Benefits | ' | ||||||||||||||||||||||||
(9) PENSION AND OTHER POSTRETIREMENT BENEFITS | |||||||||||||||||||||||||
DPL accounts for its participation in its parent’s single-employer plans, Pepco Holdings’ non-contributory retirement plan (the PHI Retirement Plan) and the Pepco Holdings, Inc. Welfare Plan for Retirees (the PHI OPEB Plan), as participation in multiemployer plans. For 2013, 2012 and 2011, DPL was responsible for $18 million, $23 million and $23 million, respectively, of the pension and other postretirement net periodic benefit cost incurred by PHI. DPL made discretionary tax-deductible contributions to the PHI Retirement Plan of $10 million, $85 million and $40 million for the years ended December 31, 2013, 2012 and 2011, respectively. In addition, DPL made contributions of $3 million, $7 million and $6 million, respectively, to the PHI OPEB Plan for the years ended December 31, 2013, 2012 and 2011. At December 31, 2013 and 2012, DPL’s Prepaid pension expense of $228 million and $232 million, respectively, and Other postretirement benefit obligations of $23 million and $22 million, respectively, effectively represent assets and benefit obligations resulting from DPL’s participation in the PHI benefit plans. | |||||||||||||||||||||||||
Other Postretirement Benefit Plan Amendments | |||||||||||||||||||||||||
During 2013, PHI approved two amendments to its other postretirement benefits plan. These amendments impacted the retiree health care and the retiree life insurance benefits, and were effective on January 1, 2014. As a result of the amendments, which were cumulatively significant, PHI remeasured its accumulated postretirement benefit obligation for other postretirement benefits as of July 1, 2013. The remeasurement resulted in a $3 million reduction in DPL’s net periodic benefit cost for other postretirement benefits in 2013. Approximately 29% of net periodic other postretirement benefit costs were capitalized in 2013. | |||||||||||||||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||||||||||
Pension and Other Postretirement Benefits | ' | ||||||||||||||||||||||||
(8) PENSION AND OTHER POSTRETIREMENT BENEFITS | |||||||||||||||||||||||||
ACE accounts for its participation in its parent’s single-employer plans, Pepco Holdings’ non-contributory retirement plan (the PHI Retirement Plan) and the Pepco Holdings, Inc. Welfare Plan for Retirees (the PHI OPEB Plan), as participation in multiemployer plans. For 2013, 2012 and 2011, ACE was responsible for $17 million, $24 million and $21 million, respectively, of the pension and other postretirement net periodic benefit cost incurred by PHI. ACE made discretionary tax-deductible contributions to the PHI Retirement Plan of $30 million in each of the years ended December 31, 2013, 2012 and 2011. In addition, ACE made contributions of $6 million, $7 million and $7 million, respectively, to the PHI OPEB Plan for the years ended December 31, 2013, 2012 and 2011. At December 31, 2013 and 2012, ACE’s Prepaid pension expense of $106 million and $88 million, and Other postretirement benefit obligations of $35 million and $34 million, respectively, effectively represent assets and benefit obligations resulting from ACE’s participation in the PHI benefit plans. | |||||||||||||||||||||||||
Other Postretirement Benefit Plan Amendments | |||||||||||||||||||||||||
During 2013, PHI approved two amendments to its other postretirement benefits plan. These amendments impacted the retiree health care and the retiree life insurance benefits, and were effective on January 1, 2014. As a result of the amendments, which were cumulatively significant, PHI remeasured its accumulated postretirement benefit obligation for other postretirement benefits as of July 1, 2013. The remeasurement resulted in a $2 million reduction in ACE’s net periodic benefit cost for other postretirement benefits in 2013. Approximately 42% of net periodic other postretirement benefit costs were capitalized in 2013. |
Debt
Debt | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Debt | ' | ||||||||||||||||
(10) DEBT | |||||||||||||||||
Long-Term Debt | |||||||||||||||||
The components of long-term debt are shown in the table below: | |||||||||||||||||
At December 31, | |||||||||||||||||
Interest Rate | Maturity | 2013 | 2012 | ||||||||||||||
(millions of dollars) | |||||||||||||||||
First Mortgage Bonds | |||||||||||||||||
Pepco: | |||||||||||||||||
4.95% (a)(b) | 2013 | $ | — | $ | 200 | ||||||||||||
4.65% (a)(b) | 2014 | 175 | 175 | ||||||||||||||
3.05% | 2022 | 200 | 200 | ||||||||||||||
6.20% (c)(d) | 2022 | 110 | 110 | ||||||||||||||
5.75% (a)(b) | 2034 | 100 | 100 | ||||||||||||||
5.40% (a)(b) | 2035 | 175 | 175 | ||||||||||||||
6.50% (a)(c) | 2037 | 500 | 500 | ||||||||||||||
7.90% | 2038 | 250 | 250 | ||||||||||||||
4.15% | 2043 | 250 | — | ||||||||||||||
4.95% | 2043 | 150 | — | ||||||||||||||
ACE: | |||||||||||||||||
6.63% | 2013 | — | 69 | ||||||||||||||
7.63% (e) | 2014 | 7 | 7 | ||||||||||||||
7.68% (e) | 2015 - 2016 | 17 | 17 | ||||||||||||||
7.75% | 2018 | 250 | 250 | ||||||||||||||
6.80% (b)(f) | 2021 | 39 | 39 | ||||||||||||||
4.35% | 2021 | 200 | 200 | ||||||||||||||
4.875% (c)(f) | 2029 | 23 | 23 | ||||||||||||||
5.80% (b)(g) | 2034 | 120 | 120 | ||||||||||||||
5.80% (b)(g) | 2036 | 105 | 105 | ||||||||||||||
DPL: | |||||||||||||||||
6.40% | 2013 | — | 250 | ||||||||||||||
5.22% (h) | 2016 | 100 | 100 | ||||||||||||||
3.50% | 2023 | 300 | — | ||||||||||||||
4.00% | 2042 | 250 | 250 | ||||||||||||||
Total First Mortgage Bonds | 3,321 | 3,140 | |||||||||||||||
Unsecured Tax-Exempt Bonds | |||||||||||||||||
DPL: | |||||||||||||||||
5.40% | 2031 | 78 | 78 | ||||||||||||||
Total Unsecured Tax-Exempt Bonds | $ | 78 | $ | 78 | |||||||||||||
At December 31, | |||||||||||||||||
Interest Rate | Maturity | 2013 | 2012 | ||||||||||||||
(millions of dollars) | |||||||||||||||||
Medium-Term Notes (unsecured) | |||||||||||||||||
DPL: | |||||||||||||||||
7.56% - 7.58% | 2017 | $ | 14 | $ | 14 | ||||||||||||
6.81% | 2018 | 4 | 4 | ||||||||||||||
7.61% | 2019 | 12 | 12 | ||||||||||||||
7.72% | 2027 | 10 | 10 | ||||||||||||||
Total Medium-Term Notes (unsecured) | 40 | 40 | |||||||||||||||
ACE Variable Rate Term Loan | 2014 | 100 | — | ||||||||||||||
Recourse Debt | |||||||||||||||||
PCI: | |||||||||||||||||
6.59% - 6.69% | 2014 | 11 | 11 | ||||||||||||||
Notes (secured) | |||||||||||||||||
Pepco Energy Services: | |||||||||||||||||
5.90% - 7.46% | 2017-2024 | 14 | 15 | ||||||||||||||
Notes (unsecured) | |||||||||||||||||
PHI: | |||||||||||||||||
2.70% | 2015 | 250 | 250 | ||||||||||||||
5.90% | 2016 | 190 | 190 | ||||||||||||||
6.13% | 2017 | 81 | 81 | ||||||||||||||
7.45% | 2032 | 185 | 185 | ||||||||||||||
DPL: | |||||||||||||||||
5.00% | 2014 | 100 | 100 | ||||||||||||||
5.00% | 2015 | 100 | 100 | ||||||||||||||
Total Notes (unsecured) | 906 | 906 | |||||||||||||||
Total Long-Term Debt | 4,470 | 4,190 | |||||||||||||||
Net unamortized discount | (14 | ) | (13 | ) | |||||||||||||
Current portion of long-term debt | (403 | ) | (529 | ) | |||||||||||||
Total Net Long-Term Debt | $ | 4,053 | $ | 3,648 | |||||||||||||
(a) | Represents a series of Collateral First Mortgage Bonds securing a series of senior notes issued by Pepco. | ||||||||||||||||
(b) | Represents a series of Collateral First Mortgage Bonds (as defined herein) which must be cancelled and released as security for the issuer’s obligations under the corresponding series of issuer notes (as defined herein) or tax-exempt bonds, at such time as the issuer does not have any first mortgage bonds outstanding (other than its Collateral First Mortgage Bonds). | ||||||||||||||||
(c) | Represents a series of Collateral First Mortgage Bonds which must be cancelled and released as security for the issuer’s obligations under the corresponding series of issuer notes or tax-exempt bonds, at such time as the issuer does not have any first mortgage bonds outstanding (other than its Collateral First Mortgage Bonds), except that the issuer may not permit such release of collateral unless the issuer substitutes comparable obligations for such collateral. | ||||||||||||||||
(d) | Represents a series of Collateral First Mortgage Bonds securing a series of senior notes issued by Pepco, which in turn secures a series of tax-exempt bonds issued for the benefit of Pepco. | ||||||||||||||||
(e) | Represents a series of Collateral First Mortgage Bonds securing a series of medium term notes issued by ACE. | ||||||||||||||||
(f) | Represents a series of Collateral First Mortgage Bonds securing a series of tax-exempt bonds issued for the benefit of ACE. | ||||||||||||||||
(g) | Represents a series of Collateral First Mortgage Bonds securing a series of senior notes issued by ACE. | ||||||||||||||||
(h) | Represents a series of Collateral First Mortgage Bonds securing a series of debt securities issued by DPL. | ||||||||||||||||
The outstanding first mortgage bonds issued by each of Pepco, DPL and ACE are issued under a mortgage and deed of trust and are secured by a first lien on substantially all of the issuing company’s property, plant and equipment, except for certain property excluded from the lien of the respective mortgage. | |||||||||||||||||
PHI’s long-term debt is subject to certain covenants. As of December 31, 2013, PHI and its subsidiaries were in compliance with all such covenants. | |||||||||||||||||
The table above does not separately identify $1,060 million, $100 million and $249 million in aggregate principal amount of senior notes, medium term notes and other debt securities (issuer notes) issued by each of Pepco, DPL and ACE, respectively, and $110 million and $62 million in aggregate principal amount of tax-exempt bonds issued for the benefit of Pepco and ACE, respectively. These issuer notes are secured by a like amount of first mortgage bonds (Collateral First Mortgage Bonds) of each respective issuer. In addition, these tax-exempt bonds are secured by a like amount of Collateral First Mortgage Bonds issued by the utility subsidiary for whose benefit the tax-exempt bonds were issued. The principal terms of each such series of issuer notes, or the issuer’s obligations in respect of each such series of tax-exempt bonds, are identical to the same terms of the corresponding series of Collateral First Mortgage Bonds. Payments of principal and interest made on a series of such issuer notes, or the satisfaction of the issuer’s obligations in respect of a series of such tax-exempt bonds, satisfy the corresponding obligations on the related series of Collateral First Mortgage Bonds. For these reasons, each such series of Collateral First Mortgage Bonds and the corresponding issuer notes and/or tax-exempt bonds together effectively represent a single financial obligation and are not identified in the table above separately. | |||||||||||||||||
Bond Issuances | |||||||||||||||||
During 2013, Pepco issued $250 million of 4.15% first mortgage bonds due March 15, 2043 and $150 million of 4.95% first mortgage bonds due November 15, 2043. Net proceeds from the issuance of the 4.15% bonds were used to repay Pepco’s outstanding commercial paper and for general corporate purposes. The net proceeds from the 4.95% bonds were used to repay outstanding commercial paper, including commercial paper issued to repay in full at maturity $200 million of Pepco’s 4.95% senior notes due November 15, 2013, plus accrued but unpaid interest thereon. The senior notes were secured by a like principal amount of Pepco’s first mortgage bonds, which under Pepco’s Mortgage and Deed of Trust were deemed to be satisfied with the repayment of the senior notes. | |||||||||||||||||
During 2013, DPL issued $300 million of 3.50% first mortgage bonds due November 15, 2023. The net proceeds from the issuance of the long-term debt were used to repay at maturity $250 million of DPL’s 6.40% first mortgage bonds, plus accrued but unpaid interest thereon, to repay outstanding commercial paper and for general corporate purposes. | |||||||||||||||||
Bond Redemptions | |||||||||||||||||
During 2013, Pepco repaid at maturity $200 million of its 4.95% senior notes, which were secured by a like principal amount of its first mortgage bonds as previously discussed. | |||||||||||||||||
During 2013, DPL repaid at maturity $250 million of its 6.40% first mortgage bonds. | |||||||||||||||||
During 2013, ACE repaid at maturity $69 million of its 6.63% non-callable first mortgage bonds. ACE also funded the redemption, prior to maturity, of $4 million of outstanding weekly variable rate pollution control revenue refunding bonds due 2017, issued by the Pollution Control Financing Authority of Salem County, New Jersey for ACE’s benefit. | |||||||||||||||||
ACE Term Loan Agreement | |||||||||||||||||
On May 10, 2013, ACE entered into a $100 million term loan agreement, pursuant to which ACE has borrowed (and may not re-borrow) $100 million at a rate of interest equal to the prevailing Eurodollar rate, which is determined by reference to the London Interbank Offered Rate (LIBOR) with respect to the relevant interest period, all as defined in the loan agreement, plus a margin of 0.75%. ACE’s Eurodollar borrowings under the loan agreement may be converted into floating rate loans under certain circumstances, and, in that event, for so long as any loan remains a floating rate loan, interest would accrue on that loan at a rate per year equal to (i) the highest of (a) the prevailing prime rate, (b) the federal funds effective rate plus 0.5%, or (c) the one-month Eurodollar rate plus 1%, plus (ii) a margin of 0.75%. As of December 31, 2013, outstanding borrowings under the loan agreement bore interest at an annual rate of 0.92%, which is subject to adjustment from time to time. All borrowings under the loan agreement are unsecured, and the aggregate principal amount of all loans, together with any accrued but unpaid interest due under the loan agreement, must be repaid in full on or before November 10, 2014. | |||||||||||||||||
Under the terms of the term loan agreement, ACE must maintain compliance with specified covenants, including (i) the requirement that ACE maintain a ratio of total indebtedness to total capitalization of 65% or less, computed in accordance with the terms of the loan agreement, which calculation excludes from the definition of total indebtedness certain trust preferred securities and deferrable interest subordinated debt (not to exceed 15% of total capitalization), (ii) a restriction on sales or other dispositions of assets, other than certain permitted sales and dispositions, and (iii) a restriction on the incurrence of liens (other than liens permitted by the loan agreement) on the assets of ACE. The loan agreement does not include any rating triggers. ACE was in compliance with all covenants under this loan agreement as of December 31, 2013. | |||||||||||||||||
Transition Bonds Issued by ACE Funding | |||||||||||||||||
The components of transition bonds are shown in the table below: | |||||||||||||||||
At December 31, | |||||||||||||||||
Interest Rate | Maturity | 2013 | 2012 | ||||||||||||||
(millions of dollars) | |||||||||||||||||
4.46% | 2016 | $ | 8 | $ | 19 | ||||||||||||
4.91% | 2017 | 46 | 75 | ||||||||||||||
5.05% | 2020 | 54 | 54 | ||||||||||||||
5.55% | 2023 | 147 | 147 | ||||||||||||||
Total Transition Bonds | 255 | 295 | |||||||||||||||
Net unamortized discount | — | — | |||||||||||||||
Current portion of long-term debt | (41 | ) | (39 | ) | |||||||||||||
Total Net Long-Term Transition Bonds | $ | 214 | $ | 256 | |||||||||||||
For a description of the Transition Bonds, see Note (16), “Variable Interest Entities – ACE Funding.” | |||||||||||||||||
Maturities of PHI’s long-term debt and Transition Bonds outstanding at December 31, 2013 are $444 million in 2014, $409 million in 2015, $338 million in 2016, $133 million in 2017, $286 million in 2018 and $3,115 million thereafter. | |||||||||||||||||
Long-Term Project Funding | |||||||||||||||||
As of December 31, 2013 and 2012, Pepco Energy Services had total outstanding long-term project funding (including current maturities) of $12 million and $13 million, respectively, related to energy savings contracts performed by Pepco Energy Services. The aggregate amounts of maturities for the project funding debt outstanding at December 31, 2013, are $2 million for 2014, $2 million for 2015, $1 million for each year 2016 and 2017, $2 million for 2018, and $4 million thereafter. | |||||||||||||||||
Short-Term Debt | |||||||||||||||||
PHI and its regulated utility subsidiaries have traditionally used a number of sources to fulfill short-term funding needs, such as commercial paper, short-term notes, and bank lines of credit. Proceeds from short-term borrowings are used primarily to meet working capital needs, but may also be used to temporarily fund long-term capital requirements. The components of PHI’s short-term debt at December 31, 2013 and 2012 are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(millions of dollars) | |||||||||||||||||
Commercial paper | $ | 442 | $ | 637 | |||||||||||||
Variable rate demand bonds | 123 | 128 | |||||||||||||||
Term loan agreement | — | 200 | |||||||||||||||
Total | $ | 565 | $ | 965 | |||||||||||||
Commercial Paper | |||||||||||||||||
PHI, Pepco, DPL and ACE maintain ongoing commercial paper programs to address short-term liquidity needs. As of December 31, 2013, the maximum capacity available under these programs was $875 million, $500 million, $500 million and $350 million, respectively, subject to available borrowing capacity under the credit facility. | |||||||||||||||||
PHI, Pepco, DPL and ACE had $24 million, $151 million, $147 million and $120 million, respectively, of commercial paper outstanding at December 31, 2013. The weighted average interest rate for commercial paper issued by PHI, Pepco, DPL and ACE during 2013 was 0.70%, 0.34%, 0.29% and 0.31%, respectively. The weighted average maturity of all commercial paper issued by PHI, Pepco, DPL and ACE during 2013 was five, five, three and four days, respectively. | |||||||||||||||||
PHI, Pepco, DPL and ACE had $264 million, $231 million, $32 million and $110 million, respectively, of commercial paper outstanding at December 31, 2012. The weighted average interest rate for commercial paper issued by PHI, Pepco, DPL and ACE during 2012 was 0.87%, 0.43%, 0.43% and 0.41%, respectively. The weighted average maturity of all commercial paper issued by PHI, Pepco, DPL and ACE in 2012 was ten, five, four and three days, respectively. | |||||||||||||||||
Variable Rate Demand Bonds | |||||||||||||||||
PHI’s utility subsidiaries DPL and ACE, each have outstanding obligations in respect of Variable Rate Demand Bonds (VRDB). VRDBs are subject to repayment on the demand of the holders and, for this reason, are accounted for as short-term debt in accordance with GAAP. However, bonds submitted for purchase are remarketed by a remarketing agent on a best efforts basis. PHI expects that any bonds submitted for purchase will be remarketed successfully due to the creditworthiness of the issuer and, as applicable, the credit support, and because the remarketing resets the interest rate to the then-current market rate. The bonds may be converted to a fixed-rate, fixed-term option to establish a maturity which corresponds to the date of final maturity of the bonds. On this basis, PHI views VRDBs as a source of long-term financing. As of December 31, 2013, $105 million of VRDBs issued on behalf of DPL (of which $72 million were secured by Collateral First Mortgage Bonds issued by DPL) and $18 million of VRDBs issued on behalf of ACE were outstanding. | |||||||||||||||||
The VRDBs outstanding at December 31, 2013 mature as follows: 2014 to 2017 ($44 million), 2024 ($33 million) and 2028 to 2029 ($46 million). The weighted average interest rate for VRDBs was 0.24% during 2013 and 0.34% during 2012. | |||||||||||||||||
Credit Facility | |||||||||||||||||
PHI, Pepco, DPL and ACE maintain an unsecured syndicated credit facility to provide for their respective liquidity needs, including obtaining letters of credit, borrowing for general corporate purposes and supporting their commercial paper programs. On August 1, 2011, PHI, Pepco, DPL and ACE entered into an amended and restated credit agreement which, on August 2, 2012, was amended to extend the term of the credit facility to August 1, 2017 and to amend the pricing schedule to decrease certain fees and interest rates payable to the lenders under the facility. On August 1, 2013, as permitted under the existing terms of the credit agreement, a request by PHI, Pepco, DPL and ACE to extend the credit facility termination date to August 1, 2018 was approved. All of the terms and conditions as well as pricing remained the same. | |||||||||||||||||
The aggregate borrowing limit under the amended and restated credit facility is $1.5 billion, all or any portion of which may be used to obtain loans and up to $500 million of which may be used to obtain letters of credit. The facility also includes a swingline loan sub-facility, pursuant to which each company may make same day borrowings in an aggregate amount not to exceed 10% of the total amount of the facility. Any swingline loan must be repaid by the borrower within fourteen days of receipt. The credit sublimit is $750 million for PHI and $250 million for each of Pepco, DPL and ACE. The sublimits may be increased or decreased by the individual borrower during the term of the facility, except that (i) the sum of all of the borrower sublimits following any such increase or decrease must equal the total amount of the facility and (ii) the aggregate amount of credit used at any given time by (a) PHI may not exceed $1.25 billion and (b) each of Pepco, DPL or ACE may not exceed the lesser of $500 million and the maximum amount of short-term debt the company is permitted to have outstanding by its regulatory authorities. The total number of the sublimit reallocations may not exceed eight per year during the term of the facility. | |||||||||||||||||
The interest rate payable by each company on utilized funds is, at the borrowing company’s election, (i) the greater of the prevailing prime rate, the federal funds effective rate plus 0.5% and the one month LIBOR plus 1.0%, or (ii) the prevailing Eurodollar rate, plus a margin that varies according to the credit rating of the borrower. | |||||||||||||||||
In order for a borrower to use the facility, certain representations and warranties must be true and correct, and the borrower must be in compliance with specified financial and other covenants, including (i) the requirement that each borrowing company maintain a ratio of total indebtedness to total capitalization of 65% or less, computed in accordance with the terms of the credit agreement, which calculation excludes from the definition of total indebtedness certain trust preferred securities and deferrable interest subordinated debt (not to exceed 15% of total capitalization), (ii) with certain exceptions, a restriction on sales or other dispositions of assets, and (iii) a restriction on the incurrence of liens on the assets of a borrower or any of its significant subsidiaries other than permitted liens. The credit agreement contains certain covenants and other customary agreements and requirements that, if not complied with, could result in an event of default and the acceleration of repayment obligations of one or more of the borrowers thereunder. Each of the borrowers was in compliance with all covenants under this facility as of December 31, 2013. | |||||||||||||||||
The absence of a material adverse change in PHI’s business, property, results of operations or financial condition is not a condition to the availability of credit under the credit agreement. The credit agreement does not include any rating triggers. | |||||||||||||||||
As of December 31, 2013 and 2012, the amount of cash plus unused borrowing capacity under the credit facility available to meet the future liquidity needs of PHI and its utility subsidiaries on a consolidated basis totaled $1,063 million and $861 million, respectively. PHI’s utility subsidiaries had combined cash and unused borrowing capacity under the credit facility of $332 million and $477 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||
Other Financing Activities | |||||||||||||||||
PHI Term Loan Agreement | |||||||||||||||||
On March 28, 2013, PHI entered into a $250 million term loan agreement due March 27, 2014, pursuant to which PHI had borrowed $250 million at a rate of interest equal to the prevailing Eurodollar rate, which is determined by reference to the LIBOR with respect to the relevant interest period, all as defined in the loan agreement, plus a margin of 0.875%. PHI used the net proceeds of the loan under the loan agreement to repay its outstanding $200 million term loan obtained in 2012, and for general corporate purposes. On May 29, 2013, PHI repaid the $250 million term loan with a portion of the net proceeds from the early termination of the cross-border energy lease investments. | |||||||||||||||||
Long-Term Project Funding | |||||||||||||||||
On October 24, 2013, Pepco Energy Services entered into an agreement with a lender to receive up to $8 million in construction financing at an interest rate of 4.68% for an energy savings project that is expected to be completed in 2014. The agreement includes a transfer of receivables from Pepco Energy Services to the lender after construction is completed, under which the customer would make contractual payments over a 23-year period to repay the financing. If there are shortfalls in Pepco Energy Services’ energy savings guarantee or other performance obligations to the customer that reduce customer payments below the contractual payment amounts, then Pepco Energy Services would compensate the lender for the unpaid amounts. PHI has guaranteed the performance obligations of Pepco Energy Services under the financing agreement. | |||||||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||
Debt | ' | ||||||||||||||||
(9) DEBT | |||||||||||||||||
Long-Term Debt | |||||||||||||||||
The components of long-term debt are shown in the table below: | |||||||||||||||||
Type of Debt | Interest Rate | Maturity | 2013 | 2012 | |||||||||||||
(millions of dollars) | |||||||||||||||||
First Mortgage Bonds | 4.95 | %(a)(b) | 2013 | $ | — | $ | 200 | ||||||||||
4.65 | %(a)(b) | 2014 | 175 | 175 | |||||||||||||
3.05 | % | 2022 | 200 | 200 | |||||||||||||
6.2 | %(c)(d) | 2022 | 110 | 110 | |||||||||||||
5.75 | %(a)(b) | 2034 | 100 | 100 | |||||||||||||
5.4 | %(a)(b) | 2035 | 175 | 175 | |||||||||||||
6.5 | %(a)(c) | 2037 | 500 | 500 | |||||||||||||
7.9 | % | 2038 | 250 | 250 | |||||||||||||
4.15 | % | 2043 | 250 | — | |||||||||||||
4.95 | % | 2043 | 150 | — | |||||||||||||
Total long-term debt | 1,910 | 1,710 | |||||||||||||||
Net unamortized discount | (11 | ) | (9 | ) | |||||||||||||
Current portion of long-term debt | (175 | ) | (200 | ) | |||||||||||||
Total net long-term debt | $ | 1,724 | $ | 1,501 | |||||||||||||
(a) | Represents a series of Collateral First Mortgage Bonds securing a series of senior notes issued by Pepco. | ||||||||||||||||
(b) | Represents a series of Collateral First Mortgage Bonds (as defined herein) which must be cancelled and released as security for Pepco’s obligations under the corresponding series of senior notes or tax-exempt bonds, at such time as Pepco does not have any first mortgage bonds outstanding (other than its Collateral First Mortgage Bonds). | ||||||||||||||||
(c) | Represents a series of Collateral First Mortgage Bonds which must be cancelled and released as security for Pepco’s obligations under the corresponding series of senior notes or tax-exempt bonds, at such time as Pepco does not have any first mortgage bonds outstanding (other than its Collateral First Mortgage Bonds), except that Pepco may not permit such release of collateral unless Pepco substitutes comparable obligations for such collateral. | ||||||||||||||||
(d) | Represents a series of Collateral First Mortgage Bonds securing a series of senior notes issued by Pepco, which in turn secures a series of tax-exempt bonds issued for the benefit of Pepco. | ||||||||||||||||
The outstanding first mortgage bonds are issued under a mortgage and deed of trust and are secured by a first lien on substantially all of Pepco’s property, plant and equipment, except for certain property excluded from the lien of the mortgage. | |||||||||||||||||
Maturities of Pepco’s long-term debt outstanding at December 31, 2013, are $175 million in 2014, zero in 2015 through 2018 and $1,735 million thereafter. | |||||||||||||||||
Pepco’s long-term debt is subject to certain covenants. As of December 31, 2013, Pepco is in compliance with all such covenants. | |||||||||||||||||
The table above does not separately identify $1,060 million in aggregate principal amount of senior notes issued by Pepco and $110 million in aggregate principal amount of tax-exempt bonds issued for the benefit of Pepco. These senior notes are secured by a like amount of first mortgage bonds (Collateral First Mortgage Bonds) of Pepco. In addition, these tax-exempt bonds are secured by a like amount of Collateral First Mortgage Bonds issued by Pepco. The principal terms of each such series of senior notes, or Pepco’s obligations in respect of each such series of tax-exempt bonds, are identical to the same terms of the corresponding series of Collateral First Mortgage Bonds. Payments of principal and interest made on a series of such senior notes, or the satisfaction of Pepco’s obligations in respect of a series of such tax-exempt bonds, satisfy the corresponding obligations on the related series of Collateral First Mortgage Bonds. For these reasons, each such series of Collateral First Mortgage Bonds and the corresponding senior notes and/or tax-exempt bonds together effectively represent a single financial obligation and are not identified in the table above separately. | |||||||||||||||||
Bond Issuances | |||||||||||||||||
During 2013, Pepco issued $250 million of 4.15% first mortgage bonds due March 15, 2043 and $150 million of 4.95% first mortgage bonds due November 15, 2043. Net proceeds from the issuance of the 4.15% bonds were used to repay Pepco’s outstanding commercial paper and for general corporate purposes. The net proceeds from the 4.95% bonds were used to repay outstanding commercial paper, including commercial paper issued to repay in full at maturity $200 million of 4.95% senior notes due November 15, 2013, plus accrued but unpaid interest thereon. The senior notes were secured by a like principal amount of first mortgage bonds, which under the mortgage and deed of trust were deemed to be satisfied with the repayment of the senior notes. | |||||||||||||||||
Bond Redemptions | |||||||||||||||||
During 2013, Pepco repaid at maturity $200 million of its 4.95% senior notes, which were secured by a like principal amount of its first mortgage bonds. | |||||||||||||||||
Short-Term Debt | |||||||||||||||||
Pepco has traditionally used a number of sources to fulfill short-term funding needs, such as commercial paper, short-term notes, and bank lines of credit. Proceeds from short-term borrowings are used primarily to meet working capital needs, but may also be used to temporarily fund long-term capital requirements. | |||||||||||||||||
The components of Pepco’s short-term debt at December 31, 2013 and 2012 are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(millions of dollars) | |||||||||||||||||
Commercial paper | $ | 151 | $ | 231 | |||||||||||||
Total | $ | 151 | $ | 231 | |||||||||||||
Commercial Paper | |||||||||||||||||
Pepco maintains an ongoing commercial paper program to address its short-term liquidity needs. As of December 31, 2013, the maximum capacity available under the program was $500 million, subject to available borrowing capacity under the credit facility. | |||||||||||||||||
Pepco had $151 million and $231 million of commercial paper outstanding at December 31, 2013 and 2012, respectively. The weighted average interest rates for commercial paper issued by Pepco during 2013 and 2012 were 0.34% and 0.43%, respectively. The weighted average maturity of all commercial paper issued by Pepco during each of 2013 and 2012 was five days. | |||||||||||||||||
Credit Facility | |||||||||||||||||
PHI, Pepco, DPL and ACE maintain an unsecured syndicated credit facility to provide for their respective liquidity needs, including obtaining letters of credit, borrowing for general corporate purposes and supporting their commercial paper programs. On August 1, 2011, PHI, Pepco, DPL and ACE entered into an amended and restated credit agreement which, on August 2, 2012, was amended to extend the term of the credit facility to August 1, 2017 and to amend the pricing schedule to decrease certain fees and interest rates payable to the lenders under the facility. On August 1, 2013, as permitted under the existing terms of the credit agreement, a request by PHI, Pepco, DPL and ACE to extend the credit facility termination date to August 1, 2018 was approved. All of the terms and conditions as well as pricing remained the same. | |||||||||||||||||
The aggregate borrowing limit under the amended and restated credit facility is $1.5 billion, all or any portion of which may be used to obtain loans and up to $500 million of which may be used to obtain letters of credit. The facility also includes a swingline loan sub-facility, pursuant to which each company may make same day borrowings in an aggregate amount not to exceed 10% of the total amount of the facility. Any swingline loan must be repaid by the borrower within fourteen days of receipt. The credit sublimit is $750 million for PHI and $250 million for each of Pepco, DPL and ACE. The sublimits may be increased or decreased by the individual borrower during the term of the facility, except that (i) the sum of all of the borrower sublimits following any such increase or decrease must equal the total amount of the facility and (ii) the aggregate amount of credit used at any given time by (a) PHI may not exceed $1.25 billion and (b) each of Pepco, DPL or ACE may not exceed the lesser of $500 million and the maximum amount of short-term debt the company is permitted to have outstanding by its regulatory authorities. The total number of the sublimit reallocations may not exceed eight per year during the term of the facility. | |||||||||||||||||
The interest rate payable by each company on utilized funds is, at the borrowing company’s election, (i) the greater of the prevailing prime rate, the federal funds effective rate plus 0.5% and the one month London Interbank Offered Rate plus 1.0%, or (ii) the prevailing Eurodollar rate, plus a margin that varies according to the credit rating of the borrower. | |||||||||||||||||
In order for a borrower to use the facility, certain representations and warranties must be true and correct, and the borrower must be in compliance with specified financial and other covenants, including (i) the requirement that each borrowing company maintain a ratio of total indebtedness to total capitalization of 65% or less, computed in accordance with the terms of the credit agreement, which calculation excludes from the definition of total indebtedness certain trust preferred securities and deferrable interest subordinated debt (not to exceed 15% of total capitalization), (ii) with certain exceptions, a restriction on sales or other dispositions of assets, and (iii) a restriction on the incurrence of liens on the assets of a borrower or any of its significant subsidiaries other than permitted liens. The credit agreement contains certain covenants and other customary agreements and requirements that, if not complied with, could result in an event of default and the acceleration of repayment obligations of one or more of the borrowers thereunder. Each of the borrowers was in compliance with all covenants under this facility as of December 31, 2013. | |||||||||||||||||
The absence of a material adverse change in PHI’s business, property, results of operations or financial condition is not a condition to the availability of credit under the credit agreement. The credit agreement does not include any rating triggers. | |||||||||||||||||
As of December 31, 2013 and 2012, the amount of cash plus borrowing capacity under the credit facility available to meet the liquidity needs of PHI’s utility subsidiaries in the aggregate was $332 million and $477 million, respectively. Pepco’s borrowing capacity under the credit facility at any given time depends on the amount of the subsidiary borrowing capacity being utilized by DPL and ACE and the portion of the total capacity being used by PHI. | |||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||
Debt | ' | ||||||||||||||||
(10) DEBT | |||||||||||||||||
Long-Term Debt | |||||||||||||||||
The components of long-term debt are shown in the table below: | |||||||||||||||||
Type of Debt | Interest Rate | Maturity | 2013 | 2012 | |||||||||||||
(millions of dollars) | |||||||||||||||||
First Mortgage Bonds | |||||||||||||||||
6.40% | 2013 | $ | — | $ | 250 | ||||||||||||
5.22%(a) | 2016 | 100 | 100 | ||||||||||||||
3.50% | 2023 | 300 | — | ||||||||||||||
4.00% | 2042 | 250 | 250 | ||||||||||||||
650 | 600 | ||||||||||||||||
Unsecured Tax-Exempt Bonds | |||||||||||||||||
5.40% | 2031 | 78 | 78 | ||||||||||||||
78 | 78 | ||||||||||||||||
Medium-Term Notes (unsecured) | |||||||||||||||||
7.56%-7.58% | 2017 | 14 | 14 | ||||||||||||||
6.81% | 2018 | 4 | 4 | ||||||||||||||
7.61% | 2019 | 12 | 12 | ||||||||||||||
7.72% | 2027 | 10 | 10 | ||||||||||||||
40 | 40 | ||||||||||||||||
Notes (unsecured) | |||||||||||||||||
5.00% | 2014 | 100 | 100 | ||||||||||||||
5.00% | 2015 | 100 | 100 | ||||||||||||||
200 | 200 | ||||||||||||||||
Total long-term debt | 968 | 918 | |||||||||||||||
Net unamortized discount | (1 | ) | (1 | ) | |||||||||||||
Current portion of long-term debt | (100 | ) | (250 | ) | |||||||||||||
Total net long-term debt | $ | 867 | $ | 667 | |||||||||||||
(a) | Represents a series of Collateral First Mortgage Bonds securing a series of debt securities issued by DPL. | ||||||||||||||||
The outstanding first mortgage bonds issued by DPL are issued under a Mortgage and Deed of Trust and are secured by a first lien on substantially all of DPL’s property, plant and equipment, except for certain property excluded from the lien of the mortgage. | |||||||||||||||||
Maturities of DPL’s long-term debt outstanding at December 31, 2013 are $100 million for each year 2014 through 2016, $14 million in 2017, $4 million in 2018 and $650 million thereafter. | |||||||||||||||||
DPL’s long-term debt is subject to certain covenants. As of December 31, 2013, DPL is in compliance with all such covenants. | |||||||||||||||||
The table above does not separately identify $100 million in aggregate principal amount of debt securities issued by DPL. These debt securities are secured by a like amount of first mortgage bonds (Collateral First Mortgage Bonds) of DPL. The principal terms of each such series of debt securities, are identical to the same terms of the corresponding series of Collateral First Mortgage Bonds. Payments of principal and interest made on a series of such debt securities, satisfy the corresponding obligations on the related series of Collateral First Mortgage Bonds. For these reasons, each such series of Collateral First Mortgage Bonds and the corresponding debt securities together effectively represent a single financial obligation and are not identified in the table above separately. | |||||||||||||||||
Bond Issuances | |||||||||||||||||
During 2013, DPL issued $300 million of 3.50% first mortgage bonds due November 15, 2023. The net proceeds from the issuance of the long-term debt were used to repay at maturity $250 million of 6.40% first mortgage bonds, plus accrued but unpaid interest thereon, to repay outstanding commercial paper and for general corporate purposes. | |||||||||||||||||
Bond Redemptions | |||||||||||||||||
During 2013, DPL repaid at maturity $250 million of its 6.40% first mortgage bonds. | |||||||||||||||||
Short-Term Debt | |||||||||||||||||
DPL has traditionally used a number of sources to fulfill short-term funding needs, such as commercial paper, short-term notes, and bank lines of credit. Proceeds from short-term borrowings are used primarily to meet working capital needs, but may also be used to temporarily fund long-term capital requirements. The components of DPL’s short-term debt at December 31, 2013 and 2012 are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(millions of dollars) | |||||||||||||||||
Variable rate demand bonds | $ | 105 | $ | 105 | |||||||||||||
Commercial paper | 147 | 32 | |||||||||||||||
$ | 252 | $ | 137 | ||||||||||||||
Commercial Paper | |||||||||||||||||
DPL maintains an ongoing commercial paper program to address its short-term liquidity needs. As of December 31, 2013, the maximum capacity available under the program was $500 million, subject to available borrowing capacity under the credit facility. | |||||||||||||||||
DPL had $147 million and $32 million of commercial paper outstanding at December 31, 2013 and 2012, respectively. The weighted average interest rates for commercial paper issued by DPL during 2013 and 2012 were 0.29% and 0.43%, respectively. The weighted average maturity of all commercial paper issued by DPL during 2013 and 2012 was three days and four days, respectively. | |||||||||||||||||
Variable Rate Demand Bonds | |||||||||||||||||
Variable Rate Demand Bonds (VRDBs) are subject to repayment on the demand of the holders and, for this reason, are accounted for as short-term debt in accordance with GAAP. However, bonds submitted for purchase are remarketed by a remarketing agent on a best efforts basis. DPL expects that any bonds submitted for purchase will continue to be remarketed successfully due to the creditworthiness of the company and because the remarketing agent resets the interest rate to the then-current market rate. The bonds may be converted to a fixed rate, fixed term option to establish a maturity which corresponds to the date of final maturity of the bonds. On this basis, DPL views VRDBs as a source of long-term financing. The VRDBs outstanding in 2013 mature as follows: 2017 ($26 million), 2024 ($33 million), 2028 ($16 million), and 2029 ($30 million). The weighted average interest rate for VRDBs was 0.26% during 2013 and 0.38% during 2012. As of December 31, 2013, $105 million in VRDBs issued on behalf of DPL were outstanding (of which $72 million were secured by Collateral First Mortgage Bonds issued by DPL). | |||||||||||||||||
Credit Facility | |||||||||||||||||
PHI, Pepco, DPL and ACE maintain an unsecured syndicated credit facility to provide for their respective liquidity needs, including obtaining letters of credit, borrowing for general corporate purposes and supporting their commercial paper programs. On August 1, 2011, PHI, Pepco, DPL and ACE entered into an amended and restated credit agreement which, on August 2, 2012, was amended to extend the term of the credit facility to August 1, 2017 and to amend the pricing schedule to decrease certain fees and interest rates payable to the lenders under the facility. On August 1, 2013, as permitted under the existing terms of the credit agreement, a request by PHI, Pepco, DPL and ACE to extend the credit facility termination date to August 1, 2018 was approved. All of the terms and conditions as well as pricing remained the same. | |||||||||||||||||
The aggregate borrowing limit under the amended and restated credit facility is $1.5 billion, all or any portion of which may be used to obtain loans and up to $500 million of which may be used to obtain letters of credit. The facility also includes a swingline loan sub-facility, pursuant to which each company may make same day borrowings in an aggregate amount not to exceed 10% of the total amount of the facility. Any swingline loan must be repaid by the borrower within fourteen days of receipt. The credit sublimit is $750 million for PHI and $250 million for each of Pepco, DPL and ACE. The sublimits may be increased or decreased by the individual borrower during the term of the facility, except that (i) the sum of all of the borrower sublimits following any such increase or decrease must equal the total amount of the facility, and (ii) the aggregate amount of credit used at any given time by (a) PHI may not exceed $1.25 billion, and (b) each of Pepco, DPL or ACE may not exceed the lesser of $500 million or the maximum amount of short-term debt the company is permitted to have outstanding by its regulatory authorities. The total number of the sublimit reallocations may not exceed eight per year during the term of the facility. | |||||||||||||||||
The interest rate payable by each company on utilized funds is, at the borrowing company’s election, (i) the greater of the prevailing prime rate, the federal funds effective rate plus 0.5% and the one month London Interbank Offered Rate plus 1.0%, or (ii) the prevailing Eurodollar rate, plus a margin that varies according to the credit rating of the borrower. | |||||||||||||||||
In order for a borrower to use the facility, certain representations and warranties must be true and correct, and the borrower must be in compliance with specified financial and other covenants, including (i) the requirement that each borrowing company maintain a ratio of total indebtedness to total capitalization of 65% or less, computed in accordance with the terms of the credit agreement, which calculation excludes from the definition of total indebtedness certain trust preferred securities and deferrable interest subordinated debt (not to exceed 15% of total capitalization), (ii) with certain exceptions, a restriction on sales or other dispositions of assets, and (iii) a restriction on the incurrence of liens on the assets of a borrower or any of its significant subsidiaries other than permitted liens. The credit agreement contains certain covenants and other customary agreements and requirements that, if not complied with, could result in an event of default and the acceleration of repayment obligations of one or more of the borrowers thereunder. Each of the borrowers was in compliance with all covenants under this facility as of December 31, 2013. | |||||||||||||||||
The absence of a material adverse change in PHI’s business, property, results of operations or financial condition is not a condition to the availability of credit under the credit agreement. The credit agreement does not include any rating triggers. | |||||||||||||||||
As of December 31, 2013 and 2012, the amount of cash plus borrowing capacity under the credit facility available to meet the liquidity needs of PHI’s utility subsidiaries in the aggregate was $332 million and $477 million, respectively. DPL’s borrowing capacity under the credit facility at any given time depends on the amount of the subsidiary borrowing capacity being utilized by Pepco and ACE and the portion of the total capacity being used by PHI. | |||||||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||
Debt | ' | ||||||||||||||||
(9) DEBT | |||||||||||||||||
Long-Term Debt | |||||||||||||||||
The components of long-term debt are shown in the table below: | |||||||||||||||||
Type of Debt | Interest Rate | Maturity | 2013 | 2012 | |||||||||||||
(millions of dollars) | |||||||||||||||||
First Mortgage Bonds | |||||||||||||||||
6.63 | % | 2013 | $ | — | $ | 69 | |||||||||||
7.63 | % (a) | 2014 | 7 | 7 | |||||||||||||
7.68 | % (a) | 2015-2016 | 17 | 17 | |||||||||||||
7.75 | % | 2018 | 250 | 250 | |||||||||||||
6.8 | % (b)(c) | 2021 | 39 | 39 | |||||||||||||
4.35 | % | 2021 | 200 | 200 | |||||||||||||
4.875 | % (d)(c) | 2029 | 23 | 23 | |||||||||||||
5.8 | % (b)(e) | 2034 | 120 | 120 | |||||||||||||
5.8 | % (b)(e) | 2036 | 105 | 105 | |||||||||||||
761 | 830 | ||||||||||||||||
Variable Rate Term Loan | 100 | — | |||||||||||||||
Total long-term debt | 861 | 830 | |||||||||||||||
Net unamortized discount | (1 | ) | (1 | ) | |||||||||||||
Current portion of long-term debt | (107 | ) | (69 | ) | |||||||||||||
Total net long-term debt | $ | 753 | $ | 760 | |||||||||||||
(a) | Represents a series of Collateral First Mortgage Bonds securing a series of medium term notes issued by ACE. | ||||||||||||||||
(b) | Represents a series of Collateral First Mortgage Bonds (as defined herein) which must be cancelled and released as security for ACE’s obligations under the corresponding series of issuer notes (as defined herein) or tax-exempt bonds, at such time as ACE does not have any first mortgage bonds outstanding (other than its Collateral First Mortgage Bonds). | ||||||||||||||||
(c) | Represents a series of Collateral First Mortgage Bonds securing a series of tax-exempt bonds issued for the benefit of ACE. | ||||||||||||||||
(d) | Represents a series of Collateral First Mortgage Bonds which must be cancelled and released as security for ACE’s obligations under the corresponding series of issuer notes or tax-exempt bonds, at such time as ACE does not have any first mortgage bonds outstanding (other than its Collateral First Mortgage Bonds), except that ACE may not permit such release of collateral unless ACE substitutes comparable obligations for such collateral. | ||||||||||||||||
(e) | Represents a series of Collateral First Mortgage Bonds securing a series of senior notes issued by ACE. | ||||||||||||||||
The outstanding first mortgage bonds issued by ACE are issued under a mortgage and deed of trust and are secured by a first lien on substantially all of ACE’s property, plant and equipment, except for certain property excluded from the lien of the mortgage. | |||||||||||||||||
Maturities of ACE’s long-term debt outstanding at December 31, 2013 are $107 million in 2014, $15 million in 2015, $2 million in 2016, zero in 2017, $250 million in 2018 and $487 million thereafter. | |||||||||||||||||
ACE’s long-term debt is subject to certain covenants. As of December 31, 2013, ACE was in compliance with all such covenants. | |||||||||||||||||
The table above which does not separately identify $249 million in aggregate principal amount of senior notes and medium term notes (issuer notes) issued by ACE and $62 million in aggregate principal amount of tax-exempt bonds issued for the benefit of ACE. These issuer notes and tax-exempt bonds are secured by a like amount of first mortgage bonds (Collateral First Mortgage Bonds) of ACE. The principal terms of each such series of issuer notes, or ACE’s obligations in respect of each such series of tax-exempt bonds, are identical to the same terms of the corresponding series of Collateral First Mortgage Bonds. Payments of principal and interest made on a series of such issuer notes, or the satisfaction of ACE obligations in respect of a series of such tax-exempt bonds, satisfy the corresponding obligations on the related series of Collateral First Mortgage Bonds. For these reasons, each such series of Collateral First Mortgage Bonds and the corresponding issuer notes or tax-exempt bonds together effectively represent a single financial obligation and are not identified in the table above separately. | |||||||||||||||||
Bond Redemptions | |||||||||||||||||
During 2013, ACE repaid at maturity $69 million of its 6.63% non-callable first mortgage bonds. ACE also funded the redemption, prior to maturity, of $4 million of outstanding weekly variable rate pollution control revenue refunding bonds due 2017, issued by the Pollution Control Financing Authority of Salem County, New Jersey for ACE’s benefit. | |||||||||||||||||
Term Loan Agreement | |||||||||||||||||
On May 10, 2013, ACE entered into a $100 million term loan agreement, pursuant to which ACE has borrowed (and may not re-borrow) $100 million at a rate of interest equal to the prevailing Eurodollar rate, which is determined by reference to the London Interbank Offered Rate (LIBOR) with respect to the relevant interest period, all as defined in the loan agreement, plus a margin of 0.75%. ACE’s Eurodollar borrowings under the loan agreement may be converted into floating rate loans under certain circumstances, and, in that event, for so long as any loan remains a floating rate loan, interest would accrue on that loan at a rate per year equal to (i) the highest of (a) the prevailing prime rate, (b) the federal funds effective rate plus 0.5%, or (c) the one-month Eurodollar rate plus 1%, plus (ii) a margin of 0.75%. As of December 31, 2013, outstanding borrowings under the loan agreement bore interest at an annual rate of 0.92%, which is subject to adjustment from time to time. All borrowings under the loan agreement are unsecured, and the aggregate principal amount of all loans, together with any accrued but unpaid interest due under the loan agreement, must be repaid in full on or before November 10, 2014. | |||||||||||||||||
Under the terms of the term loan agreement, ACE must maintain compliance with specified covenants, including (i) the requirement that ACE maintain a ratio of total indebtedness to total capitalization of 65% or less, computed in accordance with the terms of the loan agreement, which calculation excludes from the definition of total indebtedness certain trust preferred securities and deferrable interest subordinated debt (not to exceed 15% of total capitalization), (ii) a restriction on sales or other dispositions of assets, other than certain permitted sales and dispositions, and (iii) a restriction on the incurrence of liens (other than liens permitted by the loan agreement) on the assets of ACE. The loan agreement does not include any rating triggers. ACE was in compliance with all covenants under this loan agreement as of December 31, 2013. | |||||||||||||||||
Transition Bonds Issued by ACE Funding | |||||||||||||||||
The components of transition bonds are shown in the table below: | |||||||||||||||||
Type of Debt | Interest Rate | Maturity | 2013 | 2012 | |||||||||||||
(millions of dollars) | |||||||||||||||||
Transition Bonds | |||||||||||||||||
4.46 | % | 2016 | $ | 8 | $ | 19 | |||||||||||
4.91 | % | 2017 | 46 | 75 | |||||||||||||
5.05 | % | 2020 | 54 | 54 | |||||||||||||
5.55 | % | 2023 | 147 | 147 | |||||||||||||
255 | 295 | ||||||||||||||||
Current portion of long-term debt | (41 | ) | (39 | ) | |||||||||||||
Total net long-term Transition Bonds | $ | 214 | $ | 256 | |||||||||||||
For a description of the Transition Bonds, see Note (16), “Variable Interest Entities – ACE Funding.” Maturities of ACE’s Transition Bonds outstanding at December 31, 2013 are $41 million in 2014, $44 million in 2015, $46 million in 2016, $35 million in 2017, $31 million in 2018 and $58 million thereafter. | |||||||||||||||||
Short-Term Debt | |||||||||||||||||
ACE has traditionally used a number of sources to fulfill short-term funding needs, such as commercial paper, short-term notes, and bank lines of credit. Proceeds from short-term borrowings are used primarily to meet working capital needs, but may also be used to temporarily fund long-term capital requirements. The components of ACE’s short-term debt at December 31, 2013 and 2012 are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(millions of dollars) | |||||||||||||||||
Commercial paper | $ | 120 | $ | 110 | |||||||||||||
Variable rate demand bonds | 18 | 23 | |||||||||||||||
Total | $ | 138 | $ | 133 | |||||||||||||
Commercial Paper | |||||||||||||||||
ACE maintains an ongoing commercial paper program to address its short-term liquidity needs. As of December 31, 2013, the maximum capacity available under the program was $350 million, subject to available borrowing capacity under the credit facility. | |||||||||||||||||
ACE had $120 million and $110 million of commercial paper outstanding at December 31, 2013 and 2012, respectively. The weighted average interest rates for commercial paper issued by ACE during 2013 and 2012 were 0.31% and 0.41%, respectively. The weighted average maturity of all commercial paper issued by ACE during 2013 and 2012 was four days and three days, respectively. | |||||||||||||||||
Variable Rate Demand Bonds | |||||||||||||||||
Variable Rate Demand Bonds (VRDBs) are subject to repayment on the demand of the holders and, for this reason, are accounted for as short-term debt in accordance with GAAP. However, bonds submitted for purchase are remarketed by a remarketing agent on a best efforts basis. ACE expects that any bonds submitted for purchase will be remarketed successfully due to the creditworthiness of the company and because the remarketing resets the interest rate to the then-current market rate. The bonds may be converted to a fixed rate, fixed term option to establish a maturity which corresponds to the date of final maturity of the bonds. On this basis, ACE views VRDBs as a source of long-term financing. As of December 31, 2013, $18 million of VRDBs issued on behalf of ACE were outstanding. The outstanding VRDBs all mature in 2014. The weighted average interest rate for VRDBs was 0.11% and 0.18% during 2013 and 2012, respectively. | |||||||||||||||||
Credit Facility | |||||||||||||||||
PHI, Pepco, DPL and ACE maintain an unsecured syndicated credit facility to provide for their respective liquidity needs, including obtaining letters of credit, borrowing for general corporate purposes and supporting their commercial paper programs. On August 1, 2011, PHI, Pepco, DPL and ACE entered into an amended and restated credit agreement which, on August 2, 2012, was amended to extend the term of the credit facility to August 1, 2017 and to amend the pricing schedule to decrease certain fees and interest rates payable to the lenders under the facility. On August 1, 2013, as permitted under the existing terms of the credit agreement, a request by PHI, Pepco, DPL and ACE to extend the credit facility termination date to August 1, 2018 was approved. All of the terms and conditions as well as pricing remained the same. | |||||||||||||||||
The aggregate borrowing limit under the amended and restated credit facility is $1.5 billion, all or any portion of which may be used to obtain loans and up to $500 million of which may be used to obtain letters of credit. The facility also includes a swingline loan sub-facility, pursuant to which each company may make same day borrowings in an aggregate amount not to exceed 10% of the total amount of the facility. Any swingline loan must be repaid by the borrower within fourteen days of receipt. The credit sublimit is $750 million for PHI and $250 million for each of Pepco, DPL and ACE. The sublimits may be increased or decreased by the individual borrower during the term of the facility, except that (i) the sum of all of the borrower sublimits following any such increase or decrease must equal the total amount of the facility, and (ii) the aggregate amount of credit used at any given time by (a) PHI may not exceed $1.25 billion, and (b) each of Pepco, DPL or ACE may not exceed the lesser of $500 million or the maximum amount of short-term debt the company is permitted to have outstanding by its regulatory authorities. The total number of the sublimit reallocations may not exceed eight per year during the term of the facility. | |||||||||||||||||
The interest rate payable by each company on utilized funds is, at the borrowing company’s election, (i) the greater of the prevailing prime rate, the federal funds effective rate plus 0.5% and the one month LIBOR plus 1.0%, or (ii) the prevailing Eurodollar rate, plus a margin that varies according to the credit rating of the borrower. | |||||||||||||||||
In order for a borrower to use the facility, certain representations and warranties must be true and correct, and the borrower must be in compliance with specified financial and other covenants, including (i) the requirement that each borrowing company maintain a ratio of total indebtedness to total capitalization of 65% or less, computed in accordance with the terms of the credit agreement, which calculation excludes from the definition of total indebtedness certain trust preferred securities and deferrable interest subordinated debt (not to exceed 15% of total capitalization), (ii) with certain exceptions, a restriction on sales or other dispositions of assets, and (iii) a restriction on the incurrence of liens on the assets of a borrower or any of its significant subsidiaries other than permitted liens. The credit agreement contains certain covenants and other customary agreements and requirements that, if not complied with, could result in an event of default and the acceleration of repayment obligations of one or more of the borrowers thereunder. Each of the borrowers was in compliance with all covenants under this facility at December 31, 2013. | |||||||||||||||||
The absence of a material adverse change in PHI’s business, property, results of operations or financial condition is not a condition to the availability of credit under the credit agreement. The credit agreement does not include any rating triggers. | |||||||||||||||||
As of December 31, 2013 and 2012, the amount of cash plus borrowing capacity under the credit facility available to meet the liquidity needs of PHI’s utility subsidiaries in the aggregate was $332 million and $477 million, respectively. ACE’s borrowing capacity under the credit facility at any given time depends on the amount of the subsidiary borrowing capacity being utilized by Pepco and DPL and the portion of the total capacity being used by PHI. | |||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
(11) INCOME TAXES | |||||||||||||||||||||||||
PHI and the majority of its subsidiaries file a consolidated federal income tax return. Federal income taxes are allocated among PHI and the subsidiaries included in its consolidated group pursuant to a written tax sharing agreement that was approved by the SEC in 2002 in connection with the establishment of PHI as a public utility holding company. Under this tax sharing agreement, PHI’s consolidated federal income tax liability is allocated based upon PHI’s and its subsidiaries’ separate taxable income or loss. | |||||||||||||||||||||||||
The provision for consolidated income taxes, reconciliation of consolidated income tax expense, and components of consolidated deferred tax liabilities (assets) are shown below. | |||||||||||||||||||||||||
Provision for Consolidated Income Taxes – Continuing Operations | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Current Tax (Benefit) Expense | |||||||||||||||||||||||||
Federal | $ | (128 | ) | $ | (166 | ) | $ | (72 | ) | ||||||||||||||||
State and local | (9 | ) | (40 | ) | 12 | ||||||||||||||||||||
Total Current Tax (Benefit) Expense | (137 | ) | (206 | ) | (60 | ) | |||||||||||||||||||
Deferred Tax Expense (Benefit) | |||||||||||||||||||||||||
Federal | 393 | 254 | 163 | ||||||||||||||||||||||
State and local | 65 | 58 | 15 | ||||||||||||||||||||||
Investment tax credit amortization | (2 | ) | (3 | ) | (4 | ) | |||||||||||||||||||
Total Deferred Tax Expense | 456 | 309 | 174 | ||||||||||||||||||||||
Total Consolidated Income Tax Expense Related to Continuing Operations | $ | 319 | $ | 103 | $ | 114 | |||||||||||||||||||
Reconciliation of Consolidated Income Tax Expense – Continuing Operations | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Income tax at Federal statutory rate | $ | 150 | 35 | % | $ | 112 | 35 | % | $ | 118 | 35 | % | |||||||||||||
Increases (decreases) resulting from: | |||||||||||||||||||||||||
State income taxes, net of Federal effect | 27 | 6.3 | % | 19 | 6 | % | 23 | 6.7 | % | ||||||||||||||||
Asset removal costs | (14 | ) | (3.3 | )% | (11 | ) | (3.4 | )% | (7 | ) | (2.1 | )% | |||||||||||||
Change in estimates and interest related to uncertain and effectively settled tax positions | 56 | 13.1 | % | (8 | ) | (2.6 | )% | (5 | ) | (1.6 | )% | ||||||||||||||
Establishment of valuation allowances related to deferred tax assets | 101 | 23.5 | % | — | — | — | — | ||||||||||||||||||
Other, net | (1 | ) | (0.2 | )% | (9 | ) | (2.9 | )% | (15 | ) | (4.1 | )% | |||||||||||||
Consolidated Income Tax Expense Related to Continuing Operations | $ | 319 | 74.4 | % | $ | 103 | 32.1 | % | $ | 114 | 33.9 | % | |||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||
PHI’s consolidated effective income tax rate for the year ended December 31, 2013 of 74.4% reflects a charge of $56 million for changes in estimates and interest related to uncertain and effectively settled tax positions recorded in the first quarter of 2013 and the establishment of valuation allowances of $101 million in the first quarter of 2013 against certain deferred tax assets in PCI, which is now included in Corporate and Other. The income tax charge of $56 million is primarily related to the anticipated additional interest expense on estimated federal and state income tax obligations that was allocated to PHI’s continuing operations resulting from a change in assessment of tax benefits associated with the former cross-border energy lease investments of PCI. | |||||||||||||||||||||||||
Between 1990 and 1999, PCI, through various subsidiaries, entered into certain transactions involving investments in aircraft and aircraft equipment, railcars and other assets. In connection with these transactions, PCI recorded deferred tax assets in prior years of $101 million in the aggregate. Following events that took place during the first quarter of 2013, which included (i) court decisions in favor of the IRS with respect to both Consolidated Edison’s cross-border lease transaction (as discussed in Note (19), “Discontinued Operations – Cross-Border Energy Lease Investments”) and another taxpayer’s structured transactions, (ii) the change in PHI’s tax position with respect to the tax benefits associated with its cross-border energy leases, and (iii) PHI’s decision in March 2013 to begin to pursue the early termination of its remaining cross-border energy lease investments (which represented a substantial portion of the remaining assets within PCI) without the intent to reinvest these proceeds in income-producing assets, management evaluated the likelihood that PCI would be able to realize the $101 million of deferred tax assets in the future. Based on this evaluation, PCI established valuation allowances against these deferred tax assets totaling $101 million in the first quarter of 2013. Further, during the fourth quarter of 2013, in light of additional court decisions in favor of the IRS involving other taxpayers, and after consideration of all relevant factors, management determined that it would abandon the further pursuit of these deferred tax assets, and these assets totaling $101 million were charged off against the previously established valuation allowances. | |||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||
PHI’s consolidated effective income tax rate for the year ended December 31, 2012 of 32.1% includes income tax benefits totaling $8 million related to uncertain and effectively settled tax positions, primarily due to the effective settlement with the IRS in the first quarter of 2012 with respect to the methodology used historically to calculate deductible mixed service costs and the expiration of the statute of limitations associated with an uncertain tax position in Pepco. The rate for the year ended December 31, 2012 also reflects an increase in deductible asset removal costs for Pepco in 2012 related to a higher level of asset retirements. | |||||||||||||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||||||
PHI’s consolidated effective income tax rate for the year ended December 31, 2011 of 33.9% includes income tax benefits totaling $5 million related to uncertain and effectively settled tax positions. In 2011, PHI reached a settlement with the IRS with respect to interest due on its federal tax liabilities related to the November 2010 audit settlement for years 1996 through 2002. In connection with this agreement, PHI reallocated certain amounts that have been on deposit with the IRS since 2006 among liabilities in the settlement years and subsequent years and recorded the tax benefits, primarily in the second quarter of 2011. | |||||||||||||||||||||||||
In addition, as discussed further in Note (15), “Commitments and Contingencies – District of Columbia Tax Legislation,” on June 14, 2011, the Council of the District of Columbia approved the Fiscal Year 2012 Budget Support Act of 2011 (the Budget Support Act). The Budget Support Act includes a provision that requires corporate taxpayers in the District of Columbia to calculate taxable income allocable or apportioned to the District by reference to the income and apportionment factors applicable to commonly controlled entities organized within the United States that are engaged in a unitary business. Previously, only the income of companies with direct nexus to the District of Columbia was taxed. As a result of the change, during 2011 PHI recorded additional state income tax expense of $2 million. | |||||||||||||||||||||||||
Components of Consolidated Deferred Tax Liabilities (Assets) | |||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Deferred Tax Liabilities (Assets) | |||||||||||||||||||||||||
Depreciation and other basis differences related to plant and equipment | $ | 2,628 | $ | 2,299 | |||||||||||||||||||||
Deferred electric service and electric restructuring liabilities | 91 | 110 | |||||||||||||||||||||||
Cross-border energy lease investments | (6 | ) | 756 | ||||||||||||||||||||||
Federal and state net operating losses | (350 | ) | (394 | ) | |||||||||||||||||||||
Valuation allowances on state net operating losses | 21 | 21 | |||||||||||||||||||||||
Pension and other postretirement benefits | 135 | 128 | |||||||||||||||||||||||
Deferred taxes on amounts to be collected through future rates | 75 | 58 | |||||||||||||||||||||||
Other (a) | 285 | 204 | (b) | ||||||||||||||||||||||
Total Deferred Tax Liabilities, net | 2,879 | 3,182 | (b) | ||||||||||||||||||||||
Deferred tax assets included in Current Assets | 51 | 28 | |||||||||||||||||||||||
Deferred tax liabilities included in Other Current Liabilities | (2 | ) | (2 | ) | |||||||||||||||||||||
Total Consolidated Deferred Tax Liabilities, net non-current | $ | 2,928 | $ | 3,208 | (b) | ||||||||||||||||||||
(a) | PCI established valuation allowances against certain of these other deferred taxes totaling $101 million in the first quarter of 2013. Management determined during the fourth quarter of 2013 to abandon the further pursuit of the related deferred tax assets and, accordingly, these assets were charged off against the valuation allowances. | ||||||||||||||||||||||||
(b) | The amounts for Other, Total Deferred Tax Liabilities, net and Total Consolidated Deferred Tax Liabilities, net non-current, are presented after the effect of the revision to prior period financial statements discussed in Note (2), “ Significant Accounting Policies – Revision to Prior Period Financial Statements.” | ||||||||||||||||||||||||
The net deferred tax liability represents the tax effect, at presently enacted tax rates, of temporary differences between the financial statement basis and tax basis of assets and liabilities. The portion of the net deferred tax liability applicable to PHI’s utility operations, which has not been reflected in current service rates, represents income taxes recoverable through future rates, net, and is recorded as a Regulatory asset on the balance sheet. Federal and state net operating losses generally expire over 20 years from 2029 to 2032. | |||||||||||||||||||||||||
The Tax Reform Act of 1986 repealed the investment tax credit for property placed in service after December 31, 1985, except for certain transition property. Investment tax credits previously earned on Pepco’s, DPL’s and ACE’s property continue to be amortized to income over the useful lives of the related property. | |||||||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Balance as of January 1, | $ | 200 | $ | 357 | $ | 395 | |||||||||||||||||||
Tax positions related to current year: | |||||||||||||||||||||||||
Additions | 3 | 1 | 2 | ||||||||||||||||||||||
Reductions | — | — | — | ||||||||||||||||||||||
Tax positions related to prior years: | |||||||||||||||||||||||||
Additions | 646 | (a) | 79 | 20 | |||||||||||||||||||||
Reductions | (12 | ) | (235 | )(b) | (57 | ) | |||||||||||||||||||
Settlements | (6 | ) | (2 | ) | (3 | ) | |||||||||||||||||||
Balance as of December 31, | $ | 831 | $ | 200 | $ | 357 | |||||||||||||||||||
(a) | These additions of unrecognized tax benefits in 2013 primarily relate to the cross-border energy lease investments of PCI. | ||||||||||||||||||||||||
(b) | These reductions of unrecognized tax benefits in 2012 primarily relate to a resolution reached with the IRS for determining deductible mixed service costs for additions to property, plant and equipment. | ||||||||||||||||||||||||
Unrecognized Benefits That, If Recognized, Would Affect the Effective Tax Rate | |||||||||||||||||||||||||
Unrecognized tax benefits are related to tax positions that have been taken or are expected to be taken in tax returns that are not recognized in the financial statements because management has either measured the tax benefit at an amount less than the benefit claimed or expected to be claimed, or has concluded that it is not more likely than not that the tax position will be ultimately sustained. For the majority of these tax positions, the ultimate deductibility is highly certain, but there is uncertainty about the timing of such deductibility. Unrecognized tax benefits at December 31, 2013 included $9 million that, if recognized, would lower the effective tax rate. | |||||||||||||||||||||||||
Interest and Penalties | |||||||||||||||||||||||||
PHI recognizes interest and penalties relating to its uncertain tax positions as an element of income tax expense. For the years ended December 31, 2013, 2012 and 2011, PHI recognized $125 million of pre-tax interest expense ($75 million after-tax), $23 million of pre-tax interest income ($14 million after-tax), and $23 million of pre-tax interest income ($14 million after-tax), respectively, as a component of income tax expense related to continuing and discontinued operations. As of December 31, 2013, 2012 and 2011, PHI had accrued interest receivable of $2 million, accrued interest receivable of $10 million and accrued interest payable of $4 million, respectively, related to effectively settled and uncertain tax positions. | |||||||||||||||||||||||||
Possible Changes to Unrecognized Tax Benefits | |||||||||||||||||||||||||
It is reasonably possible that the amount of unrecognized tax benefits with respect to PHI’s uncertain tax positions will significantly increase or decrease within the next 12 months. In order to mitigate the cost of continued litigation of tax matters related to the former cross-border energy lease investments, PHI and its subsidiaries have entered into discussions with the IRS with the intention of seeking a settlement of all tax issues for open tax years 2001 through 2011. PHI currently believes that it is possible that a settlement with the IRS may be reached in 2014, which could significantly impact the balances of unrecognized tax benefits and the related interest accruals. At this time, it is estimated that there will be a $700 million to $800 million decrease in unrecognized tax benefits within the next 12 months. See Note (15), “Commitments and Contingencies – PHI’s Cross-Border Energy Lease Investments,” for additional discussion. | |||||||||||||||||||||||||
Tax Years Open to Examination | |||||||||||||||||||||||||
PHI’s federal income tax liabilities for Pepco legacy companies for all years through 2002, and for Conectiv legacy companies for all years through 2002, have been determined by the IRS, subject to adjustment to the extent of any net operating loss or other loss or credit carrybacks from subsequent years. PHI has not reached final settlement with the IRS with respect to the cross-border energy lease deductions. The open tax years for the significant states where PHI files state income tax returns (District of Columbia, Maryland, Delaware, New Jersey, Pennsylvania and Virginia) are the same as for the Federal returns. | |||||||||||||||||||||||||
Final IRS Regulations on Repair of Tangible Property | |||||||||||||||||||||||||
In September 2013, the IRS issued final regulations on expense versus capitalization of repairs with respect to tangible personal property. The regulations are effective for tax years beginning on or after January 1, 2014, and provide an option to early adopt the final regulations for tax years beginning on or after January 1, 2012. It is expected that the IRS will issue revenue procedures that will describe how taxpayers may implement the final regulations. The final repair regulations retain the operative rule that the Unit of Property for network assets is determined by the taxpayer’s particular facts and circumstances except as provided in published guidance. In 2012, with the filing of its 2011 tax return, PHI filed a request for an automatic change in accounting method related to repairs of its network assets in accordance with IRS Revenue Procedure 2011-43. PHI does not expect the effects of the final regulations to be significant and will continue to evaluate the impact of the new guidance on its consolidated financial statements. | |||||||||||||||||||||||||
Other Taxes | |||||||||||||||||||||||||
Other taxes for continuing operations are shown below. The annual amounts include $422 million, $426 million and $445 million for the years ended December 31, 2013, 2012 and 2011, respectively, related to Power Delivery, which are recoverable through rates. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Gross Receipts/Delivery | $ | 133 | $ | 135 | $ | 145 | |||||||||||||||||||
Property | 77 | 75 | 71 | ||||||||||||||||||||||
County Fuel and Energy | 153 | 160 | 170 | ||||||||||||||||||||||
Environmental, Use and Other | 65 | 62 | 65 | ||||||||||||||||||||||
Total | $ | 428 | $ | 432 | $ | 451 | |||||||||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
(10) INCOME TAXES | |||||||||||||||||||||||||
Pepco, as a direct subsidiary of PHI, is included in the consolidated federal income tax return of PHI. Federal income taxes are allocated to Pepco pursuant to a written tax sharing agreement that was approved by the Securities and Exchange Commission in connection with the establishment of PHI as a holding company. Under this tax sharing agreement, PHI’s consolidated federal income tax liability is allocated based upon PHI’s and its subsidiaries’ separate taxable income or loss. | |||||||||||||||||||||||||
The provision for income taxes, reconciliation of income tax expense, and components of deferred income tax liabilities (assets) are shown below. | |||||||||||||||||||||||||
Provision for Income Taxes | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Current Tax Benefit | |||||||||||||||||||||||||
Federal | $ | (39 | ) | $ | (84 | ) | $ | (19 | ) | ||||||||||||||||
State and local | (1 | ) | (27 | ) | (16 | ) | |||||||||||||||||||
Total Current Tax Benefit | (40 | ) | (111 | ) | (35 | ) | |||||||||||||||||||
Deferred Tax Expense (Benefit) | |||||||||||||||||||||||||
Federal | 96 | 127 | 54 | ||||||||||||||||||||||
State and local | 24 | 33 | 19 | ||||||||||||||||||||||
Investment tax credit amortization | (1 | ) | (1 | ) | (2 | ) | |||||||||||||||||||
Total Deferred Tax Expense | 119 | 159 | 71 | ||||||||||||||||||||||
Total Income Tax Expense | $ | 79 | $ | 48 | $ | 36 | |||||||||||||||||||
Reconciliation of Income Tax Expense | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Income tax at Federal statutory rate | $ | 80 | 35 | % | $ | 61 | 35 | % | $ | 47 | 35.0 | % | |||||||||||||
Increases (decreases) resulting from: | |||||||||||||||||||||||||
State income taxes, net of Federal effect | 13 | 5.7 | % | 10 | 5.7 | % | 8 | 5.5 | % | ||||||||||||||||
Asset removal costs | (14 | ) | (6.1 | )% | (11 | ) | (6.3 | )% | (7 | ) | (5.0 | )% | |||||||||||||
Change in estimates and interest related to uncertain and effectively settled tax positions | (3 | ) | (1.3 | )% | (11 | ) | (6.3 | )% | (9 | ) | (6.6 | )% | |||||||||||||
Other, net | 3 | 1.2 | % | (1 | ) | (0.5 | )% | (3 | ) | (2.2 | )% | ||||||||||||||
Income Tax Expense | $ | 79 | 34.5 | % | $ | 48 | 27.6 | % | $ | 36 | 26.7 | % | |||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||
Pepco’s effective income tax rate for the year ended December 31, 2013 of 34.5% reflects income tax benefits totaling $3 million related to uncertain and effectively settled tax positions. | |||||||||||||||||||||||||
On January 9, 2013, the U.S. Court of Appeals for the Federal Circuit issued an opinion in Consolidated Edison Company of New York, Inc. & Subsidiaries v. United States (to which Pepco is not a party) that disallowed tax benefits associated with Consolidated Edison’s cross-border lease transaction. As a result of the court’s ruling in this case, PHI determined in the first quarter of 2013 that it could no longer support its current assessment with respect to the likely outcome of tax positions associated with its cross-border energy lease investments held by its wholly-owned subsidiary Potomac Capital Investment Corporation, and PHI recorded an after-tax charge of $377 million in the first quarter of 2013. Included in the $377 million charge was an after-tax interest charge of $54 million and this amount was allocated to each member of PHI’s consolidated group as if each member was a separate taxpayer, resulting in Pepco recording a $5 million (after-tax) interest benefit in the first quarter of 2013. | |||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||
Pepco’s effective income tax rate for the year ended December 31, 2012 of 27.6% primarily reflects tax benefits related to asset removal costs and changes in estimates and interest related to uncertain and effectively settled tax positions. | |||||||||||||||||||||||||
During 2012, Pepco recorded income tax benefits of $10 million related to uncertain and effectively settled tax positions primarily due to the effective settlement with the Internal Revenue Service (IRS) with respect to the methodology used historically to calculate deductible mixed service costs and the expiration of the statute of limitations associated with an uncertain tax position. | |||||||||||||||||||||||||
The effective income tax rate also reflects an increase in deductible asset removal costs for Pepco in 2012 related to a higher level of asset retirements. | |||||||||||||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||||||
Pepco’s effective income tax rate for the year ended December 31, 2011 of 26.7% includes income tax benefits totaling $9 million related to uncertain and effectively settled tax positions. | |||||||||||||||||||||||||
During 2011, PHI reached a settlement with the IRS with respect to interest due on its federal tax liabilities related to the November 2010 audit settlement for years 1996 through 2002. In connection with this agreement, PHI reallocated certain amounts that have been on deposit with the IRS since 2006 among liabilities in the settlement years and subsequent years. Primarily related to the settlement and reallocations, Pepco recorded a tax benefit of $5 million (after-tax) in the second quarter of 2011. | |||||||||||||||||||||||||
During the third quarter of 2011, Pepco recalculated interest on its uncertain tax positions for open tax years based on different assumptions related to the application of its deposit made with the IRS in 2006. This resulted in an additional tax expense of $1 million (after-tax). | |||||||||||||||||||||||||
During 2011, Pepco decided to adopt the safe harbor tax accounting method for certain repairs pursuant to IRS guidance. As a result, Pepco reversed $23 million of previously recorded liabilities on uncertain tax positions and reversed the associated $1 million of accrued interest. | |||||||||||||||||||||||||
In May 2011, Pepco received refunds of approximately $5 million and recorded tax benefits of approximately $4 million (after-tax) related to the filing of amended state tax returns. These amended returns reduced state taxable income due to an increase in tax basis on certain prior years’ asset dispositions. | |||||||||||||||||||||||||
Components of Deferred Income Tax Liabilities (Assets) | |||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Deferred Tax Liabilities (Assets) | |||||||||||||||||||||||||
Depreciation and other basis differences related to plant and equipment | $ | 1,240 | $ | 1,105 | |||||||||||||||||||||
Pension and other postretirement benefits | 105 | 111 | |||||||||||||||||||||||
Deferred taxes on amounts to be collected through future rates | 43 | 28 | |||||||||||||||||||||||
Federal and state net operating losses | (169 | ) | (174 | ) | |||||||||||||||||||||
Other | 145 | 140 | |||||||||||||||||||||||
Total Deferred Tax Liabilities, net | 1,364 | 1,210 | |||||||||||||||||||||||
Deferred tax assets included in Current Assets | 48 | 9 | |||||||||||||||||||||||
Total Deferred Tax Liabilities, net non-current | $ | 1,412 | $ | 1,219 | |||||||||||||||||||||
The net deferred tax liability represents the tax effect, at presently enacted tax rates, of temporary differences between the financial statement basis and tax basis of assets and liabilities. The portion of the net deferred tax liability applicable to Pepco’s operations, which has not been reflected in current service rates, represents income taxes recoverable through future rates, net, and is recorded as a regulatory asset on the balance sheet. No valuation allowance for deferred tax assets was required or recorded at December 31, 2013 and 2012. Federal and state net operating losses generally expire over 20 years from 2029 to 2032. | |||||||||||||||||||||||||
The Tax Reform Act of 1986 repealed the investment tax credit for property placed in service after December 31, 1985, except for certain transition property. Investment tax credits previously earned on Pepco’s property continue to be amortized to income over the useful lives of the related property. | |||||||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Balance as of January 1 | $ | 91 | $ | 173 | $ | 190 | |||||||||||||||||||
Tax positions related to current year: | |||||||||||||||||||||||||
Additions | 1 | — | — | ||||||||||||||||||||||
Reductions | — | — | — | ||||||||||||||||||||||
Tax positions related to prior years: | |||||||||||||||||||||||||
Additions | 12 | 60 | 12 | ||||||||||||||||||||||
Reductions | (3 | ) | (142 | )(a) | (26 | ) | |||||||||||||||||||
Settlements | — | — | (3 | ) | |||||||||||||||||||||
Balance as of December 31 | $ | 101 | $ | 91 | $ | 173 | |||||||||||||||||||
(a) | These reductions of unrecognized tax benefits in 2012 primarily relate to a resolution reached with the IRS for determining deductible mixed service costs for additions to property, plant and equipment. | ||||||||||||||||||||||||
Unrecognized Benefits That, If Recognized, Would Affect the Effective Tax Rate | |||||||||||||||||||||||||
Unrecognized tax benefits are related to tax positions that have been taken or are expected to be taken in tax returns that are not recognized in the financial statements because management has either measured the tax benefit at an amount less than the benefit claimed, or expected to be claimed, or has concluded that it is not more likely than not that the tax position will be ultimately sustained. For the majority of these tax positions, the ultimate deductibility is highly certain, but there is uncertainty about the timing of such deductibility. At December 31, 2013, Pepco had less than $1 million of unrecognized tax benefits that, if recognized, would lower the effective tax rate. | |||||||||||||||||||||||||
Interest and Penalties | |||||||||||||||||||||||||
Pepco recognizes interest and penalties relating to its uncertain tax positions as an element of income tax expense. For the years ended December 31, 2013, 2012 and 2011, Pepco recognized $5 million of pre-tax interest income ($3 million after-tax), $18 million of pre-tax interest income ($11 million after-tax), and $8 million of pre-tax interest income ($5 million after-tax), respectively, as a component of income tax expense. As of December 31, 2013, 2012 and 2011, Pepco had accrued interest receivable of $9 million, accrued interest receivable of $5 million and accrued interest payable of $6 million, respectively, related to effectively settled and uncertain tax positions. | |||||||||||||||||||||||||
Possible Changes to Unrecognized Tax Benefits | |||||||||||||||||||||||||
It is reasonably possible that the amount of the unrecognized tax benefit with respect to some of Pepco’s uncertain tax positions will significantly increase or decrease within the next 12 months. PHI and its subsidiaries have entered into discussions with the IRS with the intention of seeking a settlement of all tax issues of Pepco for open tax years 2001 through 2011. PHI currently believes that it is possible that a settlement with the IRS may be reached in 2014, which could significantly impact the balances of unrecognized tax benefits and the related interest accruals of Pepco. At this time, it is estimated that there will be a $65 million to $85 million decrease in unrecognized tax benefits within the next 12 months. | |||||||||||||||||||||||||
Tax Years Open to Examination | |||||||||||||||||||||||||
Pepco, as a direct subsidiary of PHI, is included on PHI’s consolidated Federal income tax return. Pepco’s federal income tax liabilities for all years through 2002 have been determined, subject to adjustment to the extent of any net operating loss or other loss or credit carrybacks from subsequent years. The open tax years for the significant states where Pepco files state income tax returns (District of Columbia and Maryland) are the same as for the Federal returns. As a result of the final determination of these years, Pepco filed amended state returns requesting $20 million in refunds which are subject to review by the various states. To date, Pepco has received $4 million in refunds and legislation has been enacted in the District of Columbia (subject to a 30-day Congressional review period before becoming law) which will allow for the recovery of the remaining $16 million in refunds. | |||||||||||||||||||||||||
Final IRS Regulations on Repair of Tangible Property | |||||||||||||||||||||||||
In September 2013, the IRS issued final regulations on expense versus capitalization of repairs with respect to tangible personal property. The regulations are effective for tax years beginning on or after January 1, 2014, and provide an option to early adopt the final regulations for tax years beginning on or after January 1, 2012. It is expected that the IRS will issue revenue procedures that will describe how taxpayers may implement the final regulations. The final repair regulations retain the operative rule that the Unit of Property for network assets is determined by the taxpayer’s particular facts and circumstances except as provided in published guidance. In 2012, with the filing of its 2011 tax return, PHI filed a request for an automatic change in accounting method related to repairs of its network assets in accordance with IRS Revenue Procedure 2011-43. Pepco does not expect the effects of the final regulations to be significant and will continue to evaluate the impact of the new guidance on its financial statements. | |||||||||||||||||||||||||
Other Taxes | |||||||||||||||||||||||||
Taxes other than income taxes for each year are shown below. These amounts are recoverable through rates. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Gross Receipts/Delivery | $ | 108 | $ | 106 | $ | 109 | |||||||||||||||||||
Property | 45 | 46 | 44 | ||||||||||||||||||||||
County Fuel and Energy | 153 | 160 | 170 | ||||||||||||||||||||||
Environmental, Use and Other | 62 | 60 | 59 | ||||||||||||||||||||||
Total | $ | 368 | $ | 372 | $ | 382 | |||||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
(11) INCOME TAXES | |||||||||||||||||||||||||
DPL, as an indirect subsidiary of PHI, is included in the consolidated federal income tax return of PHI. Federal income taxes are allocated to DPL pursuant to a written tax sharing agreement that was approved by the Securities and Exchange Commission in connection with the establishment of PHI as a holding company. Under this tax sharing agreement, PHI’s consolidated federal income tax liability is allocated based upon PHI’s and its subsidiaries’ separate taxable income or loss. | |||||||||||||||||||||||||
The provision for income taxes, reconciliation of income tax expense, and components of deferred income tax liabilities (assets) are shown below. | |||||||||||||||||||||||||
Provision for Income Taxes | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Current Tax (Benefit) Expense | |||||||||||||||||||||||||
Federal | $ | (8 | ) | $ | (9 | ) | $ | (22 | ) | ||||||||||||||||
State and local | — | (1 | ) | 8 | |||||||||||||||||||||
Total Current Tax Benefit | (8 | ) | (10 | ) | (14 | ) | |||||||||||||||||||
Deferred Tax Expense (Benefit) | |||||||||||||||||||||||||
Federal | 53 | 44 | 53 | ||||||||||||||||||||||
State and local | 12 | 11 | 4 | ||||||||||||||||||||||
Investment tax credit amortization | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||
Total Deferred Tax Expense | 64 | 54 | 56 | ||||||||||||||||||||||
Total Income Tax Expense | $ | 56 | $ | 44 | $ | 42 | |||||||||||||||||||
Reconciliation of Income Tax Expense | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Income tax at Federal statutory rate | $ | 51 | 35 | % | $ | 41 | 35 | % | $ | 40 | 35 | % | |||||||||||||
Increases (decreases) resulting from: | |||||||||||||||||||||||||
State income taxes, net of Federal effect | 8 | 5.5 | % | 6 | 5.1 | % | 6 | 5.3 | % | ||||||||||||||||
Change in estimates and interest related to uncertain and effectively settled tax positions | — | — | — | — | (3 | ) | (2.7 | )% | |||||||||||||||||
Other, net | (3 | ) | (1.9 | )% | (3 | ) | (2.5 | )% | (1 | ) | (0.4 | )% | |||||||||||||
Income Tax Expense | $ | 56 | 38.6 | % | $ | 44 | 37.6 | % | $ | 42 | 37.2 | % | |||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||
On January 9, 2013, the U.S. Court of Appeals for the Federal Circuit issued an opinion in Consolidated Edison Company of New York, Inc. & Subsidiaries v. United States (to which DPL is not a party) that disallowed tax benefits associated with Consolidated Edison’s cross-border lease transaction. As a result of the court’s ruling in this case, PHI determined in the first quarter of 2013 that it could no longer support its current assessment with respect to the likely outcome of tax positions associated with its cross-border energy lease investments held by its wholly-owned subsidiary Potomac Capital Investment Corporation, and PHI recorded an after-tax charge of $377 million in the first quarter of 2013. Included in the $377 million charge was an after-tax interest charge of $54 million and this amount was allocated to each member of PHI’s consolidated group as if each member was a separate taxpayer, resulting in DPL recording a $1 million interest benefit in the first quarter of 2013. | |||||||||||||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||||||
During 2011, PHI reached a settlement with the Internal Revenue Service (IRS) with respect to interest due on its federal tax liabilities related to the November 2010 audit settlement for years 1996 through 2002. In connection with this agreement, PHI reallocated certain amounts that have been on deposit with the IRS since 2006 among liabilities in the settlement years and subsequent years. Primarily related to the settlement and reallocations, DPL recorded a $4 million (after-tax) interest benefit. This is partially offset by adjustments recorded in the third quarter of 2011 related to DPL’s settlement with the state taxing authorities resulting in $1 million (after-tax) of additional tax expense and the recalculation of interest on its uncertain tax positions for open tax years based on different assumptions related to the application of its deposit made with the IRS in 2006 resulting in an additional tax expense of $1 million (after-tax). | |||||||||||||||||||||||||
Components of Deferred Income Tax Liabilities (Assets) | |||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Deferred Tax Liabilities (Assets) | |||||||||||||||||||||||||
Depreciation and other basis differences related to plant and equipment | $ | 712 | $ | 623 | |||||||||||||||||||||
Deferred taxes on amounts to be collected through future rates | 16 | 15 | |||||||||||||||||||||||
Federal and state net operating losses | (125 | ) | (80 | ) | |||||||||||||||||||||
Pension and other postretirement benefits | 80 | 85 | |||||||||||||||||||||||
Electric restructuring liabilities | (5 | ) | (5 | ) | |||||||||||||||||||||
Other | 80 | 49 | |||||||||||||||||||||||
Total Deferred Tax Liabilities, net | 758 | 687 | |||||||||||||||||||||||
Deferred tax assets included in Current Assets | 59 | 11 | |||||||||||||||||||||||
Deferred tax liabilities included in Other Current Liabilities | (1 | ) | (1 | ) | |||||||||||||||||||||
Total Deferred Tax Liabilities, net non-current | $ | 816 | $ | 697 | |||||||||||||||||||||
The net deferred tax liability represents the tax effect, at presently enacted tax rates, of temporary differences between the financial statement basis and tax basis of assets and liabilities. The portion of the net deferred tax liability applicable to DPL’s operations, which has not been reflected in current service rates, represents income taxes recoverable through future rates, net, and is recorded as a regulatory asset on the balance sheet. No valuation allowance for deferred tax assets was required or recorded at December 31, 2013 and 2012. Federal and state net operating losses generally expire over 20 years from 2029 to 2032. | |||||||||||||||||||||||||
The Tax Reform Act of 1986 repealed the investment tax credit for property placed in service after December 31, 1985, except for certain transition property. Investment tax credits previously earned on DPL’s property continue to be amortized to income over the useful lives of the related property. | |||||||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Balance as of January 1 | $ | 9 | $ | 35 | $ | 40 | |||||||||||||||||||
Tax positions related to current year: | |||||||||||||||||||||||||
Additions | — | — | — | ||||||||||||||||||||||
Reductions | — | — | — | ||||||||||||||||||||||
Tax positions related to prior years: | |||||||||||||||||||||||||
Additions | — | — | 7 | ||||||||||||||||||||||
Reductions | — | (26 | )(a) | (12 | ) | ||||||||||||||||||||
Settlements | — | — | — | ||||||||||||||||||||||
Balance as of December 31 | $ | 9 | $ | 9 | $ | 35 | |||||||||||||||||||
(a) | These reductions of unrecognized tax benefits in 2012 primarily relate to a resolution reached with the IRS for determining deductible mixed service costs for additions to property, plant and equipment. | ||||||||||||||||||||||||
Unrecognized Benefits That, If Recognized, Would Affect the Effective Tax Rate | |||||||||||||||||||||||||
Unrecognized tax benefits are related to tax positions that have been taken or are expected to be taken in tax returns that are not recognized in the financial statements because management has either measured the tax benefit at an amount less than the benefit claimed, or expected to be claimed, or has concluded that it is not more likely than not that the tax position will be ultimately sustained. For the majority of these tax positions, the ultimate deductibility is highly certain, but there is uncertainty about the timing of such deductibility. At December 31, 2013, DPL had $1 million of unrecognized tax benefits that, if recognized, would lower the effective tax rate. | |||||||||||||||||||||||||
Interest and Penalties | |||||||||||||||||||||||||
DPL recognizes interest and penalties relating to its uncertain tax positions as an element of income tax expense. For the years ended December 31, 2013, 2012 and 2011, DPL recognized less than $1 million of pre-tax interest income, less than $1 million of pre-tax interest income and $6 million of pre-tax interest income ($4 million after-tax), respectively, as a component of income tax expense. As of December 31, 2013, 2012 and 2011, DPL had accrued interest receivable of $2 million, accrued interest receivable of $1 million and accrued interest receivable of $1 million, respectively, related to effectively settled and uncertain tax positions. | |||||||||||||||||||||||||
Possible Changes to Unrecognized Tax Benefits | |||||||||||||||||||||||||
It is reasonably possible that the amount of the unrecognized tax benefit with respect to some of DPL’s uncertain tax positions will significantly increase or decrease within the next 12 months. PHI and its subsidiaries have entered into discussions with the IRS with the intention of seeking a settlement of all tax issues of DPL for open tax years 2001 through 2011. PHI currently believes that it is possible that a settlement with the IRS may be reached in 2014, which could significantly impact the balances of unrecognized tax benefits and the related interest accruals of DPL. At this time, it is estimated that there will be a $4 million to $6 million decrease in unrecognized tax benefits within the next 12 months. | |||||||||||||||||||||||||
Tax Years Open to Examination | |||||||||||||||||||||||||
DPL, as an indirect subsidiary of PHI, is included on PHI’s consolidated Federal tax return. DPL’s federal income tax liabilities for all years through 2002 have been determined, subject to adjustment to the extent of any net operating loss or other loss or credit carrybacks from subsequent years. The open tax years for the significant states where DPL files state income tax returns (Maryland and Delaware) are the same as for the Federal returns. | |||||||||||||||||||||||||
Final IRS Regulations on Repair of Tangible Property | |||||||||||||||||||||||||
In September 2013, the IRS issued final regulations on expense versus capitalization of repairs with respect to tangible personal property. The regulations are effective for tax years beginning on or after January 1, 2014, and provide an option to early adopt the final regulations for tax years beginning on or after January 1, 2012. It is expected that the IRS will issue revenue procedures that will describe how taxpayers may implement the final regulations. The final repair regulations retain the operative rule that the Unit of Property for network assets is determined by the taxpayer’s particular facts and circumstances except as provided in published guidance. In 2012, with the filing of its 2011 tax return, PHI filed a request for an automatic change in accounting method related to repairs of its network assets in accordance with IRS Revenue Procedure 2011-43. DPL does not expect the effects of the final regulations to be significant and will continue to evaluate the impact of the new guidance on its financial statements. | |||||||||||||||||||||||||
Other Taxes | |||||||||||||||||||||||||
Taxes other than income taxes for each year are shown below. These amounts are recoverable through rates. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Gross Receipts/Delivery | $ | 15 | $ | 14 | $ | 15 | |||||||||||||||||||
Property | 24 | 21 | 19 | ||||||||||||||||||||||
Environmental, Use and Other | 1 | 1 | 3 | ||||||||||||||||||||||
Total | $ | 40 | $ | 36 | $ | 37 | |||||||||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
(10) INCOME TAXES | |||||||||||||||||||||||||
ACE, as an indirect subsidiary of PHI, is included in the consolidated federal income tax return of PHI. Federal income taxes are allocated to ACE pursuant to a written tax sharing agreement that was approved by the Securities and Exchange Commission in connection with the establishment of PHI as a holding company. Under this tax sharing agreement, PHI’s consolidated federal income tax liability is allocated based upon PHI’s and its subsidiaries’ separate taxable income or loss. | |||||||||||||||||||||||||
The provision for consolidated income taxes, reconciliation of consolidated income tax expense, and components of consolidated deferred income tax liabilities (assets) are shown below. | |||||||||||||||||||||||||
Provision for Consolidated Income Taxes | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Current Tax (Benefit) Expense | |||||||||||||||||||||||||
Federal | $ | (23 | ) | $ | (31 | ) | $ | (9 | ) | ||||||||||||||||
State and local | (10 | ) | (12 | ) | 1 | ||||||||||||||||||||
Total Current Tax Benefit | (33 | ) | (43 | ) | (8 | ) | |||||||||||||||||||
Deferred Tax Expense (Benefit) | |||||||||||||||||||||||||
Federal | 28 | 46 | 35 | ||||||||||||||||||||||
State and local | 25 | 16 | 7 | ||||||||||||||||||||||
Investment tax credit amortization | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||
Total Deferred Tax Expense | 52 | 61 | 41 | ||||||||||||||||||||||
Total Consolidated Income Tax Expense | $ | 19 | $ | 18 | $ | 33 | |||||||||||||||||||
Reconciliation of Consolidated Income Tax Expense | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Income tax at Federal statutory rate | $ | 24 | 35 | % | $ | 19 | 35 | % | $ | 25 | 35 | % | |||||||||||||
Increases (decreases) resulting from: | |||||||||||||||||||||||||
State income taxes, net of Federal effect | 5 | 7.2 | % | 3 | 5.7 | % | 4 | 6 | % | ||||||||||||||||
Change in estimates and interest related to uncertain and effectively settled tax positions | (9 | ) | (13.0 | )% | (1 | ) | (1.9 | )% | 5 | 6.9 | % | ||||||||||||||
Plant basis adjustments | (2 | ) | (2.9 | )% | (1 | ) | (1.9 | )% | — | — | |||||||||||||||
Investment tax credit amortization | (1 | ) | (1.4 | )% | (1 | ) | (1.9 | )% | (1 | ) | (1.3 | )% | |||||||||||||
Other, net | 2 | 2.6 | % | (1 | ) | (1.0 | )% | — | (0.8 | )% | |||||||||||||||
Consolidated Income Tax Expense | $ | 19 | 27.5 | % | $ | 18 | 34 | % | $ | 33 | 45.8 | % | |||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||
ACE’s consolidated effective income tax rate for the year ended December 31, 2013 of 27.5% includes income tax benefits totaling $9 million related to uncertain and effectively settled tax positions. | |||||||||||||||||||||||||
On January 9, 2013, the U.S. Court of Appeals for the Federal Circuit issued an opinion in Consolidated Edison Company of New York, Inc. & Subsidiaries v. United States (to which ACE is not a party) that disallowed tax benefits associated with Consolidated Edison’s cross-border lease transaction. As a result of the court’s ruling in this case, PHI determined in the first quarter of 2013 that it could no longer support its current assessment with respect to the likely outcome of tax positions associated with its cross-border energy lease investments held by its wholly-owned subsidiary Potomac Capital Investment Corporation, and PHI recorded an after-tax charge of $377 million in the first quarter of 2013. Included in the $377 million charge was an after-tax interest charge of $54 million and this amount was allocated to each member of PHI’s consolidated group as if each member was a separate taxpayer, resulting in ACE recording a $6 million interest benefit in the first quarter of 2013. | |||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||
ACE’s consolidated effective income tax rate for the year ended December 31, 2012 of 34.0% reflects a $1 million benefit associated with the effective settlement with the Internal Revenue Service (IRS) with respect to the methodology used historically to calculate deductible mixed service costs. | |||||||||||||||||||||||||
Year ended December 31, 2011 | |||||||||||||||||||||||||
ACE’s consolidated effective income tax rate for the year ended December 31, 2011 of 45.8% includes a charge totaling $5 million related to uncertain and effectively settled tax positions. | |||||||||||||||||||||||||
During 2011, PHI reached a settlement with the IRS with respect to interest due on its federal tax liabilities related to the November 2010 audit settlement for years 1996 through 2002. In connection with this agreement, PHI reallocated certain amounts that have been on deposit with the IRS since 2006 among liabilities in the settlement years and subsequent years. Primarily related to the settlement and reallocations, ACE has recorded a $1 million (after-tax) interest charge in the second quarter of 2011. Additionally, in the third quarter of 2011, ACE recorded a $3 million (after-tax) interest charge related to the recalculation of interest on its uncertain tax positions for open tax years using different assumptions related to the application of its deposit made with the IRS in 2006. | |||||||||||||||||||||||||
Components of Consolidated Deferred Income Tax Liabilities (Assets) | |||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Deferred Tax Liabilities (Assets) | |||||||||||||||||||||||||
Depreciation and other basis differences related to plant and equipment | $ | 627 | $ | 538 | |||||||||||||||||||||
Deferred taxes on amounts to be collected through future rates | 16 | 15 | |||||||||||||||||||||||
Payment for termination of purchased power contracts with NUGs | 43 | 47 | |||||||||||||||||||||||
Deferred electric service and electric restructuring liabilities | 96 | 116 | |||||||||||||||||||||||
Pension and other postretirement benefits | 29 | 34 | |||||||||||||||||||||||
Purchased energy | 2 | 3 | |||||||||||||||||||||||
Federal and state net operating loss | (49 | ) | (54 | ) | |||||||||||||||||||||
Other | 55 | 58 | |||||||||||||||||||||||
Total Deferred Tax Liabilities, net | 819 | 757 | |||||||||||||||||||||||
Deferred tax assets included in Current Assets | 15 | 10 | |||||||||||||||||||||||
Deferred tax liabilities included in Other Current Liabilities | (1 | ) | (1 | ) | |||||||||||||||||||||
Total Consolidated Deferred Tax Liabilities, net non-current | $ | 833 | $ | 766 | |||||||||||||||||||||
The net deferred tax liability represents the tax effect, at presently enacted tax rates, of temporary differences between the financial statement basis and tax basis of assets and liabilities. The portion of the net deferred tax liability applicable to ACE’s operations, which has not been reflected in current service rates, represents income taxes recoverable through future rates, net, and is recorded as a regulatory asset on the balance sheet. No valuation allowance for deferred tax assets was required or recorded at December 31, 2013 and 2012. Federal and State net operating losses generally expire over 20 years from 2029 to 2032. | |||||||||||||||||||||||||
The Tax Reform Act of 1986 repealed the investment tax credit for property placed in service after December 31, 1985, except for certain transition property. Investment tax credits previously earned on ACE’s property continue to be amortized to income over the useful lives of the related property. | |||||||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Balance as of January 1 | $ | 17 | $ | 79 | $ | 83 | |||||||||||||||||||
Tax positions related to current year: | |||||||||||||||||||||||||
Additions | 2 | 1 | 2 | ||||||||||||||||||||||
Reductions | — | — | — | ||||||||||||||||||||||
Tax positions related to prior years: | |||||||||||||||||||||||||
Additions | 1 | 8 | 4 | ||||||||||||||||||||||
Reductions | (5 | ) | (69 | )(a) | (10 | ) | |||||||||||||||||||
Settlements | (6 | ) | (2 | ) | — | ||||||||||||||||||||
Balance as of December 31 | $ | 9 | $ | 17 | $ | 79 | |||||||||||||||||||
(a) | These reductions of unrecognized tax benefits in 2012 primarily relate to a resolution reached with the IRS for determining deductible mixed service costs for additions to property, plant and equipment. | ||||||||||||||||||||||||
Unrecognized Benefits That, If Recognized, Would Affect the Effective Tax Rate | |||||||||||||||||||||||||
Unrecognized tax benefits are related to tax positions that have been taken or are expected to be taken in tax returns that are not recognized in the financial statements because management has either measured the tax benefit at an amount less than the benefit claimed, or expected to be claimed, or has concluded that it is not more likely than not that the tax position will be ultimately sustained. For the majority of these tax positions, the ultimate deductibility is highly certain, but there is uncertainty about the timing of such deductibility. At December 31, 2013, ACE had no unrecognized tax benefits that, if recognized, would lower the effective tax rate. | |||||||||||||||||||||||||
Interest and Penalties | |||||||||||||||||||||||||
ACE recognizes interest and penalties relating to its uncertain tax positions as an element of income tax expense. For the years ended December 31, 2013, 2012 and 2011, ACE recognized $12 million of pre-tax interest income ($7 million after-tax), $2 million of pre-tax interest income ($1 million after-tax), and $5 million of pre-tax interest expense ($3 million after-tax), respectively, as a component of income tax expense. As of December 31, 2013, 2012 and 2011, ACE had accrued interest receivable of $14 million, $7 million and $6 million, respectively, related to effectively settled and uncertain tax positions. | |||||||||||||||||||||||||
Possible Changes to Unrecognized Tax Benefits | |||||||||||||||||||||||||
It is reasonably possible that the amount of the unrecognized tax benefit with respect to some of ACE’s uncertain tax positions will significantly increase or decrease within the next 12 months. PHI and its subsidiaries have entered into discussions with the IRS with the intention of seeking a settlement of all tax issues of ACE for open tax years 2001 through 2011. PHI currently believes that it is possible that a settlement with the IRS may be reached in 2014, which could significantly impact the balances of unrecognized tax benefits and the related interest accruals of ACE. At this time, it is estimated that there will be a $4 million to $6 million decrease in unrecognized tax benefits within the next 12 months. | |||||||||||||||||||||||||
Tax Years Open to Examination | |||||||||||||||||||||||||
ACE, as an indirect subsidiary of PHI, is included on PHI’s consolidated Federal tax return. ACE’s federal income tax liabilities for all years through 2002 have been determined, subject to adjustment to the extent of any net operating loss or other loss or credit carrybacks from subsequent years. The open tax years for the significant states where ACE files state income tax returns (New Jersey and Pennsylvania) are the same as for the Federal returns. As a result of the final determination of these years, ACE filed amended state returns receiving $1 million in refunds. | |||||||||||||||||||||||||
Final IRS Regulations on Repair of Tangible Property | |||||||||||||||||||||||||
In September 2013, the IRS issued final regulations on expense versus capitalization of repairs with respect to tangible personal property. The regulations are effective for tax years beginning on or after January 1, 2014, and provide an option to early adopt the final regulations for tax years beginning on or after January 1, 2012. It is expected that the IRS will issue revenue procedures that will describe how taxpayers may implement the final regulations. The final repair regulations retain the operative rule that the Unit of Property for network assets is determined by the taxpayer’s particular facts and circumstances except as provided in published guidance. In 2012, with the filing of its 2011 tax return, PHI filed a request for an automatic change in accounting method related to repairs of its network assets in accordance with IRS Revenue Procedure 2011-43. ACE does not expect the effects of the final regulations to be significant and will continue to evaluate the impact of the new guidance on its consolidated financial statements. | |||||||||||||||||||||||||
Other Taxes | |||||||||||||||||||||||||
Taxes other than income taxes for each year are shown below. These amounts are recoverable through rates. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Gross Receipts/Delivery | $ | 10 | $ | 14 | $ | 20 | |||||||||||||||||||
Property | 3 | 3 | 3 | ||||||||||||||||||||||
Environmental, Use and Other | 1 | 1 | 2 | ||||||||||||||||||||||
Total | $ | 14 | $ | 18 | $ | 25 |
Stock_Based_Compensation_Divid
Stock Based Compensation, Dividend Restrictions, and Calculations of Earnings Per Share of Common Stock | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||
Stock Based Compensation, Dividend Restrictions, and Calculations of Earnings Per Share of Common Stock | ' | ||||||||||||
(12) STOCK-BASED COMPENSATION, DIVIDEND RESTRICTIONS, AND CALCULATIONS OF EARNINGS PER SHARE OF COMMON STOCK | |||||||||||||
Stock-Based Compensation | |||||||||||||
Pepco Holdings maintains the 2012 Long-Term Incentive Plan (2012 LTIP), the successor plan to the Long-Term Incentive Plan (LTIP), the objective of which is to increase shareholder value by providing long-term and equity incentives to reward officers, key employees and non-employee directors of Pepco Holdings and its subsidiaries and to increase the ownership of Pepco Holdings common stock by such individuals. Any officer, key employee or non-employee director of Pepco Holdings or its subsidiaries may be designated as a participant. Under these plans, awards to officers, key employees and non-employee directors may be in the form of restricted stock, restricted stock units, stock options, performance shares and/or units, stock appreciation rights, unrestricted stock and dividend equivalents. At inception, 10 million and 8 million shares of common stock were authorized for issuance under the LTIP and the 2012 LTIP, respectively. The LTIP expired in accordance with its terms in 2012 and no new awards may be granted thereunder. | |||||||||||||
Total stock-based compensation expense recorded in the consolidated statements of (loss) income for the years ended December 31, 2013, 2012 and 2011 was $12 million, $11 million and $6 million, respectively, all of which was associated with restricted stock unit and unrestricted stock awards. | |||||||||||||
No material amount of stock compensation expense was capitalized for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
Restricted Stock and Restricted Stock Unit Awards | |||||||||||||
Description of Awards | |||||||||||||
A number of programs have been established under the LTIP and the 2012 LTIP involving the issuance of restricted stock and restricted stock unit awards, including awards of performance-based restricted stock units, time-based restricted stock and restricted stock units, and retention restricted stock and restricted stock units. A summary of each of these programs is as follows: | |||||||||||||
• | Under the performance-based program, performance criteria are selected and measured over the specified performance period. Depending on the extent to which the performance criteria are satisfied, the participants are eligible to earn shares of common stock at the end of the performance period, ranging from 25% to 200% of the target award, and dividend equivalents accrued thereon. | ||||||||||||
• | Generally, time-based restricted stock and restricted stock unit award opportunities have a requisite service period of up to three years and, with respect to restricted stock awards, participants have the right to receive dividends on the shares during the vesting period. Under restricted stock unit awards, dividends are credited quarterly in the form of additional restricted stock units, which are paid when vested at the end of the service period. | ||||||||||||
• | In January, April and September 2012, four retention awards in the form of 150,330 time-based and performance-based restricted stock units and 5,305 shares of unrestricted stock were granted to certain PHI executives. In January and February 2013, two retention awards in the form of 45,444 performance-based restricted stock units were granted to certain PHI executives. The time-based retention awards vest at varying rates over a period of three years, and the performance-based retention awards have a one-year performance period and are subject to the continued employment of the executive at the end of the performance period. | ||||||||||||
• | In 2013 and 2012, restricted stock units totaling 37,735 and 40,749, respectively, were granted to PHI’s non-employee directors under the 2012 LTIP. These restricted stock units vest over a service period which ends upon the first to occur of (i) one year after the date of grant or (ii) the date of the next annual meeting of stockholders. These awards represent the equity portion of the annual retainer paid to non-employee directors for their service as a director of PHI. | ||||||||||||
Activity for the year | |||||||||||||
The 2013 activity for non-vested, time-based restricted stock, restricted stock units and performance-based restricted stock unit awards, including retention awards, is summarized in the table below. For performance-based restricted stock unit awards, the table reflects awards projected, for purposes of computing the weighted average grant date fair value, to achieve 100% of targeted performance criteria for each outstanding award cycle. | |||||||||||||
Number | Weighted | ||||||||||||
of Shares | Average Grant | ||||||||||||
Date Fair Value | |||||||||||||
Balance as of January 1, 2013 | |||||||||||||
Time-based restricted stock | 134,607 | $ | 16.56 | ||||||||||
Time-based restricted stock units | 513,204 | 19.42 | |||||||||||
Performance-based restricted stock units | 1,032,396 | 20.34 | |||||||||||
Total | 1,680,207 | ||||||||||||
Granted during 2013 | |||||||||||||
Time-based restricted stock units | 237,733 | 19.7 | |||||||||||
Performance-based restricted stock units | 444,969 | 17.03 | |||||||||||
Total | 682,702 | ||||||||||||
Vested during 2013 | |||||||||||||
Time-based restricted stock | (134,607 | ) | 16.56 | ||||||||||
Time-based restricted stock units | (123,021 | ) | 18.45 | ||||||||||
Performance-based restricted stock units | (314,995 | ) | 20 | ||||||||||
Total | (572,623 | ) | |||||||||||
Forfeited during 2013 | |||||||||||||
Time-based restricted stock units | (44,362 | ) | 19.64 | ||||||||||
Performance-based restricted stock units | (92,540 | ) | 19.91 | ||||||||||
Total | (136,902 | ) | |||||||||||
Balance as of December 31, 2013 | |||||||||||||
Time-based restricted stock | — | — | |||||||||||
Time-based restricted stock units | 583,554 | 19.34 | |||||||||||
Performance-based restricted stock units | 1,069,830 | 19.06 | |||||||||||
Total | 1,653,384 | ||||||||||||
Grants included in the table above reflect 2013 grants of performance-based and time-based restricted stock units, including retention awards. PHI recognizes compensation expense related to performance-based restricted stock unit awards and time-based restricted stock and restricted stock unit awards based on the fair value of the awards at date of grant. The fair value is based on the market value of PHI common stock at the date the award opportunity is granted. The estimated fair value of the performance-based awards is also a function of PHI’s projected future performance relative to established performance criteria and the resulting payout of shares based on the achieved performance levels. PHI employed a Monte Carlo simulation to forecast PHI’s performance relative to the performance criteria and to estimate the potential payout of shares under the performance-based awards. | |||||||||||||
The following table provides the weighted average grant date fair value per share of those awards granted during each of the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average grant-date fair value of each unrestricted stock award granted during the year | $ | — | $ | 18.85 | $ | — | |||||||
Weighted average grant-date fair value of each time-based restricted stock unit award granted during the year | $ | 19.7 | $ | 19.69 | $ | 18.87 | |||||||
Weighted average grant-date fair value of each performance-based restricted stock unit award granted during the year | $ | 17.03 | $ | 21.13 | $ | 19.56 | |||||||
As of December 31, 2013, there was approximately $11 million of future compensation cost (net of estimated forfeitures) related to restricted stock unit awards granted under the LTIP and the 2012 LTIP that PHI expects to recognize over a weighted-average period of approximately two years. | |||||||||||||
Stock Options | |||||||||||||
Stock options to purchase shares of PHI’s common stock granted under the LTIP and the 2012 LTIP must have an exercise price at least equal to the fair market value of the underlying stock on the grant date. Stock options generally become exercisable on a specified vesting date or dates. All stock options must have an expiration date of no greater than ten years from the date of grant. No options have been granted under the LTIP or the 2012 LTIP since 2002. As of December 31, 2012, all outstanding stock options under predecessor plans have vested or expired. Total intrinsic value and tax benefits recognized for stock options exercised in 2012 and 2011 were immaterial. | |||||||||||||
Directors’ Deferred Compensation | |||||||||||||
Under the Pepco Holdings’ Executive and Director Deferred Compensation Plan, Pepco Holdings non-employee directors may elect to defer all or part of their cash retainer and meeting fees. Deferred retainer or meeting fees, at the election of the director, can be credited with interest at the prime rate or the return on selected investment funds or can be deemed invested in phantom shares of Pepco Holdings common stock on which dividend equivalent accruals are credited when dividends are paid on the common stock (or a combination of these options). All deferrals are settled in cash. The amount deferred by directors for each of the years ended December 31, 2013, 2012 and 2011 was not material. | |||||||||||||
Compensation expense recognized in respect of dividends and the increase in fair value for each of the years ended December 31, 2013, 2012 and 2011 was not material. The deferred compensation balances under this program were approximately $2 million and $1 million at December 31, 2013 and 2012, respectively. | |||||||||||||
A separate deferral option under the 2012 LTIP gives non-employee directors the right to elect to defer the receipt of common stock upon vesting of restricted stock unit awards. | |||||||||||||
Dividend Restrictions | |||||||||||||
PHI, on a stand-alone basis, generates no operating income of its own. Accordingly, its ability to pay dividends to its shareholders depends on dividends received from its subsidiaries. In addition to their future financial performance, the ability of PHI’s direct and indirect subsidiaries to pay dividends is subject to limits imposed by: (i) state corporate laws, which impose limitations on the funds that can be used to pay dividends and, in the case of ACE, the regulatory requirement that it obtain the prior approval of the NJBPU before dividends can be paid if its equity as a percent of its total capitalization, excluding securitization debt, falls below 30%; (ii) the prior rights of holders of mortgage bonds and other long-term debt issued by the subsidiaries, and any other restrictions imposed in connection with the incurrence of liabilities; and (iii) certain provisions of ACE’s charter that impose restrictions on payment of common stock dividends for the benefit of preferred stockholders. Pepco, DPL and ACE have no shares of preferred stock outstanding at December 31, 2013. Currently, the capitalization ratio limitation to which ACE is subject and the restriction in the ACE charter do not limit ACE’s ability to pay common stock dividends. PHI had approximately $595 million and $1,077 million of retained earnings free of restrictions at December 31, 2013 and 2012, respectively. These amounts represent the total retained earnings balances at those dates. | |||||||||||||
For the years ended December 31, 2013, 2012 and 2011, dividends paid by PHI’s subsidiaries were as follows: | |||||||||||||
Subsidiary | 2013 | 2012 | 2011 | ||||||||||
(millions of dollars) | |||||||||||||
Pepco (paid to PHI) | $ | 46 | $ | 35 | $ | 25 | |||||||
DPL (paid to Conectiv) | 30 | — | 60 | ||||||||||
ACE (paid to Conectiv) | 60 | 35 | — | ||||||||||
Total | $ | 136 | $ | 70 | $ | 85 | |||||||
Calculations of Earnings per Share of Common Stock | |||||||||||||
The numerator and denominator for basic and diluted earnings per share of common stock calculations are shown below. | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(millions of dollars, except per share data) | |||||||||||||
Income (Numerator): | |||||||||||||
Net income from continuing operations | $ | 110 | $ | 218 | $ | 222 | |||||||
Net (loss) income from discontinued operations | (322 | ) | 67 | 35 | |||||||||
Net (loss) income | $ | (212 | ) | $ | 285 | $ | 257 | ||||||
Shares (Denominator) (in millions): | |||||||||||||
Weighted average shares outstanding for basic computation: | |||||||||||||
Average shares outstanding | 246 | 229 | 226 | ||||||||||
Adjustment to shares outstanding | — | — | — | ||||||||||
Weighted Average Shares Outstanding for Computation of Basic Earnings Per Share of Common Stock | 246 | 229 | 226 | ||||||||||
Net effect of potentially dilutive shares (a) | — | 1 | — | ||||||||||
Weighted Average Shares Outstanding for Computation of Diluted Earnings Per Share of Common Stock | 246 | 230 | 226 | ||||||||||
Basic earnings per share of common stock from continuing operations | $ | 0.45 | $ | 0.95 | $ | 0.98 | |||||||
Basic (loss) earnings per share of common stock from discontinued operations | (1.31 | ) | 0.3 | 0.16 | |||||||||
Basic (loss) earnings per share | $ | (0.86 | ) | $ | 1.25 | $ | 1.14 | ||||||
Diluted earnings per share of common stock from continuing operations | $ | 0.45 | $ | 0.95 | $ | 0.98 | |||||||
Diluted (loss) earnings per share of common stock from discontinued operations | (1.31 | ) | 0.29 | 0.16 | |||||||||
Diluted (loss) earnings per share | $ | (0.86 | ) | $ | 1.24 | $ | 1.14 | ||||||
(a) | The number of options to purchase shares of common stock that were excluded from the calculation of diluted earnings per share as they are considered to be anti-dilutive were zero, zero and 14,900 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Equity Forward Transaction | |||||||||||||
During 2012, PHI entered into an equity forward transaction in connection with a public offering of PHI common stock. Pursuant to the terms of this transaction, a forward counterparty borrowed 17,922,077 shares of PHI’s common stock from third parties and sold them to a group of underwriters for $19.25 per share, less an underwriting discount equal to $0.67375 per share. Under the terms of the equity forward transaction, upon physical settlement thereof, PHI was required to issue and deliver shares of PHI common stock to the forward counterparty at the then applicable forward sale price. The forward sale price was initially determined to be $18.57625 per share at the time the equity forward transaction was entered into and was subject to reduction from time to time in accordance with the terms of the equity forward transaction. PHI believed that the equity forward transaction substantially eliminated future equity price risk because the forward sale price was determinable as of the date that PHI entered into the equity forward transaction and was only reduced pursuant to the contractual terms of the equity forward transaction through the settlement date, which reductions were not affected by a future change in the market price of the PHI common stock. On February 27, 2013, PHI physically settled the equity forward at the then applicable forward sale price of $17.39 per share. The proceeds of approximately $312 million were used to repay outstanding commercial paper, a portion of which had been issued in order to make capital contributions to the utilities, and for general corporate purposes. | |||||||||||||
Direct Stock Purchase and Dividend Reinvestment Plan | |||||||||||||
PHI maintains a Direct Stock Purchase and Dividend Reinvestment Plan (DRP) through which participants may reinvest cash dividends. In addition, participants can make purchases of shares of PHI common stock through the investment of not less than $25 per purchase nor more than $300,000 each calendar year. Shares of common stock purchased through the DRP may be new shares, treasury shares held by PHI, or, at the election of PHI, shares purchased in the open market. Approximately 2 million new shares were issued and sold under the DRP in each of 2013, 2012 and 2011. | |||||||||||||
Pepco Holdings Common Stock Reserved and Unissued | |||||||||||||
The following table presents Pepco Holdings’ common stock reserved and unissued at December 31, 2013: | |||||||||||||
Name of Plan | Number of | ||||||||||||
Shares | |||||||||||||
DRP | 6,104,591 | ||||||||||||
Pepco Holdings Long-Term Incentive Plan (a) | 7,450,404 | ||||||||||||
Pepco Holdings 2012 Long-Term Incentive Plan | 7,971,832 | ||||||||||||
Pepco Holdings Non-Management Directors Compensation Plan | 457,211 | ||||||||||||
Pepco Holdings Retirement Savings Plan | 4,585,079 | ||||||||||||
Total | 26,569,117 | ||||||||||||
(a) | No further awards will be made under this plan. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||||
(13) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||
DPL uses derivative instruments in the form of swaps and over-the-counter options primarily to reduce natural gas commodity price volatility and to limit its customers’ exposure to increases in the market price of natural gas under a hedging program approved by the DPSC. DPL uses these derivatives to manage the commodity price risk associated with its physical natural gas purchase contracts. All premiums paid and other transaction costs incurred as part of DPL’s natural gas hedging activity, in addition to all gains and losses related to hedging activities, are deferred under FASB guidance on regulated operations (ASC 980) until recovered from its customers through a fuel adjustment clause approved by the DPSC. The natural gas purchase contracts qualify as normal purchases, which are not required to be recorded in the financial statements until settled. | |||||||||||||||||||||
ACE was ordered to enter into the SOCAs by the NJBPU, and under the SOCAs, ACE would have received payments from or made payments to electric generation facilities based on i) the difference between the fixed price in the SOCAs and the price for capacity that clears PJM and ii) ACE’s annual proportion of the total New Jersey load relative to the other EDCs in New Jersey. ACE began applying derivative accounting to two of its SOCAs as of June 30, 2012 because these generators cleared the 2015-2016 PJM capacity auction in May 2012. The fair value of the derivatives embedded in these SOCAs were deferred as regulatory assets or regulatory liabilities because the NJBPU allowed full recovery from ACE’s distribution customers for any payments made by ACE, and ACE’s distribution customers would be entitled to payments received by ACE. As further discussed in Note (7), “Regulatory Matters,” in light of a Federal district court order, which ruled that the SOCAs are void, invalid and unenforceable, and ACE’s subsequent termination of the SOCAs in the fourth quarter of 2013, ACE derecognized the derivative assets and derivative liabilities related to the SOCAs. | |||||||||||||||||||||
The tables below identify the balance sheet location and fair values of derivative instruments as of December 31, 2013 and 2012: | |||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Balance Sheet Caption | Derivatives | Other | Gross | Effects of | Net | ||||||||||||||||
Designated | Derivative | Derivative | Cash | Derivative | |||||||||||||||||
as Hedging | Instruments | Instruments | Collateral | Instruments | |||||||||||||||||
Instruments | and | ||||||||||||||||||||
Netting | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Derivative assets (current assets) | $ | — | $ | 1 | $ | 1 | $ | (1 | ) | $ | — | ||||||||||
Total Derivative asset | $ | — | $ | 1 | $ | 1 | $ | (1 | ) | $ | — | ||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Balance Sheet Caption | Derivatives | Other | Gross | Effects of | Net | ||||||||||||||||
Designated | Derivative | Derivative | Cash | Derivative | |||||||||||||||||
as Hedging | Instruments | Instruments | Collateral | Instruments | |||||||||||||||||
Instruments | and | ||||||||||||||||||||
Netting | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Derivative assets (non-current assets) | $ | — | $ | 8 | $ | 8 | $ | — | $ | 8 | |||||||||||
Total Derivative assets | — | 8 | 8 | — | 8 | ||||||||||||||||
Derivative liabilities (current liabilities) | — | (4 | ) | (4 | ) | — | (4 | ) | |||||||||||||
Derivative liabilities (non-current liabilities) | — | (11 | ) | (11 | ) | — | (11 | ) | |||||||||||||
Total Derivative liabilities | — | (15 | ) | (15 | ) | — | (15 | ) | |||||||||||||
Net Derivative liability | $ | — | $ | (7 | ) | $ | (7 | ) | $ | — | $ | (7 | ) | ||||||||
All derivative assets and liabilities available to be offset under master netting arrangements were netted as of December 31, 2013 and 2012. The amount of cash collateral that was offset against these derivative positions is as follows: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Cash collateral received from counterparties with the obligation to return | $ | (1 | ) | $ | — | ||||||||||||||||
As of December 31, 2013 and 2012, all PHI cash collateral pledged related to derivative instruments accounted for at fair value was entitled to be offset under master netting agreements. | |||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||
Power Delivery | |||||||||||||||||||||
All premiums paid and other transaction costs incurred as part of DPL’s natural gas hedging activity, in addition to all of DPL’s gains and losses related to hedging activities, are deferred under FASB guidance on regulated operations until recovered from customers based on the fuel adjustment clause approved by the DPSC. For the years ended December 31, 2013, 2012 and 2011, DPL had no net unrealized derivative losses and zero, zero and $5 million, respectively, of net realized losses associated with cash flow hedges recognized in the consolidated statements of (loss) income (through Fuel and purchased energy expense) that were deferred as Regulatory assets. | |||||||||||||||||||||
Cash Flow Hedges Included in Accumulated Other Comprehensive Loss | |||||||||||||||||||||
PHI also may use derivative instruments from time to time to mitigate the effects of fluctuating interest rates on debt issued in connection with the operation of its businesses. In June 2002, PHI entered into several treasury rate lock transactions in anticipation of the issuance of several series of fixed-rate debt commencing in August 2002. Upon issuance of the fixed-rate debt in August 2002, the treasury rate locks were terminated at a loss. The loss has been deferred in AOCL and is being recognized in interest expense over the life of the debt issued as interest payments are made. | |||||||||||||||||||||
The tables below provide details regarding terminated cash flow hedges included in PHI’s consolidated balance sheets as of December 31, 2013 and 2012. The data in the following tables indicate the cumulative net loss after-tax related to terminated cash flow hedges by contract type included in AOCL, the portion of AOCL expected to be reclassified to income during the next 12 months, and the maximum hedge or deferral term: | |||||||||||||||||||||
As of December 31, 2013 | Maximum | ||||||||||||||||||||
Contracts | Accumulated | Portion Expected | Term | ||||||||||||||||||
Other | to be Reclassified | ||||||||||||||||||||
Comprehensive Loss | to Income during | ||||||||||||||||||||
After-tax | the Next 12 Months | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Interest rate | $ | 9 | $ | 1 | 224 months | ||||||||||||||||
Total | $ | 9 | $ | 1 | |||||||||||||||||
As of December 31, 2012 | Maximum | ||||||||||||||||||||
Contracts | Accumulated | Portion Expected | Term | ||||||||||||||||||
Other | to be Reclassified | ||||||||||||||||||||
Comprehensive Loss | to Income during | ||||||||||||||||||||
After-tax | the Next 12 Months | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Interest rate | $ | 10 | $ | 1 | 236 months | ||||||||||||||||
Total | $ | 10 | $ | 1 | |||||||||||||||||
Other Derivative Activity | |||||||||||||||||||||
DPL and ACE have certain derivatives that are not in hedge accounting relationships and are not designated as normal purchases or normal sales. These derivatives are recorded at fair value on the consolidated balance sheets with the gain or loss for changes in fair value recorded in income. In accordance with FASB guidance on regulated operations, offsetting regulatory liabilities or regulatory assets are recorded on the consolidated balance sheets and the recognition of the derivative gain or loss is deferred because of the DPSC-approved fuel adjustment clause for DPL’s derivatives and the NJBPU order (prior to the order in October 2013 of a Federal district court as described in Note (7), “Regulatory Matters” which caused ACE to derecognize the derivative assets and derivative liabilities related to the SOCAs in the fourth quarter of 2013) pertaining to the SOCAs within which ACE’s capacity derivatives are embedded. The following table indicates the net unrealized and net realized derivative gains and (losses) arising during the period associated with these derivatives that were recognized in the consolidated statements of (loss) income (through Fuel and purchased energy expense) and that were also deferred as Regulatory assets for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Net unrealized gain (loss) arising during the period | $ | 4 | $ | (6 | ) | $ | (13 | ) | |||||||||||||
Net realized loss recognized during the period | (4 | ) | (16 | ) | (22 | ) | |||||||||||||||
As of December 31, 2013 and 2012, the quantities and positions of DPL’s net outstanding natural gas commodity forward contracts and ACE’s capacity derivatives associated with the SOCAs that did not qualify for hedge accounting were: | |||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||
Commodity | Quantity | Net Position | Quantity | Net Position | |||||||||||||||||
DPL—Natural gas (one Million British Thermal Units (MMBtu)) | 3,977,500 | Long | 3,838,000 | Long | |||||||||||||||||
ACE—Capacity (MWs) | — | — | 180 | Long | |||||||||||||||||
Contingent Credit Risk Features | |||||||||||||||||||||
The primary contracts used by the Power Delivery segment for derivative transactions are entered into under the International Swaps and Derivatives Association Master Agreement (ISDA) or similar agreements that closely mirror the principal credit provisions of the ISDA. The ISDAs include a Credit Support Annex (CSA) that governs the mutual posting and administration of collateral security. The failure of a party to comply with an obligation under the CSA, including an obligation to transfer collateral security when due or the failure to maintain any required credit support, constitutes an event of default under the ISDA for which the other party may declare an early termination and liquidation of all transactions entered into under the ISDA, including foreclosure against any collateral security. In addition, some of the ISDAs have cross default provisions under which a default by a party under another commodity or derivative contract, or the breach by a party of another borrowing obligation in excess of a specified threshold, is a breach under the ISDA. | |||||||||||||||||||||
Under the ISDA or similar agreements, the parties establish a dollar threshold of unsecured credit for each party in excess of which the party would be required to post collateral to secure its obligations to the other party. The amount of the unsecured credit threshold varies according to the senior, unsecured debt rating of the respective parties or that of a guarantor of the party’s obligations. The fair values of all transactions between the parties are netted under the master netting provisions. Transactions may include derivatives accounted for on-balance sheet as well as those designated as normal purchases and normal sales that are accounted for off-balance sheet. If the aggregate fair value of the transactions in a net loss position exceeds the unsecured credit threshold, then collateral is required to be posted in an amount equal to the amount by which the unsecured credit threshold is exceeded. The obligations of DPL are stand-alone obligations without the guarantee of PHI. If DPL’s debt rating were to fall below “investment grade,” the unsecured credit threshold would typically be set at zero and collateral would be required for the entire net loss position. Exchange-traded contracts are required to be fully collateralized without regard to the credit rating of the holder. | |||||||||||||||||||||
The gross fair values of DPL’s derivative liabilities with credit risk-related contingent features as of December 31, 2013 and 2012, were zero and $4 million, respectively, before giving effect to offsetting transactions or collateral under master netting agreements. As of December 31, 2013 and 2012, DPL had posted no cash collateral against its gross derivative liability. If DPL’s debt ratings had been downgraded below investment grade as of December 31, 2013 and 2012, DPL’s net settlement amounts, including both the fair value of its derivative liabilities and its normal purchase and normal sale contracts would have been approximately zero and $2 million, respectively, and DPL would have been required to post collateral with the counterparties of approximately zero and $2 million, respectively. The net settlement and additional collateral amounts reflect the effect of offsetting transactions under master netting agreements. | |||||||||||||||||||||
DPL’s primary source for posting cash collateral or letters of credit is PHI’s credit facility, under which DPL is a borrower. As of December 31, 2013 and 2012, the aggregate amount of cash plus borrowing capacity under the credit facility available to meet the future liquidity needs of PHI’s utility subsidiaries was $332 million and $477 million, respectively. | |||||||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||||
(12) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||||||||||||||
DPL uses derivative instruments in the form of swaps and over-the-counter options primarily to reduce natural gas commodity price volatility and limit its customers’ exposure to increases in the market price of natural gas under a hedging program approved by the DPSC. DPL uses these derivatives to manage the commodity price risk associated with its physical natural gas purchase contracts. The natural gas purchase contracts qualify as normal purchases, which are not required to be recorded in the financial statements until settled. All premiums paid and other transaction costs incurred as part of DPL’s natural gas hedging activity, in addition to all gains and losses related to hedging activities, are deferred under FASB guidance on regulated operations (ASC 980) until recovered from its customers through a fuel adjustment clause approved by the DPSC. | |||||||||||||||||||||
The tables below identify the balance sheet location and fair values of derivative instruments as of December 31, 2013 and 2012: | |||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Balance Sheet Caption | Derivatives | Other | Gross | Effects of | Net | ||||||||||||||||
Designated | Derivative | Derivative | Cash | Derivative | |||||||||||||||||
as Hedging | Instruments | Instruments | Collateral | Instruments | |||||||||||||||||
Instruments | and | ||||||||||||||||||||
Netting | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Derivative assets (current assets) | $ | — | $ | 1 | $ | 1 | $ | (1 | ) | $ | — | ||||||||||
Total Derivative asset | $ | — | $ | 1 | $ | 1 | $ | (1 | ) | $ | — | ||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Balance Sheet Caption | Derivatives | Other | Gross | Effects of | Net | ||||||||||||||||
Designated | Derivative | Derivative | Cash | Derivative | |||||||||||||||||
as Hedging | Instruments | Instruments | Collateral | Instruments | |||||||||||||||||
Instruments | and | ||||||||||||||||||||
Netting | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Derivative liabilities (current liabilities) | $ | — | $ | (4 | ) | $ | (4 | ) | $ | — | $ | (4 | ) | ||||||||
Total Derivative liability | $ | — | $ | (4 | ) | $ | (4 | ) | $ | — | $ | (4 | ) | ||||||||
All derivative assets and liabilities available to be offset under master netting arrangements were netted as of December 31, 2013 and 2012. The amount of cash collateral that was offset against these derivative positions is as follows: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Cash collateral received from counterparties with the obligation to return | $ | (1 | ) | $ | — | ||||||||||||||||
As of December 31, 2013 and 2012, all DPL cash collateral pledged related to derivative instruments accounted for at fair value was entitled to be offset under master netting agreements. | |||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||
All premiums paid and other transaction costs incurred as part of DPL’s natural gas hedging activity, in addition to all of DPL’s gains and losses related to hedging activities, are deferred under FASB guidance on regulated operations until recovered from customers based on the fuel adjustment clause approved by the DPSC. For the years ended December 31, 2013, 2012 and 2011, DPL had no net unrealized derivative losses and zero, zero and $5 million, respectively, of net realized losses associated with cash flow hedges recognized in the statements of income (through Purchased energy or Gas purchased expense) that were deferred as Regulatory assets. | |||||||||||||||||||||
Other Derivative Activity | |||||||||||||||||||||
DPL holds certain derivatives that are not in hedge accounting relationships and are not designated as normal purchases or normal sales. These derivatives are recorded at fair value on the balance sheets with the gain or loss for changes in the fair value recorded in income. In accordance with FASB guidance on regulated operations, offsetting regulatory liabilities or regulatory assets are recorded on the balance sheets and the recognition of the derivative gain or loss is deferred because of the DPSC-approved fuel adjustment clause. For the years ended December 31, 2013, 2012 and 2011, the net unrealized derivative losses arising during the period that were deferred as Regulatory assets and the net realized losses recognized in the statements of income (through Purchased energy and Gas purchased expense) that were also deferred as Regulatory assets are provided in the table below: | |||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Net unrealized gain (loss) arising during the period | $ | 1 | $ | (3 | ) | $ | (13 | ) | |||||||||||||
Net realized loss recognized during the period | (4 | ) | (16 | ) | (22 | ) | |||||||||||||||
As of December 31, 2013 and 2012, DPL had the following net outstanding natural gas commodity forward contracts that did not qualify for hedge accounting: | |||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||
Commodity | Quantity | Net Position | Quantity | Net Position | |||||||||||||||||
Natural Gas (One Million British Thermal Units (MMBtu)) | 3,977,500 | Long | 3,838,000 | Long | |||||||||||||||||
Contingent Credit Risk Features | |||||||||||||||||||||
The primary contracts used by DPL for derivative transactions are entered into under the International Swaps and Derivatives Association Master Agreement (ISDA) or similar agreements that closely mirror the principal credit provisions of the ISDA. The ISDAs include a Credit Support Annex (CSA) that governs the mutual posting and administration of collateral security. The failure of a party to comply with an obligation under the CSA, including an obligation to transfer collateral security when due or the failure to maintain any required credit support, constitutes an event of default under the ISDA for which the other party may declare an early termination and liquidation of all transactions entered into under the ISDA, including foreclosure against any collateral security. In addition, some of the ISDAs have cross default provisions under which a default by a party under another commodity or derivative contract, or the breach by a party of another borrowing obligation in excess of a specified threshold, is a breach under the ISDA. | |||||||||||||||||||||
Under the ISDA or similar agreements, the parties establish a dollar threshold of unsecured credit for each party in excess of which the party would be required to post collateral to secure its obligations to the other party. The amount of the unsecured credit threshold varies according to the senior, unsecured debt rating of the respective parties or that of a guarantor of the party’s obligations. The fair values of all transactions between the parties are netted under the master netting provisions. Transactions may include derivatives accounted for on-balance sheet as well as normal purchases and normal sales that are accounted for off-balance sheet. If the aggregate fair value of the transactions in a net loss position exceeds the unsecured credit threshold, then collateral is required to be posted in an amount equal to the amount by which the unsecured credit threshold is exceeded. The obligations of DPL are stand-alone obligations without the guarantee of PHI. If DPL’s credit rating were to fall below “investment grade,” the unsecured credit threshold would typically be set at zero and collateral would be required for the entire net loss position. Exchange-traded contracts are required to be fully collateralized without regard to the credit rating of the holder. | |||||||||||||||||||||
The gross fair value of DPL’s derivative liabilities with credit-risk-related contingent features on December 31, 2013 and 2012, was zero and $4 million, respectively. As of those dates, DPL had posted no cash collateral in the normal course of business against its gross derivative liabilities. If DPL’s debt ratings had been downgraded below investment grade as of December 31, 2013 and 2012, DPL’s net settlement amounts would have been approximately zero and $2 million, respectively, and DPL would have been required to post collateral with the counterparties of approximately zero and $2 million, respectively. The net settlement and additional collateral amounts reflect the effect of offsetting transactions under master netting agreements. | |||||||||||||||||||||
DPL’s primary sources for posting cash collateral or letters of credit are PHI’s credit facilities, under which DPL is a borrower. As of December 31, 2013 and 2012, the aggregate amount of cash plus borrowing capacity under the credit facilities available to meet the liquidity needs of PHI’s utility subsidiaries was $332 million and $477 million, respectively. | |||||||||||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||||
(11) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||||||||||||||
ACE was ordered to enter into the SOCAs by the NJBPU, and under the SOCAs, ACE would have received payments from or made payments to electric generation facilities based on (i) the difference between the fixed price in the SOCAs and the price for capacity that clears PJM and (ii) ACE’s annual proportion of the total New Jersey load relative to the other EDCs in New Jersey. ACE began applying derivative accounting to two of its SOCAs as of June 30, 2012 because these generators cleared the 2015-2016 PJM capacity auction in May 2012. The fair value of the derivatives embedded in the SOCAs were deferred as Regulatory assets or Regulatory liabilities because the NJBPU allowed full recovery from ACE’s distribution customers for any payments made by ACE, and ACE’s distribution customers would be entitled to any payments received by ACE. | |||||||||||||||||||||
As further discussed in Note (6), “Regulatory Matters,” in light of a Federal district court order, which ruled that the SOCAs are void, invalid and unenforceable, and ACE’s subsequent termination of the SOCAs in the fourth quarter of 2013, ACE derecognized the derivative assets and derivative liabilities related to the SOCAs in the fourth quarter of 2013. | |||||||||||||||||||||
As of December 31, 2012, ACE had non-current Derivative assets of $8 million, and non-current Derivative liabilities of $11 million associated with the two SOCAs and offsetting Regulatory liability and Regulatory asset amounts, respectively. As of December 31, 2012, ACE had 180 megawatts (MWs) of capacity in a long position, with no collateral or netting applicable to the capacity. Unrealized gains and losses associated with these capacity derivatives, which netted to unrealized gains of $3 million and unrealized losses of $3 million for the years ended December 31, 2013 and 2012, respectively, have been deferred as Regulatory liabilities and Regulatory assets. |
Fair_Value_Disclosures
Fair Value Disclosures | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||||||||||
(14) FAIR VALUE DISCLOSURES | |||||||||||||||||||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||
PHI applies FASB guidance on fair value measurement and disclosures (ASC 820) that established a framework for measuring fair value and expanded disclosures about fair value measurements. As defined in the guidance, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). PHI utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. Accordingly, PHI utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). | |||||||||||||||||||||||||
The following tables set forth, by level within the fair value hierarchy, PHI’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2013 and 2012. As required by the guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. PHI’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Natural gas (c) | $ | 1 | $ | 1 | $ | — | $ | — | |||||||||||||||||
Restricted cash and cash equivalents | |||||||||||||||||||||||||
Treasury fund | 34 | 34 | — | — | |||||||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Money market funds | 15 | 15 | — | — | |||||||||||||||||||||
Life insurance contracts | 66 | — | 47 | 19 | |||||||||||||||||||||
$ | 116 | $ | 50 | $ | 47 | $ | 19 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Executive deferred compensation plan liabilities | |||||||||||||||||||||||||
Life insurance contracts | $ | 30 | $ | — | $ | 30 | $ | — | |||||||||||||||||
$ | 30 | $ | — | $ | 30 | $ | |||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2013. | ||||||||||||||||||||||||
(b) | The fair values of derivative assets and liabilities reflect netting by counterparty before the impact of collateral. | ||||||||||||||||||||||||
(c) | Represents natural gas swaps purchased by DPL as part of a natural gas hedging program approved by the DPSC. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Capacity (d) | $ | 8 | $ | — | $ | — | $ | 8 | |||||||||||||||||
Restricted cash equivalents | |||||||||||||||||||||||||
Treasury fund | 27 | 27 | — | — | |||||||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Money market funds | 17 | 17 | — | — | |||||||||||||||||||||
Life insurance contracts | 60 | — | 42 | 18 | |||||||||||||||||||||
$ | 112 | $ | 44 | $ | 42 | $ | 26 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Natural gas (c) | $ | 4 | $ | — | $ | — | $ | 4 | |||||||||||||||||
Capacity (d) | 11 | — | — | 11 | |||||||||||||||||||||
Executive deferred compensation plan liabilities | |||||||||||||||||||||||||
Life insurance contracts | 28 | — | 28 | — | |||||||||||||||||||||
$ | 43 | $ | — | $ | 28 | $ | 15 | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2012. | ||||||||||||||||||||||||
(b) | The fair values of derivative assets and liabilities reflect netting by counterparty before the impact of collateral. | ||||||||||||||||||||||||
(c) | Represents natural gas options purchased by DPL as part of a natural gas hedging program approved by the DPSC. | ||||||||||||||||||||||||
(d) | Represents derivatives associated with the ACE SOCAs. | ||||||||||||||||||||||||
PHI classifies its fair value balances in the fair value hierarchy based on the observability of the inputs used in the fair value calculation as follows: | |||||||||||||||||||||||||
Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis, such as the New York Mercantile Exchange (NYMEX). | |||||||||||||||||||||||||
Level 2 – Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using broker quotes in liquid markets and other observable data. Level 2 also includes those financial instruments that are valued using methodologies that have been corroborated by observable market data through correlation or by other means. Significant assumptions are observable in the marketplace throughout the full term of the instrument and can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. | |||||||||||||||||||||||||
Executive deferred compensation plan assets and liabilities categorized as level 2 consist of life insurance policies and certain employment agreement obligations. The life insurance policies are categorized as level 2 assets because they are valued based on the assets underlying the policies, which consist of short-term cash equivalents and fixed income securities that are priced using observable market data and can be liquidated for the value of the underlying assets as of December 31, 2013. The level 2 liability associated with the life insurance policies represents a deferred compensation obligation, the value of which is tracked via underlying insurance sub-accounts. The sub-accounts are designed to mirror existing mutual funds and money market funds that are observable and actively traded. | |||||||||||||||||||||||||
The value of certain employment agreement obligations (which are included with life insurance contracts in the tables above) is derived using a discounted cash flow valuation technique. The discounted cash flow calculations are based on a known and certain stream of payments to be made over time that are discounted to determine their net present value. The primary variable input, the discount rate, is based on market-corroborated and observable published rates. These obligations have been classified as level 2 within the fair value hierarchy because the payment streams represent contractually known and certain amounts and the discount rate is based on published, observable data. | |||||||||||||||||||||||||
Level 3 – Pricing inputs that are significant and generally less observable than those from objective sources. Level 3 includes those financial instruments that are valued using models or other valuation methodologies. | |||||||||||||||||||||||||
Derivative instruments categorized as level 3 include natural gas options used by DPL as part of a natural gas hedging program approved by the DPSC and capacity under the SOCAs entered into by ACE: | |||||||||||||||||||||||||
• | DPL applies a Black-Scholes model to value its options with inputs, such as forward price curves, contract prices, contract volumes, the risk-free rate and implied volatility factors that are based on a range of historical NYMEX option prices. DPL maintains valuation policies and procedures and reviews the validity and relevance of the inputs used to estimate the fair value of its options. As of December 31, 2013, all of these contracts classified as level 3 derivative instruments have settled. | ||||||||||||||||||||||||
• | ACE used a discounted cash flow methodology to estimate the fair value of the capacity derivatives embedded in the SOCAs. ACE utilized an external valuation specialist to estimate annual zonal PJM capacity prices through the 2030-2031 auction. The capacity price forecast was based on various assumptions that impact the cost of constructing new generation facilities, including zonal load forecasts, zonal fuel and energy prices, generation capacity and transmission planning, and environmental legislation and regulation. ACE reviewed the assumptions and resulting capacity price forecast for reasonableness. ACE used the capacity price forecast to estimate future cash flows. A significant change in the forecasted prices would have a significant impact on the estimated fair value of the SOCAs. ACE employed a discount rate reflective of the estimated weighted average cost of capital for merchant generation companies since payments under the SOCAs are contingent on providing generation capacity. As further discussed in Note (7), “Regulatory Matters,” ACE derecognized the derivative assets and derivative liabilities related to the SOCAs in the fourth quarter of 2013. | ||||||||||||||||||||||||
The tables below summarize the primary unobservable inputs used to determine the fair value of PHI’s level 3 instruments and the range of values that could be used for those inputs as of December 31, 2012: | |||||||||||||||||||||||||
Type of Instrument | Fair Value at | Valuation Technique | Unobservable Input | Range | |||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Natural gas options | $ | (4 | ) | Option model | Volatility factor | 1.57 - 2.00 | |||||||||||||||||||
Capacity contracts, net | (3 | ) | Discounted cash flow | Discount rate | 5% - 9% | ||||||||||||||||||||
PHI used values within these ranges as part of its fair value estimates. A significant change in any of the unobservable inputs within these ranges would have an insignificant impact on the reported fair value as of December 31, 2012. | |||||||||||||||||||||||||
Executive deferred compensation plan assets include certain life insurance policies that are valued using the cash surrender value of the policies, net of loans against those policies. The cash surrender values do not represent a quoted price in an active market; therefore, those inputs are unobservable and the policies are categorized as level 3. Cash surrender values are provided by third parties and reviewed by PHI for reasonableness. | |||||||||||||||||||||||||
Reconciliations of the beginning and ending balances of PHI’s fair value measurements using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012 are shown below: | |||||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Natural | Life | Capacity | Natural | Life | Capacity | ||||||||||||||||||||
Gas | Insurance | Gas | Insurance | ||||||||||||||||||||||
Contracts | Contracts | ||||||||||||||||||||||||
(millions of dollars) | (millions of dollars) | ||||||||||||||||||||||||
Balance as of January 1 | $ | (4 | ) | $ | 18 | $ | (3 | ) | $ | (15 | ) | $ | 17 | $ | — | ||||||||||
Total gains (losses) (realized and unrealized): | |||||||||||||||||||||||||
Included in income | — | 4 | — | — | 4 | — | |||||||||||||||||||
Included in accumulated other comprehensive loss | — | — | — | — | — | — | |||||||||||||||||||
Included in regulatory liabilities | — | — | 3 | (2 | ) | — | (3 | ) | |||||||||||||||||
Purchases | — | — | — | — | — | — | |||||||||||||||||||
Issuances | — | (3 | ) | — | — | (3 | ) | — | |||||||||||||||||
Settlements | 4 | — | — | 13 | — | — | |||||||||||||||||||
Transfers in (out) of level 3 | — | — | — | — | — | — | |||||||||||||||||||
Balance as of December 31 | $ | — | $ | 19 | $ | — | $ | (4 | ) | $ | 18 | $ | (3 | ) | |||||||||||
The breakdown of realized and unrealized gains or (losses) on level 3 instruments included in income as a component of Other income or Other operation and maintenance expense for the periods below were as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Total net gains included in income for the period | $ | 4 | $ | 4 | |||||||||||||||||||||
Change in unrealized gains relating to assets still held at reporting date | $ | 4 | $ | 4 | |||||||||||||||||||||
Other Financial Instruments | |||||||||||||||||||||||||
The estimated fair values of PHI’s Long-term debt instruments that are measured at amortized cost in PHI’s consolidated financial statements and the associated level of the estimates within the fair value hierarchy as of December 31, 2013 and 2012 are shown in the tables below. As required by the fair value measurement guidance, debt instruments are classified in their entirety within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. PHI’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, which may affect the valuation of fair value debt instruments and their placement within the fair value hierarchy levels. | |||||||||||||||||||||||||
The fair value of Long-term debt and Transition Bonds categorized as level 2 is based on a blend of quoted prices for the debt and quoted prices for similar debt on the measurement date. The blend places more weight on current pricing information when determining the final fair value measurement. The fair value information is provided by brokers, and PHI reviews the methodologies and results. | |||||||||||||||||||||||||
The fair value of Long-term debt categorized as level 3 is based on a discounted cash flow methodology using observable inputs, such as the U.S. Treasury yield, and unobservable inputs, such as credit spreads, because quoted prices for the debt or similar debt in active markets were insufficient. The Long-term project funding represents debt instruments issued by Pepco Energy Services related to its energy savings contracts. Long-term project funding is categorized as level 3 because PHI concluded that the amortized cost carrying amounts for these instruments approximates fair value, which does not represent a quoted price in an active market. | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (a) | $ | 4,850 | $ | — | $ | 4,289 | $ | 561 | |||||||||||||||||
Transition Bonds (b) | 284 | — | 284 | — | |||||||||||||||||||||
Long-term project funding | 12 | — | — | 12 | |||||||||||||||||||||
$ | 5,146 | $ | — | $ | 4,573 | $ | 573 | ||||||||||||||||||
(a) | The carrying amount for Long-term debt is $4,456 million as of December 31, 2013. | ||||||||||||||||||||||||
(b) | The carrying amount for Transition Bonds, including amounts due within one year, is $255 million as of December 31, 2013. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (b) | $ | 5,004 | $ | — | $ | 4,517 | $ | 487 | |||||||||||||||||
Transition Bonds (c) | 341 | — | 341 | — | |||||||||||||||||||||
Long-term project funding | 13 | — | — | 13 | |||||||||||||||||||||
$ | 5,358 | $ | — | $ | 4,858 | $ | 500 | ||||||||||||||||||
(a) | Certain debt instruments that were categorized as level 1 at December 31, 2012, have been reclassified as level 2 to conform to the current period presentation. | ||||||||||||||||||||||||
(b) | The carrying amount for Long-term debt is $4,177 million as of December 31, 2012. | ||||||||||||||||||||||||
(c) | The carrying amount for Transition Bonds, including amounts due within one year, is $295 million as of December 31, 2012. | ||||||||||||||||||||||||
The carrying amounts of all other financial instruments in the accompanying consolidated financial statements approximate fair value. | |||||||||||||||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||||||||||
(11) FAIR VALUE DISCLOSURES | |||||||||||||||||||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||
Pepco applies FASB guidance on fair value measurement and disclosures (ASC 820) that established a framework for measuring fair value and expanded disclosures about fair value measurements. As defined in the guidance, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Pepco utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. Accordingly, Pepco utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). | |||||||||||||||||||||||||
The following tables set forth, by level within the fair value hierarchy, Pepco’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2013 and 2012. As required by the guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Pepco’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Restricted cash equivalents | |||||||||||||||||||||||||
Treasury fund | $ | 3 | $ | 3 | $ | — | $ | — | |||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Money market funds | 13 | 13 | — | — | |||||||||||||||||||||
Life insurance contracts | 61 | — | 43 | 18 | |||||||||||||||||||||
$ | 77 | $ | 16 | $ | 43 | $ | 18 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Executive deferred compensation plan liabilities | |||||||||||||||||||||||||
Life insurance contracts | $ | 7 | $ | — | $ | 7 | $ | — | |||||||||||||||||
$ | 7 | $ | — | $ | 7 | $ | — | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2013. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Money market funds | $ | 15 | $ | 15 | $ | — | $ | — | |||||||||||||||||
Life insurance contracts | 56 | — | 38 | 18 | |||||||||||||||||||||
$ | 71 | $ | 15 | $ | 38 | $ | 18 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Executive deferred compensation plan liabilities | |||||||||||||||||||||||||
Life insurance contracts | $ | 9 | $ | — | $ | 9 | $ | — | |||||||||||||||||
$ | 9 | $ | — | $ | 9 | $ | — | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2012. | ||||||||||||||||||||||||
Pepco classifies its fair value balances in the fair value hierarchy based on the observability of the inputs used in the fair value calculation as follows: | |||||||||||||||||||||||||
Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | |||||||||||||||||||||||||
Level 2 – Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using broker quotes in liquid markets and other observable data. Level 2 also includes those financial instruments that are valued using methodologies that have been corroborated by observable market data through correlation or by other means. Significant assumptions are observable in the marketplace throughout the full term of the instrument and can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. | |||||||||||||||||||||||||
Executive deferred compensation plan assets and liabilities categorized as level 2 consist of life insurance policies and certain employment agreement obligations. The life insurance policies are categorized as level 2 assets because they are valued based on the assets underlying the policies, which consist of short-term cash equivalents and fixed income securities that are priced using observable market data and can be liquidated for the value of the underlying assets as of December 31, 2013. The level 2 liability associated with the life insurance policies represents a deferred compensation obligation, the value of which is tracked via underlying insurance sub-accounts. The sub-accounts are designed to mirror existing mutual funds and money market funds that are observable and actively traded. | |||||||||||||||||||||||||
The value of certain employment agreement obligations (which are included in life insurance contracts in the tables above) is derived using a discounted cash flow valuation technique. The discounted cash flow calculations are based on a known and certain stream of payments to be made over time that are discounted to determine their net present value. The primary variable input, the discount rate, is based on market-corroborated and observable published rates. These obligations have been classified as level 2 within the fair value hierarchy because the payment streams represent contractually known and certain amounts and the discount rate is based on published, observable data. | |||||||||||||||||||||||||
Level 3 – Pricing inputs that are significant and generally less observable than those from objective sources. Level 3 includes those financial instruments that are valued using models or other valuation methodologies. | |||||||||||||||||||||||||
Executive deferred compensation plan assets include certain life insurance policies that are valued using the cash surrender value of the policies, net of loans against those policies. The cash surrender values do not represent a quoted price in an active market; therefore, those inputs are unobservable and the policies are categorized as level 3. Cash surrender values are provided by third parties and reviewed by Pepco for reasonableness. | |||||||||||||||||||||||||
Reconciliations of the beginning and ending balances of Pepco’s fair value measurements using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012 are shown below. | |||||||||||||||||||||||||
Life Insurance Contracts | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Balance as of January 1 | $ | 18 | $ | 17 | |||||||||||||||||||||
Total gains (losses) (realized and unrealized): | |||||||||||||||||||||||||
Included in income | 4 | 4 | |||||||||||||||||||||||
Included in accumulated other comprehensive loss | — | — | |||||||||||||||||||||||
Purchases | — | — | |||||||||||||||||||||||
Issuances | (3 | ) | (3 | ) | |||||||||||||||||||||
Settlements | (1 | ) | — | ||||||||||||||||||||||
Transfers in (out) of level 3 | — | — | |||||||||||||||||||||||
Balance as of December 31 | $ | 18 | $ | 18 | |||||||||||||||||||||
The breakdown of realized and unrealized gains on level 3 instruments included in income as a component of Other operation and maintenance expense for the periods below were as follows: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Total gains included in income for the period | $ | 4 | $ | 4 | |||||||||||||||||||||
Change in unrealized gains relating to assets still held at reporting date | $ | 4 | $ | 4 | |||||||||||||||||||||
Other Financial Instruments | |||||||||||||||||||||||||
The estimated fair values of Pepco’s Long-term debt instruments that are measured at amortized cost in Pepco’s financial statements and the associated level of the estimates within the fair value hierarchy as of December 31, 2013 and 2012 are shown in the tables below. As required by the fair value measurement guidance, debt instruments are classified in their entirety within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. Pepco’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, which may affect the valuation of fair value debt instruments and their placement within the fair value hierarchy levels. | |||||||||||||||||||||||||
The fair value of Long-term debt categorized as level 2 is based on a blend of quoted prices for the debt and quoted prices for similar debt on the measurement date. The blend places more weight on current pricing information when determining the final fair value measurement. The fair value information is provided by brokers and Pepco reviews the methodologies and results. | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (a) | $ | 2,127 | $ | — | $ | 2,127 | $ | — | |||||||||||||||||
$ | 2,127 | $ | — | $ | 2,127 | $ | — | ||||||||||||||||||
(a) | The carrying amount for Long-term debt is $1,899 million as of December 31, 2013. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1)(a) | (Level 2)(a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (b) | $ | 2,160 | $ | — | $ | 2,160 | $ | — | |||||||||||||||||
$ | 2,160 | $ | — | $ | 2,160 | $ | — | ||||||||||||||||||
(a) | Certain debt instruments that were categorized as level 1 at December 31, 2012, have been reclassified as level 2 to conform to the current period presentation. | ||||||||||||||||||||||||
(b) | The carrying amount for Long-term debt is $1,701 million as of December 31, 2012. | ||||||||||||||||||||||||
The carrying amount of all other financial instruments in the accompanying financial statements approximate fair value. | |||||||||||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||||||||||
(13) FAIR VALUE DISCLOSURES | |||||||||||||||||||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||
DPL applies FASB guidance on fair value measurement and disclosures (ASC 820) that established a framework for measuring fair value and expanded disclosures about fair value measurements. As defined in the guidance, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). DPL utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. Accordingly, DPL utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). | |||||||||||||||||||||||||
The following tables set forth, by level within the fair value hierarchy, DPL’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2013 and 2012. As required by the guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. DPL’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Natural gas (c) | $ | 1 | $ | 1 | $ | — | $ | — | |||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Money market funds | 1 | 1 | — | — | |||||||||||||||||||||
Life insurance contracts | 1 | — | — | 1 | |||||||||||||||||||||
$ | 3 | $ | 2 | $ | — | $ | 1 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Life insurance contracts | $ | 1 | $ | — | $ | 1 | $ | — | |||||||||||||||||
$ | 1 | $ | — | $ | 1 | $ | — | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2013. | ||||||||||||||||||||||||
(b) | The fair value of derivative assets reflect netting by counterparty before the impact of collateral. | ||||||||||||||||||||||||
(c) | Represents natural gas swaps purchased by DPL as part of a natural gas hedging program approved by the DPSC. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Money market funds | $ | 2 | $ | 2 | $ | — | $ | — | |||||||||||||||||
Life insurance contracts | 1 | — | — | 1 | |||||||||||||||||||||
$ | 3 | $ | 2 | $ | — | $ | 1 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Natural gas (c) | $ | 4 | $ | — | $ | — | $ | 4 | |||||||||||||||||
$ | 4 | $ | — | $ | — | $ | 4 | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2012. | ||||||||||||||||||||||||
(b) | The fair value of derivative liabilities reflect netting by counterparty before the impact of collateral. | ||||||||||||||||||||||||
(c) | Represents natural gas options purchased by DPL as part of a natural gas hedging program approved by the DPSC. | ||||||||||||||||||||||||
DPL classifies its fair value balances in the fair value hierarchy based on the observability of the inputs used in the fair value calculation as follows: | |||||||||||||||||||||||||
Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis, such as the New York Mercantile Exchange (NYMEX). | |||||||||||||||||||||||||
Level 2 – Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using broker quotes in liquid markets and other observable data. Level 2 also includes those financial instruments that are valued using methodologies that have been corroborated by observable market data through correlation or by other means. Significant assumptions are observable in the marketplace throughout the full term of the instrument and can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. | |||||||||||||||||||||||||
Level 2 executive deferred compensation plan liabilities associated with the life insurance policies represent a deferred compensation obligation, the value of which is tracked via underlying insurance sub-accounts. The sub-accounts are designed to mirror existing mutual funds and money market funds that are observable and actively traded. | |||||||||||||||||||||||||
Level 3 – Pricing inputs that are significant and generally less observable than those from objective sources. Level 3 includes those financial instruments that are valued using models or other valuation methodologies. | |||||||||||||||||||||||||
Derivative instruments categorized as level 3 represent natural gas options used by DPL as part of a natural gas hedging program approved by the DPSC. DPL applies a Black-Scholes model to value its options with inputs, such as forward price curves, contract prices, contract volumes, the risk-free rate and implied volatility factors that are based on a range of historical NYMEX option prices. DPL maintains valuation policies and procedures and reviews the validity and relevance of the inputs used to estimate the fair value of its options. As of December 31, 2013, all of these contracts classified as level 3 derivative instruments have settled. | |||||||||||||||||||||||||
The table below summarizes the primary unobservable input used to determine the fair value of DPL’s level 3 instruments and the range of values that could be used for the input as of December 31, 2012: | |||||||||||||||||||||||||
Type of Instrument | Fair Value at | Valuation Technique | Unobservable Input | Range | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Natural gas options | $ | (4 | ) | Option model | Volatility factor | 1.57 – 2.00 | |||||||||||||||||||
DPL used values within this range as part of its fair value estimates. A significant change in the unobservable input within this range would have an insignificant impact on the reported fair value as of December 31, 2012. | |||||||||||||||||||||||||
Executive deferred compensation plan assets include certain life insurance policies that are valued using the cash surrender value of the policies, net of loans against those policies. The cash surrender values do not represent a quoted price in an active market; therefore, those inputs are unobservable and the policies are categorized as level 3. Cash surrender values are provided by third parties and reviewed by DPL for reasonableness. | |||||||||||||||||||||||||
Reconciliations of the beginning and ending balances of DPL’s fair value measurements using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012 are shown below: | |||||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Natural | Life | Natural | Life | ||||||||||||||||||||||
Gas | Insurance | Gas | Insurance | ||||||||||||||||||||||
Contracts | Contracts | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Balance as of January 1 | $ | (4 | ) | $ | 1 | $ | (15 | ) | $ | 1 | |||||||||||||||
Total gains (losses) (realized and unrealized): | |||||||||||||||||||||||||
Included in income | — | — | — | — | |||||||||||||||||||||
Included in accumulated other comprehensive loss | — | — | — | — | |||||||||||||||||||||
Included in regulatory liabilities | — | — | (2 | ) | — | ||||||||||||||||||||
Purchases | — | — | — | — | |||||||||||||||||||||
Issuances | — | — | — | — | |||||||||||||||||||||
Settlements | 4 | — | 13 | — | |||||||||||||||||||||
Transfers in (out) of Level 3 | — | — | — | — | |||||||||||||||||||||
Balance as of December 31 | $ | — | $ | 1 | $ | (4 | ) | $ | 1 | ||||||||||||||||
Other Financial Instruments | |||||||||||||||||||||||||
The estimated fair values of DPL’s Long-term debt instruments that are measured at amortized cost in DPL’s financial statements and the associated level of the estimates within the fair value hierarchy as of December 31, 2013 and 2012 are shown in the tables below. As required by the fair value measurement guidance, debt instruments are classified in their entirety within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. DPL’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, which may affect the valuation of fair value debt instruments and their placement within the fair value hierarchy levels. | |||||||||||||||||||||||||
The fair value of Long-term debt categorized as level 2 is based on a blend of quoted prices for the debt and quoted prices for similar debt on the measurement date. The blend places more weight on current pricing information when determining the final fair value measurement. The fair value information is provided by brokers and DPL reviews the methodologies and results. | |||||||||||||||||||||||||
The fair value of Long-term debt categorized as level 3 is based on a discounted cash flow methodology using observable inputs, such as the U.S. Treasury yield, and unobservable inputs, such as credit spreads, because quoted prices for the debt or similar debt in active markets were insufficient. | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (a) | $ | 960 | $ | — | $ | 850 | $ | 110 | |||||||||||||||||
$ | 960 | $ | — | $ | 850 | $ | 110 | ||||||||||||||||||
(a) | The carrying amount for Long-term debt is $967 million as of December 31, 2013. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (a) | $ | 990 | $ | — | $ | 877 | $ | 113 | |||||||||||||||||
$ | 990 | $ | — | $ | 877 | $ | 113 | ||||||||||||||||||
(a) | The carrying amount for Long-term debt is $917 million as of December 31, 2012. | ||||||||||||||||||||||||
The carrying amounts of all other financial instruments in the accompanying financial statements approximate fair value. | |||||||||||||||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||||||||||
(12) FAIR VALUE DISCLOSURES | |||||||||||||||||||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||
ACE applies FASB guidance on fair value measurement and disclosures (ASC 820) that established a framework for measuring fair value and expanded disclosures about fair value measurements. As defined in the guidance, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). ACE utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. Accordingly, ACE utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The guidance establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to unobservable inputs (level 3). | |||||||||||||||||||||||||
The following tables set forth by level within the fair value hierarchy ACE’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2013 and 2012. As required by the guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. ACE’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Restricted cash equivalents | |||||||||||||||||||||||||
Treasury fund | $ | 24 | $ | 24 | $ | — | $ | — | |||||||||||||||||
$ | 24 | $ | 24 | $ | — | $ | — | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2013. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Capacity (c) | $ | 8 | $ | — | $ | — | $ | 8 | |||||||||||||||||
Restricted cash equivalents | |||||||||||||||||||||||||
Treasury fund | 27 | 27 | — | — | |||||||||||||||||||||
$ | 35 | $ | 27 | $ | — | $ | 8 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Capacity (c) | $ | 11 | $ | — | $ | — | $ | 11 | |||||||||||||||||
Executive deferred compensation plan liabilities | |||||||||||||||||||||||||
Life insurance contracts | 1 | — | 1 | — | |||||||||||||||||||||
$ | 12 | $ | — | $ | 1 | $ | 11 | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2012. | ||||||||||||||||||||||||
(b) | The fair value of derivative assets and liabilities reflect netting by counterparty before the impact of collateral. | ||||||||||||||||||||||||
(c) | Represents derivatives associated with ACE SOCAs. | ||||||||||||||||||||||||
ACE classifies its fair value balances in the fair value hierarchy based on the observability of the inputs used in the fair value calculation as follows: | |||||||||||||||||||||||||
Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | |||||||||||||||||||||||||
Level 2 – Pricing inputs are other than quoted prices in active markets included in level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using broker quotes in liquid markets and other observable data. Level 2 also includes those financial instruments that are valued using methodologies that have been corroborated by observable market data through correlation or by other means. Significant assumptions are observable in the marketplace throughout the full term of the instrument and can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. | |||||||||||||||||||||||||
The level 2 liability associated with the life insurance policies represents a deferred compensation obligation, the value of which is tracked via underlying insurance sub-accounts. The sub-accounts are designed to mirror existing mutual funds and money market funds that are observable and actively traded. | |||||||||||||||||||||||||
Level 3 – Pricing inputs that are significant and generally less observable than those from objective sources. Level 3 includes those financial instruments that are valued using models or other valuation methodologies. | |||||||||||||||||||||||||
Derivative instruments categorized as level 3 represent capacity under the SOCAs entered into by ACE. | |||||||||||||||||||||||||
ACE used a discounted cash flow methodology to estimate the fair value of the capacity derivatives embedded in the SOCAs. ACE utilized an external consulting firm to estimate annual zonal PJM capacity prices through the 2030-2031 auction. The capacity price forecast was based on various assumptions that impact the cost of constructing new generation facilities, including zonal load forecasts, zonal fuel and energy prices, generation capacity and transmission planning, and environmental legislation and regulation. ACE reviewed the assumptions and resulting capacity price forecast for reasonableness. ACE used the capacity price forecast to estimate future cash flows. A significant change in the forecasted prices would have a significant impact on the estimated fair value of the SOCAs. ACE employed a discount rate reflective of the estimated weighted average cost of capital for merchant generation companies since payments under the SOCAs are contingent on providing generation capacity. As further discussed in Note (6), “Regulatory Matters,” ACE derecognized the derivative assets and derivative liabilities related to the SOCAs in the fourth quarter of 2013. | |||||||||||||||||||||||||
The table below summarizes the primary unobservable input used to determine the fair value of ACE’s level 3 instruments and the range of values that could be used for the input as of December 31, 2012: | |||||||||||||||||||||||||
Type of Instrument | Fair Value at | Valuation Technique | Unobservable Input | Range | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Capacity contracts, net | $ | (3 | ) | Discounted cash flow | Discount rate | 5% - 9% | |||||||||||||||||||
ACE used a value within this range as part of its fair value estimates. A significant change in the unobservable input within this range would have an insignificant impact on the reported fair value as of December 31, 2012. | |||||||||||||||||||||||||
A reconciliation of the beginning and ending balances of ACE’s fair value measurements using significant unobservable inputs (level 3) for the years ended December 31, 2013 and 2012 are shown below: | |||||||||||||||||||||||||
Capacity | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | (millions of dollars) | ||||||||||||||||||||||||
Balance as of January 1 | $ | (3 | ) | $ | — | ||||||||||||||||||||
Total gains (losses) (realized and unrealized): | |||||||||||||||||||||||||
Included in income | — | — | |||||||||||||||||||||||
Included in accumulated other comprehensive loss | — | — | |||||||||||||||||||||||
Included in regulatory liabilities and regulatory assets | 3 | (3 | ) | ||||||||||||||||||||||
Purchases | — | — | |||||||||||||||||||||||
Issuances | — | — | |||||||||||||||||||||||
Settlements | — | — | |||||||||||||||||||||||
Transfers in (out) of level 3 | — | — | |||||||||||||||||||||||
Balance as of December 31 | $ | — | $ | (3 | ) | ||||||||||||||||||||
Other Financial Instruments | |||||||||||||||||||||||||
The estimated fair values of ACE’s Long-term debt instruments that are measured at amortized cost in ACE’s consolidated financial statements and the associated level of the estimates within the fair value hierarchy as of December 31, 2013 and 2012 are shown in the table below. As required by the fair value measurement guidance, debt instruments are classified in their entirety within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. ACE’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, which may affect the valuation of fair value debt instruments and their placement within the fair value hierarchy levels. | |||||||||||||||||||||||||
The fair value of Long-term debt and Transition Bonds categorized as level 2 is based on a blend of quoted prices for the debt and quoted prices for similar debt on the measurement date. The blend places more weight on current pricing information when determining the final fair value measurement. The fair value information is provided by brokers and ACE reviews the methodologies and results. | |||||||||||||||||||||||||
The fair value of Long-term debt categorized as level 3 is based on a discounted cash flow methodology using observable inputs, such as the U.S. Treasury yield, and unobservable inputs, such as credit spreads, because quoted prices for the debt or similar debt in active markets were insufficient. | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (a) | $ | 959 | $ | — | $ | 744 | $ | 215 | |||||||||||||||||
Transition Bonds (b) | 285 | — | 285 | — | |||||||||||||||||||||
$ | 1,244 | $ | — | $ | 1,029 | $ | 215 | ||||||||||||||||||
(a) | The carrying amount for Long-term debt is $860 million as of December 31, 2013. | ||||||||||||||||||||||||
(b) | The carrying amount for Transition Bonds, including amounts due within one year, is $255 million as of December 31, 2013. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (a) | $ | 1,016 | $ | — | $ | 884 | $ | 132 | |||||||||||||||||
Transition Bonds (b) | 341 | — | 341 | — | |||||||||||||||||||||
$ | 1,357 | $ | — | $ | 1,225 | $ | 132 | ||||||||||||||||||
(a) | The carrying amount for Long-term debt is $829 million as of December 31, 2012. | ||||||||||||||||||||||||
(b) | The carrying amount for Transition Bonds, including amounts due within one year, is $295 million as of December 31, 2012. | ||||||||||||||||||||||||
The carrying amounts of all other financial instruments in the accompanying consolidated financial statements approximate fair value. |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||
(15) COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||
General Litigation and Other Matters | |||||||||||||||||||||
From time to time, PHI and its subsidiaries are named as defendants in litigation, usually relating to general liability or auto liability claims that resulted in personal injury or property damage to third parties. PHI and each of its subsidiaries are self-insured against such claims up to a certain self-insured retention amount and maintain insurance coverage against such claims at higher levels, to the extent deemed prudent by management. In addition, PHI’s contracts with its vendors generally require the vendors to name PHI and/or its subsidiaries as additional insureds for the amounts at least equal to PHI’s self-insured retention. Further, PHI’s contracts with its vendors require the vendors to indemnify PHI for various acts and activities that may give rise to claims against PHI. Loss contingency liabilities for both asserted and unasserted claims are recognized if it is probable that a loss will result from such a claim and if the amounts of the losses can be reasonably estimated. Although the outcome of the claims and proceedings cannot be predicted with any certainty, management believes that there are no existing claims or proceedings that are likely to have a material adverse effect on PHI’s or its subsidiaries’ financial condition, results of operations or cash flows. At December 31, 2013, PHI had loss contingency liabilities for general litigation totaling approximately $30 million (including amounts related to the matters specifically described below) and the portion of these loss contingency liabilities in excess of the self-insured retention amount was substantially offset by insurance receivables. | |||||||||||||||||||||
Pepco Substation Injury Claim | |||||||||||||||||||||
In May 2013, a contract worker erecting a scaffold at a Pepco substation came into contact with an energized station service feeder and suffered serious injuries. In August 2013, the individual filed suit against Pepco in the Circuit Court for Montgomery County, Maryland, seeking damages for medical expenses, loss of future earning capacity, pain and suffering and the cost of a life care plan aggregating to a maximum claim of approximately $28.1 million. Discovery is ongoing in the case and, if a settlement cannot be reached with respect to this matter, a trial is expected to begin in October 2014. Pepco has notified its insurers of the incident and believes that the insurance policies in force at the time of the incident, including the policies of the contractor performing the scaffold work (which name Pepco as an additional insured), will offset substantially all of Pepco’s costs associated with the resolution of this matter, including Pepco’s self-insured retention amount. At December 31, 2013, Pepco has concluded that a loss is probable with respect to this matter and has recorded an estimated loss contingency liability, which is included in the liability for general litigation referred to above as of December 31, 2013. Pepco has also concluded as of December 31, 2013 that realization of its insurance claims associated with this matter is probable and, accordingly, has recorded an estimated insurance receivable offsetting substantially all of the related loss contingency liability. | |||||||||||||||||||||
ACE Asbestos Claim | |||||||||||||||||||||
In September 2011, an asbestos complaint was filed in the New Jersey Superior Court, Law Division, against ACE (among other defendants) asserting claims under New Jersey’s Wrongful Death and Survival statutes. The complaint, filed by the estate of a decedent who was the wife of a former employee of ACE, alleges that the decedent’s mesothelioma was caused by exposure to asbestos brought home by her husband on his work clothes. New Jersey courts have recognized a cause of action against a premise owner in a so-called “take home” case if it can be shown that the harm was foreseeable. In this case, the complaint seeks recovery of an unspecified amount of damages for, among other things, the decedent’s past medical expenses, loss of earnings, and pain and suffering between the time of injury and death, and asserts a punitive damage claim. At December 31, 2013, ACE has concluded that a loss is probable with respect to this matter and has recorded an estimated loss contingency liability, which is included in the liability for general litigation referred to above as of December 31, 2013. However, due to the inherent uncertainty of litigation, ACE is unable to estimate a maximum amount of possible loss because the damages sought are indeterminate and the matter involves facts that ACE believes are distinguishable from the facts of the “take-home” cause of action recognized by the New Jersey courts. | |||||||||||||||||||||
ACE Electrical Contact Injury Claims | |||||||||||||||||||||
In October 2010, a farm combine came into and remained in contact with a primary electric line in ACE’s service territory in New Jersey. As a result, two individuals operating the combine received fatal electrical contact injuries. While attempting to rescue those two individuals, another individual sustained third-degree burns to his torso and upper extremities. In September 2012, the individual who received third-degree burns filed suit in New Jersey Superior Court, Salem County. In October 2012, additional suits were filed in the same court by or on behalf of the estates of the deceased individuals. Plaintiffs in each of the cases are seeking indeterminate damages and allege that ACE was negligent in the design, construction, erection, operation and maintenance of its poles, power lines, and equipment, and that ACE failed to warn and protect the public from the foreseeable dangers of farm equipment contacting electric lines. Discovery is ongoing in this matter and the litigation involves a number of other defendants and the filing of numerous cross-claims. ACE has notified its insurers of the incident and believes that the insurance policies in force at the time of the incident will offset ACE’s costs associated with the resolution of this matter in excess of ACE’s self-insured retention amount. At December 31, 2013, ACE has concluded that a loss is probable with respect to these claims and has recorded an estimated loss contingency liability, which is included in the liability for general litigation referred to above as of December 31, 2013. ACE has also concluded as of December 31, 2013 that realization of its insurance claims associated with this matter is probable and, accordingly, has recorded an estimated insurance receivable offsetting substantially all of the loss contingency liability in excess of ACE’s self-insured retention amount. | |||||||||||||||||||||
Pepco Energy Services Billing Claims | |||||||||||||||||||||
During 2012, Pepco Energy Services received letters on behalf of two school districts in Maryland, which claim that invoices in connection with electricity supply contracts contained certain allegedly unauthorized charges, totaling approximately $7 million. The school districts also claim additional compounded interest totaling approximately $9 million. Although no litigation involving Pepco Energy Services related to these claims has commenced, in August and September 2013, Pepco Energy Services received correspondence from the Superintendent of each of the school districts advising of the intention to render a decision regarding an unresolved dispute between the school district and Pepco Energy Services. Pepco Energy Services filed timely answers to the Superintendents challenging the authority of the respective Superintendents to render decisions on the claims and also disputing the merits of the allegations regarding unauthorized charges as well as the claims of entitlement to compounded interest. To date, one of the two districts has submitted a late response to the answer of Pepco Energy Services maintaining that its Superintendent does have authority to render a decision but acknowledging the availability of administrative and judicial review of the merits of any decision. The response of the other district is overdue. As of December 31, 2013, Pepco Energy Services has concluded that a loss is reasonably possible with respect to these claims, but the amount of loss, if any, is not reasonably estimable. | |||||||||||||||||||||
Environmental Matters | |||||||||||||||||||||
PHI, through its subsidiaries, is subject to regulation by various federal, regional, state and local authorities with respect to the environmental effects of its operations, including air and water quality control, solid and hazardous waste disposal and limitations on land use. Although penalties assessed for violations of environmental laws and regulations are not recoverable from customers of PHI’s utility subsidiaries, environmental clean-up costs incurred by Pepco, DPL and ACE generally are included by each company in its respective cost of service for ratemaking purposes. The total accrued liabilities for the environmental contingencies described below of PHI and its subsidiaries at December 31, 2013 are summarized as follows: | |||||||||||||||||||||
Legacy Generation | |||||||||||||||||||||
Transmission | Regulated | Non- | Other | Total | |||||||||||||||||
and Distribution | Regulated | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Balance as of January 1 | $ | 15 | $ | 7 | $ | 5 | $ | 2 | $ | 29 | |||||||||||
Accruals | 5 | — | — | 1 | 6 | ||||||||||||||||
Payments | (1 | ) | (1 | ) | — | (3 | ) | (5 | ) | ||||||||||||
Balance as of December 31 | 19 | 6 | 5 | — | 30 | ||||||||||||||||
Less amounts in Other Current Liabilities | 3 | 1 | — | — | 4 | ||||||||||||||||
Amounts in Other Deferred Credits | $ | 16 | $ | 5 | $ | 5 | $ | — | $ | 26 | |||||||||||
Conectiv Energy Wholesale Power Generation Sites | |||||||||||||||||||||
In July 2010, PHI sold the Conectiv Energy wholesale power generation business to Calpine. Under New Jersey’s Industrial Site Recovery Act (ISRA), the transfer of ownership triggered an obligation on the part of Conectiv Energy to remediate any environmental contamination at each of the nine Conectiv Energy generating facility sites located in New Jersey. Under the terms of the sale, Calpine has assumed responsibility for performing the ISRA-required remediation and for the payment of all related ISRA compliance costs up to $10 million. PHI is obligated to indemnify Calpine for any ISRA compliance remediation costs in excess of $10 million. According to PHI’s estimates, the costs of ISRA-required remediation activities at the nine generating facility sites located in New Jersey are in the range of approximately $7 million to $18 million. The amount accrued by PHI for the ISRA-required remediation activities at the nine generating facility sites is included in the table above in the column entitled “Legacy Generation – Non-Regulated.” | |||||||||||||||||||||
In September 2011, PHI received a request for data from the U.S. Environmental Protection Agency (EPA) regarding operations at the Deepwater generating facility in New Jersey (which was included in the sale to Calpine) between February 2004 and July 1, 2010, to demonstrate compliance with the Clean Air Act’s new source review permitting program. PHI responded to the data request. Under the terms of the Calpine sale, PHI is obligated to indemnify Calpine for any failure of PHI, on or prior to the closing date of the sale, to comply with environmental laws attributable to the construction of new, or modification of existing, sources of air emissions. At this time, PHI does not expect this inquiry to have a material adverse effect on its consolidated financial condition, results of operations or cash flows. | |||||||||||||||||||||
Franklin Slag Pile Site | |||||||||||||||||||||
In November 2008, ACE received a general notice letter from EPA concerning the Franklin Slag Pile site in Philadelphia, Pennsylvania, asserting that ACE is a potentially responsible party (PRP) that may have liability for clean-up costs with respect to the site and for the costs of implementing an EPA-mandated remedy. EPA’s claims are based on ACE’s sale of boiler slag from the B.L. England generating facility, then owned by ACE, to MDC Industries, Inc. (MDC) during the period June 1978 to May 1983. EPA claims that the boiler slag ACE sold to MDC contained copper and lead, which are hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), and that the sales transactions may have constituted an arrangement for the disposal or treatment of hazardous substances at the site, which could be a basis for liability under CERCLA. The EPA letter also states that, as of the date of the letter, EPA’s expenditures for response measures at the site have exceeded $6 million. EPA’s feasibility study for this site conducted in 2007 identified a range of alternatives for permanent remedial measures with varying cost estimates, and the estimated cost of EPA’s preferred alternative is approximately $6 million. | |||||||||||||||||||||
ACE believes that the B.L. England boiler slag sold to MDC was a valuable material with various industrial applications and, therefore, the sale was not an arrangement for the disposal or treatment of any hazardous substances as would be necessary to constitute a basis for liability under CERCLA. ACE intends to contest any claims to the contrary made by EPA. In a May 2009 decision arising under CERCLA, which did not involve ACE, the U.S. Supreme Court rejected an EPA argument that the sale of a useful product constituted an arrangement for disposal or treatment of hazardous substances. While this decision supports ACE’s position, at this time ACE cannot predict how EPA will proceed with respect to the Franklin Slag Pile site, or what portion, if any, of the Franklin Slag Pile site response costs EPA would seek to recover from ACE. Costs to resolve this matter are not expected to be material and are expensed as incurred. | |||||||||||||||||||||
Peck Iron and Metal Site | |||||||||||||||||||||
EPA informed Pepco in a May 2009 letter that Pepco may be a PRP under CERCLA with respect to the cleanup of the Peck Iron and Metal site in Portsmouth, Virginia, and for costs EPA has incurred in cleaning up the site. The EPA letter states that Peck Iron and Metal purchased, processed, stored and shipped metal scrap from military bases, governmental agencies and businesses and that Peck’s metal scrap operations resulted in the improper storage and disposal of hazardous substances. EPA bases its allegation that Pepco arranged for disposal or treatment of hazardous substances sent to the site on information provided by former Peck Iron and Metal personnel, who informed EPA that Pepco was a customer at the site. Pepco has advised EPA by letter that its records show no evidence of any sale of scrap metal by Pepco to the site. Even if EPA has such records and such sales did occur, Pepco believes that any such scrap metal sales may be entitled to the recyclable material exemption from CERCLA liability. In a Federal Register notice published in November 2009, EPA placed the Peck Iron and Metal site on the National Priorities List. The National Priorities List, among other things, serves as a guide to EPA in determining which sites warrant further investigation to assess the nature and extent of the human health and environmental risks associated with a site. In September 2011, EPA initiated a remedial investigation/feasibility study (RI/FS) using federal funds. Pepco cannot at this time estimate an amount or range of reasonably possible loss associated with this RI/FS, any remediation activities to be performed at the site or any other costs that EPA might seek to impose on Pepco. | |||||||||||||||||||||
Ward Transformer Site | |||||||||||||||||||||
In April 2009, a group of PRPs with respect to the Ward Transformer site in Raleigh, North Carolina, filed a complaint in the U.S. District Court for the Eastern District of North Carolina, alleging cost recovery and/or contribution claims against a number of entities, including Pepco, DPL and ACE, based on their alleged sale of transformers to Ward Transformer, with respect to past and future response costs incurred by the PRP group in performing a removal action at the site. In a March 2010 order, the court denied the defendants’ motion to dismiss. The litigation is moving forward with certain “test case” defendants (not including Pepco, DPL and ACE) filing summary judgment motions regarding liability. The case has been stayed as to the remaining defendants pending rulings upon the test cases. In a January 31, 2013 order, the Federal district court granted summary judgment for the test case defendant whom plaintiffs alleged was liable based on its sale of transformers to Ward Transformer. The Federal district court’s order, which plaintiffs have appealed to the U.S. Court of Appeals for the Fourth Circuit, addresses only the liability of the test case defendant. PHI has concluded that a loss is reasonably possible with respect to this matter, but is unable to estimate an amount or range of reasonably possible losses to which it may be exposed. PHI does not believe that any of its three utility subsidiaries had extensive business transactions, if any, with the Ward Transformer site. | |||||||||||||||||||||
Benning Road Site | |||||||||||||||||||||
In September 2010, PHI received a letter from EPA identifying the Benning Road location, consisting of a generation facility operated by Pepco Energy Services until the facility was deactivated in June 2012, and a transmission and distribution facility operated by Pepco, as one of six land-based sites potentially contributing to contamination of the lower Anacostia River. The letter stated that the principal contaminants of concern are polychlorinated biphenyls and polycyclic aromatic hydrocarbons. In December 2011, the U.S. District Court for the District of Columbia approved a consent decree entered into by Pepco and Pepco Energy Services with the District of Columbia Department of the Environment (DDOE), which requires Pepco and Pepco Energy Services to conduct a RI/FS for the Benning Road site and an approximately 10 to 15 acre portion of the adjacent Anacostia River. The RI/FS will form the basis for DDOE’s selection of a remedial action for the Benning Road site and for the Anacostia River sediment associated with the site. The consent decree does not obligate Pepco or Pepco Energy Services to pay for or perform any remediation work, but it is anticipated that DDOE will look to the companies to assume responsibility for cleanup of any conditions in the river that are determined to be attributable to past activities at the Benning Road site. | |||||||||||||||||||||
In December 2012, DDOE approved the RI/FS work plan. RI/FS field work commenced in January 2013 and is still in progress. In October 2013, Pepco and Pepco Energy Services submitted a work plan addendum for approval by DDOE identifying the location of groundwater monitoring wells to be installed at the site and sampled as the last phase of the field work. The work plan addendum has been revised in response to comments from DDOE, and it is expected that the addendum will be approved and the next phase of field work will commence before the end of the first quarter of 2014. Once all of the field work has been completed, Pepco and Pepco Energy Services will prepare RI/FS reports for review and approval by DDOE after solicitation and consideration of public comment. The next status report to the court is due on May 24, 2014. | |||||||||||||||||||||
The remediation costs accrued for this matter are included in the table above in the columns entitled “Transmission and Distribution,” “Legacy Generation – Regulated,” and “Legacy Generation – Non-Regulated.” | |||||||||||||||||||||
Indian River Oil Release | |||||||||||||||||||||
In 2001, DPL entered into a consent agreement with the Delaware Department of Natural Resources and Environmental Control for remediation, site restoration, natural resource damage compensatory projects and other costs associated with environmental contamination resulting from an oil release at the Indian River generating facility, which was sold in June 2001. The amount of remediation costs accrued for this matter is included in the table above in the column entitled “Legacy Generation – Regulated.” | |||||||||||||||||||||
Potomac River Mineral Oil Release | |||||||||||||||||||||
In January 2011, a coupling failure on a transformer cooler pipe resulted in a release of non-toxic mineral oil at Pepco’s Potomac River substation in Alexandria, Virginia. An overflow of an underground secondary containment reservoir resulted in approximately 4,500 gallons of mineral oil flowing into the Potomac River. | |||||||||||||||||||||
Beginning in March 2011, DDOE issued a series of compliance directives requiring Pepco to prepare an incident report, provide certain records, and prepare and implement plans for sampling surface water and river sediments and assessing ecological risks and natural resources damages. Pepco completed field sampling during the fourth quarter of 2011 and submitted sampling results to DDOE during the second quarter of 2012. Pepco is continuing discussions with DDOE regarding the need for any further response actions but expects that additional monitoring of shoreline sediments may be required. | |||||||||||||||||||||
In June 2012, Pepco commenced discussions with DDOE regarding a possible consent decree that would resolve DDOE’s threatened enforcement action, including civil penalties, for alleged violation of the District’s Water Pollution Control Law, as well as for damages to natural resources. Pepco and DDOE have reached an agreement in principle that would consist of a combination of a civil penalty and Supplemental Environmental Projects (SEPs) with a total cost to Pepco of approximately $1 million. DDOE has endorsed Pepco’s proposed SEP involving the installation and operation of a trash collection system at a stormwater outfall that drains to the Anacostia River. DDOE and Pepco are completing negotiations on the text of a consent decree to document the settlement of DDOE’s enforcement action and a written statement of work describing the details of the trash collection system SEP. It is expected that the consent decree will be filed with the District of Columbia Superior Court by the end of the first quarter of 2014, with a request that the court approve the consent decree following a period of at least 30 days for public comment. Discussions will proceed separately with DDOE and the federal resource trustees regarding the settlement of a natural resource damage (NRD) claim under federal law. Based on discussions to date, PHI and Pepco do not believe that the resolution of DDOE’s enforcement action or the federal NRD claim will have a material adverse effect on their respective financial condition, results of operations or cash flows. | |||||||||||||||||||||
As a result of the mineral oil release, Pepco implemented certain interim operational changes to the secondary containment systems at the facility which involve pumping accumulated storm water to an aboveground holding tank for off-site disposal. In December 2011, Pepco completed the installation of a treatment system designed to allow automatic discharge of accumulated storm water from the secondary containment system. Pepco currently is seeking DDOE’s and EPA’s approval to commence operation of the new system on a pilot basis to demonstrate its effectiveness in meeting both secondary containment requirements and water quality standards related to the discharge of storm water from the facility. In the meantime, Pepco is continuing to use the aboveground holding tank to manage storm water from the secondary containment system. Pepco also is evaluating other technical and regulatory options for managing storm water from the secondary containment system as alternatives to the proposed treatment system discharge currently under discussion with EPA and DDOE. | |||||||||||||||||||||
The amount accrued for this matter is included in the table above in the column entitled “Transmission and Distribution.” | |||||||||||||||||||||
Metal Bank Site | |||||||||||||||||||||
In the first quarter of 2013, the National Oceanic and Atmospheric Administration (NOAA) contacted Pepco and DPL on behalf of itself and other federal and state trustees to request that Pepco and DPL execute a tolling agreement to facilitate settlement negotiations concerning natural resource damages allegedly caused by releases of hazardous substances, including polychlorinated biphenyls, at the Metal Bank Superfund Site located in Philadelphia, Pennsylvania. Pepco and DPL have executed the tolling agreement and will participate in settlement discussions with the NOAA, the trustees and other PRPs. | |||||||||||||||||||||
The amount accrued for this matter is included in the table above in the column entitled “Transmission and Distribution.” | |||||||||||||||||||||
Brandywine Fly Ash Disposal Site | |||||||||||||||||||||
In February 2013, Pepco received a letter from the Maryland Department of the Environment (MDE) requesting that Pepco investigate the extent of waste on a Pepco right-of-way that traverses the Brandywine fly ash disposal site in Brandywine, Prince George’s County, Maryland, owned by GenOn MD Ash Management, LLC (GenOn). In July 2013, while reserving its rights and related defenses under a 2000 asset purchase and sale agreement covering the sale of this site, Pepco indicated its willingness to investigate the extent of, and propose an appropriate closure plan to address, ash on the right-of-way. Pepco submitted a schedule for development of a closure plan to MDE on September 30, 2013 and, by letter dated October 18, 2013, MDE approved the schedule. | |||||||||||||||||||||
PHI and Pepco have determined that a loss associated with this matter for PHI and Pepco is probable and have estimated that the costs for implementation of a closure plan and cap on the site are in the range of approximately $3 million to $6 million. PHI and Pepco believe that the costs incurred in this matter will be recoverable from GenOn under the 2000 sale agreement. | |||||||||||||||||||||
The amount accrued for this matter is included in the table above in the column entitled “Transmission and Distribution.” | |||||||||||||||||||||
Watts Branch Insulating Fluid Release | |||||||||||||||||||||
On September 13, 2013, a Washington Metropolitan Area Transit Authority contractor damaged a Pepco underground transmission feeder while drilling a grout column for a subway tunnel under a city street. The damage caused the release of approximately 11,250 gallons of insulating fluid, a small amount of which reached the Watts Branch, a tributary of the Anacostia River. The U.S. Coast Guard (USCG) issued a notice of federal interest for an oil pollution incident, informing Pepco of its responsibility under the Oil Pollution Act of 1990 for removal costs and damages from the release. In addition, on September 25, 2013, DDOE issued a compliance directive that required Pepco to prepare an incident investigation report describing the events leading up to the release. The compliance directive also required Pepco to prepare work plans for sampling the insulating fluid and for developing and implementing a biological assessment and physical habitat quality assessment to be conducted in Watts Branch. Pepco prepared the incident investigation report and work plans and submitted them to DDOE and USCG. In December 2013, Pepco received and responded to an EPA information request regarding this incident. | |||||||||||||||||||||
PHI and Pepco believe that a loss in this matter is probable; however, the costs to resolve this matter are expected to be less than $1 million and are being expensed as incurred. PHI and Pepco further believe that the costs incurred will be recoverable from the party or parties responsible for the release. On December 4, 2013, the USCG delivered a Notice of Violation with respect to this matter, which imposed a $3,000 penalty on Pepco, which Pepco has paid. | |||||||||||||||||||||
PHI’s Cross-Border Energy Lease Investments | |||||||||||||||||||||
As discussed in Note (19), “Discontinued Operations – Cross-Border Energy Lease Investments,” PHI held a portfolio of cross-border energy lease investments involving public utility assets located outside of the United States. Each of these investments was comprised of multiple leases and was structured as a sale and leaseback transaction commonly referred to by the IRS as a sale-in, lease-out, or SILO, transaction. | |||||||||||||||||||||
Since 2005, PHI’s cross-border energy lease investments have been under examination by the IRS as part of the PHI federal income tax audits. In connection with the audit of PHI’s 2001-2002 income tax returns, the IRS disallowed the depreciation and interest deductions in excess of rental income claimed by PHI for six of the eight lease investments and, in connection with the audits of PHI’s 2003-2005 and 2006-2008 income tax returns, the IRS disallowed such deductions in excess of rental income for all eight of the lease investments. In addition, the IRS has sought to recharacterize each of the leases as a loan transaction in each of the years under audit as to which PHI would be subject to original issue discount income. PHI has disagreed with the IRS’ proposed adjustments to the 2001-2008 income tax returns and has filed protests of these findings for each year with the Office of Appeals of the IRS. In November 2010, PHI entered into a settlement agreement with the IRS for the 2001 and 2002 tax years for the purpose of commencing litigation associated with this matter and subsequently filed refund claims in July 2011 for the disallowed tax deductions relating to the leases for these years. In January 2011, as part of this settlement, PHI paid $74 million of additional tax for 2001 and 2002, penalties of $1 million, and $28 million in interest associated with the disallowed deductions. Since the July 2011 refund claims were not approved by the IRS within the statutory six-month period, in January 2012 PHI filed complaints in the U.S. Court of Federal Claims seeking recovery of the tax payment, interest and penalties. The 2003-2005 and 2006-2011 income tax return audits continue to be in process with the IRS Office of Appeals and the IRS Exam Division, respectively, and are not presently a part of the U.S. Court of Federal Claims litigation discussed above. | |||||||||||||||||||||
On January 9, 2013, the U.S. Court of Appeals for the Federal Circuit issued an opinion in Consolidated Edison Company of New York, Inc. & Subsidiaries v. United States (to which PHI is not a party) that disallowed tax benefits associated with Consolidated Edison’s cross-border lease transaction. While PHI believes that its tax position with regard to its cross-border energy lease investments is appropriate, after analyzing the recent U.S. Court of Appeals ruling, PHI determined in the first quarter of 2013 that its tax position with respect to the tax benefits associated with the cross-border energy leases no longer met the more-likely-than-not standard of recognition for accounting purposes. Accordingly, PHI recorded a non-cash after-tax charge of $377 million in the first quarter of 2013 (as discussed in Note (19), “Discontinued Operations – Cross-Border Energy Lease Investments”), consisting of a charge to reduce the carrying value of the cross-border energy lease investments and a charge to reflect the anticipated additional interest expense related to changes in PHI’s estimated federal and state income tax obligations for the period over which the tax benefits ultimately may be disallowed. PHI had also previously made certain business assumptions regarding foreign investment opportunities available at the end of the full lease terms. During the first quarter of 2013, management believed that its conclusions regarding these business assumptions were no longer supportable, and the tax effects of this change in conclusion were included in the charge. While the IRS could require PHI to pay a penalty of up to 20% of the amount of additional taxes due, PHI believes that it is more likely than not that no such penalty will be incurred, and therefore no amount for any potential penalty was included in the charge recorded in the first quarter of 2013. | |||||||||||||||||||||
In the event that the IRS were to be successful in disallowing 100% of the tax benefits associated with these lease investments and recharacterizing these lease investments as loans, PHI estimated that, as of March 31, 2013, it would have been obligated to pay approximately $192 million in additional federal taxes (net of the $74 million tax payment described above) and approximately $50 million of interest on the additional federal taxes. These amounts, totaling $242 million, were estimated after consideration of certain tax benefits arising from matters unrelated to the leases that would offset the taxes and interest due, including PHI’s best estimate of the expected resolution of other uncertain and effectively settled tax positions, the carrying back and carrying forward of any existing net operating losses, and the application of certain amounts paid in advance to the IRS. In order to mitigate PHI’s ongoing interest costs associated with the $242 million estimate of additional taxes and interest, PHI made an advanced payment to the IRS of $242 million in the first quarter of 2013. This advanced payment was funded from currently available sources of liquidity and short-term borrowings. A portion of the proceeds from lease terminations was used to repay the short-term borrowings utilized to fund the advanced payment. | |||||||||||||||||||||
In order to mitigate the cost of continued litigation related to the cross-border energy lease investments, PHI and its subsidiaries have entered into discussions with the IRS with the intention of seeking a settlement of all tax issues for open tax years 2001 through 2011, including the cross-border energy lease issue. PHI currently believes that it is possible that a settlement with the IRS may be reached in 2014. If a settlement of all tax issues or a standalone settlement on the leases is not reached, PHI may move forward with its litigation with the IRS. Further discovery in the case is stayed until April 24, 2014, pursuant to an order issued by the court on January 30, 2014. | |||||||||||||||||||||
District of Columbia Tax Legislation | |||||||||||||||||||||
In 2011, the Council of the District of Columbia approved the Budget Support Act which requires that corporate taxpayers in the District of Columbia calculate taxable income allocable or apportioned to the District of Columbia by reference to the income and apportionment factors applicable to commonly controlled entities organized within the United States that are engaged in a unitary business. In the aggregate, this new tax reporting method reduced pre-tax earnings for the year ended December 31, 2011 by $7 million ($5 million after-tax) as further discussed in Note (11), “Income Taxes,” and Note (19), “Discontinued Operations.” During 2012, the District of Columbia Office of Tax and Revenue adopted regulations to implement this reporting method. PHI has analyzed these regulations and determined that the regulations did not impact PHI’s results of operations for the years ended December 31, 2013 and 2012. | |||||||||||||||||||||
Third Party Guarantees, Indemnifications, and Off-Balance Sheet Arrangements | |||||||||||||||||||||
PHI and certain of its subsidiaries have various financial and performance guarantees and indemnification obligations that they have entered into in the normal course of business to facilitate commercial transactions with third parties as discussed below. | |||||||||||||||||||||
As of December 31, 2013, PHI and its subsidiaries were parties to a variety of agreements pursuant to which they were guarantors for standby letters of credit, energy procurement obligations, and other commitments and obligations. The commitments and obligations, in millions of dollars, were as follows: | |||||||||||||||||||||
Guarantor | |||||||||||||||||||||
PHI | Pepco | DPL | ACE | Total | |||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Energy procurement obligations of Pepco Energy Services (a) | $ | 46 | $ | — | $ | — | $ | — | $ | 46 | |||||||||||
Guarantees associated with disposal of Conectiv Energy assets (b) | 13 | — | — | — | 13 | ||||||||||||||||
Guaranteed lease residual values (c) | 3 | 5 | 7 | 4 | 19 | ||||||||||||||||
Total | $ | 62 | $ | 5 | $ | 7 | $ | 4 | $ | 78 | |||||||||||
(a) | PHI has continued contractual commitments for performance and related payments of Pepco Energy Services primarily to Independent System Operators and distribution companies. | ||||||||||||||||||||
(b) | Represents guarantees by PHI of Conectiv Energy’s derivatives portfolio transferred in connection with the disposition of Conectiv Energy’s wholesale business. The derivative portfolio guarantee is currently $13 million and covers Conectiv Energy’s performance prior to the assignment. This guarantee will remain in effect until the end of 2015. | ||||||||||||||||||||
(c) | Represents the maximum potential obligation in the event that the fair value of certain leased equipment and fleet vehicles is zero at the end of the maximum lease term. The maximum lease term associated with these assets ranges from 3 to 8 years. The maximum potential obligation at the end of the minimum lease term would be $55 million, $10 million of which is a guarantee by PHI, $15 million by Pepco, $17 million by DPL and $13 million by ACE. The minimum lease term associated with these assets ranges from 1 to 4 years. Historically, payments under the guarantees have not been made and PHI believes the likelihood of payments being required under the guarantees is remote. | ||||||||||||||||||||
PHI and certain of its subsidiaries have entered into various indemnification agreements related to purchase and sale agreements and other types of contractual agreements with vendors and other third parties. These indemnification agreements typically cover environmental, tax, litigation and other matters, as well as breaches of representations, warranties and covenants set forth in these agreements. Typically, claims may be made by third parties under these indemnification agreements over various periods of time depending on the nature of the claim. The maximum potential exposure under these indemnification agreements can range from a specified dollar amount to an unlimited amount depending on the nature of the claim and the particular transaction. The total maximum potential amount of future payments under these indemnification agreements is not estimable due to several factors, including uncertainty as to whether or when claims may be made under these indemnities. | |||||||||||||||||||||
Energy Savings Performance Contracts | |||||||||||||||||||||
Pepco Energy Services has a diverse portfolio of energy savings performance contracts that are associated with the installation of energy savings equipment or combined heat and power facilities for federal, state and local government customers. As part of the energy savings contracts, Pepco Energy Services typically guarantees that the equipment or systems it installs will generate a specified amount of energy savings on an annual basis over a multi-year period. As of December 31, 2013, the remaining notional amount of Pepco Energy Services’ energy savings guarantees over the life of the multi-year performance contracts on: i) completed projects was $252 million with the longest guarantee having a remaining term of 12 years; and, ii) projects under construction was $187 million with the longest guarantee having a term of 23 years after completion of construction. On an annual basis, Pepco Energy Services undertakes a measurement and verification process to determine the amount of energy savings for the year and whether there is any shortfall in the annual energy savings compared to the guaranteed amount. | |||||||||||||||||||||
As of December 31, 2013, Pepco Energy Services had a performance guarantee contract associated with the production at a combined heat and power facility that is under construction totaling $15 million in notional value over 20 years. | |||||||||||||||||||||
Pepco Energy Services recognizes a liability for the value of the estimated energy savings or production shortfalls when it is probable that the guaranteed amounts will not be achieved and the amount is reasonably estimable. As of December 31, 2013, Pepco Energy Services had an accrued liability of $1 million for its energy savings contracts that it established during 2012. There was no significant change in the type of contracts issued during the year ended December 31, 2013 as compared to the year ended December 31, 2012. | |||||||||||||||||||||
Dividends | |||||||||||||||||||||
On January 23, 2014, Pepco Holdings’ Board of Directors declared a dividend on common stock of 27 cents per share payable March 31, 2014, to stockholders of record on March 10, 2014. | |||||||||||||||||||||
Contractual Obligations | |||||||||||||||||||||
Power Purchase Contracts | |||||||||||||||||||||
As of December 31, 2013, Pepco Holdings’ contractual obligations under non-derivative power purchase contracts were $278 million in 2014, $562 million in 2015 to 2016, $486 million in 2017 to 2018, and $1,386 million in 2019 and thereafter. | |||||||||||||||||||||
Lease Commitments | |||||||||||||||||||||
Rental expense for operating leases was $54 million, $52 million and $46 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
Total future minimum operating lease payments for Pepco Holdings as of December 31, 2013, are $44 million in 2014, $42 million in 2015, $39 million in 2016, $36 million in 2017, $37 million in 2018 and $342 million thereafter. | |||||||||||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||
(12) COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||
General Litigation | |||||||||||||||||||||
From time to time, Pepco is named as a defendant in litigation, usually relating to general liability or auto liability claims that resulted in personal injury or property damage to third parties. Pepco is self-insured against such claims up to a certain self-insured retention amount and maintains insurance coverage against such claims at higher levels, to the extent deemed prudent by management. In addition, Pepco’s contracts with its vendors generally require the vendors to name Pepco as an additional insured for the amount at least equal to Pepco’s self-insured retention. Further, Pepco’s contracts with its vendors require the vendors to indemnify Pepco for various acts and activities that may give rise to claims against Pepco. Loss contingency liabilities for both asserted and unasserted claims are recognized if it is probable that a loss will result from such a claim and if the amounts of the losses can be reasonably estimated. Although the outcome of the claims and proceedings cannot be predicted with any certainty, management believes that there are no existing claims or proceedings that are likely to have a material adverse effect on Pepco’s financial condition, results of operations or cash flows. At December 31, 2013, Pepco had loss contingency liabilities for general litigation totaling approximately $19 million (including amounts related to the matter specifically described below) and the portion of these loss contingency liabilities in excess of the self-insured retention amount was substantially offset by insurance receivables. | |||||||||||||||||||||
Substation Injury Claim | |||||||||||||||||||||
In May 2013, a contract worker erecting a scaffold at a Pepco substation came into contact with an energized station service feeder and suffered serious injuries. In August 2013, the individual filed suit against Pepco in the Circuit Court for Montgomery County, Maryland, seeking damages for medical expenses, loss of future earning capacity, pain and suffering and the cost of a life care plan aggregating to a maximum claim of approximately $28.1 million. Discovery is ongoing in the case and, if a settlement cannot be reached with respect to this matter, a trial is expected to begin in October 2014. Pepco has notified its insurers of the incident and believes that the insurance policies in force at the time of the incident, including the policies of the contractor performing the scaffold work (which name Pepco as an additional insured), will offset substantially all of Pepco’s costs associated with the resolution of this matter, including Pepco’s self-insured retention amount. At December 31, 2013, Pepco has concluded that a loss is probable with respect to this matter and has recorded an estimated loss contingency liability, which is included in the liability for general litigation referred to above as of December 31, 2013. Pepco has also concluded as of December 31, 2013 that realization of its insurance claims associated with this matter is probable and, accordingly, has recorded an estimated insurance receivable offsetting substantially all of the related loss contingency liability. | |||||||||||||||||||||
Environmental Matters | |||||||||||||||||||||
Pepco is subject to regulation by various federal, regional, state and local authorities with respect to the environmental effects of its operations, including air and water quality control, solid and hazardous waste disposal and limitations on land use. Although penalties assessed for violations of environmental laws and regulations are not recoverable from customers of Pepco, environmental clean-up costs incurred by Pepco generally are included in its cost of service for ratemaking purposes. The total accrued liabilities for the environmental contingencies of Pepco described below at December 31, 2013 are summarized as follows: | |||||||||||||||||||||
Transmission | Legacy | Total | |||||||||||||||||||
and | Generation - | ||||||||||||||||||||
Distribution | Regulated | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Balance as of January 1 | $ | 14 | $ | 3 | $ | 17 | |||||||||||||||
Accruals | 5 | — | 5 | ||||||||||||||||||
Payments | (1 | ) | — | (1 | ) | ||||||||||||||||
Balance as of December 31 | 18 | 3 | 21 | ||||||||||||||||||
Less amounts in Other Current Liabilities | 2 | — | 2 | ||||||||||||||||||
Amounts in Other Deferred Credits | $ | 16 | $ | 3 | $ | 19 | |||||||||||||||
Peck Iron and Metal Site | |||||||||||||||||||||
The U.S. Environmental Protection Agency (EPA) informed Pepco in a May 2009 letter that Pepco may be a potentially responsible party (PRP) under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) with respect to the cleanup of the Peck Iron and Metal site in Portsmouth, Virginia, and for costs EPA has incurred in cleaning up the site. The EPA letter states that Peck Iron and Metal purchased, processed, stored and shipped metal scrap from military bases, governmental agencies and businesses and that Peck’s metal scrap operations resulted in the improper storage and disposal of hazardous substances. EPA bases its allegation that Pepco arranged for disposal or treatment of hazardous substances sent to the site on information provided by former Peck Iron and Metal personnel, who informed EPA that Pepco was a customer at the site. Pepco has advised EPA by letter that its records show no evidence of any sale of scrap metal by Pepco to the site. Even if EPA has such records and such sales did occur, Pepco believes that any such scrap metal sales may be entitled to the recyclable material exemption from CERCLA liability. In a Federal Register notice published in November 2009, EPA placed the Peck Iron and Metal site on the National Priorities List. The National Priorities List, among other things, serves as a guide to EPA in determining which sites warrant further investigation to assess the nature and extent of the human health and environmental risks associated with a site. In September 2011, EPA initiated a remedial investigation/feasibility study (RI/FS) using federal funds. Pepco cannot at this time estimate an amount or range of reasonably possible loss associated with this RI/FS, any remediation activities to be performed at the site or any other costs that EPA might seek to impose on Pepco. | |||||||||||||||||||||
Ward Transformer Site | |||||||||||||||||||||
In April 2009, a group of PRPs with respect to the Ward Transformer site in Raleigh, North Carolina, filed a complaint in the U.S. District Court for the Eastern District of North Carolina, alleging cost recovery and/or contribution claims against a number of entities, including Pepco, based on its alleged sale of transformers to Ward Transformer, with respect to past and future response costs incurred by the PRP group in performing a removal action at the site. In a March 2010 order, the court denied the defendants’ motion to dismiss. The litigation is moving forward with certain “test case” defendants (not including Pepco) filing summary judgment motions regarding liability. The case has been stayed as to the remaining defendants pending rulings upon the test cases. In a January 31, 2013 order, the Federal district court granted summary judgment for the test case defendant whom plaintiffs alleged was liable based on its sale of transformers to Ward Transformer. The Federal district court’s order, which plaintiffs have appealed to the U.S. Court of Appeals for the Fourth Circuit, addresses only the liability of the test case defendant. Pepco has concluded that a loss is reasonably possible with respect to this matter, but is unable to estimate an amount or range of reasonably possible losses to which it may be exposed. Pepco does not believe that it had extensive business transactions, if any, with the Ward Transformer site. | |||||||||||||||||||||
Benning Road Site | |||||||||||||||||||||
In September 2010, PHI received a letter from EPA identifying the Benning Road location, consisting of a generation facility operated by Pepco Energy Services until the facility was deactivated in June 2012, and a transmission and distribution facility operated by Pepco, as one of six land-based sites potentially contributing to contamination of the lower Anacostia River. The letter stated that the principal contaminants of concern are polychlorinated biphenyls and polycyclic aromatic hydrocarbons. In December 2011, the U.S. District Court for the District of Columbia approved a consent decree entered into by Pepco and Pepco Energy Services with the District of Columbia Department of the Environment (DDOE), which requires Pepco and Pepco Energy Services to conduct a RI/FS for the Benning Road site and an approximately 10 to 15 acre portion of the adjacent Anacostia River. The RI/FS will form the basis for DDOE’s selection of a remedial action for the Benning Road site and for the Anacostia River sediment associated with the site. The consent decree does not obligate Pepco or Pepco Energy Services to pay for or perform any remediation work, but it is anticipated that DDOE will look to the companies to assume responsibility for cleanup of any conditions in the river that are determined to be attributable to past activities at the Benning Road site. | |||||||||||||||||||||
In December 2012, DDOE approved the RI/FS work plan. RI/FS field work commenced in January 2013 and is still in progress. In October 2013, Pepco and Pepco Energy Services submitted a work plan addendum for approval by DDOE identifying the location of groundwater monitoring wells to be installed at the site and sampled as the last phase of the field work. The work plan addendum has been revised in response to comments from DDOE, and it is expected that the addendum will be approved and the next phase of field work will commence before the end of the first quarter of 2014. Once all of the field work has been completed, Pepco and Pepco Energy Services will prepare RI/FS reports for review and approval by DDOE after solicitation and consideration of public comment. The next status report to the court is due on May 24, 2014. | |||||||||||||||||||||
The remediation costs accrued for this matter are included in the table above in the columns entitled “Transmission and Distribution” and “Legacy Generation – Regulated.” | |||||||||||||||||||||
Potomac River Mineral Oil Release | |||||||||||||||||||||
In January 2011, a coupling failure on a transformer cooler pipe resulted in a release of non-toxic mineral oil at Pepco’s Potomac River substation in Alexandria, Virginia. An overflow of an underground secondary containment reservoir resulted in approximately 4,500 gallons of mineral oil flowing into the Potomac River. | |||||||||||||||||||||
Beginning in March 2011, DDOE issued a series of compliance directives requiring Pepco to prepare an incident report, provide certain records, and prepare and implement plans for sampling surface water and river sediments and assessing ecological risks and natural resources damages. Pepco completed field sampling during the fourth quarter of 2011 and submitted sampling results to DDOE during the second quarter of 2012. Pepco is continuing discussions with DDOE regarding the need for any further response actions but expects that additional monitoring of shoreline sediments may be required. | |||||||||||||||||||||
In June 2012, Pepco commenced discussions with DDOE regarding a possible consent decree that would resolve DDOE’s threatened enforcement action, including civil penalties, for alleged violation of the District’s Water Pollution Control Law, as well as for damages to natural resources. Pepco and DDOE have reached an agreement in principle that would consist of a combination of a civil penalty and Supplemental Environmental Projects (SEPs) with a total cost to Pepco of approximately $1 million. DDOE has endorsed Pepco’s proposed SEP involving the installation and operation of a trash collection system at a stormwater outfall that drains to the Anacostia River. DDOE and Pepco are completing negotiations on the text of a consent decree to document the settlement of DDOE’s enforcement action and a written statement of work describing the details of the trash collection system SEP. It is expected that the consent decree will be filed with the District of Columbia Superior Court by the end of the first quarter of 2014, with a request that the court approve the consent decree following a period of at least 30 days for public comment. Discussions will proceed separately with DDOE and the federal resource trustees regarding the settlement of a natural resource damage (NRD) claim under federal law. Based on discussions to date, Pepco does not believe that the resolution of DDOE’s enforcement action or the federal NRD claim will have a material adverse effect on its financial condition, results of operations or cash flows. | |||||||||||||||||||||
As a result of the mineral oil release, Pepco implemented certain interim operational changes to the secondary containment systems at the facility which involve pumping accumulated storm water to an aboveground holding tank for off-site disposal. In December 2011, Pepco completed the installation of a treatment system designed to allow automatic discharge of accumulated storm water from the secondary containment system. Pepco currently is seeking DDOE’s and EPA’s approval to commence operation of the new system on a pilot basis to demonstrate its effectiveness in meeting both secondary containment requirements and water quality standards related to the discharge of storm water from the facility. In the meantime, Pepco is continuing to use the aboveground holding tank to manage storm water from the secondary containment system. Pepco also is evaluating other technical and regulatory options for managing storm water from the secondary containment system as alternatives to the proposed treatment system discharge currently under discussion with EPA and DDOE. | |||||||||||||||||||||
The amount accrued for this matter is included in the table above in the column entitled “Transmission and Distribution.” | |||||||||||||||||||||
Metal Bank Site | |||||||||||||||||||||
In the first quarter of 2013, the National Oceanic and Atmospheric Administration (NOAA) contacted Pepco on behalf of itself and other federal and state trustees to request that Pepco execute a tolling agreement to facilitate settlement negotiations concerning natural resource damages allegedly caused by releases of hazardous substances, including polychlorinated biphenyls, at the Metal Bank Superfund Site located in Philadelphia, Pennsylvania. Pepco has executed the tolling agreement and will participate in settlement discussions with the NOAA, the trustees and other PRPs. | |||||||||||||||||||||
The amount accrued for this matter is included in the table above in the column entitled “Transmission and Distribution.” | |||||||||||||||||||||
Brandywine Fly Ash Disposal Site | |||||||||||||||||||||
In February 2013, Pepco received a letter from the Maryland Department of the Environment (MDE) requesting that Pepco investigate the extent of waste on a Pepco right-of-way that traverses the Brandywine fly ash disposal site in Brandywine, Prince George’s County, Maryland, owned by GenOn MD Ash Management, LLC (GenOn). In July 2013, while reserving its rights and related defenses under a 2000 asset purchase and sale agreement covering the sale of this site, Pepco indicated its willingness to investigate the extent of, and propose an appropriate closure plan to address, ash on the right-of-way. Pepco submitted a schedule for development of a closure plan to MDE on September 30, 2013 and, by letter dated October 18, 2013, MDE approved the schedule. | |||||||||||||||||||||
Pepco has determined that a loss associated with this matter for Pepco is probable and has estimated that the costs for implementation of a closure plan and cap on the site are in the range of approximately $3 million to $6 million. Pepco believes that the costs incurred in this matter will be recoverable from GenOn under the 2000 sale agreement. | |||||||||||||||||||||
The amount accrued for this matter is included in the table above in the column entitled “Transmission and Distribution.” | |||||||||||||||||||||
Watts Branch Insulating Fluid Release | |||||||||||||||||||||
On September 13, 2013, a Washington Metropolitan Area Transit Authority contractor damaged a Pepco underground transmission feeder while drilling a grout column for a subway tunnel under a city street. The damage caused the release of approximately 11,250 gallons of insulating fluid, a small amount of which reached the Watts Branch, a tributary of the Anacostia River. The U.S. Coast Guard (USCG) issued a notice of federal interest for an oil pollution incident, informing Pepco of its responsibility under the Oil Pollution Act of 1990 for removal costs and damages from the release. In addition, on September 25, 2013, DDOE issued a compliance directive that required Pepco to prepare an incident investigation report describing the events leading up to the release. The compliance directive also required Pepco to prepare work plans for sampling the insulating fluid and for developing and implementing a biological assessment and physical habitat quality assessment to be conducted in Watts Branch. Pepco prepared the incident investigation report and work plans and submitted them to DDOE and USCG. In December 2013, Pepco received and responded to an EPA information request regarding this incident. | |||||||||||||||||||||
Pepco believes that a loss in this matter is probable; however, the costs to resolve this matter are expected to be less than $1 million and are being expensed as incurred. Pepco further believes that the costs incurred will be recoverable from the party or parties responsible for the release. On December 4, 2013, the USCG delivered a Notice of Violation with respect to this matter, which imposed a $3,000 penalty on Pepco, which Pepco has paid. | |||||||||||||||||||||
District of Columbia Tax Legislation | |||||||||||||||||||||
In 2011, the Council of the District of Columbia approved the Fiscal Year 2012 Budget Support Act of 2011, which requires that corporate taxpayers in the District of Columbia calculate taxable income allocable or apportioned to the District of Columbia by reference to the income and apportionment factors applicable to commonly controlled entities organized within the United States that are engaged in a unitary business. In the aggregate, this new tax reporting method reduced pre-tax earnings for the year ended December 31, 2011 by less than $1 million. During 2012, the District of Columbia Office of Tax and Revenue adopted regulations to implement this reporting method. PHI has analyzed these regulations and determined that the regulations did not impact PHI’s results of operations for the years ended December 31, 2013 and 2012. | |||||||||||||||||||||
Contractual Obligations | |||||||||||||||||||||
Power Purchase Contracts | |||||||||||||||||||||
As of December 31, 2013, Pepco had no contractual obligations under non-derivative power purchase contracts. | |||||||||||||||||||||
Lease Commitments | |||||||||||||||||||||
Rental expense for operating leases was $7 million, $6 million and $4 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
Total future minimum operating lease payments for Pepco as of December 31, 2013 are $6 million in 2014, $6 million in 2015, $6 million in 2016, $5 million in 2017, $4 million in 2018 and $21 million thereafter. | |||||||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||
(14) COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||
General Litigation | |||||||||||||||||||||
From time to time, DPL is named as a defendant in litigation, usually relating to general liability or auto liability claims that resulted in personal injury or property damage to third parties. DPL is self-insured against such claims up to a certain self-insured retention amount and maintains insurance coverage against such claims at higher levels, to the extent deemed prudent by management. In addition, DPL’s contracts with its vendors generally require the vendors to name DPL as an additional insured for the amount at least equal to DPL’s self-insured retention. Further, DPL’s contracts with its vendors require the vendors to indemnify DPL for various acts and activities that may give rise to claims against DPL. Loss contingency liabilities for both asserted and unasserted claims are recognized if it is probable that a loss will result from such a claim and if the amounts of the losses can be reasonably estimated. Although the outcome of the claims and proceedings cannot be predicted with any certainty, management believes that there are no existing claims or proceedings that are likely to have a material adverse effect on DPL’s financial condition, results of operations or cash flows. At December 31, 2013, DPL had loss contingency liabilities for general litigation totaling approximately $2 million. | |||||||||||||||||||||
Environmental Matters | |||||||||||||||||||||
DPL is subject to regulation by various federal, regional, state, and local authorities with respect to the environmental effects of its operations, including air and water quality control, solid and hazardous waste disposal, and limitations on land use. Although penalties assessed for violations of environmental laws and regulations are not recoverable from DPL’s customers, environmental clean-up costs incurred by DPL generally are included in its cost of service for ratemaking purposes. The total accrued liabilities for the environmental contingencies of DPL described below at December 31, 2013 are summarized as follows: | |||||||||||||||||||||
Transmission | Legacy | Other | Total | ||||||||||||||||||
and Distribution | Generation - | ||||||||||||||||||||
Regulated | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Balance as of January 1 | $ | 1 | $ | 3 | $ | 2 | $ | 6 | |||||||||||||
Accruals | — | — | 1 | 1 | |||||||||||||||||
Payments | — | (1 | ) | (3 | ) | (4 | ) | ||||||||||||||
Balance as of December 31 | 1 | 2 | — | 3 | |||||||||||||||||
Less amounts in Other Current Liabilities | 1 | 1 | — | 2 | |||||||||||||||||
Amounts in Other Deferred Credits | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||||||
Ward Transformer Site | |||||||||||||||||||||
In April 2009, a group of potentially responsible parties (PRPs) with respect to the Ward Transformer site in Raleigh, North Carolina, filed a complaint in the U.S. District Court for the Eastern District of North Carolina, alleging cost recovery and/or contribution claims against a number of entities, including DPL, based on its alleged sale of transformers to Ward Transformer, with respect to past and future response costs incurred by the PRP group in performing a removal action at the site. In a March 2010 order, the court denied the defendants’ motion to dismiss. The litigation is moving forward with certain “test case” defendants (not including DPL) filing summary judgment motions regarding liability. The case has been stayed as to the remaining defendants pending rulings upon the test cases. In a January 31, 2013 order, the Federal district court granted summary judgment for the test case defendant whom plaintiffs alleged was liable based on its sale of transformers to Ward Transformer. The Federal district court’s order, which plaintiffs have appealed to the U.S. Court of Appeals for the Fourth Circuit, addresses only the liability of the test case defendant. DPL has concluded that a loss is reasonably possible with respect to this matter, but is unable to estimate an amount or range of reasonably possible losses to which it may be exposed. DPL does not believe that it had extensive business transactions, if any, with the Ward Transformer site. | |||||||||||||||||||||
Indian River Oil Release | |||||||||||||||||||||
In 2001, DPL entered into a consent agreement with the Delaware Department of Natural Resources and Environmental Control for remediation, site restoration, natural resource damage compensatory projects and other costs associated with environmental contamination resulting from an oil release at the Indian River generating facility, which was sold in June 2001. The amount of remediation costs accrued for this matter is included in the table above in the column entitled “Legacy Generation – Regulated.” | |||||||||||||||||||||
Metal Bank Site | |||||||||||||||||||||
In the first quarter of 2013, the National Oceanic and Atmospheric Administration (NOAA) contacted DPL on behalf of itself and other federal and state trustees to request that DPL execute a tolling agreement to facilitate settlement negotiations concerning natural resource damages allegedly caused by releases of hazardous substances, including polychlorinated biphenyls, at the Metal Bank Superfund Site located in Philadelphia, Pennsylvania. DPL has executed the tolling agreement and will participate in settlement discussions with the NOAA, the trustees and other PRPs. | |||||||||||||||||||||
The amount accrued for this matter is included in the table above in the column entitled “Transmission and Distribution.” | |||||||||||||||||||||
Contractual Obligations | |||||||||||||||||||||
Power Purchase Contracts | |||||||||||||||||||||
As of December 31, 2013, DPL’s contractual obligations under non-derivative power purchase contracts were $64 million in 2014, $131 million in 2015 to 2016, $131 million in 2017 to 2018, and $300 million in 2019 and thereafter. | |||||||||||||||||||||
Lease Commitments | |||||||||||||||||||||
DPL leases an 11.9% interest in the Merrill Creek Reservoir. The lease is an operating lease and payments over the remaining lease term, which ends in 2032, are $84 million in the aggregate. DPL also has long-term leases for certain other facilities and equipment. Total future minimum operating lease payments for DPL, including the Merrill Creek Reservoir lease, as of December 31, 2013, are $13 million in 2014, $13 million in 2015, $11 million in 2016, $10 million in 2017, $14 million in 2018, and $111 million thereafter. | |||||||||||||||||||||
Rental expense for operating leases, including the Merrill Creek Reservoir lease, was $13 million, $12 million and $11 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||
(13) COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||
General Litigation | |||||||||||||||||||||
From time to time, ACE is named as a defendant in litigation, usually relating to general liability or auto liability claims that resulted in personal injury or property damage to third parties. ACE is self-insured against such claims up to a certain self-insured retention amount and maintains insurance coverage against such claims at higher levels, to the extent deemed prudent by management. In addition, ACE’s contracts with its vendors generally require the vendors to name ACE as an additional insured for the amount at least equal to ACE’s self-insured retention. Further, ACE’s contracts with its vendors require the vendors to indemnify ACE for various acts and activities that may give rise to claims against ACE. Loss contingency liabilities for both asserted and unasserted claims are recognized if it is probable that a loss will result from such a claim and if the amounts of the losses can be reasonably estimated. Although the outcome of the claims and proceedings cannot be predicted with any certainty, management believes that there are no existing claims or proceedings that are likely to have a material adverse effect on ACE’s financial condition, results of operations or cash flows. At December 31, 2013, ACE had loss contingency liabilities for general litigation totaling approximately $9 million (including amounts related to the matters specifically described below) and the portion of these loss contingency liabilities in excess of the self-insured retention amount was substantially offset by insurance receivables. | |||||||||||||||||||||
Asbestos Claim | |||||||||||||||||||||
In September 2011, an asbestos complaint was filed in the New Jersey Superior Court, Law Division, against ACE (among other defendants) asserting claims under New Jersey’s Wrongful Death and Survival statutes. The complaint, filed by the estate of a decedent who was the wife of a former employee of ACE, alleges that the decedent’s mesothelioma was caused by exposure to asbestos brought home by her husband on his work clothes. New Jersey courts have recognized a cause of action against a premise owner in a so-called “take home” case if it can be shown that the harm was foreseeable. In this case, the complaint seeks recovery of an unspecified amount of damages for, among other things, the decedent’s past medical expenses, loss of earnings, and pain and suffering between the time of injury and death, and asserts a punitive damage claim. At December 31, 2013, ACE has concluded that a loss is probable with respect to this matter and has recorded an estimated loss contingency liability, which is included in the liability for general litigation referred to above as of December 31, 2013. However, due to the inherent uncertainty of litigation, ACE is unable to estimate a maximum amount of possible loss because the damages sought are indeterminate and the matter involves facts that ACE believes are distinguishable from the facts of the “take-home” cause of action recognized by the New Jersey courts. | |||||||||||||||||||||
Electrical Contact Injury Claims | |||||||||||||||||||||
In October 2010, a farm combine came into and remained in contact with a primary electric line in ACE’s service territory in New Jersey. As a result, two individuals operating the combine received fatal electrical contact injuries. While attempting to rescue those two individuals, another individual sustained third-degree burns to his torso and upper extremities. In September 2012, the individual who received third-degree burns filed suit in New Jersey Superior Court, Salem County. In October 2012, additional suits were filed in the same court by or on behalf of the estates of the deceased individuals. Plaintiffs in each of the cases are seeking indeterminate damages and allege that ACE was negligent in the design, construction, erection, operation and maintenance of its poles, power lines, and equipment, and that ACE failed to warn and protect the public from the foreseeable dangers of farm equipment contacting electric lines. Discovery is ongoing in this matter and the litigation involves a number of other defendants and the filing of numerous cross-claims. ACE has notified its insurers of the incident and believes that the insurance policies in force at the time of the incident will offset ACE’s costs associated with the resolution of this matter in excess of ACE’s self-insured retention amount. At December 31, 2013, ACE has concluded that a loss is probable with respect to these claims and has recorded an estimated loss contingency liability, which is included in the liability for general litigation referred to above as of December 31, 2013. ACE has also concluded as of December 31, 2013 that realization of its insurance claims associated with this matter is probable and, accordingly, has recorded an estimated insurance receivable offsetting substantially all of the loss contingency liability in excess of ACE’s self-insured retention amount. | |||||||||||||||||||||
Environmental Matters | |||||||||||||||||||||
ACE is subject to regulation by various federal, regional, state and local authorities with respect to the environmental effects of its operations, including air and water quality control, solid and hazardous waste disposal and limitations on land use. Although penalties assessed for violations of environmental laws and regulations are not recoverable from customers of ACE, environmental clean-up costs incurred by ACE generally are included in its cost of service for ratemaking purposes. The total accrued liabilities for the environmental contingencies of ACE described below at December 31, 2013 are summarized as follows: | |||||||||||||||||||||
Legacy Generation - | |||||||||||||||||||||
Regulated | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Balance as of January 1 | $ | 1 | |||||||||||||||||||
Accruals | — | ||||||||||||||||||||
Payments | — | ||||||||||||||||||||
Balance as of December 31 | 1 | ||||||||||||||||||||
Less amounts in Other Current Liabilities | — | ||||||||||||||||||||
Amounts in Other Deferred Credits | $ | 1 | |||||||||||||||||||
Franklin Slag Pile Site | |||||||||||||||||||||
In November 2008, ACE received a general notice letter from the U.S. Environmental Protection Agency (EPA) concerning the Franklin Slag Pile site in Philadelphia, Pennsylvania, asserting that ACE is a potentially responsible party (PRP) that may have liability for clean-up costs with respect to the site and for the costs of implementing an EPA-mandated remedy. EPA’s claims are based on ACE’s sale of boiler slag from the B.L. England generating facility, then owned by ACE, to MDC Industries, Inc. (MDC) during the period June 1978 to May 1983. EPA claims that the boiler slag ACE sold to MDC contained copper and lead, which are hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), and that the sales transactions may have constituted an arrangement for the disposal or treatment of hazardous substances at the site, which could be a basis for liability under CERCLA. The EPA letter also states that, as of the date of the letter, EPA’s expenditures for response measures at the site have exceeded $6 million. EPA’s feasibility study for this site conducted in 2007 identified a range of alternatives for permanent remedial measures with varying cost estimates, and the estimated cost of EPA’s preferred alternative is approximately $6 million. | |||||||||||||||||||||
ACE believes that the B.L. England boiler slag sold to MDC was a valuable material with various industrial applications and, therefore, the sale was not an arrangement for the disposal or treatment of any hazardous substances as would be necessary to constitute a basis for liability under CERCLA. ACE intends to contest any claims to the contrary made by EPA. In a May 2009 decision arising under CERCLA, which did not involve ACE, the U.S. Supreme Court rejected an EPA argument that the sale of a useful product constituted an arrangement for disposal or treatment of hazardous substances. While this decision supports ACE’s position, at this time ACE cannot predict how EPA will proceed with respect to the Franklin Slag Pile site, or what portion, if any, of the Franklin Slag Pile site response costs EPA would seek to recover from ACE. Costs to resolve this matter are not expected to be material and are expensed as incurred. | |||||||||||||||||||||
Ward Transformer Site | |||||||||||||||||||||
In April 2009, a group of PRPs with respect to the Ward Transformer site in Raleigh, North Carolina, filed a complaint in the U.S. District Court for the Eastern District of North Carolina, alleging cost recovery and/or contribution claims against a number of entities, including ACE, based on its alleged sale of transformers to Ward Transformer, with respect to past and future response costs incurred by the PRP group in performing a removal action at the site. In a March 2010 order, the court denied the defendants’ motion to dismiss. The litigation is moving forward with certain “test case” defendants (not including ACE) filing summary judgment motions regarding liability. The case has been stayed as to the remaining defendants pending rulings upon the test cases. In a January 31, 2013 order, the Federal district court granted summary judgment for the test case defendant whom plaintiffs alleged was liable based on its sale of transformers to Ward Transformer. The Federal district court’s order, which plaintiffs have appealed to the U.S. Court of Appeals for the Fourth Circuit, addresses only the liability of the test case defendant. ACE has concluded that a loss is reasonably possible with respect to this matter, but is unable to estimate an amount or range of reasonably possible losses to which it may be exposed. ACE does not believe that it had extensive business transactions, if any, with the Ward Transformer site. | |||||||||||||||||||||
Contractual Obligations | |||||||||||||||||||||
Power Purchase Contracts | |||||||||||||||||||||
As of December 31, 2013, ACE’s contractual obligations under non-derivative power purchase contracts were $214 million in 2014, $431 million in 2015 to 2016, $355 million in 2017 to 2018 and $1,086 million in 2019 and thereafter. | |||||||||||||||||||||
Lease Commitments | |||||||||||||||||||||
ACE leases certain types of property and equipment for use in its operations. Rental expense for operating leases was $12 million, $11 million and $10 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
Total future minimum operating lease payments for ACE as of December 31, 2013 are $5 million in each of the years 2014 through 2016, $4 million in each of the years 2017 and 2018, and $29 million thereafter. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2013 | |
Variable Interest Entities | ' |
(16) VARIABLE INTEREST ENTITIES | |
PHI is required to consolidate a variable interest entity (VIE) in accordance with FASB ASC 810 if PHI or a subsidiary is the primary beneficiary of the VIE. The primary beneficiary of a VIE is typically the entity with both the power to direct activities most significantly impacting economic performance of the VIE and the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the VIE. PHI performs a qualitative analysis to determine whether a variable interest provides a controlling financial interest in a VIE. Set forth below are the relationships with respect to which PHI conducted a VIE analysis as of December 31, 2013: | |
DPL Renewable Energy Transactions | |
DPL is subject to Renewable Energy Portfolio Standards (RPS) in the state of Delaware that require it to obtain renewable energy credits (RECs) for energy delivered to its customers. DPL’s costs associated with obtaining RECs to fulfill its RPS obligations are recoverable from its customers by law. As of December 31, 2013, PHI, through its DPL subsidiary, is a party to three land-based wind PPAs in the aggregate amount of 128 MWs and one solar PPA with a 10 MW facility. Each of the facilities associated with these PPAs is operational, and DPL is obligated to purchase energy and RECs in amounts generated and delivered by the wind facilities and solar renewable energy credits (SRECs) from the solar facility up to certain amounts (as set forth below) at rates that are primarily fixed under the respective PPA. PHI and DPL have concluded that while VIEs exist under these contracts, consolidation is not required for any of these PPAs under the FASB guidance on the consolidation of variable interest entities as DPL is not the primary beneficiary. DPL has not provided financial or other support under these arrangements that it was not previously contractually required to provide during the periods presented, nor does DPL have any intention to provide such additional support. | |
Because DPL has no equity or debt interest in these renewable energy transactions, the maximum exposure to loss relates primarily to any above-market costs incurred for power or RECs. Due to unpredictability in amount of MW’s ultimately purchased under the PPAs for purchased renewable energy and SRECs, PHI and DPL are unable to quantify the maximum exposure to loss. The power purchase and REC costs are recoverable from DPL’s customers through regulated rates. | |
DPL is obligated to purchase energy and RECs from one of the wind facilities through 2024 in amounts not to exceed 50 MWs, from the second wind facility through 2031 in amounts not to exceed 40 MWs, and from the third wind facility through 2031 in amounts not to exceed 38 MWs. DPL’s purchases under the three wind PPAs totaled $30 million, $27 million and $18 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
The term of the agreement with the solar facility is 20 years and DPL is obligated to purchase SRECs in an amount up to 70 percent of the energy output at a fixed price. DPL’s purchases under the solar agreement were $3 million, $2 million and $1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
On October 18, 2011, the DPSC approved a tariff submitted by DPL in accordance with the requirements of the RPS specific to fuel cell facilities totaling 30 MWs to be constructed by a qualified fuel cell provider. The tariff and the RPS establish that DPL would be an agent to collect payments in advance from its distribution customers and remit them to the qualified fuel cell provider for each MW hour (MWh) of energy produced by the fuel cell facilities over 21 years. DPL has no obligation to the qualified fuel cell provider other than to remit payments collected from its distribution customers pursuant to the tariff. The RPS provides for a reduction in DPL’s REC requirements based upon the actual energy output of the facilities. At December 31, 2013 and 2012, 15 MWs and 3 MWs of capacity were available from fuel cell facilities placed in service under the tariff, respectively. DPL billed $23 million and $4 million to distribution customers during the years ended December 31, 2013 and 2012, respectively. PHI and DPL have concluded that while a VIE exists under this arrangement, consolidation is not required for this arrangement under the FASB guidance on consolidation of variable interest entities as DPL is not the primary beneficiary. | |
ACE Power Purchase Agreements | |
PHI, through its ACE subsidiary, is a party to three PPAs with unaffiliated NUGs totaling 459 MWs. One of the agreements ends in 2016 and the other two end in 2024. PHI and ACE were not involved in the creation of these contracts and have no equity or debt invested in these entities. In performing its VIE analysis, PHI has been unable to obtain sufficient information to determine whether these three entities were variable interest entities or if ACE was the primary beneficiary. As a result, PHI has applied the scope exemption from the consolidation guidance. | |
Because ACE has no equity or debt invested in the NUGs, the maximum exposure to loss relates primarily to any above-market costs incurred for power. Due to unpredictability in the PPAs pricing for purchased energy, PHI and ACE are unable to quantify the maximum exposure to loss. The power purchase costs are recoverable from ACE’s customers through regulated rates. Purchase activities with the NUGs, including excess power purchases not covered by the PPAs, for the years ended December 31, 2013, 2012 and 2011 were approximately $221 million, $206 million and $218 million, respectively, of which approximately $206 million, $201 million and $206 million, respectively, consisted of power purchases under the PPAs. | |
ACE Funding | |
In 2001, ACE established ACE Funding solely for the purpose of securitizing authorized portions of ACE’s recoverable stranded costs through the issuance and sale of Transition Bonds. The proceeds of the sale of each series of Transition Bonds were transferred to ACE in exchange for the transfer by ACE to ACE Funding of the right to collect a non-bypassable Transition Bond Charge from ACE customers pursuant to bondable stranded costs rate orders issued by the NJBPU in an amount sufficient to fund the principal and interest payments on the Transition Bonds and related taxes, expenses and fees (Bondable Transition Property). The assets of ACE Funding, including the Bondable Transition Property, and the Transition Bond Charges (representing revenue ACE receives, and pays to ACE Funding, to fund the principal and interest payments on Transition Bonds and related taxes, expenses and fees) collected from ACE’s customers, are not available to creditors of ACE. The holders of Transition Bonds have recourse only to the assets of ACE Funding. ACE owns 100 percent of the equity of ACE Funding, and PHI and ACE consolidate ACE Funding in their consolidated financial statements as ACE is the primary beneficiary of ACE Funding under the variable interest entity consolidation guidance. | |
Delmarva Power & Light Co/De [Member] | ' |
Variable Interest Entities | ' |
(17) VARIABLE INTEREST ENTITIES | |
DPL is required to consolidate a variable interest entity (VIE) in accordance with FASB ASC 810 if DPL is the primary beneficiary of the VIE. The primary beneficiary of a VIE is typically the entity with both the power to direct activities most significantly impacting economic performance of the VIE and the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the VIE. DPL performed a qualitative analysis to determine whether a variable interest provided a controlling financial interest in a VIE at December 31, 2013, which is described below. | |
DPL is subject to Renewable Energy Portfolio Standards (RPS) in the state of Delaware that require it to obtain renewable energy credits (RECs) for energy delivered to its customers. DPL’s costs associated with obtaining RECs to fulfill its RPS obligations are recoverable from its customers by law. As of December 31, 2013, DPL is a party to three land-based wind power purchase agreements (PPAs) in the aggregate amount of 128 MWs and one solar PPA with a 10 MW facility. Each of the facilities associated with these PPAs is operational, and DPL is obligated to purchase energy and RECs in amounts generated and delivered by the wind facilities and solar renewable energy credits (SRECs) from the solar facility up to certain amounts (as set forth below) at rates that are primarily fixed under the respective PPA. DPL has concluded that while VIEs exist under these contracts, consolidation is not required for any of these PPAs under the FASB guidance on the consolidation of variable interest entities as DPL is not the primary beneficiary. DPL has not provided financial or other support under these arrangements that it was not previously contractually required to provide during the periods presented, nor does DPL have any intention to provide such additional support. | |
Because DPL has no equity or debt interest in these renewable energy transactions, the maximum exposure to loss relates primarily to any above-market costs incurred for power or RECs. Due to unpredictability in amount of MW’s ultimately purchased under the PPAs for purchased renewable energy and SRECs, PHI and DPL are unable to quantify the maximum exposure to loss. The power purchase and REC costs are recoverable from DPL’s customers through regulated rates. | |
DPL is obligated to purchase energy and RECs from one of the wind facilities through 2024 in amounts not to exceed 50 MWs, from the second wind facility through 2031 in amounts not to exceed 40 MWs, and from the third wind facility through 2031 in amounts not to exceed 38 MWs. DPL’s purchases under the three wind PPAs totaled $30 million, $27 million and $18 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
The term of the agreement with the solar facility is 20 years and DPL is obligated to purchase SRECs in an amount up to 70 percent of the energy output at a fixed price. DPL’s purchases under the solar agreement were $3 million, $2 million and $1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
On October 18, 2011, the DPSC approved a tariff submitted by DPL in accordance with the requirements of the RPS specific to fuel cell facilities totaling 30 MWs to be constructed by a qualified fuel cell provider. The tariff and the RPS establish that DPL would be an agent to collect payments in advance from its distribution customers and remit them to the qualified fuel cell provider for each MW hour (MWh) of energy produced by the fuel cell facilities over 21 years. DPL has no obligation to the qualified fuel cell provider other than to remit payments collected from its distribution customers pursuant to the tariff. The RPS provides for a reduction in DPL’s REC requirements based upon the actual energy output of the facilities. At December 31, 2013 and 2012, 15 MWs and 3 MWs of capacity were available from fuel cell facilities placed in service under the tariff, respectively. DPL billed $23 million and $4 million to distribution customers during the years ended December 31, 2013 and 2012, respectively. DPL has concluded that while a VIE exists under this arrangement, consolidation is not required for this arrangement under the FASB guidance on consolidation of variable interest entities as DPL is not the primary beneficiary. | |
Atlantic City Electric Co [Member] | ' |
Variable Interest Entities | ' |
(16) VARIABLE INTEREST ENTITIES | |
ACE is required to consolidate a variable interest entity (VIE) in accordance with FASB ASC 810 if ACE or a subsidiary is the primary beneficiary of the VIE. The primary beneficiary of a VIE is typically the entity with both the power to direct activities most significantly impacting economic performance of the VIE and the obligation to absorb losses or receive benefits of the VIE that could potentially be significant to the VIE. ACE performed a qualitative analysis to determine whether a variable interest provided a controlling financial interest in a VIE at December 31, 2013, which is described below. | |
ACE Power Purchase Agreements | |
ACE is a party to three power purchase agreements (PPAs) with unaffiliated NUGs totaling 459 MWs. One of the agreements ends in 2016 and the other two end in 2024. ACE was not involved in the creation of these contracts and has no equity or debt invested in these entities. In performing its VIE analysis, ACE has been unable to obtain sufficient information to determine whether these three entities were variable interest entities or if ACE was the primary beneficiary. As a result, ACE has applied the scope exemption from the consolidation guidance. | |
Because ACE has no equity or debt invested in the NUGs, the maximum exposure to loss relates primarily to any above-market costs incurred for power. Due to unpredictability in the PPAs pricing for purchased energy, ACE is unable to quantify the maximum exposure to loss. The power purchase costs are recoverable from ACE’s customers through regulated rates. Purchase activities with the NUGs, including excess power purchases not covered by the PPAs, for the years ended December 31, 2013, 2012 and 2011 were approximately $221 million, $206 million and $218 million, respectively, of which approximately $206 million, $201 million and $206 million, respectively, consisted of power purchases under the PPAs. | |
ACE Funding | |
In 2001, ACE established ACE Funding solely for the purpose of securitizing authorized portions of ACE’s recoverable stranded costs through the issuance and sale of Transition Bonds. The proceeds of the sale of each series of Transition Bonds were transferred to ACE in exchange for the transfer by ACE to ACE Funding of the right to collect a non-bypassable Transition Bond Charge from ACE customers pursuant to bondable stranded costs rate orders issued by the NJBPU in an amount sufficient to fund the principal and interest payments on the Transition Bonds and related taxes, expenses and fees (Bondable Transition Property). The assets of ACE Funding, including the Bondable Transition Property, and the Transition Bond Charges (representing revenue ACE receives, and pays to ACE Funding, to fund the principal and interest payments on Transition Bonds and related taxes, expenses and fees) collected from ACE’s customers, are not available to creditors of ACE. The holders of Transition Bonds have recourse only to the assets of ACE Funding. ACE owns 100 percent of the equity of ACE Funding and consolidates ACE Funding in its consolidated financial statements as ACE is the primary beneficiary of ACE Funding under the variable interest entity consolidation guidance. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||
(17) ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||
The components of Pepco Holdings’ AOCL relating to continuing and discontinued operations are as follows. For additional information, see the consolidated statements of comprehensive income. | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance as of January 1 | $ | (48 | ) | $ | (63 | ) | $ | (106 | ) | ||||
Treasury Lock | |||||||||||||
Balance as of January 1 | (10 | ) | (10 | ) | (11 | ) | |||||||
Amount of pre-tax loss reclassified to Interest expense | 1 | — | 1 | ||||||||||
Income tax benefit | — | — | — | ||||||||||
Balance as of December 31 | (9 | ) | (10 | ) | (10 | ) | |||||||
Pension and Other Postretirement Benefits | |||||||||||||
Balance as of January 1 | (32 | ) | (24 | ) | (17 | ) | |||||||
Amount of amortization of net prior service cost and actuarial loss reclassified to Other operation and maintenance expense | 5 | 5 | 3 | ||||||||||
Amount of net prior service cost and actuarial gain (loss) arising during the year | 8 | (19 | ) | (14 | ) | ||||||||
Income tax benefit (expense) | 6 | (6 | ) | (4 | ) | ||||||||
Balance as of December 31 | (25 | ) | (32 | ) | (24 | ) | |||||||
Commodity Derivatives | |||||||||||||
Balance as of January 1 | (6 | ) | (29 | ) | (78 | ) | |||||||
Amount of net pre-tax loss reclassified to (Loss) income from discontinued operations before income tax | 10 | 39 | 81 | ||||||||||
Income tax benefit | 4 | 16 | 32 | ||||||||||
Balance as of December 31 | — | (6 | ) | (29 | ) | ||||||||
Balance as of December 31 | $ | (34 | ) | $ | (48 | ) | $ | (63 | ) |
Quarterly_Financial_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||||||
(18) QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||||||||
The quarterly data presented below reflect all adjustments necessary in the opinion of management for a fair presentation of the interim results. Quarterly data normally vary seasonally because of temperature variations and differences between summer and winter rates. The totals of the four quarterly basic and diluted earnings per common share amounts may not equal the basic and diluted earnings per common share for the year due to changes in the number of shares of common stock outstanding during the year. | |||||||||||||||||||||
2013 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions, except per share amounts) | |||||||||||||||||||||
Total Operating Revenue | $ | 1,180 | $ | 1,051 | $ | 1,344 | $ | 1,091 | $ | 4,666 | |||||||||||
Total Operating Expenses | 1,047 | 906 | 1,109 | 936 | (a) | 3,998 | |||||||||||||||
Operating Income | 133 | 145 | 235 | 155 | 668 | ||||||||||||||||
Other Expenses | (59 | ) | (62 | ) | (60 | ) | (58 | ) | (239 | ) | |||||||||||
Income From Continuing Operations Before Income Tax Expense | 74 | 83 | 175 | 97 | 429 | ||||||||||||||||
Income Tax Expense Related to Continuing Operations | 185 | (b) | 30 | 65 | 39 | 319 | |||||||||||||||
Net (Loss) Income From Continuing Operations | (111 | ) | 53 | 110 | 58 | 110 | |||||||||||||||
(Loss) Income from Discontinued Operations, net of taxes | (319 | ) | (11 | ) | 8 | — | (322 | ) | |||||||||||||
Net (Loss) Income | $ | (430 | ) | $ | 42 | $ | 118 | $ | 58 | $ | (212 | ) | |||||||||
Basic and Diluted Earnings Per Share of Common Stock | |||||||||||||||||||||
(Loss) Earnings Per Share of Common Stock from Continuing Operations | (0.47 | ) | 0.21 | 0.44 | 0.23 | 0.45 | |||||||||||||||
(Loss) Earnings Per Share of Common Stock from Discontinued Operations | (1.35 | ) | (0.04 | ) | 0.04 | — | (1.31 | ) | |||||||||||||
(Loss) Earnings Per Share of Common Stock | (1.82 | ) | 0.17 | 0.48 | 0.23 | (0.86 | ) | ||||||||||||||
Cash Dividends Per Share of Common Stock | 0.27 | 0.27 | 0.27 | 0.27 | 1.08 | ||||||||||||||||
(a) | Includes a pre-tax impairment loss of $4 million ($3 million after-tax) at Pepco Energy Services associated with a landfill gas-fired electric generation facility. | ||||||||||||||||||||
(b) | Includes an income tax charge of $56 million (after-tax) primarily associated with interest on uncertain and effectively settled tax positions and an income tax charge of $101 million associated with the establishment of valuation allowances against certain deferred tax assets of PCI. | ||||||||||||||||||||
2012 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions, except per share amounts) | |||||||||||||||||||||
Total Operating Revenue (a) | $ | 1,123 | $ | 1,057 | $ | 1,389 | $ | 1,056 | $ | 4,625 | |||||||||||
Total Operating Expenses (a)(b) | 1,010 | 932 | 1,188 | 954 | 4,084 | ||||||||||||||||
Operating Income | 113 | 125 | 201 | 102 | 541 | ||||||||||||||||
Other Expenses | (54 | ) | (52 | ) | (57 | ) | (57 | ) | (220 | ) | |||||||||||
Income From Continuing Operations Before Income Tax Expense | 59 | 73 | 144 | 45 | 321 | ||||||||||||||||
Income Tax Expense Related to Continuing Operations | 9 | 26 | 57 | 11 | 103 | ||||||||||||||||
Net Income From Continuing Operations | 50 | 47 | 87 | 34 | 218 | ||||||||||||||||
Income from Discontinued Operations, net of taxes | 18 | 15 | 25 | 9 | 67 | ||||||||||||||||
Net Income | $ | 68 | $ | 62 | $ | 112 | $ | 43 | $ | 285 | |||||||||||
Basic Earnings Per Share of Common Stock | |||||||||||||||||||||
Earnings Per Share of Common Stock from Continuing Operations | 0.22 | 0.2 | 0.38 | 0.15 | 0.95 | ||||||||||||||||
Earnings Per Share of Common Stock from Discontinued Operations | 0.08 | 0.07 | 0.11 | 0.03 | 0.3 | ||||||||||||||||
Basic Earnings Per Share of Common Stock | 0.3 | 0.27 | 0.49 | 0.18 | 1.25 | ||||||||||||||||
Diluted Earnings Per Share of Common Stock | |||||||||||||||||||||
Earnings Per Share of Common Stock from Continuing Operations | 0.22 | 0.2 | 0.38 | 0.15 | 0.95 | ||||||||||||||||
Earnings Per Share of Common Stock from Discontinued Operations | 0.08 | 0.07 | 0.11 | 0.03 | 0.29 | ||||||||||||||||
Diluted Earnings Per Share of Common Stock | 0.3 | 0.27 | 0.49 | 0.18 | 1.24 | ||||||||||||||||
Cash Dividends Per Share of Common Stock | 0.27 | 0.27 | 0.27 | 0.27 | 1.08 | ||||||||||||||||
(a) | Includes $9 million of intra-company revenues (and associated costs) previously eliminated in consolidation which will continue to be recognized from third parties subsequent to the completion of the wind-down of the Pepco Energy Services’ retail electric and natural gas supply businesses. | ||||||||||||||||||||
(b) | Includes impairment losses of $12 million pre-tax ($7 million after-tax) at Pepco Energy Services associated primarily with investments in landfill gas-fired electric generation facilities, and the combustion turbines at Buzzard Point. | ||||||||||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||||||
(14) QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||||||||
The quarterly data presented below reflect all adjustments necessary, in the opinion of management, for a fair presentation of the interim results. Quarterly data normally vary seasonally because of temperature variations and differences between summer and winter rates. Therefore, comparisons by quarter within a year are not meaningful. | |||||||||||||||||||||
2013 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Total Operating Revenue | $ | 477 | $ | 469 | $ | 605 | $ | 475 | $ | 2,026 | |||||||||||
Total Operating Expenses | 430 | 389 | 476 | 410 | 1,705 | ||||||||||||||||
Operating Income | 47 | 80 | 129 | 65 | 321 | ||||||||||||||||
Other Expenses | (22 | ) | (23 | ) | (23 | ) | (24 | ) | (92 | ) | |||||||||||
Income Before Income Tax Expense | 25 | 57 | 106 | 41 | 229 | ||||||||||||||||
Income Tax Expense | 2 | (a) | 20 | 40 | 17 | 79 | |||||||||||||||
Net Income | $ | 23 | $ | 37 | $ | 66 | $ | 24 | $ | 150 | |||||||||||
(a) | Includes tax benefits of $5 million (after-tax) allocated to Pepco associated with interest on uncertain and effectively settled tax positions resulting from a change in assessment of tax benefits associated with the cross-border energy leases of a PHI affiliate. | ||||||||||||||||||||
2012 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Total Operating Revenue | $ | 465 | $ | 456 | $ | 582 | $ | 445 | $ | 1,948 | |||||||||||
Total Operating Expenses | 425 | 401 | 475 | 390 | 1,691 | ||||||||||||||||
Operating Income | 40 | 55 | 107 | 55 | 257 | ||||||||||||||||
Other Expenses | (21 | ) | (20 | ) | (22 | ) | (20 | ) | (83 | ) | |||||||||||
Income Before Income Tax Expense | 19 | 35 | 85 | 35 | 174 | ||||||||||||||||
Income Tax (Benefit) Expense (a) | (5 | ) (a) | 8 | 35 | 10 | 48 | |||||||||||||||
Net Income | $ | 24 | $ | 27 | $ | 50 | $ | 25 | $ | 126 | |||||||||||
(a) | Includes tax benefits of $10 million (after-tax), primarily related to the settlement of an uncertain tax position with the IRS related to the methodology used historically to calculate deductible mixed service costs and the expiration of the statute of limitations associated with an uncertain tax position. | ||||||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||||||
(16) QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||||||||
The quarterly data presented below reflect all adjustments necessary, in the opinion of management, for a fair presentation of the interim results. Quarterly data normally vary seasonally because of temperature variations and differences between summer and winter rates. Therefore, comparisons by quarter within a year are not meaningful. | |||||||||||||||||||||
2013 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Total Operating Revenue | $ | 370 | $ | 266 | $ | 296 | $ | 312 | $ | 1,244 | |||||||||||
Total Operating Expenses | 317 | 235 | 249 | 258 | 1,059 | ||||||||||||||||
Operating Income | 53 | 31 | 47 | 54 | 185 | ||||||||||||||||
Other Expenses | (11 | ) | (10 | ) | (10 | ) | (9 | ) | (40 | ) | |||||||||||
Income Before Income Tax Expense | 42 | 21 | 37 | 45 | 145 | ||||||||||||||||
Income Tax Expense | 16 | 9 | 14 | 17 | 56 | ||||||||||||||||
Net Income | $ | 26 | $ | 12 | $ | 23 | $ | 28 | $ | 89 | |||||||||||
2012 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Total Operating Revenue | $ | 333 | $ | 259 | $ | 340 | $ | 301 | $ | 1,233 | |||||||||||
Total Operating Expenses | 290 | 229 | 297 | 263 | 1,079 | ||||||||||||||||
Operating Income | 43 | 30 | 43 | 38 | 154 | ||||||||||||||||
Other Expenses | (8 | ) | (8 | ) | (10 | ) | (11 | ) | (37 | ) | |||||||||||
Income Before Income Tax Expense | 35 | 22 | 33 | 27 | 117 | ||||||||||||||||
Income Tax Expense | 14 | 9 | 11 | 10 | 44 | ||||||||||||||||
Net Income | $ | 21 | $ | 13 | $ | 22 | $ | 17 | $ | 73 | |||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||||||
Quarterly Financial Information (Unaudited) | ' | ||||||||||||||||||||
(15) QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||||||||
The quarterly data presented below reflect all adjustments necessary, in the opinion of management, for a fair presentation of the interim results. Quarterly data normally vary seasonally because of temperature variations and differences between summer and winter rates. Therefore, comparisons by quarter within a year are not meaningful. | |||||||||||||||||||||
2013 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Total Operating Revenue | $ | 277 | $ | 271 | $ | 396 | $ | 258 | $ | 1,202 | |||||||||||
Total Operating Expenses | 254 | 242 | 341 | 229 | 1,066 | ||||||||||||||||
Operating Income | 23 | 29 | 55 | 29 | 136 | ||||||||||||||||
Other Expenses | (17 | ) | (18 | ) | (17 | ) | (15 | ) | (67 | ) | |||||||||||
Income Before Income Tax Expense (Benefit) | 6 | 11 | 38 | 14 | 69 | ||||||||||||||||
Income Tax (Benefit) Expense | (3 | ) | 4 | 13 | 5 | 19 | |||||||||||||||
Net Income | $ | 9 | $ | 7 | $ | 25 | $ | 9 | $ | 50 | |||||||||||
2012 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Total Operating Revenue | $ | 256 | $ | 270 | $ | 413 | $ | 259 | $ | 1,198 | |||||||||||
Total Operating Expenses | 239 | 230 | 364 | 246 | 1,079 | ||||||||||||||||
Operating Income | 17 | 40 | 49 | 13 | 119 | ||||||||||||||||
Other Expenses | (16 | ) | (17 | ) | (16 | ) | (17 | ) | (66 | ) | |||||||||||
Income (Loss) Before Income Tax Expense (Benefit) | 1 | 23 | 33 | (4 | ) | 53 | |||||||||||||||
Income Tax (Benefit) Expense | (1 | ) | 9 | 13 | (3 | ) | 18 | ||||||||||||||
Net Income (Loss) | $ | 2 | $ | 14 | $ | 20 | $ | (1 | ) | $ | 35 |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Discontinued Operations And Disposal Groups [Abstract] | ' | ||||||||||||||||||||
Discontinued Operations | ' | ||||||||||||||||||||
(19) DISCONTINUED OPERATIONS | |||||||||||||||||||||
PHI’s (loss) income from discontinued operations, net of income taxes, is comprised of the following: | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Cross-border energy lease investments | $ | (327 | ) | $ | 41 | $ | 36 | ||||||||||||||
Pepco Energy Services’ retail electric and natural gas supply businesses | 5 | 26 | 2 | ||||||||||||||||||
Conectiv Energy | — | — | (3 | ) | |||||||||||||||||
(Loss) income from discontinued operations, net of income taxes | $ | (322 | ) | $ | 67 | $ | 35 | ||||||||||||||
Cross-Border Energy Lease Investments | |||||||||||||||||||||
Between 1994 and 2002, PCI entered into cross-border energy lease investments consisting of hydroelectric generation facilities, coal-fired electric generation facilities and natural gas distribution networks located outside of the United States. Each of these lease investments was structured as a sale and leaseback transaction commonly referred to as a sale-in, lease-out, or SILO, transaction. As of December 31, 2013 and 2012, the lease portfolio consisted of zero investments and six investments, respectively, with a net investment value of zero and $1,237 million, respectively. | |||||||||||||||||||||
During the second and third quarters of 2013, PHI terminated early all of its interests in the six remaining lease investments. PHI received aggregate net cash proceeds from these early terminations of $873 million (net of aggregate termination payments of $2.0 billion used to retire the non-recourse debt associated with the terminated leases) and recorded an aggregate pre-tax loss, including transaction costs, of approximately $3 million ($2 million after-tax), representing the excess of the carrying value of the terminated leases over the net cash proceeds received. As a result, PHI has reported the results of operations of the cross-border energy lease investments as discontinued operations in all periods presented in the accompanying consolidated statements of (loss) income. Further, the assets and liabilities related to the cross-border energy lease investments are reported as held for disposition as of each date in the accompanying consolidated balance sheets. | |||||||||||||||||||||
Operating Results | |||||||||||||||||||||
The operating results for the cross-border energy lease investments are as follows: | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Operating revenue from PHI’s cross-border energy lease investments | $ | 7 | $ | 50 | $ | 55 | |||||||||||||||
Non-cash charge to reduce carrying value of PHI’s cross-border energy lease investments | (373 | ) | — | (7 | ) | ||||||||||||||||
Total operating revenue | $ | (366 | ) | $ | 50 | $ | 48 | ||||||||||||||
(Loss) income from operations of discontinued operations, net of income taxes (a) | $ | (325 | ) | $ | 32 | $ | 33 | ||||||||||||||
Net (losses) gains associated with the early termination of the cross-border energy lease investments, net of income taxes (b) | (2 | ) | 9 | 3 | |||||||||||||||||
(Loss) income from discontinued operations, net of income taxes | $ | (327 | ) | $ | 41 | $ | 36 | ||||||||||||||
(a) | Includes income tax (benefit) expense of approximately $(44) million, $5 million and $(2) million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||
(b) | Includes income tax (benefit) expense of approximately $(1) million, $30 million and $36 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||
On January 9, 2013, the U.S. Court of Appeals for the Federal Circuit issued an opinion in Consolidated Edison Company of New York, Inc. & Subsidiaries v. United States (to which PHI is not a party) that disallowed tax benefits associated with Consolidated Edison’s cross-border lease transaction. As a result of the court’s ruling in this case, PHI determined in the first quarter of 2013 that its tax position with respect to the benefits associated with its cross-border energy leases no longer met the more-likely-than-not standard of recognition for accounting purposes, and PCI recorded after-tax non-cash charges of $323 million in the first quarter of 2013 and $6 million in the second quarter of 2013, consisting of the following components: | |||||||||||||||||||||
• | A non-cash pre-tax charge of $373 million ($313 million after-tax) to reduce the carrying value of these cross-border energy lease investments under FASB guidance on leases (ASC 840). This pre-tax charge was originally recorded in the consolidated statements of (loss) income as a reduction in operating revenue and is now reflected in (loss) income from discontinued operations, net of income taxes. | ||||||||||||||||||||
• | A non-cash charge of $16 million after-tax to reflect the anticipated additional net interest expense under FASB guidance for income taxes (ASC 740) related to estimated federal and state income tax obligations for the period over which the tax benefits may be disallowed. This after-tax charge was originally recorded in the consolidated statements of (loss) income as an increase in income tax expense and is now reflected in (loss) income from discontinued operations, net of income taxes. The after-tax interest charge for PHI on a consolidated basis was $70 million and this amount was allocated to each member of PHI’s consolidated group as if each member was a separate taxpayer, resulting in the recognition of a $12 million interest benefit for the Power Delivery segment, and interest expense of $16 million for PCI and $66 million for Corporate and Other, respectively. | ||||||||||||||||||||
PHI had also previously made certain business assumptions regarding foreign investment opportunities available at the end of the full lease terms. In view of the change in PHI’s tax position with respect to the tax benefits associated with the cross-border energy lease investments and PHI’s resulting decision to pursue the early termination of these investments, management concluded in the first quarter of 2013 that these business assumptions were no longer supportable and the tax effects of this conclusion were reflected in the after-tax charge of $313 million described above. | |||||||||||||||||||||
PHI accrued no penalties associated with its re-assessment of the likely outcome of tax positions associated with the cross-border energy lease investments. While the IRS could require PHI to pay a penalty of up to 20% of the amount of additional taxes due, PHI believes that it is more likely than not that no such penalty will be incurred, and therefore no amount for any potential penalty was included in the charge. | |||||||||||||||||||||
During 2012, PHI entered into early termination agreements with two lessees involving all of the leases comprising one of the original eight lease investments. The early terminations of the leases were negotiated at the request of the lessees. PHI received net cash proceeds of $202 million (net of a termination payment of $520 million used to retire the non-recourse debt associated with the terminated leases) and recorded a pre-tax gain of $39 million, representing the excess of the net cash proceeds over the carrying value of the lease investments. | |||||||||||||||||||||
During 2011, PHI entered into early termination agreements with two lessees involving all of the leases comprising one of the original eight lease investments and a small portion of the leases comprising a second lease investment. The early terminations of the leases were negotiated at the request of the lessees. PHI received net cash proceeds of $161 million (net of a termination payment of $423 million used to retire the non-recourse debt associated with the terminated leases) and recorded a pre-tax gain of $39 million, representing the excess of the net cash proceeds over the carrying value of the lease investments. | |||||||||||||||||||||
With respect to the leases terminated in 2012 and 2011, PHI had previously made certain business assumptions regarding foreign investment opportunities available at the end of the full lease terms. Because the leases were terminated in each case earlier than full term, management decided not to pursue these opportunities and recognized the related tax consequences by recording income tax charges in the amounts of $16 million and $22 million for the years ended December 31, 2012 and 2011, respectively. The after-tax gains on the lease terminations were $9 million and $3 million for the years ended December 31, 2012 and 2011, respectively, including the income tax charges discussed above and an income tax provision at the statutory Federal rate of $14 million for each early lease termination. As of December 31, 2012, PHI had no intent to terminate early any other leases in the lease portfolio and maintained its assertion that the foreign earnings recognized at the end of the lease term with respect to certain of these remaining leases will remain invested abroad. See Note (15), “Commitments and Contingencies – PHI’s Cross-Border Energy Lease Investments,” regarding a subsequent change in management’s intent. | |||||||||||||||||||||
PHI was required to assess on a periodic basis the likely outcome of tax positions relating to its cross-border energy lease investments and, if there was a change or a projected change in the timing of the tax benefits generated by the transactions, PHI was required to recalculate the value of its net investment. In that regard, PHI modified its tax cash flow assumptions in 2011 and recorded a non-cash pre-tax charge of $7 million to reduce the carrying value of its net investment. The tax cash flow assumptions changed in 2011 as a result of the enactment of tax regulations in the District of Columbia to implement the mandatory unitary combined reporting method. The charge was recorded as a reduction in cross-border energy lease investment revenue in 2011. | |||||||||||||||||||||
For additional information concerning these cross-border energy lease investments, see Note (15), “Commitments and Contingencies – PHI’s Cross-Border Energy Lease Investments.” | |||||||||||||||||||||
Balance Sheet Information | |||||||||||||||||||||
As of December 31, 2013 and 2012, the assets held for disposition and liabilities associated with assets held for disposition related to the cross-border energy lease investments are: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Scheduled lease payments to PHI, net of non-recourse debt | $ | — | $ | 1,852 | |||||||||||||||||
Less: Unearned and deferred income | — | (615 | ) | ||||||||||||||||||
Assets held for disposition | $ | — | $ | 1,237 | |||||||||||||||||
Liabilities associated with assets held for disposition | $ | — | $ | 1 | |||||||||||||||||
To ensure credit quality, PHI regularly monitored the financial performance and condition of the lessees under the former cross-border energy lease investments. Changes in credit quality were assessed to determine whether they affected the carrying value of the leases. PHI compared each lessee’s performance to annual compliance requirements set by the terms and conditions of the leases and compared published credit ratings to minimum credit rating requirements in the leases for lessees with public credit ratings. In addition, PHI routinely met with senior executives of the lessees to discuss their company and asset performance. If the annual compliance requirements or minimum credit ratings were not met, remedies would have been available under the leases. | |||||||||||||||||||||
The table below shows PHI’s net investment in these leases by the published credit ratings of the lessees as of December 31: | |||||||||||||||||||||
Lessee Rating (a) | 2013 | 2012 | |||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Rated Entities | |||||||||||||||||||||
AA/Aa and above | $ | — | $ | 766 | |||||||||||||||||
A | — | 471 | |||||||||||||||||||
Total | $ | — | $ | 1,237 | |||||||||||||||||
(a) | Excludes the credit ratings associated with collateral posted by the lessees in these transactions. | ||||||||||||||||||||
Retail Electric and Natural Gas Supply Businesses of Pepco Energy Services | |||||||||||||||||||||
On March 21, 2013, Pepco Energy Services entered into an agreement whereby a third party assumed all the rights and obligations of the remaining natural gas supply customer contracts, and the associated supply obligations, inventory and derivative contracts. The transaction was completed on April 1, 2013. In addition, in the second quarter of 2013, Pepco Energy Services completed the wind-down of its retail electric supply business by terminating its remaining customer supply and wholesale purchase obligations beyond June 30, 2013. As a result, PHI has reported the results of operations of Pepco Energy Services’ retail electric and natural gas supply businesses as discontinued operations in all periods presented in the accompanying consolidated statements of (loss) income. Further, the assets and liabilities of Pepco Energy Services’ retail electric and natural gas supply businesses are reported as held for disposition as of each date presented in the accompanying consolidated balance sheets. | |||||||||||||||||||||
Operating Results | |||||||||||||||||||||
The operating results for the retail electric and natural gas supply businesses of Pepco Energy Services are as follows: | |||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Operating revenue | $ | 84 | $ | 415 | $ | 954 | |||||||||||||||
Income from operations of discontinued operations, net of income taxes | $ | 4 | $ | 26 | $ | 2 | |||||||||||||||
Net gains associated with accelerated disposition of retail electric and natural gas contracts, net of income taxes | 1 | — | — | ||||||||||||||||||
Income from discontinued operations, net of income taxes (a) | $ | 5 | $ | 26 | $ | 2 | |||||||||||||||
(a) | Includes income tax expense of approximately $3 million, $18 million and $1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||
Balance Sheet Information | |||||||||||||||||||||
As of December 31, 2013 and 2012, the retail electric and natural gas supply businesses of Pepco Energy Services had net accounts receivable of zero and $33 million, respectively, inventory assets of $1 million and $3 million, respectively, gross derivative assets of zero and $1 million respectively, other current assets of zero and $1 million, respectively, accrued liabilities of $1 million and $20 million, respectively, gross derivative liabilities of zero and $21 million, respectively, exclusive of the collateral pledged by Pepco Energy Services against the derivative liabilities, and other current liabilities of zero and $1 million, respectively. As of December 31, 2012, the derivative assets were considered level 1 within the fair value hierarchy, and $11 million and $10 million of the derivative liabilities were considered levels 1 and 2, respectively, within the fair value hierarchy. | |||||||||||||||||||||
Derivative Instruments and Hedging Activities | |||||||||||||||||||||
Derivatives were used by the retail electric and natural gas supply businesses of Pepco Energy Services to hedge commodity price risk. | |||||||||||||||||||||
The retail electric and natural gas supply businesses of Pepco Energy Services entered into energy commodity contracts in the form of natural gas futures, swaps, options and forward contracts to hedge commodity price risk in connection with the purchase of physical natural gas and electricity for distribution to customers. The primary risk management objective was to manage the spread between retail sales commitments and the cost of supply used to service those commitments to ensure stable cash flows and lock in favorable prices and margins when they became available. There were no derivatives for Pepco Energy Services as of December 31, 2013. | |||||||||||||||||||||
Commodity contracts held by the retail electric and natural gas supply businesses of Pepco Energy Services that were not designated for hedge accounting, did not qualify for hedge accounting, or did not meet the requirements for normal purchase and normal sale accounting, were marked to market through current earnings. Forward contracts that met the requirements for normal purchase and normal sale accounting were recorded on an accrual basis. | |||||||||||||||||||||
The table below identifies the balance sheet location and fair values of the retail electric and natural gas supply businesses’ derivative instruments as of December 31, 2012: | |||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Balance Sheet Caption | Derivatives | Other | Gross | Effects of | Net | ||||||||||||||||
Designated | Derivative | Derivative | Cash | Derivative | |||||||||||||||||
as Hedging | Instruments | Instruments | Collateral | Instruments | |||||||||||||||||
Instruments (a) | and | ||||||||||||||||||||
Netting | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Assets held for disposition (current assets) | $ | — | $ | 1 | $ | 1 | $ | — | $ | 1 | |||||||||||
Total Derivative assets | — | 1 | 1 | — | 1 | ||||||||||||||||
Liabilities associated with assets held for disposition (current liabilities) | (10 | ) | (9 | ) | (19 | ) | 16 | (3 | ) | ||||||||||||
Liabilities associated with assets held for disposition (non-current liabilities) | (1 | ) | (1 | ) | (2 | ) | 2 | — | |||||||||||||
Total Derivative liabilities | (11 | ) | (10 | ) | (21 | ) | 18 | (3 | ) | ||||||||||||
Net Derivative (liability) asset | $ | (11 | ) | $ | (9 | ) | $ | (20 | ) | $ | 18 | $ | (2 | ) | |||||||
(a) | Amounts included in Derivatives Designated as Hedging Instruments primarily consist of derivatives that were designated as cash flow hedges prior to Pepco Energy Services’ election to discontinue cash flow hedge accounting for these derivatives. | ||||||||||||||||||||
Under FASB guidance on the offsetting of balance sheet accounts (ASC 210-20), the retail electric and natural gas supply businesses of Pepco Energy Services offset the fair value amounts recognized for derivative instruments and the fair value amounts recognized for related collateral positions executed with the same counterparty under master netting agreements. No derivative assets or liabilities were available to be offset under master netting agreements as of December 31, 2012. Cash collateral pledged to counterparties with the right to reclaim of $18 million (including cash deposits on commodity brokerage accounts) was offset against these derivative positions. | |||||||||||||||||||||
As of December 31, 2013 and 2012, all cash collateral pledged by the retail electric and natural gas supply businesses related to derivative instruments accounted for at fair value was entitled to be offset under master netting agreements. | |||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||
At December 31, 2012, the cumulative net pre-tax loss related to effective cash flow hedges of the retail electric and natural gas supply businesses of Pepco Energy Services included in AOCL was $10 million ($6 million after-tax). With the assumption by a third party, on April 1, 2013, of all the rights and obligations of the derivative contracts associated with the retail natural gas supply business, and the completion of the wind-down of the retail electric supply business in the second quarter of 2013, all of the losses deferred in AOCL associated with derivatives that Pepco Energy Services had previously designated as cash flow hedges were reclassified into income. As a result, a loss of $10 million ($6 million after-tax) was reclassified from AOCL to (Loss) income from discontinued operations, net of income taxes, for the year ended December 31, 2013. | |||||||||||||||||||||
Other Derivative Activity | |||||||||||||||||||||
The retail electric and natural gas supply businesses of Pepco Energy Services held certain derivatives that were not in hedge accounting relationships and were not designated as normal purchases or normal sales. These derivatives were recorded at fair value on the balance sheet with the gain or loss for changes in fair value recorded through (Loss) income from discontinued operations, net of income taxes. | |||||||||||||||||||||
For the years ended December 31, 2013, 2012, and 2011, the amount of the derivative gain (loss) for the retail electric and natural gas supply businesses of Pepco Energy Services recognized in (Loss) income from discontinued operations, net of income taxes is provided in the table below: | |||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Reclassification of mark-to-market to realized on settlement of contracts | $ | 10 | $ | 27 | $ | — | |||||||||||||||
Unrealized mark-to-market loss | — | (3 | ) | (30 | ) | ||||||||||||||||
Total net gain (loss) | $ | 10 | $ | 24 | $ | (30 | ) | ||||||||||||||
As of December 31, 2013, the retail electric and natural gas supply businesses of Pepco Energy Services had no outstanding commodity forward contracts or derivative positions. | |||||||||||||||||||||
As of December 31, 2012, the retail electric and natural gas supply businesses of Pepco Energy Services had the following net outstanding commodity forward contract quantities and net position on derivatives that did not qualify for hedge accounting: | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Commodity | Quantity | Net Position | |||||||||||||||||||
Financial transmission rights (MWh) | 181,008 | Long | |||||||||||||||||||
Electricity (MWh) | 261,240 | Long | |||||||||||||||||||
Natural gas (MMBtu) | 2,867,500 | Long | |||||||||||||||||||
As of December 31, 2013, Pepco Energy Services had posted net cash collateral of $3 million and letters of credit of less than $1 million. As December 31, 2012, Pepco Energy Services had posted net cash collateral of $25 million and letters of credit of less than $1 million. | |||||||||||||||||||||
Conectiv Energy | |||||||||||||||||||||
In April 2010, the Board of Directors approved a plan for the disposition of PHI’s competitive wholesale power generation, marketing and supply business, which had been conducted through Conectiv Energy. On July 1, 2010, PHI completed the sale of Conectiv Energy’s wholesale power generation business to Calpine. The disposition of Conectiv Energy’s remaining assets and businesses, consisting of its load service supply contracts, energy hedging portfolio, certain tolling agreements and other assets not included in the Calpine sale, has been completed. | |||||||||||||||||||||
Conectiv Energy’s loss from discontinued operations, net of income taxes, for the years ended December 31, 2013, 2012 and 2011, was zero, zero and $3 million, respectively. Conectiv Energy’s other comprehensive income from discontinued operations, net of income taxes, for each of the years ended December 31, 2013, 2012 and 2011, was zero. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||
Related Party Transactions | ' | ||||||||||||
(13) RELATED PARTY TRANSACTIONS | |||||||||||||
PHI Service Company provides various administrative and professional services to PHI and its regulated and unregulated subsidiaries, including Pepco. The cost of these services is allocated in accordance with cost allocation methodologies set forth in the service agreement using a variety of factors, including the subsidiaries’ share of employees, operating expenses, assets and other cost methods. These intercompany transactions are eliminated by PHI in consolidation and no profit results from these transactions at PHI. PHI Service Company costs directly charged or allocated to Pepco for the years ended December 31, 2013, 2012 and 2011 were approximately $209 million, $211 million and $185 million, respectively. | |||||||||||||
Pepco Energy Services performs utility maintenance services and high voltage underground transmission cabling, including services that are treated as capital costs, for Pepco. Amounts charged to Pepco by Pepco Energy Services for the years ended December 31, 2013, 2012 and 2011 were approximately $20 million, $16 million and $20 million, respectively. | |||||||||||||
As of December 31, 2013 and 2012, Pepco had the following balances on its balance sheets due to related parties: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
(Payable to) Receivable From Related Party (current) (a) | |||||||||||||
PHI Service Company | $ | (25 | ) | $ | (22 | ) | |||||||
Pepco Energy Services (b) | (7 | ) | (18 | ) | |||||||||
Other | — | (1 | ) | ||||||||||
Total | $ | (32 | ) | $ | (41 | ) | |||||||
(a) | Included in Accounts payable due to associated companies. | ||||||||||||
(b) | Pepco bills customers on behalf of Pepco Energy Services where Pepco Energy Services has performed work for certain government agencies under a General Services Administration area-wide agreement. Amount also includes charges for utility work performed by Pepco Energy Services on behalf of Pepco. Prior to the wind-down of Pepco Energy Services’ retail electric and natural gas businesses, Pepco billed customers on behalf of Pepco Energy Services where customers had selected Pepco Energy Services as their alternative energy supplier. | ||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||
Related Party Transactions | ' | ||||||||||||
(15) RELATED PARTY TRANSACTIONS | |||||||||||||
PHI Service Company provides various administrative and professional services to PHI and its regulated and unregulated subsidiaries, including DPL. The cost of these services is allocated in accordance with cost allocation methodologies set forth in the service agreement using a variety of factors, including the subsidiaries’ share of employees, operating expenses, assets and other cost methods. These intercompany transactions are eliminated by PHI in consolidation and no profit results from these transactions at PHI. PHI Service Company costs directly charged or allocated to DPL for the years ended December 31, 2013, 2012 and 2011 were $154 million, $153 million and $133 million, respectively. | |||||||||||||
In addition to the PHI Service Company charges described above, DPL’s financial statements include the following related party transactions in its statements of income: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(millions of dollars) | |||||||||||||
Purchased power under Default Electricity Supply contracts with Conectiv Energy Supply, Inc. (a) | $ | — | $ | — | $ | 1 | |||||||
Intercompany lease transactions (b) | 4 | 4 | 5 | ||||||||||
(a) | Included in Purchased energy expense. | ||||||||||||
(b) | Included in Electric revenue. | ||||||||||||
As of December 31, 2013 and 2012, DPL had the following balances on its balance sheets due to related parties: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Payable to Related Party (current) (a) | |||||||||||||
PHI Service Company | $ | (22 | ) | $ | (19 | ) | |||||||
Other | — | (1 | ) | ||||||||||
Total | $ | (22 | ) | $ | (20 | ) | |||||||
(a) | Included in Accounts payable due to associated companies. | ||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||
Related Party Transactions | ' | ||||||||||||
(14) RELATED PARTY TRANSACTIONS | |||||||||||||
PHI Service Company provides various administrative and professional services to PHI and its regulated and unregulated subsidiaries, including ACE. The cost of these services is allocated in accordance with cost allocation methodologies set forth in the service agreement using a variety of factors, including the subsidiaries’ share of employees, operating expenses, assets and other cost methods. These intercompany transactions are eliminated by PHI in consolidation and no profit results from these transactions at PHI. PHI Service Company costs directly charged or allocated to ACE for the years ended December 31, 2013, 2012 and 2011 were $115 million, $117 million and $102 million, respectively. | |||||||||||||
In addition to the PHI Service Company charges described above, ACE’s consolidated financial statements include the following related party transactions in its consolidated statements of income: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(millions of dollars) | |||||||||||||
Meter reading services provided by Millennium Account Services LLC (an ACE affiliate)(a) | $ | (4 | ) | $ | (4 | ) | $ | (4 | ) | ||||
Intercompany use revenue (b) | 3 | 3 | 2 | ||||||||||
(a) | Included in Other operation and maintenance expense. | ||||||||||||
(b) | Included in Operating revenue. | ||||||||||||
As of December 31, 2013 and 2012, ACE had the following balances on its consolidated balance sheets due to related parties: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Payable to Related Party (current) (a) | |||||||||||||
PHI Service Company | $ | (15 | ) | $ | (13 | ) | |||||||
Other | — | (1 | ) | ||||||||||
Total | $ | (15 | ) | $ | (14 | ) | |||||||
(a) | Included in Accounts payable due to associated companies. | ||||||||||||
During 2011, PHI, through Conectiv, LLC, made a $60 million capital contribution to ACE. |
Schedule_I
Schedule I | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Schedule I | ' | ||||||||||||
Schedule I, Condensed Financial Information of Parent Company is submitted below. | |||||||||||||
PEPCO HOLDINGS, INC. (Parent Company) | |||||||||||||
STATEMENTS OF (LOSS) INCOME | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(millions of dollars, except share data) | |||||||||||||
Operating Revenue | $ | — | $ | — | $ | — | |||||||
Operating Expenses | |||||||||||||
Other operation and maintenance | 1 | 1 | 1 | ||||||||||
Total operating expenses | 1 | 1 | 1 | ||||||||||
Operating Loss | (1 | ) | (1 | ) | (1 | ) | |||||||
Other Income (Expenses) | |||||||||||||
Interest expense | (42 | ) | (33 | ) | (29 | ) | |||||||
Income from equity investments | 204 | 237 | 243 | ||||||||||
Impairment losses | — | — | (5 | ) | |||||||||
Total other income | 162 | 204 | 209 | ||||||||||
Income from Continuing Operations Before Income Tax | 161 | 203 | 208 | ||||||||||
Income Tax Expense (Benefit) Related to Continuing Operations | 51 | (15 | ) | (14 | ) | ||||||||
Net Income from Continuing Operations | 110 | 218 | 222 | ||||||||||
(Loss) Income from Discontinued Operations, net of Income Taxes | (322 | ) | 67 | 35 | |||||||||
Net (Loss) Income | $ | (212 | ) | $ | 285 | $ | 257 | ||||||
Comprehensive (Loss) Income | $ | (198 | ) | $ | 300 | $ | 300 | ||||||
Earnings Per Share | |||||||||||||
Basic earnings per share of common stock from Continuing Operations | $ | 0.45 | $ | 0.95 | $ | 0.98 | |||||||
Basic (loss) earnings per share of common stock from Discontinued Operations | (1.31 | ) | 0.3 | 0.16 | |||||||||
Basic (loss) earnings per share of common stock | $ | (0.86 | ) | $ | 1.25 | $ | 1.14 | ||||||
Diluted earnings per share of common stock from Continuing Operations | $ | 0.45 | $ | 0.95 | $ | 0.98 | |||||||
Diluted (loss) earnings per share of common stock from Discontinued Operations | (1.31 | ) | 0.29 | 0.16 | |||||||||
Diluted (loss) earnings per share of common stock | $ | (0.86 | ) | $ | 1.24 | $ | 1.14 | ||||||
The accompanying Notes are an integral part of these financial statements. | |||||||||||||
PEPCO HOLDINGS, INC. (Parent Company) | |||||||||||||
BALANCE SHEETS | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars, except share data) | |||||||||||||
ASSETS | |||||||||||||
Current Assets | |||||||||||||
Cash and cash equivalents | $ | — | $ | 262 | |||||||||
Prepayments of income taxes | 151 | 12 | |||||||||||
Accounts receivable and other | 28 | 7 | |||||||||||
179 | 281 | ||||||||||||
Investments and Other Assets | |||||||||||||
Goodwill | 1,398 | 1,398 | |||||||||||
Investment in consolidated companies | 3,935 | 2,633 | |||||||||||
Net assets associated with investment in consolidated companies held for disposition | — | 1,232 | |||||||||||
Other | 37 | 55 | |||||||||||
5,370 | 5,318 | ||||||||||||
Total Assets | $ | 5,549 | $ | 5,599 | |||||||||
LIABILITIES AND EQUITY | |||||||||||||
Current Liabilities | |||||||||||||
Short-term debt | $ | 24 | $ | 464 | |||||||||
Interest and taxes accrued | 10 | 11 | |||||||||||
Accounts payable due to associated companies | 1 | 2 | |||||||||||
35 | 477 | ||||||||||||
Deferred Credits | |||||||||||||
Notes payable due to subsidiary companies | 491 | — | |||||||||||
Liabilities and accrued interest related to uncertain tax positions | 3 | 3 | |||||||||||
494 | 3 | ||||||||||||
Long-Term Debt | 705 | 705 | |||||||||||
Commitments and Contingencies (Note 4) | |||||||||||||
Equity | |||||||||||||
Common stock, $.01 par value; 400,000,000 shares authorized; 250,324,898 and 230,015,427 shares outstanding, respectively | 3 | 2 | |||||||||||
Premium on stock and other capital contributions | 3,751 | 3,383 | |||||||||||
Accumulated other comprehensive loss | (34 | ) | (48 | ) | |||||||||
Retained earnings | 595 | 1,077 | |||||||||||
Total equity | 4,315 | 4,414 | |||||||||||
Total Liabilities and Equity | $ | 5,549 | $ | 5,599 | |||||||||
The accompanying Notes are an integral part of these financial statements. | |||||||||||||
PEPCO HOLDINGS, INC. (Parent Company) | |||||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(millions of dollars) | |||||||||||||
OPERATING ACTIVITIES | |||||||||||||
Net (loss) income | $ | (212 | ) | $ | 285 | $ | 257 | ||||||
Loss (income) from discontinued operations, net of income taxes | 322 | (67 | ) | (35 | ) | ||||||||
Adjustments to reconcile net income to net cash from operating activities: | |||||||||||||
Distributions from related parties less than earnings | (127 | ) | (52 | ) | (169 | ) | |||||||
Deferred income taxes | (7 | ) | (31 | ) | (16 | ) | |||||||
Changes in: | |||||||||||||
Prepaid and other | 2 | (23 | ) | 23 | |||||||||
Accounts payable | 6 | 6 | 2 | ||||||||||
Interest and taxes | (141 | ) | 39 | 42 | |||||||||
Other assets and liabilities | 3 | 4 | 11 | ||||||||||
Net Cash (Used By) From Operating Activities | (154 | ) | 161 | 115 | |||||||||
FINANCING ACTIVITIES | |||||||||||||
Dividends paid on common stock | (270 | ) | (248 | ) | (244 | ) | |||||||
Common stock issued for the Direct Stock Purchase and Dividend Reinvestment Plan and employee-related compensation | 50 | 51 | 47 | ||||||||||
Issuances of common stock | 324 | — | — | ||||||||||
Capital distribution to subsidiaries, net | (250 | ) | (110 | ) | (20 | ) | |||||||
Decrease in notes receivable from associated companies | — | 154 | — | ||||||||||
Increase in notes payable due to associated companies | 491 | — | — | ||||||||||
(Repayments) issuances of short-term debt, net | (240 | ) | (201 | ) | 235 | ||||||||
Issuance of term loan | 250 | 200 | — | ||||||||||
Repayments of term loans | (450 | ) | — | — | |||||||||
Costs of issuances | (13 | ) | (2 | ) | (7 | ) | |||||||
Net Cash (Used By) From Financing Activities | (108 | ) | (156 | ) | 11 | ||||||||
Net (decrease) increase in cash and cash equivalents | (262 | ) | 5 | 126 | |||||||||
Cash and cash equivalents at beginning of year | 262 | 257 | 131 | ||||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | — | $ | 262 | $ | 257 | |||||||
The accompanying Notes are an integral part of these financial statements. | |||||||||||||
NOTES TO FINANCIAL INFORMATION | |||||||||||||
(1) BASIS OF PRESENTATION | |||||||||||||
Pepco Holdings, Inc. (Pepco Holdings) is a holding company and conducts substantially all of its business operations through its subsidiaries. These condensed financial statements and related footnotes have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X. These statements should be read in conjunction with the consolidated financial statements and notes thereto of Pepco Holdings included in Part II, Item 8 of this Form 10-K. | |||||||||||||
Pepco Holdings owns 100% of the common stock of all its significant subsidiaries. | |||||||||||||
(2) RECLASSIFICATIONS AND ADJUSTMENTS | |||||||||||||
Certain prior period amounts have been reclassified in order to conform to the current period presentation. | |||||||||||||
Revision to Prior Period Financial Statements | |||||||||||||
PCI Deferred Income Tax Liability Adjustment | |||||||||||||
Since 1999, PCI had not recorded a deferred tax liability related to a temporary difference between the financial reporting basis and the tax basis of an investment in a wholly owned partnership. In the second quarter of 2013, PHI re-evaluated this accounting treatment and found it to be in error, requiring an adjustment related to prior periods. PHI determined that the cumulative adjustment required, representing a charge to earnings of $32 million, related to a period prior to the year ended December 31, 2009 (the earliest period for which selected consolidated financial data were presented in the table entitled “Selected Financial Data” in Part II, Item 6 of this Annual Report on Form 10-K). Consistent with PHI’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, the accompanying PHI parent company financial statements reflect the correction of this error as an adjustment to shareholders’ equity for the earliest period presented. The adjustment to correct the error did not affect PHI’s parent company statements of income and cash flows for each of the three years in the period ended December 31, 2013, and only affected the reported balances of investment in consolidated companies and retained earnings as reflected in PHI’s parent company balance sheets as of December 31, 2013 and 2012. The adjustment is not considered to be material to the reported balances of retained earnings and total equity reflected in PHI’s parent company financial statements included in this Annual Report on Form 10-K. The table below illustrates the effects of the revision on reported balances in PHI’s parent company financial statements. | |||||||||||||
As Filed | Adjustment | As Revised | |||||||||||
(millions of dollars) | |||||||||||||
December 31, 2012 | |||||||||||||
Investment in consolidated companies | $ | 2,665 | (a) | $ | (32 | ) | $ | 2,633 | |||||
Total investments and other assets | 5,350 | (32 | ) | 5,318 | |||||||||
Retained earnings | 1,109 | (32 | ) | 1,077 | |||||||||
Total equity | 4,446 | (32 | ) | 4,414 | |||||||||
December 31, 2011 | |||||||||||||
Investment in consolidated companies | $ | 2,351 | (a) | $ | (32 | ) | $ | 2,319 | |||||
Total investments and other assets | 5,230 | (32 | ) | 5,198 | |||||||||
Retained earnings | 1,072 | (32 | ) | 1,040 | |||||||||
Total equity | 4,336 | (32 | ) | 4,304 | |||||||||
December 31, 2010 | |||||||||||||
Investment in consolidated companies | $ | 1,664 | $ | (32 | ) | $ | 1,632 | ||||||
Total investments and other assets | 4,959 | (32 | ) | 4,927 | |||||||||
Retained earnings | 1,059 | (32 | ) | 1,027 | |||||||||
Total equity | 4,230 | (32 | ) | 4,198 | |||||||||
(a) | The amount differs from the amount originally reported in the 2012 Form 10-K due to the reclassification of net assets associated with investment in consolidated companies to assets held for disposition. | ||||||||||||
(3) DEBT | |||||||||||||
For information concerning Pepco Holdings’ long-term debt obligations, see Note (10), “Debt,” to the consolidated financial statements of Pepco Holdings. | |||||||||||||
(4) COMMITMENTS AND CONTINGENCIES | |||||||||||||
For information concerning Pepco Holdings’ material contingencies and guarantees, see Note (15), “Commitments and Contingencies” to the consolidated financial statements of Pepco Holdings. | |||||||||||||
Pepco Holdings guarantees the obligations of Pepco Energy Services under certain contracts in its energy savings performance contracting businesses and underground transmission and distribution construction business. At December 31, 2013, Pepco Holdings’ guarantees of Pepco Energy Services’ obligations under these contracts totaled $190 million. PHI also guarantees the obligations of Pepco Energy Services under surety bonds obtained by Pepco Energy Services for construction projects in these businesses. These guarantees totaled $229 million at December 31, 2013. | |||||||||||||
In addition, Pepco Holdings guarantees certain obligations of Pepco, DPL, and ACE under surety bonds obtained by these subsidiaries, for construction projects and self-insured workers compensation matters. These guarantees totaled $29 million at December 31, 2013. | |||||||||||||
Pepco Holdings, pursuant to an intercompany guarantee agreement with Potomac Capital Investment Corporation (PCI), guarantees certain intercompany obligations of PCI to its subsidiaries. This guarantee totaled $725 million at December 31, 2013. | |||||||||||||
(5) INVESTMENT IN CONSOLIDATED COMPANIES | |||||||||||||
Pepco Holdings’ majority owned subsidiaries are recorded using the equity method of accounting. A breakout of the balance in Investment in consolidated companies is as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Conectiv LLC | $ | 1,730 | $ | 1,473 | |||||||||
Potomac Electric Power Company | 1,922 | 1,643 | |||||||||||
Potomac Capital Investment Corporation (a) | 29 | (729 | ) | ||||||||||
Pepco Energy Services, Inc. | 250 | 242 | |||||||||||
PHI Service Company | 4 | 4 | |||||||||||
Total investment in consolidated companies | $ | 3,935 | $ | 2,633 | |||||||||
(a) | The investment in PCI excludes net assets held for disposition at December 31, 2012 and primarily represents income tax obligations related to the assets held for disposition. | ||||||||||||
(6) DISCONTINUED OPERATIONS | |||||||||||||
During the second and third quarters of 2013, PCI terminated all of its interests in its six remaining cross-border energy lease investments. PCI received aggregate net cash proceeds from these early terminations of $873 million (net of aggregate termination payments of $2.0 billion used to retire the non-recourse debt associated with the terminated leases) and recorded an aggregate pre-tax loss, including transaction costs, of approximately $3 million ($2 million after-tax), representing the excess of the carrying value of the terminated leases over the net cash proceeds received. As a result, PHI has reported the results of operations of the cross-border energy lease investments as discontinued operations in all periods presented in the accompanying statements of (loss) income. Further, the assets and liabilities related to the cross-border energy lease investments are reported as held for disposition as of each date in the accompanying balance sheets. | |||||||||||||
In December 2009, PHI announced the wind-down of the retail energy supply component of the Pepco Energy Services business, which was comprised of the retail electric and natural gas supply businesses. Pepco Energy Services implemented the wind-down by not entering into any new retail electric or natural gas supply contracts while continuing to perform under its existing retail electric and natural gas supply contracts through their respective expiration dates. On March 21, 2013, Pepco Energy Services entered into an agreement whereby a third party assumed all the rights and obligations of the remaining retail natural gas supply customer contracts, and the associated supply obligations, inventory and derivative contracts. The transaction was completed on April 1, 2013. In addition, Pepco Energy Services completed the wind-down of its retail electric supply business in the second quarter of 2013 by terminating its remaining customer supply and wholesale purchase obligations beyond June 30, 2013. The operations of Pepco Energy Services’ retail electric and natural gas supply businesses have been classified as discontinued operations for financial reporting purposes. | |||||||||||||
In April 2010, the Board of Directors approved a plan for the disposition of PHI’s competitive wholesale power generation, marketing and supply business, which had been conducted through Conectiv Energy. On July 1, 2010, PHI completed the sale of Conectiv Energy’s wholesale power generation business to Calpine for $1.64 billion. The disposition of Conectiv Energy’s remaining assets and businesses, consisting of its load service supply contracts, energy hedging portfolio, certain tolling agreements and other assets not included in the Calpine sale, has been completed. | |||||||||||||
(7) RELATED PARTY TRANSACTIONS | |||||||||||||
As of December 31, 2013 and 2012, PHI had the following balances on its balance sheets due (to) from related parties: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
(Payable to) Receivable from Related Party (current) (a) | |||||||||||||
Conectiv Communications, Inc. | $ | (4 | ) | $ | (4 | ) | |||||||
PHI Service Company | 3 | 1 | |||||||||||
Other | — | 1 | |||||||||||
Total | $ | (1 | ) | $ | (2 | ) | |||||||
Payable to Related Party (non-current) (b) | |||||||||||||
Potomac Capital Investment Corporation | $ | (491 | ) | $ | — | ||||||||
Money Pool Balance (included in cash and cash equivalents) | $ | — | $ | 262 | |||||||||
(a) | Included in Accounts payable due to associated companies. | ||||||||||||
(b) | Included in Notes payable due to subsidiary companies. |
Schedule_II
Schedule II | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||
Schedule II | ' | ||||||||||||||||||||
Schedule II, Valuation and Qualifying Accounts, for each registrant is submitted below. | |||||||||||||||||||||
Pepco Holdings, Inc. | |||||||||||||||||||||
Col. A | Col. B | Col. C | Col. D | Col. E | |||||||||||||||||
Additions | |||||||||||||||||||||
Description | Balance at | Charged to | Charged to | Deductions(b) | Balance | ||||||||||||||||
Beginning | Costs and | Other | at End | ||||||||||||||||||
of Period | Expenses | Accounts (a) | of Period | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Year Ended December 31, 2013 Allowance for uncollectible accounts—customer and other accounts receivable | $ | 34 | $ | 37 | $ | 5 | $ | (38 | ) | $ | 38 | ||||||||||
Year Ended December 31, 2012 Allowance for uncollectible accounts—customer and other accounts receivable | $ | 43 | $ | 35 | $ | 8 | $ | (52 | ) | $ | 34 | ||||||||||
Year Ended December 31, 2011 Allowance for uncollectible accounts—customer and other accounts receivable | $ | 44 | $ | 45 | $ | 8 | $ | (54 | ) | $ | 43 | ||||||||||
(a) | Collection of accounts previously written off. | ||||||||||||||||||||
(b) | Uncollectible accounts written off. | ||||||||||||||||||||
Potomac Electric Power Company | |||||||||||||||||||||
Col. A | Col. B | Col. C | Col. D | Col. E | |||||||||||||||||
Additions | |||||||||||||||||||||
Description | Balance at | Charged to | Charged to | Deductions(b) | Balance | ||||||||||||||||
Beginning | Costs and | Other | at End | ||||||||||||||||||
of Period | Expenses | Accounts (a) | of Period | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Year Ended December 31, 2013 Allowance for uncollectible accounts—customer and other accounts receivable | $ | 13 | $ | 15 | $ | 1 | $ | (13 | ) | $ | 16 | ||||||||||
Year Ended December 31, 2012 Allowance for uncollectible accounts—customer and other accounts receivable | $ | 18 | $ | 13 | $ | 2 | $ | (20 | ) | $ | 13 | ||||||||||
Year Ended December 31, 2011 Allowance for uncollectible accounts—customer and other accounts receivable | $ | 20 | $ | 21 | $ | 2 | $ | (25 | ) | $ | 18 | ||||||||||
(a) | Collection of accounts previously written off. | ||||||||||||||||||||
(b) | Uncollectible accounts written off. | ||||||||||||||||||||
Delmarva Power & Light Company | |||||||||||||||||||||
Col. A | Col. B | Col. C | Col. D | Col. E | |||||||||||||||||
Additions | |||||||||||||||||||||
Description | Balance at | Charged to | Charged to | Deductions(b) | Balance | ||||||||||||||||
Beginning | Costs and | Other | at End | ||||||||||||||||||
of Period | Expenses | Accounts (a) | of Period | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Year Ended December 31, 2013 Allowance for uncollectible accounts—customer and other accounts receivable | $ | 9 | $ | 11 | $ | 1 | $ | (9 | ) | $ | 12 | ||||||||||
Year Ended December 31, 2012 Allowance for uncollectible accounts—customer and other accounts receivable | $ | 12 | $ | 11 | $ | 3 | $ | (17 | ) | $ | 9 | ||||||||||
Year Ended December 31, 2011 Allowance for uncollectible accounts—customer and other accounts receivable | $ | 13 | $ | 11 | $ | 3 | $ | (15 | ) | $ | 12 | ||||||||||
(a) | Collection of accounts previously written off. | ||||||||||||||||||||
(b) | Uncollectible accounts written off. | ||||||||||||||||||||
Atlantic City Electric Company | |||||||||||||||||||||
Col. A | Col. B | Col. C | Col. D | Col. E | |||||||||||||||||
Additions | |||||||||||||||||||||
Description | Balance at | Charged to | Charged to | Deductions(b) | Balance | ||||||||||||||||
Beginning | Costs and | Other | at End | ||||||||||||||||||
of Period | Expenses | Accounts (a) | of Period | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Year Ended December 31, 2013 Allowance for uncollectible accounts—customer and other accounts receivable | $ | 11 | $ | 11 | $ | 3 | $ | -15 | $ | 10 | |||||||||||
Year Ended December 31, 2012 Allowance for uncollectible accounts—customer and other accounts receivable | $ | 12 | $ | 12 | $ | 3 | $ | -16 | $ | 11 | |||||||||||
Year Ended December 31, 2011 Allowance for uncollectible accounts—customer and other accounts receivable | $ | 11 | $ | 13 | $ | 3 | $ | (15) | $ | 12 | |||||||||||
(a) | Collection of accounts previously written off. | ||||||||||||||||||||
(b) | Uncollectible accounts written off. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Consolidation Policy | ' | ||||||||||||||||||||||||
Consolidation Policy | |||||||||||||||||||||||||
The accompanying consolidated financial statements include the accounts of Pepco Holdings and its wholly owned subsidiaries. All material intercompany balances and transactions between subsidiaries have been eliminated. Pepco Holdings uses the equity method to report investments, corporate joint ventures, partnerships, and affiliated companies in which it holds an interest and can exercise significant influence over the operations and policies of the entity. Certain transmission and other facilities currently held, are consolidated in proportion to PHI’s percentage interest in the facility. | |||||||||||||||||||||||||
Consolidation of Variable Interest Entities | ' | ||||||||||||||||||||||||
Consolidation of Variable Interest Entities | |||||||||||||||||||||||||
PHI assesses its contractual arrangements with variable interest entities to determine whether it is the primary beneficiary and thereby has to consolidate the entities in accordance with FASB ASC 810. The guidance addresses conditions under which an entity should be consolidated based upon variable interests rather than voting interests. See Note (16), “Variable Interest Entities,” for additional information. | |||||||||||||||||||||||||
Use of Estimates | ' | ||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in the consolidated financial statements and accompanying notes. Although Pepco Holdings believes that its estimates and assumptions are reasonable, they are based upon information available to management at the time the estimates are made. Actual results may differ significantly from these estimates. | |||||||||||||||||||||||||
Significant matters that involve the use of estimates include the assessment of contingencies, the calculation of future cash flows and fair value amounts for use in asset and goodwill impairment calculations, fair value calculations for derivative instruments, pension and other postretirement benefit assumptions, the assessment of the probability of recovery of regulatory assets, accrual of storm restoration costs, accrual of unbilled revenue, recognition of changes in network service transmission rates for prior service year costs, accrual of loss contingency liabilities for general and auto liability claims, accrual of interest related to income taxes, the recognition of lease income and income tax benefits for investments in finance leases held in trust associated with PHI’s portfolio of cross-border energy lease investments (see Note (19), “Discontinued Operations – Cross-Border Energy Lease Investments”), and income tax provisions and reserves. Additionally, PHI is subject to legal, regulatory and other proceedings and claims that arise in the ordinary course of its business. PHI records an estimated liability for these proceedings and claims when it is probable that a loss has been incurred and the loss is reasonably estimable. | |||||||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
Regulated Revenue | |||||||||||||||||||||||||
Power Delivery recognizes revenue upon distribution of electricity and natural gas to its customers, including unbilled revenue for services rendered but not yet billed. PHI’s unbilled revenue was $177 million and $182 million as of December 31, 2013 and 2012, respectively, and these amounts are included in Accounts receivable. PHI’s utility subsidiaries calculate unbilled revenue using an output-based methodology. This methodology is based on the supply of electricity or natural gas intended for distribution to customers. The unbilled revenue process requires management to make assumptions and judgments about input factors such as customer sales mix, temperature and estimated line losses (estimates of electricity and natural gas expected to be lost in the process of its transmission and distribution to customers). The assumptions and judgments are inherently uncertain and susceptible to change from period to period, and if the actual results differ from the projected results, the impact could be material. | |||||||||||||||||||||||||
Taxes related to the consumption of electricity and natural gas by the utility customers, such as fuel, energy, or other similar taxes, are components of the tariff rates charged by PHI’s utility subsidiaries and, as such, are billed to customers and recorded in Operating revenue. Accruals for the remittance of these taxes are recorded in Other taxes. | |||||||||||||||||||||||||
Pepco Energy Services Revenue | |||||||||||||||||||||||||
Revenue for Pepco Energy Services’ energy savings performance construction business is recognized using the percentage-of-completion method which recognizes revenue as work is completed on its contracts. Revenues from its operation and maintenance activities and measurement and verification activities in its energy savings business are recognized when earned. | |||||||||||||||||||||||||
Taxes Assessed by a Governmental Authority on Revenue-Producing Transactions | ' | ||||||||||||||||||||||||
Taxes Assessed by a Governmental Authority on Revenue-Producing Transactions | |||||||||||||||||||||||||
Taxes included in PHI’s gross revenues were $346 million, $356 million and $378 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Accounting for Derivatives | ' | ||||||||||||||||||||||||
Accounting for Derivatives | |||||||||||||||||||||||||
PHI and its subsidiaries may use derivative instruments primarily to manage risk associated with commodity prices and interest rates. Risk management policies are determined by PHI’s Corporate Risk Management Committee (CRMC). The CRMC monitors interest rate fluctuation, commodity price fluctuation and credit risk exposure, and sets risk management policies that establish limits on unhedged risk. | |||||||||||||||||||||||||
PHI accounts for its derivative activities in accordance with FASB guidance on derivatives and hedging. Derivatives are recorded on the consolidated balance sheets as Derivative assets or Derivative liabilities and measured at fair value. | |||||||||||||||||||||||||
Changes in the fair value of derivatives held by DPL that do not qualify for hedge accounting or are not designated as hedges are presented on the consolidated statements of (loss) income as Fuel and purchased energy expense or Operating revenue, respectively. Changes in the fair value of derivatives held by DPL are deferred as regulatory assets or liabilities under the accounting guidance for regulated operations. | |||||||||||||||||||||||||
The gain or loss on a derivative that qualifies as a cash flow hedge of an exposure to variable cash flows of a forecasted transaction is initially recorded in accumulated other comprehensive loss (AOCL) (a separate component of equity) to the extent that the hedge is effective and is subsequently reclassified into earnings, in the same category as the item being hedged, when the gain or loss from the forecasted transaction occurs. If it is probable that a forecasted transaction will not occur, the deferred gain or loss in AOCL is immediately reclassified to earnings. Gains or losses related to any ineffective portion of cash flow hedges are also recognized in earnings immediately. | |||||||||||||||||||||||||
Changes in the fair value of derivatives designated as fair value hedges, as well as changes in the fair value of the hedged asset, liability or firm commitment, are recorded in the consolidated statements of (loss) income. | |||||||||||||||||||||||||
The impact of derivatives that are marked to market through current earnings, the ineffective portion of cash flow hedges, and the portion of fair value hedges that flows to current earnings are presented on a net basis in the consolidated statements of (loss) income as Operating revenue or as Fuel and purchased energy expense. When a hedging gain or loss is realized, it is presented on a net basis in the same line item as the underlying item being hedged. Unrealized derivative gains and losses are presented gross on the consolidated balance sheets except where contractual netting agreements are in place with individual counterparties. | |||||||||||||||||||||||||
The fair value of derivatives is determined using quoted exchange prices where available. For instruments that are not traded on an exchange, pricing services and external broker quotes may also be used to determine fair value. For some custom and complex instruments, internal models use market-based information when external broker quotes are not available. For certain long-dated instruments, broker or exchange data are extrapolated, or capacity prices are forecasted, for future periods where information is limited. Models are also used to estimate volumes for certain transactions. | |||||||||||||||||||||||||
PHI may enter into master netting arrangements to mitigate credit risk related to its derivatives. Under FASB guidance on offsetting of balance sheet accounts (ASC 210-20), amounts recognized for derivative assets and liabilities and the fair value amounts recognized for any related collateral positions executed with the same counterparty under such master netting agreements are offset. | |||||||||||||||||||||||||
See Note (13), “Derivative Instruments and Hedging Activities,” for more information about the types of derivatives employed by PHI, the components of any unrealized and realized gains and losses and Note (14), “Fair Value Disclosures,” for the methodologies used to value them. | |||||||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||
PHI recognizes compensation expense for stock-based awards, modifications or cancellations based on the grant-date fair value. Compensation expense is recognized over the requisite service period. A deferred tax asset and deferred tax benefit are also recognized concurrently with compensation expense for the tax effect of the deduction of stock options and restricted stock awards, which are deductible only upon exercise and vesting. | |||||||||||||||||||||||||
Historically, PHI’s compensation awards had included both time-based restricted stock awards that vest over a three-year service period and performance-based restricted stock units that were earned based on performance over a three-year period. Beginning in 2011, stock-based compensation awards have been granted primarily in the form of restricted stock units. The compensation expense associated with these awards is calculated based on the estimated fair value of the awards at the grant date and is recognized over the service or performance period. | |||||||||||||||||||||||||
PHI estimated the fair value of stock option awards on the date of grant using the Black-Scholes-Merton option pricing model. This model used assumptions related to expected term, expected volatility, expected dividend yield, and the risk-free interest rate. PHI used historical data to estimate award exercises and employee terminations within the valuation model; groups of employees that have similar historical exercise behavior were considered separately for valuation purposes. | |||||||||||||||||||||||||
PHI’s current policy is to issue new shares to satisfy vested awards of restricted stock units. | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
PHI and the majority of its subsidiaries file a consolidated federal income tax return. Federal income taxes are allocated among PHI and the subsidiaries included in its consolidated group pursuant to a written tax sharing agreement, which was approved by the Securities and Exchange Commission (SEC) in 2002 in connection with the establishment of PHI as a public utility holding company. Under this tax sharing agreement, PHI’s consolidated federal income tax liability is allocated based upon PHI’s and its subsidiaries’ separate taxable income or loss amounts. | |||||||||||||||||||||||||
The consolidated financial statements include current and deferred income taxes. Current income taxes represent the amount of tax expected to be reported on PHI’s and its subsidiaries’ federal and state income tax returns. Deferred income tax assets and liabilities represent the tax effects of temporary differences between the financial statement basis and tax basis of existing assets and liabilities, and they are measured using presently enacted tax rates. See Note (11), “Income Taxes,” for a listing of primary deferred tax assets and liabilities. The portions of Pepco’s, DPL’s and ACE’s deferred tax liabilities applicable to their utility operations that have not been recovered from utility customers represent income taxes recoverable in the future and are included in Regulatory Assets on the consolidated balance sheets. See Note (7), “Regulatory Matters – Regulatory Assets and Regulatory Liabilities,” for additional information. | |||||||||||||||||||||||||
PHI recognizes interest on underpayments and overpayments of income taxes, interest on uncertain tax positions and tax-related penalties in income tax expense. Deferred income tax expense generally represents the net change during the reporting period in the net deferred tax liability and deferred recoverable income taxes. | |||||||||||||||||||||||||
Investment tax credits are amortized to income over the useful lives of the related property. | |||||||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
Cash and cash equivalents include cash on hand, cash invested in money market funds and commercial paper held with original maturities of three months or less. | |||||||||||||||||||||||||
Restricted Cash Equivalents | ' | ||||||||||||||||||||||||
Restricted Cash Equivalents | |||||||||||||||||||||||||
The Restricted cash equivalents included in Current assets and the Restricted cash equivalents included in Other assets consist of (i) cash held as collateral that is restricted from use for general corporate purposes and (ii) cash equivalents that are specifically segregated based on management’s intent to use such cash equivalents for a particular purpose. The classification as current or non-current conforms to the classification of the related liabilities. | |||||||||||||||||||||||||
Accounts Receivable and Allowance for Uncollectible Accounts | ' | ||||||||||||||||||||||||
Accounts Receivable and Allowance for Uncollectible Accounts | |||||||||||||||||||||||||
PHI’s Accounts receivable balances primarily consist of customer accounts receivable arising from the sale of goods and services to customers within PHI’s service territories, other accounts receivable, and accrued unbilled revenue. Accrued unbilled revenue represents revenue earned in the current period but not billed to the customer until a future date (usually within one month after the receivable is recorded). | |||||||||||||||||||||||||
PHI maintains an allowance for uncollectible accounts and changes in the allowance are recorded as an adjustment to Other operation and maintenance expense in the consolidated statements of (loss) income. PHI determines the amount of the allowance based on specific identification of material amounts at risk by customer and maintains a reserve based on its historical collection experience. The adequacy of this allowance is assessed on a quarterly basis by evaluating all known factors, such as the aging of the receivables, historical collection experience, the economic and competitive environment and changes in the creditworthiness of its customers. Accounts receivable are written off in the period in which the receivable is deemed uncollectible and collection efforts have been exhausted. Recoveries of Accounts receivable previously written off are recorded when it is probable they will be recovered. Although PHI believes its allowance is adequate, it cannot anticipate with any certainty the changes in the financial condition of its customers. As a result, PHI records adjustments to the allowance for uncollectible accounts in the period in which the new information that requires an adjustment to the reserve becomes known. | |||||||||||||||||||||||||
Inventories | ' | ||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||
Inventory is valued at the lower of cost or market value. Included in Inventories are generation, transmission and distribution materials and supplies, natural gas and fuel oil. | |||||||||||||||||||||||||
PHI utilizes the weighted average cost method of accounting for inventory items. Under this method, an average price is determined for the quantity of units acquired at each price level and is applied to the ending quantity to calculate the total ending inventory balance. Materials and supplies are recorded in Inventory when purchased and then expensed or capitalized to plant, as appropriate, when installed. | |||||||||||||||||||||||||
The cost of natural gas, including transportation costs, is included in Inventory when purchased and charged to Fuel and Purchased Energy expense when used. | |||||||||||||||||||||||||
Goodwill | ' | ||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
Goodwill represents the excess of the purchase price of an acquisition over the fair value of the net assets acquired at the acquisition date. PHI tests its goodwill for impairment annually as of November 1 and whenever an event occurs or circumstances change in the interim that would more likely than not (that is, a greater than 50% chance) reduce the estimated fair value of a reporting unit below the carrying amount of its net assets. Factors that may result in an interim impairment test include, but are not limited to: a change in the identified reporting units; an adverse change in business conditions; a protracted decline in PHI’s stock price causing market capitalization to fall significantly below book value; an adverse regulatory action; or an impairment of long-lived assets in the reporting unit. PHI performed its most recent annual impairment test as of November 1, 2013, and its goodwill was not impaired as described in Note (6), “Goodwill.” | |||||||||||||||||||||||||
Regulatory Assets and Regulatory Liabilities | ' | ||||||||||||||||||||||||
Regulatory Assets and Regulatory Liabilities | |||||||||||||||||||||||||
The operations of Pepco are regulated by the District of Columbia Public Service Commission (DCPSC) and the Maryland Public Service Commission (MPSC). The operations of DPL are regulated by the Delaware Public Service Commission (DPSC) and the MPSC. DPL’s interstate transportation and wholesale sale of natural gas are regulated by the Federal Energy Regulatory Commission (FERC). The operations of ACE are regulated by the New Jersey Board of Public Utilities (NJBPU). The transmission of electricity by Pepco, DPL and ACE is regulated by FERC. | |||||||||||||||||||||||||
The FASB guidance on regulated operations (ASC 980) applies to Power Delivery. It allows regulated entities, in appropriate circumstances, to defer the income statement impact of certain costs that are expected to be recovered in future rates through the establishment of regulatory assets and defer certain revenues that are expected to be refunded to customers through the establishment of regulatory liabilities. Management’s assessment of the probability of recovery of regulatory assets requires judgment and interpretation of laws, regulatory commission orders and other factors. If management subsequently determines, based on changes in facts or circumstances, that a regulatory asset is not probable of recovery, then the regulatory asset would be eliminated through a charge to earnings. | |||||||||||||||||||||||||
Effective June 2007, the MPSC approved a bill stabilization adjustment (BSA) mechanism for retail customers of Pepco and DPL. Effective November 2009, the DCPSC approved a BSA for Pepco’s retail customers. For customers to whom the BSA applies, Pepco and DPL recognize distribution revenue based on an approved distribution charge per customer. From a revenue recognition standpoint, the BSA has the effect of decoupling the distribution revenue recognized in a reporting period from the amount of power delivered during that period. Pursuant to this mechanism, Pepco and DPL recognize either (i) a positive adjustment equal to the amount by which revenue from Maryland and the District of Columbia retail distribution sales falls short of the revenue that Pepco and DPL are entitled to earn based on the approved distribution charge per customer, or (ii) a negative adjustment equal to the amount by which revenue from such distribution sales exceeds the revenue that Pepco and DPL are entitled to earn based on the approved distribution charge per customer (a Revenue Decoupling Adjustment). A net positive Revenue Decoupling Adjustment is recorded as a regulatory asset and a net negative Revenue Decoupling Adjustment is recorded as a regulatory liability. | |||||||||||||||||||||||||
Leasing Activities | ' | ||||||||||||||||||||||||
Leasing Activities | |||||||||||||||||||||||||
Pepco Holdings’ lease transactions include plant, office space, equipment, software, vehicles and elements of power purchase agreements (PPAs). In accordance with FASB guidance on leases (ASC 840), these leases are classified as either leveraged leases, operating leases or capital leases. | |||||||||||||||||||||||||
Leveraged Leases | |||||||||||||||||||||||||
Income from investments in leveraged lease transactions, in which PHI is an equity participant, was accounted for using the financing method. In accordance with the financing method, investments in leased property were recorded as a receivable from the lessee to be recovered through the collection of future rentals. Income was recognized over the life of the lease at a constant rate of return on the positive net investment. Each quarter, PHI reviewed the carrying value of each lease, which included a review of the underlying financial assumptions, the timing and collectibility of cash flows, and the credit quality of the lessee. Changes to the underlying assumptions, if any, were accounted for in accordance with FASB guidance on leases and reflected in the carrying value of the lease effective for the quarter within which they occurred. | |||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||
An operating lease in which PHI or a subsidiary is the lessee generally results in a level income statement charge over the term of the lease, reflecting the rental payments required by the lease agreement. If rental payments are not made on a straight-line basis, PHI’s policy is to recognize rent expense on a straight-line basis over the lease term unless another systematic and rational allocation basis is more representative of the time pattern in which the leased property is physically employed. | |||||||||||||||||||||||||
Capital Leases | |||||||||||||||||||||||||
For ratemaking purposes, capital leases in which PHI or a subsidiary is the lessee are treated as operating leases; therefore, in accordance with FASB guidance on regulated operations (ASC 980), the amortization of the leased asset is based on the recovery of rental payments through customer rates. Investments in equipment under capital leases are stated at cost, less accumulated depreciation. Depreciation is recorded on a straight-line basis over the equipment’s estimated useful life. | |||||||||||||||||||||||||
Arrangements Containing a Lease | |||||||||||||||||||||||||
PPAs contain a lease if the arrangement conveys the right to control the use of property, plant or equipment. If so, PHI determines the appropriate lease accounting classification. | |||||||||||||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||
Property, plant and equipment is recorded at original cost, including labor, materials, asset retirement costs and other direct and indirect costs including capitalized interest. The carrying value of Property, plant and equipment is evaluated for impairment whenever circumstances indicate the carrying value of those assets may not be recoverable. Upon retirement, the cost of regulated property, net of salvage, is charged to Accumulated depreciation. For non-regulated property, the cost and accumulated depreciation of the property, plant and equipment retired or otherwise disposed of are removed from the related accounts and included in the determination of any gain or loss on disposition. | |||||||||||||||||||||||||
The annual provision for depreciation on electric and natural gas property, plant and equipment is computed on a straight-line basis using composite rates by classes of depreciable property. Accumulated depreciation is charged with the cost of depreciable property retired, less salvage and other recoveries. Non-operating and other property is generally depreciated on a straight-line basis over the useful lives of the assets. The table below provides system-wide composite annual depreciation rates for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
Transmission and | Generation | ||||||||||||||||||||||||
Distribution | |||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Pepco | 2.2 | % | 2.5 | % | 2.6 | % | — | — | — | ||||||||||||||||
DPL | 2.6 | % | 2.7 | % | 2.8 | % | — | — | — | ||||||||||||||||
ACE | 2.8 | % | 3 | % | 3 | % | — | — | — | ||||||||||||||||
Pepco Energy Services (a) | — | — | — | 0.4 | % | 6.4 | % | 10.2 | % | ||||||||||||||||
(a) | Percentages reflect accelerated depreciation of the Benning Road and Buzzard Point generating facilities retired during 2012. | ||||||||||||||||||||||||
In 2010, subsidiaries of PHI received awards from the U.S. Department of Energy (DOE) under the American Recovery and Reinvestment Act of 2009. Pepco was awarded $149 million from DOE to fund a portion of the costs incurred for the implementation of an advanced metering infrastructure (AMI) system (a system that collects, measures and analyzes energy usage data from advanced digital meters known as smart meters), direct load control, distribution automation and communications infrastructure in its Maryland and District of Columbia service territories. ACE was awarded $19 million from DOE to fund a portion of the costs incurred for the implementation of direct load control, distribution automation and communications infrastructure in its New Jersey service territory. PHI has elected to recognize the award proceeds as a reduction in the carrying value of the assets acquired rather than grant income over the service period. | |||||||||||||||||||||||||
Long-Lived Asset Impairment Evaluation | ' | ||||||||||||||||||||||||
Long-Lived Asset Impairment Evaluation | |||||||||||||||||||||||||
PHI evaluates long-lived assets to be held and used, such as generating property and equipment, and real estate, for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Examples of such events or changes include a significant decrease in the market price of a long-lived asset or a significant adverse change in the manner in which an asset is being used or its physical condition. A long-lived asset to be held and used is written down to its estimated fair value if the expected future undiscounted cash flow from the asset is less than its carrying value. | |||||||||||||||||||||||||
For long-lived assets held for sale, an impairment loss is recognized to the extent that the asset’s carrying value exceeds its estimated fair value including costs to sell. | |||||||||||||||||||||||||
Capitalized Interest and Allowance for Funds Used During Construction | ' | ||||||||||||||||||||||||
Capitalized Interest and Allowance for Funds Used During Construction | |||||||||||||||||||||||||
In accordance with FASB guidance on regulated operations (ASC 980), PHI’s utility subsidiaries can capitalize the capital costs of financing the construction of plant and equipment as allowance for funds used during construction (AFUDC). This results in the debt portion of AFUDC being recorded as a reduction of Interest expense and the equity portion of AFUDC being recorded as an increase to Other income in the accompanying consolidated statements of (loss) income. | |||||||||||||||||||||||||
Pepco Holdings recorded AFUDC for borrowed funds of $7 million, $7 million and $11 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Pepco Holdings recorded amounts for the equity component of AFUDC of $11 million, $14 million and $15 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Amortization of Debt Issuance and Reacquisition Costs | ' | ||||||||||||||||||||||||
Amortization of Debt Issuance and Reacquisition Costs | |||||||||||||||||||||||||
Pepco Holdings defers and amortizes debt issuance costs and long-term debt premiums and discounts over the lives of the respective debt issuances. When PHI utility subsidiaries refinance existing debt or redeem existing debt, any unamortized premiums, discounts and debt issuance costs, as well as debt redemption costs, are classified as Regulatory assets and are amortized over the life of the original or new issue. | |||||||||||||||||||||||||
Asset Removal Costs | ' | ||||||||||||||||||||||||
Asset Removal Costs | |||||||||||||||||||||||||
In accordance with FASB guidance, asset removal costs are recorded by PHI utility subsidiaries as Regulatory liabilities. At December 31, 2013 and 2012, $275 million and $324 million, respectively, of asset removal costs are included in Regulatory liabilities in the accompanying consolidated balance sheets. | |||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | ' | ||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | |||||||||||||||||||||||||
PHI sponsors the PHI Retirement Plan, a non-contributory, defined benefit pension plan that covers substantially all employees of Pepco, DPL, ACE and certain employees of other PHI subsidiaries. PHI also provides supplemental retirement benefits to certain eligible executives and key employees through nonqualified retirement plans and provides certain postretirement health care and life insurance benefits for eligible retired employees. Most employees hired after January 1, 2005 will not have retiree health care coverage. | |||||||||||||||||||||||||
Net periodic benefit cost is included in Other operation and maintenance expense, net of the portion of the net periodic benefit cost capitalized as part of the cost of labor for internal construction projects. After intercompany allocations, the three utility subsidiaries are responsible for substantially all of the total PHI net periodic benefit cost. | |||||||||||||||||||||||||
PHI accounts for the PHI Retirement Plan, the nonqualified retirement plans, and the retirement health care and life insurance benefit plans in accordance with FASB guidance on retirement benefits (ASC 715). | |||||||||||||||||||||||||
See Note (9), “Pension and Other Postretirement Benefits,” for additional information. | |||||||||||||||||||||||||
Reclassifications and Adjustments | ' | ||||||||||||||||||||||||
Reclassifications and Adjustments | |||||||||||||||||||||||||
Certain prior period amounts have been reclassified in order to conform to the current period presentation. The following adjustments have been recorded and are not considered material individually or in the aggregate to either the current period or prior period financial results: | |||||||||||||||||||||||||
Income Tax Expense Related to Continuing Operations | |||||||||||||||||||||||||
During 2013, Pepco recorded certain adjustments to correct prior period errors related to income taxes. These adjustments resulted from the completion of additional analysis of deferred tax balances and resulted in an increase in Income tax expense of $4 million, for the year ended December 31, 2013. | |||||||||||||||||||||||||
During 2011, PHI recorded adjustments to correct certain income tax errors related to prior periods associated with the interest on uncertain tax positions. The adjustment resulted in an increase in Income tax expense of $2 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
Pepco Energy Services Derivative Accounting Adjustment | |||||||||||||||||||||||||
During 2011, PHI recorded an adjustment associated with an increase in the value of certain derivatives from October 1, 2010 to December 31, 2010, which had been erroneously recorded in other comprehensive income at December 31, 2010. This adjustment resulted in a decrease in Loss from discontinued operations, net of income taxes of $1 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
DPL Operating Revenue Adjustment | |||||||||||||||||||||||||
During 2012, DPL recorded an adjustment to correct an overstatement of unbilled revenue in its natural gas distribution business related to prior periods. The adjustment resulted in a decrease in Operating revenue of $1 million for the year ended December 31, 2012. | |||||||||||||||||||||||||
DPL Default Electricity Supply Revenue and Cost Adjustments | |||||||||||||||||||||||||
During 2011, DPL recorded adjustments to correct certain errors associated with the accounting for Default Electricity Supply revenue and costs. These adjustments primarily arose from the under-recognition of allowed returns on the cost of working capital and resulted in a pre-tax decrease in Other operation and maintenance expense of $11 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
ACE BGS Deferred Electric Service Costs Adjustments | |||||||||||||||||||||||||
In 2012, ACE recorded an adjustment to correct errors associated with its calculation of deferred electric service costs. This adjustment resulted in an increase of $3 million to deferred electric service costs, all of which relates to periods prior to 2012. | |||||||||||||||||||||||||
Revision to Prior Period Financial Statements | ' | ||||||||||||||||||||||||
Revision to Prior Period Financial Statements | |||||||||||||||||||||||||
PCI Deferred Income Tax Liability Adjustment | |||||||||||||||||||||||||
Since 1999, PCI had not recorded a deferred tax liability related to a temporary difference between the financial reporting basis and the tax basis of an investment in a wholly owned partnership. In the second quarter of 2013, PHI re-evaluated this accounting treatment and found it to be in error, requiring an adjustment related to prior periods. PHI determined that the cumulative adjustment required, representing a charge to earnings of $32 million, related to a period prior to the year ended December 31, 2009 (the earliest period for which selected consolidated financial data is presented in the table entitled “Selected Financial Data” in Part II, Item 6 of this Annual Report on Form 10-K). Consistent with PHI’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, the accompanying consolidated financial statements reflect the correction of this error as an adjustment to shareholders’ equity for the earliest period presented. The adjustment to correct the error did not affect PHI’s consolidated statements of (loss) income, comprehensive (loss) income and cash flows for each of the three years in the period ended December 31, 2013, and only affected PHI’s reported balances of deferred income tax liabilities and retained earnings as reflected in the consolidated balance sheets as of December 31, 2013 and 2012 and the reported balances of retained earnings and total equity as reflected in the consolidated statements of equity for each of the three years in the period ended December 31, 2013. The adjustment is not considered to be material to PHI’s reported balances of retained earnings and total equity reflected in the PHI consolidated financial statements included in this Annual Report on Form 10-K. The table below illustrates the effects of the revision on reported balances in PHI’s consolidated financial statements. | |||||||||||||||||||||||||
As Filed | Adjustment | As Revised | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Deferred income tax liabilities, net | $ | 3,176 | $ | 32 | $ | 3,208 | |||||||||||||||||||
Total deferred credits | 4,819 | (a) | 32 | 4,851 | |||||||||||||||||||||
Retained earnings | 1,109 | (32 | ) | 1,077 | |||||||||||||||||||||
Total equity | 4,446 | (32 | ) | 4,414 | |||||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||
Deferred income tax liabilities, net | $ | 2,863 | $ | 32 | $ | 2,895 | |||||||||||||||||||
Total deferred credits | 4,549 | (a) | 32 | 4,581 | |||||||||||||||||||||
Retained earnings | 1,072 | (32 | ) | 1,040 | |||||||||||||||||||||
Total equity | 4,336 | (32 | ) | 4,304 | |||||||||||||||||||||
December 31, 2010 | |||||||||||||||||||||||||
Retained earnings | $ | 1,059 | $ | (32 | ) | $ | 1,027 | ||||||||||||||||||
Total equity | 4,230 | (b) | (32 | ) | 4,198 | ||||||||||||||||||||
(a) | The amount of total deferred credits differs from the amount orginially reported in PHI’s 2012 Form 10-K due to certain reclassifications. | ||||||||||||||||||||||||
(b) | The amount represents total shareholders’ equity, which excludes a non-controlling interest of $6 million. | ||||||||||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||||||||||
Consolidation of Variable Interest Entities | ' | ||||||||||||||||||||||||
Consolidation of Variable Interest Entities | |||||||||||||||||||||||||
DPL assesses its contractual arrangements with variable interest entities to determine whether it is the primary beneficiary and thereby has to consolidate the entities in accordance with ASC 810. The guidance addresses conditions under which an entity should be consolidated based upon variable interests rather than voting interests. See Note (17), “Variable Interest Entities, “ for additional information. | |||||||||||||||||||||||||
Use of Estimates | ' | ||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. Although DPL believes that its estimates and assumptions are reasonable, they are based upon information available to management at the time the estimates are made. Actual results may differ significantly from these estimates. | |||||||||||||||||||||||||
Significant matters that involve the use of estimates include the assessment of contingencies, the calculation of future cash flows and fair value amounts for use in asset and goodwill impairment evaluations, fair value calculations for derivative instruments, pension and other postretirement benefits assumptions, the assessment of the probability of recovery of regulatory assets, accrual of storm restoration costs, accrual of unbilled revenue, recognition of changes in network service transmission rates for prior service year costs, accrual of loss contingency liabilities for general and auto liability claims, and income tax provisions and reserves. Additionally, DPL is subject to legal, regulatory, and other proceedings and claims that arise in the ordinary course of its business. DPL records an estimated liability for these proceedings and claims when it is probable that a loss has been incurred and the loss is reasonably estimable. | |||||||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
DPL recognizes revenues upon distribution of electricity and natural gas to its customers, including unbilled revenue for services rendered, but not yet billed. DPL’s unbilled revenue was $61 million and $62 million as of December 31, 2013 and 2012, respectively, and these amounts are included in Accounts receivable. DPL calculates unbilled revenue using an output-based methodology. This methodology is based on the supply of electricity or natural gas intended for distribution to customers. The unbilled revenue process requires management to make assumptions and judgments about input factors such as customer sales mix, temperature, and estimated line losses (estimates of electricity and natural gas expected to be lost in the process of its transmission and distribution to customers). The assumptions and judgments are inherently uncertain and susceptible to change from period to period, and if the actual results differ from the projected results, the impact could be material. Revenues from non-regulated electricity and natural gas sales are included in Electric revenues and Natural gas revenues, respectively. | |||||||||||||||||||||||||
Taxes related to the consumption of electricity and natural gas by its customers, such as fuel, energy, or other similar taxes, are components of DPL’s tariffs and, as such, are billed to customers and recorded in Operating revenue. Accruals for the remittance of these taxes by DPL are recorded in Other taxes. | |||||||||||||||||||||||||
Taxes Assessed by a Governmental Authority on Revenue-Producing Transactions | ' | ||||||||||||||||||||||||
Taxes Assessed by a Governmental Authority on Revenue-Producing Transactions | |||||||||||||||||||||||||
Taxes included in DPL’s gross revenues were $17 million, $15 million and $18 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Accounting for Derivatives | ' | ||||||||||||||||||||||||
Accounting for Derivatives | |||||||||||||||||||||||||
DPL uses derivative instruments primarily to reduce natural gas commodity price volatility and to limit its customers’ exposure to natural gas price fluctuations under a hedging program approved by the Delaware Public Service Commission (DPSC). Derivatives are recorded in the balance sheets as Derivative assets or Derivative liabilities and measured at fair value. DPL enters physical natural gas contracts as part of the hedging program that qualify as normal purchases or normal sales, which are not required to be recorded in the financial statements until settled. DPL’s capacity contracts are not classified as derivatives. Changes in the fair value of derivatives that are not designated as cash flow hedges are reflected in income. | |||||||||||||||||||||||||
All premiums paid and other transaction costs incurred as part of DPL’s natural gas hedging activity, in addition to all gains and losses related to hedging activities, are fully recoverable through the fuel adjustment clause approved by the DPSC, and are deferred under Financial Accounting Standards Board (FASB) guidance on regulated operations (Accounting Standards Codification (ASC) 980) until recovered. | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
DPL, as an indirect subsidiary of Pepco Holdings, is included in the consolidated federal income tax return of PHI. Federal income taxes are allocated to DPL based upon the taxable income or loss amounts, determined on a separate return basis. | |||||||||||||||||||||||||
The financial statements include current and deferred income taxes. Current income taxes represent the amount of tax expected to be reported on DPL’s state income tax returns and the amount of federal income tax allocated from Pepco Holdings. | |||||||||||||||||||||||||
Deferred income tax assets and liabilities represent the tax effects of temporary differences between the financial statement basis and tax basis of existing assets and liabilities, and they are measured using presently enacted tax rates. The portion of DPL’s deferred tax liability applicable to its utility operations that has not been recovered from utility customers represents income taxes recoverable in the future and is included in Regulatory assets on the balance sheets. See Note (7), “Regulatory Matters,” for additional information. | |||||||||||||||||||||||||
Deferred income tax expense generally represents the net change during the reporting period in the net deferred tax liability and deferred recoverable income taxes. | |||||||||||||||||||||||||
DPL recognizes interest on underpayments and overpayments of income taxes, interest on uncertain tax positions, and tax-related penalties in income tax expense. | |||||||||||||||||||||||||
Investment tax credits are being amortized to income over the useful lives of the related property. | |||||||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
Cash and cash equivalents include cash on hand, cash invested in money market funds and commercial paper held with original maturities of three months or less. Additionally, deposits in PHI’s money pool, which DPL and certain other PHI subsidiaries use to manage short-term cash management requirements, are considered cash equivalents. Deposits in the money pool are guaranteed by PHI. PHI deposits funds in the money pool to the extent that the pool has insufficient funds to meet the needs of its participants, which may require PHI to borrow funds for deposit from external sources. | |||||||||||||||||||||||||
Accounts Receivable and Allowance for Uncollectible Accounts | ' | ||||||||||||||||||||||||
Accounts Receivable and Allowance for Uncollectible Accounts | |||||||||||||||||||||||||
DPL’s Accounts receivable balance primarily consists of customer accounts receivable arising from the sale of goods and services to customers within its service territory, other accounts receivable, and accrued unbilled revenue. Accrued unbilled revenue represents revenue earned in the current period but not billed to the customer until a future date (usually within one month after the receivable is recorded). | |||||||||||||||||||||||||
DPL maintains an allowance for uncollectible accounts and changes in the allowance are recorded as an adjustment to Other operation and maintenance expense in the statements of income. DPL determines the amount of the allowance based on specific identification of material amounts at risk by customer and maintains a reserve based on its historical collection experience. The adequacy of this allowance is assessed on a quarterly basis by evaluating all known factors such as the aging of the receivables, historical collection experience, the economic and competitive environment and changes in the creditworthiness of its customers. Accounts receivable are written off in the period in which the receivable is deemed uncollectible and collection efforts have been exhausted. Recoveries of Accounts receivable previously written off are recorded when it is probable they will be recovered. Although DPL believes its allowance is adequate, it cannot anticipate with any certainty the changes in the financial condition of its customers. As a result, DPL records adjustments to the allowance for uncollectible accounts in the period in which the new information that requires an adjustment to the reserve becomes known. | |||||||||||||||||||||||||
Inventories | ' | ||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||
Included in Inventories are transmission and distribution materials and supplies and natural gas. DPL utilizes the weighted average cost method of accounting for inventory items. Under this method, an average price is determined for the quantity of units acquired at each price level and is applied to the ending quantity to calculate the total ending inventory balance. Materials and supplies are recorded in Inventory when purchased and then expensed or capitalized to plant, as appropriate, when installed. | |||||||||||||||||||||||||
The cost of natural gas, including transportation costs, is included in Inventory when purchased and charged to Gas purchased expense when used. | |||||||||||||||||||||||||
Goodwill | ' | ||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
Goodwill represents the excess of the purchase price of an acquisition over the fair value of the net assets acquired at the acquisition date. DPL tests its goodwill for impairment annually as of November 1 and whenever an event occurs or circumstances change in the interim that would more likely than not (that is, a greater than 50% chance) reduce the estimated fair value of DPL below the carrying amount of its net assets. Factors that may result in an interim impairment test include, but are not limited to: a change in the identified reporting unit; an adverse change in business conditions; an adverse regulatory action; or an impairment of DPL’s long-lived assets. DPL performed its most recent annual impairment test as of November 1, 2013, and its goodwill was not impaired as described in Note (6), “Goodwill.” | |||||||||||||||||||||||||
Regulatory Assets and Regulatory Liabilities | ' | ||||||||||||||||||||||||
Regulatory Assets and Regulatory Liabilities | |||||||||||||||||||||||||
Certain aspects of DPL’s business are subject to regulation by the DPSC and the Maryland Public Service Commission (MPSC). The transmission of electricity by DPL is regulated by the Federal Energy Regulatory Commission (FERC). DPL’s interstate transportation and wholesale sale of natural gas are regulated by FERC. | |||||||||||||||||||||||||
Based on the regulatory framework in which it has operated, DPL has historically applied, and in connection with its transmission and distribution business continues to apply, FASB guidance on regulated operations (ASC 980). The guidance allows regulated entities, in appropriate circumstances, to defer the income statement impact of certain costs that are expected to be recovered in future rates through the establishment of regulatory assets and defer certain revenues that are expected to be refunded to customers through the establishment of regulatory liabilities. Management’s assessment of the probability of recovery of regulatory assets requires judgment and interpretation of laws, regulatory commission orders and other factors. If management subsequently determines, based on changes in facts or circumstances, that a regulatory asset is not probable of recovery, the regulatory asset would be eliminated through a charge to earnings. | |||||||||||||||||||||||||
Effective June 2007, the MPSC approved a bill stabilization adjustment (BSA) mechanism for retail customers. For customers to whom the BSA applies, DPL recognizes distribution revenue based on an approved distribution charge per customer. From a revenue recognition standpoint, the BSA has the effect of decoupling the distribution revenue recognized in a reporting period from the amount of power delivered during that period. Pursuant to this mechanism, DPL recognizes either (i) a positive adjustment equal to the amount by which revenue from Maryland retail distribution sales falls short of the revenue that DPL is entitled to earn based on the approved distribution charge per customer, or (ii) a negative adjustment equal to the amount by which revenue from such distribution sales exceeds the revenue that DPL is entitled to earn based on the approved distribution charge per customer (a Revenue Decoupling Adjustment). A net positive Revenue Decoupling Adjustment is recorded as a regulatory asset and a net negative Revenue Decoupling Adjustment is recorded as a regulatory liability. | |||||||||||||||||||||||||
Leasing Activities | ' | ||||||||||||||||||||||||
Leasing Activities | |||||||||||||||||||||||||
DPL’s lease transactions include plant, office space, equipment, software and vehicles. In accordance with FASB guidance on leases (ASC 840), these leases are classified as operating leases. | |||||||||||||||||||||||||
An operating lease in which DPL is the lessee generally results in a level income statement charge over the term of the lease, reflecting the rental payments required by the lease agreement. If rental payments are not made on a straight-line basis, DPL’s policy is to recognize rent expense on a straight-line basis over the lease term unless another systematic and rational allocation basis is more representative of the time pattern in which the leased property is physically employed. | |||||||||||||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||
Property, plant and equipment is recorded at original cost, including labor, materials, asset retirement costs and other direct and indirect costs including capitalized interest. The carrying value of Property, plant and equipment is evaluated for impairment whenever circumstances indicate the carrying value of those assets may not be recoverable. Upon retirement, the cost of regulated property, net of salvage, is charged to Accumulated depreciation. For additional information regarding the treatment of asset retirement obligations, see the “Asset Removal Costs” section included in this Note. | |||||||||||||||||||||||||
The annual provision for depreciation on electric and natural gas property, plant and equipment is computed on a straight-line basis using composite rates by classes of depreciable property. Accumulated depreciation is charged with the cost of depreciable property retired, less salvage and other recoveries. Non-operating and other property is generally depreciated on a straight-line basis over the useful lives of the assets. The system-wide composite annual depreciation rates for the years ended December 31, 2013, 2012 and 2011 for DPL’s property were approximately 2.6%, 2.7% and 2.8%, respectively. | |||||||||||||||||||||||||
Long-Lived Asset Impairment Evaluation | ' | ||||||||||||||||||||||||
Long-Lived Asset Impairment Evaluation | |||||||||||||||||||||||||
DPL evaluates certain long-lived assets to be held and used (for example, equipment and real estate) for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Examples of such events or changes include a significant decrease in the market price of a long-lived asset or a significant adverse change in the manner in which an asset is being used or its physical condition. A long-lived asset to be held and used is written down to its estimated fair value if the expected future undiscounted cash flow from the asset is less than its carrying value. | |||||||||||||||||||||||||
For long-lived assets that can be classified as assets to be disposed of by sale, an impairment loss is recognized to the extent that the assets’ carrying value exceeds its estimated fair value including costs to sell. | |||||||||||||||||||||||||
Capitalized Interest and Allowance for Funds Used During Construction | ' | ||||||||||||||||||||||||
Capitalized Interest and Allowance for Funds Used During Construction | |||||||||||||||||||||||||
In accordance with FASB guidance on regulated operations (ASC 980), utilities can capitalize the capital costs of financing the construction of plant and equipment as Allowance for Funds Used During Construction (AFUDC). This results in the debt portion of AFUDC being recorded as a reduction of Interest expense and the equity portion of AFUDC being recorded as an increase to Other income in the accompanying statements of income. | |||||||||||||||||||||||||
DPL recorded AFUDC for borrowed funds of $2 million, $2 million and $1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
DPL recorded amounts for the equity component of AFUDC of $2 million, $3 million and $3 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Amortization of Debt Issuance and Reacquisition Costs | ' | ||||||||||||||||||||||||
Amortization of Debt Issuance and Reacquisition Costs | |||||||||||||||||||||||||
DPL defers and amortizes debt issuance costs and long-term debt premiums and discounts over the lives of the respective debt issuances. When refinancing or redeeming existing debt, any unamortized premiums, discounts and debt issuance costs, as well as debt redemption costs, are classified as Regulatory assets and are amortized generally over the life of the original issue. | |||||||||||||||||||||||||
Asset Removal Costs | ' | ||||||||||||||||||||||||
Asset Removal Costs | |||||||||||||||||||||||||
In accordance with FASB guidance, asset removal costs are recorded as regulatory liabilities. At December 31, 2013 and 2012, $173 million and $202 million, respectively, of asset removal costs are included in Regulatory liabilities in the accompanying balance sheets. | |||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | ' | ||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | |||||||||||||||||||||||||
Pepco Holdings sponsors the PHI Retirement Plan, a non-contributory, defined benefit pension plan that covers substantially all employees of DPL and certain employees of other Pepco Holdings subsidiaries. Pepco Holdings also provides supplemental retirement benefits to certain eligible executives and key employees through nonqualified retirement plans and provides certain postretirement health care and life insurance benefits for eligible retired employees. | |||||||||||||||||||||||||
The PHI Retirement Plan is accounted for in accordance with FASB guidance on retirement benefits (ASC 715). | |||||||||||||||||||||||||
Reclassifications and Adjustments | ' | ||||||||||||||||||||||||
Reclassifications and Adjustments | |||||||||||||||||||||||||
Certain prior period amounts have been reclassified in order to conform to the current period presentation. The following adjustments have been recorded and are not considered material individually or in the aggregate to either the current period or prior period financial results: | |||||||||||||||||||||||||
Natural Gas Operating Revenue Adjustment | |||||||||||||||||||||||||
During 2012, DPL recorded an adjustment to correct an overstatement of unbilled revenue in its natural gas distribution business related to prior periods. The adjustment resulted in a decrease in Operating revenue of $1 million for the year ended December 31, 2012. | |||||||||||||||||||||||||
Default Electricity Supply Revenue and Costs Adjustments | |||||||||||||||||||||||||
During 2011, DPL recorded adjustments to correct certain errors associated with the accounting for Default Electricity Supply revenue and costs. These adjustments primarily arose from the under-recognition of allowed returns on the cost of working capital and resulted in a pre-tax decrease in Other operation and maintenance expense of $11 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
Dividend Restrictions | ' | ||||||||||||||||||||||||
Dividend Restrictions | |||||||||||||||||||||||||
All of DPL’s shares of outstanding common stock are held by Conectiv, its parent company. In addition to its future financial performance, the ability of DPL to pay dividends to its parent company is subject to limits imposed by: (i) state corporate laws, which impose limitations on the funds that can be used to pay dividends, and (ii) the prior rights of holders of existing and future preferred stock, mortgage bonds and other long-term debt issued by DPL and any other restrictions imposed in connection with the incurrence of liabilities. DPL has no shares of preferred stock outstanding. DPL had approximately $637 million and $578 million of retained earnings available for payment of common stock dividends at December 31, 2013 and 2012, respectively. These amounts represent the total retained earnings balances at those dates. | |||||||||||||||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||||||||||
Consolidation Policy | ' | ||||||||||||||||||||||||
Consolidation Policy | |||||||||||||||||||||||||
The accompanying consolidated financial statements include the accounts of ACE and its wholly owned subsidiary Atlantic City Electric Transition Funding, LLC (ACE Funding). All intercompany balances and transactions between subsidiaries have been eliminated. ACE uses the equity method to report investments, corporate joint ventures, partnerships, and affiliated companies where it holds an interest and can exercise significant influence over the operations and policies of the entity. Certain transmission and other facilities currently held are consolidated in proportion to ACE’s percentage interest in the facility. | |||||||||||||||||||||||||
Consolidation of Variable Interest Entities | ' | ||||||||||||||||||||||||
Consolidation of Variable Interest Entities | |||||||||||||||||||||||||
ACE assesses its contractual arrangements with variable interest entities to determine whether it is the primary beneficiary and thereby has to consolidate the entities in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 810. The guidance addresses conditions under which an entity should be consolidated based upon variable interests rather than voting interests. See Note (16), “Variable Interest Entities,” for additional information. | |||||||||||||||||||||||||
Use of Estimates | ' | ||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in the consolidated financial statements and accompanying notes. Although ACE believes that its estimates and assumptions are reasonable, they are based upon information available to management at the time the estimates are made. Actual results may differ significantly from these estimates. | |||||||||||||||||||||||||
Significant matters that involve the use of estimates include the assessment of contingencies, the calculation of future cash flows and fair value amounts for use in asset impairment evaluations, fair value calculations for derivative instruments, pension and other postretirement benefits assumptions, the assessment of the probability of recovery of regulatory assets, accrual of storm restoration costs, accrual of unbilled revenue, recognition of changes in network service transmission rates for prior service year costs, accrual of loss contingency liabilities for general and auto liability claims, and income tax provisions and reserves. Additionally, ACE is subject to legal, regulatory, and other proceedings and claims that arise in the ordinary course of its business. ACE records an estimated liability for these proceedings and claims when it is probable that a loss has been incurred and the loss is reasonably estimable. | |||||||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
ACE recognizes revenue upon distribution of electricity to its customers, including unbilled revenue for electricity delivered but not yet billed. ACE’s unbilled revenue was $36 million and $39 million as of December 31, 2012 and 2011, respectively, and these amounts are included in Accounts receivable. ACE calculates unbilled revenue using an output-based methodology. This methodology is based on the supply of electricity intended for distribution to customers. The unbilled revenue process requires management to make assumptions and judgments about input factors such as customer sales mix, temperature, and estimated line losses (estimates of electricity expected to be lost in the process of its transmission and distribution to customers). The assumptions and judgments are inherently uncertain and susceptible to change from period to period, and if the actual results differ from the projected results, the impact could be material. | |||||||||||||||||||||||||
Taxes related to the consumption of electricity by its customers are a component of ACE’s tariffs and, as such, are billed to customers and recorded in Operating revenue. Accruals for the remittance of these taxes by ACE are recorded in Other taxes. | |||||||||||||||||||||||||
Taxes Assessed by a Governmental Authority on Revenue-Producing Transactions | ' | ||||||||||||||||||||||||
Taxes Assessed by a Governmental Authority on Revenue-Producing Transactions | |||||||||||||||||||||||||
Taxes included in ACE’s gross revenues were $11 million, $15 million and $22 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Accounting for Derivatives | ' | ||||||||||||||||||||||||
Accounting for Derivatives | |||||||||||||||||||||||||
ACE began applying derivative accounting to two of its Standard Offer Capacity Agreements (SOCAs), as of June 30, 2012 because the generators cleared the 2015-2016 PJM Interconnection, LLC (PJM) capacity auction in May 2012. Changes in the fair value of the derivatives embedded in the SOCAs are deferred as regulatory assets or liabilities because the New Jersey Board of Public Utilities (NJBPU) has ordered that ACE is obligated to distribute to or recover from its distribution customers, all payments received or made by ACE, respectively, under the SOCAs. See Note (6), “Regulatory Matters,” for additional information on the SOCAs. | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
ACE, as an indirect subsidiary of Pepco Holdings, is included in the consolidated federal income tax return of PHI. Federal income taxes are allocated to ACE based upon the taxable income or loss amounts, determined on a separate return basis. | |||||||||||||||||||||||||
The consolidated financial statements include current and deferred income taxes. Current income taxes represent the amount of tax expected to be reported on ACE’s state income tax returns and the amount of federal income tax allocated from Pepco Holdings. | |||||||||||||||||||||||||
Deferred income tax assets and liabilities represent the tax effects of temporary differences between the financial statement basis and tax basis of existing assets and liabilities, and they are measured using presently enacted tax rates. The portion of ACE’s deferred tax liability applicable to its utility operations that has not been recovered from utility customers represents income taxes recoverable in the future and is included in Regulatory assets on the consolidated balance sheets. See Note (6), “Regulatory Matters,” for additional information. | |||||||||||||||||||||||||
Deferred income tax expense generally represents the net change during the reporting period in the net deferred tax liability and deferred recoverable income taxes. | |||||||||||||||||||||||||
ACE recognizes interest on underpayments and overpayments of income taxes, interest on uncertain tax positions, and tax-related penalties in income tax expense. | |||||||||||||||||||||||||
Investment tax credits are being amortized to income over the useful lives of the related property. | |||||||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
Cash and cash equivalents include cash on hand, cash invested in money market funds and commercial paper held with original maturities of three months or less. Additionally, deposits in PHI’s money pool, which ACE and certain other PHI subsidiaries use to manage short-term cash management requirements, are considered cash equivalents. Deposits in the money pool are guaranteed by PHI. PHI deposits funds in the money pool to the extent that the pool has insufficient funds to meet the needs of its participants, which may require PHI to borrow funds for deposit from external sources. | |||||||||||||||||||||||||
Restricted Cash Equivalents | ' | ||||||||||||||||||||||||
Restricted Cash Equivalents | |||||||||||||||||||||||||
The Restricted cash equivalents included in Current assets and the Restricted cash equivalents included in Other assets consist of (i) cash held as collateral that is restricted from use for general corporate purposes and (ii) cash equivalents that are specifically segregated based on management’s intent to use such cash equivalents for a particular purpose. The classification as current or non-current conforms to the classification of the related liabilities. | |||||||||||||||||||||||||
Accounts Receivable and Allowance for Uncollectible Accounts | ' | ||||||||||||||||||||||||
Accounts Receivable and Allowance for Uncollectible Accounts | |||||||||||||||||||||||||
ACE’s Accounts receivable balance primarily consists of customer accounts receivable arising from the sale of goods and services to customers within its service territories, other accounts receivable, and accrued unbilled revenue. Accrued unbilled revenue represents revenue earned in the current period but not billed to the customer until a future date (usually within one month after the receivable is recorded). | |||||||||||||||||||||||||
ACE maintains an allowance for uncollectible accounts and changes in the allowance are recorded as an adjustment to Other operation and maintenance expense in the consolidated statements of income. ACE determines the amount of allowance based on specific identification of material amounts at risk by customer and maintains a reserve based on its historical collection experience. The adequacy of this allowance is assessed on a quarterly basis by evaluating all known factors such as the aging of the receivables, historical collection experience, the economic and competitive environment and changes in the creditworthiness of its customers. Accounts receivable are written off in the period in which the receivable is deemed uncollectible and collection efforts have been exhausted. Recoveries of Accounts receivable previously written off are recorded when it is probable they will be recovered. Although ACE believes its allowance is adequate, it cannot anticipate with any certainty the changes in the financial condition of its customers. As a result, ACE records adjustments to the allowance for uncollectible accounts in the period in which the new information that requires an adjustment to the reserve becomes known. | |||||||||||||||||||||||||
Inventories | ' | ||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||
Included in inventories are transmission and distribution materials and supplies. ACE utilizes the weighted average cost method of accounting for inventory items. Under this method, an average price is determined for the quantity of units acquired at each price level and is applied to the ending quantity to calculate the total ending inventory balance. Materials and supplies are recorded in Inventory when purchased and then expensed or capitalized to plant, as appropriate, when installed. | |||||||||||||||||||||||||
Regulatory Assets and Regulatory Liabilities | ' | ||||||||||||||||||||||||
Regulatory Assets and Regulatory Liabilities | |||||||||||||||||||||||||
Certain aspects of ACE’s business are subject to regulation by the NJBPU. The transmission of electricity by ACE is regulated by the Federal Energy Regulatory Commission (FERC). | |||||||||||||||||||||||||
Based on the regulatory framework in which it has operated, ACE has historically applied, and in connection with its transmission and distribution business continues to apply, FASB guidance on regulated operations (ASC 980). The guidance allows regulated entities, in appropriate circumstances, to defer the income statement impact of certain costs that are expected to be recovered in future rates through the establishment of regulatory assets and defer certain revenues that are expected to be refunded to customers through the establishment of regulatory liabilities. Management’s assessment of the probability of recovery of regulatory assets requires judgment and interpretation of laws, regulatory commission orders and other factors. If management subsequently determines, based on changes in facts or circumstances, that a regulatory asset is not probable of recovery, the regulatory asset would be eliminated through a charge to earnings. | |||||||||||||||||||||||||
Leasing Activities | ' | ||||||||||||||||||||||||
Leasing Activities | |||||||||||||||||||||||||
ACE’s lease transactions include plant, office space, equipment, software and vehicles. In accordance with FASB guidance on leases (ASC 840), these leases are classified as operating leases. | |||||||||||||||||||||||||
An operating lease in which ACE is the lessee generally results in a level income statement charge over the term of the lease, reflecting the rental payments required by the lease agreement. If rental payments are not made on a straight-line basis, ACE’s policy is to recognize rent expense on a straight-line basis over the lease term unless another systematic and rational allocation basis is more representative of the time pattern in which the leased property is physically employed. | |||||||||||||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||
Property, plant and equipment is recorded at original cost, including labor, materials, asset retirement costs and other direct and indirect costs, including capitalized interest. The carrying value of Property, plant and equipment is evaluated for impairment whenever circumstances indicate the carrying value of those assets may not be recoverable. Upon retirement, the cost of regulated property, net of salvage, is charged to accumulated depreciation. | |||||||||||||||||||||||||
The annual provision for depreciation on electric property, plant and equipment is computed on a straight-line basis using composite rates by classes of depreciable property. Accumulated depreciation is charged with the cost of depreciable property retired, less salvage and other recoveries. Non-operating and other property is generally depreciated on a straight-line basis over the useful lives of the assets. The system-wide composite annual depreciation rates for the years ended December 31, 2013, 2012 and 2011 for ACE’s property were approximately 2.8%, 3.0% and 3.0%, respectively. | |||||||||||||||||||||||||
In 2010, ACE was awarded $19 million from the U.S. Department of Energy (DOE) to fund a portion of the costs incurred for the implementation of direct load control, distribution automation and communications infrastructure in its New Jersey service territory. ACE has elected to recognize the award proceeds as a reduction in the carrying value of the assets acquired rather than grant income over the service period. | |||||||||||||||||||||||||
Long-Lived Asset Impairment Evaluation | ' | ||||||||||||||||||||||||
Long-Lived Asset Impairment Evaluation | |||||||||||||||||||||||||
ACE evaluates certain long-lived assets to be held and used (for example, equipment and real estate) for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Examples of such events or changes include a significant decrease in the market price of a long-lived asset or a significant adverse change in the manner in which an asset is being used or its physical condition. A long-lived asset to be held and used is written down to its estimated fair value if the expected future undiscounted cash flow from the asset is less than its carrying value. | |||||||||||||||||||||||||
For long-lived assets that can be classified as assets to be disposed of by sale, an impairment loss is recognized to the extent that the asset’s carrying value exceeds its estimated fair value including costs to sell. | |||||||||||||||||||||||||
Capitalized Interest and Allowance for Funds Used During Construction | ' | ||||||||||||||||||||||||
Capitalized Interest and Allowance for Funds Used During Construction | |||||||||||||||||||||||||
In accordance with FASB guidance on regulated operations (ASC 980), utilities can capitalize the capital costs of financing the construction of plant and equipment as Allowance for Funds Used During Construction (AFUDC). This results in the debt portion of AFUDC being recorded as a reduction of Interest expense and the equity portion of AFUDC being recorded as an increase to Other income in the accompanying consolidated statements of income. | |||||||||||||||||||||||||
ACE recorded AFUDC for borrowed funds of less than $1 million for the year ended December 31, 2013, $2 million for the year ended December 31, 2012 and $2 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
ACE recorded amounts for the equity component of AFUDC of less than $1 million for the year ended December 31, 2013, $3 million for the year ended December 31, 2012 and less than $1 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
Amortization of Debt Issuance and Reacquisition Costs | ' | ||||||||||||||||||||||||
Amortization of Debt Issuance and Reacquisition Costs | |||||||||||||||||||||||||
ACE defers and amortizes debt issuance costs and long-term debt premiums and discounts over the lives of the respective debt issuances. When refinancing or redeeming existing debt, any unamortized premiums, discounts and debt issuance costs, as well as debt redemption costs, are classified as regulatory assets and are amortized generally over the life of the original issue. | |||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | ' | ||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | |||||||||||||||||||||||||
Pepco Holdings sponsors the PHI Retirement Plan, a non-contributory, defined benefit pension plan that covers substantially all employees of ACE and certain employees of other Pepco Holdings subsidiaries. Pepco Holdings also provides supplemental retirement benefits to certain eligible executives and key employees through nonqualified retirement plans and provides certain postretirement health care and life insurance benefits for eligible retired employees. | |||||||||||||||||||||||||
The PHI Retirement Plan is accounted for in accordance with FASB guidance on retirement benefits (ASC 715). | |||||||||||||||||||||||||
Reclassifications and Adjustments | ' | ||||||||||||||||||||||||
Reclassifications and Adjustments | |||||||||||||||||||||||||
Certain prior period amounts have been reclassified in order to conform to the current period presentation. The following adjustments have been recorded and are not considered material individually or in the aggregate to either the current period or prior period financial results: | |||||||||||||||||||||||||
Deferred Electric Service Costs Adjustments | |||||||||||||||||||||||||
In 2012, ACE recorded an adjustment to correct errors associated with its calculation of deferred electric service costs. This adjustment resulted in an increase of $3 million to deferred electric service costs, all of which relates to periods prior to 2012. | |||||||||||||||||||||||||
Income Tax Expense | |||||||||||||||||||||||||
During 2011, ACE completed a reconciliation of its deferred taxes associated with certain regulatory assets and recorded adjustments which resulted in an increase to income tax expense of $1 million for the year ended December 31, 2011. | |||||||||||||||||||||||||
Dividend Restrictions | ' | ||||||||||||||||||||||||
Dividend Restrictions | |||||||||||||||||||||||||
All of ACE’s shares of outstanding common stock are held by Conectiv, its parent company. In addition to its future financial performance, the ability of ACE to pay dividends to its parent company is subject to limits imposed by: (i) state corporate laws, which impose limitations on the funds that can be used to pay dividends and the regulatory requirement that ACE obtain the prior approval of the NJBPU before dividends can be paid if its equity as a percent of its total capitalization, excluding securitization debt, falls below 30%; (ii) the prior rights of holders of existing and future preferred stock, mortgage bonds and other long-term debt issued by ACE and any other restrictions imposed in connection with the incurrence of liabilities; and (iii) certain provisions of the charter of ACE which impose restrictions on payment of common stock dividends for the benefit of preferred stockholders. Currently, the restriction in the ACE charter does not limit its ability to pay common stock dividends. ACE had approximately $190 million and $200 million of retained earnings available for payment of common stock dividends at December 31, 2013 and 2012, respectively. These amounts represent the total retained earnings balances at those dates. | |||||||||||||||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||||||||||
Use of Estimates | ' | ||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. Although Pepco believes that its estimates and assumptions are reasonable, they are based upon information available to management at the time the estimates are made. Actual results may differ significantly from these estimates. | |||||||||||||||||||||||||
Significant matters that involve the use of estimates include the assessment of contingencies, the calculation of future cash flows and fair value amounts for use in asset impairment evaluations, pension and other postretirement benefits assumptions, the assessment of the probability of recovery of regulatory assets, accrual of storm restoration costs, accrual of unbilled revenue, recognition of changes in network service transmission rates for prior service year costs, accrual of loss contingency liabilities for general and auto liability claims and income tax provisions and reserves. Additionally, Pepco is subject to legal, regulatory, and other proceedings and claims that arise in the ordinary course of its business. Pepco records an estimated liability for these proceedings and claims when it is probable that a loss has been incurred and the loss is reasonably estimable. | |||||||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
Pepco recognizes revenue upon distribution of electricity to its customers, including unbilled revenue for services rendered, but not yet billed. Pepco’s unbilled revenue was $80 million and $81 million as of December 31, 2013 and 2012, respectively, and these amounts are included in Accounts receivable. Pepco calculates unbilled revenue using an output-based methodology. This methodology is based on the supply of electricity intended for distribution to customers. The unbilled revenue process requires management to make assumptions and judgments about input factors such as customer sales mix, temperature, and estimated line losses (estimates of electricity expected to be lost in the process of its transmission and distribution to customers). The assumptions and judgments are inherently uncertain and susceptible to change from period to period, and if actual results differ from projected results, the impact could be material. | |||||||||||||||||||||||||
Taxes related to the consumption of electricity by its customers, such as fuel, energy, or other similar taxes, are components of Pepco’s tariffs and, as such, are billed to customers and recorded in Operating revenue. Accruals for the remittance of these taxes by Pepco are recorded in Other taxes. | |||||||||||||||||||||||||
Taxes Assessed by a Governmental Authority on Revenue-Producing Transactions | ' | ||||||||||||||||||||||||
Taxes Assessed by a Governmental Authority on Revenue-Producing Transactions | |||||||||||||||||||||||||
Taxes included in Pepco’s gross revenues were $318 million, $324 million and $338 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
Pepco, as a direct subsidiary of Pepco Holdings, is included in the consolidated federal income tax return of PHI. Federal income taxes are allocated to Pepco based upon the taxable income or loss amounts, determined on a separate return basis. | |||||||||||||||||||||||||
The financial statements include current and deferred income taxes. Current income taxes represent the amount of tax expected to be reported on Pepco’s state income tax returns and the amount of federal income tax allocated from Pepco Holdings. | |||||||||||||||||||||||||
Deferred income tax assets and liabilities represent the tax effects of temporary differences between the financial statement basis and tax basis of existing assets and liabilities and they are measured using presently enacted tax rates. The portion of Pepco’s deferred tax liability applicable to its utility operations that has not been recovered from utility customers represents income taxes recoverable in the future and is included in Regulatory assets on the balance sheets. See Note (6), “Regulatory Matters,” for additional information. | |||||||||||||||||||||||||
Deferred income tax expense generally represents the net change during the reporting period in the net deferred tax liability and deferred recoverable income taxes. | |||||||||||||||||||||||||
Pepco recognizes interest on underpayments and overpayments of income taxes, interest on uncertain tax positions, and tax-related penalties in income tax expense. | |||||||||||||||||||||||||
Investment tax credits are being amortized to income over the useful lives of the related property. | |||||||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
Cash and cash equivalents include cash on hand, cash invested in money market funds and commercial paper held with original maturities of three months or less. Additionally, deposits in PHI’s money pool, which Pepco and certain other PHI subsidiaries use to manage short-term cash management requirements, are considered cash equivalents. Deposits in the money pool are guaranteed by PHI. PHI deposits funds in the money pool to the extent that the pool has insufficient funds to meet the needs of its participants, which may require PHI to borrow funds for deposit from external sources. | |||||||||||||||||||||||||
Restricted Cash Equivalents | ' | ||||||||||||||||||||||||
Restricted Cash Equivalents | |||||||||||||||||||||||||
The Restricted cash equivalents included in Current assets consist of (i) cash held as collateral that is restricted from use for general corporate purposes and (ii) cash equivalents that are specifically segregated based on management’s intent to use such cash equivalents for a particular purpose. The classification as current conforms to the classification of the related liabilities. | |||||||||||||||||||||||||
Accounts Receivable and Allowance for Uncollectible Accounts | ' | ||||||||||||||||||||||||
Accounts Receivable and Allowance for Uncollectible Accounts | |||||||||||||||||||||||||
Pepco’s Accounts receivable balance primarily consists of customer accounts receivable arising from the sale of goods and services to customers within its service territory, other accounts receivable, and accrued unbilled revenue. Accrued unbilled revenue represents revenue earned in the current period but not billed to the customer until a future date (usually within one month after the receivable is recorded). | |||||||||||||||||||||||||
Pepco maintains an allowance for uncollectible accounts and changes in the allowance are recorded as an adjustment to Other operation and maintenance expense in the statements of income. Pepco determines the amount of the allowance based on specific identification of material amounts at risk by customer and maintains a reserve based on its historical collection experience. The adequacy of this allowance is assessed on a quarterly basis by evaluating all known factors such as the aging of the receivables, historical collection experience, the economic and competitive environment and changes in the creditworthiness of its customers. Accounts receivable are written off in the period in which the receivable is deemed uncollectible and collection efforts have been exhausted. Recoveries of Accounts receivable previously written off are recorded when it is probable they will be recovered. Although Pepco believes its allowance is adequate, it cannot anticipate with any certainty the changes in the financial condition of its customers. As a result, Pepco records adjustments to the allowance for uncollectible accounts in the period in which the new information that requires an adjustment to the reserve becomes known. | |||||||||||||||||||||||||
Inventories | ' | ||||||||||||||||||||||||
Inventories | |||||||||||||||||||||||||
Included in Inventories are transmission and distribution materials and supplies. Pepco utilizes the weighted average cost method of accounting for inventory items. Under this method, an average price is determined for the quantity of units acquired at each price level and is applied to the ending quantity to calculate the total ending inventory balance. Materials and supplies are recorded in Inventory when purchased and then expensed or capitalized to plant, as appropriate, when installed. | |||||||||||||||||||||||||
Regulatory Assets and Regulatory Liabilities | ' | ||||||||||||||||||||||||
Regulatory Assets and Regulatory Liabilities | |||||||||||||||||||||||||
Pepco is regulated by the Maryland Public Service Commission (MPSC) and the District of Columbia Public Service Commission (DCPSC). The transmission of electricity by Pepco is regulated by the Federal Energy Regulatory Commission (FERC). | |||||||||||||||||||||||||
Based on the regulatory framework in which it has operated, Pepco has historically applied, and in connection with its transmission and distribution business continues to apply, the Financial Accounting Standards Board (FASB) guidance on regulated operations (Accounting Standards Codification (ASC) 980). The guidance allows regulated entities, in appropriate circumstances, to defer the income statement impact of certain costs that are expected to be recovered in future rates through the establishment of regulatory assets and defer certain revenues that are expected to be refunded to customers through the establishment of regulatory liabilities. Management’s assessment of the probability of recovery of regulatory assets requires judgment and interpretation of laws, regulatory commission orders and other factors. If management subsequently determines, based on changes in facts or circumstances, that a regulatory asset is not probable of recovery, the regulatory asset would be eliminated through a charge to earnings. | |||||||||||||||||||||||||
Effective June 2007, the MPSC approved a bill stabilization adjustment (BSA) mechanism for retail customers. Effective November 2009, the DCPSC approved a BSA for retail customers. For customers to whom the BSA applies, Pepco recognizes distribution revenue based on an approved distribution charge per customer. From a revenue recognition standpoint, the BSA has the effect of decoupling the distribution revenue recognized in a reporting period from the amount of power delivered during that period. Pursuant to this mechanism, Pepco recognizes either (i) a positive adjustment equal to the amount by which revenue from Maryland and the District of Columbia retail distribution sales falls short of the revenue that Pepco is entitled to earn based on the approved distribution charge per customer, or (ii) a negative adjustment equal to the amount by which revenue from such distribution sales exceeds the revenue that Pepco is entitled to earn based on the approved distribution charge per customer (a Revenue Decoupling Adjustment). A net positive Revenue Decoupling Adjustment is recorded as a regulatory asset and a net negative Revenue Decoupling Adjustment is recorded as a regulatory liability. | |||||||||||||||||||||||||
Leasing Activities | ' | ||||||||||||||||||||||||
Leasing Activities | |||||||||||||||||||||||||
Pepco’s lease transactions include office space, equipment, software and vehicles. In accordance with FASB guidance on leases (ASC 840), these leases are classified as either operating leases or capital leases. | |||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||
An operating lease in which Pepco is the lessee generally results in a level income statement charge over the term of the lease, reflecting the rental payments required by the lease agreement. If rental payments are not made on a straight-line basis, Pepco’s policy is to recognize rent expense on a straight-line basis over the lease term unless another systematic and rational allocation basis is more representative of the time pattern in which the leased property is physically employed. | |||||||||||||||||||||||||
Capital Leases | |||||||||||||||||||||||||
For ratemaking purposes, capital leases in which Pepco is the lessee are treated as operating leases; therefore, in accordance with FASB guidance on regulated operations (ASC 980), the amortization of the leased asset is based on the recovery of rental payments through customer rates. Investments in equipment under capital leases are stated at cost, less accumulated depreciation. Depreciation is recorded on a straight-line basis over the equipment’s estimated useful life. | |||||||||||||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||||||||||
Property, plant and equipment is recorded at original cost, including labor, materials, asset retirement costs and other direct and indirect costs including capitalized interest. The carrying value of Property, plant and equipment is evaluated for impairment whenever circumstances indicate the carrying value of those assets may not be recoverable. Upon retirement, the cost of regulated property, net of salvage, is charged to Accumulated depreciation. For additional information regarding the treatment of asset removal obligations, see the “Asset Removal Costs” section included in this Note. | |||||||||||||||||||||||||
The annual provision for depreciation on electric property, plant and equipment is computed on a straight-line basis using composite rates by classes of depreciable property. Accumulated depreciation is charged with the cost of depreciable property retired, less salvage and other recoveries. Non-operating and other property is generally depreciated on a straight-line basis over the useful lives of the assets. The system-wide composite annual depreciation rates for the years ended December 31, 2013, 2012 and 2011 for Pepco’s property were approximately 2.2%, 2.5% and 2.6%, respectively. | |||||||||||||||||||||||||
In 2010, Pepco was awarded $149 million from the U.S. Department of Energy (DOE) to fund a portion of the costs incurred for the implementation of an advanced metering infrastructure system, direct load control, distribution automation and communications infrastructure in its Maryland and District of Columbia service territories. Pepco has elected to recognize the award proceeds as a reduction in the carrying value of the assets acquired rather than grant income over the service period. | |||||||||||||||||||||||||
Long-Lived Asset Impairment Evaluation | ' | ||||||||||||||||||||||||
Long-Lived Assets Impairment Evaluation | |||||||||||||||||||||||||
Pepco evaluates certain long-lived assets to be held and used (for example, equipment and real estate) for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Examples of such events or changes include a significant decrease in the market price of a long-lived asset or a significant adverse change in the manner in which an asset is being used or its physical condition. A long-lived asset to be held and used is written down to its estimated fair value if the expected future undiscounted cash flow from the asset is less than its carrying value. | |||||||||||||||||||||||||
For long-lived assets that can be classified as assets to be disposed of by sale, an impairment loss is recognized to the extent that the asset’s carrying value exceeds its estimated fair value including costs to sell. | |||||||||||||||||||||||||
Capitalized Interest and Allowance for Funds Used During Construction | ' | ||||||||||||||||||||||||
Capitalized Interest and Allowance for Funds Used During Construction | |||||||||||||||||||||||||
In accordance with FASB guidance on regulated operations (ASC 980), utilities can capitalize the capital costs of financing the construction of plant and equipment as Allowance for Funds Used During Construction (AFUDC). This results in the debt portion of AFUDC being recorded as a reduction of Interest expense and the equity portion of AFUDC being recorded as an increase to Other income in the accompanying statements of income. | |||||||||||||||||||||||||
Pepco recorded AFUDC for borrowed funds of $5 million, $4 million and $8 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Pepco recorded amounts for the equity component of AFUDC of $9 million, $8 million and $12 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Amortization of Debt Issuance and Reacquisition Costs | ' | ||||||||||||||||||||||||
Amortization of Debt Issuance and Reacquisition Costs | |||||||||||||||||||||||||
Pepco defers and amortizes debt issuance costs and long-term debt premiums and discounts over the lives of the respective debt issuances. When refinancing or redeeming existing debt, any unamortized premiums, discounts and debt issuance costs, as well as debt redemption costs, are classified as Regulatory assets and are amortized generally over the life of the new issue. | |||||||||||||||||||||||||
Asset Removal Costs | ' | ||||||||||||||||||||||||
Asset Removal Costs | |||||||||||||||||||||||||
In accordance with FASB guidance, asset removal costs are recorded as regulatory liabilities. At December 31, 2013 and 2012, $102 million and $122 million, respectively, of asset removal costs are included in Regulatory liabilities in the accompanying balance sheets. | |||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | ' | ||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | |||||||||||||||||||||||||
Pepco Holdings sponsors the PHI Retirement Plan, a non-contributory, defined benefit pension plan that covers substantially all employees of Pepco and certain employees of other Pepco Holdings subsidiaries. Pepco Holdings also provides supplemental retirement benefits to certain eligible executives and key employees through nonqualified retirement plans and provides certain postretirement health care and life insurance benefits for eligible retired employees. | |||||||||||||||||||||||||
The PHI Retirement Plan is accounted for in accordance with FASB guidance on retirement benefits (ASC 715). | |||||||||||||||||||||||||
Reclassifications and Adjustments | ' | ||||||||||||||||||||||||
Reclassifications and Adjustments | |||||||||||||||||||||||||
Certain prior period amounts have been reclassified in order to conform to the current period presentation. The following adjustments have been recorded and are not considered material individually or in the aggregate to either the current period or prior period financial results: | |||||||||||||||||||||||||
Income Tax Adjustments | |||||||||||||||||||||||||
During 2013, Pepco recorded certain adjustments to correct prior period errors related to income taxes. These adjustments resulted from the completion of additional analysis of deferred tax balances and resulted in an increase in Income tax expense of $4 million for the year ended December 31, 2013. | |||||||||||||||||||||||||
During 2011, Pepco recorded an adjustment to correct certain income tax errors related to prior periods associated with the interest on uncertain tax positions. The adjustment resulted in an increase in Income tax expense of $1 million for the year ended Decmeber 31, 2011. | |||||||||||||||||||||||||
Dividend Restrictions | ' | ||||||||||||||||||||||||
Dividend Restrictions | |||||||||||||||||||||||||
All of Pepco’s shares of outstanding common stock are held by PHI, its parent company. In addition to its future financial performance, the ability of Pepco to pay dividends to its parent company is subject to limits imposed by: (i) state corporate laws, which impose limitations on the funds that can be used to pay dividends, and (ii) the prior rights of holders of future preferred stock, if any, and existing and future mortgage bonds and other long-term debt issued by Pepco and any other restrictions imposed in connection with the incurrence of liabilities. Pepco has no shares of preferred stock outstanding. Pepco had approximately $992 million and $888 million of retained earnings available for payment of common stock dividends at December 31, 2013 and 2012, respectively. These amounts represent the total retained earnings balances at those dates. | |||||||||||||||||||||||||
Investment in Trust | ' | ||||||||||||||||||||||||
Investment in Trust | |||||||||||||||||||||||||
Represents assets held in a trust for the benefit of participants in the Pepco Owned Life Insurance plan. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Annual Depreciation Rates | ' | ||||||||||||||||||||||||
The table below provides system-wide composite annual depreciation rates for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
Transmission and | Generation | ||||||||||||||||||||||||
Distribution | |||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Pepco | 2.2 | % | 2.5 | % | 2.6 | % | — | — | — | ||||||||||||||||
DPL | 2.6 | % | 2.7 | % | 2.8 | % | — | — | — | ||||||||||||||||
ACE | 2.8 | % | 3 | % | 3 | % | — | — | — | ||||||||||||||||
Pepco Energy Services (a) | — | — | — | 0.4 | % | 6.4 | % | 10.2 | % | ||||||||||||||||
(a) | Percentages reflect accelerated depreciation of the Benning Road and Buzzard Point generating facilities retired during 2012. | ||||||||||||||||||||||||
Effects of Revision on PHI's Consolidated Balance Sheets | ' | ||||||||||||||||||||||||
The table below illustrates the effects of the revision on reported balances in PHI’s consolidated financial statements. | |||||||||||||||||||||||||
As Filed | Adjustment | As Revised | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Deferred income tax liabilities, net | $ | 3,176 | $ | 32 | $ | 3,208 | |||||||||||||||||||
Total deferred credits | 4,819 | (a) | 32 | 4,851 | |||||||||||||||||||||
Retained earnings | 1,109 | (32 | ) | 1,077 | |||||||||||||||||||||
Total equity | 4,446 | (32 | ) | 4,414 | |||||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||
Deferred income tax liabilities, net | $ | 2,863 | $ | 32 | $ | 2,895 | |||||||||||||||||||
Total deferred credits | 4,549 | (a) | 32 | 4,581 | |||||||||||||||||||||
Retained earnings | 1,072 | (32 | ) | 1,040 | |||||||||||||||||||||
Total equity | 4,336 | (32 | ) | 4,304 | |||||||||||||||||||||
December 31, 2010 | |||||||||||||||||||||||||
Retained earnings | $ | 1,059 | $ | (32 | ) | $ | 1,027 | ||||||||||||||||||
Total equity | 4,230 | (b) | (32 | ) | 4,198 | ||||||||||||||||||||
(a) | The amount of total deferred credits differs from the amount orginially reported in PHI’s 2012 Form 10-K due to certain reclassifications. | ||||||||||||||||||||||||
(b) | The amount represents total shareholders’ equity, which excludes a non-controlling interest of $6 million. |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Financial Information for Continuing Operations | ' | ||||||||||||||||
Segment financial information for continuing operations at and for the years ended December 31, 2013, 2012 and 2011, is as follows: | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
(millions of dollars) | |||||||||||||||||
Power | Pepco | Corporate | PHI | ||||||||||||||
Delivery | Energy | and | Consolidated | ||||||||||||||
Services | Other (a) | ||||||||||||||||
Operating Revenue | $ | 4,472 | $ | 203 | $ | (9 | ) | $ | 4,666 | ||||||||
Operating Expenses (b) | 3,828 | 201 | (e) | (31 | ) | 3,998 | |||||||||||
Operating Income | 644 | 2 | 22 | 668 | |||||||||||||
Interest Expense | 228 | 1 | 44 | 273 | |||||||||||||
Other Income | 28 | 3 | 3 | 34 | |||||||||||||
Income Tax Expense (c) | 155 | 1 | 163 | (d) | 319 | ||||||||||||
Net Income (Loss) from Continuing Operations | 289 | 3 | (182 | ) | 110 | ||||||||||||
Total Assets (excluding Assets Held for Disposition) | 13,027 | 335 | 1,485 | 14,847 | |||||||||||||
Construction Expenditures | $ | 1,194 | $ | 4 | $ | 112 | $ | 1,310 | |||||||||
(a) | Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(10) million for Operating Revenue, $(9) million for Operating Expenses and $(5) million for Interest Expense. | ||||||||||||||||
(b) | Includes depreciation and amortization expense of $473 million, consisting of $439 million for Power Delivery, $6 million for Pepco Energy Services and $28 million for Corporate and Other. | ||||||||||||||||
(c) | Includes after-tax interest associated with uncertain and effectively settled tax positions allocated to each member of the consolidated group, including a $12 million interest benefit for Power Delivery and interest expense of $66 million for Corporate and Other. | ||||||||||||||||
(d) | Includes non-cash charges of $101 million representing the establishment of valuation allowances against certain deferred tax assets of PCI included in Corporate and Other. | ||||||||||||||||
(e) | Includes pre-tax impairment losses of $4 million ($3 million after-tax) at Pepco Energy Services associated with a landfill gas-fired electric generation facility. | ||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
(millions of dollars) | |||||||||||||||||
Power | Pepco | Corporate | PHI | ||||||||||||||
Delivery | Energy | and | Consolidated | ||||||||||||||
Services | Other (a) | ||||||||||||||||
Operating Revenue | $ | 4,378 | $ | 256 | (b) | $ | (9 | ) | $ | 4,625 | |||||||
Operating Expenses (c) | 3,847 | 271 | (b)(d) | (34 | ) | 4,084 | |||||||||||
Operating Income (Loss) | 531 | (15 | ) | 25 | 541 | ||||||||||||
Interest Income | 1 | 1 | (1 | ) | 1 | ||||||||||||
Interest Expense | 219 | 2 | 35 | 256 | |||||||||||||
Impairment Losses | — | — | (1 | ) | (1 | ) | |||||||||||
Other Income | 32 | 1 | 3 | 36 | |||||||||||||
Income Tax Expense (Benefit) | 110 | (7 | ) | — | 103 | ||||||||||||
Net Income (Loss) from Continuing Operations | 235 | (8 | ) | (9 | ) | 218 | |||||||||||
Total Assets (excluding Assets Held for Disposition) | 12,149 | 342 | 2,028 | 14,519 | |||||||||||||
Construction Expenditures | $ | 1,168 | $ | 11 | $ | 37 | $ | 1,216 | |||||||||
(a) | Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(11) million for Operating Revenue, $(10) million for Operating Expenses, $(21) million for Interest Income and $(18) million for Interest Expense. | ||||||||||||||||
(b) | Includes $9 million of intra-company revenues (and associated costs) previously eliminated in consolidation which will continue to be recognized from third parties subsequent to the completion of the wind-down of the Pepco Energy Services’ retail electric and natural gas supply businesses. | ||||||||||||||||
(c) | Includes depreciation and amortization expense of $454 million, consisting of $416 million for Power Delivery, $14 million for Pepco Energy Services and $24 million for Corporate and Other. | ||||||||||||||||
(d) | Includes impairment losses of $12 million pre-tax ($7 million after-tax) at Pepco Energy Services associated primarily with investments in landfill gas-fired electric generation facilities, and the combustion turbines at Buzzard Point. | ||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||
(millions of dollars) | |||||||||||||||||
Power | Pepco | Corporate | PHI | ||||||||||||||
Delivery | Energy | and | Consolidated | ||||||||||||||
Services | Other (a) | ||||||||||||||||
Operating Revenue | $ | 4,650 | $ | 330 | (b) | $ | (16 | ) | $ | 4,964 | |||||||
Operating Expenses (c) | 4,150 | 301 | (b) | (40 | ) | 4,411 | |||||||||||
Operating Income | 500 | 29 | 24 | 553 | |||||||||||||
Interest Income | 1 | 1 | (1 | ) | 1 | ||||||||||||
Interest Expense | 208 | 2 | 32 | 242 | |||||||||||||
Impairment Losses | — | — | (5 | ) | (5 | ) | |||||||||||
Other Income (Expenses) | 29 | 2 | (2 | ) | 29 | ||||||||||||
Income Tax Expense (Benefit) (d) | 112 | 8 | (6 | ) | 114 | ||||||||||||
Net Income (Loss) from Continuing Operations | 210 | 22 | (10 | ) | 222 | ||||||||||||
Total Assets (excluding Assets Held for Disposition) | 11,008 | 529 | 1,988 | 13,525 | |||||||||||||
Construction Expenditures | $ | 888 | $ | 14 | $ | 39 | $ | 941 | |||||||||
(a) | Total Assets in this column includes Pepco Holdings’ goodwill balance of $1.4 billion, all of which is allocated to Power Delivery for purposes of assessing impairment. Total assets also include capital expenditures related to certain hardware and software expenditures which primarily benefit Power Delivery. These expenditures are recorded as incurred in Corporate and Other and are allocated to Power Delivery once the assets are placed in service. Corporate and Other includes intercompany amounts of $(16) million for Operating Revenue, $(15) million for Operating Expense, $(22) million for Interest Income and $(22) million for Interest Expense. | ||||||||||||||||
(b) | Includes $15 million of intra-company revenues (and associated costs) previously eliminated in consolidation which will continue to be recognized from third parties subsequent to the completion of the wind-down of the Pepco Energy Services’ retail electric and natural gas supply businesses. | ||||||||||||||||
(c) | Includes depreciation and amortization expense of $425 million, consisting of $394 million for Power Delivery, $16 million for Pepco Energy Services and $15 million for Corporate and Other. | ||||||||||||||||
(d) | Includes tax benefits of $14 million for Power Delivery primarily associated with an interest benefit related to federal tax liabilities. | ||||||||||||||||
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule of Regulatory Assets and Regulatory Liabilities | ' | ||||||||||||
The components of Pepco Holdings’ regulatory asset and liability balances at December 31, 2013 and 2012 are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Regulatory Assets | |||||||||||||
Pension and OPEB costs | $ | 667 | $ | 1,171 | |||||||||
Securitized stranded costs (a) | 350 | 416 | |||||||||||
Smart Grid costs (a) | 251 | 230 | |||||||||||
Recoverable income taxes | 225 | 177 | |||||||||||
Deferred energy supply costs (a) | 136 | 183 | |||||||||||
Demand-side management costs (a) | 125 | 57 | |||||||||||
Incremental storm restoration costs (a) | 72 | 89 | |||||||||||
MAPP abandonment costs (a) | 68 | 88 | |||||||||||
Deferred debt extinguishment costs (a) | 47 | 53 | |||||||||||
Recoverable workers’ compensation and long-term disability costs | 26 | 31 | |||||||||||
Deferred losses on gas derivatives | — | 4 | |||||||||||
Other | 120 | 115 | |||||||||||
Total Regulatory Assets | $ | 2,087 | $ | 2,614 | |||||||||
Regulatory Liabilities | |||||||||||||
Asset removal costs | $ | 275 | $ | 324 | |||||||||
Deferred energy supply costs | 46 | 78 | |||||||||||
Deferred income taxes due to customers | 45 | 45 | |||||||||||
Deferred gains on gas derivatives | 1 | — | |||||||||||
Excess depreciation reserve | — | 11 | |||||||||||
Other | 32 | 43 | |||||||||||
Total Regulatory Liabilities | $ | 399 | $ | 501 | |||||||||
(a) | A return is generally earned on these deferrals. | ||||||||||||
Schedule of Current Base Rate Increase Requisition to Increase Annual Revenue | ' | ||||||||||||
The following table shows, for each of PHI’s utility subsidiaries, the electric distribution base rate cases currently pending. Additional information concerning each of these filings is provided in the discussion below. | |||||||||||||
Jurisdiction/Company | Requested Revenue | Requested Return | Filing | Expected Timing | |||||||||
Requirement Increase | on Equity | Date | of Decision | ||||||||||
(millions of dollars) | |||||||||||||
DC – Pepco | $ | 44.8 | (a) | 10.25 | % | 8-Mar-13 | Q1, 2014 | ||||||
DE – DPL (Electric) | $ | 39.0 | (b) | 10.25 | % | 22-Mar-13 | Q2, 2014 | ||||||
MD – Pepco | $ | 43.3 | 10.25 | % | December 4, 2013 | Q3, 2014 | |||||||
(a) | Reflects Pepco’s updated revenue requirement as filed on December 3, 2013. | ||||||||||||
(b) | Reflects DPL’s updated revenue requirement as filed on September 20, 2013. | ||||||||||||
Schedule of Current Base Rate Approval to Increase Annual Revenue | ' | ||||||||||||
The following table shows, for each of PHI’s utility subsidiaries, the distribution base rate cases completed in 2013. Additional information concerning each of these cases is provided in the discussion below. | |||||||||||||
Jurisdiction/Company | Approved Revenue | Approved Return | Completion | Rate Effective | |||||||||
Requirement Increase | on Equity | Date | Date | ||||||||||
(millions of dollars) | |||||||||||||
NJ – ACE | $ | 25.5 | 9.75 | % | 21-Jun-13 | 1-Jul-13 | |||||||
MD – Pepco | $ | 27.9 | 9.36 | % | 12-Jul-13 | 12-Jul-13 | |||||||
MD – DPL | $ | 15 | 9.81 | % (a) | 30-Aug-13 | September 15, 2013 | |||||||
DE – DPL (Gas) | $ | 6.8 | 9.75 | % (b) | October 22, 2013 | 1-Nov-13 | |||||||
(a) | Return on equity (ROE) has not been determined by any proceeding and is specified only for the purposes of calculating the AFUDC and regulatory asset carrying costs. | ||||||||||||
(b) | ROE has not been determined by any proceeding and is specified only for reporting purposes and for calculating the AFUDC, construction work in process (CWIP), regulatory asset carrying costs and other accounting | ||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||
Schedule of Regulatory Assets and Regulatory Liabilities | ' | ||||||||||||
The components of Pepco’s regulatory asset and liability balances at December 31, 2013 and 2012 are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Regulatory Assets | |||||||||||||
Smart Grid costs (a) | $ | 168 | $ | 159 | |||||||||
Recoverable income taxes | 107 | 75 | |||||||||||
Demand-side management costs (a) | 98 | 45 | |||||||||||
Incremental storm restoration costs (a) | 37 | 44 | |||||||||||
MAPP abandonment costs (a) | 37 | 50 | |||||||||||
Recoverable workers’ compensation and long-term disability costs | 26 | 31 | |||||||||||
Deferred debt extinguishment costs (a) | 25 | 28 | |||||||||||
Deferred energy supply costs | 6 | 4 | |||||||||||
Other | 59 | 51 | |||||||||||
Total Regulatory Assets | $ | 563 | $ | 487 | |||||||||
Regulatory Liabilities | |||||||||||||
Asset removal costs | $ | 102 | $ | 122 | |||||||||
Other | 11 | 19 | |||||||||||
Total Regulatory Liabilities | $ | 113 | $ | 141 | |||||||||
(a) | A return is generally earned on these deferrals. | ||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||
Schedule of Regulatory Assets and Regulatory Liabilities | ' | ||||||||||||
The components of DPL’s regulatory asset and liability balances at December 31, 2013 and 2012 are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Regulatory Assets | |||||||||||||
Smart Grid costs (a) | $ | 83 | $ | 71 | |||||||||
Recoverable income taxes | 76 | 69 | |||||||||||
MAPP abandonment costs (a) | 31 | 38 | |||||||||||
Demand-side management costs (a) | 27 | 12 | |||||||||||
COPCO acquisition adjustment (a) | 22 | 26 | |||||||||||
Deferred debt extinguishment costs (a) | 13 | 15 | |||||||||||
Deferred energy supply costs (b) | 13 | 13 | |||||||||||
Incremental storm restoration costs (a) | 9 | 11 | |||||||||||
Deferred losses on gas derivatives | — | 4 | |||||||||||
Other | 37 | 29 | |||||||||||
Total Regulatory Assets | $ | 311 | $ | 288 | |||||||||
Regulatory Liabilities | |||||||||||||
Asset removal costs | $ | 173 | $ | 202 | |||||||||
Deferred income taxes due to customers | 37 | 38 | |||||||||||
Deferred energy supply costs | 3 | 6 | |||||||||||
Deferred gains on gas derivatives | 1 | — | |||||||||||
Other | 15 | 12 | |||||||||||
Total Regulatory Liabilities | $ | 229 | $ | 258 | |||||||||
(a) | A return is earned on these deferrals. | ||||||||||||
(b) | A return is generally earned in Delaware on this deferral. | ||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||
Schedule of Regulatory Assets and Regulatory Liabilities | ' | ||||||||||||
The components of ACE’s regulatory asset and liability balances at December 31, 2013 and 2012 are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Regulatory Assets | |||||||||||||
Securitized stranded costs (a) | $ | 350 | $ | 416 | |||||||||
Deferred energy supply costs (a) | 117 | 166 | |||||||||||
Recoverable income taxes | 42 | 33 | |||||||||||
Incremental storm restoration costs | 26 | 34 | |||||||||||
ACE SOCAs | — | 11 | |||||||||||
Other | 34 | 34 | |||||||||||
Total Regulatory Assets | $ | 569 | $ | 694 | |||||||||
Regulatory Liabilities | |||||||||||||
Deferred energy supply costs | $ | 38 | $ | 62 | |||||||||
Federal and state tax benefits, related to securitized stranded costs | 13 | 16 | |||||||||||
Excess depreciation reserve | — | 11 | |||||||||||
ACE SOCAs | — | 8 | |||||||||||
Other | 6 | 5 | |||||||||||
Total Regulatory Liabilities | $ | 57 | $ | 102 | |||||||||
(a) | A return is generally earned on these deferrals. |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule of Property, Plant and Equipment | ' | ||||||||||||
Property, plant and equipment is comprised of the following: | |||||||||||||
Original | Accumulated | Net | |||||||||||
Cost | Depreciation | Book Value | |||||||||||
(millions of dollars) | |||||||||||||
At December 31, 2013 | |||||||||||||
Generation | $ | 105 | $ | 99 | $ | 6 | |||||||
Distribution | 8,896 | 2,961 | 5,935 | ||||||||||
Transmission | 2,991 | 908 | 2,083 | ||||||||||
Gas | 481 | 142 | 339 | ||||||||||
Construction work in progress | 677 | — | 677 | ||||||||||
Non-operating and other property | 1,417 | 753 | 664 | ||||||||||
Total | $ | 14,567 | $ | 4,863 | $ | 9,704 | |||||||
At December 31, 2012 | |||||||||||||
Generation | $ | 107 | $ | 97 | $ | 10 | |||||||
Distribution | 8,320 | 2,954 | 5,366 | ||||||||||
Transmission | 2,783 | 866 | 1,917 | ||||||||||
Gas | 458 | 137 | 321 | ||||||||||
Construction work in progress | 692 | — | 692 | ||||||||||
Non-operating and other property | 1,265 | 725 | 540 | ||||||||||
Total | $ | 13,625 | $ | 4,779 | $ | 8,846 | |||||||
Capital Lease Assets Recorded within Property, Plant and Equipment | ' | ||||||||||||
Capital lease assets recorded within Property, Plant and Equipment at December 31, 2013 and 2012, in millions of dollars, are comprised of the following: | |||||||||||||
Original | Accumulated | Net Book | |||||||||||
Cost | Amortization | Value | |||||||||||
At December 31, 2013 | |||||||||||||
Transmission | $ | 76 | $ | 41 | $ | 35 | |||||||
Distribution | 76 | 42 | 34 | ||||||||||
General | 3 | 3 | — | ||||||||||
Total | $ | 155 | $ | 86 | $ | 69 | |||||||
At December 31, 2012 | |||||||||||||
Transmission | $ | 76 | $ | 37 | $ | 39 | |||||||
Distribution | 76 | 37 | 39 | ||||||||||
General | 3 | 3 | — | ||||||||||
Total | $ | 155 | $ | 77 | $ | 78 | |||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||
Schedule of Property, Plant and Equipment | ' | ||||||||||||
Property, plant and equipment is comprised of the following: | |||||||||||||
Original | Accumulated | Net Book | |||||||||||
Cost | Depreciation | Value | |||||||||||
(millions of dollars) | |||||||||||||
At December 31, 2013 | |||||||||||||
Distribution | $ | 5,287 | $ | 2,027 | $ | 3,260 | |||||||
Transmission | 1,223 | 444 | 779 | ||||||||||
Construction work in progress | 312 | — | 312 | ||||||||||
Non-operating and other property | 488 | 301 | 187 | ||||||||||
Total | $ | 7,310 | $ | 2,772 | $ | 4,538 | |||||||
At December 31, 2012 | |||||||||||||
Distribution | $ | 4,949 | $ | 1,995 | $ | 2,954 | |||||||
Transmission | 1,166 | 419 | 747 | ||||||||||
Construction work in progress | 303 | — | 303 | ||||||||||
Non-operating and other property | 432 | 291 | 141 | ||||||||||
Total | $ | 6,850 | $ | 2,705 | $ | 4,145 | |||||||
Capital Lease Assets Recorded within Property, Plant and Equipment | ' | ||||||||||||
Capital lease assets recorded within Property, plant and equipment at December 31, 2013 and 2012 are comprised of the following: | |||||||||||||
Original | Accumulated | Net Book | |||||||||||
Cost | Amortization | Value | |||||||||||
(millions of dollars) | |||||||||||||
At December 31, 2013 | |||||||||||||
Transmission | $ | 76 | $ | 41 | $ | 35 | |||||||
Distribution | 76 | 42 | 34 | ||||||||||
Other | 3 | 3 | — | ||||||||||
Total | $ | 155 | $ | 86 | $ | 69 | |||||||
At December 31, 2012 | |||||||||||||
Transmission | $ | 76 | $ | 37 | $ | 39 | |||||||
Distribution | 76 | 37 | 39 | ||||||||||
Other | 3 | 3 | — | ||||||||||
Total | $ | 155 | $ | 77 | $ | 78 | |||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||
Schedule of Property, Plant and Equipment | ' | ||||||||||||
Property, plant and equipment is comprised of the following: | |||||||||||||
Original | Accumulated | Net | |||||||||||
Cost | Depreciation | Book Value | |||||||||||
(millions of dollars) | |||||||||||||
At December 31, 2013 | |||||||||||||
Distribution | $ | 1,788 | $ | 492 | $ | 1,296 | |||||||
Transmission | 982 | 243 | 739 | ||||||||||
Gas | 481 | 142 | 339 | ||||||||||
Construction work in progress | 158 | — | 158 | ||||||||||
Non-operating and other property | 264 | 139 | 125 | ||||||||||
Total | $ | 3,673 | $ | 1,016 | $ | 2,657 | |||||||
At December 31, 2012 | |||||||||||||
Distribution | $ | 1,664 | $ | 498 | $ | 1,166 | |||||||
Transmission | 877 | 233 | 644 | ||||||||||
Gas | 458 | 137 | 321 | ||||||||||
Construction work in progress | 206 | — | 206 | ||||||||||
Non-operating and other property | 217 | 132 | 85 | ||||||||||
Total | $ | 3,422 | $ | 1,000 | $ | 2,422 | |||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||
Schedule of Property, Plant and Equipment | ' | ||||||||||||
Property, plant and equipment is comprised of the following: | |||||||||||||
Original | Accumulated | Net | |||||||||||
Cost | Depreciation | Book Value | |||||||||||
(millions of dollars) | |||||||||||||
At December 31, 2013 | |||||||||||||
Generation | $ | 10 | $ | 9 | $ | 1 | |||||||
Distribution | 1,821 | 442 | 1,379 | ||||||||||
Transmission | 786 | 221 | 565 | ||||||||||
Construction work in progress | 110 | — | 110 | ||||||||||
Non-operating and other property | 174 | 79 | 95 | ||||||||||
Total | $ | 2,901 | $ | 751 | $ | 2,150 | |||||||
At December 31, 2012 | |||||||||||||
Generation | $ | 10 | $ | 9 | $ | 1 | |||||||
Distribution | 1,707 | 461 | 1,246 | ||||||||||
Transmission | 740 | 214 | 526 | ||||||||||
Construction work in progress | 133 | — | 133 | ||||||||||
Non-operating and other property | 181 | 103 | 78 | ||||||||||
Total | $ | 2,771 | $ | 787 | $ | 1,984 | |||||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Schedule of Changes in Benefit Obligations and Plan Assets | ' | ||||||||||||||||||||||||
The following table shows changes in the benefit obligation and plan assets for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||||
Benefit obligation as of January 1 | $ | 2,494 | $ | 2,124 | $ | 775 | $ | 750 | |||||||||||||||||
Service cost | 53 | 35 | 8 | 7 | |||||||||||||||||||||
Interest cost | 100 | 107 | 29 | 35 | |||||||||||||||||||||
Amendments | 3 | — | (124 | ) | — | ||||||||||||||||||||
Actuarial (gain) loss | (277 | ) | 341 | (71 | ) | 24 | |||||||||||||||||||
Benefits paid (a) | (135 | ) | (113 | ) | (43 | ) | (41 | ) | |||||||||||||||||
Benefit obligation as of December 31 | $ | 2,238 | $ | 2,494 | $ | 574 | $ | 775 | |||||||||||||||||
Change in Plan Assets | |||||||||||||||||||||||||
Fair value of plan assets as of January 1 | $ | 2,039 | $ | 1,694 | $ | 321 | $ | 281 | |||||||||||||||||
Actual return on plan assets | 86 | 252 | 56 | 38 | |||||||||||||||||||||
Company and participant contributions | 126 | 206 | 34 | 43 | |||||||||||||||||||||
Benefits paid (a) | (135 | ) | (113 | ) | (43 | ) | (41 | ) | |||||||||||||||||
Fair value of plan assets as of December 31 | $ | 2,116 | $ | 2,039 | $ | 368 | $ | 321 | |||||||||||||||||
Funded Status at end of year (plan assets less plan obligations) | $ | (122 | ) | $ | (455 | ) | $ | (206 | ) | $ | (454 | ) | |||||||||||||
(a) | Other Postretirement Benefits paid is net of Medicare Part D subsidy receipts of zero and $4 million in 2013 and 2012, respectively. | ||||||||||||||||||||||||
Amounts Recognized in Consolidated Balance Sheets | ' | ||||||||||||||||||||||||
The following table provides the amounts recorded in PHI’s consolidated balance sheets as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Regulatory asset | $ | 664 | $ | 934 | $ | 3 | $ | 237 | |||||||||||||||||
Current liabilities | (6 | ) | (6 | ) | — | — | |||||||||||||||||||
Pension benefit obligation | (116 | ) | (449 | ) | — | — | |||||||||||||||||||
Other postretirement benefit obligations | — | — | (206 | ) | (454 | ) | |||||||||||||||||||
Deferred income tax liabilities, net | (217 | ) | (216 | ) | 82 | 88 | |||||||||||||||||||
Accumulated other comprehensive loss, net of tax | 25 | 32 | — | — | |||||||||||||||||||||
Net amount recorded | $ | 350 | $ | 295 | $ | (121 | ) | $ | (129 | ) | |||||||||||||||
Schedule of Amounts Included in AOCL and Regulatory Assets | ' | ||||||||||||||||||||||||
Amounts included in AOCL (pre-tax) and Regulatory assets at December 31, 2013 and 2012, consist of: | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Unrecognized net actuarial loss | $ | 694 | $ | 979 | $ | 117 | $ | 238 | |||||||||||||||||
Unamortized prior service cost (credit) | 10 | 9 | (114 | ) | (1 | ) | |||||||||||||||||||
Total | $ | 704 | $ | 988 | $ | 3 | $ | 237 | |||||||||||||||||
Accumulated other comprehensive loss ($25 million and $32 million, net of tax, at December 31, 2013 and 2012, respectively) | $ | 40 | $ | 54 | $ | — | $ | — | |||||||||||||||||
Regulatory assets | 664 | 934 | 3 | 237 | |||||||||||||||||||||
Total | $ | 704 | $ | 988 | $ | 3 | $ | 237 | |||||||||||||||||
Summary of Changes in Plan Assets and Benefit Obligations Recognized in AOCL and Regulatory Assets | ' | ||||||||||||||||||||||||
The table below provides the changes in plan assets and benefit obligations recognized in AOCL and Regulatory assets for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Amounts amortized during the year: | |||||||||||||||||||||||||
Amortization of prior service (cost) credit | $ | (2 | ) | $ | (1 | ) | $ | — | $ | 11 | $ | 4 | $ | 5 | |||||||||||
Amortization of net actuarial (loss) | (67 | ) | (64 | ) | (47 | ) | (12 | ) | (14 | ) | (14 | ) | |||||||||||||
Amounts arising during the year: | |||||||||||||||||||||||||
Current year prior service cost (credit) | 3 | — | 19 | (124 | ) | — | 6 | ||||||||||||||||||
Current year actuarial (gain) loss | (218 | ) | 220 | 177 | (109 | ) | 4 | 53 | |||||||||||||||||
Total recognized in AOCL and Regulatory assets for the year ended December 31 | $ | (284 | ) | $ | 155 | $ | 149 | $ | (234 | ) | $ | (6 | ) | $ | 50 | ||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||||||||||
The table below provides the components of net periodic benefit costs recognized for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Service cost | $ | 53 | $ | 35 | $ | 35 | $ | 8 | $ | 7 | $ | 5 | |||||||||||||
Interest cost | 100 | 107 | 107 | 29 | 35 | 37 | |||||||||||||||||||
Expected return on plan assets | (145 | ) | (132 | ) | (128 | ) | (20 | ) | (18 | ) | (19 | ) | |||||||||||||
Amortization of prior service cost (credit) | 2 | 1 | — | (11 | ) | (4 | ) | (5 | ) | ||||||||||||||||
Amortization of net actuarial loss | 67 | 64 | 47 | 12 | 14 | 14 | |||||||||||||||||||
Termination benefits | — | — | — | — | 1 | 1 | |||||||||||||||||||
Net periodic benefit cost | $ | 77 | $ | 75 | $ | 61 | $ | 18 | $ | 35 | $ | 33 | |||||||||||||
Split of Combined Pension and Other Postretirement Net Periodic Benefit Costs | ' | ||||||||||||||||||||||||
The table below provides the split of the combined pension and other postretirement net periodic benefit costs among subsidiaries for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Pepco | $ | 34 | $ | 39 | $ | 43 | |||||||||||||||||||
DPL | 18 | 23 | 23 | ||||||||||||||||||||||
ACE | 17 | 24 | 21 | ||||||||||||||||||||||
Other subsidiaries | 26 | 24 | 7 | ||||||||||||||||||||||
Total | $ | 95 | $ | 110 | $ | 94 | |||||||||||||||||||
Weighted Average Assumptions Used to Determine Benefit Obligations | ' | ||||||||||||||||||||||||
The following weighted average assumptions were used to determine the benefit obligations at December 31: | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Discount rate | 5.05 | % | 4.15 | % | 5 | % | 4.1 | % | |||||||||||||||||
Rate of compensation increase | 5 | % | 5 | % | 5 | % | 5 | % | |||||||||||||||||
Health care cost trend rate assumed for current year – pre 65 | — | — | 7 | % | 7.5 | % | |||||||||||||||||||
Health care cost trend rate assumed for current year – post 65 | — | — | 5.6 | % | 7.5 | % | |||||||||||||||||||
Rate to which the cost trend rate is assumed to decline for all eligible retirees (the ultimate trend rate) | — | — | 5 | % | 5 | % | |||||||||||||||||||
Year that the cost trend rate reaches the ultimate trend rate | — | — | 2020 | 2018 | |||||||||||||||||||||
Summary of Effect of One Percent Change in Assumed Health Care Cost | ' | ||||||||||||||||||||||||
A one-percentage-point change in assumed health care cost trend rates would have the following effects, in millions of dollars: | |||||||||||||||||||||||||
1-Percentage- | 1-Percentage- | ||||||||||||||||||||||||
Point Increase | Point Decrease | ||||||||||||||||||||||||
Increase (decrease) in total service and interest cost | $ | 1 | $ | (1 | ) | ||||||||||||||||||||
Increase (decrease) in postretirement benefit obligation | $ | 17 | $ | (19 | ) | ||||||||||||||||||||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Costs | ' | ||||||||||||||||||||||||
The following weighted average assumptions were used to determine the net periodic benefit cost for the years ended December 31: | |||||||||||||||||||||||||
Pension | Other Postretirement | ||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Discount rate | 4.15 | % | 5 | % | 5.65 | % | 4.10%/4.95 | % (a) | 4.9 | % | 5.6 | % | |||||||||||||
Expected long-term return on plan assets | 7 | % | 7.25 | % | 7.75 | % | 7 | % | 7.25 | % | 7.75 | % | |||||||||||||
Rate of compensation increase | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | |||||||||||||
Health care cost trend rate | — | — | — | 7.5 | % | 8 | % | 8 | % | ||||||||||||||||
(a) | The discount rate was updated for remeasurement to 4.95% on July 1, 2013. | ||||||||||||||||||||||||
Schedule of Fair Value of Plan Assets | ' | ||||||||||||||||||||||||
The following tables present the fair values of PHI’s pension and other postretirement benefit plan assets by asset category within the fair value hierarchy levels, as of December 31, 2013 and 2012: | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Instruments | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Pension Plan Assets: | |||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||
Domestic (a) | $ | 432 | $ | 185 | $ | 213 | $ | 34 | |||||||||||||||||
International (b) | 217 | 215 | 1 | 1 | |||||||||||||||||||||
Fixed Income (c) | 1,309 | — | 1,298 | 11 | |||||||||||||||||||||
Other | |||||||||||||||||||||||||
Private Equity | 53 | — | — | 53 | |||||||||||||||||||||
Real Estate | 61 | — | — | 61 | |||||||||||||||||||||
Cash Equivalents (d) | 44 | 44 | — | — | |||||||||||||||||||||
Pension Plan Assets Subtotal | 2,116 | 444 | 1,512 | 160 | |||||||||||||||||||||
Other Postretirement Plan Assets: | |||||||||||||||||||||||||
Equity (e) | 233 | 204 | 29 | — | |||||||||||||||||||||
Fixed Income (f) | 113 | 113 | — | — | |||||||||||||||||||||
Cash Equivalents | 22 | 22 | — | — | |||||||||||||||||||||
Postretirement Plan Assets Subtotal | 368 | 339 | 29 | — | |||||||||||||||||||||
Total Pension and Other Postretirement Assets | $ | 2,484 | $ | 783 | $ | 1,541 | $ | 160 | |||||||||||||||||
(a) | Predominantly includes domestic common stock and commingled funds. | ||||||||||||||||||||||||
(b) | Predominantly includes foreign common and preferred stock and warrants. | ||||||||||||||||||||||||
(c) | Predominantly includes corporate bonds, government bonds, municipal/provincial bonds, collateralized mortgage obligations and commingled funds. | ||||||||||||||||||||||||
(d) | Predominantly includes cash investment in short-term investment funds. | ||||||||||||||||||||||||
(e) | Includes domestic and international commingled funds. | ||||||||||||||||||||||||
(f) | Includes fixed income commingled funds. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Instruments | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Pension Plan Assets: | |||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||
Domestic (a) | $ | 367 | $ | 169 | $ | 170 | $ | 28 | |||||||||||||||||
International (b) | 254 | 250 | 1 | 3 | |||||||||||||||||||||
Fixed Income (c) | 1,256 | — | 1,243 | 13 | |||||||||||||||||||||
Other | |||||||||||||||||||||||||
Private Equity | 56 | — | — | 56 | |||||||||||||||||||||
Real Estate | 74 | — | — | 74 | |||||||||||||||||||||
Cash Equivalents (d) | 32 | 32 | — | — | |||||||||||||||||||||
Pension Plan Assets Subtotal | 2,039 | 451 | 1,414 | 174 | |||||||||||||||||||||
Other Postretirement Plan Assets: | |||||||||||||||||||||||||
Equity (e) | 199 | 171 | 28 | — | |||||||||||||||||||||
Fixed Income (f) | 115 | 115 | — | — | |||||||||||||||||||||
Cash Equivalents | 7 | 7 | — | — | |||||||||||||||||||||
Postretirement Plan Assets Subtotal | 321 | 293 | 28 | — | |||||||||||||||||||||
Total Pension and Other Postretirement Plan Assets | $ | 2,360 | $ | 744 | $ | 1,442 | $ | 174 | |||||||||||||||||
(a) | Predominantly includes domestic common stock and commingled funds. | ||||||||||||||||||||||||
(b) | Predominantly includes foreign common and preferred stock and warrants. | ||||||||||||||||||||||||
(c) | Predominantly includes corporate bonds, government bonds, municipal/provincial bonds, collateralized mortgage obligations and commingled funds. | ||||||||||||||||||||||||
(d) | Predominantly includes cash investment in short-term investment funds. | ||||||||||||||||||||||||
(e) | Includes domestic and international commingled funds. | ||||||||||||||||||||||||
(f) | Includes fixed income commingled funds. | ||||||||||||||||||||||||
Reconciliation of Fair Value Measurements Using Significant Unobservable Inputs | ' | ||||||||||||||||||||||||
Reconciliations of the beginning and ending balances of PHI’s fair value measurements using significant unobservable inputs (level 3) for investments in the pension plan for the years ended December 31, 2013 and 2012 are shown below: | |||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs | |||||||||||||||||||||||||
(Level 3) | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Equity | Fixed | Private | Real | Total | |||||||||||||||||||||
Income | Equity | Estate | Level 3 | ||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 31 | $ | 13 | $ | 56 | $ | 74 | $ | 174 | |||||||||||||||
Transfer in (out) of Level 3 | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||||
Purchases | — | — | 2 | 2 | 4 | ||||||||||||||||||||
Sales | (5 | ) | (1 | ) | — | (13 | ) | (19 | ) | ||||||||||||||||
Settlements | — | 2 | (4 | ) | (10 | ) | (12 | ) | |||||||||||||||||
Unrealized gain/(loss) | 7 | — | (7 | ) | 7 | 7 | |||||||||||||||||||
Realized gain | 2 | — | 6 | 1 | 9 | ||||||||||||||||||||
Balance as of December 31, 2013 | $ | 35 | $ | 11 | $ | 53 | $ | 61 | $ | 160 | |||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs | |||||||||||||||||||||||||
(Level 3) | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Equity | Fixed | Private | Real | Total | |||||||||||||||||||||
Income | Equity | Estate | Level 3 | ||||||||||||||||||||||
Balance as of January 1, 2012 | $ | 27 | $ | 9 | $ | 64 | $ | 65 | $ | 165 | |||||||||||||||
Transfer in (out) of Level 3 | — | 2 | — | — | 2 | ||||||||||||||||||||
Purchases | 4 | 2 | 4 | 5 | 15 | ||||||||||||||||||||
Sales | (4 | ) | (1 | ) | — | — | (5 | ) | |||||||||||||||||
Settlements | (1 | ) | 1 | (8 | ) | (5 | ) | (13 | ) | ||||||||||||||||
Unrealized gain/(loss) | 4 | — | (11 | ) | 8 | 1 | |||||||||||||||||||
Realized gain | 1 | — | 7 | 1 | 9 | ||||||||||||||||||||
Balance as of December 31, 2012 | $ | 31 | $ | 13 | $ | 56 | $ | 74 | $ | 174 | |||||||||||||||
Schedule of Estimated Benefit Payments | ' | ||||||||||||||||||||||||
Estimated future benefit payments to participants in PHI’s pension and other postretirement benefit plans, which reflect expected future service as appropriate, are as follows: | |||||||||||||||||||||||||
Years | Pension Benefits | Other | |||||||||||||||||||||||
Postretirement | |||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
2014 | $ | 159 | $ | 38 | |||||||||||||||||||||
2015 | 136 | 39 | |||||||||||||||||||||||
2016 | 139 | 39 | |||||||||||||||||||||||
2017 | 142 | 40 | |||||||||||||||||||||||
2018 | 147 | 40 | |||||||||||||||||||||||
2019 through 2023 | $ | 795 | $ | 201 | |||||||||||||||||||||
Pension Benefits [Member] | ' | ||||||||||||||||||||||||
Summary of Plan Asset Allocations | ' | ||||||||||||||||||||||||
The PHI Retirement Plan asset allocations at December 31, 2013 and 2012, by asset category, were as follows: | |||||||||||||||||||||||||
Asset Category | Plan Assets | Target Plan | |||||||||||||||||||||||
at December 31, | Asset Allocation | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Equity | 31 | % | 30 | % | 28 | % | 32 | % | |||||||||||||||||
Fixed Income | 62 | % | 62 | % | 66 | % | 62 | % | |||||||||||||||||
Other (real estate, private equity) | 7 | % | 8 | % | 6 | % | 6 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
Other Postretirement Benefits [Member] | ' | ||||||||||||||||||||||||
Summary of Plan Asset Allocations | ' | ||||||||||||||||||||||||
PHI’s other postretirement benefit plan asset allocations at December 31, 2013 and 2012, by asset category, were as follows: | |||||||||||||||||||||||||
Asset Category | Plan Assets | Target Plan | |||||||||||||||||||||||
at December 31, | Asset Allocation | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Equity | 63 | % | 62 | % | 60 | % | 60 | % | |||||||||||||||||
Fixed Income | 31 | % | 36 | % | 35 | % | 35 | % | |||||||||||||||||
Cash | 6 | % | 2 | % | 5 | % | 5 | % | |||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Components of Long-Term Debt | ' | ||||||||||||||||
The components of long-term debt are shown in the table below: | |||||||||||||||||
At December 31, | |||||||||||||||||
Interest Rate | Maturity | 2013 | 2012 | ||||||||||||||
(millions of dollars) | |||||||||||||||||
First Mortgage Bonds | |||||||||||||||||
Pepco: | |||||||||||||||||
4.95% (a)(b) | 2013 | $ | — | $ | 200 | ||||||||||||
4.65% (a)(b) | 2014 | 175 | 175 | ||||||||||||||
3.05% | 2022 | 200 | 200 | ||||||||||||||
6.20% (c)(d) | 2022 | 110 | 110 | ||||||||||||||
5.75% (a)(b) | 2034 | 100 | 100 | ||||||||||||||
5.40% (a)(b) | 2035 | 175 | 175 | ||||||||||||||
6.50% (a)(c) | 2037 | 500 | 500 | ||||||||||||||
7.90% | 2038 | 250 | 250 | ||||||||||||||
4.15% | 2043 | 250 | — | ||||||||||||||
4.95% | 2043 | 150 | — | ||||||||||||||
ACE: | |||||||||||||||||
6.63% | 2013 | — | 69 | ||||||||||||||
7.63% (e) | 2014 | 7 | 7 | ||||||||||||||
7.68% (e) | 2015 - 2016 | 17 | 17 | ||||||||||||||
7.75% | 2018 | 250 | 250 | ||||||||||||||
6.80% (b)(f) | 2021 | 39 | 39 | ||||||||||||||
4.35% | 2021 | 200 | 200 | ||||||||||||||
4.875% (c)(f) | 2029 | 23 | 23 | ||||||||||||||
5.80% (b)(g) | 2034 | 120 | 120 | ||||||||||||||
5.80% (b)(g) | 2036 | 105 | 105 | ||||||||||||||
DPL: | |||||||||||||||||
6.40% | 2013 | — | 250 | ||||||||||||||
5.22% (h) | 2016 | 100 | 100 | ||||||||||||||
3.50% | 2023 | 300 | — | ||||||||||||||
4.00% | 2042 | 250 | 250 | ||||||||||||||
Total First Mortgage Bonds | 3,321 | 3,140 | |||||||||||||||
Unsecured Tax-Exempt Bonds | |||||||||||||||||
DPL: | |||||||||||||||||
5.40% | 2031 | 78 | 78 | ||||||||||||||
Total Unsecured Tax-Exempt Bonds | $ | 78 | $ | 78 | |||||||||||||
At December 31, | |||||||||||||||||
Interest Rate | Maturity | 2013 | 2012 | ||||||||||||||
(millions of dollars) | |||||||||||||||||
Medium-Term Notes (unsecured) | |||||||||||||||||
DPL: | |||||||||||||||||
7.56% - 7.58% | 2017 | $ | 14 | $ | 14 | ||||||||||||
6.81% | 2018 | 4 | 4 | ||||||||||||||
7.61% | 2019 | 12 | 12 | ||||||||||||||
7.72% | 2027 | 10 | 10 | ||||||||||||||
Total Medium-Term Notes (unsecured) | 40 | 40 | |||||||||||||||
ACE Variable Rate Term Loan | 2014 | 100 | — | ||||||||||||||
Recourse Debt | |||||||||||||||||
PCI: | |||||||||||||||||
6.59% - 6.69% | 2014 | 11 | 11 | ||||||||||||||
Notes (secured) | |||||||||||||||||
Pepco Energy Services: | |||||||||||||||||
5.90% - 7.46% | 2017-2024 | 14 | 15 | ||||||||||||||
Notes (unsecured) | |||||||||||||||||
PHI: | |||||||||||||||||
2.70% | 2015 | 250 | 250 | ||||||||||||||
5.90% | 2016 | 190 | 190 | ||||||||||||||
6.13% | 2017 | 81 | 81 | ||||||||||||||
7.45% | 2032 | 185 | 185 | ||||||||||||||
DPL: | |||||||||||||||||
5.00% | 2014 | 100 | 100 | ||||||||||||||
5.00% | 2015 | 100 | 100 | ||||||||||||||
Total Notes (unsecured) | 906 | 906 | |||||||||||||||
Total Long-Term Debt | 4,470 | 4,190 | |||||||||||||||
Net unamortized discount | (14 | ) | (13 | ) | |||||||||||||
Current portion of long-term debt | (403 | ) | (529 | ) | |||||||||||||
Total Net Long-Term Debt | $ | 4,053 | $ | 3,648 | |||||||||||||
(a) | Represents a series of Collateral First Mortgage Bonds securing a series of senior notes issued by Pepco. | ||||||||||||||||
(b) | Represents a series of Collateral First Mortgage Bonds (as defined herein) which must be cancelled and released as security for the issuer’s obligations under the corresponding series of issuer notes (as defined herein) or tax-exempt bonds, at such time as the issuer does not have any first mortgage bonds outstanding (other than its Collateral First Mortgage Bonds). | ||||||||||||||||
(c) | Represents a series of Collateral First Mortgage Bonds which must be cancelled and released as security for the issuer’s obligations under the corresponding series of issuer notes or tax-exempt bonds, at such time as the issuer does not have any first mortgage bonds outstanding (other than its Collateral First Mortgage Bonds), except that the issuer may not permit such release of collateral unless the issuer substitutes comparable obligations for such collateral. | ||||||||||||||||
(d) | Represents a series of Collateral First Mortgage Bonds securing a series of senior notes issued by Pepco, which in turn secures a series of tax-exempt bonds issued for the benefit of Pepco. | ||||||||||||||||
(e) | Represents a series of Collateral First Mortgage Bonds securing a series of medium term notes issued by ACE. | ||||||||||||||||
(f) | Represents a series of Collateral First Mortgage Bonds securing a series of tax-exempt bonds issued for the benefit of ACE. | ||||||||||||||||
(g) | Represents a series of Collateral First Mortgage Bonds securing a series of senior notes issued by ACE. | ||||||||||||||||
(h) | Represents a series of Collateral First Mortgage Bonds securing a series of debt securities issued by DPL. | ||||||||||||||||
The components of transition bonds are shown in the table below: | |||||||||||||||||
At December 31, | |||||||||||||||||
Interest Rate | Maturity | 2013 | 2012 | ||||||||||||||
(millions of dollars) | |||||||||||||||||
4.46% | 2016 | $ | 8 | $ | 19 | ||||||||||||
4.91% | 2017 | 46 | 75 | ||||||||||||||
5.05% | 2020 | 54 | 54 | ||||||||||||||
5.55% | 2023 | 147 | 147 | ||||||||||||||
Total Transition Bonds | 255 | 295 | |||||||||||||||
Net unamortized discount | — | — | |||||||||||||||
Current portion of long-term debt | (41 | ) | (39 | ) | |||||||||||||
Total Net Long-Term Transition Bonds | $ | 214 | $ | 256 | |||||||||||||
Components of Short-Term Debt | ' | ||||||||||||||||
The components of PHI’s short-term debt at December 31, 2013 and 2012 are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(millions of dollars) | |||||||||||||||||
Commercial paper | $ | 442 | $ | 637 | |||||||||||||
Variable rate demand bonds | 123 | 128 | |||||||||||||||
Term loan agreement | — | 200 | |||||||||||||||
Total | $ | 565 | $ | 965 | |||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||
Components of Long-Term Debt | ' | ||||||||||||||||
The components of long-term debt are shown in the table below: | |||||||||||||||||
Type of Debt | Interest Rate | Maturity | 2013 | 2012 | |||||||||||||
(millions of dollars) | |||||||||||||||||
First Mortgage Bonds | 4.95 | %(a)(b) | 2013 | $ | — | $ | 200 | ||||||||||
4.65 | %(a)(b) | 2014 | 175 | 175 | |||||||||||||
3.05 | % | 2022 | 200 | 200 | |||||||||||||
6.2 | %(c)(d) | 2022 | 110 | 110 | |||||||||||||
5.75 | %(a)(b) | 2034 | 100 | 100 | |||||||||||||
5.4 | %(a)(b) | 2035 | 175 | 175 | |||||||||||||
6.5 | %(a)(c) | 2037 | 500 | 500 | |||||||||||||
7.9 | % | 2038 | 250 | 250 | |||||||||||||
4.15 | % | 2043 | 250 | — | |||||||||||||
4.95 | % | 2043 | 150 | — | |||||||||||||
Total long-term debt | 1,910 | 1,710 | |||||||||||||||
Net unamortized discount | (11 | ) | (9 | ) | |||||||||||||
Current portion of long-term debt | (175 | ) | (200 | ) | |||||||||||||
Total net long-term debt | $ | 1,724 | $ | 1,501 | |||||||||||||
(a) | Represents a series of Collateral First Mortgage Bonds securing a series of senior notes issued by Pepco. | ||||||||||||||||
(b) | Represents a series of Collateral First Mortgage Bonds (as defined herein) which must be cancelled and released as security for Pepco’s obligations under the corresponding series of senior notes or tax-exempt bonds, at such time as Pepco does not have any first mortgage bonds outstanding (other than its Collateral First Mortgage Bonds). | ||||||||||||||||
(c) | Represents a series of Collateral First Mortgage Bonds which must be cancelled and released as security for Pepco’s obligations under the corresponding series of senior notes or tax-exempt bonds, at such time as Pepco does not have any first mortgage bonds outstanding (other than its Collateral First Mortgage Bonds), except that Pepco may not permit such release of collateral unless Pepco substitutes comparable obligations for such collateral. | ||||||||||||||||
(d) | Represents a series of Collateral First Mortgage Bonds securing a series of senior notes issued by Pepco, which in turn secures a series of tax-exempt bonds issued for the benefit of Pepco. | ||||||||||||||||
Components of Short-Term Debt | ' | ||||||||||||||||
The components of Pepco’s short-term debt at December 31, 2013 and 2012 are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(millions of dollars) | |||||||||||||||||
Commercial paper | $ | 151 | $ | 231 | |||||||||||||
Total | $ | 151 | $ | 231 | |||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||
Components of Long-Term Debt | ' | ||||||||||||||||
The components of long-term debt are shown in the table below: | |||||||||||||||||
Type of Debt | Interest Rate | Maturity | 2013 | 2012 | |||||||||||||
(millions of dollars) | |||||||||||||||||
First Mortgage Bonds | |||||||||||||||||
6.40% | 2013 | $ | — | $ | 250 | ||||||||||||
5.22%(a) | 2016 | 100 | 100 | ||||||||||||||
3.50% | 2023 | 300 | — | ||||||||||||||
4.00% | 2042 | 250 | 250 | ||||||||||||||
650 | 600 | ||||||||||||||||
Unsecured Tax-Exempt Bonds | |||||||||||||||||
5.40% | 2031 | 78 | 78 | ||||||||||||||
78 | 78 | ||||||||||||||||
Medium-Term Notes (unsecured) | |||||||||||||||||
7.56%-7.58% | 2017 | 14 | 14 | ||||||||||||||
6.81% | 2018 | 4 | 4 | ||||||||||||||
7.61% | 2019 | 12 | 12 | ||||||||||||||
7.72% | 2027 | 10 | 10 | ||||||||||||||
40 | 40 | ||||||||||||||||
Notes (unsecured) | |||||||||||||||||
5.00% | 2014 | 100 | 100 | ||||||||||||||
5.00% | 2015 | 100 | 100 | ||||||||||||||
200 | 200 | ||||||||||||||||
Total long-term debt | 968 | 918 | |||||||||||||||
Net unamortized discount | (1 | ) | (1 | ) | |||||||||||||
Current portion of long-term debt | (100 | ) | (250 | ) | |||||||||||||
Total net long-term debt | $ | 867 | $ | 667 | |||||||||||||
(a) | Represents a series of Collateral First Mortgage Bonds securing a series of debt securities issued by DPL. | ||||||||||||||||
Components of Short-Term Debt | ' | ||||||||||||||||
The components of DPL’s short-term debt at December 31, 2013 and 2012 are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(millions of dollars) | |||||||||||||||||
Variable rate demand bonds | $ | 105 | $ | 105 | |||||||||||||
Commercial paper | 147 | 32 | |||||||||||||||
$ | 252 | $ | 137 | ||||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||
Components of Long-Term Debt | ' | ||||||||||||||||
The components of long-term debt are shown in the table below: | |||||||||||||||||
Type of Debt | Interest Rate | Maturity | 2013 | 2012 | |||||||||||||
(millions of dollars) | |||||||||||||||||
First Mortgage Bonds | |||||||||||||||||
6.63 | % | 2013 | $ | — | $ | 69 | |||||||||||
7.63 | % (a) | 2014 | 7 | 7 | |||||||||||||
7.68 | % (a) | 2015-2016 | 17 | 17 | |||||||||||||
7.75 | % | 2018 | 250 | 250 | |||||||||||||
6.8 | % (b)(c) | 2021 | 39 | 39 | |||||||||||||
4.35 | % | 2021 | 200 | 200 | |||||||||||||
4.875 | % (d)(c) | 2029 | 23 | 23 | |||||||||||||
5.8 | % (b)(e) | 2034 | 120 | 120 | |||||||||||||
5.8 | % (b)(e) | 2036 | 105 | 105 | |||||||||||||
761 | 830 | ||||||||||||||||
Variable Rate Term Loan | 100 | — | |||||||||||||||
Total long-term debt | 861 | 830 | |||||||||||||||
Net unamortized discount | (1 | ) | (1 | ) | |||||||||||||
Current portion of long-term debt | (107 | ) | (69 | ) | |||||||||||||
Total net long-term debt | $ | 753 | $ | 760 | |||||||||||||
(a) | Represents a series of Collateral First Mortgage Bonds securing a series of medium term notes issued by ACE. | ||||||||||||||||
(b) | Represents a series of Collateral First Mortgage Bonds (as defined herein) which must be cancelled and released as security for ACE’s obligations under the corresponding series of issuer notes (as defined herein) or tax-exempt bonds, at such time as ACE does not have any first mortgage bonds outstanding (other than its Collateral First Mortgage Bonds). | ||||||||||||||||
(c) | Represents a series of Collateral First Mortgage Bonds securing a series of tax-exempt bonds issued for the benefit of ACE. | ||||||||||||||||
(d) | Represents a series of Collateral First Mortgage Bonds which must be cancelled and released as security for ACE’s obligations under the corresponding series of issuer notes or tax-exempt bonds, at such time as ACE does not have any first mortgage bonds outstanding (other than its Collateral First Mortgage Bonds), except that ACE may not permit such release of collateral unless ACE substitutes comparable obligations for such collateral. | ||||||||||||||||
(e) | Represents a series of Collateral First Mortgage Bonds securing a series of senior notes issued by ACE. | ||||||||||||||||
The components of transiton bonds are shown in the table below: | |||||||||||||||||
Type of Debt | Interest Rate | Maturity | 2013 | 2012 | |||||||||||||
(millions of dollars) | |||||||||||||||||
Transition Bonds | |||||||||||||||||
4.46 | % | 2016 | $ | 8 | $ | 19 | |||||||||||
4.91 | % | 2017 | 46 | 75 | |||||||||||||
5.05 | % | 2020 | 54 | 54 | |||||||||||||
5.55 | % | 2023 | 147 | 147 | |||||||||||||
255 | 295 | ||||||||||||||||
Current portion of long-term debt | (41 | ) | (39 | ) | |||||||||||||
Total net long-term Transition Bonds | $ | 214 | $ | 256 | |||||||||||||
Components of Short-Term Debt | ' | ||||||||||||||||
The components of ACE’s short-term debt at December 31, 2013 and 2012 are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(millions of dollars) | |||||||||||||||||
Commercial paper | $ | 120 | $ | 110 | |||||||||||||
Variable rate demand bonds | 18 | 23 | |||||||||||||||
Total | $ | 138 | $ | 133 | |||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Provision for Consolidated Income Taxes from Continuing Operations | ' | ||||||||||||||||||||||||
Provision for Consolidated Income Taxes – Continuing Operations | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Current Tax (Benefit) Expense | |||||||||||||||||||||||||
Federal | $ | (128 | ) | $ | (166 | ) | $ | (72 | ) | ||||||||||||||||
State and local | (9 | ) | (40 | ) | 12 | ||||||||||||||||||||
Total Current Tax (Benefit) Expense | (137 | ) | (206 | ) | (60 | ) | |||||||||||||||||||
Deferred Tax Expense (Benefit) | |||||||||||||||||||||||||
Federal | 393 | 254 | 163 | ||||||||||||||||||||||
State and local | 65 | 58 | 15 | ||||||||||||||||||||||
Investment tax credit amortization | (2 | ) | (3 | ) | (4 | ) | |||||||||||||||||||
Total Deferred Tax Expense | 456 | 309 | 174 | ||||||||||||||||||||||
Total Consolidated Income Tax Expense Related to Continuing Operations | $ | 319 | $ | 103 | $ | 114 | |||||||||||||||||||
Reconciliation of Consolidated Income Tax Expense from Continuing Operations | ' | ||||||||||||||||||||||||
Reconciliation of Consolidated Income Tax Expense – Continuing Operations | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Income tax at Federal statutory rate | $ | 150 | 35 | % | $ | 112 | 35 | % | $ | 118 | 35 | % | |||||||||||||
Increases (decreases) resulting from: | |||||||||||||||||||||||||
State income taxes, net of Federal effect | 27 | 6.3 | % | 19 | 6 | % | 23 | 6.7 | % | ||||||||||||||||
Asset removal costs | (14 | ) | (3.3 | )% | (11 | ) | (3.4 | )% | (7 | ) | (2.1 | )% | |||||||||||||
Change in estimates and interest related to uncertain and effectively settled tax positions | 56 | 13.1 | % | (8 | ) | (2.6 | )% | (5 | ) | (1.6 | )% | ||||||||||||||
Establishment of valuation allowances related to deferred tax assets | 101 | 23.5 | % | — | — | — | — | ||||||||||||||||||
Other, net | (1 | ) | (0.2 | )% | (9 | ) | (2.9 | )% | (15 | ) | (4.1 | )% | |||||||||||||
Consolidated Income Tax Expense Related to Continuing Operations | $ | 319 | 74.4 | % | $ | 103 | 32.1 | % | $ | 114 | 33.9 | % | |||||||||||||
Components of Consolidated Deferred Income Tax Liabilities (Assets) | ' | ||||||||||||||||||||||||
Components of Consolidated Deferred Tax Liabilities (Assets) | |||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Deferred Tax Liabilities (Assets) | |||||||||||||||||||||||||
Depreciation and other basis differences related to plant and equipment | $ | 2,628 | $ | 2,299 | |||||||||||||||||||||
Deferred electric service and electric restructuring liabilities | 91 | 110 | |||||||||||||||||||||||
Cross-border energy lease investments | (6 | ) | 756 | ||||||||||||||||||||||
Federal and state net operating losses | (350 | ) | (394 | ) | |||||||||||||||||||||
Valuation allowances on state net operating losses | 21 | 21 | |||||||||||||||||||||||
Pension and other postretirement benefits | 135 | 128 | |||||||||||||||||||||||
Deferred taxes on amounts to be collected through future rates | 75 | 58 | |||||||||||||||||||||||
Other (a) | 285 | 204 | (b) | ||||||||||||||||||||||
Total Deferred Tax Liabilities, net | 2,879 | 3,182 | (b) | ||||||||||||||||||||||
Deferred tax assets included in Current Assets | 51 | 28 | |||||||||||||||||||||||
Deferred tax liabilities included in Other Current Liabilities | (2 | ) | (2 | ) | |||||||||||||||||||||
Total Consolidated Deferred Tax Liabilities, net non-current | $ | 2,928 | $ | 3,208 | (b) | ||||||||||||||||||||
(a) | PCI established valuation allowances against certain of these other deferred taxes totaling $101 million in the first quarter of 2013. Management determined during the fourth quarter of 2013 to abandon the further pursuit of the related deferred tax assets and, accordingly, these assets were charged off against the valuation allowances. | ||||||||||||||||||||||||
(b) | The amounts for Other, Total Deferred Tax Liabilities, net and Total Consolidated Deferred Tax Liabilities, net non-current, are presented after the effect of the revision to prior period financial statements discussed in Note (2), “ Significant Accounting Policies – Revision to Prior Period Financial Statements.” | ||||||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | ' | ||||||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Balance as of January 1, | $ | 200 | $ | 357 | $ | 395 | |||||||||||||||||||
Tax positions related to current year: | |||||||||||||||||||||||||
Additions | 3 | 1 | 2 | ||||||||||||||||||||||
Reductions | — | — | — | ||||||||||||||||||||||
Tax positions related to prior years: | |||||||||||||||||||||||||
Additions | 646 | (a) | 79 | 20 | |||||||||||||||||||||
Reductions | (12 | ) | (235 | )(b) | (57 | ) | |||||||||||||||||||
Settlements | (6 | ) | (2 | ) | (3 | ) | |||||||||||||||||||
Balance as of December 31, | $ | 831 | $ | 200 | $ | 357 | |||||||||||||||||||
(a) | These additions of unrecognized tax benefits in 2013 primarily relate to the cross-border energy lease investments of PCI. | ||||||||||||||||||||||||
(b) | These reductions of unrecognized tax benefits in 2012 primarily relate to a resolution reached with the IRS for determining deductible mixed service costs for additions to property, plant and equipment. | ||||||||||||||||||||||||
Other Taxes | ' | ||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Gross Receipts/Delivery | $ | 133 | $ | 135 | $ | 145 | |||||||||||||||||||
Property | 77 | 75 | 71 | ||||||||||||||||||||||
County Fuel and Energy | 153 | 160 | 170 | ||||||||||||||||||||||
Environmental, Use and Other | 65 | 62 | 65 | ||||||||||||||||||||||
Total | $ | 428 | $ | 432 | $ | 451 | |||||||||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||||||||||
Provision for Consolidated Income Taxes from Continuing Operations | ' | ||||||||||||||||||||||||
Provision for Income Taxes | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Current Tax Benefit | |||||||||||||||||||||||||
Federal | $ | (39 | ) | $ | (84 | ) | $ | (19 | ) | ||||||||||||||||
State and local | (1 | ) | (27 | ) | (16 | ) | |||||||||||||||||||
Total Current Tax Benefit | (40 | ) | (111 | ) | (35 | ) | |||||||||||||||||||
Deferred Tax Expense (Benefit) | |||||||||||||||||||||||||
Federal | 96 | 127 | 54 | ||||||||||||||||||||||
State and local | 24 | 33 | 19 | ||||||||||||||||||||||
Investment tax credit amortization | (1 | ) | (1 | ) | (2 | ) | |||||||||||||||||||
Total Deferred Tax Expense | 119 | 159 | 71 | ||||||||||||||||||||||
Total Income Tax Expense | $ | 79 | $ | 48 | $ | 36 | |||||||||||||||||||
Reconciliation of Consolidated Income Tax Expense from Continuing Operations | ' | ||||||||||||||||||||||||
Reconciliation of Income Tax Expense | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Income tax at Federal statutory rate | $ | 80 | 35 | % | $ | 61 | 35 | % | $ | 47 | 35.0 | % | |||||||||||||
Increases (decreases) resulting from: | |||||||||||||||||||||||||
State income taxes, net of Federal effect | 13 | 5.7 | % | 10 | 5.7 | % | 8 | 5.5 | % | ||||||||||||||||
Asset removal costs | (14 | ) | (6.1 | )% | (11 | ) | (6.3 | )% | (7 | ) | (5.0 | )% | |||||||||||||
Change in estimates and interest related to uncertain and effectively settled tax positions | (3 | ) | (1.3 | )% | (11 | ) | (6.3 | )% | (9 | ) | (6.6 | )% | |||||||||||||
Other, net | 3 | 1.2 | % | (1 | ) | (0.5 | )% | (3 | ) | (2.2 | )% | ||||||||||||||
Income Tax Expense | $ | 79 | 34.5 | % | $ | 48 | 27.6 | % | $ | 36 | 26.7 | % | |||||||||||||
Components of Consolidated Deferred Income Tax Liabilities (Assets) | ' | ||||||||||||||||||||||||
Components of Deferred Income Tax Liabilities (Assets) | |||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Deferred Tax Liabilities (Assets) | |||||||||||||||||||||||||
Depreciation and other basis differences related to plant and equipment | $ | 1,240 | $ | 1,105 | |||||||||||||||||||||
Pension and other postretirement benefits | 105 | 111 | |||||||||||||||||||||||
Deferred taxes on amounts to be collected through future rates | 43 | 28 | |||||||||||||||||||||||
Federal and state net operating losses | (169 | ) | (174 | ) | |||||||||||||||||||||
Other | 145 | 140 | |||||||||||||||||||||||
Total Deferred Tax Liabilities, net | 1,364 | 1,210 | |||||||||||||||||||||||
Deferred tax assets included in Current Assets | 48 | 9 | |||||||||||||||||||||||
Total Deferred Tax Liabilities, net non-current | $ | 1,412 | $ | 1,219 | |||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | ' | ||||||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Balance as of January 1 | $ | 91 | $ | 173 | $ | 190 | |||||||||||||||||||
Tax positions related to current year: | |||||||||||||||||||||||||
Additions | 1 | — | — | ||||||||||||||||||||||
Reductions | — | — | — | ||||||||||||||||||||||
Tax positions related to prior years: | |||||||||||||||||||||||||
Additions | 12 | 60 | 12 | ||||||||||||||||||||||
Reductions | (3 | ) | (142 | )(a) | (26 | ) | |||||||||||||||||||
Settlements | — | — | (3 | ) | |||||||||||||||||||||
Balance as of December 31 | $ | 101 | $ | 91 | $ | 173 | |||||||||||||||||||
(a) | These reductions of unrecognized tax benefits in 2012 primarily relate to a resolution reached with the IRS for determining deductible mixed service costs for additions to property, plant and equipment. | ||||||||||||||||||||||||
Other Taxes | ' | ||||||||||||||||||||||||
Taxes other than income taxes for each year are shown below. These amounts are recoverable through rates. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Gross Receipts/Delivery | $ | 108 | $ | 106 | $ | 109 | |||||||||||||||||||
Property | 45 | 46 | 44 | ||||||||||||||||||||||
County Fuel and Energy | 153 | 160 | 170 | ||||||||||||||||||||||
Environmental, Use and Other | 62 | 60 | 59 | ||||||||||||||||||||||
Total | $ | 368 | $ | 372 | $ | 382 | |||||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||||||||||
Provision for Consolidated Income Taxes from Continuing Operations | ' | ||||||||||||||||||||||||
Provision for Income Taxes | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Current Tax (Benefit) Expense | |||||||||||||||||||||||||
Federal | $ | (8 | ) | $ | (9 | ) | $ | (22 | ) | ||||||||||||||||
State and local | — | (1 | ) | 8 | |||||||||||||||||||||
Total Current Tax Benefit | (8 | ) | (10 | ) | (14 | ) | |||||||||||||||||||
Deferred Tax Expense (Benefit) | |||||||||||||||||||||||||
Federal | 53 | 44 | 53 | ||||||||||||||||||||||
State and local | 12 | 11 | 4 | ||||||||||||||||||||||
Investment tax credit amortization | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||
Total Deferred Tax Expense | 64 | 54 | 56 | ||||||||||||||||||||||
Total Income Tax Expense | $ | 56 | $ | 44 | $ | 42 | |||||||||||||||||||
Reconciliation of Consolidated Income Tax Expense from Continuing Operations | ' | ||||||||||||||||||||||||
Reconciliation of Income Tax Expense | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Income tax at Federal statutory rate | $ | 51 | 35 | % | $ | 41 | 35 | % | $ | 40 | 35 | % | |||||||||||||
Increases (decreases) resulting from: | |||||||||||||||||||||||||
State income taxes, net of Federal effect | 8 | 5.5 | % | 6 | 5.1 | % | 6 | 5.3 | % | ||||||||||||||||
Change in estimates and interest related to uncertain and effectively settled tax positions | — | — | — | — | (3 | ) | (2.7 | )% | |||||||||||||||||
Other, net | (3 | ) | (1.9 | )% | (3 | ) | (2.5 | )% | (1 | ) | (0.4 | )% | |||||||||||||
Income Tax Expense | $ | 56 | 38.6 | % | $ | 44 | 37.6 | % | $ | 42 | 37.2 | % | |||||||||||||
Components of Consolidated Deferred Income Tax Liabilities (Assets) | ' | ||||||||||||||||||||||||
Components of Deferred Income Tax Liabilities (Assets) | |||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Deferred Tax Liabilities (Assets) | |||||||||||||||||||||||||
Depreciation and other basis differences related to plant and equipment | $ | 712 | $ | 623 | |||||||||||||||||||||
Deferred taxes on amounts to be collected through future rates | 16 | 15 | |||||||||||||||||||||||
Federal and state net operating losses | (125 | ) | (80 | ) | |||||||||||||||||||||
Pension and other postretirement benefits | 80 | 85 | |||||||||||||||||||||||
Electric restructuring liabilities | (5 | ) | (5 | ) | |||||||||||||||||||||
Other | 80 | 49 | |||||||||||||||||||||||
Total Deferred Tax Liabilities, net | 758 | 687 | |||||||||||||||||||||||
Deferred tax assets included in Current Assets | 59 | 11 | |||||||||||||||||||||||
Deferred tax liabilities included in Other Current Liabilities | (1 | ) | (1 | ) | |||||||||||||||||||||
Total Deferred Tax Liabilities, net non-current | $ | 816 | $ | 697 | |||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | ' | ||||||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Balance as of January 1 | $ | 9 | $ | 35 | $ | 40 | |||||||||||||||||||
Tax positions related to current year: | |||||||||||||||||||||||||
Additions | — | — | — | ||||||||||||||||||||||
Reductions | — | — | — | ||||||||||||||||||||||
Tax positions related to prior years: | |||||||||||||||||||||||||
Additions | — | — | 7 | ||||||||||||||||||||||
Reductions | — | (26 | )(a) | (12 | ) | ||||||||||||||||||||
Settlements | — | — | — | ||||||||||||||||||||||
Balance as of December 31 | $ | 9 | $ | 9 | $ | 35 | |||||||||||||||||||
(a) | These reductions of unrecognized tax benefits in 2012 primarily relate to a resolution reached with the IRS for determining deductible mixed service costs for additions to property, plant and equipment. | ||||||||||||||||||||||||
Other Taxes | ' | ||||||||||||||||||||||||
These amounts are recoverable through rates. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Gross Receipts/Delivery | $ | 15 | $ | 14 | $ | 15 | |||||||||||||||||||
Property | 24 | 21 | 19 | ||||||||||||||||||||||
Environmental, Use and Other | 1 | 1 | 3 | ||||||||||||||||||||||
Total | $ | 40 | $ | 36 | $ | 37 | |||||||||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||||||||||
Provision for Consolidated Income Taxes from Continuing Operations | ' | ||||||||||||||||||||||||
Provision for Consolidated Income Taxes | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Current Tax (Benefit) Expense | |||||||||||||||||||||||||
Federal | $ | (23 | ) | $ | (31 | ) | $ | (9 | ) | ||||||||||||||||
State and local | (10 | ) | (12 | ) | 1 | ||||||||||||||||||||
Total Current Tax Benefit | (33 | ) | (43 | ) | (8 | ) | |||||||||||||||||||
Deferred Tax Expense (Benefit) | |||||||||||||||||||||||||
Federal | 28 | 46 | 35 | ||||||||||||||||||||||
State and local | 25 | 16 | 7 | ||||||||||||||||||||||
Investment tax credit amortization | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||
Total Deferred Tax Expense | 52 | 61 | 41 | ||||||||||||||||||||||
Total Consolidated Income Tax Expense | $ | 19 | $ | 18 | $ | 33 | |||||||||||||||||||
Reconciliation of Consolidated Income Tax Expense from Continuing Operations | ' | ||||||||||||||||||||||||
Reconciliation of Consolidated Income Tax Expense | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Income tax at Federal statutory rate | $ | 24 | 35 | % | $ | 19 | 35 | % | $ | 25 | 35 | % | |||||||||||||
Increases (decreases) resulting from: | |||||||||||||||||||||||||
State income taxes, net of Federal effect | 5 | 7.2 | % | 3 | 5.7 | % | 4 | 6 | % | ||||||||||||||||
Change in estimates and interest related to uncertain and effectively settled tax positions | (9 | ) | (13.0 | )% | (1 | ) | (1.9 | )% | 5 | 6.9 | % | ||||||||||||||
Plant basis adjustments | (2 | ) | (2.9 | )% | (1 | ) | (1.9 | )% | — | — | |||||||||||||||
Investment tax credit amortization | (1 | ) | (1.4 | )% | (1 | ) | (1.9 | )% | (1 | ) | (1.3 | )% | |||||||||||||
Other, net | 2 | 2.6 | % | (1 | ) | (1.0 | )% | — | (0.8 | )% | |||||||||||||||
Consolidated Income Tax Expense | $ | 19 | 27.5 | % | $ | 18 | 34 | % | $ | 33 | 45.8 | % | |||||||||||||
Components of Consolidated Deferred Income Tax Liabilities (Assets) | ' | ||||||||||||||||||||||||
Components of Consolidated Deferred Income Tax Liabilities (Assets) | |||||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Deferred Tax Liabilities (Assets) | |||||||||||||||||||||||||
Depreciation and other basis differences related to plant and equipment | $ | 627 | $ | 538 | |||||||||||||||||||||
Deferred taxes on amounts to be collected through future rates | 16 | 15 | |||||||||||||||||||||||
Payment for termination of purchased power contracts with NUGs | 43 | 47 | |||||||||||||||||||||||
Deferred electric service and electric restructuring liabilities | 96 | 116 | |||||||||||||||||||||||
Pension and other postretirement benefits | 29 | 34 | |||||||||||||||||||||||
Purchased energy | 2 | 3 | |||||||||||||||||||||||
Federal and state net operating loss | (49 | ) | (54 | ) | |||||||||||||||||||||
Other | 55 | 58 | |||||||||||||||||||||||
Total Deferred Tax Liabilities, net | 819 | 757 | |||||||||||||||||||||||
Deferred tax assets included in Current Assets | 15 | 10 | |||||||||||||||||||||||
Deferred tax liabilities included in Other Current Liabilities | (1 | ) | (1 | ) | |||||||||||||||||||||
Total Consolidated Deferred Tax Liabilities, net non-current | $ | 833 | $ | 766 | |||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | ' | ||||||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Balance as of January 1 | $ | 17 | $ | 79 | $ | 83 | |||||||||||||||||||
Tax positions related to current year: | |||||||||||||||||||||||||
Additions | 2 | 1 | 2 | ||||||||||||||||||||||
Reductions | — | — | — | ||||||||||||||||||||||
Tax positions related to prior years: | |||||||||||||||||||||||||
Additions | 1 | 8 | 4 | ||||||||||||||||||||||
Reductions | (5 | ) | (69 | )(a) | (10 | ) | |||||||||||||||||||
Settlements | (6 | ) | (2 | ) | — | ||||||||||||||||||||
Balance as of December 31 | $ | 9 | $ | 17 | $ | 79 | |||||||||||||||||||
(a) | These reductions of unrecognized tax benefits in 2012 primarily relate to a resolution reached with the IRS for determining deductible mixed service costs for additions to property, plant and equipment. | ||||||||||||||||||||||||
Other Taxes | ' | ||||||||||||||||||||||||
These amounts are recoverable through rates. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Gross Receipts/Delivery | $ | 10 | $ | 14 | $ | 20 | |||||||||||||||||||
Property | 3 | 3 | 3 | ||||||||||||||||||||||
Environmental, Use and Other | 1 | 1 | 2 | ||||||||||||||||||||||
Total | $ | 14 | $ | 18 | $ | 25 | |||||||||||||||||||
Stock_Based_Compensation_Divid1
Stock Based Compensation, Dividend Restrictions, and Calculations of Earnings Per Share of Common Stock (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||
Schedule of Restricted Stock and Restricted Stock Units | ' | ||||||||||||
For performance-based restricted stock unit awards, the table reflects awards projected, for purposes of computing the weighted average grant date fair value, to achieve 100% of targeted performance criteria for each outstanding award cycle. | |||||||||||||
Number | Weighted | ||||||||||||
of Shares | Average Grant | ||||||||||||
Date Fair Value | |||||||||||||
Balance as of January 1, 2013 | |||||||||||||
Time-based restricted stock | 134,607 | $ | 16.56 | ||||||||||
Time-based restricted stock units | 513,204 | 19.42 | |||||||||||
Performance-based restricted stock units | 1,032,396 | 20.34 | |||||||||||
Total | 1,680,207 | ||||||||||||
Granted during 2013 | |||||||||||||
Time-based restricted stock units | 237,733 | 19.7 | |||||||||||
Performance-based restricted stock units | 444,969 | 17.03 | |||||||||||
Total | 682,702 | ||||||||||||
Vested during 2013 | |||||||||||||
Time-based restricted stock | (134,607 | ) | 16.56 | ||||||||||
Time-based restricted stock units | (123,021 | ) | 18.45 | ||||||||||
Performance-based restricted stock units | (314,995 | ) | 20 | ||||||||||
Total | (572,623 | ) | |||||||||||
Forfeited during 2013 | |||||||||||||
Time-based restricted stock units | (44,362 | ) | 19.64 | ||||||||||
Performance-based restricted stock units | (92,540 | ) | 19.91 | ||||||||||
Total | (136,902 | ) | |||||||||||
Balance as of December 31, 2013 | |||||||||||||
Time-based restricted stock | — | — | |||||||||||
Time-based restricted stock units | 583,554 | 19.34 | |||||||||||
Performance-based restricted stock units | 1,069,830 | 19.06 | |||||||||||
Total | 1,653,384 | ||||||||||||
Weighted Average Grant Date Fair Value Per Share | ' | ||||||||||||
The following table provides the weighted average grant date fair value per share of those awards granted during each of the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average grant-date fair value of each unrestricted stock award granted during the year | $ | — | $ | 18.85 | $ | — | |||||||
Weighted average grant-date fair value of each time-based restricted stock unit award granted during the year | $ | 19.7 | $ | 19.69 | $ | 18.87 | |||||||
Weighted average grant-date fair value of each performance-based restricted stock unit award granted during the year | $ | 17.03 | $ | 21.13 | $ | 19.56 | |||||||
Dividends Received from Subsidiaries | ' | ||||||||||||
For the years ended December 31, 2013, 2012 and 2011, dividends paid by PHI’s subsidiaries were as follows: | |||||||||||||
Subsidiary | 2013 | 2012 | 2011 | ||||||||||
(millions of dollars) | |||||||||||||
Pepco (paid to PHI) | $ | 46 | $ | 35 | $ | 25 | |||||||
DPL (paid to Conectiv) | 30 | — | 60 | ||||||||||
ACE (paid to Conectiv) | 60 | 35 | — | ||||||||||
Total | $ | 136 | $ | 70 | $ | 85 | |||||||
Calculation of Earnings Per Share of Common Stock | ' | ||||||||||||
The numerator and denominator for basic and diluted earnings per share of common stock calculations are shown below. | |||||||||||||
For the Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(millions of dollars, except per share data) | |||||||||||||
Income (Numerator): | |||||||||||||
Net income from continuing operations | $ | 110 | $ | 218 | $ | 222 | |||||||
Net (loss) income from discontinued operations | (322 | ) | 67 | 35 | |||||||||
Net (loss) income | $ | (212 | ) | $ | 285 | $ | 257 | ||||||
Shares (Denominator) (in millions): | |||||||||||||
Weighted average shares outstanding for basic computation: | |||||||||||||
Average shares outstanding | 246 | 229 | 226 | ||||||||||
Adjustment to shares outstanding | — | — | — | ||||||||||
Weighted Average Shares Outstanding for Computation of Basic Earnings Per Share of Common Stock | 246 | 229 | 226 | ||||||||||
Net effect of potentially dilutive shares (a) | — | 1 | — | ||||||||||
Weighted Average Shares Outstanding for Computation of Diluted Earnings Per Share of Common Stock | 246 | 230 | 226 | ||||||||||
Basic earnings per share of common stock from continuing operations | $ | 0.45 | $ | 0.95 | $ | 0.98 | |||||||
Basic (loss) earnings per share of common stock from discontinued operations | (1.31 | ) | 0.3 | 0.16 | |||||||||
Basic (loss) earnings per share | $ | (0.86 | ) | $ | 1.25 | $ | 1.14 | ||||||
Diluted earnings per share of common stock from continuing operations | $ | 0.45 | $ | 0.95 | $ | 0.98 | |||||||
Diluted (loss) earnings per share of common stock from discontinued operations | (1.31 | ) | 0.29 | 0.16 | |||||||||
Diluted (loss) earnings per share | $ | (0.86 | ) | $ | 1.24 | $ | 1.14 | ||||||
(a) | The number of options to purchase shares of common stock that were excluded from the calculation of diluted earnings per share as they are considered to be anti-dilutive were zero, zero and 14,900 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Common Stock Reserved and Unissued | ' | ||||||||||||
Pepco Holdings Common Stock Reserved and Unissued | |||||||||||||
The following table presents Pepco Holdings’ common stock reserved and unissued at December 31, 2013: | |||||||||||||
Name of Plan | Number of | ||||||||||||
Shares | |||||||||||||
DRP | 6,104,591 | ||||||||||||
Pepco Holdings Long-Term Incentive Plan (a) | 7,450,404 | ||||||||||||
Pepco Holdings 2012 Long-Term Incentive Plan | 7,971,832 | ||||||||||||
Pepco Holdings Non-Management Directors Compensation Plan | 457,211 | ||||||||||||
Pepco Holdings Retirement Savings Plan | 4,585,079 | ||||||||||||
Total | 26,569,117 | ||||||||||||
(a) | No further awards will be made under this plan. |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value of Derivative Instruments by Balance Sheet Location | ' | ||||||||||||||||||||
The tables below identify the balance sheet location and fair values of derivative instruments as of December 31, 2013 and 2012: | |||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Balance Sheet Caption | Derivatives | Other | Gross | Effects of | Net | ||||||||||||||||
Designated | Derivative | Derivative | Cash | Derivative | |||||||||||||||||
as Hedging | Instruments | Instruments | Collateral | Instruments | |||||||||||||||||
Instruments | and | ||||||||||||||||||||
Netting | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Derivative assets (current assets) | $ | — | $ | 1 | $ | 1 | $ | (1 | ) | $ | — | ||||||||||
Total Derivative asset | $ | — | $ | 1 | $ | 1 | $ | (1 | ) | $ | — | ||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Balance Sheet Caption | Derivatives | Other | Gross | Effects of | Net | ||||||||||||||||
Designated | Derivative | Derivative | Cash | Derivative | |||||||||||||||||
as Hedging | Instruments | Instruments | Collateral | Instruments | |||||||||||||||||
Instruments | and | ||||||||||||||||||||
Netting | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Derivative assets (non-current assets) | $ | — | $ | 8 | $ | 8 | $ | — | $ | 8 | |||||||||||
Total Derivative assets | — | 8 | 8 | — | 8 | ||||||||||||||||
Derivative liabilities (current liabilities) | — | (4 | ) | (4 | ) | — | (4 | ) | |||||||||||||
Derivative liabilities (non-current liabilities) | — | (11 | ) | (11 | ) | — | (11 | ) | |||||||||||||
Total Derivative liabilities | — | (15 | ) | (15 | ) | — | (15 | ) | |||||||||||||
Net Derivative liability | $ | — | $ | (7 | ) | $ | (7 | ) | $ | — | $ | (7 | ) | ||||||||
Schedule of Cash Collateral Offset Against Derivative Positions | ' | ||||||||||||||||||||
The amount of cash collateral that was offset against these derivative positions is as follows: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Cash collateral received from counterparties with the obligation to return | $ | (1 | ) | $ | — | ||||||||||||||||
Cash Flow Hedges Included in Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||||
The data in the following tables indicate the cumulative net loss after-tax related to terminated cash flow hedges by contract type included in AOCL, the portion of AOCL expected to be reclassified to income during the next 12 months, and the maximum hedge or deferral term: | |||||||||||||||||||||
As of December 31, 2013 | Maximum | ||||||||||||||||||||
Contracts | Accumulated | Portion Expected | Term | ||||||||||||||||||
Other | to be Reclassified | ||||||||||||||||||||
Comprehensive Loss | to Income during | ||||||||||||||||||||
After-tax | the Next 12 Months | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Interest rate | $ | 9 | $ | 1 | 224 months | ||||||||||||||||
Total | $ | 9 | $ | 1 | |||||||||||||||||
As of December 31, 2012 | Maximum | ||||||||||||||||||||
Contracts | Accumulated | Portion Expected to | Term | ||||||||||||||||||
Other | be Reclassified | ||||||||||||||||||||
Comprehensive Loss | to Income during | ||||||||||||||||||||
After-tax | the Next 12 Months | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Interest rate | $ | 10 | $ | 1 | 236 months | ||||||||||||||||
Total | $ | 10 | $ | 1 | |||||||||||||||||
Net Unrealized Derivative Gain (Loss) Deferred as Regulatory Asset or Liability | ' | ||||||||||||||||||||
The following table indicates the net unrealized and net realized derivative gains and (losses) arising during the period associated with these derivatives that were recognized in the consolidated statements of (loss) income (through Fuel and purchased energy expense) and that were also deferred as Regulatory assets for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Net unrealized gain (loss) arising during the period | $ | 4 | $ | (6 | ) | $ | (13 | ) | |||||||||||||
Net realized loss recognized during the period | (4 | ) | (16 | ) | (22 | ) | |||||||||||||||
Net Outstanding Commodity Forward Contracts that Did Not Qualify for Hedge Accounting | ' | ||||||||||||||||||||
As of December 31, 2013 and 2012, the quantities and positions of DPL’s net outstanding natural gas commodity forward contracts and ACE’s capacity derivatives associated with the SOCAs that did not qualify for hedge accounting were: | |||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||
Commodity | Quantity | Net Position | Quantity | Net Position | |||||||||||||||||
DPL—Natural gas (one Million British Thermal Units (MMBtu)) | 3,977,500 | Long | 3,838,000 | Long | |||||||||||||||||
ACE—Capacity (MWs) | — | — | 180 | Long | |||||||||||||||||
Discontinued Operations [Member] | ' | ||||||||||||||||||||
Fair Value of Derivative Instruments by Balance Sheet Location | ' | ||||||||||||||||||||
The table below identifies the balance sheet location and fair values of the retail electric and natural gas supply businesses’ derivative instruments as of December 31, 2012: | |||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Balance Sheet Caption | Derivatives | Other | Gross | Effects of | Net | ||||||||||||||||
Designated | Derivative | Derivative | Cash | Derivative | |||||||||||||||||
as Hedging | Instruments | Instruments | Collateral | Instruments | |||||||||||||||||
Instruments (a) | and | ||||||||||||||||||||
Netting | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Assets held for disposition (current assets) | $ | — | $ | 1 | $ | 1 | $ | — | $ | 1 | |||||||||||
Total Derivative assets | — | 1 | 1 | — | 1 | ||||||||||||||||
Liabilities associated with assets held for disposition (current liabilities) | (10 | ) | (9 | ) | (19 | ) | 16 | (3 | ) | ||||||||||||
Liabilities associated with assets held for disposition (non-current liabilities) | (1 | ) | (1 | ) | (2 | ) | 2 | — | |||||||||||||
Total Derivative liabilities | (11 | ) | (10 | ) | (21 | ) | 18 | (3 | ) | ||||||||||||
Net Derivative (liability) asset | $ | (11 | ) | $ | (9 | ) | $ | (20 | ) | $ | 18 | $ | (2 | ) | |||||||
(a) | Amounts included in Derivatives Designated as Hedging Instruments primarily consist of derivatives that were designated as cash flow hedges prior to Pepco Energy Services’ election to discontinue cash flow hedge accounting for these derivatives. | ||||||||||||||||||||
Net Outstanding Commodity Forward Contracts that Did Not Qualify for Hedge Accounting | ' | ||||||||||||||||||||
As of December 31, 2012, the retail electric and natural gas supply businesses of Pepco Energy Srvices had the following net outstanding commodity forward contract quantities and net position on derivatives that did not qualify for hedge accounting: | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Commodity | Quantity | Net Position | |||||||||||||||||||
Financial transmission rights (MWh) | 181,008 | Long | |||||||||||||||||||
Electricity (MWh) | 261,240 | Long | |||||||||||||||||||
Natural gas (MMBtu) | 2,867,500 | Long | |||||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||||||
Fair Value of Derivative Instruments by Balance Sheet Location | ' | ||||||||||||||||||||
The tables below identify the balance sheet location and fair values of derivative instruments as of December 31, 2013 and 2012: | |||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Balance Sheet Caption | Derivatives | Other | Gross | Effects of | Net | ||||||||||||||||
Designated | Derivative | Derivative | Cash | Derivative | |||||||||||||||||
as Hedging | Instruments | Instruments | Collateral | Instruments | |||||||||||||||||
Instruments | and | ||||||||||||||||||||
Netting | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Derivative assets (current assets) | $ | — | $ | 1 | $ | 1 | $ | (1 | ) | $ | — | ||||||||||
Total Derivative asset | $ | — | $ | 1 | $ | 1 | $ | (1 | ) | $ | — | ||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Balance Sheet Caption | Derivatives | Other | Gross | Effects of | Net | ||||||||||||||||
Designated | Derivative | Derivative | Cash | Derivative | |||||||||||||||||
as Hedging | Instruments | Instruments | Collateral | Instruments | |||||||||||||||||
Instruments | and | ||||||||||||||||||||
Netting | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Derivative liabilities (current liabilities) | $ | — | $ | (4 | ) | $ | (4 | ) | $ | — | $ | (4 | ) | ||||||||
Total Derivative liability | $ | — | $ | (4 | ) | $ | (4 | ) | $ | — | $ | (4 | ) | ||||||||
Schedule of Cash Collateral Offset Against Derivative Positions | ' | ||||||||||||||||||||
The amount of cash collateral that was offset against these derivative positions is as follows: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Cash collateral received from counterparties with the obligation to return | $ | (1 | ) | $ | — | ||||||||||||||||
Net Unrealized Derivative Gain (Loss) Deferred as Regulatory Asset or Liability | ' | ||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011, the net unrealized derivative losses arising during the period that were deferred as Regulatory assets and the net realized losses recognized in the statements of income (through Purchased energy and Gas purchased expense) that were also deferred as Regulatory assets are provided in the table below: | |||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Net unrealized gain (loss) arising during the period | $ | 1 | $ | (3 | ) | $ | (13 | ) | |||||||||||||
Net realized loss recognized during the period | (4 | ) | (16 | ) | (22 | ) | |||||||||||||||
Net Outstanding Commodity Forward Contracts that Did Not Qualify for Hedge Accounting | ' | ||||||||||||||||||||
As of December 31, 2013 and 2012, DPL had the following net outstanding natural gas commodity forward contracts that did not qualify for hedge accounting: | |||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||
Commodity | Quantity | Net Position | Quantity | Net Position | |||||||||||||||||
Natural Gas (One Million British Thermal Units (MMBtu)) | 3,977,500 | Long | 3,838,000 | Long |
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||||||||
The following tables set forth, by level within the fair value hierarchy, PHI’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2013 and 2012. As required by the guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. PHI’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Natural gas (c) | $ | 1 | $ | 1 | $ | — | $ | — | |||||||||||||||||
Restricted cash and cash equivalents | |||||||||||||||||||||||||
Treasury fund | 34 | 34 | — | — | |||||||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Money market funds | 15 | 15 | — | — | |||||||||||||||||||||
Life insurance contracts | 66 | — | 47 | 19 | |||||||||||||||||||||
$ | 116 | $ | 50 | $ | 47 | $ | 19 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Executive deferred compensation plan liabilities | |||||||||||||||||||||||||
Life insurance contracts | $ | 30 | $ | — | $ | 30 | $ | — | |||||||||||||||||
$ | 30 | $ | — | $ | 30 | $ | |||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2013. | ||||||||||||||||||||||||
(b) | The fair values of derivative assets and liabilities reflect netting by counterparty before the impact of collateral. | ||||||||||||||||||||||||
(c) | Represents natural gas swaps purchased by DPL as part of a natural gas hedging program approved by the DPSC. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Capacity (d) | $ | 8 | $ | — | $ | — | $ | 8 | |||||||||||||||||
Restricted cash equivalents | |||||||||||||||||||||||||
Treasury fund | 27 | 27 | — | — | |||||||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Money market funds | 17 | 17 | — | — | |||||||||||||||||||||
Life insurance contracts | 60 | — | 42 | 18 | |||||||||||||||||||||
$ | 112 | $ | 44 | $ | 42 | $ | 26 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Natural gas (c) | $ | 4 | $ | — | $ | — | $ | 4 | |||||||||||||||||
Capacity (d) | 11 | — | — | 11 | |||||||||||||||||||||
Executive deferred compensation plan liabilities | |||||||||||||||||||||||||
Life insurance contracts | 28 | — | 28 | — | |||||||||||||||||||||
$ | 43 | $ | — | $ | 28 | $ | 15 | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2012. | ||||||||||||||||||||||||
(b) | The fair values of derivative assets and liabilities reflect netting by counterparty before the impact of collateral. | ||||||||||||||||||||||||
(c) | Represents natural gas options purchased by DPL as part of a natural gas hedging program approved by the DPSC. | ||||||||||||||||||||||||
(d) | Represents derivatives associated with the ACE SOCAs. | ||||||||||||||||||||||||
Summary of Primary Unobservable Inputs Used to Determine Fair Value of Level 3 Instruments and Range of Values that Could be Used for Those Inputs | ' | ||||||||||||||||||||||||
The tables below summarize the primary unobservable inputs used to determine the fair value of PHI’s level 3 instruments and the range of values that could be used for those inputs as of December 31, 2012: | |||||||||||||||||||||||||
Type of Instrument | Fair Value at | Valuation Technique | Unobservable Input | Range | |||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Natural gas options | $ | (4 | ) | Option model | Volatility factor | 1.57 - 2.00 | |||||||||||||||||||
Capacity contracts, net | (3 | ) | Discounted cash flow | Discount rate | 5% - 9% | ||||||||||||||||||||
Reconciliations of Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||||||||||||
Reconciliations of the beginning and ending balances of PHI’s fair value measurements using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012 are shown below: | |||||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Natural | Life | Capacity | Natural | Life | Capacity | ||||||||||||||||||||
Gas | Insurance | Gas | Insurance | ||||||||||||||||||||||
Contracts | Contracts | ||||||||||||||||||||||||
(millions of dollars) | (millions of dollars) | ||||||||||||||||||||||||
Balance as of January 1 | $ | (4 | ) | $ | 18 | $ | (3 | ) | $ | (15 | ) | $ | 17 | $ | — | ||||||||||
Total gains (losses) (realized and unrealized): | |||||||||||||||||||||||||
Included in income | — | 4 | — | — | 4 | — | |||||||||||||||||||
Included in accumulated other comprehensive loss | — | — | — | — | — | — | |||||||||||||||||||
Included in regulatory liabilities | — | — | 3 | (2 | ) | — | (3 | ) | |||||||||||||||||
Purchases | — | — | — | — | — | — | |||||||||||||||||||
Issuances | — | (3 | ) | — | — | (3 | ) | — | |||||||||||||||||
Settlements | 4 | — | — | 13 | — | — | |||||||||||||||||||
Transfers in (out) of level 3 | — | — | — | — | — | — | |||||||||||||||||||
Balance as of December 31 | $ | — | $ | 19 | $ | — | $ | (4 | ) | $ | 18 | $ | (3 | ) | |||||||||||
Gains or (Losses) on Level 3 Instruments Included in Income | ' | ||||||||||||||||||||||||
The breakdown of realized and unrealized gains or (losses) on level 3 instruments included in income as a component of Other income or Other operation and maintenance expense for the periods below were as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Total net gains included in income for the period | $ | 4 | $ | 4 | |||||||||||||||||||||
Change in unrealized gains relating to assets still held at reporting date | $ | 4 | $ | 4 | |||||||||||||||||||||
Fair Value of Financial Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (a) | $ | 4,850 | $ | 0 | $ | 4,289 | $ | 561 | |||||||||||||||||
Transition Bonds (b) | 284 | 0 | 284 | 0 | |||||||||||||||||||||
Long-term project funding | 12 | 0 | 0 | 12 | |||||||||||||||||||||
$ | 5,146 | $ | 0 | $ | 4,573 | $ | 573 | ||||||||||||||||||
(a) | The carrying amount for Long-term debt is $4,456 million as of December 31, 2013. | ||||||||||||||||||||||||
(b) | The carrying amount for Transition Bonds, including amounts due within one year, is $255 million as of December 31, 2013. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (b) | $ | 5,004 | $ | — | $ | 4,517 | $ | 487 | |||||||||||||||||
Transition Bonds (c) | 341 | — | 341 | — | |||||||||||||||||||||
Long-term project funding | 13 | — | — | 13 | |||||||||||||||||||||
$ | 5,358 | $ | — | $ | 4,858 | $ | 500 | ||||||||||||||||||
(a) | Certain debt instruments that were categorized as level 1 at December 31, 2012, have been reclassified as level 2 to conform to the current period presentation. | ||||||||||||||||||||||||
(b) | The carrying amount for Long-term debt is $4,177 million as of December 31, 2012. | ||||||||||||||||||||||||
(c) | The carrying amount for Transition Bonds, including amounts due within one year, is $295 million as of December 31, 2012. | ||||||||||||||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||||||||
The following tables set forth, by level within the fair value hierarchy, Pepco’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2013 and 2012. As required by the guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Pepco’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Restricted cash equivalents | |||||||||||||||||||||||||
Treasury fund | $ | 3 | $ | 3 | $ | — | $ | — | |||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Money market funds | 13 | 13 | — | — | |||||||||||||||||||||
Life insurance contracts | 61 | — | 43 | 18 | |||||||||||||||||||||
$ | 77 | $ | 16 | $ | 43 | $ | 18 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Executive deferred compensation plan liabilities | |||||||||||||||||||||||||
Life insurance contracts | $ | 7 | $ | — | $ | 7 | $ | — | |||||||||||||||||
$ | 7 | $ | — | $ | 7 | $ | — | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2013. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Money market funds | $ | 15 | $ | 15 | $ | — | $ | — | |||||||||||||||||
Life insurance contracts | 56 | — | 38 | 18 | |||||||||||||||||||||
$ | 71 | $ | 15 | $ | 38 | $ | 18 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Executive deferred compensation plan liabilities | |||||||||||||||||||||||||
Life insurance contracts | $ | 9 | $ | — | $ | 9 | $ | — | |||||||||||||||||
$ | 9 | $ | — | $ | 9 | $ | — | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2012. | ||||||||||||||||||||||||
Reconciliations of Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||||||||||||
Reconciliations of the beginning and ending balances of Pepco’s fair value measurements using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012 are shown below. | |||||||||||||||||||||||||
Life Insurance Contracts | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Balance as of January 1 | $ | 18 | $ | 17 | |||||||||||||||||||||
Total gains (losses) (realized and unrealized): | |||||||||||||||||||||||||
Included in income | 4 | 4 | |||||||||||||||||||||||
Included in accumulated other comprehensive loss | — | — | |||||||||||||||||||||||
Purchases | — | — | |||||||||||||||||||||||
Issuances | (3 | ) | (3 | ) | |||||||||||||||||||||
Settlements | (1 | ) | — | ||||||||||||||||||||||
Transfers in (out) of level 3 | — | — | |||||||||||||||||||||||
Balance as of December 31 | $ | 18 | $ | 18 | |||||||||||||||||||||
Gains or (Losses) on Level 3 Instruments Included in Income | ' | ||||||||||||||||||||||||
The breakdown of realized and unrealized gains on level 3 instruments included in income as a component of Other operation and maintenance expense for the periods below were as follows: | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Total gains included in income for the period | $ | 4 | $ | 4 | |||||||||||||||||||||
Change in unrealized gains relating to assets still held at reporting date | $ | 4 | $ | 4 | |||||||||||||||||||||
Fair Value of Financial Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (a) | $ | 2,127 | $ | — | $ | 2,127 | $ | — | |||||||||||||||||
$ | 2,127 | $ | — | $ | 2,127 | $ | — | ||||||||||||||||||
(a) | The carrying amount for Long-term debt is $1,899 million as of December 31, 2013. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1)(a) | (Level 2)(a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (b) | $ | 2,160 | $ | — | $ | 2,160 | $ | — | |||||||||||||||||
$ | 2,160 | $ | — | $ | 2,160 | $ | — | ||||||||||||||||||
(a) | Certain debt instruments that were categorized as level 1 at December 31, 2012, have been reclassified as level 2 to conform to the current period presentation. | ||||||||||||||||||||||||
(b) | The carrying amount for Long-term debt is $1,701 million as of December 31, 2012. | ||||||||||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||||||||
The following tables set forth, by level within the fair value hierarchy, DPL’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2013 and 2012. As required by the guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. DPL’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Natural gas (c) | $ | 1 | $ | 1 | $ | — | $ | — | |||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Money market funds | 1 | 1 | — | — | |||||||||||||||||||||
Life insurance contracts | 1 | — | — | 1 | |||||||||||||||||||||
$ | 3 | $ | 2 | $ | — | $ | 1 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Life insurance contracts | $ | 1 | $ | — | $ | 1 | $ | — | |||||||||||||||||
$ | 1 | $ | — | $ | 1 | $ | — | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2013. | ||||||||||||||||||||||||
(b) | The fair value of derivative assets reflect netting by counterparty before the impact of collateral. | ||||||||||||||||||||||||
(c) | Represents natural gas swaps purchased by DPL as part of a natural gas hedging program approved by the DPSC. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Executive deferred compensation plan assets | |||||||||||||||||||||||||
Money market funds | $ | 2 | $ | 2 | $ | — | $ | — | |||||||||||||||||
Life insurance contracts | 1 | — | — | 1 | |||||||||||||||||||||
$ | 3 | $ | 2 | $ | — | $ | 1 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Natural gas (c) | $ | 4 | $ | — | $ | — | $ | 4 | |||||||||||||||||
$ | 4 | $ | — | $ | — | $ | 4 | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2012. | ||||||||||||||||||||||||
(b) | The fair value of derivative liabilities reflect netting by counterparty before the impact of collateral. | ||||||||||||||||||||||||
(c) | Represents natural gas options purchased by DPL as part of a natural gas hedging program approved by the DPSC. | ||||||||||||||||||||||||
Summary of Primary Unobservable Inputs Used to Determine Fair Value of Level 3 Instruments and Range of Values that Could be Used for Those Inputs | ' | ||||||||||||||||||||||||
The table below summarizes the primary unobservable input used to determine the fair value of DPL’s level 3 instruments and the range of values that could be used for the input as of December 31, 2012: | |||||||||||||||||||||||||
Type of Instrument | Fair Value at | Valuation Technique | Unobservable Input | Range | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Natural gas options | $ | (4 | ) | Option model | Volatility factor | 1.57 – 2.00 | |||||||||||||||||||
Reconciliations of Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||||||||||||
Reconciliations of the beginning and ending balances of DPL’s fair value measurements using significant unobservable inputs (Level 3) for the years ended December 31, 2013 and 2012 are shown below: | |||||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Natural | Life | Natural | Life | ||||||||||||||||||||||
Gas | Insurance | Gas | Insurance | ||||||||||||||||||||||
Contracts | Contracts | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Balance as of January 1 | $ | (4 | ) | $ | 1 | $ | (15 | ) | $ | 1 | |||||||||||||||
Total gains (losses) (realized and unrealized): | |||||||||||||||||||||||||
Included in income | — | — | — | — | |||||||||||||||||||||
Included in accumulated other comprehensive loss | — | — | — | — | |||||||||||||||||||||
Included in regulatory liabilities | — | — | (2 | ) | — | ||||||||||||||||||||
Purchases | — | — | — | — | |||||||||||||||||||||
Issuances | — | — | — | — | |||||||||||||||||||||
Settlements | 4 | — | 13 | — | |||||||||||||||||||||
Transfers in (out) of Level 3 | — | — | — | — | |||||||||||||||||||||
Balance as of December 31 | $ | — | $ | 1 | $ | (4 | ) | $ | 1 | ||||||||||||||||
Fair Value of Financial Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (a) | $ | 960 | $ | — | $ | 850 | $ | 110 | |||||||||||||||||
$ | 960 | $ | — | $ | 850 | $ | 110 | ||||||||||||||||||
(a) | The carrying amount for Long-term debt is $967 million as of December 31, 2013. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (a) | $ | 990 | $ | — | $ | 877 | $ | 113 | |||||||||||||||||
$ | 990 | $ | — | $ | 877 | $ | 113 | ||||||||||||||||||
(a) | The carrying amount for Long-term debt is $917 million as of December 31, 2012. | ||||||||||||||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||||||||
The following tables set forth by level within the fair value hierarchy ACE’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2013 and 2012. As required by the guidance, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. ACE’s assessment of the significance of a particular input to the fair value measurement requires the exercise of judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Restricted cash equivalents | |||||||||||||||||||||||||
Treasury fund | $ | 24 | $ | 24 | $ | — | $ | — | |||||||||||||||||
$ | 24 | $ | 24 | $ | — | $ | — | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2013. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) (a) | (Level 2) (a) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Capacity (c) | $ | 8 | $ | — | $ | — | $ | 8 | |||||||||||||||||
Restricted cash equivalents | |||||||||||||||||||||||||
Treasury fund | 27 | 27 | — | — | |||||||||||||||||||||
$ | 35 | $ | 27 | $ | — | $ | 8 | ||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Derivative instruments (b) | |||||||||||||||||||||||||
Capacity (c) | $ | 11 | $ | — | $ | — | $ | 11 | |||||||||||||||||
Executive deferred compensation plan liabilities | |||||||||||||||||||||||||
Life insurance contracts | 1 | — | 1 | — | |||||||||||||||||||||
$ | 12 | $ | — | $ | 1 | $ | 11 | ||||||||||||||||||
(a) | There were no transfers of instruments between level 1 and level 2 valuation categories during the year ended December 31, 2012. | ||||||||||||||||||||||||
(b) | The fair value of derivative assets and liabilities reflect netting by counterparty before the impact of collateral. | ||||||||||||||||||||||||
(c) | Represents derivatives associated with ACE SOCAs. | ||||||||||||||||||||||||
Summary of Primary Unobservable Inputs Used to Determine Fair Value of Level 3 Instruments and Range of Values that Could be Used for Those Inputs | ' | ||||||||||||||||||||||||
The table below summarizes the primary unobservable input used to determine the fair value of ACE’s level 3 instruments and the range of values that could be used for the input as of December 31, 2012: | |||||||||||||||||||||||||
Type of Instrument | Fair Value at | Valuation Technique | Unobservable Input | Range | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
Capacity contracts, net | $ | (3 | ) | Discounted cash flow | Discount rate | 5% - 9% | |||||||||||||||||||
Reconciliations of Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||||||||||||
A reconciliation of the beginning and ending balances of ACE’s fair value measurements using significant unobservable inputs (level 3) for the years ended December 31, 2013 and 2012 are shown below: | |||||||||||||||||||||||||
Capacity | |||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(millions of dollars) | (millions of dollars) | ||||||||||||||||||||||||
Balance as of January 1 | $ | (3 | ) | $ | — | ||||||||||||||||||||
Total gains (losses) (realized and unrealized): | |||||||||||||||||||||||||
Included in income | — | — | |||||||||||||||||||||||
Included in accumulated other comprehensive loss | — | — | |||||||||||||||||||||||
Included in regulatory liabilities and regulatory assets | 3 | (3 | ) | ||||||||||||||||||||||
Purchases | — | — | |||||||||||||||||||||||
Issuances | — | — | |||||||||||||||||||||||
Settlements | — | — | |||||||||||||||||||||||
Transfers in (out) of level 3 | — | — | |||||||||||||||||||||||
Balance as of December 31 | $ | — | $ | (3 | ) | ||||||||||||||||||||
Fair Value of Financial Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (a) | $ | 959 | $ | — | $ | 744 | $ | 215 | |||||||||||||||||
Transition Bonds (b) | 285 | — | 285 | — | |||||||||||||||||||||
$ | 1,244 | $ | — | $ | 1,029 | $ | 215 | ||||||||||||||||||
(a) | The carrying amount for Long-term debt is $860 million as of December 31, 2013. | ||||||||||||||||||||||||
(b) | The carrying amount for Transition Bonds, including amounts due within one year, is $255 million as of December 31, 2013. | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||||||
Instruments | Inputs | (Level 3) | |||||||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Debt instruments | |||||||||||||||||||||||||
Long-term debt (a) | $ | 1,016 | $ | — | $ | 884 | $ | 132 | |||||||||||||||||
Transition Bonds (b) | 341 | — | 341 | — | |||||||||||||||||||||
$ | 1,357 | $ | — | $ | 1,225 | $ | 132 | ||||||||||||||||||
(a) | The carrying amount for Long-term debt is $829 million as of December 31, 2012. | ||||||||||||||||||||||||
(b) | The carrying amount for Transition Bonds, including amounts due within one year, is $295 million as of December 31, 2012. |
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Schedule of Accrued Liabilities for Environmental Exposures | ' | ||||||||||||||||||||
The total accrued liabilities for the environmental contingencies described below of PHI and its subsidiaries at December 31, 2013 are summarized as follows: | |||||||||||||||||||||
Legacy Generation | |||||||||||||||||||||
Transmission | Regulated | Non- | Other | Total | |||||||||||||||||
and Distribution | Regulated | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Balance as of January 1 | $ | 15 | $ | 7 | $ | 5 | $ | 2 | $ | 29 | |||||||||||
Accruals | 5 | — | — | 1 | 6 | ||||||||||||||||
Payments | (1 | ) | (1 | ) | — | (3 | ) | (5 | ) | ||||||||||||
Balance as of December 31 | 19 | 6 | 5 | — | 30 | ||||||||||||||||
Less amounts in Other Current Liabilities | 3 | 1 | — | — | 4 | ||||||||||||||||
Amounts in Other Deferred Credits | $ | 16 | $ | 5 | $ | 5 | $ | — | $ | 26 | |||||||||||
Schedule of Commitments and Obligations | ' | ||||||||||||||||||||
As of December 31, 2013, PHI and its subsidiaries were parties to a variety of agreements pursuant to which they were guarantors for standby letters of credit, energy procurement obligations, and other commitments and obligations. The commitments and obligations, in millions of dollars, were as follows: | |||||||||||||||||||||
Guarantor | |||||||||||||||||||||
PHI | Pepco | DPL | ACE | Total | |||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Energy procurement obligations of Pepco Energy Services (a) | $ | 46 | $ | — | $ | — | $ | — | $ | 46 | |||||||||||
Guarantees associated with disposal of Conectiv Energy assets (b) | 13 | — | — | — | 13 | ||||||||||||||||
Guaranteed lease residual values (c) | 3 | 5 | 7 | 4 | 19 | ||||||||||||||||
Total | $ | 62 | $ | 5 | $ | 7 | $ | 4 | $ | 78 | |||||||||||
(a) | PHI has continued contractual commitments for performance and related payments of Pepco Energy Services primarily to Independent System Operators and distribution companies. | ||||||||||||||||||||
(b) | Represents guarantees by PHI of Conectiv Energy’s derivatives portfolio transferred in connection with the disposition of Conectiv Energy’s wholesale business. The derivative portfolio guarantee is currently $13 million and covers Conectiv Energy’s performance prior to the assignment. This guarantee will remain in effect until the end of 2015. | ||||||||||||||||||||
(c) | Represents the maximum potential obligation in the event that the fair value of certain leased equipment and fleet vehicles is zero at the end of the maximum lease term. The maximum lease term associated with these assets ranges from 3 to 8 years. The maximum potential obligation at the end of the minimum lease term would be $55 million, $10 million of which is a guarantee by PHI, $15 million by Pepco, $17 million by DPL and $13 million by ACE. The minimum lease term associated with these assets ranges from 1 to 4 years. Historically, payments under the guarantees have not been made and PHI believes the likelihood of payments being required under the guarantees is remote. | ||||||||||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||||||
Schedule of Accrued Liabilities for Environmental Exposures | ' | ||||||||||||||||||||
The total accrued liabilities for the environmental contingencies of Pepco described below at December 31, 2013 are summarized as follows: | |||||||||||||||||||||
Transmission | Legacy | Total | |||||||||||||||||||
and | Generation - | ||||||||||||||||||||
Distribution | Regulated | ||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Balance as of January 1 | $ | 14 | $ | 3 | $ | 17 | |||||||||||||||
Accruals | 5 | — | 5 | ||||||||||||||||||
Payments | (1 | ) | — | (1 | ) | ||||||||||||||||
Balance as of December 31 | 18 | 3 | 21 | ||||||||||||||||||
Less amounts in Other Current Liabilities | 2 | — | 2 | ||||||||||||||||||
Amounts in Other Deferred Credits | $ | 16 | $ | 3 | $ | 19 | |||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||||||
Schedule of Accrued Liabilities for Environmental Exposures | ' | ||||||||||||||||||||
The total accrued liabilities for the environmental contingencies of DPL described below at December 31, 2013 are summarized as follows: | |||||||||||||||||||||
Transmission | Legacy | Other | Total | ||||||||||||||||||
and Distribution | Generation - | ||||||||||||||||||||
Regulated | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Balance as of January 1 | $ | 1 | $ | 3 | $ | 2 | $ | 6 | |||||||||||||
Accruals | — | — | 1 | 1 | |||||||||||||||||
Payments | — | (1 | ) | (3 | ) | (4 | ) | ||||||||||||||
Balance as of December 31 | 1 | 2 | — | 3 | |||||||||||||||||
Less amounts in Other Current Liabilities | 1 | 1 | — | 2 | |||||||||||||||||
Amounts in Other Deferred Credits | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||||||
Schedule of Accrued Liabilities for Environmental Exposures | ' | ||||||||||||||||||||
The total accrued liabilities for the environmental contingencies of ACE described below at December 31, 2013 are summarized as follows: | |||||||||||||||||||||
Legacy Generation - | |||||||||||||||||||||
Regulated | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Balance as of January 1 | $ | 1 | |||||||||||||||||||
Accruals | — | ||||||||||||||||||||
Payments | — | ||||||||||||||||||||
Balance as of December 31 | 1 | ||||||||||||||||||||
Less amounts in Other Current Liabilities | — | ||||||||||||||||||||
Amounts in Other Deferred Credits | $ | 1 | |||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Schedule of Components of Other Comprehensive Loss | ' | ||||||||||||
The components of Pepco Holdings’ AOCL relating to continuing and discontinued operations are as follows. For additional information, see the consolidated statements of comprehensive income. | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance as of January 1 | $ | (48 | ) | $ | (63 | ) | $ | (106 | ) | ||||
Treasury Lock | |||||||||||||
Balance as of January 1 | (10 | ) | (10 | ) | (11 | ) | |||||||
Amount of pre-tax loss reclassified to Interest expense | 1 | — | 1 | ||||||||||
Income tax benefit | — | — | — | ||||||||||
Balance as of December 31 | (9 | ) | (10 | ) | (10 | ) | |||||||
Pension and Other Postretirement Benefits | |||||||||||||
Balance as of January 1 | (32 | ) | (24 | ) | (17 | ) | |||||||
Amount of amortization of net prior service cost and actuarial loss reclassified to Other operation and maintenance expense | 5 | 5 | 3 | ||||||||||
Amount of net prior service cost and actuarial gain (loss) arising during the year | 8 | (19 | ) | (14 | ) | ||||||||
Income tax benefit (expense) | 6 | (6 | ) | (4 | ) | ||||||||
Balance as of December 31 | (25 | ) | (32 | ) | (24 | ) | |||||||
Commodity Derivatives | |||||||||||||
Balance as of January 1 | (6 | ) | (29 | ) | (78 | ) | |||||||
Amount of net pre-tax loss reclassified to (Loss) income from discontinued operations before income tax | 10 | 39 | 81 | ||||||||||
Income tax benefit | 4 | 16 | 32 | ||||||||||
Balance as of December 31 | — | (6 | ) | (29 | ) | ||||||||
Balance as of December 31 | $ | (34 | ) | $ | (48 | ) | $ | (63 | ) |
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||||||
The totals of the four quarterly basic and diluted earnings per common share amounts may not equal the basic and diluted earnings per common share for the year due to changes in the number of shares of common stock outstanding during the year. | |||||||||||||||||||||
2013 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions, except per share amounts) | |||||||||||||||||||||
Total Operating Revenue | $ | 1,180 | $ | 1,051 | $ | 1,344 | $ | 1,091 | $ | 4,666 | |||||||||||
Total Operating Expenses | 1,047 | 906 | 1,109 | 936 | (a) | 3,998 | |||||||||||||||
Operating Income | 133 | 145 | 235 | 155 | 668 | ||||||||||||||||
Other Expenses | (59 | ) | (62 | ) | (60 | ) | (58 | ) | (239 | ) | |||||||||||
Income From Continuing Operations Before Income Tax Expense | 74 | 83 | 175 | 97 | 429 | ||||||||||||||||
Income Tax Expense Related to Continuing Operations | 185 | (b) | 30 | 65 | 39 | 319 | |||||||||||||||
Net (Loss) Income From Continuing Operations | (111 | ) | 53 | 110 | 58 | 110 | |||||||||||||||
(Loss) Income from Discontinued Operations, net of taxes | (319 | ) | (11 | ) | 8 | — | (322 | ) | |||||||||||||
Net (Loss) Income | $ | (430 | ) | $ | 42 | $ | 118 | $ | 58 | $ | (212 | ) | |||||||||
Basic and Diluted Earnings Per Share of Common Stock | |||||||||||||||||||||
(Loss) Earnings Per Share of Common Stock from Continuing Operations | (0.47 | ) | 0.21 | 0.44 | 0.23 | 0.45 | |||||||||||||||
(Loss) Earnings Per Share of Common Stock from Discontinued Operations | (1.35 | ) | (0.04 | ) | 0.04 | — | (1.31 | ) | |||||||||||||
(Loss) Earnings Per Share of Common Stock | (1.82 | ) | 0.17 | 0.48 | 0.23 | (0.86 | ) | ||||||||||||||
Cash Dividends Per Share of Common Stock | 0.27 | 0.27 | 0.27 | 0.27 | 1.08 | ||||||||||||||||
(a) | Includes a pre-tax impairment loss of $4 million ($3 million after-tax) at Pepco Energy Services associated with a landfill gas-fired electric generation facility. | ||||||||||||||||||||
(b) | Includes an income tax charge of $56 million (after-tax) primarily associated with interest on uncertain and effectively settled tax positions and an income tax charge of $101 million associated with the establishment of valuation allowances against certain deferred tax assets of PCI. | ||||||||||||||||||||
2012 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions, except per share amounts) | |||||||||||||||||||||
Total Operating Revenue (a) | $ | 1,123 | $ | 1,057 | $ | 1,389 | $ | 1,056 | $ | 4,625 | |||||||||||
Total Operating Expenses (a)(b) | 1,010 | 932 | 1,188 | 954 | 4,084 | ||||||||||||||||
Operating Income | 113 | 125 | 201 | 102 | 541 | ||||||||||||||||
Other Expenses | (54 | ) | (52 | ) | (57 | ) | (57 | ) | (220 | ) | |||||||||||
Income From Continuing Operations Before Income Tax Expense | 59 | 73 | 144 | 45 | 321 | ||||||||||||||||
Income Tax Expense Related to Continuing Operations | 9 | 26 | 57 | 11 | 103 | ||||||||||||||||
Net Income From Continuing Operations | 50 | 47 | 87 | 34 | 218 | ||||||||||||||||
Income from Discontinued Operations, net of taxes | 18 | 15 | 25 | 9 | 67 | ||||||||||||||||
Net Income | $ | 68 | $ | 62 | $ | 112 | $ | 43 | $ | 285 | |||||||||||
Basic Earnings Per Share of Common Stock | |||||||||||||||||||||
Earnings Per Share of Common Stock from Continuing Operations | 0.22 | 0.2 | 0.38 | 0.15 | 0.95 | ||||||||||||||||
Earnings Per Share of Common Stock from Discontinued Operations | 0.08 | 0.07 | 0.11 | 0.03 | 0.3 | ||||||||||||||||
Basic Earnings Per Share of Common Stock | 0.3 | 0.27 | 0.49 | 0.18 | 1.25 | ||||||||||||||||
Diluted Earnings Per Share of Common Stock | |||||||||||||||||||||
Earnings Per Share of Common Stock from Continuing Operations | 0.22 | 0.2 | 0.38 | 0.15 | 0.95 | ||||||||||||||||
Earnings Per Share of Common Stock from Discontinued Operations | 0.08 | 0.07 | 0.11 | 0.03 | 0.29 | ||||||||||||||||
Diluted Earnings Per Share of Common Stock | 0.3 | 0.27 | 0.49 | 0.18 | 1.24 | ||||||||||||||||
Cash Dividends Per Share of Common Stock | 0.27 | 0.27 | 0.27 | 0.27 | 1.08 | ||||||||||||||||
(a) | Includes $9 million of intra-company revenues (and associated costs) previously eliminated in consolidation which will continue to be recognized from third parties subsequent to the completion of the wind-down of the Pepco Energy Services’ retail electric and natural gas supply businesses. | ||||||||||||||||||||
(b) | Includes impairment losses of $12 million pre-tax ($7 million after-tax) at Pepco Energy Services associated primarily with investments in landfill gas-fired electric generation facilities, and the combustion turbines at Buzzard Point. | ||||||||||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||||||
Quarterly data normally vary seasonally because of temperature variations and differences between summer and winter rates. Therefore, comparisons by quarter within a year are not meaningful. | |||||||||||||||||||||
2013 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Total Operating Revenue | $ | 477 | $ | 469 | $ | 605 | $ | 475 | $ | 2,026 | |||||||||||
Total Operating Expenses | 430 | 389 | 476 | 410 | 1,705 | ||||||||||||||||
Operating Income | 47 | 80 | 129 | 65 | 321 | ||||||||||||||||
Other Expenses | (22 | ) | (23 | ) | (23 | ) | (24 | ) | (92 | ) | |||||||||||
Income Before Income Tax Expense | 25 | 57 | 106 | 41 | 229 | ||||||||||||||||
Income Tax Expense | 2 | (a) | 20 | 40 | 17 | 79 | |||||||||||||||
Net Income | $ | 23 | $ | 37 | $ | 66 | $ | 24 | $ | 150 | |||||||||||
(a) | Includes tax benefits of $5 million (after-tax) allocated to Pepco associated with interest on uncertain and effectively settled tax positions resulting from a change in assessment of tax benefits associated with the cross-border energy leases of a PHI affiliate. | ||||||||||||||||||||
2012 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Total Operating Revenue | $ | 465 | $ | 456 | $ | 582 | $ | 445 | $ | 1,948 | |||||||||||
Total Operating Expenses | 425 | 401 | 475 | 390 | 1,691 | ||||||||||||||||
Operating Income | 40 | 55 | 107 | 55 | 257 | ||||||||||||||||
Other Expenses | (21 | ) | (20 | ) | (22 | ) | (20 | ) | (83 | ) | |||||||||||
Income Before Income Tax Expense | 19 | 35 | 85 | 35 | 174 | ||||||||||||||||
Income Tax (Benefit) Expense (a) | (5 | ) (a) | 8 | 35 | 10 | 48 | |||||||||||||||
Net Income | $ | 24 | $ | 27 | $ | 50 | $ | 25 | $ | 126 | |||||||||||
(a) | Includes tax benefits of $10 million (after-tax), primarily related to the settlement of an uncertain tax position with the IRS related to the methodology used historically to calculate deductible mixed service costs and the expiration of the statute of limitations associated with an uncertain tax position. | ||||||||||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||||||
Quarterly data normally vary seasonally because of temperature variations and differences between summer and winter rates. Therefore, comparisons by quarter within a year are not meaningful. | |||||||||||||||||||||
2013 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Total Operating Revenue | $ | 370 | $ | 266 | $ | 296 | $ | 312 | $ | 1,244 | |||||||||||
Total Operating Expenses | 317 | 235 | 249 | 258 | 1,059 | ||||||||||||||||
Operating Income | 53 | 31 | 47 | 54 | 185 | ||||||||||||||||
Other Expenses | (11 | ) | (10 | ) | (10 | ) | (9 | ) | (40 | ) | |||||||||||
Income Before Income Tax Expense | 42 | 21 | 37 | 45 | 145 | ||||||||||||||||
Income Tax Expense | 16 | 9 | 14 | 17 | 56 | ||||||||||||||||
Net Income | $ | 26 | $ | 12 | $ | 23 | $ | 28 | $ | 89 | |||||||||||
2012 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Total Operating Revenue | $ | 333 | $ | 259 | $ | 340 | $ | 301 | $ | 1,233 | |||||||||||
Total Operating Expenses | 290 | 229 | 297 | 263 | 1,079 | ||||||||||||||||
Operating Income | 43 | 30 | 43 | 38 | 154 | ||||||||||||||||
Other Expenses | (8 | ) | (8 | ) | (10 | ) | (11 | ) | (37 | ) | |||||||||||
Income Before Income Tax Expense | 35 | 22 | 33 | 27 | 117 | ||||||||||||||||
Income Tax Expense | 14 | 9 | 11 | 10 | 44 | ||||||||||||||||
Net Income | $ | 21 | $ | 13 | $ | 22 | $ | 17 | $ | 73 | |||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||||||
Quarterly data normally vary seasonally because of temperature variations and differences between summer and winter rates. Therefore, comparisons by quarter within a year are not meaningful. | |||||||||||||||||||||
2013 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Total Operating Revenue | $ | 277 | $ | 271 | $ | 396 | $ | 258 | $ | 1,202 | |||||||||||
Total Operating Expenses | 254 | 242 | 341 | 229 | 1,066 | ||||||||||||||||
Operating Income | 23 | 29 | 55 | 29 | 136 | ||||||||||||||||
Other Expenses | (17 | ) | (18 | ) | (17 | ) | (15 | ) | (67 | ) | |||||||||||
Income Before Income Tax Expense (Benefit) | 6 | 11 | 38 | 14 | 69 | ||||||||||||||||
Income Tax (Benefit) Expense | (3 | ) | 4 | 13 | 5 | 19 | |||||||||||||||
Net Income | $ | 9 | $ | 7 | $ | 25 | $ | 9 | $ | 50 | |||||||||||
2012 | |||||||||||||||||||||
First | Second | Third | Fourth | Total | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||
Total Operating Revenue | $ | 256 | $ | 270 | $ | 413 | $ | 259 | $ | 1,198 | |||||||||||
Total Operating Expenses | 239 | 230 | 364 | 246 | 1,079 | ||||||||||||||||
Operating Income | 17 | 40 | 49 | 13 | 119 | ||||||||||||||||
Other Expenses | (16 | ) | (17 | ) | (16 | ) | (17 | ) | (66 | ) | |||||||||||
Income (Loss) Before Income Tax Expense (Benefit) | 1 | 23 | 33 | (4 | ) | 53 | |||||||||||||||
Income Tax (Benefit) Expense | (1 | ) | 9 | 13 | (3 | ) | 18 | ||||||||||||||
Net Income (Loss) | $ | 2 | $ | 14 | $ | 20 | $ | (1 | ) | $ | 35 |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
(Loss) Income from Discontinued Operations, Net of Income Taxes | ' | ||||||||||||
PHI’s (loss) income from discontinued operations, net of income taxes, is comprised of the following: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(millions of dollars) | |||||||||||||
Cross-border energy lease investments | $ | (327 | ) | $ | 41 | $ | 36 | ||||||
Pepco Energy Services’ retail electric and natural gas supply businesses | 5 | 26 | 2 | ||||||||||
Conectiv Energy | — | — | (3 | ) | |||||||||
(Loss) income from discontinued operations, net of income taxes | $ | (322 | ) | $ | 67 | $ | 35 | ||||||
(Loss) Income Recognized from Cross-Border Energy Lease Investments | ' | ||||||||||||
The operating results for the cross-border energy lease investments are as follows: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(millions of dollars) | |||||||||||||
Operating revenue from PHI’s cross-border energy lease investments | $ | 7 | $ | 50 | $ | 55 | |||||||
Non-cash charge to reduce carrying value of PHI’s cross-border energy lease investments | (373 | ) | — | (7 | ) | ||||||||
Total operating revenue | $ | (366 | ) | $ | 50 | $ | 48 | ||||||
(Loss) income from operations of discontinued operations, net of income taxes (a) | $ | (325 | ) | $ | 32 | $ | 33 | ||||||
Net (losses) gains associated with the early termination of the cross-border energy lease investments, net of income taxes (b) | (2 | ) | 9 | 3 | |||||||||
(Loss) income from discontinued operations, net of income taxes | $ | (327 | ) | $ | 41 | $ | 36 | ||||||
(a) | Includes income tax (benefit) expense of approximately $(44) million, $5 million and $(2) million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
(b) | Includes income tax (benefit) expense of approximately $(1) million, $30 million and $36 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Cross-Border Energy Lease Investments | ' | ||||||||||||
As of December 31, 2013 and 2012, the assets held for disposition and liabilities associated with assets held for disposition related to the cross-border energy lease investments are: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Scheduled lease payments to PHI, net of non-recourse debt | $ | — | $ | 1,852 | |||||||||
Less: Unearned and deferred income | — | (615 | ) | ||||||||||
Assets held for disposition | $ | — | $ | 1,237 | |||||||||
Liabilities associated with assets held for disposition | $ | — | $ | 1 | |||||||||
Net Investment in Leases by Published Credit Ratings | ' | ||||||||||||
The table below shows PHI’s net investment in these leases by the published credit ratings of the lessees as of December 31: | |||||||||||||
Lessee Rating (a) | 2013 | 2012 | |||||||||||
(millions of dollars) | |||||||||||||
Rated Entities | |||||||||||||
AA/Aa and above | $ | — | $ | 766 | |||||||||
A | — | 471 | |||||||||||
Total | $ | — | $ | 1,237 | |||||||||
(a) | Excludes the credit ratings associated with collateral posted by the lessees in these transactions. | ||||||||||||
Operating Results for Retail Electric and Natural Gas Supply Businesses | ' | ||||||||||||
The operating results for the retail electric and natural gas supply businesses of Pepco Energy Services are as follows: | |||||||||||||
For the Year Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(millions of dollars) | |||||||||||||
Operating revenue | $ | 84 | $ | 415 | $ | 954 | |||||||
Income from operations of discontinued operations, net of income taxes | $ | 4 | $ | 26 | $ | 2 | |||||||
Net gains associated with accelerated disposition of retail electric and natural gas contracts, net of income taxes | 1 | — | — | ||||||||||
Income from discontinued operations, net of income taxes (a) | $ | 5 | $ | 26 | $ | 2 | |||||||
(a) | Includes income tax expense of approximately $3 million, $18 million and $1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Discontinued Operations [Member] | ' | ||||||||||||
Schedule of Derivative Gain (Loss) Amounts Recognized in Income | ' | ||||||||||||
For the years ended December 31, 2013, 2012, and 2011, the amount of the derivative gain (loss) for the retail electric and natural gas supply businesses of Pepco Energy Services recognized in (Loss) income from discontinued operations, net of income taxes is provided in the table below: | |||||||||||||
For the Year Ended | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(millions of dollars) | |||||||||||||
Reclassification of mark-to-market to realized on settlement of contracts | $ | 10 | $ | 27 | $ | — | |||||||
Unrealized mark-to-market loss | — | (3 | ) | (30 | ) | ||||||||
Total net gain (loss) | $ | 10 | $ | 24 | $ | (30 | ) | ||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Potomac Electric Power Co [Member] | ' | ||||||||||||
Schedule of Related Party Transactions Included in Financial Statements | ' | ||||||||||||
As of December 31, 2013 and 2012, Pepco had the following balances on its balance sheets due to related parties: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
(Payable to) Receivable From Related Party (current) (a) | |||||||||||||
PHI Service Company | $ | (25 | ) | $ | (22 | ) | |||||||
Pepco Energy Services (b) | (7 | ) | (18 | ) | |||||||||
Other | — | (1 | ) | ||||||||||
Total | $ | (32 | ) | $ | (41 | ) | |||||||
(a) | Included in Accounts payable due to associated companies. | ||||||||||||
(b) | Pepco bills customers on behalf of Pepco Energy Services where Pepco Energy Services has performed work for certain government agencies under a General Services Administration area-wide agreement. Amount also includes charges for utility work performed by Pepco Energy Services on behalf of Pepco. Prior to the wind-down of Pepco Energy Services’ retail electric and natural gas businesses, Pepco billed customers on behalf of Pepco Energy Services where customers had selected Pepco Energy Services as their alternative energy supplier. | ||||||||||||
Delmarva Power & Light Co/De [Member] | ' | ||||||||||||
Schedule of Related Party Transactions Included in Financial Statements | ' | ||||||||||||
In addition to the PHI Service Company charges described above, DPL’s financial statements include the following related party transactions in its statements of income: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(millions of dollars) | |||||||||||||
Purchased power under Default Electricity Supply contracts with Conectiv Energy Supply, Inc. (a) | $ | — | $ | — | $ | 1 | |||||||
Intercompany lease transactions (b) | 4 | 4 | 5 | ||||||||||
(a) | Included in Purchased energy expense. | ||||||||||||
(b) | Included in Electric revenue. | ||||||||||||
As of December 31, 2013 and 2012, DPL had the following balances on its balance sheets due to related parties: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Payable to Related Party (current) (a) | |||||||||||||
PHI Service Company | $ | (22 | ) | $ | (19 | ) | |||||||
Other | — | (1 | ) | ||||||||||
Total | $ | (22 | ) | $ | (20 | ) | |||||||
(a) | Included in Accounts payable due to associated companies. | ||||||||||||
Atlantic City Electric Co [Member] | ' | ||||||||||||
Schedule of Related Party Transactions Included in Financial Statements | ' | ||||||||||||
In addition to the PHI Service Company charges described above, ACE’s consolidated financial statements include the following related party transactions in its consolidated statements of income: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(millions of dollars) | |||||||||||||
Meter reading services provided by Millennium Account Services LLC (an ACE affiliate)(a) | $ | (4 | ) | $ | (4 | ) | $ | (4 | ) | ||||
Intercompany use revenue (b) | 3 | 3 | 2 | ||||||||||
(a) | Included in Other operation and maintenance expense. | ||||||||||||
(b) | Included in Operating revenue. | ||||||||||||
As of December 31, 2013 and 2012, ACE had the following balances on its consolidated balance sheets due to related parties: | |||||||||||||
2013 | 2012 | ||||||||||||
(millions of dollars) | |||||||||||||
Payable to Related Party (current) (a) | |||||||||||||
PHI Service Company | $ | (15 | ) | $ | (13 | ) | |||||||
Other | — | (1 | ) | ||||||||||
Total | $ | (15 | ) | $ | (14 | ) | |||||||
(a) | Included in Accounts payable due to associated companies. |
Organization_Additional_Inform
Organization - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Pepco Energy Services [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | |||
PHI [Member] | Power Delivery [Member] | Corporate and Other [Member] | Interest Expense [Member] | Potomac Capital Investment Corporation (PCI) [Member] | ||||||||
PHI [Member] | ||||||||||||
Reorganization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset retirement obligation | ' | ' | $2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Establishment of valuation allowance on deferred tax assets | ' | 101 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PCI Recorded Deferred Tax Asset In Prior years | ' | 101 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax assets valuation allowance charged off | 101 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
After-tax non-cash charges | ' | ' | ' | 6 | 323 | ' | ' | ' | ' | ' | ' | ' |
Other non-cash charge | ' | ' | ' | ' | ' | 373 | 7 | ' | ' | ' | ' | ' |
After-tax effect of revised lease rerun | ' | ' | ' | ' | ' | 313 | ' | ' | ' | ' | ' | ' |
After-tax non-cash charge | ' | ' | ' | ' | ' | ' | ' | 70 | ' | ' | 16 | ' |
Interest benefit | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' |
Interest expense on uncertain tax positions | ' | ' | ' | ' | ' | ' | ' | ' | ' | $66 | ' | $16 |
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Nov. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Adjustment [Member] | Adjustment [Member] | Adjustment [Member] | Adjustment [Member] | Time-Based Restricted Stock [Member] | Pepco Energy Services [Member] | Asset Removal Costs [Member] | Asset Removal Costs [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | ||||||
Transmission and Distribution [Member] | Transmission and Distribution [Member] | Transmission and Distribution [Member] | Asset Removal Costs [Member] | Asset Removal Costs [Member] | Transmission and Distribution [Member] | Transmission and Distribution [Member] | Transmission and Distribution [Member] | Transmission and Distribution [Member] | Asset Removal Costs [Member] | Asset Removal Costs [Member] | Transmission and Distribution [Member] | Transmission and Distribution [Member] | Transmission and Distribution [Member] | Minimum [Member] | ||||||||||||||||||||||||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unbilled revenue | ' | $177 | $182 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $80 | $81 | ' | ' | ' | ' | ' | ' | ' | ' | $61 | $62 | ' | ' | ' | ' | ' | ' | ' | $36 | $39 | ' | ' | ' | ' | ' | ' |
Taxes included in gross revenues | ' | 346 | 356 | 378 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 318 | 324 | 338 | ' | ' | ' | ' | ' | ' | ' | 17 | 15 | 18 | ' | ' | ' | ' | ' | ' | 11 | 15 | 22 | ' | ' | ' | ' | ' |
Restricted stock awards vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of an asset | 'Greater than 50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Greater than 50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards received from the U.S. DOE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 149 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19 | ' | ' | ' | ' |
AFUDC for borrowed funds | ' | 7 | 7 | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 4 | 8 | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | 1 | ' | ' | ' | ' | ' | ' | ' | 1 | 2 | ' | ' | ' | ' | 1 |
AFUDC for equity component | ' | 11 | 14 | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | 8 | 12 | ' | ' | ' | ' | ' | ' | ' | 2 | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | 3 | 1 | ' | ' | ' | ' | 1 |
Regulatory Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 275 | 324 | ' | ' | ' | ' | ' | ' | ' | 102 | 122 | ' | ' | ' | ' | ' | ' | ' | ' | 173 | 202 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of subsidiaries, allocated | ' | '3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in income tax expense after adjustments | ' | 4 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax amount of derivative loss occurred due to discontinued operation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase of deferred electric service cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Deferred income tax liabilities | ' | ' | ' | ' | ' | 32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Depreciation Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.20% | 2.50% | 2.60% | ' | ' | ' | ' | ' | ' | 2.60% | 2.70% | 2.80% | 2.80% | ' | ' | ' | ' | ' | ' | 2.80% | 3.00% | 3.00% | ' |
Preferred stock, shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Retained earnings | ' | 595 | 1,077 | 1,040 | 1,027 | ' | -32 | -32 | -32 | ' | ' | ' | ' | 992 | 888 | ' | ' | ' | ' | ' | ' | ' | ' | 637 | 578 | ' | ' | ' | ' | ' | ' | ' | 190 | 200 | ' | ' | ' | ' | ' | ' |
Reclassification adjustment relating to uncertain tax positions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' | ' | ' | ' |
Unbilled receivables billing period | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securitization debt capitalization rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' |
Significant_Accounting_Policie4
Significant Accounting Policies - Annual Depreciation Rates (Detail) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Transmission and Distribution [Member] | Potomac Electric Power Co [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Annual Depreciation Rate | 2.20% | 2.50% | 2.60% | ' |
Transmission and Distribution [Member] | Delmarva Power & Light Co/De [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Annual Depreciation Rate | 2.60% | 2.70% | 2.80% | 2.80% |
Transmission and Distribution [Member] | Atlantic City Electric Co [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Annual Depreciation Rate | 2.80% | 3.00% | 3.00% | ' |
Transmission and Distribution [Member] | Pepco Energy Services [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Annual Depreciation Rate | ' | ' | ' | ' |
Generation [Member] | Potomac Electric Power Co [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Annual Depreciation Rate | ' | ' | ' | ' |
Generation [Member] | Delmarva Power & Light Co/De [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Annual Depreciation Rate | ' | ' | ' | ' |
Generation [Member] | Atlantic City Electric Co [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Annual Depreciation Rate | ' | ' | ' | ' |
Generation [Member] | Pepco Energy Services [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Annual Depreciation Rate | 0.40% | 6.40% | 10.20% | ' |
Significant_Accounting_Policie5
Significant Accounting Policies - Effects of Revision on PHI's Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Deferred income tax liabilities, net | ' | $3,208 | $2,895 | ' |
Total deferred credits | 3,883 | 4,851 | 4,581 | ' |
Retained earnings | 595 | 1,077 | 1,040 | 1,027 |
Total equity | 4,315 | 4,414 | 4,304 | 4,198 |
As Filed [Member] | ' | ' | ' | ' |
Deferred income tax liabilities, net | ' | 3,176 | 2,863 | ' |
Total deferred credits | ' | 4,819 | 4,549 | ' |
Retained earnings | ' | 1,109 | 1,072 | 1,059 |
Total equity | ' | 4,446 | 4,336 | 4,230 |
Adjustment [Member] | ' | ' | ' | ' |
Deferred income tax liabilities, net | ' | 32 | 32 | ' |
Total deferred credits | ' | 32 | 32 | ' |
Retained earnings | ' | -32 | -32 | -32 |
Total equity | ' | ($32) | ($32) | ($32) |
Significant_Accounting_Policie6
Significant Accounting Policies - Effects of Revision on PHI's Consolidated Balance Sheets (Parenthetical) (Detail) (As Filed [Member], USD $) | Dec. 31, 2010 |
In Millions, unless otherwise specified | |
As Filed [Member] | ' |
Non-controlling interest in stockholder's equity | $6 |
Segment_Information_Segment_Fi
Segment Information - Segment Financial Information for Continuing Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | $1,091 | $1,344 | $1,051 | $1,180 | $1,056 | $1,389 | $1,057 | $1,123 | $4,666 | $4,625 | $4,964 |
Operating Expenses | 936 | 1,109 | 906 | 1,047 | 954 | 1,188 | 932 | 1,010 | 3,998 | 4,084 | 4,411 |
Operating Income (Loss) | 155 | 235 | 145 | 133 | 102 | 201 | 125 | 113 | 668 | 541 | 553 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 273 | 256 | 242 |
Impairment Losses | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -12 | ' |
Income Tax Expense (Benefit) | 39 | 65 | 30 | 185 | 11 | 57 | 26 | 9 | 319 | 103 | 114 |
Total Assets (excluding Assets Held for Disposition) | 14,848 | ' | ' | ' | 15,794 | ' | ' | ' | 14,848 | 15,794 | ' |
Pepco Energy Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment Losses | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -12 | ' |
Operating Segments [Member] | Power Delivery [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 4,472 | 4,378 | 4,650 |
Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 3,828 | 3,847 | 4,150 |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 644 | 531 | 500 |
Interest Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 228 | 219 | 208 |
Other Income (Expenses) | ' | ' | ' | ' | ' | ' | ' | ' | 28 | 32 | 29 |
Income Tax Expense (Benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 155 | 110 | 112 |
Net Income (Loss) from Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | 289 | 235 | 210 |
Total Assets (excluding Assets Held for Disposition) | 13,027 | ' | ' | ' | 12,149 | ' | ' | ' | 13,027 | 12,149 | 11,008 |
Construction Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 1,194 | 1,168 | 888 |
Operating Segments [Member] | Corporate and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | -9 | -9 | -16 |
Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | -31 | -34 | -40 |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 22 | 25 | 24 |
Interest Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 44 | 35 | 32 |
Impairment Losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -5 |
Other Income (Expenses) | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 3 | -2 |
Income Tax Expense (Benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 163 | ' | -6 |
Net Income (Loss) from Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | -182 | -9 | -10 |
Total Assets (excluding Assets Held for Disposition) | 1,485 | ' | ' | ' | 2,028 | ' | ' | ' | 1,485 | 2,028 | 1,988 |
Construction Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 112 | 37 | 39 |
Operating Segments [Member] | Pepco Energy Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 203 | 256 | 330 |
Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 201 | 271 | 301 |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 2 | -15 | 29 |
Interest Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 2 | 2 |
Other Income (Expenses) | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 1 | 2 |
Income Tax Expense (Benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 1 | -7 | 8 |
Net Income (Loss) from Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | 3 | -8 | 22 |
Total Assets (excluding Assets Held for Disposition) | 335 | ' | ' | ' | 342 | ' | ' | ' | 335 | 342 | 529 |
Construction Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 11 | 14 |
Operating Segments [Member] | PHI Consolidated [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 4,666 | 4,625 | 4,964 |
Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 3,998 | 4,084 | 4,411 |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 668 | 541 | 553 |
Interest Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 273 | 256 | 242 |
Impairment Losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -5 |
Other Income (Expenses) | ' | ' | ' | ' | ' | ' | ' | ' | 34 | 36 | 29 |
Income Tax Expense (Benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 319 | 103 | 114 |
Net Income (Loss) from Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | 110 | 218 | 222 |
Total Assets (excluding Assets Held for Disposition) | 14,847 | ' | ' | ' | 14,519 | ' | ' | ' | 14,847 | 14,519 | 13,525 |
Construction Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | $1,310 | $1,216 | $941 |
Segment_Information_Segment_Fi1
Segment Information - Segment Financial Information for Continuing Operations (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $1,407 | ' | ' | ' | $1,407 | ' | ' | ' | $1,407 | $1,407 | ' |
Operating Revenue | 1,091 | 1,344 | 1,051 | 1,180 | 1,056 | 1,389 | 1,057 | 1,123 | 4,666 | 4,625 | 4,964 |
Operating Expenses | -936 | -1,109 | -906 | -1,047 | -954 | -1,188 | -932 | -1,010 | -3,998 | -4,084 | -4,411 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -273 | -256 | -242 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 473 | 454 | 425 |
Impairment losses, pre-tax | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 12 | ' |
Tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | -128 | -166 | -72 |
Power Delivery [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 1,400 | ' | ' | ' | 1,400 | ' | ' | ' | 1,400 | 1,400 | 1,400 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 439 | 416 | 394 |
Interest benefit | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' |
Tax benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 |
Corporate and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 28 | 24 | 15 |
Interest expense on uncertain tax positions | ' | ' | ' | ' | ' | ' | ' | ' | 66 | ' | ' |
Corporate and Other [Member] | Intersegment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | -10 | -11 | -16 |
Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | -9 | -10 | -15 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -18 | -22 |
Interest Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | -21 | -22 |
Pepco Energy Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 14 | 16 |
Impairment losses, pre-tax | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 12 | ' |
Impairment losses, after-tax | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 7 | ' |
Other Non-Regulated [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance against deferred tax assets | ' | ' | ' | ' | ' | ' | ' | ' | 101 | ' | ' |
Retail Electric and Natural Gas Supply Businesses of Pepco Energy Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9 | $15 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Goodwill [Line Items] | ' | ' |
Goodwill | $1,407 | $1,407 |
Accumulated impairment loss | 18 | 18 |
Delmarva Power & Light Co/De [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | 8 | 8 |
Accumulated impairment loss | $0 | $0 |
Regulatory_Matters_Schedule_of
Regulatory Matters - Schedule of Regulatory Assets and Regulatory Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | $2,087 | $2,614 |
Regulatory Liabilities | 399 | 501 |
Pension and OPEB Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 667 | 1,171 |
Securitized Stranded Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 350 | 416 |
Smart Grid Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 251 | 230 |
Recoverable Income Taxes [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 225 | 177 |
Deferred Energy Supply Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 136 | 183 |
Demand-Side Management Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 125 | 57 |
Incremental Storm Restoration Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 72 | 89 |
MAPP Abandonment Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 68 | 88 |
Deferred Debt Extinguishment Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 47 | 53 |
Recoverable Workers' Compensation and Long-Term Disability Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 26 | 31 |
Deferred Losses on Gas Derivatives [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | ' | 4 |
Other Regulatory Assets [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 120 | 115 |
Asset Removal Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 275 | 324 |
Deferred Energy Supply Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 46 | 78 |
Deferred Income Taxes Due to Customers [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 45 | 45 |
Deferred Gains on Gas Derivatives [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 1 | ' |
Excess Depreciation Reserve [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | ' | 11 |
Other Regulatory Liabilities [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 32 | 43 |
Potomac Electric Power Co [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 563 | 487 |
Regulatory Liabilities | 113 | 141 |
Potomac Electric Power Co [Member] | Smart Grid Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 168 | 159 |
Potomac Electric Power Co [Member] | Recoverable Income Taxes [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 107 | 75 |
Potomac Electric Power Co [Member] | Deferred Energy Supply Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 6 | 4 |
Potomac Electric Power Co [Member] | Demand-Side Management Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 98 | 45 |
Potomac Electric Power Co [Member] | Incremental Storm Restoration Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 37 | 44 |
Potomac Electric Power Co [Member] | MAPP Abandonment Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 37 | 50 |
Potomac Electric Power Co [Member] | Deferred Debt Extinguishment Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 25 | 28 |
Potomac Electric Power Co [Member] | Recoverable Workers' Compensation and Long-Term Disability Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 26 | 31 |
Potomac Electric Power Co [Member] | Other Regulatory Assets [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 59 | 51 |
Potomac Electric Power Co [Member] | Asset Removal Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 102 | 122 |
Potomac Electric Power Co [Member] | Other Regulatory Liabilities [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 11 | 19 |
Delmarva Power & Light Co/De [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 311 | 288 |
Regulatory Liabilities | 229 | 258 |
Delmarva Power & Light Co/De [Member] | Smart Grid Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 83 | 71 |
Delmarva Power & Light Co/De [Member] | Recoverable Income Taxes [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 76 | 69 |
Delmarva Power & Light Co/De [Member] | Demand-Side Management Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 27 | 12 |
Delmarva Power & Light Co/De [Member] | Incremental Storm Restoration Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 9 | 11 |
Delmarva Power & Light Co/De [Member] | MAPP Abandonment Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 31 | 38 |
Delmarva Power & Light Co/De [Member] | Deferred Debt Extinguishment Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 13 | 15 |
Delmarva Power & Light Co/De [Member] | Deferred Losses on Gas Derivatives [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | ' | 4 |
Delmarva Power & Light Co/De [Member] | Other Regulatory Assets [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 37 | 29 |
Delmarva Power & Light Co/De [Member] | COPCO Acquisition Adjustment [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 22 | 26 |
Delmarva Power & Light Co/De [Member] | Deferred Energy Supply Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 13 | 13 |
Delmarva Power & Light Co/De [Member] | Asset Removal Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 173 | 202 |
Delmarva Power & Light Co/De [Member] | Deferred Energy Supply Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 3 | 6 |
Delmarva Power & Light Co/De [Member] | Deferred Income Taxes Due to Customers [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 37 | 38 |
Delmarva Power & Light Co/De [Member] | Other Regulatory Liabilities [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 15 | 12 |
Delmarva Power & Light Co/De [Member] | Deferred Gains on Gas Derivative [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 1 | ' |
Atlantic City Electric Co [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 569 | 694 |
Regulatory Liabilities | 57 | 102 |
Atlantic City Electric Co [Member] | Securitized Stranded Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 350 | 416 |
Atlantic City Electric Co [Member] | Recoverable Income Taxes [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 42 | 33 |
Atlantic City Electric Co [Member] | Deferred Energy Supply Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 117 | 166 |
Atlantic City Electric Co [Member] | Incremental Storm Restoration Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 26 | 34 |
Atlantic City Electric Co [Member] | Other Regulatory Assets [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | 34 | 34 |
Atlantic City Electric Co [Member] | ACE SOCAs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory assets | ' | 11 |
Atlantic City Electric Co [Member] | Deferred Energy Supply Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 38 | 62 |
Atlantic City Electric Co [Member] | Excess Depreciation Reserve [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | ' | 11 |
Atlantic City Electric Co [Member] | Other Regulatory Liabilities [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 6 | 5 |
Atlantic City Electric Co [Member] | Federal and State Tax Benefits, Related to Securitized Stranded Costs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 13 | 16 |
Atlantic City Electric Co [Member] | ACE SOCAs [Member] | ' | ' |
Schedule Of Regulatory Assets And Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | ' | $8 |
Regulatory_Matters_Additional_
Regulatory Matters - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Aug. 31, 2013 | 31-May-13 | Dec. 31, 2012 | Dec. 31, 2013 | Apr. 30, 2012 | Dec. 31, 2013 | Dec. 18, 2013 | 31-May-13 | 13-May-13 | Dec. 31, 2013 | Dec. 31, 2011 | Apr. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Apr. 30, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Feb. 28, 2012 | Dec. 31, 2013 | Jul. 19, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Feb. 27, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 27, 2013 | Dec. 31, 2013 | Feb. 27, 2013 | Dec. 18, 2013 | Oct. 31, 2013 | Oct. 08, 2013 | Oct. 02, 2013 | Aug. 30, 2013 | Aug. 27, 2013 | Aug. 28, 2013 | Jun. 30, 2013 | Mar. 29, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2012 | Dec. 31, 2013 | Mar. 01, 2015 | 1-May-14 | Mar. 29, 2013 | Dec. 31, 2013 | Feb. 27, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2012 | Feb. 27, 2013 | Dec. 31, 2013 | Apr. 30, 2012 | Mar. 29, 2013 | Dec. 31, 2013 | Feb. 27, 2013 | Dec. 04, 2013 | Jul. 12, 2013 | 31-May-13 | Mar. 08, 2013 | Nov. 30, 2012 | Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | 13-May-13 | Dec. 31, 2013 | Dec. 04, 2013 | Nov. 30, 2012 | Jul. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Feb. 27, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2012 | Feb. 27, 2013 | Dec. 31, 2013 | Apr. 30, 2012 | Nov. 30, 2012 | Feb. 27, 2013 | 31-May-13 | |
mi | MW | Regulatory Asset [Member] | MAPP Abandonment Costs [Member] | District of Columbia [Member] | District of Columbia [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | PHI [Member] | ||||
DC Undergrounding Task Force [Member] | DC Undergrounding Task Force [Member] | MW | MW | New Jersey Settlement [Member] | New Jersey Settlement [Member] | Distribution Rate [Member] | Recovery Charges [Member] | Federal Energy Regulatory Commission Return on Equity Complaint [Member] | Federal Energy Regulatory Commission Return on Equity Complaint [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | mi | MW | Regulatory Asset [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Expected [Member] | Expected [Member] | Federal Energy Regulatory Commission Return on Equity Complaint [Member] | Federal Energy Regulatory Commission Return on Equity Complaint [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | mi | MW | Regulatory Asset [Member] | MAPP Abandonment Costs [Member] | District of Columbia [Member] | District of Columbia [Member] | Expected [Member] | Expected [Member] | Expected [Member] | Expected [Member] | Actual [Member] | Federal Energy Regulatory Commission Return on Equity Complaint [Member] | Federal Energy Regulatory Commission Return on Equity Complaint [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |||||||||||||||||||||||||||||||||||||||
Districts | Federal Energy Regulatory Commission Return on Equity Complaint [Member] | Federal Energy Regulatory Commission Return on Equity Complaint [Member] | Advanced Metering Infrastructure Costs [Member] | Advanced Metering Infrastructure Costs [Member] | MW | Federal Energy Regulatory Commission Return on Equity Complaint [Member] | MW | Expected [Member] | Expected [Member] | Federal Energy Regulatory Commission Return on Equity Complaint [Member] | Districts | MW | Federal Energy Regulatory Commission Return on Equity Complaint [Member] | MW | Expected [Member] | Federal Energy Regulatory Commission Return on Equity Complaint [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transition bond maturity, lower range | ' | ' | ' | '2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transition bond maturity, upper range | ' | ' | ' | '2023 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2023 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incremental Storm Restoration Costs Amortization and recovery period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | '5 years | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Return on assets | ' | ' | ' | ' | ' | 12.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory asset, amortization period, years | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'P1Y | ' | ' | 'P20Y | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'P1Y | ' | 'P20Y | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'P1Y | ' | ' | 'P20Y | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'P1Y | ' | ' | 'P20Y | ' | ' | ' | ' |
Depreciation reserve, amortization period | ' | ' | ' | '8 years 3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years 3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Requested rate change | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $70,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $56,000,000 | ' | ' | ' | ' | $22,800,000 | $39,000,000 | $12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $44,800,000 | $60,800,000 | $18,100,000 | ' | ' | ' | ' | ' | ' | ' | $44,800,000 | $43,300,000 | $60,800,000 | $18,100,000 | $68,400,000 | $66,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Return on equity, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.25% | ' | ' | 10.80% | ' | 9.75% | 9.75% | ' | ' | 8.70% | 11.30% | ' | 6.78% | ' | 10.33% | ' | ' | ' | ' | ' | ' | ' | ' | 10.25% | 10.25% | 10.25% | 10.80% | ' | ' | ' | ' | ' | ' | ' | 8.70% | 11.30% | ' | ' | 6.78% | ' | ' | ' | ' | 10.33% | 10.25% | 9.36% | ' | 10.25% | 10.25% | 9.31% | 10.80% | ' | 10.75% | ' | ' | ' | ' | 10.25% | ' | ' | ' | ' | ' | 8.70% | 11.30% | ' | ' | 6.78% | ' | ' | ' | 10.33% | ' |
Interim rate increase implemented | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional interim rate increase implemented | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,100,000 | 25,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interim rates in effect subject to refund | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,600,000 | 27,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increased distribution base period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated rate of equity, year one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.41% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated rate of equity, year two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated rate of equity, year three | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated rate of equity, year four | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer refundable fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate additional increase implemented | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | 6,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Return on equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.36% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base rate period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of advanced metering infrastructure in percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of proposed change on gas cost rate | 5.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Surcharge for recovery of costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,200,000 | 10,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 192,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proposed incentive for meeting enhanced reliability goals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit to customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
ROE for calculating the AFUDC and regulatory asset carrying costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.81% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred operation and maintenance expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of amortized expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges on cost of recovery | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual depreciation and amortization expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,300,000 | 27,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Components of request rate change | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,100,000 | -1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,500,000 | 25,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution revenue increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,000,000 | 70,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,200,000 | 44,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maintenance expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,800,000 | 25,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Overall annual rate increase of the projected deferred under-recovered balance related to non-utility generators | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 52,200,000 | ' | 55,300,000 | 55,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions received by ACE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | 11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis point | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
New power plant output | ' | ' | ' | ' | 661 | ' | ' | ' | ' | ' | ' | 650 | ' | ' | 700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 661 | ' | ' | ' | ' | ' | ' | ' | ' | 650 | ' | ' | 700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 661 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 650 | ' | ' | 700 | ' | ' | ' |
Undergrounding project cost | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bear estimated complete project | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 |
Underground project cost | ' | ' | ' | ' | ' | ' | ' | 375,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 375,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of District of Columbia's outage-prone power lines to bury | ' | ' | ' | ' | ' | ' | ' | ' | 60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Congressional review period | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovery | ' | ' | 88,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovery period | ' | ' | '5 years | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Length transmission line | ' | ' | 152 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 152 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 152 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Abandoned costs | ' | ' | ' | 68,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net of amortization | ' | ' | ' | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Abandoned cost original value | ' | ' | ' | 88,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Disallowed costs written off | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Abandoned costs transferred to inventories | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory asset, amortization period, years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | '20 years | ' | ' | ' | ' |
Goodwill transferred to a regulatory asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $41,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Return earned, deferral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transition bond maturity, lower range | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transition bond maturity, upper range | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2023 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory_Matters_Schedule_of1
Regulatory Matters - Schedule of Current Base Rate Increase Requisition to Increase Annual Revenue (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 04, 2013 | Jul. 12, 2013 | Mar. 08, 2013 | Nov. 30, 2012 | Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 |
Potomac Electric Power Co [Member] | ' | ' | ' | ' | ' | ' | ' |
Regulatory Matters [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Requested rate change | ' | ' | $44.80 | $60.80 | $18.10 | ' | ' |
Return on equity, percentage | 10.25% | 9.36% | 10.25% | 10.25% | 9.31% | 10.80% | 10.75% |
Potomac Electric Power Co [Member] | District of Columbia [Member] | ' | ' | ' | ' | ' | ' | ' |
Regulatory Matters [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Requested rate change | ' | ' | ' | ' | ' | 44.8 | ' |
Return on equity, percentage | ' | ' | ' | ' | ' | 10.25% | ' |
Initial Filing Date | ' | ' | ' | ' | ' | 8-Mar-13 | ' |
Expected Timing of Decision | ' | ' | ' | ' | ' | 'Q1-2014 | ' |
Potomac Electric Power Co [Member] | MD [Member] | ' | ' | ' | ' | ' | ' | ' |
Regulatory Matters [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Requested rate change | ' | ' | ' | ' | ' | 43.3 | ' |
Return on equity, percentage | ' | ' | ' | ' | ' | 10.25% | ' |
Initial Filing Date | ' | ' | ' | ' | ' | 4-Dec-13 | ' |
Expected Timing of Decision | ' | ' | ' | ' | ' | 'Q3-2014 | ' |
Delmarva Power Light Co Electric [Member] | DE [Member] | ' | ' | ' | ' | ' | ' | ' |
Regulatory Matters [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Requested rate change | ' | ' | ' | ' | ' | 39 | ' |
Return on equity, percentage | ' | ' | ' | ' | ' | 10.25% | ' |
Initial Filing Date | ' | ' | ' | ' | ' | 22-Mar-13 | ' |
Expected Timing of Decision | ' | ' | ' | ' | ' | 'Q2-2014 | ' |
Regulatory_Matters_Schedule_of2
Regulatory Matters - Schedule of Current Base Rate Approval to Increase Annual Revenue (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Jul. 12, 2013 | Dec. 31, 2013 | Aug. 30, 2013 | Aug. 27, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Atlantic City Electric Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power Light Co Gas [Member] | |
NJ [Member] | MD [Member] | MD [Member] | DE [Member] | ||||
Regulatory Matters [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Approved Revenue Requirement Increase | $25.50 | $27.90 | $27.90 | $15 | $6.80 | $15 | $6.80 |
Approved Return on Equity | 9.75% | 9.36% | 9.36% | ' | 9.75% | 9.81% | 9.75% |
Completion Date | 21-Jun-13 | ' | 12-Jul-13 | ' | ' | 30-Aug-13 | 22-Oct-13 |
Rate Effective Date | 1-Jul-13 | ' | 12-Jul-13 | ' | ' | 15-Sep-13 | 1-Nov-13 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | $14,567 | $13,625 |
Accumulated Depreciation | 4,863 | 4,779 |
Net Book Value | 9,704 | 8,846 |
Generation [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 105 | 107 |
Accumulated Depreciation | 99 | 97 |
Net Book Value | 6 | 10 |
Distribution [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 8,896 | 8,320 |
Accumulated Depreciation | 2,961 | 2,954 |
Net Book Value | 5,935 | 5,366 |
Transmission [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 2,991 | 2,783 |
Accumulated Depreciation | 908 | 866 |
Net Book Value | 2,083 | 1,917 |
Gas [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 481 | 458 |
Accumulated Depreciation | 142 | 137 |
Net Book Value | 339 | 321 |
Construction Work In Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 677 | 692 |
Accumulated Depreciation | ' | ' |
Net Book Value | 677 | 692 |
Non-Operating and Other Property [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 1,417 | 1,265 |
Accumulated Depreciation | 753 | 725 |
Net Book Value | 664 | 540 |
Potomac Electric Power Co [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 7,310 | 6,850 |
Accumulated Depreciation | 2,772 | 2,705 |
Net Book Value | 4,538 | 4,145 |
Potomac Electric Power Co [Member] | Distribution [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 5,287 | 4,949 |
Accumulated Depreciation | 2,027 | 1,995 |
Net Book Value | 3,260 | 2,954 |
Potomac Electric Power Co [Member] | Transmission [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 1,223 | 1,166 |
Accumulated Depreciation | 444 | 419 |
Net Book Value | 779 | 747 |
Potomac Electric Power Co [Member] | Construction Work In Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 312 | 303 |
Accumulated Depreciation | ' | ' |
Net Book Value | 312 | 303 |
Potomac Electric Power Co [Member] | Non-Operating and Other Property [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 488 | 432 |
Accumulated Depreciation | 301 | 291 |
Net Book Value | 187 | 141 |
Delmarva Power & Light Co/De [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 3,673 | 3,422 |
Accumulated Depreciation | 1,016 | 1,000 |
Net Book Value | 2,657 | 2,422 |
Delmarva Power & Light Co/De [Member] | Distribution [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 1,788 | 1,664 |
Accumulated Depreciation | 492 | 498 |
Net Book Value | 1,296 | 1,166 |
Delmarva Power & Light Co/De [Member] | Transmission [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 982 | 877 |
Accumulated Depreciation | 243 | 233 |
Net Book Value | 739 | 644 |
Delmarva Power & Light Co/De [Member] | Gas [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 481 | 458 |
Accumulated Depreciation | 142 | 137 |
Net Book Value | 339 | 321 |
Delmarva Power & Light Co/De [Member] | Construction Work In Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 158 | 206 |
Accumulated Depreciation | ' | ' |
Net Book Value | 158 | 206 |
Delmarva Power & Light Co/De [Member] | Non-Operating and Other Property [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 264 | 217 |
Accumulated Depreciation | 139 | 132 |
Net Book Value | 125 | 85 |
Atlantic City Electric Co [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 2,901 | 2,771 |
Accumulated Depreciation | 751 | 787 |
Net Book Value | 2,150 | 1,984 |
Atlantic City Electric Co [Member] | Generation [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 10 | 10 |
Accumulated Depreciation | 9 | 9 |
Net Book Value | 1 | 1 |
Atlantic City Electric Co [Member] | Distribution [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 1,821 | 1,707 |
Accumulated Depreciation | 442 | 461 |
Net Book Value | 1,379 | 1,246 |
Atlantic City Electric Co [Member] | Transmission [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 786 | 740 |
Accumulated Depreciation | 221 | 214 |
Net Book Value | 565 | 526 |
Atlantic City Electric Co [Member] | Construction Work In Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 110 | 133 |
Accumulated Depreciation | ' | ' |
Net Book Value | 110 | 133 |
Atlantic City Electric Co [Member] | Non-Operating and Other Property [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Original Cost | 174 | 181 |
Accumulated Depreciation | 79 | 103 |
Net Book Value | $95 | $78 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
MW | |||
Property Plant And Equipment Disclosure [Line Items] | ' | ' | ' |
Present value of future minimum lease payments | $152,000,000 | ' | ' |
Semi-annual payments | 8,000,000 | ' | ' |
Description of lease term | 'Over a 25-year period that began in December 1994 | ' | ' |
Guaranteed residual value due at end of lease term | 1 | ' | ' |
Approximate annual commitments, 2014 | 15,000,000 | ' | ' |
Approximate annual commitments, 2015 | 15,000,000 | ' | ' |
Approximate annual commitments, 2016 | 15,000,000 | ' | ' |
Approximate annual commitments, 2017 | 15,000,000 | ' | ' |
Approximate annual commitments, 2018 | 15,000,000 | ' | ' |
Approximate annual commitments, thereafter | 16,000,000 | ' | ' |
Generating capacity | ' | 790 | ' |
Decommissioning costs | ' | 3,000,000 | 2,000,000 |
Impairment losses, pre-tax | 4,000,000 | 12,000,000 | ' |
Asset retirement obligation | 2,000,000 | ' | ' |
Buzzard Point and Benning Road [Member] | ' | ' | ' |
Property Plant And Equipment Disclosure [Line Items] | ' | ' | ' |
Asset retirement obligation | 2,000,000 | 9,000,000 | ' |
Subsidiaries [Member] | ' | ' | ' |
Property Plant And Equipment Disclosure [Line Items] | ' | ' | ' |
Jointly owned plant, net book value ownership | 12,000,000 | 13,000,000 | ' |
Impairment losses, pre-tax | 4,000,000 | 12,000,000 | ' |
Impairment losses, after-tax | 3,000,000 | 7,000,000 | ' |
Conectiv Energy [Member] | ' | ' | ' |
Property Plant And Equipment Disclosure [Line Items] | ' | ' | ' |
Asset retirement obligation | 6,000,000 | ' | ' |
Minimum estimated costs for closure of the operations | 2,000,000 | ' | ' |
Maximum estimated costs for closure of the operations | 3,000,000 | ' | ' |
Annual post-closure operations, maintenance and monitoring period | '30 years | ' | ' |
Potomac Electric Power Co [Member] | ' | ' | ' |
Property Plant And Equipment Disclosure [Line Items] | ' | ' | ' |
Semi-annual payments | 8,000,000 | ' | ' |
Description of lease term | 'Over a 25-year period that began in December 1994 | ' | ' |
Guaranteed residual value due at end of lease term | 1 | ' | ' |
Approximate annual commitments, 2014 | 15,000,000 | ' | ' |
Approximate annual commitments, 2015 | 15,000,000 | ' | ' |
Approximate annual commitments, 2016 | 15,000,000 | ' | ' |
Approximate annual commitments, 2017 | 15,000,000 | ' | ' |
Approximate annual commitments, 2018 | 15,000,000 | ' | ' |
Approximate annual commitments, thereafter | 16,000,000 | ' | ' |
Atlantic City Electric Co [Member] | ' | ' | ' |
Property Plant And Equipment Disclosure [Line Items] | ' | ' | ' |
Jointly owned plant, net book value ownership | $8,000,000 | $8,000,000 | ' |
Property_Plant_and_Equipment_C
Property, Plant and Equipment - Capital Lease Assets Recorded within Property, Plant and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Leases [Line Items] | ' | ' |
Original Cost | $155 | $155 |
Accumulated Amortization | 86 | 77 |
Net Book Value | 69 | 78 |
Transmission [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Original Cost | 76 | 76 |
Accumulated Amortization | 41 | 37 |
Net Book Value | 35 | 39 |
Distribution [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Original Cost | 76 | 76 |
Accumulated Amortization | 42 | 37 |
Net Book Value | 34 | 39 |
General [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Original Cost | 3 | 3 |
Accumulated Amortization | 3 | 3 |
Net Book Value | ' | ' |
Potomac Electric Power Co [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Original Cost | 155 | 155 |
Accumulated Amortization | 86 | 77 |
Net Book Value | 69 | 78 |
Potomac Electric Power Co [Member] | Transmission [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Original Cost | 76 | 76 |
Accumulated Amortization | 41 | 37 |
Net Book Value | 35 | 39 |
Potomac Electric Power Co [Member] | Distribution [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Original Cost | 76 | 76 |
Accumulated Amortization | 42 | 37 |
Net Book Value | 34 | 39 |
Potomac Electric Power Co [Member] | General [Member] | ' | ' |
Leases [Line Items] | ' | ' |
Original Cost | 3 | 3 |
Accumulated Amortization | 3 | 3 |
Net Book Value | ' | ' |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefits - Schedule of Changes in Benefit Obligations and Plan Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in Benefit Obligation | ' | ' | ' |
Benefit obligation at end of year | $2,100 | $2,300 | ' |
Change in Plan Assets | ' | ' | ' |
Fair value of plan assets at end of year | 2,484 | 2,360 | ' |
Pension Benefits [Member] | ' | ' | ' |
Change in Benefit Obligation | ' | ' | ' |
Benefit obligation at beginning of year | 2,494 | 2,124 | ' |
Service cost | 53 | 35 | 35 |
Interest cost | 100 | 107 | 107 |
Amendments | 3 | ' | ' |
Actuarial (gain) loss | -277 | 341 | ' |
Benefits paid | -135 | -113 | ' |
Benefit obligation at end of year | 2,238 | 2,494 | 2,124 |
Change in Plan Assets | ' | ' | ' |
Fair value of plan assets at beginning of year | 2,039 | 1,694 | ' |
Actual return on plan assets | 86 | 252 | ' |
Company and participant contributions | 126 | 206 | ' |
Benefits paid | -135 | -113 | ' |
Fair value of plan assets at end of year | 2,116 | 2,039 | 1,694 |
Funded Status at end of year (plan assets less plan obligations) | -122 | -455 | ' |
Other Postretirement Benefits [Member] | ' | ' | ' |
Change in Benefit Obligation | ' | ' | ' |
Benefit obligation at beginning of year | 775 | 750 | ' |
Service cost | 8 | 7 | 5 |
Interest cost | 29 | 35 | 37 |
Amendments | -124 | ' | ' |
Actuarial (gain) loss | -71 | 24 | ' |
Benefits paid | -43 | -41 | ' |
Benefit obligation at end of year | 574 | 775 | 750 |
Change in Plan Assets | ' | ' | ' |
Fair value of plan assets at beginning of year | 321 | 281 | ' |
Actual return on plan assets | 56 | 38 | ' |
Company and participant contributions | 34 | 43 | ' |
Benefits paid | -43 | -41 | ' |
Fair value of plan assets at end of year | 368 | 321 | 281 |
Funded Status at end of year (plan assets less plan obligations) | ($206) | ($454) | ' |
Pension_and_Other_Postretireme3
Pension and Other Postretirement Benefits - Schedule of Changes in Benefit Obligations and Plan Assets (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation And Retirement Disclosure [Abstract] | ' | ' |
Medicare Part D subsidy receipts | $0 | $4 |
Pension_and_Other_Postretireme4
Pension and Other Postretirement Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | Pension Benefits [Member] | PHI Service Company [Member] | PHI Service Company [Member] | PHI Service Company [Member] | PHI Service Company [Member] | PHI Service Company [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Subsidiaries [Member] | Subsidiaries [Member] | Subsidiaries [Member] | Subsidiaries [Member] | Subsidiaries [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | ||||
Retiree [Member] | Retiree [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Retiree [Member] | Retiree [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Retiree [Member] | Retiree [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | Other Postretirement Benefits [Member] | ||||||||||||||||||||||
Amendments | Amendments | Amendments | Amendments | ||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated benefit obligation | $2,100 | $2,300 | ' | $574 | $775 | $750 | $2,238 | $2,494 | $2,124 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss to be amortized from AOCL or regulatory assets into net periodic benefit cost | ' | ' | ' | 6 | ' | ' | 44 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prior service cost to be amortized from AOCL or regulatory assets into net periodic benefit cost | ' | ' | ' | -124 | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service periods for participating employee | '11 years | '11 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of amendments, PHI approved | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Reduction of the projected benefit obligation | ' | ' | ' | -124 | ' | ' | 3 | ' | ' | ' | ' | ' | 193 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prior service credit included in projected benefit obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 124 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net periodic benefit cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | 69 | 3 | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' |
Change in the discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.95% | ' | 4.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of postretirement benefit costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37.00% | ' | ' | ' | ' | ' | ' | 29.00% | ' | ' | ' | ' | ' | ' | ' | 42.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38.00% | ' | ' |
Percentage of plan asset target allocation | 66.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unfunded capital commitments | 12 | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension contributions | 120 | 200 | 110 | ' | ' | ' | ' | ' | ' | 80 | 85 | ' | ' | ' | 10 | 85 | 40 | 10 | 85 | ' | ' | ' | 30 | 30 | 30 | 30 | 30 | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 85 | 40 | ' | ' | ' |
OPEB contributions | ' | ' | ' | 6 | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 7 | 6 | ' | ' | ' | ' | ' | 6 | 7 | 7 | ' | ' | ' | 7 | 13 | ' | ' | ' | 6 | 5 | 7 |
Medicare Part D subsidy receipts | 0 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of participants vested | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Defined contribution plan matching contributions | 12 | 12 | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension and other postretirement net periodic benefit cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18 | 23 | 23 | ' | ' | ' | ' | ' | 17 | 24 | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34 | 39 | 43 | ' | ' | ' |
Prepaid pension expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 228 | 232 | ' | ' | ' | ' | ' | ' | 106 | 88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 332 | 353 | ' | ' | ' | ' |
Other postretirement benefit obligations | 206 | 454 | ' | 206 | 454 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23 | 22 | ' | ' | ' | ' | ' | ' | 35 | 34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61 | 66 | ' | ' | ' | ' |
Net periodic benefit cost | $95 | $110 | $94 | $18 | $35 | $33 | $77 | $75 | $61 | ' | ' | ' | ' | ' | $18 | $23 | $23 | ' | ' | $3 | ' | ' | $17 | $24 | $21 | ' | ' | $2 | ' | ' | $26 | $24 | $7 | ' | ' | $34 | $39 | $43 | $4 | ' | ' |
Pension_and_Other_Postretireme5
Pension and Other Postretirement Benefits - Amounts Recognized in Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Regulatory asset | $2,087 | $2,614 |
Current liabilities | -2,313 | -2,543 |
Pension benefit obligation | -116 | -449 |
Other postretirement benefit obligations | -206 | -454 |
Accumulated other comprehensive loss net of tax | 34 | 48 |
Pension Benefits [Member] | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Regulatory asset | 664 | 934 |
Current liabilities | -6 | -6 |
Pension benefit obligation | -116 | -449 |
Other postretirement benefit obligations | ' | ' |
Deferred income tax liabilities, net | -217 | -216 |
Accumulated other comprehensive loss net of tax | 25 | 32 |
Net amount recorded | 350 | 295 |
Other Postretirement Benefits [Member] | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' |
Regulatory asset | 3 | 237 |
Current liabilities | ' | ' |
Pension benefit obligation | ' | ' |
Other postretirement benefit obligations | -206 | -454 |
Deferred income tax liabilities, net | 82 | 88 |
Accumulated other comprehensive loss net of tax | ' | ' |
Net amount recorded | ($121) | ($129) |
Pension_and_Other_Postretireme6
Pension and Other Postretirement Benefits - Schedule of Amounts Included in AOCL and Regulatory Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Accumulated other comprehensive loss ($25 million and $32 million, net of tax, at December 31, 2013 and 2012, respectively) | ($13) | $14 | $11 |
Regulatory assets | 2,087 | 2,614 | ' |
Pension Benefits [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Unrecognized net actuarial loss | 694 | 979 | ' |
Unamortized prior service cost (credit) | 10 | 9 | ' |
Total | 704 | 988 | ' |
Accumulated other comprehensive loss ($25 million and $32 million, net of tax, at December 31, 2013 and 2012, respectively) | 40 | 54 | ' |
Regulatory assets | 664 | 934 | ' |
Total | 704 | 988 | ' |
Other Postretirement Benefits [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Unrecognized net actuarial loss | 117 | 238 | ' |
Unamortized prior service cost (credit) | -114 | -1 | ' |
Total | 3 | 237 | ' |
Accumulated other comprehensive loss ($25 million and $32 million, net of tax, at December 31, 2013 and 2012, respectively) | ' | ' | ' |
Regulatory assets | 3 | 237 | ' |
Total | $3 | $237 | ' |
Pension_and_Other_Postretireme7
Pension and Other Postretirement Benefits - Schedule of Amounts Included in AOCL and Regulatory Assets (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Accumulated other comprehensive loss, net of tax | $34 | $48 |
Pension Benefits [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Accumulated other comprehensive loss, net of tax | 25 | 32 |
Other Postretirement Benefits [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Accumulated other comprehensive loss, net of tax | ' | ' |
Pension_and_Other_Postretireme8
Pension and Other Postretirement Benefits - Changes in Plan Assets and Benefit Obligations Recognized in AOCL and Regulatory Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefits [Member] | ' | ' | ' |
Amounts amortized during the year: | ' | ' | ' |
Amortization of prior service (cost) credit | ($2) | ($1) | ' |
Amortization of net actuarial (loss) | -67 | -64 | -47 |
Amounts arising during the year: | ' | ' | ' |
Current year prior service cost (credit) | 3 | ' | 19 |
Current year actuarial (gain) loss | -218 | 220 | 177 |
Total recognized in AOCL and Regulatory assets for the year ended December 31 | -284 | 155 | 149 |
Other Postretirement Benefits [Member] | ' | ' | ' |
Amounts amortized during the year: | ' | ' | ' |
Amortization of prior service (cost) credit | 11 | 4 | 5 |
Amortization of net actuarial (loss) | -12 | -14 | -14 |
Amounts arising during the year: | ' | ' | ' |
Current year prior service cost (credit) | -124 | ' | 6 |
Current year actuarial (gain) loss | -109 | 4 | 53 |
Total recognized in AOCL and Regulatory assets for the year ended December 31 | ($234) | ($6) | $50 |
Pension_and_Other_Postretireme9
Pension and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Net periodic benefit cost | $95 | $110 | $94 |
Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 53 | 35 | 35 |
Interest cost | 100 | 107 | 107 |
Expected return on plan assets | -145 | -132 | -128 |
Amortization of prior service cost (credit) | 2 | 1 | ' |
Amortization of net actuarial loss | 67 | 64 | 47 |
Termination benefits | ' | ' | ' |
Net periodic benefit cost | 77 | 75 | 61 |
Other Postretirement Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | 8 | 7 | 5 |
Interest cost | 29 | 35 | 37 |
Expected return on plan assets | -20 | -18 | -19 |
Amortization of prior service cost (credit) | -11 | -4 | -5 |
Amortization of net actuarial loss | 12 | 14 | 14 |
Termination benefits | ' | 1 | 1 |
Net periodic benefit cost | $18 | $35 | $33 |
Recovered_Sheet1
Pension and Other Postretirement Benefits - Split of Combined Pension and Other Postretirement Net Periodic Benefit Costs (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | $95 | $110 | $94 |
Potomac Electric Power Co [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | 34 | 39 | 43 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | 18 | 23 | 23 |
Atlantic City Electric Co [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | 17 | 24 | 21 |
Subsidiaries [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost | $26 | $24 | $7 |
Recovered_Sheet2
Pension and Other Postretirement Benefits - Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Benefits [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Discount rate | 5.05% | 4.15% |
Rate of compensation increase | 5.00% | 5.00% |
Rate to which the cost trend rate is assumed to decline for all eligible retirees (the ultimate trend rate) | ' | ' |
Pension Benefits [Member] | Pre 65 [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Health care cost trend rate assumed for current year | ' | ' |
Pension Benefits [Member] | Post 65 [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Health care cost trend rate assumed for current year | ' | ' |
Other Postretirement Benefits [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Discount rate | 5.00% | 4.10% |
Rate of compensation increase | 5.00% | 5.00% |
Rate to which the cost trend rate is assumed to decline for all eligible retirees (the ultimate trend rate) | 5.00% | 5.00% |
Year that the cost trend rate reaches the ultimate trend rate | '2020 | '2018 |
Other Postretirement Benefits [Member] | Pre 65 [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Health care cost trend rate assumed for current year | 7.00% | 7.50% |
Other Postretirement Benefits [Member] | Post 65 [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Health care cost trend rate assumed for current year | 5.60% | 7.50% |
Recovered_Sheet3
Pension and Other Postretirement Benefits - Summary of Effect of One Percent Change in Assumed Health Care Cost (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Compensation And Retirement Disclosure [Abstract] | ' |
Effect of one percentage point increase in total service and interest cost | $1 |
Effect of one percentage point increase in postretirement benefit obligation | 17 |
Effect of one percentage point decrease in total service and interest cost | -1 |
Effect of one percentage point decrease in postretirement benefit obligation | ($19) |
Recovered_Sheet4
Pension and Other Postretirement Benefits - Weighted Average Assumptions Used to Determine Net Periodic Benefit Costs (Detail) | 0 Months Ended | 12 Months Ended | ||
Jul. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Benefits [Member] | ' | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' | ' |
Discount rate | ' | 4.15% | 5.00% | 5.65% |
Expected long-term return on plan assets | ' | 7.00% | 7.25% | 7.75% |
Rate of compensation increase | ' | 5.00% | 5.00% | 5.00% |
Health care cost trend rate | ' | ' | ' | ' |
Other Postretirement Benefits [Member] | ' | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' | ' |
Discount rate | 4.95% | 4.10% | 4.90% | 5.60% |
Expected long-term return on plan assets | ' | 7.00% | 7.25% | 7.75% |
Rate of compensation increase | ' | 5.00% | 5.00% | 5.00% |
Health care cost trend rate | ' | 7.50% | 8.00% | 8.00% |
Recovered_Sheet5
Pension and Other Postretirement Benefits - Weighted Average Assumptions Used to Determine Net Periodic Benefit Costs (Parenthetical) (Detail) (Other Postretirement Benefits [Member]) | 0 Months Ended | 12 Months Ended | ||
Jul. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Other Postretirement Benefits [Member] | ' | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' | ' |
Updated discount rate | 4.95% | 4.10% | 4.90% | 5.60% |
Recovered_Sheet6
Pension and Other Postretirement Benefits - Summary of Plan Asset Allocations (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target Plan Asset Allocation, Other | 66.00% | ' |
Retirement Plan [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan Assets, Equity | 31.00% | 30.00% |
Plan Assets, Fixed Income | 62.00% | 62.00% |
Plan Assets, Other | 7.00% | 8.00% |
Plan Assets, Total | 100.00% | 100.00% |
Target Plan Asset Allocation, Equity | 28.00% | 32.00% |
Target Plan Asset Allocation, Fixed Income | 66.00% | 62.00% |
Target Plan Asset Allocation, Other | 6.00% | 6.00% |
Target Plan Asset Allocation, Total | 100.00% | 100.00% |
Other Postretirement Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Plan Assets, Equity | 63.00% | 62.00% |
Plan Assets, Fixed Income | 31.00% | 36.00% |
Plan Assets, Other | 6.00% | 2.00% |
Plan Assets, Total | 100.00% | 100.00% |
Target Plan Asset Allocation, Equity | 60.00% | 60.00% |
Target Plan Asset Allocation, Fixed Income | 35.00% | 35.00% |
Target Plan Asset Allocation, Cash | 5.00% | 5.00% |
Target Plan Asset Allocation, Total | 100.00% | 100.00% |
Recovered_Sheet7
Pension and Other Postretirement Benefits - Schedule of Fair Value of Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | $2,484 | $2,360 | ' |
Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 2,116 | 2,039 | 1,694 |
Pension Benefits [Member] | Equity Securities Domestic [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 432 | 367 | ' |
Pension Benefits [Member] | Equity Securities International [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 217 | 254 | ' |
Pension Benefits [Member] | Fixed Income [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 1,309 | 1,256 | ' |
Pension Benefits [Member] | Private Equity [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 53 | 56 | ' |
Pension Benefits [Member] | Real Estate [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 61 | 74 | ' |
Pension Benefits [Member] | Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 44 | 32 | ' |
Other Postretirement Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 368 | 321 | 281 |
Other Postretirement Benefits [Member] | Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 233 | 199 | ' |
Other Postretirement Benefits [Member] | Fixed Income [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 113 | 115 | ' |
Other Postretirement Benefits [Member] | Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 22 | 7 | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 783 | 744 | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 444 | 451 | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Pension Benefits [Member] | Equity Securities Domestic [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 185 | 169 | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Pension Benefits [Member] | Equity Securities International [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 215 | 250 | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Pension Benefits [Member] | Fixed Income [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Pension Benefits [Member] | Private Equity [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Pension Benefits [Member] | Real Estate [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Pension Benefits [Member] | Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 44 | 32 | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Other Postretirement Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 339 | 293 | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Other Postretirement Benefits [Member] | Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 204 | 171 | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Other Postretirement Benefits [Member] | Fixed Income [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 113 | 115 | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Other Postretirement Benefits [Member] | Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 22 | 7 | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 1,541 | 1,442 | ' |
Significant Other Observable Inputs (Level 2) [Member] | Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 1,512 | 1,414 | ' |
Significant Other Observable Inputs (Level 2) [Member] | Pension Benefits [Member] | Equity Securities Domestic [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 213 | 170 | ' |
Significant Other Observable Inputs (Level 2) [Member] | Pension Benefits [Member] | Equity Securities International [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 1 | ' |
Significant Other Observable Inputs (Level 2) [Member] | Pension Benefits [Member] | Fixed Income [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 1,298 | 1,243 | ' |
Significant Other Observable Inputs (Level 2) [Member] | Pension Benefits [Member] | Private Equity [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Pension Benefits [Member] | Real Estate [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Pension Benefits [Member] | Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Other Postretirement Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 29 | 28 | ' |
Significant Other Observable Inputs (Level 2) [Member] | Other Postretirement Benefits [Member] | Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 29 | 28 | ' |
Significant Other Observable Inputs (Level 2) [Member] | Other Postretirement Benefits [Member] | Fixed Income [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Other Postretirement Benefits [Member] | Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 160 | 174 | 165 |
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 35 | 31 | 27 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Income [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 11 | 13 | 9 |
Significant Unobservable Inputs (Level 3) [Member] | Private Equity [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 53 | 56 | 64 |
Significant Unobservable Inputs (Level 3) [Member] | Real Estate [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 61 | 74 | 65 |
Significant Unobservable Inputs (Level 3) [Member] | Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 160 | 174 | ' |
Significant Unobservable Inputs (Level 3) [Member] | Pension Benefits [Member] | Equity Securities Domestic [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 34 | 28 | ' |
Significant Unobservable Inputs (Level 3) [Member] | Pension Benefits [Member] | Equity Securities International [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 3 | ' |
Significant Unobservable Inputs (Level 3) [Member] | Pension Benefits [Member] | Fixed Income [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 11 | 13 | ' |
Significant Unobservable Inputs (Level 3) [Member] | Pension Benefits [Member] | Private Equity [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 53 | 56 | ' |
Significant Unobservable Inputs (Level 3) [Member] | Pension Benefits [Member] | Real Estate [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | 61 | 74 | ' |
Significant Unobservable Inputs (Level 3) [Member] | Pension Benefits [Member] | Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Other Postretirement Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Other Postretirement Benefits [Member] | Equity Securities [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Other Postretirement Benefits [Member] | Fixed Income [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Other Postretirement Benefits [Member] | Cash Equivalents [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Defined Benefit Plan, Fair Value of Plan Assets | ' | ' | ' |
Recovered_Sheet8
Pension and Other Postretirement Benefits - Reconciliation of Fair Value Measurements Using Significant Unobservable Inputs (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at end of year | $2,484 | $2,360 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at beginning of year | 174 | 165 |
Transfer in (out) of Level 3 | -3 | 2 |
Purchases | 4 | 15 |
Sales | -19 | -5 |
Settlements | -12 | -13 |
Unrealized gain/(loss) | 7 | 1 |
Realized gain | 9 | 9 |
Fair value of plan assets at end of year | 160 | 174 |
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at beginning of year | 31 | 27 |
Transfer in (out) of Level 3 | ' | ' |
Purchases | ' | 4 |
Sales | -5 | -4 |
Settlements | ' | -1 |
Unrealized gain/(loss) | 7 | 4 |
Realized gain | 2 | 1 |
Fair value of plan assets at end of year | 35 | 31 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Income [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at beginning of year | 13 | 9 |
Transfer in (out) of Level 3 | -3 | 2 |
Purchases | ' | 2 |
Sales | -1 | -1 |
Settlements | 2 | 1 |
Unrealized gain/(loss) | ' | ' |
Realized gain | ' | ' |
Fair value of plan assets at end of year | 11 | 13 |
Significant Unobservable Inputs (Level 3) [Member] | Private Equity [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at beginning of year | 56 | 64 |
Transfer in (out) of Level 3 | ' | ' |
Purchases | 2 | 4 |
Sales | ' | ' |
Settlements | -4 | -8 |
Unrealized gain/(loss) | -7 | -11 |
Realized gain | 6 | 7 |
Fair value of plan assets at end of year | 53 | 56 |
Significant Unobservable Inputs (Level 3) [Member] | Real Estate [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Fair value of plan assets at beginning of year | 74 | 65 |
Transfer in (out) of Level 3 | ' | ' |
Purchases | 2 | 5 |
Sales | -13 | ' |
Settlements | -10 | -5 |
Unrealized gain/(loss) | 7 | 8 |
Realized gain | 1 | 1 |
Fair value of plan assets at end of year | $61 | $74 |
Recovered_Sheet9
Pension and Other Postretirement Benefits - Schedule of Estimated Benefit Payments (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Pension Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $159 |
2015 | 136 |
2016 | 139 |
2017 | 142 |
2018 | 147 |
2019 through 2023 | 795 |
Other Postretirement Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 38 |
2015 | 39 |
2016 | 39 |
2017 | 40 |
2018 | 40 |
2019 through 2023 | $201 |
Debt_Components_of_LongTerm_De
Debt - Components of Long-Term Debt (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | $906 | $906 |
Debt instrument, carrying value | 906 | 906 |
Total long-term debt | 4,470 | 4,190 |
Net unamortized discount | -14 | -13 |
Current portion of long-term debt | -403 | -529 |
Total net long-term debt | 4,053 | 3,648 |
Total long-term debt | 4,470 | 4,190 |
Current portion of long-term debt | -403 | -529 |
First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 3,321 | 3,140 |
Debt instrument, carrying value | 3,321 | 3,140 |
Medium-Term Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 40 | 40 |
Debt instrument, carrying value | 40 | 40 |
Potomac Electric Power Co [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 1,910 | 1,710 |
Net unamortized discount | -11 | -9 |
Current portion of long-term debt | -175 | -200 |
Total net long-term debt | 1,724 | 1,501 |
Total long-term debt | 1,910 | 1,710 |
Current portion of long-term debt | -175 | -200 |
Atlantic City Electric Co [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 861 | 830 |
Net unamortized discount | -1 | -1 |
Current portion of long-term debt | -107 | -69 |
Total net long-term debt | 753 | 760 |
Total long-term debt | 861 | 830 |
Current portion of long-term debt | -107 | -69 |
Atlantic City Electric Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 761 | 830 |
Total long-term debt | 761 | 830 |
Atlantic City Electric Co [Member] | Variable Rate Term Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 100 | ' |
Debt instrument maturity date | '2014 | ' |
Debt instrument, carrying value | 100 | ' |
Debt instrument maturity date | '2014 | ' |
Atlantic City Electric Co [Member] | Transition Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 255 | 295 |
Net unamortized discount | 0 | ' |
Current portion of long-term debt | -41 | -39 |
Total Net Long-Term Debt | 214 | 256 |
Total long-term debt | 255 | 295 |
Current portion of long-term debt | -41 | -39 |
Total net long-term debt | 214 | 256 |
Delmarva Power & Light Co/De [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Total long-term debt | 968 | 918 |
Net unamortized discount | -1 | -1 |
Current portion of long-term debt | -100 | -250 |
Total net long-term debt | 867 | 667 |
Total long-term debt | 968 | 918 |
Current portion of long-term debt | -100 | -250 |
Delmarva Power & Light Co/De [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 650 | 600 |
Debt instrument, carrying value | 650 | 600 |
Delmarva Power & Light Co/De [Member] | Unsecured Tax-Exempt Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 78 | 78 |
Debt instrument, carrying value | 78 | 78 |
Delmarva Power & Light Co/De [Member] | Medium-Term Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 40 | 40 |
Debt instrument, carrying value | 40 | 40 |
Delmarva Power & Light Co/De [Member] | Unsecured Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 200 | 200 |
Debt instrument, carrying value | 200 | 200 |
4.95% Due 2013 [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | ' | 200 |
Debt interest percentage | 4.95% | ' |
Debt instrument maturity date | '2013 | ' |
Debt instrument, carrying value | ' | 200 |
Debt interest percentage | 4.95% | ' |
Debt instrument maturity date | '2013 | ' |
4.95% Due 2013 [Member] | Potomac Electric Power Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | ' | 200 |
Debt interest percentage | 4.95% | ' |
Debt instrument maturity date | '2013 | ' |
Debt instrument, carrying value | ' | 200 |
Debt interest percentage | 4.95% | ' |
Debt instrument maturity date | '2013 | ' |
4.65% Due 2014 [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 175 | 175 |
Debt interest percentage | 4.65% | ' |
Debt instrument maturity date | '2014 | ' |
Debt instrument, carrying value | 175 | 175 |
Debt interest percentage | 4.65% | ' |
Debt instrument maturity date | '2014 | ' |
4.65% Due 2014 [Member] | Potomac Electric Power Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 175 | 175 |
Debt interest percentage | 4.65% | ' |
Debt instrument maturity date | '2014 | ' |
Debt instrument, carrying value | 175 | 175 |
Debt interest percentage | 4.65% | ' |
Debt instrument maturity date | '2014 | ' |
3.05% Due 2022 [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 200 | 200 |
Debt interest percentage | 3.05% | ' |
Debt instrument maturity date | '2022 | ' |
Debt instrument, carrying value | 200 | 200 |
Debt interest percentage | 3.05% | ' |
Debt instrument maturity date | '2022 | ' |
3.05% Due 2022 [Member] | Potomac Electric Power Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 200 | 200 |
Debt interest percentage | 3.05% | ' |
Debt instrument maturity date | '2022 | ' |
Debt instrument, carrying value | 200 | 200 |
Debt interest percentage | 3.05% | ' |
Debt instrument maturity date | '2022 | ' |
6.20% Due 2022 [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 110 | 110 |
Debt interest percentage | 6.20% | ' |
Debt instrument maturity date | '2022 | ' |
Debt instrument, carrying value | 110 | 110 |
Debt interest percentage | 6.20% | ' |
Debt instrument maturity date | '2022 | ' |
6.20% Due 2022 [Member] | Potomac Electric Power Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 110 | 110 |
Debt interest percentage | 6.20% | ' |
Debt instrument maturity date | '2022 | ' |
Debt instrument, carrying value | 110 | 110 |
Debt interest percentage | 6.20% | ' |
Debt instrument maturity date | '2022 | ' |
5.75% Due 2034 [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 100 | 100 |
Debt interest percentage | 5.75% | ' |
Debt instrument maturity date | '2034 | ' |
Debt instrument, carrying value | 100 | 100 |
Debt interest percentage | 5.75% | ' |
Debt instrument maturity date | '2034 | ' |
5.75% Due 2034 [Member] | Potomac Electric Power Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 100 | 100 |
Debt interest percentage | 5.75% | ' |
Debt instrument maturity date | '2034 | ' |
Debt instrument, carrying value | 100 | 100 |
Debt interest percentage | 5.75% | ' |
Debt instrument maturity date | '2034 | ' |
5.40% Due 2035 [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 175 | 175 |
Debt interest percentage | 5.40% | ' |
Debt instrument maturity date | '2035 | ' |
Debt instrument, carrying value | 175 | 175 |
Debt interest percentage | 5.40% | ' |
Debt instrument maturity date | '2035 | ' |
5.40% Due 2035 [Member] | Potomac Electric Power Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 175 | 175 |
Debt interest percentage | 5.40% | ' |
Debt instrument maturity date | '2035 | ' |
Debt instrument, carrying value | 175 | 175 |
Debt interest percentage | 5.40% | ' |
Debt instrument maturity date | '2035 | ' |
6.50% Due 2037 [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 500 | 500 |
Debt interest percentage | 6.50% | ' |
Debt instrument maturity date | '2037 | ' |
Debt instrument, carrying value | 500 | 500 |
Debt interest percentage | 6.50% | ' |
Debt instrument maturity date | '2037 | ' |
6.50% Due 2037 [Member] | Potomac Electric Power Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 500 | 500 |
Debt interest percentage | 6.50% | ' |
Debt instrument maturity date | '2037 | ' |
Debt instrument, carrying value | 500 | 500 |
Debt interest percentage | 6.50% | ' |
Debt instrument maturity date | '2037 | ' |
7.90% Due 2038 [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 250 | 250 |
Debt interest percentage | 7.90% | ' |
Debt instrument maturity date | '2038 | ' |
Debt instrument, carrying value | 250 | 250 |
Debt interest percentage | 7.90% | ' |
Debt instrument maturity date | '2038 | ' |
7.90% Due 2038 [Member] | Potomac Electric Power Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 250 | 250 |
Debt interest percentage | 7.90% | ' |
Debt instrument maturity date | '2038 | ' |
Debt instrument, carrying value | 250 | 250 |
Debt interest percentage | 7.90% | ' |
Debt instrument maturity date | '2038 | ' |
4.15% Due 2043 [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 250 | ' |
Debt interest percentage | 4.15% | ' |
Debt instrument maturity date | '2043 | ' |
Debt instrument, carrying value | 250 | ' |
Debt interest percentage | 4.15% | ' |
Debt instrument maturity date | '2043 | ' |
4.15% Due 2043 [Member] | Potomac Electric Power Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 250 | ' |
Debt interest percentage | 4.15% | ' |
Debt instrument maturity date | '2043 | ' |
Debt instrument, carrying value | 250 | ' |
Debt interest percentage | 4.15% | ' |
Debt instrument maturity date | '2043 | ' |
4.95% Due 2043 [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 150 | ' |
Debt interest percentage | 4.95% | ' |
Debt instrument maturity date | '2043 | ' |
Debt instrument, carrying value | 150 | ' |
Debt interest percentage | 4.95% | ' |
Debt instrument maturity date | '2043 | ' |
4.95% Due 2043 [Member] | Potomac Electric Power Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 150 | ' |
Debt interest percentage | 4.95% | ' |
Debt instrument maturity date | '2043 | ' |
Debt instrument, carrying value | 150 | ' |
Debt interest percentage | 4.95% | ' |
Debt instrument maturity date | '2043 | ' |
6.63% Due 2013 [Member] | Atlantic City Electric Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | ' | 69 |
Debt interest percentage | 6.63% | ' |
Debt instrument maturity date | '2013 | ' |
Debt instrument, carrying value | ' | 69 |
Debt interest percentage | 6.63% | ' |
Debt instrument maturity date | '2013 | ' |
7.63% Due 2014 [Member] | Atlantic City Electric Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 7 | 7 |
Debt interest percentage | 7.63% | ' |
Debt instrument maturity date | '2014 | ' |
Debt instrument, carrying value | 7 | 7 |
Debt interest percentage | 7.63% | ' |
Debt instrument maturity date | '2014 | ' |
7.68% Due 2015 - 2016 [Member] | Atlantic City Electric Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 17 | 17 |
Debt interest percentage | 7.68% | ' |
Debt instrument maturity date, start | '2015 | ' |
Debt instrument, carrying value | 17 | 17 |
Debt instrument maturity date, end | '2016 | ' |
Debt interest percentage | 7.68% | ' |
Debt instrument maturity date, start | '2015 | ' |
Debt instrument maturity date, end | '2016 | ' |
7.75% Due 2018 [Member] | Atlantic City Electric Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 250 | 250 |
Debt interest percentage | 7.75% | ' |
Debt instrument maturity date | '2018 | ' |
Debt instrument, carrying value | 250 | 250 |
Debt interest percentage | 7.75% | ' |
Debt instrument maturity date | '2018 | ' |
6.80% Due 2021 [Member] | Atlantic City Electric Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 39 | 39 |
Debt interest percentage | 6.80% | ' |
Debt instrument maturity date | '2021 | ' |
Debt instrument, carrying value | 39 | 39 |
Debt interest percentage | 6.80% | ' |
Debt instrument maturity date | '2021 | ' |
4.35% Due 2021 [Member] | Atlantic City Electric Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 200 | 200 |
Debt interest percentage | 4.35% | ' |
Debt instrument maturity date | '2021 | ' |
Debt instrument, carrying value | 200 | 200 |
Debt interest percentage | 4.35% | ' |
Debt instrument maturity date | '2021 | ' |
4.875% Due 2029 [Member] | Atlantic City Electric Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 23 | 23 |
Debt interest percentage | 4.88% | ' |
Debt instrument maturity date | '2029 | ' |
Debt instrument, carrying value | 23 | 23 |
Debt interest percentage | 4.88% | ' |
Debt instrument maturity date | '2029 | ' |
5.80% Due 2034 [Member] | Atlantic City Electric Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 120 | 120 |
Debt interest percentage | 5.80% | ' |
Debt instrument maturity date | '2034 | ' |
Debt instrument, carrying value | 120 | 120 |
Debt interest percentage | 5.80% | ' |
Debt instrument maturity date | '2034 | ' |
5.80% Due 2036 [Member] | Atlantic City Electric Co [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 105 | 105 |
Debt interest percentage | 5.80% | ' |
Debt instrument maturity date | '2036 | ' |
Debt instrument, carrying value | 105 | 105 |
Debt interest percentage | 5.80% | ' |
Debt instrument maturity date | '2036 | ' |
6.40% Due 2013 [Member] | Delmarva Power & Light Co/De [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | ' | 250 |
Debt interest percentage | 6.40% | ' |
Debt instrument maturity date | '2013 | ' |
Debt instrument, carrying value | ' | 250 |
Debt interest percentage | 6.40% | ' |
Debt instrument maturity date | '2013 | ' |
5.22% Due 2016 [Member] | Delmarva Power & Light Co/De [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 100 | 100 |
Debt interest percentage | 5.22% | ' |
Debt instrument maturity date | '2016 | ' |
Debt instrument, carrying value | 100 | 100 |
Debt interest percentage | 5.22% | ' |
Debt instrument maturity date | '2016 | ' |
3.50% Due 2023 [Member] | Delmarva Power & Light Co/De [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 300 | ' |
Debt interest percentage | 3.50% | ' |
Debt instrument maturity date | '2023 | ' |
Debt instrument, carrying value | 300 | ' |
Debt interest percentage | 3.50% | ' |
Debt instrument maturity date | '2023 | ' |
4.00% Due 2042 [Member] | Delmarva Power & Light Co/De [Member] | First Mortgage Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 250 | 250 |
Debt interest percentage | 4.00% | ' |
Debt instrument maturity date | '2042 | ' |
Debt instrument, carrying value | 250 | 250 |
Debt interest percentage | 4.00% | ' |
Debt instrument maturity date | '2042 | ' |
5.40% Due 2031 [Member] | Delmarva Power & Light Co/De [Member] | Unsecured Tax-Exempt Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 78 | 78 |
Debt interest percentage | 5.40% | ' |
Debt instrument maturity date | '2031 | ' |
Debt instrument, carrying value | 78 | 78 |
Debt interest percentage | 5.40% | ' |
Debt instrument maturity date | '2031 | ' |
7.56% - 7.58% Due 2017 [Member] | Delmarva Power & Light Co/De [Member] | Medium-Term Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 14 | 14 |
Debt instrument maturity date | '2017 | ' |
Debt instrument, carrying value | 14 | 14 |
Debt instrument maturity date | '2017 | ' |
Debt instrument percentage, minimum | 7.56% | ' |
Debt instrument percentage, maximum | 7.58% | ' |
Debt instrument percentage, minimum | 7.56% | ' |
Debt instrument percentage, maximum | 7.58% | ' |
6.81% Due 2018 [Member] | Delmarva Power & Light Co/De [Member] | Medium-Term Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 4 | 4 |
Debt interest percentage | 6.81% | ' |
Debt instrument maturity date | '2018 | ' |
Debt instrument, carrying value | 4 | 4 |
Debt interest percentage | 6.81% | ' |
Debt instrument maturity date | '2018 | ' |
7.61% Due 2019 [Member] | Delmarva Power & Light Co/De [Member] | Medium-Term Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 12 | 12 |
Debt interest percentage | 7.61% | ' |
Debt instrument maturity date | '2019 | ' |
Debt instrument, carrying value | 12 | 12 |
Debt interest percentage | 7.61% | ' |
Debt instrument maturity date | '2019 | ' |
7.72% Due 2027 [Member] | Delmarva Power & Light Co/De [Member] | Medium-Term Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 10 | 10 |
Debt interest percentage | 7.72% | ' |
Debt instrument maturity date | '2027 | ' |
Debt instrument, carrying value | 10 | 10 |
Debt interest percentage | 7.72% | ' |
Debt instrument maturity date | '2027 | ' |
6.59% - 6.69% Due 2014 [Member] | Potomac Capital Investment Corporation (PCI) [Member] | Recourse Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 11 | 11 |
Debt instrument maturity date | '2014 | ' |
Debt instrument, carrying value | 11 | 11 |
Debt instrument maturity date | '2014 | ' |
Debt instrument percentage, minimum | 6.59% | ' |
Debt instrument percentage, maximum | 6.69% | ' |
Debt instrument percentage, minimum | 6.59% | ' |
Debt instrument percentage, maximum | 6.69% | ' |
5.90% - 7.46% Due 2017-2024 [Member] | Potomac Capital Investment Corporation (PCI) [Member] | Secured Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 14 | 15 |
Debt instrument maturity date, start | '2017 | ' |
Debt instrument, carrying value | 14 | 15 |
Debt instrument maturity date, end | '2024 | ' |
Debt instrument percentage, minimum | 5.90% | ' |
Debt instrument percentage, maximum | 7.46% | ' |
Debt instrument percentage, minimum | 5.90% | ' |
Debt instrument percentage, maximum | 7.46% | ' |
Debt instrument maturity date, start | '2017 | ' |
Debt instrument maturity date, end | '2024 | ' |
2.70% Due 2015 [Member] | Unsecured Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 250 | 250 |
Debt interest percentage | 2.70% | ' |
Debt instrument maturity date | '2015 | ' |
Debt instrument, carrying value | 250 | 250 |
Debt interest percentage | 2.70% | ' |
Debt instrument maturity date | '2015 | ' |
5.90% Due 2016 [Member] | Unsecured Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 190 | 190 |
Debt interest percentage | 5.90% | ' |
Debt instrument maturity date | '2016 | ' |
Debt instrument, carrying value | 190 | 190 |
Debt interest percentage | 5.90% | ' |
Debt instrument maturity date | '2016 | ' |
6.125% Due 2017 [Member] | Unsecured Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 81 | 81 |
Debt interest percentage | 6.13% | ' |
Debt instrument maturity date | '2017 | ' |
Debt instrument, carrying value | 81 | 81 |
Debt interest percentage | 6.13% | ' |
Debt instrument maturity date | '2017 | ' |
7.45% Due 2032 [Member] | Unsecured Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 185 | 185 |
Debt interest percentage | 7.45% | ' |
Debt instrument maturity date | '2032 | ' |
Debt instrument, carrying value | 185 | 185 |
Debt interest percentage | 7.45% | ' |
Debt instrument maturity date | '2032 | ' |
5.00% Due 2014 [Member] | Delmarva Power & Light Co/De [Member] | Unsecured Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 100 | 100 |
Debt interest percentage | 5.00% | ' |
Debt instrument maturity date | '2014 | ' |
Debt instrument, carrying value | 100 | 100 |
Debt interest percentage | 5.00% | ' |
Debt instrument maturity date | '2014 | ' |
5.00% Due 2015 [Member] | Delmarva Power & Light Co/De [Member] | Unsecured Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 100 | 100 |
Debt interest percentage | 5.00% | ' |
Debt instrument maturity date | '2015 | ' |
Debt instrument, carrying value | 100 | 100 |
Debt interest percentage | 5.00% | ' |
Debt instrument maturity date | '2015 | ' |
4.46% Due 2016 [Member] | Atlantic City Electric Co [Member] | Transition Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 8 | 19 |
Debt interest percentage | 4.46% | ' |
Debt instrument maturity date | '2016 | ' |
Debt instrument, carrying value | 8 | 19 |
Debt interest percentage | 4.46% | ' |
Debt instrument maturity date | '2016 | ' |
4.91% Due 2017 [Member] | Atlantic City Electric Co [Member] | Transition Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 46 | 75 |
Debt interest percentage | 4.91% | ' |
Debt instrument maturity date | '2017 | ' |
Debt instrument, carrying value | 46 | 75 |
Debt interest percentage | 4.91% | ' |
Debt instrument maturity date | '2017 | ' |
5.05% Due 2020 [Member] | Atlantic City Electric Co [Member] | Transition Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 54 | 54 |
Debt interest percentage | 5.05% | ' |
Debt instrument maturity date | '2020 | ' |
Debt instrument, carrying value | 54 | 54 |
Debt interest percentage | 5.05% | ' |
Debt instrument maturity date | '2020 | ' |
5.55% Due 2023 [Member] | Atlantic City Electric Co [Member] | Transition Bonds [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, carrying value | 147 | 147 |
Debt interest percentage | 5.55% | ' |
Debt instrument maturity date | '2023 | ' |
Debt instrument, carrying value | $147 | $147 |
Debt interest percentage | 5.55% | ' |
Debt instrument maturity date | '2023 | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
Aug. 02, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 24, 2013 | Aug. 02, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 02, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 02, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | 10-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | 10-May-13 | 10-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 29-May-13 | Mar. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Medium-Term Notes [Member] | Medium-Term Notes [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | Maximum [Member] | Maximum [Member] | Restated Agreement [Member] | Construction Financing [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | PHI [Member] | PHI [Member] | PHI [Member] | PHI [Member] | Pepco Energy Services [Member] | Pepco Energy Services [Member] | ||||
4.15% Due 2043 [Member] | 4.95% Due 2043 [Member] | 4.95% Due 2013 [Member] | 4.95% Due 2013 [Member] | Term Loan Agreement [Member] | Medium-Term Notes [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | Senior Notes [Member] | Maximum [Member] | Restated Agreement [Member] | Medium-Term Notes [Member] | Medium-Term Notes [Member] | Unsecured Tax-Exempt Bonds [Member] | Unsecured Tax-Exempt Bonds [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | Maximum [Member] | Restated Agreement [Member] | Term Loan Agreement [Member] | Term Loan Agreement [Member] | Six Point Six Two Five Percentage Due Two Thousand Thirteen [Member] | In Addition to Federal Funds Rate [Member] | Eurodollar [Member] | Senior Medium Term Notes One [Member] | Unsecured Tax-Exempt Bonds [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | First Mortgage Bonds [Member] | Transition Bonds [Member] | Transition Bonds [Member] | Maximum [Member] | Maximum [Member] | Restated Agreement [Member] | Term Loan Agreement [Member] | Term Loan Agreement [Member] | Term Loan Agreement [Member] | |||||||||||||||||||||||
4.15% Due 2043 [Member] | 4.95% Due 2043 [Member] | 4.95% Due 2013 [Member] | 4.95% Due 2013 [Member] | 3.50% Due 2023 [Member] | 6.40% Due 2013 [Member] | 6.40% Due 2013 [Member] | Six Point Six Two Five Percentage Due Two Thousand Thirteen [Member] | Term Loan Agreement [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of debt | ' | ' | ' | ' | ' | ' | ' | $250,000,000 | $150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $110,000,000 | $250,000,000 | $150,000,000 | ' | ' | $1,060,000,000 | ' | ' | ' | ' | ' | $100,000,000 | ' | ' | ' | ' | ' | $300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $249,000,000 | $62,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | ' | 15-Mar-43 | 15-Nov-43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Mar-43 | 15-Nov-43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Nov-23 | ' | ' | ' | ' | ' | ' | ' | 10-Nov-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27-Mar-14 | ' | ' |
Debt instrument, interest percentage | ' | ' | ' | ' | ' | ' | ' | 4.15% | 4.95% | 4.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.15% | 4.95% | 4.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | 6.40% | ' | ' | ' | ' | ' | ' | ' | 0.92% | 6.63% | ' | ' | ' | ' | ' | ' | 6.63% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of first mortgage bonds | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 69,000,000 | ' | ' | ' | ' | ' | ' | 69,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount Received in construction financing | ' | 1,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate of amount received in construction financing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.68% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Duration to repay the financing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '23 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pollution control revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturities of long term debt, 2014 | ' | 444,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 107,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' |
Maturities of long term debt, 2015 | ' | 409,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' |
Maturities of long term debt, 2016 | ' | 338,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Maturities of long term debt, 2017 | ' | 133,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Maturities of long term debt, 2018 | ' | 286,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' |
Total long term project funding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000,000 | 13,000,000 |
Maturities of long term debt, thereafter | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,735,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 650,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 487,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' |
Ongoing commercial paper | ' | 875,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial paper outstanding | ' | 24,000,000 | 264,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 151,000,000 | 231,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 147,000,000 | 32,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000,000 | 110,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial paper weighted average interest rate | ' | 0.70% | 0.87% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.34% | 0.43% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.29% | 0.43% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.31% | 0.41% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial paper weighted average maturity, in days | ' | '5 days | '10 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 days | '5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 days | '4 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 days | '3 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate demand bonds amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105,000,000 | ' | ' | ' | ' | ' | 72,000,000 | ' | ' | ' | ' | ' | ' | ' | 18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate demand bonds maturing 2014 to 2017 | ' | 44,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate demand bonds maturing 2024 | ' | 33,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate demand bonds maturing 2028 to 2029 | ' | 46,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate demand bonds weighted average interest rate | ' | 0.24% | 0.34% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.26% | 0.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.11% | 0.18% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, expiration date | 2-Aug-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2-Aug-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2-Aug-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2-Aug-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, extended expiration date | ' | 'August 1, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'August 1, 2018 | ' | ' | 'August 1, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | 'August 1, 2018 | ' | 'August 1, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'August 1, 2018 | ' | 'August 1, 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'August 1, 2018 | ' | ' | ' | ' | ' | ' |
Parent company credit facility letter of credit, maximum | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Same day borrowings maximum percentage amount | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility borrowing capacity | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of credit available to parent | ' | 1,250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsidiary borrowing limit under parent's credit facility | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument variable interest rate in addition to the federal funds effective rate | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument variable interest rate in addition to one month LIBOR's effective rate | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio of indebtedness to total capitalization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | 65.00% | ' | ' | ' | ' | ' | ' | ' |
Ratio of deferrable interest subordinated debt to total capitalization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity under the credit facility | ' | 1,063,000,000 | 861,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 332,000,000 | 477,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 332,000,000 | 477,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 332,000,000 | 477,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Utility subsidiaries combined cash and borrowing capacity | ' | 332,000,000 | 477,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 332,000,000 | 477,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, carrying value | ' | 4,470,000,000 | 4,190,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,910,000,000 | 1,710,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 968,000,000 | 918,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 861,000,000 | 830,000,000 | ' | ' | ' | ' | ' | ' | ' | 761,000,000 | 830,000,000 | ' | 255,000,000 | 295,000,000 | ' | ' | ' | 200,000,000 | ' | 250,000,000 | ' | ' | ' |
Margin added to stated rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' | ' | 0.50% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.88% | ' | ' | ' |
PHI repaid loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' |
Debt instrument, carrying value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate demand bonds maturing 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate demand bonds maturing 2028 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate demand bonds maturing 2029 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, carrying value | ' | $906,000,000 | $906,000,000 | $40,000,000 | $40,000,000 | $3,321,000,000 | $3,140,000,000 | $250,000,000 | $150,000,000 | ' | $200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $250,000,000 | $150,000,000 | ' | $200,000,000 | ' | ' | ' | ' | ' | ' | $40,000,000 | $40,000,000 | $78,000,000 | $78,000,000 | $650,000,000 | $600,000,000 | $300,000,000 | ' | $250,000,000 | ' | ' | ' | ' | ' | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Components_of_ShortTerm_D
Debt - Components of Short-Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Short-term Debt [Line Items] | ' | ' |
Short-term debt | $565 | $965 |
Potomac Electric Power Co [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term debt | 151 | 231 |
Delmarva Power & Light Co/De [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term debt | 252 | 137 |
Atlantic City Electric Co [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term debt | 138 | 133 |
Commercial Paper [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term debt | 442 | 637 |
Commercial Paper [Member] | Potomac Electric Power Co [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term debt | 151 | 231 |
Commercial Paper [Member] | Delmarva Power & Light Co/De [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term debt | 147 | 32 |
Commercial Paper [Member] | Atlantic City Electric Co [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term debt | 120 | 110 |
Variable Rate Demand Bonds [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term debt | 123 | 128 |
Variable Rate Demand Bonds [Member] | Delmarva Power & Light Co/De [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term debt | 105 | 105 |
Variable Rate Demand Bonds [Member] | Atlantic City Electric Co [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term debt | 18 | 23 |
Term Loan Agreement [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term debt | ' | $200 |
Income_Taxes_Provision_for_Con
Income Taxes - Provision for Consolidated Income Taxes from Continuing Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current Tax (Benefit) Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | ($128) | ($166) | ($72) |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | -9 | -40 | 12 |
Total Current Tax (Benefit) Expense | ' | ' | ' | ' | ' | ' | ' | ' | -137 | -206 | -60 |
Deferred Tax Expense (Benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 393 | 254 | 163 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | 65 | 58 | 15 |
Investment tax credit amortization | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -3 | -4 |
Total Deferred Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 456 | 309 | 174 |
Consolidated Income Tax Expense | 39 | 65 | 30 | 185 | 11 | 57 | 26 | 9 | 319 | 103 | 114 |
Potomac Electric Power Co [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current Tax (Benefit) Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | -39 | -84 | -19 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -27 | -16 |
Total Current Tax (Benefit) Expense | ' | ' | ' | ' | ' | ' | ' | ' | -40 | -111 | -35 |
Deferred Tax Expense (Benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 96 | 127 | 54 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | 24 | 33 | 19 |
Investment tax credit amortization | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | -2 |
Total Deferred Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 119 | 159 | 71 |
Consolidated Income Tax Expense | 17 | 40 | 20 | 2 | 10 | 35 | 8 | ' | 79 | 48 | 36 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current Tax (Benefit) Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | -8 | -9 | -22 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | 8 |
Total Current Tax (Benefit) Expense | ' | ' | ' | ' | ' | ' | ' | ' | -8 | -10 | -14 |
Deferred Tax Expense (Benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 53 | 44 | 53 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | 12 | 11 | 4 |
Investment tax credit amortization | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | -1 |
Total Deferred Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 64 | 54 | 56 |
Consolidated Income Tax Expense | 17 | 14 | 9 | 16 | 10 | 11 | 9 | 14 | 56 | 44 | 42 |
Atlantic City Electric Co [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current Tax (Benefit) Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | -23 | -31 | -9 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | -10 | -12 | 1 |
Total Current Tax (Benefit) Expense | ' | ' | ' | ' | ' | ' | ' | ' | -33 | -43 | -8 |
Deferred Tax Expense (Benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 28 | 46 | 35 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | 25 | 16 | 7 |
Investment tax credit amortization | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | -1 |
Total Deferred Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 52 | 61 | 41 |
Consolidated Income Tax Expense | $5 | $13 | $4 | ($3) | $13 | ($3) | $9 | ($1) | $19 | $18 | $33 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Consolidated Income Tax Expense from Continuing Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Rate Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax at Federal statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | $150 | $112 | $118 |
Increases (decreases) resulting from State income taxes, net of Federal effect | ' | ' | ' | ' | ' | ' | ' | ' | 27 | 19 | 23 |
Asset removal costs | ' | ' | ' | ' | ' | ' | ' | ' | -14 | -11 | -7 |
Change in estimates and interest related to uncertain and effectively settled tax positions | ' | ' | ' | 56 | ' | ' | ' | ' | 56 | -8 | -5 |
Establishment of valuation allowances related to deferred tax assets | ' | ' | ' | 101 | ' | ' | ' | ' | 101 | ' | ' |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -9 | -15 |
Consolidated Income Tax Expense | 39 | 65 | 30 | 185 | 11 | 57 | 26 | 9 | 319 | 103 | 114 |
Income tax at Federal statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Increases (decreases) resulting from State income taxes, net of Federal effect | ' | ' | ' | ' | ' | ' | ' | ' | 6.30% | 6.00% | 6.70% |
Asset removal costs | ' | ' | ' | ' | ' | ' | ' | ' | -3.30% | -3.40% | -2.10% |
Change in estimates and interest related to uncertain and effectively settled tax positions | ' | ' | ' | ' | ' | ' | ' | ' | 13.10% | -2.60% | -1.60% |
Establishment of valuation allowances related to deferred tax assets | ' | ' | ' | ' | ' | ' | ' | ' | 23.50% | ' | ' |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | -0.20% | -2.90% | -4.10% |
Consolidated Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 74.40% | 32.10% | 33.90% |
Potomac Electric Power Co [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Rate Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax at Federal statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | 80 | 61 | 47 |
Increases (decreases) resulting from State income taxes, net of Federal effect | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 10 | 8 |
Asset removal costs | ' | ' | ' | ' | ' | ' | ' | ' | -14 | -11 | -7 |
Change in estimates and interest related to uncertain and effectively settled tax positions | ' | ' | ' | 5 | ' | ' | ' | ' | -3 | -11 | -9 |
Establishment of valuation allowances related to deferred tax assets | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | 3 | -1 | -3 |
Consolidated Income Tax Expense | 17 | 40 | 20 | 2 | 10 | 35 | 8 | ' | 79 | 48 | 36 |
Income tax at Federal statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Increases (decreases) resulting from State income taxes, net of Federal effect | ' | ' | ' | ' | ' | ' | ' | ' | 5.70% | 5.70% | 5.50% |
Asset removal costs | ' | ' | ' | ' | ' | ' | ' | ' | -6.10% | -6.30% | -5.00% |
Change in estimates and interest related to uncertain and effectively settled tax positions | ' | ' | ' | ' | ' | ' | ' | ' | -1.30% | -6.30% | -6.60% |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | 1.20% | -0.50% | -2.20% |
Consolidated Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 34.50% | 27.60% | 26.70% |
Delmarva Power & Light Co/De [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Rate Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax at Federal statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | 51 | 41 | 40 |
Increases (decreases) resulting from State income taxes, net of Federal effect | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 6 | 6 |
Change in estimates and interest related to uncertain and effectively settled tax positions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3 |
Establishment of valuation allowances related to deferred tax assets | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | -3 | -3 | -1 |
Consolidated Income Tax Expense | 17 | 14 | 9 | 16 | 10 | 11 | 9 | 14 | 56 | 44 | 42 |
Income tax at Federal statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Increases (decreases) resulting from State income taxes, net of Federal effect | ' | ' | ' | ' | ' | ' | ' | ' | 5.50% | 5.10% | 5.30% |
Change in estimates and interest related to uncertain and effectively settled tax positions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2.70% |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | -1.90% | -2.50% | -0.40% |
Consolidated Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 38.60% | 37.60% | 37.20% |
Atlantic City Electric Co [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Tax Rate Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax at Federal statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | 24 | 19 | 25 |
Increases (decreases) resulting from State income taxes, net of Federal effect | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 3 | 4 |
Change in estimates and interest related to uncertain and effectively settled tax positions | ' | ' | ' | ' | ' | ' | ' | ' | -9 | -1 | 5 |
Establishment of valuation allowances related to deferred tax assets | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Plant basis adjustments | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -1 | ' |
Investment tax credit amortization | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | -1 |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | 2 | -1 | ' |
Consolidated Income Tax Expense | $5 | $13 | $4 | ($3) | $13 | ($3) | $9 | ($1) | $19 | $18 | $33 |
Income tax at Federal statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Increases (decreases) resulting from State income taxes, net of Federal effect | ' | ' | ' | ' | ' | ' | ' | ' | 7.20% | 5.70% | 6.00% |
Change in estimates and interest related to uncertain and effectively settled tax positions | ' | ' | ' | ' | ' | ' | ' | ' | -13.00% | -1.90% | 6.90% |
Plant basis adjustments | ' | ' | ' | ' | ' | ' | ' | ' | -2.90% | -1.90% | ' |
Investment tax credit amortization | ' | ' | ' | ' | ' | ' | ' | ' | -1.40% | -1.90% | -1.30% |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | 2.60% | -1.00% | 0.80% |
Consolidated Income Tax Expense | ' | ' | ' | ' | ' | ' | ' | ' | 27.50% | 34.00% | 45.80% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2011 | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 31-May-11 |
Schedule of Income Tax [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Consolidated effective income tax rates from continuing operations | ' | ' | ' | 74.40% | 32.10% | 33.90% | ' |
Change in estimates and interest related to uncertain tax positions | ' | ' | ' | $56 | ' | ' | ' |
Establishment of valuation allowance on deferred tax assets | 101 | ' | ' | ' | ' | ' | ' |
PCI Future Deferred Tax Asset | 101 | ' | ' | ' | ' | ' | ' |
Income tax settlement with IRS | ' | ' | ' | ' | 8 | 5 | ' |
Additional state income tax expense | ' | ' | ' | ' | ' | 2 | ' |
Federal and state net operating losses, years | ' | ' | ' | '20 years | ' | ' | ' |
Federal and state net operating losses, expiration period | ' | ' | ' | '2029 to 2032 | ' | ' | ' |
Unrecognized tax benefits that would impact effective tax rate | ' | ' | ' | 9 | ' | ' | ' |
Uncertain tax position Pre-tax interest income (expense) recognize | ' | ' | ' | -125 | 23 | 23 | ' |
Uncertain tax position After-tax interest income (expense) recognized | ' | ' | ' | -75 | 14 | 14 | ' |
Accrued interest receivable | ' | ' | ' | 2 | 10 | ' | ' |
Accrued interest payable | ' | ' | ' | ' | ' | 4 | ' |
Estimated possible decrease in unrecognized tax benefit lower range | ' | ' | ' | 700 | ' | ' | ' |
Estimated possible decrease in unrecognized tax benefit upper range | ' | ' | ' | 800 | ' | ' | ' |
Other taxes for continuing operations | ' | ' | ' | 422 | 426 | 445 | ' |
Valuation allowance for deferred tax assets | 101 | ' | ' | 101 | ' | ' | ' |
Delmarva Power & Light Co/De [Member] | ' | ' | ' | ' | ' | ' | ' |
Schedule of Income Tax [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Consolidated effective income tax rates from continuing operations | ' | ' | ' | 38.60% | 37.60% | 37.20% | ' |
Federal and state net operating losses, years | ' | ' | ' | '20 years | ' | ' | ' |
Federal and state net operating losses, expiration period | ' | ' | ' | '2029 to 2032 | ' | ' | ' |
Unrecognized tax benefits that would impact effective tax rate | ' | ' | ' | 1 | ' | ' | ' |
Uncertain tax position Pre-tax interest income (expense) recognize | ' | ' | ' | 1 | 1 | 6 | ' |
Uncertain tax position After-tax interest income (expense) recognized | ' | ' | ' | ' | ' | 4 | ' |
Accrued interest receivable | ' | ' | ' | 2 | 1 | 1 | ' |
Estimated possible decrease in unrecognized tax benefit lower range | ' | ' | ' | 4 | ' | ' | ' |
Estimated possible decrease in unrecognized tax benefit upper range | ' | ' | ' | 6 | ' | ' | ' |
After-tax effect of revised lease rerun | 377 | ' | ' | ' | ' | ' | ' |
Additional interest income | 1 | ' | ' | ' | ' | ' | ' |
Additional income tax (expense) benefit after-tax | ' | 1 | ' | ' | ' | 4 | ' |
Valuation allowance for deferred tax assets | ' | ' | ' | 0 | 0 | ' | ' |
Delmarva Power & Light Co/De [Member] | Deposit Made in 2006 [Member] | ' | ' | ' | ' | ' | ' | ' |
Schedule of Income Tax [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Additional income tax (expense) benefit after-tax | ' | ' | ' | ' | ' | 1 | ' |
Potomac Electric Power Co [Member] | ' | ' | ' | ' | ' | ' | ' |
Schedule of Income Tax [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Consolidated effective income tax rates from continuing operations | ' | ' | ' | 34.50% | 27.60% | 26.70% | ' |
PCI Future Deferred Tax Asset | ' | ' | ' | ' | ' | ' | 4 |
Income tax settlement with IRS | ' | ' | ' | 3 | 10 | 9 | ' |
Federal and state net operating losses, years | ' | ' | ' | '20 years | ' | ' | ' |
Federal and state net operating losses, expiration period | ' | ' | ' | '2029 to 2032 | ' | ' | ' |
Unrecognized tax benefits that would impact effective tax rate | ' | ' | ' | 1 | ' | ' | ' |
Uncertain tax position Pre-tax interest income (expense) recognize | ' | ' | ' | 5 | 18 | 8 | ' |
Uncertain tax position After-tax interest income (expense) recognized | ' | ' | ' | 3 | 11 | 5 | ' |
Accrued interest receivable | ' | ' | ' | 9 | 5 | ' | ' |
Accrued interest payable | ' | ' | ' | ' | ' | 6 | ' |
Estimated possible decrease in unrecognized tax benefit lower range | ' | ' | ' | 65 | ' | ' | ' |
Estimated possible decrease in unrecognized tax benefit upper range | ' | ' | ' | 85 | ' | ' | ' |
Additional interest income | 5 | ' | ' | 5 | ' | ' | ' |
Additional income tax (expense) benefit after-tax | ' | 1 | 5 | ' | ' | ' | ' |
Reversal of federal tax benefits | ' | ' | ' | ' | ' | 23 | ' |
Reversal of accrued state interest receivable | ' | ' | ' | ' | ' | 1 | ' |
Receipt of refunds | ' | ' | ' | ' | ' | ' | 5 |
Valuation allowance for deferred tax assets | ' | ' | ' | 0 | 0 | ' | ' |
Amended state returns | ' | ' | ' | 20 | ' | ' | ' |
Refunds received | ' | ' | ' | 4 | ' | ' | ' |
Income tax remaining recoverable amount | ' | ' | ' | 16 | ' | ' | ' |
After-tax effect of revised lease rerun | 377 | ' | ' | ' | ' | ' | ' |
Atlantic City Electric Co [Member] | ' | ' | ' | ' | ' | ' | ' |
Schedule of Income Tax [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Consolidated effective income tax rates from continuing operations | ' | ' | ' | 27.50% | 34.00% | 45.80% | ' |
Income tax settlement with IRS | ' | ' | ' | 9 | 1 | 5 | ' |
Federal and state net operating losses, years | ' | ' | ' | '20 years | ' | ' | ' |
Federal and state net operating losses, expiration period | ' | ' | ' | '2029 to 2032 | ' | ' | ' |
Unrecognized tax benefits that would impact effective tax rate | ' | ' | ' | 0 | ' | ' | ' |
Uncertain tax position Pre-tax interest income (expense) recognize | ' | ' | ' | 12 | 2 | -5 | ' |
Uncertain tax position After-tax interest income (expense) recognized | ' | ' | ' | 7 | 1 | -3 | ' |
Accrued interest receivable | ' | ' | ' | 14 | 7 | 6 | ' |
Estimated possible decrease in unrecognized tax benefit lower range | ' | ' | ' | 4 | ' | ' | ' |
Estimated possible decrease in unrecognized tax benefit upper range | ' | ' | ' | 6 | ' | ' | ' |
Additional interest income | 6 | ' | ' | ' | ' | ' | ' |
Additional income tax (expense) benefit after-tax | ' | ' | 1 | ' | ' | ' | ' |
Valuation allowance for deferred tax assets | ' | ' | ' | 0 | 0 | ' | ' |
Amended state returns | ' | ' | ' | 1 | ' | ' | ' |
After-tax effect of revised lease rerun | 377 | ' | ' | ' | ' | ' | ' |
Atlantic City Electric Co [Member] | Deposit Made in 2006 [Member] | ' | ' | ' | ' | ' | ' | ' |
Schedule of Income Tax [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Additional income tax (expense) benefit after-tax | ' | 3 | ' | ' | ' | ' | ' |
Interest Expense [Member] | Delmarva Power & Light Co/De [Member] | ' | ' | ' | ' | ' | ' | ' |
Schedule of Income Tax [Line Items] | ' | ' | ' | ' | ' | ' | ' |
After-tax effect of revised lease rerun | 54 | ' | ' | ' | ' | ' | ' |
Interest Expense [Member] | Potomac Electric Power Co [Member] | ' | ' | ' | ' | ' | ' | ' |
Schedule of Income Tax [Line Items] | ' | ' | ' | ' | ' | ' | ' |
After-tax effect of revised lease rerun | 54 | ' | ' | ' | ' | ' | ' |
Interest Expense [Member] | Atlantic City Electric Co [Member] | ' | ' | ' | ' | ' | ' | ' |
Schedule of Income Tax [Line Items] | ' | ' | ' | ' | ' | ' | ' |
After-tax effect of revised lease rerun | $54 | ' | ' | ' | ' | ' | ' |
Income_Taxes_Components_of_Con
Income Taxes - Components of Consolidated Deferred Tax Liabilities (Assets) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ' | ' |
Depreciation and other basis differences related to plant and equipment | $2,628 | $2,299 |
Deferred electric service and electric restructuring liabilities | 91 | 110 |
Cross-border energy lease investments | -6 | 756 |
Federal and state net operating loss | -350 | -394 |
Valuation allowances on state net operating losses | 21 | 21 |
Pension and other postretirement benefits | 135 | 128 |
Deferred taxes on amounts to be collected through future rates | 75 | 58 |
Other | 285 | 204 |
Total Deferred Tax Liabilities, net | 2,879 | 3,182 |
Deferred tax assets included in Current Assets | 51 | 28 |
Deferred tax liabilities included in Other Current Liabilities | -2 | -2 |
Total Consolidated Deferred Tax Liabilities, net non-current | 2,928 | 3,208 |
Potomac Electric Power Co [Member] | ' | ' |
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ' | ' |
Depreciation and other basis differences related to plant and equipment | 1,240 | 1,105 |
Federal and state net operating loss | -169 | -174 |
Pension and other postretirement benefits | 105 | 111 |
Deferred taxes on amounts to be collected through future rates | 43 | 28 |
Other | 145 | 140 |
Total Deferred Tax Liabilities, net | 1,364 | 1,210 |
Deferred tax assets included in Current Assets | 48 | 9 |
Total Consolidated Deferred Tax Liabilities, net non-current | 1,412 | 1,219 |
Delmarva Power & Light Co/De [Member] | ' | ' |
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ' | ' |
Depreciation and other basis differences related to plant and equipment | 712 | 623 |
Deferred electric service and electric restructuring liabilities | -5 | -5 |
Federal and state net operating loss | -125 | -80 |
Pension and other postretirement benefits | 80 | 85 |
Deferred taxes on amounts to be collected through future rates | 16 | 15 |
Other | 80 | 49 |
Total Deferred Tax Liabilities, net | 758 | 687 |
Deferred tax assets included in Current Assets | 59 | 11 |
Deferred tax liabilities included in Other Current Liabilities | -1 | -1 |
Total Consolidated Deferred Tax Liabilities, net non-current | 816 | 697 |
Atlantic City Electric Co [Member] | ' | ' |
Schedule Of Deferred Income Tax Assets And Liabilities [Line Items] | ' | ' |
Depreciation and other basis differences related to plant and equipment | 627 | 538 |
Deferred electric service and electric restructuring liabilities | 96 | 116 |
Federal and state net operating loss | -49 | -54 |
Pension and other postretirement benefits | 29 | 34 |
Deferred taxes on amounts to be collected through future rates | 16 | 15 |
Payment for termination of purchased power contracts with NUGs | 43 | 47 |
Purchased energy | 2 | 3 |
Other | 55 | 58 |
Total Deferred Tax Liabilities, net | 819 | 757 |
Deferred tax assets included in Current Assets | 15 | 10 |
Deferred tax liabilities included in Other Current Liabilities | -1 | -1 |
Total Consolidated Deferred Tax Liabilities, net non-current | $833 | $766 |
Income_Taxes_Components_of_Con1
Income Taxes - Components of Consolidated Deferred Tax Liabilities (Assets) (Parenthetical) (Detail) (USD $) | Mar. 31, 2013 |
In Millions, unless otherwise specified | |
Income Tax Disclosure [Abstract] | ' |
Establishment of valuation allowance on deferred tax assets | $101 |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Beginning and Ending Balances of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unrecognized Tax Benefits [Line Items] | ' | ' | ' |
Unrecognized Tax Benefits, Beginning balance | $200 | $357 | $395 |
Tax positions related to current year, Additions | 3 | 1 | 2 |
Tax positions related to current year, Reductions | ' | ' | ' |
Tax positions related to prior years, Additions | 646 | 79 | 20 |
Tax positions related to prior years, Reductions | -12 | -235 | -57 |
Settlements | -6 | -2 | -3 |
Unrecognized Tax Benefits, Ending balance | 831 | 200 | 357 |
Potomac Electric Power Co [Member] | ' | ' | ' |
Unrecognized Tax Benefits [Line Items] | ' | ' | ' |
Unrecognized Tax Benefits, Beginning balance | 91 | 173 | 190 |
Tax positions related to current year, Additions | 1 | ' | ' |
Tax positions related to current year, Reductions | ' | ' | ' |
Tax positions related to prior years, Additions | 12 | 60 | 12 |
Tax positions related to prior years, Reductions | -3 | -142 | -26 |
Settlements | ' | ' | -3 |
Unrecognized Tax Benefits, Ending balance | 101 | 91 | 173 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' |
Unrecognized Tax Benefits [Line Items] | ' | ' | ' |
Unrecognized Tax Benefits, Beginning balance | 9 | 35 | 40 |
Tax positions related to current year, Additions | ' | ' | ' |
Tax positions related to current year, Reductions | ' | ' | ' |
Tax positions related to prior years, Additions | ' | ' | 7 |
Tax positions related to prior years, Reductions | ' | -26 | -12 |
Settlements | ' | ' | ' |
Unrecognized Tax Benefits, Ending balance | 9 | 9 | 35 |
Atlantic City Electric Co [Member] | ' | ' | ' |
Unrecognized Tax Benefits [Line Items] | ' | ' | ' |
Unrecognized Tax Benefits, Beginning balance | 17 | 79 | 83 |
Tax positions related to current year, Additions | 2 | 1 | 2 |
Tax positions related to current year, Reductions | ' | ' | ' |
Tax positions related to prior years, Additions | 1 | 8 | 4 |
Tax positions related to prior years, Reductions | -5 | -69 | -10 |
Settlements | -6 | -2 | ' |
Unrecognized Tax Benefits, Ending balance | $9 | $17 | $79 |
Income_Taxes_Other_Taxes_Detai
Income Taxes - Other Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Income Tax [Line Items] | ' | ' | ' |
Gross Receipts/Delivery | $133 | $135 | $145 |
Property | 77 | 75 | 71 |
County Fuel and Energy | 153 | 160 | 170 |
Environmental, Use and Other | 65 | 62 | 65 |
Total | 428 | 432 | 451 |
Potomac Electric Power Co [Member] | ' | ' | ' |
Schedule of Income Tax [Line Items] | ' | ' | ' |
Gross Receipts/Delivery | 108 | 106 | 109 |
Property | 45 | 46 | 44 |
County Fuel and Energy | 153 | 160 | 170 |
Environmental, Use and Other | 62 | 60 | 59 |
Total | 368 | 372 | 382 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' |
Schedule of Income Tax [Line Items] | ' | ' | ' |
Gross Receipts/Delivery | 15 | 14 | 15 |
Property | 24 | 21 | 19 |
Environmental, Use and Other | 1 | 1 | 3 |
Total | 40 | 36 | 37 |
Atlantic City Electric Co [Member] | ' | ' | ' |
Schedule of Income Tax [Line Items] | ' | ' | ' |
Gross Receipts/Delivery | 10 | 14 | 20 |
Property | 3 | 3 | 3 |
Environmental, Use and Other | 1 | 1 | 2 |
Total | $14 | $18 | $25 |
StockBased_Compensation_Divide
Stock-Based Compensation, Dividend Restrictions, and Calculations of Earnings Per Share of Common Stock - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||||||||
Feb. 28, 2013 | Jan. 31, 2013 | Sep. 30, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 27, 2013 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock authorized for issuance | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' |
Eligible percentage of common stock over the performance period target award minimum | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' |
Eligible percentage of common stock over the performance period target award maximum | ' | ' | ' | ' | ' | 200.00% | ' | ' | ' | ' |
Requisite service period (years) | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' |
Restricted stock awards | 45,444 | 45,444 | 150,330 | 150,330 | 150,330 | ' | ' | ' | ' | ' |
Unrestricted stock awards | ' | ' | 5,305 | 5,305 | 5,305 | ' | ' | ' | ' | ' |
Restricted stock units were granted to each non-employee director | ' | ' | ' | ' | ' | 37,735 | 40,749 | ' | ' | ' |
Targeted performance criteria | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' |
Unrecognized compensation expense | ' | ' | ' | ' | ' | 11,000,000 | ' | ' | ' | ' |
Costs recognized, weighted average period (years) | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' |
Stock option expiration (years) | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Stock options outstanding | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Deferred compensation balance | ' | ' | ' | ' | ' | 2,000,000 | 1,000,000 | ' | ' | ' |
Ratio of equity to total capitalization | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' |
Retained earnings | ' | ' | ' | ' | ' | 595,000,000 | 1,077,000,000 | 1,040,000,000 | ' | 1,027,000,000 |
Shares of PHI common stock | ' | ' | ' | ' | ' | 17,922,077 | ' | ' | ' | ' |
Public offering price | ' | ' | ' | ' | ' | $19.25 | ' | ' | ' | ' |
Underwriting discount | ' | ' | ' | ' | ' | $0.67 | ' | ' | ' | ' |
Initial pricing of equity forward instruments | ' | ' | ' | ' | ' | $18.58 | ' | ' | ' | ' |
Forward sale price | ' | ' | ' | ' | ' | ' | ' | ' | 17.39 | ' |
Proceeds from equity forward transaction | ' | ' | ' | ' | ' | 312,000,000 | ' | ' | ' | ' |
Purchases of common stock minimum per calendar month | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' |
Purchases of common stock maximum per calendar year | ' | ' | ' | ' | ' | 300,000 | ' | ' | ' | ' |
Shares issued and sold under the DRP | ' | ' | ' | ' | ' | 2,000,000 | 2,000,000 | 2,000,000 | ' | ' |
2012 LTIP [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock authorized for issuance | ' | ' | ' | ' | ' | 8,000,000 | ' | ' | ' | ' |
Time-Based Restricted Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Retention Awards | 2 | 2 | 4 | 4 | 4 | ' | ' | ' | ' | ' |
Vesting Period | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Performance Based Restricted Stock Award [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | ' | ' | ' | ' | $12,000,000 | $11,000,000 | $6,000,000 | ' | ' |
Vesting Period | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' |
Time Based Restricted Stock Awards [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting Period | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' |
Non Employee Directors [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting Period | ' | ' | ' | ' | ' | '1 year | '1 year | ' | ' | ' |
StockBased_Compensation_Divide1
Stock-Based Compensation, Dividend Restrictions, and Calculations of Earnings Per Share of Common Stock - Schedule of Restricted Stock and Restricted Stock Units (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares outstanding, beginning balance | 1,680,207 |
Vested, number of shares | -572,623 |
Granted, number of shares | 682,702 |
Forfeited, number of shares | -136,902 |
Number of shares outstanding, ending balance | 1,653,384 |
Time-Based Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares outstanding, beginning balance | 134,607 |
Vested, number of shares | -134,607 |
Number of shares outstanding, ending balance | ' |
Weighted average grant date fair value, beginning of period | 16.56 |
Vested, weighted average grant date fair value | 16.56 |
Weighted average grant date fair value, ending of period | ' |
Time-Based Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares outstanding, beginning balance | 513,204 |
Vested, number of shares | -123,021 |
Granted, number of shares | 237,733 |
Forfeited, number of shares | -44,362 |
Number of shares outstanding, ending balance | 583,554 |
Weighted average grant date fair value, beginning of period | 19.42 |
Vested, weighted average grant date fair value | 18.45 |
Granted, weighted average grant date fair value | 19.7 |
Forfeited, weighted average grant date fair value | 19.64 |
Weighted average grant date fair value, ending of period | 19.34 |
Performance-Based Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares outstanding, beginning balance | 1,032,396 |
Vested, number of shares | -314,995 |
Granted, number of shares | 444,969 |
Forfeited, number of shares | -92,540 |
Number of shares outstanding, ending balance | 1,069,830 |
Weighted average grant date fair value, beginning of period | 20.34 |
Vested, weighted average grant date fair value | 20 |
Granted, weighted average grant date fair value | 17.03 |
Forfeited, weighted average grant date fair value | 19.91 |
Weighted average grant date fair value, ending of period | 19.06 |
StockBased_Compensation_Divide2
Stock-Based Compensation, Dividend Restrictions, and Calculations of Earnings Per Share of Common Stock - Weighted Average Grant Date Fair Value Per Share (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Time-Based Restricted Stock and Unrestricted Stock Awards [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average grant-date fair value of each performance-based restricted stock unit award granted during the year | ' | $18.85 | ' |
Time-Based Restricted Stock Units Award [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average grant-date fair value of each performance-based restricted stock unit award granted during the year | $19.70 | $19.69 | $18.87 |
Performance Based Restricted Stock Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average grant-date fair value of each performance-based restricted stock unit award granted during the year | $17.03 | $21.13 | $19.56 |
StockBased_Compensation_Divide3
Stock-Based Compensation, Dividend Restrictions, and Calculations of Earnings Per Share of Common Stock - Dividends Received From Subsidiaries (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Dividends received from subsidiaries | $136 | $70 | $85 |
Potomac Electric Power Co [Member] | ' | ' | ' |
Dividends received from subsidiaries | 46 | 35 | 25 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' |
Dividends received from subsidiaries | 30 | ' | 60 |
Atlantic City Electric Co [Member] | ' | ' | ' |
Dividends received from subsidiaries | $60 | $35 | ' |
StockBased_Compensation_Divide4
Stock-Based Compensation, Dividend Restrictions, and Calculations of Earnings Per Share of Common Stock - Calculations of Earnings Per Share of Common Stock (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income from Continuing Operations | $58 | $110 | $53 | ($111) | $34 | $87 | $47 | $50 | $110 | $218 | $222 |
Net loss from discontinued operations | ' | 8 | -11 | -319 | 9 | 25 | 15 | 18 | -322 | 67 | 35 |
Net (loss) income | $58 | $118 | $42 | ($430) | $43 | $112 | $62 | $68 | ($212) | $285 | $257 |
Average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 246 | 229 | 226 |
Adjustment to shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Shares Outstanding for Computation of Basic Earnings Per Share of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | 246 | 229 | 226 |
Net effect of potentially dilutive shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Weighted Average Shares Outstanding for Computation of Diluted Earnings Per Share of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | 246 | 230 | 226 |
Basic earnings per share of common stock from continuing operations | ' | ' | ' | ' | $0.15 | $0.38 | $0.20 | $0.22 | $0.45 | $0.95 | $0.98 |
Basic (loss) earnings per share of common stock from discontinued operations | ' | ' | ' | ' | $0.03 | $0.11 | $0.07 | $0.08 | ($1.31) | $0.30 | $0.16 |
Basic (loss) earnings per share | ' | ' | ' | ' | $0.18 | $0.49 | $0.27 | $0.30 | ($0.86) | $1.25 | $1.14 |
Diluted earnings per share of common stock from continuing operations | ' | ' | ' | ' | $0.15 | $0.38 | $0.20 | $0.22 | $0.45 | $0.95 | $0.98 |
Diluted (loss) earnings per share of common stock from discontinued operations | ' | ' | ' | ' | $0.03 | $0.11 | $0.07 | $0.08 | ($1.31) | $0.29 | $0.16 |
Diluted (loss) earnings per share | ' | ' | ' | ' | $0.18 | $0.49 | $0.27 | $0.30 | ($0.86) | $1.24 | $1.14 |
StockBased_Compensation_Divide5
Stock-Based Compensation, Dividend Restrictions, and Calculations of Earnings Per Share of Common Stock - Calculations of Earnings Per Share of Common Stock (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Statement [Abstract] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 14,900 |
StockBased_Compensation_Divide6
Stock-Based Compensation, Dividend Restrictions, and Calculations of Earnings Per Share of Common Stock - Common Stock Reserved and Unissued (Detail) | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares | 26,569,117 |
DRP [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares | 6,104,591 |
Pepco Holdings Long-Term Incentive Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares | 7,450,404 |
Pepco Holdings 2012 Long-Term Incentive Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares | 7,971,832 |
Pepco Holdings Non-Management Directors Compensation Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares | 457,211 |
Pepco Holdings Retirement Savings Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares | 4,585,079 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments by Balance Sheet Location (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Derivative assets (non-current assets) | ' | $8 |
Derivative liabilities (current liabilities) | ' | -4 |
Derivative liabilities (non-current liabilities) | ' | -11 |
Derivatives Designated as Hedging Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets (non-current assets) | ' | ' |
Derivative assets (current assets) | ' | ' |
Total Derivative assets | ' | ' |
Derivative liabilities (current liabilities) | ' | ' |
Derivative liabilities (non-current liabilities) | ' | ' |
Total Derivative liabilities | ' | ' |
Net Derivative liability | ' | ' |
Gross Derivative Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets (non-current assets) | ' | 8 |
Derivative assets (current assets) | 1 | ' |
Total Derivative assets | 1 | 8 |
Derivative liabilities (current liabilities) | ' | -4 |
Derivative liabilities (non-current liabilities) | ' | -11 |
Total Derivative liabilities | ' | -15 |
Net Derivative liability | ' | -7 |
Net Derivative Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets (non-current assets) | ' | 8 |
Derivative assets (current assets) | ' | ' |
Total Derivative assets | ' | 8 |
Derivative liabilities (current liabilities) | ' | -4 |
Derivative liabilities (non-current liabilities) | ' | -11 |
Total Derivative liabilities | ' | -15 |
Net Derivative liability | ' | -7 |
Delmarva Power & Light Co/De [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative liabilities (current liabilities) | ' | -4 |
Delmarva Power & Light Co/De [Member] | Derivatives Designated as Hedging Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets (current assets) | ' | ' |
Total Derivative assets | ' | ' |
Derivative liabilities (current liabilities) | ' | ' |
Total Derivative liabilities | ' | ' |
Delmarva Power & Light Co/De [Member] | Gross Derivative Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets (current assets) | 1 | ' |
Total Derivative assets | 1 | ' |
Derivative liabilities (current liabilities) | ' | -4 |
Total Derivative liabilities | ' | -4 |
Delmarva Power & Light Co/De [Member] | Net Derivative Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets (current assets) | ' | ' |
Total Derivative assets | ' | ' |
Derivative liabilities (current liabilities) | ' | -4 |
Total Derivative liabilities | ' | -4 |
Other Derivative Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets (non-current assets) | ' | 8 |
Derivative assets (current assets) | 1 | ' |
Total Derivative assets | 1 | 8 |
Derivative liabilities (current liabilities) | ' | -4 |
Derivative liabilities (non-current liabilities) | ' | -11 |
Total Derivative liabilities | ' | -15 |
Net Derivative liability | ' | -7 |
Other Derivative Instruments [Member] | Delmarva Power & Light Co/De [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets (current assets) | 1 | ' |
Total Derivative assets | 1 | ' |
Derivative liabilities (current liabilities) | ' | -4 |
Total Derivative liabilities | ' | -4 |
Effects of Cash Collateral and Netting [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets (non-current assets) | ' | ' |
Derivative assets (current assets) | -1 | ' |
Total Derivative assets | -1 | ' |
Derivative liabilities (current liabilities) | ' | ' |
Derivative liabilities (non-current liabilities) | ' | ' |
Total Derivative liabilities | ' | ' |
Net Derivative liability | ' | ' |
Effects of Cash Collateral and Netting [Member] | Delmarva Power & Light Co/De [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative assets (current assets) | -1 | ' |
Total Derivative assets | -1 | ' |
Derivative liabilities (current liabilities) | ' | ' |
Total Derivative liabilities | ' | ' |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Schedule of Cash Collateral Offset Against Derivative Positions (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Cash collateral received from counterparties with the obligation to return | ($1) | ' |
Delmarva Power & Light Co/De [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Cash collateral received from counterparties with the obligation to return | ($1) | ' |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Credit risk derivative liabilities, at fair value | $0 | $4 | ' |
Cash collateral posted | 0 | 0 | ' |
Net settlement amount in the event of a downgrade below investment grade | 0 | 2 | ' |
Additional collateral that would have to be posted in the event of an investment downgrade | 0 | 2 | ' |
Cash plus borrowing capacity to meet future liquidity needs | 332 | 477 | ' |
Derivative assets (non-current assets) | ' | 8 | ' |
Derivative Liabilities (non-current liabilities) | ' | 11 | ' |
Derivatives Designated as Hedging Instruments [Member] | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Derivative assets (non-current assets) | ' | ' | ' |
Derivative Liabilities (non-current liabilities) | ' | ' | ' |
Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Net unrealized loss arising during the period | 0 | 0 | 0 |
Designated as Hedging Instrument [Member] | Derivatives Designated as Hedging Instruments [Member] | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Net realized loss recognized during the period | 0 | 0 | 5 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Credit risk derivative liabilities, at fair value | 0 | 4 | ' |
Cash collateral posted | 0 | 0 | ' |
Net settlement amount in the event of a downgrade below investment grade | 0 | 2 | ' |
Additional collateral that would have to be posted in the event of an investment downgrade | 0 | 2 | ' |
Cash plus borrowing capacity to meet future liquidity needs | 332 | 477 | ' |
Delmarva Power & Light Co/De [Member] | Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Derivative net unrealized gain (loss) | 0 | 0 | 0 |
Delmarva Power & Light Co/De [Member] | Designated as Hedging Instrument [Member] | Derivatives Designated as Hedging Instruments [Member] | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Net realized loss recognized during the period | 0 | 0 | 5 |
Atlantic City Electric Co [Member] | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Derivative net unrealized gain (loss) | 3 | -3 | ' |
Derivative assets (non-current assets) | ' | 8 | ' |
Derivative Liabilities (non-current liabilities) | ' | $11 | ' |
Atlantic City Electric Co [Member] | Capacity (MWs) [Member] | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' |
Commodity forward contracts | ' | 180 | ' |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities - Cash Flow Hedges Included in Accumulated Other Comprehensive Loss (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Accumulated Other Comprehensive Loss After-tax | $9 | $10 |
Portion Expected to be Reclassified to Income during the Next 12 Months | 1 | 1 |
Interest Rate [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Accumulated Other Comprehensive Loss After-tax | 9 | 10 |
Portion Expected to be Reclassified to Income during the Next 12 Months | $1 | $1 |
Maximum Term | '224 months | '236 months |
Derivative_Instruments_and_Hed6
Derivative Instruments and Hedging Activities - Net Unrealized Derivative Gain (Loss) Deferred as Regulatory Asset or Liability (Detail) (Other Derivative Activity [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Net unrealized gain (loss) arising during the period | $4 | ($6) | ($13) |
Net realized loss recognized during the period | -4 | -16 | -22 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Net unrealized gain (loss) arising during the period | 1 | -3 | -13 |
Net realized loss recognized during the period | ($4) | ($16) | ($22) |
Derivative_Instruments_and_Hed7
Derivative Instruments and Hedging Activities - Net Outstanding Commodity Forward Contracts That Did Not Qualify For Hedge Accounting (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
MMBTU | MMBTU | |
Delmarva Power & Light Co/De [Member] | Natural Gas (One Million British Thermal Units (MMBtu)) [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Quantity | 3,977,500 | 3,838,000 |
Net Position | 'Long | 'Long |
Atlantic City Electric Co [Member] | Capacity (MWs) [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Quantity | ' | 180 |
Net Position | ' | 'Long |
Fair_Value_Disclosures_Fair_Va
Fair Value Disclosures - Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | $116 | $112 |
Financial instruments, liabilities | 30 | 43 |
Capacity [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | ' | 8 |
Derivative instruments, liabilities | ' | 11 |
Treasury Fund [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Restricted cash and cash equivalents | 34 | 27 |
Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 66 | 60 |
Executive deferred compensation plan liabilities | 30 | 28 |
Natural Gas [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | 1 | ' |
Derivative instruments, liabilities | ' | 4 |
Money Market Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 15 | 17 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | 50 | 44 |
Financial instruments, liabilities | ' | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Capacity [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | ' | ' |
Derivative instruments, liabilities | ' | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Treasury Fund [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Restricted cash and cash equivalents | 34 | 27 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | ' | ' |
Executive deferred compensation plan liabilities | ' | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Natural Gas [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | 1 | ' |
Derivative instruments, liabilities | ' | ' |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 15 | 17 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | 47 | 42 |
Financial instruments, liabilities | 30 | 28 |
Significant Other Observable Inputs (Level 2) [Member] | Capacity [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | ' | ' |
Derivative instruments, liabilities | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Treasury Fund [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Restricted cash and cash equivalents | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 47 | 42 |
Executive deferred compensation plan liabilities | 30 | 28 |
Significant Other Observable Inputs (Level 2) [Member] | Natural Gas [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | ' | ' |
Derivative instruments, liabilities | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | 19 | 26 |
Financial instruments, liabilities | ' | 15 |
Significant Unobservable Inputs (Level 3) [Member] | Capacity [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | ' | 8 |
Derivative instruments, liabilities | ' | 11 |
Significant Unobservable Inputs (Level 3) [Member] | Treasury Fund [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Restricted cash and cash equivalents | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 19 | 18 |
Executive deferred compensation plan liabilities | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Natural Gas [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | ' | ' |
Derivative instruments, liabilities | ' | 4 |
Significant Unobservable Inputs (Level 3) [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | ' | ' |
Potomac Electric Power Co [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | 77 | 71 |
Financial instruments, liabilities | 7 | 9 |
Potomac Electric Power Co [Member] | Treasury Fund [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Restricted cash and cash equivalents | 3 | ' |
Potomac Electric Power Co [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 61 | 56 |
Executive deferred compensation plan liabilities | 7 | 9 |
Potomac Electric Power Co [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 13 | 15 |
Potomac Electric Power Co [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | 16 | 15 |
Financial instruments, liabilities | ' | ' |
Potomac Electric Power Co [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Treasury Fund [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Restricted cash and cash equivalents | 3 | ' |
Potomac Electric Power Co [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | ' | ' |
Executive deferred compensation plan liabilities | ' | ' |
Potomac Electric Power Co [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 13 | 15 |
Potomac Electric Power Co [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | 43 | 38 |
Financial instruments, liabilities | 7 | 9 |
Potomac Electric Power Co [Member] | Significant Other Observable Inputs (Level 2) [Member] | Treasury Fund [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Restricted cash and cash equivalents | ' | ' |
Potomac Electric Power Co [Member] | Significant Other Observable Inputs (Level 2) [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 43 | 38 |
Executive deferred compensation plan liabilities | 7 | 9 |
Potomac Electric Power Co [Member] | Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | ' | ' |
Potomac Electric Power Co [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | 18 | 18 |
Financial instruments, liabilities | ' | ' |
Potomac Electric Power Co [Member] | Significant Unobservable Inputs (Level 3) [Member] | Treasury Fund [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Restricted cash and cash equivalents | ' | ' |
Potomac Electric Power Co [Member] | Significant Unobservable Inputs (Level 3) [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 18 | 18 |
Executive deferred compensation plan liabilities | ' | ' |
Potomac Electric Power Co [Member] | Significant Unobservable Inputs (Level 3) [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | ' | ' |
Delmarva Power & Light Co/De [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | 3 | 3 |
Financial instruments, liabilities | 1 | 4 |
Delmarva Power & Light Co/De [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 1 | 1 |
Executive deferred compensation plan liabilities | 1 | ' |
Delmarva Power & Light Co/De [Member] | Natural Gas [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | 1 | ' |
Derivative instruments, liabilities | ' | 4 |
Delmarva Power & Light Co/De [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 1 | 2 |
Delmarva Power & Light Co/De [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | 2 | 2 |
Financial instruments, liabilities | ' | ' |
Delmarva Power & Light Co/De [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | ' | ' |
Executive deferred compensation plan liabilities | ' | ' |
Delmarva Power & Light Co/De [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Natural Gas [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | 1 | ' |
Derivative instruments, liabilities | ' | ' |
Delmarva Power & Light Co/De [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 1 | 2 |
Delmarva Power & Light Co/De [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | ' | ' |
Financial instruments, liabilities | 1 | ' |
Delmarva Power & Light Co/De [Member] | Significant Other Observable Inputs (Level 2) [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | ' | ' |
Executive deferred compensation plan liabilities | 1 | ' |
Delmarva Power & Light Co/De [Member] | Significant Other Observable Inputs (Level 2) [Member] | Natural Gas [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | ' | ' |
Derivative instruments, liabilities | ' | ' |
Delmarva Power & Light Co/De [Member] | Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | ' | ' |
Delmarva Power & Light Co/De [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | 1 | 1 |
Financial instruments, liabilities | ' | 4 |
Delmarva Power & Light Co/De [Member] | Significant Unobservable Inputs (Level 3) [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | 1 | 1 |
Executive deferred compensation plan liabilities | ' | ' |
Delmarva Power & Light Co/De [Member] | Significant Unobservable Inputs (Level 3) [Member] | Natural Gas [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | ' | ' |
Derivative instruments, liabilities | ' | 4 |
Delmarva Power & Light Co/De [Member] | Significant Unobservable Inputs (Level 3) [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan assets | ' | ' |
Atlantic City Electric Co [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | 24 | 35 |
Financial instruments, liabilities | ' | 12 |
Atlantic City Electric Co [Member] | Capacity [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | ' | 8 |
Derivative instruments, liabilities | ' | 11 |
Atlantic City Electric Co [Member] | Treasury Fund [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Restricted cash and cash equivalents | 24 | 27 |
Atlantic City Electric Co [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan liabilities | ' | 1 |
Atlantic City Electric Co [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | 24 | 27 |
Financial instruments, liabilities | ' | ' |
Atlantic City Electric Co [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Capacity [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | ' | ' |
Derivative instruments, liabilities | ' | ' |
Atlantic City Electric Co [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Treasury Fund [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Restricted cash and cash equivalents | 24 | 27 |
Atlantic City Electric Co [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan liabilities | ' | ' |
Atlantic City Electric Co [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | ' | ' |
Financial instruments, liabilities | ' | 1 |
Atlantic City Electric Co [Member] | Significant Other Observable Inputs (Level 2) [Member] | Capacity [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | ' | ' |
Derivative instruments, liabilities | ' | ' |
Atlantic City Electric Co [Member] | Significant Other Observable Inputs (Level 2) [Member] | Treasury Fund [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Restricted cash and cash equivalents | ' | ' |
Atlantic City Electric Co [Member] | Significant Other Observable Inputs (Level 2) [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan liabilities | ' | 1 |
Atlantic City Electric Co [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Financial instruments, assets | ' | 8 |
Financial instruments, liabilities | ' | 11 |
Atlantic City Electric Co [Member] | Significant Unobservable Inputs (Level 3) [Member] | Capacity [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative instruments, assets | ' | 8 |
Derivative instruments, liabilities | ' | 11 |
Atlantic City Electric Co [Member] | Significant Unobservable Inputs (Level 3) [Member] | Treasury Fund [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Restricted cash and cash equivalents | ' | ' |
Atlantic City Electric Co [Member] | Significant Unobservable Inputs (Level 3) [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Executive deferred compensation plan liabilities | ' | ' |
Fair_Value_Disclosures_Summary
Fair Value Disclosures - Summary of Primary Unobservable Inputs Used to Determine Fair Value of Level 3 Instruments and Range of Values That Could be Used for Those Inputs (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | ||
Derivative [Member] | Derivative [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Minimum [Member] | Maximum [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Minimum [Member] | Maximum [Member] | |||||||||
Capacity Contracts, Net [Member] | Natural Gas Options [Member] | Derivative [Member] | Derivative [Member] | Derivative [Member] | Derivative [Member] | Derivative [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Derivative [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||||||||||
Capacity Contracts, Net [Member] | Natural Gas Options [Member] | Capacity Contracts, Net [Member] | Natural Gas Options [Member] | Capacity Contracts, Net [Member] | Derivative [Member] | Derivative [Member] | Natural Gas Options [Member] | Derivative [Member] | Derivative [Member] | |||||||||||||||
Derivative | Derivative | Capacity Contracts, Net [Member] | Capacity Contracts, Net [Member] | Natural Gas Options [Member] | Natural Gas Options [Member] | |||||||||||||||||||
Derivative | Derivative | |||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value of financial instrument | ($5,146) | ($5,358) | ($573) | ($500) | ($3) | ($4) | ' | ' | ' | ' | ($1,244) | ($1,357) | ($215) | ($132) | ($3) | ' | ' | ($960) | ($990) | ($110) | ($113) | ($4) | ' | ' |
Volatility factor, range | ' | ' | ' | ' | ' | ' | ' | -1.57 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.57 | 2 |
Discounted cash flow, Discount rate | ' | ' | ' | ' | ' | ' | 5.00% | ' | 9.00% | ' | ' | ' | ' | ' | ' | 5.00% | 9.00% | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Disclosures_Reconci
Fair Value Disclosures - Reconciliations of Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Natural Gas [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance as of January 1 | ($4) | ($15) |
Included in income | ' | ' |
Included in accumulated other comprehensive loss | ' | ' |
Included in regulatory liabilities | ' | -2 |
Purchases | ' | ' |
Issuances | ' | ' |
Settlements | 4 | 13 |
Transfers in (out) of level 3 | ' | ' |
Balance as of December 31 | ' | -4 |
Life Insurance Contracts [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance as of January 1 | 18 | 17 |
Included in income | 4 | 4 |
Included in accumulated other comprehensive loss | ' | ' |
Included in regulatory liabilities | ' | ' |
Purchases | ' | ' |
Issuances | -3 | -3 |
Settlements | ' | ' |
Transfers in (out) of level 3 | ' | ' |
Balance as of December 31 | 19 | 18 |
Capacity [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance as of January 1 | -3 | ' |
Included in income | ' | ' |
Included in accumulated other comprehensive loss | ' | ' |
Included in regulatory liabilities | 3 | -3 |
Purchases | ' | ' |
Issuances | ' | ' |
Settlements | ' | ' |
Transfers in (out) of level 3 | ' | ' |
Balance as of December 31 | ' | -3 |
Potomac Electric Power Co [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance as of January 1 | 18 | 17 |
Included in income | 4 | 4 |
Included in accumulated other comprehensive loss | ' | ' |
Purchases | ' | ' |
Issuances | -3 | -3 |
Settlements | -1 | ' |
Transfers in (out) of level 3 | ' | ' |
Balance as of December 31 | 18 | 18 |
Atlantic City Electric Co [Member] | Capacity [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance as of January 1 | -3 | ' |
Included in income | ' | ' |
Included in accumulated other comprehensive loss | ' | ' |
Included in regulatory liabilities | 3 | -3 |
Purchases | ' | ' |
Issuances | ' | ' |
Settlements | ' | ' |
Transfers in (out) of level 3 | ' | ' |
Balance as of December 31 | ' | -3 |
Delmarva Power & Light Co/De [Member] | Natural Gas [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance as of January 1 | -4 | -15 |
Included in income | ' | ' |
Included in accumulated other comprehensive loss | ' | ' |
Included in regulatory liabilities | ' | -2 |
Purchases | ' | ' |
Issuances | ' | ' |
Settlements | 4 | 13 |
Transfers in (out) of level 3 | ' | ' |
Balance as of December 31 | ' | -4 |
Delmarva Power & Light Co/De [Member] | Life Insurance Contracts [Member] | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Balance as of January 1 | 1 | 1 |
Included in income | ' | ' |
Included in accumulated other comprehensive loss | ' | ' |
Included in regulatory liabilities | ' | ' |
Purchases | ' | ' |
Issuances | ' | ' |
Settlements | ' | ' |
Transfers in (out) of level 3 | ' | ' |
Balance as of December 31 | $1 | $1 |
Fair_Value_Disclosures_Gains_o
Fair Value Disclosures - Gains or (Losses) on Level 3 Instruments Included in Income (Detail) (Other Income [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total gains included in income for the period | $4 | $4 |
Change in unrealized gains relating to assets still held at reporting date | 4 | 4 |
Potomac Electric Power Co [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total gains included in income for the period | 4 | 4 |
Change in unrealized gains relating to assets still held at reporting date | $4 | $4 |
Fair_Value_Disclosures_Fair_Va1
Fair Value Disclosures - Fair Value of Financial Liabilities Measured on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | $4,850 | $5,004 |
Transition Bonds, Fair Value | 284 | 341 |
Long-term Project Funding, Fair Value | 12 | 13 |
Total Liabilities, Fair Value | 5,146 | 5,358 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | ' | ' |
Transition Bonds, Fair Value | ' | ' |
Long-term Project Funding, Fair Value | ' | ' |
Total Liabilities, Fair Value | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | 4,289 | 4,517 |
Transition Bonds, Fair Value | 284 | 341 |
Long-term Project Funding, Fair Value | ' | ' |
Total Liabilities, Fair Value | 4,573 | 4,858 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | 561 | 487 |
Transition Bonds, Fair Value | ' | ' |
Long-term Project Funding, Fair Value | 12 | 13 |
Total Liabilities, Fair Value | 573 | 500 |
Potomac Electric Power Co [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | 2,127 | 2,160 |
Total Liabilities, Fair Value | 2,127 | 2,160 |
Potomac Electric Power Co [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | ' | ' |
Total Liabilities, Fair Value | ' | ' |
Potomac Electric Power Co [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | 2,127 | 2,160 |
Total Liabilities, Fair Value | 2,127 | 2,160 |
Potomac Electric Power Co [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | ' | ' |
Total Liabilities, Fair Value | ' | ' |
Delmarva Power & Light Co/De [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | 960 | 990 |
Total Liabilities, Fair Value | 960 | 990 |
Delmarva Power & Light Co/De [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | ' | ' |
Total Liabilities, Fair Value | ' | ' |
Delmarva Power & Light Co/De [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | 850 | 877 |
Total Liabilities, Fair Value | 850 | 877 |
Delmarva Power & Light Co/De [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | 110 | 113 |
Total Liabilities, Fair Value | 110 | 113 |
Atlantic City Electric Co [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | 959 | 1,016 |
Transition Bonds, Fair Value | 285 | 341 |
Total Liabilities, Fair Value | 1,244 | 1,357 |
Atlantic City Electric Co [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | ' | ' |
Transition Bonds, Fair Value | ' | ' |
Total Liabilities, Fair Value | ' | ' |
Atlantic City Electric Co [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | 744 | 884 |
Transition Bonds, Fair Value | 285 | 341 |
Total Liabilities, Fair Value | 1,029 | 1,225 |
Atlantic City Electric Co [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Fair Value | 215 | 132 |
Transition Bonds, Fair Value | ' | ' |
Total Liabilities, Fair Value | $215 | $132 |
Fair_Value_Disclosures_Fair_Va2
Fair Value Disclosures - Fair Value of Financial Liabilities Measured on Recurring Basis (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-Term Debt, Carrying Amount | $4,456 | $4,177 |
Transition Bonds, carrying amount | 255 | 295 |
Potomac Electric Power Co [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-Term Debt, Carrying Amount | 1,899 | 1,701 |
Delmarva Power & Light Co/De [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-Term Debt, Carrying Amount | 967 | 917 |
Atlantic City Electric Co [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-Term Debt, Carrying Amount | 860 | 829 |
Transition Bonds, carrying amount | $255 | $295 |
Recovered_Sheet10
Commitments and Contingencies - Retained Environmental Exposures - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jul. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2010 | Jul. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Substation Injury Claim [Member] | Pepco Energy Services [Member] | Conectiv Energy [Member] | PHI [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Delmarva Power & Light Co/De [Member] | Atlantic City Electric Co [Member] | |||
Facility | Substation Injury Claim [Member] | |||||||||
Commitment and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Certain allegedly unauthorized charges | ' | ' | ' | $7 | ' | ' | ' | ' | ' | ' |
Additional compounded interest | ' | ' | ' | 9 | ' | ' | ' | ' | ' | ' |
Loss contingency liabilities | ' | 30 | ' | ' | ' | ' | 19 | ' | 2 | 9 |
Loss contingency, maximum claim amount | ' | ' | 28.1 | ' | ' | ' | ' | 28.1 | ' | ' |
Minimum period for public comment | ' | '30 days | ' | ' | ' | ' | '30 days | ' | ' | ' |
Environmental remediation expense minimum | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental remediation expense maximum | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Third party maximum and seller floor for environmental remediation costs | ' | ' | ' | ' | $10 | $10 | ' | ' | ' | ' |
Number of facility locations | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Schedule of Accrued Liabilities for Environmental Exposures (Detail) (USD $) | 0 Months Ended | 12 Months Ended |
Dec. 04, 2013 | Dec. 31, 2013 | |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance | ' | $29,000,000 |
Accruals | ' | 6,000,000 |
Payments | -3,000 | -5,000,000 |
Ending balance | ' | 30,000,000 |
Less amounts in Other Current Liabilities | ' | 4,000,000 |
Amounts in Other Deferred Credits | ' | 26,000,000 |
Potomac Electric Power Co [Member] | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance | ' | 17,000,000 |
Accruals | ' | 5,000,000 |
Payments | -3,000 | -1,000,000 |
Ending balance | ' | 21,000,000 |
Less amounts in Other Current Liabilities | ' | 2,000,000 |
Amounts in Other Deferred Credits | ' | 19,000,000 |
Delmarva Power & Light Co/De [Member] | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance | ' | 6,000,000 |
Accruals | ' | 1,000,000 |
Payments | ' | -4,000,000 |
Ending balance | ' | 3,000,000 |
Less amounts in Other Current Liabilities | ' | 2,000,000 |
Amounts in Other Deferred Credits | ' | 1,000,000 |
Transmission and Distribution [Member] | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance | ' | 15,000,000 |
Accruals | ' | 5,000,000 |
Payments | ' | -1,000,000 |
Ending balance | ' | 19,000,000 |
Less amounts in Other Current Liabilities | ' | 3,000,000 |
Amounts in Other Deferred Credits | ' | 16,000,000 |
Transmission and Distribution [Member] | Potomac Electric Power Co [Member] | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance | ' | 14,000,000 |
Accruals | ' | 5,000,000 |
Payments | ' | -1,000,000 |
Ending balance | ' | 18,000,000 |
Less amounts in Other Current Liabilities | ' | 2,000,000 |
Amounts in Other Deferred Credits | ' | 16,000,000 |
Transmission and Distribution [Member] | Delmarva Power & Light Co/De [Member] | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance | ' | 1,000,000 |
Accruals | ' | ' |
Payments | ' | ' |
Ending balance | ' | 1,000,000 |
Less amounts in Other Current Liabilities | ' | 1,000,000 |
Amounts in Other Deferred Credits | ' | ' |
Legacy Generation Regulated [Member] | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance | ' | 7,000,000 |
Accruals | ' | ' |
Payments | ' | -1,000,000 |
Ending balance | ' | 6,000,000 |
Less amounts in Other Current Liabilities | ' | 1,000,000 |
Amounts in Other Deferred Credits | ' | 5,000,000 |
Legacy Generation Regulated [Member] | Potomac Electric Power Co [Member] | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance | ' | 3,000,000 |
Accruals | ' | ' |
Payments | ' | ' |
Ending balance | ' | 3,000,000 |
Less amounts in Other Current Liabilities | ' | ' |
Amounts in Other Deferred Credits | ' | 3,000,000 |
Legacy Generation Regulated [Member] | Delmarva Power & Light Co/De [Member] | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance | ' | 3,000,000 |
Accruals | ' | ' |
Payments | ' | -1,000,000 |
Ending balance | ' | 2,000,000 |
Less amounts in Other Current Liabilities | ' | 1,000,000 |
Amounts in Other Deferred Credits | ' | 1,000,000 |
Legacy Generation Regulated [Member] | Atlantic City Electric Co [Member] | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance | ' | 1,000,000 |
Accruals | ' | ' |
Payments | ' | ' |
Ending balance | ' | 1,000,000 |
Less amounts in Other Current Liabilities | ' | ' |
Amounts in Other Deferred Credits | ' | 1,000,000 |
Legacy Generation Non-Regulated [Member] | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance | ' | 5,000,000 |
Accruals | ' | ' |
Payments | ' | ' |
Ending balance | ' | 5,000,000 |
Less amounts in Other Current Liabilities | ' | ' |
Amounts in Other Deferred Credits | ' | 5,000,000 |
Other [Member] | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance | ' | 2,000,000 |
Accruals | ' | 1,000,000 |
Payments | ' | -3,000,000 |
Ending balance | ' | ' |
Less amounts in Other Current Liabilities | ' | ' |
Amounts in Other Deferred Credits | ' | ' |
Other [Member] | Delmarva Power & Light Co/De [Member] | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' |
Beginning balance | ' | 2,000,000 |
Accruals | ' | 1,000,000 |
Payments | ' | -3,000,000 |
Ending balance | ' | ' |
Less amounts in Other Current Liabilities | ' | ' |
Amounts in Other Deferred Credits | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Environmental Matters - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 04, 2013 | Jun. 30, 2012 | Jan. 31, 2011 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Sep. 13, 2013 | |
gal | gal | ||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
EPA costs to date to clean up site | ' | ' | ' | ' | $6,000,000 | ' | ' |
Estimated costs remaining to remediate the site | ' | ' | ' | ' | 6,000,000 | ' | ' |
Quantity of mineral oil spill | ' | ' | 4,500 | ' | ' | ' | ' |
Quantity of fluid (Gallons) | ' | ' | ' | ' | ' | ' | 11,250 |
Payment of imposed penalty in respect of Environmental violation | 3,000 | ' | ' | ' | 5,000,000 | ' | ' |
Tax payment made | ' | ' | 74,000,000 | ' | ' | ' | ' |
Income tax penalties | ' | ' | 1,000,000 | 0 | ' | ' | ' |
Interest expense assessed relating to disallowed deductions | ' | ' | 28,000,000 | ' | ' | ' | ' |
Maximum tax penalty percentage | ' | ' | ' | 20.00% | ' | ' | ' |
Federal income tax benefits | ' | ' | ' | 192,000,000 | ' | ' | ' |
Percentage of disallowed tax benefits associated with leases | ' | ' | ' | 100.00% | ' | ' | ' |
Potential interest on potential tax liability related to disallowed tax benefits | ' | ' | ' | 50,000,000 | ' | ' | ' |
Deposit of additional taxes and related interest | ' | ' | ' | 242,000,000 | ' | ' | ' |
New tax reporting method, effect on pre-tax earnings | ' | ' | ' | ' | ' | 7,000,000 | ' |
New tax reporting method, effect on after tax earnings | ' | ' | ' | ' | ' | 5,000,000 | ' |
Potomac Electric Power Co [Member] | ' | ' | ' | ' | ' | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Quantity of mineral oil spill | ' | ' | 4,500 | ' | ' | ' | ' |
Civil penalty and Supplement Environmental Projects cost | ' | 1,000,000 | ' | ' | ' | ' | ' |
Quantity of fluid (Gallons) | ' | ' | ' | ' | ' | ' | 11,250 |
Expense incurred on Damage | ' | ' | ' | ' | 1,000,000 | ' | ' |
Payment of imposed penalty in respect of Environmental violation | 3,000 | ' | ' | ' | 1,000,000 | ' | ' |
Non-cash charge (after-tax) | ' | ' | ' | 377,000,000 | ' | ' | ' |
New tax reporting method, effect on pre-tax earnings | ' | ' | ' | ' | ' | 1,000,000 | ' |
Potomac Electric Power Co [Member] | Minimum [Member] | ' | ' | ' | ' | ' | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cost of implementation of a closure plan and cap | ' | ' | ' | ' | 3,000,000 | ' | ' |
Potomac Electric Power Co [Member] | Maximum [Member] | ' | ' | ' | ' | ' | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cost of implementation of a closure plan and cap | ' | ' | ' | ' | 6,000,000 | ' | ' |
PHI [Member] | ' | ' | ' | ' | ' | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Civil penalty and Supplement Environmental Projects cost | ' | 1,000,000 | ' | ' | ' | ' | ' |
Expense incurred on Damage | ' | ' | ' | ' | 1,000,000 | ' | ' |
PHI [Member] | Minimum [Member] | ' | ' | ' | ' | ' | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cost of implementation of a closure plan and cap | ' | ' | ' | ' | 3,000,000 | ' | ' |
PHI [Member] | Maximum [Member] | ' | ' | ' | ' | ' | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cost of implementation of a closure plan and cap | ' | ' | ' | ' | 6,000,000 | ' | ' |
Atlantic City Electric Co [Member] | ' | ' | ' | ' | ' | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
EPA costs to date to clean up site | ' | ' | ' | ' | 6,000,000 | ' | ' |
Estimated costs remaining to remediate the site | ' | ' | ' | ' | 6,000,000 | ' | ' |
Non-cash charge (after-tax) | ' | ' | ' | $377,000,000 | ' | ' | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies - Schedule of Commitments and Obligations (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Commitments and Contingencies [Line Items] | ' |
Energy procurement obligations of Pepco Energy Services | $46 |
Guaranties associated with disposal of Conectiv Energy assets | 13 |
Guaranteed lease residual values | 19 |
Total | 78 |
PHI [Member] | ' |
Commitments and Contingencies [Line Items] | ' |
Energy procurement obligations of Pepco Energy Services | 46 |
Guaranties associated with disposal of Conectiv Energy assets | 13 |
Guaranteed lease residual values | 3 |
Total | 62 |
Potomac Electric Power Co [Member] | ' |
Commitments and Contingencies [Line Items] | ' |
Energy procurement obligations of Pepco Energy Services | ' |
Guaranties associated with disposal of Conectiv Energy assets | ' |
Guaranteed lease residual values | 5 |
Total | 5 |
Delmarva Power & Light Co/De [Member] | ' |
Commitments and Contingencies [Line Items] | ' |
Energy procurement obligations of Pepco Energy Services | ' |
Guaranties associated with disposal of Conectiv Energy assets | ' |
Guaranteed lease residual values | 7 |
Total | 7 |
Atlantic City Electric Co [Member] | ' |
Commitments and Contingencies [Line Items] | ' |
Energy procurement obligations of Pepco Energy Services | ' |
Guaranties associated with disposal of Conectiv Energy assets | ' |
Guaranteed lease residual values | 4 |
Total | $4 |
Commitments_and_Contingencies_4
Commitments and Contingencies - Schedule of Commitments and Obligations (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Commitments and Contingencies [Line Items] | ' |
Derivative portfolio guaranty | $13 |
Obligations under guaranty | 55 |
Leased Equipment and Fleet Vehicles [Member] | ' |
Commitments and Contingencies [Line Items] | ' |
Fair value of leased equipment and vehicles | 0 |
Minimum [Member] | ' |
Commitments and Contingencies [Line Items] | ' |
Lease term range | '1 to 4 years |
Maximum [Member] | ' |
Commitments and Contingencies [Line Items] | ' |
Lease term range | '3 to 8 years |
PHI [Member] | ' |
Commitments and Contingencies [Line Items] | ' |
Obligations under guaranty | 15 |
Potomac Electric Power Co [Member] | ' |
Commitments and Contingencies [Line Items] | ' |
Obligations under guaranty | 10 |
Delmarva Power & Light Co/De [Member] | ' |
Commitments and Contingencies [Line Items] | ' |
Obligations under guaranty | 17 |
Atlantic City Electric Co [Member] | ' |
Commitments and Contingencies [Line Items] | ' |
Obligations under guaranty | $13 |
Commitments_and_Contingencies_5
Commitments and Contingencies - Tax Legislation, Guarantees, Indemnifications, and Performance Contracts - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 23, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Subsequent Event [Member] | Energy Savings or Combined Heat and Power Performance [Member] | Pepco Energy Services [Member] | Pepco Energy Services [Member] | Pepco Energy Services [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | Potomac Electric Power Co [Member] | ||||
Completed Performance Contracts Associated With Savings Guarantees [Member] | Uncompleted Performance Contracts Associated With Savings Guarantees [Member] | Energy Savings or Combined Heat and Power Performance [Member] | |||||||||||||||
Commitment and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of guarantees completed projects | ' | ' | ' | ' | ' | $252 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract life, maximum remaining term | ' | ' | ' | ' | ' | '12 years | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of guarantees on projects under construction | ' | ' | ' | ' | ' | ' | 187 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum term of project under construction | ' | ' | ' | ' | ' | ' | '23 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of guarantees under construction projects | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued liability on contracts | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared on common stock, per share | ' | ' | ' | $27 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared, payable date | ' | ' | ' | 31-Mar-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends payable, date of record | ' | ' | ' | 10-Mar-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual obligations due in, 2014 | 278 | ' | ' | ' | ' | ' | ' | ' | 64 | ' | ' | 214 | ' | ' | ' | ' | ' |
Contractual obligations due in, 2015 to 2016 | 562 | ' | ' | ' | ' | ' | ' | ' | 131 | ' | ' | 431 | ' | ' | ' | ' | ' |
Contractual obligations due in, 2017 to 2018 | 486 | ' | ' | ' | ' | ' | ' | ' | 131 | ' | ' | 355 | ' | ' | ' | ' | ' |
Contractual obligations due in, 2019 and thereafter | 1,386 | ' | ' | ' | ' | ' | ' | ' | 300 | ' | ' | 1,086 | ' | ' | ' | ' | ' |
Rental expense for operating leases | 54 | 52 | 46 | ' | ' | ' | ' | ' | 13 | 12 | 11 | 12 | 11 | 10 | 7 | 6 | 4 |
Future minimum operating lease payments, 2014 | 44 | ' | ' | ' | ' | ' | ' | ' | 13 | ' | ' | 5 | ' | ' | 6 | ' | ' |
Future minimum operating lease payments, 2015 | 42 | ' | ' | ' | ' | ' | ' | ' | 13 | ' | ' | 5 | ' | ' | 6 | ' | ' |
Future minimum operating lease payments, 2016 | 39 | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' | 5 | ' | ' | 6 | ' | ' |
Future minimum operating lease payments, 2017 | 36 | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | 4 | ' | ' | 5 | ' | ' |
Future minimum operating lease payments, 2018 | 37 | ' | ' | ' | ' | ' | ' | ' | 14 | ' | ' | 4 | ' | ' | 4 | ' | ' |
Future minimum operating lease payments, thereafter | 342 | ' | ' | ' | ' | ' | ' | ' | 111 | ' | ' | 29 | ' | ' | 21 | ' | ' |
Ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | 11.90% | ' | ' | ' | ' | ' | ' | ' | ' |
Present value of future minimum lease payments | ' | ' | ' | ' | ' | ' | ' | ' | $84 | ' | ' | ' | ' | ' | ' | ' | ' |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||||||||||||||
In Millions, unless otherwise specified | Oct. 18, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Delmarva Power & Light Co/De [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | Atlantic City Electric Co [Member] | |
Fuel Cell Facility [Member] | Fuel Cell Facility [Member] | Fuel Cell Facility [Member] | Land-Based Wind PPA [Member] | Solar PPA [Member] | Solar PPA [Member] | Solar PPA [Member] | Wind PPA [Member] | Wind PPA [Member] | Wind PPA [Member] | Wind PPA [Member] | Wind PPA [Member] | Wind PPA [Member] | Agreement | Non-Utility Generators [Member] | Non-Utility Generators [Member] | Non-Utility Generators [Member] | |
MW | MW | MW | MW | MW | Wind Facility One [Member] | Wind Facility Two [Member] | Wind Facility Three [Member] | MW | |||||||||
Agreement | Agreement | MW | MW | MW | |||||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Megawatts received from power purchase agreements (PPAs) | ' | ' | ' | 128 | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 459 | ' | ' |
Number of purchase power agreements | ' | ' | ' | 3 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' |
Energy purchase maximum to be purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 | 40 | 38 | ' | ' | ' | ' |
Purchased energy | ' | ' | ' | ' | ' | ' | ' | $30 | $27 | $18 | ' | ' | ' | ' | $206 | $201 | $206 |
Term of agreement, years | ' | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Obligated purchase amount of energy produced at the facility | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Solar energy purchases | ' | ' | ' | ' | 3 | 2 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Power of fuel cell facility | 30 | 15 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of agreement, years | '21 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount billed to distribution customers | ' | 23 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net power purchases with non-utility generators | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $221 | $206 | $218 |
Equity ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Schedule of Components of Other Comprehensive Loss (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance, beginning of period | ($48) | ($63) | ($106) |
Income Tax expense (benefit) | 6 | -6 | -4 |
Balance, end of period | -34 | -48 | -63 |
Pension and Other Postretirement Benefit [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance, beginning of period | -32 | -24 | -17 |
Amount of amortization of net prior service cost and actuarial loss reclassified to Other operation and maintenance expense | 5 | 5 | 3 |
Amount of net prior service cost and actuarial gain (loss) arising during the year | 8 | -19 | -14 |
Income Tax expense (benefit) | 6 | -6 | -4 |
Balance, end of period | -25 | -32 | -24 |
Treasury Lock [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance, beginning of period | -10 | -10 | -11 |
Income Tax expense (benefit) | ' | ' | ' |
Balance, end of period | -9 | -10 | -10 |
Treasury Lock [Member] | Interest Expense [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Amount of net pre-tax loss reclassified to (from) expense | 1 | ' | 1 |
Commodity Derivatives [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Balance, beginning of period | -6 | -29 | -78 |
Amount of net pre-tax loss reclassified to (Loss) income from discontinued operations before income tax | 10 | 39 | 81 |
Income tax benefit | 4 | 16 | 32 |
Balance, end of period | ' | ($6) | ($29) |
Quarterly_Financial_Informatio2
Quarterly Financial Information - Schedule of Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Operating Revenue | $1,091 | $1,344 | $1,051 | $1,180 | $1,056 | $1,389 | $1,057 | $1,123 | $4,666 | $4,625 | $4,964 |
Total Operating Expenses | 936 | 1,109 | 906 | 1,047 | 954 | 1,188 | 932 | 1,010 | 3,998 | 4,084 | 4,411 |
Operating Income | 155 | 235 | 145 | 133 | 102 | 201 | 125 | 113 | 668 | 541 | 553 |
Other Expenses | -58 | -60 | -62 | -59 | -57 | -57 | -52 | -54 | -239 | -220 | -217 |
Income (Loss) Before Income Tax Expense (Benefit) | 97 | 175 | 83 | 74 | 45 | 144 | 73 | 59 | 429 | 321 | 336 |
Income Tax (Benefit) Expense | 39 | 65 | 30 | 185 | 11 | 57 | 26 | 9 | 319 | 103 | 114 |
Net (Loss) Income from continuing operations | 58 | 110 | 53 | -111 | 34 | 87 | 47 | 50 | 110 | 218 | 222 |
(Loss) Income from Discontinued Operations, net of taxes | ' | 8 | -11 | -319 | 9 | 25 | 15 | 18 | -322 | 67 | 35 |
Net (loss) income | 58 | 118 | 42 | -430 | 43 | 112 | 62 | 68 | -212 | 285 | 257 |
Basic and Diluted Earnings Per Share of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Loss) Earnings Per Share of Common Stock from Continuing Operations | $0.23 | $0.44 | $0.21 | ($0.47) | ' | ' | ' | ' | $0.45 | ' | ' |
(Loss) Earnings Per Share of Common Stock from Discontinued Operations | ' | $0.04 | ($0.04) | ($1.35) | ' | ' | ' | ' | ($1.31) | ' | ' |
(Loss) Earnings Per Share of Common Stock | $0.23 | $0.48 | $0.17 | ($1.82) | ' | ' | ' | ' | ($0.86) | ' | ' |
Cash Dividends Per Share of Common Stock | $0.27 | $0.27 | $0.27 | $0.27 | $0.27 | $0.27 | $0.27 | $0.27 | $1.08 | $1.08 | $1.08 |
Basic Earnings Per Share of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Per Share of Common Stock from Continuing Operations | ' | ' | ' | ' | $0.15 | $0.38 | $0.20 | $0.22 | $0.45 | $0.95 | $0.98 |
Earnings Per Share of Common Stock from Discontinued Operations | ' | ' | ' | ' | $0.03 | $0.11 | $0.07 | $0.08 | ($1.31) | $0.30 | $0.16 |
Basic Earnings Per Share of Common Stock | ' | ' | ' | ' | $0.18 | $0.49 | $0.27 | $0.30 | ($0.86) | $1.25 | $1.14 |
Diluted Earnings Per Share of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings Per Share of Common Stock from Continuing Operations | ' | ' | ' | ' | $0.15 | $0.38 | $0.20 | $0.22 | $0.45 | $0.95 | $0.98 |
Earnings Per Share of Common Stock from Discontinued Operations | ' | ' | ' | ' | $0.03 | $0.11 | $0.07 | $0.08 | ($1.31) | $0.29 | $0.16 |
Diluted Earnings Per Share of Common Stock | ' | ' | ' | ' | $0.18 | $0.49 | $0.27 | $0.30 | ($0.86) | $1.24 | $1.14 |
Cash Dividends Per Share of Common Stock | $0.27 | $0.27 | $0.27 | $0.27 | $0.27 | $0.27 | $0.27 | $0.27 | $1.08 | $1.08 | $1.08 |
Potomac Electric Power Co [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Operating Expenses | 410 | 476 | 389 | 430 | 390 | 475 | 401 | 425 | 1,705 | 1,691 | 1,866 |
Operating Income | 65 | 129 | 80 | 47 | 55 | 107 | 55 | 40 | 321 | 257 | 212 |
Other Expenses | -24 | -23 | -23 | -22 | -20 | -22 | -20 | -21 | -92 | -83 | -77 |
Income (Loss) Before Income Tax Expense (Benefit) | 41 | 106 | 57 | 25 | 35 | 85 | 35 | 19 | 229 | 174 | 135 |
Income Tax (Benefit) Expense | 17 | 40 | 20 | 2 | 10 | 35 | 8 | ' | 79 | 48 | 36 |
Net (loss) income | 24 | 66 | 37 | 23 | 25 | 50 | 27 | 24 | 150 | 126 | 99 |
Diluted Earnings Per Share of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | 475 | 605 | 469 | 477 | 445 | 582 | 456 | 465 | 2,026 | 1,948 | 2,078 |
Atlantic City Electric Co [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Operating Expenses | 229 | 341 | 242 | 254 | 364 | 246 | 230 | 239 | 1,066 | 1,079 | 1,129 |
Operating Income | 29 | 55 | 29 | 23 | 49 | 13 | 40 | 17 | 136 | 119 | 139 |
Other Expenses | -15 | -17 | -18 | -17 | -16 | -17 | -17 | -16 | -67 | -66 | -67 |
Income (Loss) Before Income Tax Expense (Benefit) | 14 | 38 | 11 | 6 | 33 | -4 | 23 | 1 | 69 | 53 | 72 |
Income Tax (Benefit) Expense | 5 | 13 | 4 | -3 | 13 | -3 | 9 | -1 | 19 | 18 | 33 |
Net (loss) income | 9 | 25 | 7 | 9 | 20 | -1 | 14 | 2 | 50 | 35 | 39 |
Diluted Earnings Per Share of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | 258 | 396 | 271 | 277 | 413 | 259 | 270 | 256 | 1,202 | 1,198 | 1,268 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Operating Expenses | 258 | 249 | 235 | 317 | 263 | 297 | 229 | 290 | 1,059 | 1,079 | 1,155 |
Operating Income | 54 | 47 | 31 | 53 | 38 | 43 | 30 | 43 | 185 | 154 | 149 |
Other Expenses | -9 | -10 | -10 | -11 | -11 | -10 | -8 | -8 | -40 | -37 | -36 |
Income (Loss) Before Income Tax Expense (Benefit) | 45 | 37 | 21 | 42 | 27 | 33 | 22 | 35 | 145 | 117 | 113 |
Income Tax (Benefit) Expense | 17 | 14 | 9 | 16 | 10 | 11 | 9 | 14 | 56 | 44 | 42 |
Net (loss) income | 28 | 23 | 12 | 26 | 17 | 22 | 13 | 21 | 89 | 73 | 71 |
Diluted Earnings Per Share of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | $312 | $296 | $266 | $370 | $301 | $340 | $259 | $333 | $1,244 | $1,233 | $1,304 |
Quarterly_Financial_Informatio3
Quarterly Financial Information - Schedule of Quarterly Financial Information (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intra company revenue | $1,091 | $1,344 | $1,051 | $1,180 | $1,056 | $1,389 | $1,057 | $1,123 | $4,666 | $4,625 | $4,964 |
Change in estimates and interest related to uncertain and effectively settled tax positions | ' | ' | ' | 56 | ' | ' | ' | ' | 56 | -8 | -5 |
Establishment of valuation allowances related to deferred tax assets | ' | ' | ' | 101 | ' | ' | ' | ' | 101 | ' | ' |
Potomac Electric Power Co [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in estimates and interest related to uncertain and effectively settled tax positions | ' | ' | ' | 5 | ' | ' | ' | ' | -3 | -11 | -9 |
Establishment of valuation allowances related to deferred tax assets | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' |
Tax benefits related to uncertain tax position IRS | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' |
Pepco Energy Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment losses, pre-tax | 4 | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' |
Impairment losses, after-tax | 3 | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' |
Pepco Energy Services [Member] | Intra Segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intra company revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9 | ' |
Discontinued_Operations_Loss_I
Discontinued Operations - (Loss) Income from Discontinued Operations, Net of Income Taxes (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Loss) Income from Discontinued Operations, net of Income Taxes | $8 | ($11) | ($319) | $9 | $25 | $15 | $18 | ($322) | $67 | $35 |
Cross-Border Energy Lease Investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Loss) Income from Discontinued Operations, net of Income Taxes | ' | ' | ' | ' | ' | ' | ' | -327 | 41 | 36 |
Retail Electric and Natural Gas Supply Businesses of Pepco Energy Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Loss) Income from Discontinued Operations, net of Income Taxes | ' | ' | ' | ' | ' | ' | ' | 5 | 26 | 2 |
Conectiv Energy [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Loss) Income from Discontinued Operations, net of Income Taxes | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | ($3) |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease investments | ' | ' | ' | $1,237,000,000 | ' | ' | ' | ' | $1,237,000,000 | ' |
Income tax charges | ' | ' | ' | ' | ' | ' | ' | -1,000,000 | 30,000,000 | 36,000,000 |
Inventory assets | ' | ' | ' | 153,000,000 | ' | ' | ' | 148,000,000 | 153,000,000 | ' |
Other current assets | ' | ' | ' | 81,000,000 | ' | ' | ' | 53,000,000 | 81,000,000 | ' |
Other current liabilities | ' | ' | ' | 272,000,000 | ' | ' | ' | 276,000,000 | 272,000,000 | ' |
(Loss) Income from Discontinued Operations, net of Income Taxes | 8,000,000 | -11,000,000 | -319,000,000 | 9,000,000 | 25,000,000 | 15,000,000 | 18,000,000 | -322,000,000 | 67,000,000 | 35,000,000 |
Pepco Energy Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash collateral posted | ' | ' | ' | 25,000,000 | ' | ' | ' | 3,000,000 | 25,000,000 | ' |
Conectiv Energy [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Loss) Income from Discontinued Operations, net of Income Taxes | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -3,000,000 |
Other comprehensive income from discontinued operations | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Discontinued Operations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net accounts receivable | ' | ' | ' | 33,000,000 | ' | ' | ' | 0 | 33,000,000 | ' |
Inventory assets | ' | ' | ' | 3,000,000 | ' | ' | ' | 1,000,000 | 3,000,000 | ' |
Gross derivative assets | ' | ' | ' | 1,000,000 | ' | ' | ' | 0 | 1,000,000 | ' |
Other current assets | ' | ' | ' | 1,000,000 | ' | ' | ' | 0 | 1,000,000 | ' |
Accrued liabilities | ' | ' | ' | 20,000,000 | ' | ' | ' | 1,000,000 | 20,000,000 | ' |
Gross derivative liabilities | ' | ' | ' | 21,000,000 | ' | ' | ' | 0 | 21,000,000 | ' |
Other current liabilities | ' | ' | ' | 1,000,000 | ' | ' | ' | 0 | 1,000,000 | ' |
Cash collateral pledged to counterparties with the right to reclaim | ' | ' | ' | 18,000,000 | ' | ' | ' | ' | 18,000,000 | ' |
Discontinued Operations [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross derivative liabilities | ' | ' | ' | 11,000,000 | ' | ' | ' | ' | 11,000,000 | ' |
Discontinued Operations [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross derivative liabilities | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | 10,000,000 | ' |
Maximum [Member] | Pepco Energy Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit posted | ' | ' | ' | 1,000,000 | ' | ' | ' | 1,000,000 | 1,000,000 | ' |
Discontinued Operations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
After-tax non-cash charges | ' | 6,000,000 | 323,000,000 | ' | ' | ' | ' | ' | ' | ' |
Other non-cash charge | ' | ' | ' | ' | ' | ' | ' | 373,000,000 | ' | 7,000,000 |
After-tax effect of revised lease rerun | ' | ' | ' | ' | ' | ' | ' | 313,000,000 | ' | ' |
Maximum percentage of penalty on the amount of additional taxes due | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' |
Income tax charges | ' | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | 22,000,000 |
Federal Income tax provision | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | 14,000,000 |
Derivatives | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Amount of net pre-tax loss arising during the period included in Accumulated Other Comprehensive Loss | ' | ' | ' | ' | ' | ' | ' | ' | -10,000,000 | ' |
Amount of net tax loss arising during the period included in Accumulated Other Comprehensive Loss | ' | ' | ' | ' | ' | ' | ' | ' | -6,000,000 | ' |
Pre-tax loss reclassified into Income from Discontinued operations, Before Taxes | ' | ' | ' | ' | ' | ' | ' | ' | -10,000,000 | ' |
Net of tax loss reclassified into Income from Discontinued operations, Net of Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | -6,000,000 | ' |
Outstanding commodity forward contracts or derivative positions | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Discontinued Operations [Member] | Interest Expense [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
After-tax non-cash charge | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | ' | ' |
Discontinued Operations [Member] | PHI [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease investments | ' | ' | ' | 1,237,000,000 | ' | ' | ' | 0 | 1,237,000,000 | ' |
Number of investment in lease portfolio | ' | ' | ' | ' | ' | ' | ' | 0 | 6 | ' |
Net pre tax gain / loss | ' | ' | ' | ' | ' | ' | ' | ' | 39,000,000 | 39,000,000 |
Discontinued Operations [Member] | Pepco Energy Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (losses) gains associated with disposition | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' |
(Loss) Income from Discontinued Operations, net of Income Taxes | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | 26,000,000 | 2,000,000 |
Discontinued Operations [Member] | Payment Paid From Early Termination [Member] | PHI [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate of net cash proceeds (payments) of lease investments | ' | ' | ' | ' | ' | ' | ' | ' | 520,000,000 | 423,000,000 |
Discontinued Operations [Member] | Proceeds for Corp Repayment [Member] | PHI [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate of net cash proceeds (payments) of lease investments | ' | ' | ' | ' | ' | ' | ' | ' | 202,000,000 | 161,000,000 |
Discontinued Operations [Member] | PHI [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net pre tax gain / loss | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' |
Loss on early termination of finance leases held in trust, after tax | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' |
Early termination agreement of leases | 'Six remaining lease investments | 'Six remaining lease investments | ' | ' | ' | ' | ' | ' | ' | ' |
After-tax non-cash charge | ' | ' | ' | ' | ' | ' | ' | 70,000,000 | ' | ' |
Discontinued Operations [Member] | PHI [Member] | Proceeds From Early Termination [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate of net cash proceeds (payments) of lease investments | ' | ' | ' | ' | ' | ' | ' | 873,000,000 | ' | ' |
Discontinued Operations [Member] | PHI [Member] | Payment Paid From Early Termination [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate of net cash proceeds (payments) of lease investments | ' | ' | ' | ' | ' | ' | ' | 2,000,000,000 | ' | ' |
Discontinued Operations [Member] | Power Delivery [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest benefit | ' | ' | ' | ' | ' | ' | ' | 12,000,000 | ' | ' |
Discontinued Operations [Member] | Other Non-Regulated [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense on uncertain tax positions | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | ' | ' |
Discontinued Operations [Member] | Corporate and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense on uncertain tax positions | ' | ' | ' | ' | ' | ' | ' | 66,000,000 | ' | ' |
Other Discontinued Operations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (losses) gains associated with disposition | ' | ' | ' | ' | ' | ' | ' | ' | $9,000,000 | $3,000,000 |
Discontinued_Operations_Loss_I1
Discontinued Operations - (Loss) Income Recognized from Cross-Border Energy Lease Investments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Loss) income from discontinued operations, net of income taxes | $8 | ($11) | ($319) | $9 | $25 | $15 | $18 | ($322) | $67 | $35 |
Cross-Border Energy Lease Investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenue from PHI's cross-border energy lease investments | ' | ' | ' | ' | ' | ' | ' | 7 | 50 | 55 |
Non-cash charge to reduce carrying value of PHI's cross-border energy lease investments | ' | ' | ' | ' | ' | ' | ' | -373 | ' | -7 |
Total operating revenue | ' | ' | ' | ' | ' | ' | ' | -366 | 50 | 48 |
(Loss) income from operations of discontinued operations, net of income taxes | ' | ' | ' | ' | ' | ' | ' | -325 | 32 | 33 |
Net (losses) gains associated with the early termination of the cross-border energy lease investments, net of income taxes | ' | ' | ' | ' | ' | ' | ' | -2 | 9 | 3 |
(Loss) income from discontinued operations, net of income taxes | ' | ' | ' | ' | ' | ' | ' | ($327) | $41 | $36 |
Discontinued_Operations_Loss_I2
Discontinued Operations - (Loss) Income Recognized from Cross-Border Energy Lease Investments (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Discontinued Operations And Disposal Groups [Abstract] | ' | ' | ' |
Income tax expense, income from operations of discontinued operations | ($44) | $5 | ($2) |
Income tax expense, Net gains associated with the accelerated disposition of retail electric and natural gas contracts | ($1) | $30 | $36 |
Discontinued_Operations_CrossB
Discontinued Operations - Cross-Border Energy Lease Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Discontinued Operations [Line Items] | ' | ' |
Assets held for disposition | ' | $1,237 |
Cross-Border Energy Lease Investments [Member] | ' | ' |
Schedule of Discontinued Operations [Line Items] | ' | ' |
Scheduled lease payments to PHI, net of non-recourse debt | ' | 1,852 |
Less: Unearned and deferred income | ' | -615 |
Assets held for disposition | ' | 1,237 |
Liabilities associated with assets held for disposition | ' | $1 |
Discontinued_Operations_Net_In
Discontinued Operations - Net Investment in Leases by Published Credit Ratings (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Discontinued Operations [Line Items] | ' | ' |
Rated Entities | ' | $1,237 |
AA/Aa and Above [Member] | ' | ' |
Schedule of Discontinued Operations [Line Items] | ' | ' |
Rated Entities | ' | 766 |
A [Member] | ' | ' |
Schedule of Discontinued Operations [Line Items] | ' | ' |
Rated Entities | ' | $471 |
Discontinued_Operations_Operat
Discontinued Operations - Operating Results for Retail Electric and Natural Gas Supply Businesses (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income From Discontinued Operations, Net of Income Taxes | $8 | ($11) | ($319) | $9 | $25 | $15 | $18 | ($322) | $67 | $35 |
Discontinued Operations [Member] | Pepco Energy Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income Statement by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenue | ' | ' | ' | ' | ' | ' | ' | 84 | 415 | 954 |
Income from operations of discontinued operations | ' | ' | ' | ' | ' | ' | ' | 4 | 26 | 2 |
Net Gains Associated With Accelerated Disposition Of Retail Electric And Natural Gas Contracts, Net of Income Tax | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Income From Discontinued Operations, Net of Income Taxes | ' | ' | ' | ' | ' | ' | ' | $5 | $26 | $2 |
Discontinued_Operations_Operat1
Discontinued Operations - Operating Results for Retail Electric and Natural Gas Supply Businesses (Parenthetical) (Detail) (Pepco Energy Services [Member], Discontinued Operations [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pepco Energy Services [Member] | Discontinued Operations [Member] | ' | ' | ' |
Income Statement by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Discontinued operations, income tax expense | $3 | $18 | $1 |
Discontinued_Operations_Fair_V
Discontinued Operations - Fair Value of Derivative Instruments by Balance Sheet Location (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Liabilities associated with assets held for disposition (current liabilities) | ' | ($4) |
Liabilities associated with assets held for disposition (non-current liabilities) | ' | -11 |
Derivatives Designated as Hedging Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Assets held for disposition (current assets) | ' | ' |
Total Derivative assets | ' | ' |
Liabilities associated with assets held for disposition (current liabilities) | ' | ' |
Liabilities associated with assets held for disposition (non-current liabilities) | ' | ' |
Total Derivative liabilities | ' | ' |
Net Derivative (liability) asset | ' | ' |
Gross Derivative Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Assets held for disposition (current assets) | 1 | ' |
Total Derivative assets | 1 | 8 |
Liabilities associated with assets held for disposition (current liabilities) | ' | -4 |
Liabilities associated with assets held for disposition (non-current liabilities) | ' | -11 |
Total Derivative liabilities | ' | -15 |
Net Derivative (liability) asset | ' | -7 |
Net Derivative Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Assets held for disposition (current assets) | ' | ' |
Total Derivative assets | ' | 8 |
Liabilities associated with assets held for disposition (current liabilities) | ' | -4 |
Liabilities associated with assets held for disposition (non-current liabilities) | ' | -11 |
Total Derivative liabilities | ' | -15 |
Net Derivative (liability) asset | ' | -7 |
Discontinued Operations [Member] | Derivatives Designated as Hedging Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Assets held for disposition (current assets) | ' | ' |
Total Derivative assets | ' | ' |
Liabilities associated with assets held for disposition (current liabilities) | ' | -10 |
Liabilities associated with assets held for disposition (non-current liabilities) | ' | -1 |
Total Derivative liabilities | ' | -11 |
Net Derivative (liability) asset | ' | -11 |
Discontinued Operations [Member] | Other Derivative Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Assets held for disposition (current assets) | ' | 1 |
Total Derivative assets | ' | 1 |
Liabilities associated with assets held for disposition (current liabilities) | ' | -9 |
Liabilities associated with assets held for disposition (non-current liabilities) | ' | -1 |
Total Derivative liabilities | ' | -10 |
Net Derivative (liability) asset | ' | -9 |
Discontinued Operations [Member] | Gross Derivative Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Assets held for disposition (current assets) | ' | 1 |
Total Derivative assets | ' | 1 |
Liabilities associated with assets held for disposition (current liabilities) | ' | -19 |
Liabilities associated with assets held for disposition (non-current liabilities) | ' | -2 |
Total Derivative liabilities | ' | -21 |
Net Derivative (liability) asset | ' | -20 |
Discontinued Operations [Member] | Effects of Cash Collateral and Netting [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Assets held for disposition (current assets) | ' | ' |
Total Derivative assets | ' | ' |
Liabilities associated with assets held for disposition (current liabilities) | ' | 16 |
Liabilities associated with assets held for disposition (non-current liabilities) | ' | 2 |
Total Derivative liabilities | ' | 18 |
Net Derivative (liability) asset | ' | 18 |
Discontinued Operations [Member] | Net Derivative Instruments [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Assets held for disposition (current assets) | ' | 1 |
Total Derivative assets | ' | 1 |
Liabilities associated with assets held for disposition (current liabilities) | ' | -3 |
Liabilities associated with assets held for disposition (non-current liabilities) | ' | ' |
Total Derivative liabilities | ' | -3 |
Net Derivative (liability) asset | ' | ($2) |
Discontinued_Operations_Schedu
Discontinued Operations - Schedule of Derivative Gain (Loss) Amounts Recognized in Income (Detail) (Discontinued Operations [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Discontinued Operations [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Reclassification of mark-to-market to realized on settlement of contracts | $10 | $27 | ' |
Unrealized mark-to-market loss | ' | -3 | -30 |
Total net gain (loss) | $10 | $24 | ($30) |
Discontinued_Operations_Net_Ou
Discontinued Operations - Net Outstanding Commodity Forward Contracts that Did Not Qualify for Hedge Accounting (Detail) (Discontinued Operations [Member]) | 12 Months Ended |
Dec. 31, 2012 | |
MWh | |
Financial Transmission Rights (MWh) [Member] | ' |
Derivative [Line Items] | ' |
Quantity | 181,008 |
Net Position | 'Long |
Electricity (MWh) [Member] | ' |
Derivative [Line Items] | ' |
Quantity | 261,240 |
Net Position | 'Long |
Natural Gas (One Million British Thermal Units (MMBtu)) [Member] | ' |
Derivative [Line Items] | ' |
Quantity | 2,867,500 |
Net Position | 'Long |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Atlantic City Electric Co [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Capital contribution from Parent | $75 | ' | $60 |
Atlantic City Electric Co [Member] | Conectiv Energy [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Capital contribution from Parent | ' | ' | 60 |
Atlantic City Electric Co [Member] | PHI Service Company [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Costs directly charged or allocated | 115 | 117 | 102 |
Potomac Electric Power Co [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Capital contribution from Parent | 175 | 50 | ' |
Potomac Electric Power Co [Member] | PHI Service Company [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Costs directly charged or allocated | 209 | 211 | 185 |
Potomac Electric Power Co [Member] | Pepco Energy Services [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Maintenance services | 20 | 16 | 20 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Capital contribution from Parent | ' | 60 | ' |
Delmarva Power & Light Co/De [Member] | PHI Service Company [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Costs directly charged or allocated | $154 | $153 | $133 |
Related_Party_Transactions_Sch
Related Party Transactions - Schedule of Related Party Transactions Included in Balance Sheet (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Potomac Electric Power Co [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
(Payable to) Receivable From Related Party, Total | ($32) | ($41) |
Potomac Electric Power Co [Member] | PHI Service Company [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
(Payable to) Receivable From Related Party, Total | -25 | -22 |
Potomac Electric Power Co [Member] | Pepco Energy Services [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
(Payable to) Receivable From Related Party, Total | -7 | -18 |
Potomac Electric Power Co [Member] | Other [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
(Payable to) Receivable From Related Party, Total | ' | -1 |
Delmarva Power & Light Co/De [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
(Payable to) Receivable From Related Party, Total | -22 | -20 |
Delmarva Power & Light Co/De [Member] | PHI Service Company [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
(Payable to) Receivable From Related Party, Total | -22 | -19 |
Delmarva Power & Light Co/De [Member] | Other [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
(Payable to) Receivable From Related Party, Total | ' | -1 |
Atlantic City Electric Co [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
(Payable to) Receivable From Related Party, Total | -15 | -14 |
Atlantic City Electric Co [Member] | PHI Service Company [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
(Payable to) Receivable From Related Party, Total | -15 | -13 |
Atlantic City Electric Co [Member] | Other [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
(Payable to) Receivable From Related Party, Total | ' | ($1) |
Related_Party_Transactions_Sch1
Related Party Transactions - Schedule of Related Party Transactions Included in Income Statement (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Amounts of transaction | ' | ' | $1 |
Intercompany lease transactions | 4 | 4 | 5 |
Atlantic City Electric Co [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Amounts of transaction | -4 | -4 | -4 |
Intercompany use revenue | $3 | $3 | $2 |
Schedule_I_Condensed_Financial
Schedule I - Condensed Financial Information of Parent Company (Statements of (Loss) Income) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Revenue | $1,091 | $1,344 | $1,051 | $1,180 | $1,056 | $1,389 | $1,057 | $1,123 | $4,666 | $4,625 | $4,964 |
Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other operation and maintenance | ' | ' | ' | ' | ' | ' | ' | ' | -851 | -898 | -889 |
Total operating expenses | -936 | -1,109 | -906 | -1,047 | -954 | -1,188 | -932 | -1,010 | -3,998 | -4,084 | -4,411 |
Operating (Loss) Income | 155 | 235 | 145 | 133 | 102 | 201 | 125 | 113 | 668 | 541 | 553 |
Other Income (Expenses) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -273 | -256 | -242 |
Income from equity investments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 1 | -3 |
Impairment Losses | ' | ' | ' | ' | ' | ' | ' | ' | -4 | -12 | ' |
Total Other Expenses | -58 | -60 | -62 | -59 | -57 | -57 | -52 | -54 | -239 | -220 | -217 |
Income from Continuing Operations Before Income Tax | 97 | 175 | 83 | 74 | 45 | 144 | 73 | 59 | 429 | 321 | 336 |
Income Tax Expense (Benefit) Related to Continuing Operations | 39 | 65 | 30 | 185 | 11 | 57 | 26 | 9 | 319 | 103 | 114 |
Net Income from Continuing Operations | 58 | 110 | 53 | -111 | 34 | 87 | 47 | 50 | 110 | 218 | 222 |
(Loss)Income from Discontinued Operations, net of Income Taxes | ' | 8 | -11 | -319 | 9 | 25 | 15 | 18 | -322 | 67 | 35 |
Net (Loss) Income | 58 | 118 | 42 | -430 | 43 | 112 | 62 | 68 | -212 | 285 | 257 |
Comprehensive (Loss) Income | ' | ' | ' | ' | ' | ' | ' | ' | -198 | 300 | 300 |
Earnings Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share of common stock from continuing operations | ' | ' | ' | ' | $0.15 | $0.38 | $0.20 | $0.22 | $0.45 | $0.95 | $0.98 |
Basic (loss) earnings per share of common stock from Discontinued Operations | ' | ' | ' | ' | $0.03 | $0.11 | $0.07 | $0.08 | ($1.31) | $0.30 | $0.16 |
Basic (loss) earnings per share of common stock | ' | ' | ' | ' | $0.18 | $0.49 | $0.27 | $0.30 | ($0.86) | $1.25 | $1.14 |
Diluted earnings per share of common stock from continuing operations | ' | ' | ' | ' | $0.15 | $0.38 | $0.20 | $0.22 | $0.45 | $0.95 | $0.98 |
Diluted (loss) earnings per share of common stock from Discontinued Operations | ' | ' | ' | ' | $0.03 | $0.11 | $0.07 | $0.08 | ($1.31) | $0.29 | $0.16 |
Diluted (loss) earnings per share of common stock | ' | ' | ' | ' | $0.18 | $0.49 | $0.27 | $0.30 | ($0.86) | $1.24 | $1.14 |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other operation and maintenance | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 |
Operating (Loss) Income | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -1 | -1 |
Other Income (Expenses) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -42 | -33 | -29 |
Income from equity investments | ' | ' | ' | ' | ' | ' | ' | ' | 204 | 237 | 243 |
Impairment Losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5 |
Total Other Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 162 | 204 | 209 |
Income from Continuing Operations Before Income Tax | ' | ' | ' | ' | ' | ' | ' | ' | 161 | 203 | 208 |
Income Tax Expense (Benefit) Related to Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | 51 | -15 | -14 |
Net Income from Continuing Operations | ' | ' | ' | ' | ' | ' | ' | ' | 110 | 218 | 222 |
(Loss)Income from Discontinued Operations, net of Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | -322 | 67 | 35 |
Net (Loss) Income | ' | ' | ' | ' | ' | ' | ' | ' | -212 | 285 | 257 |
Comprehensive (Loss) Income | ' | ' | ' | ' | ' | ' | ' | ' | ($198) | $300 | $300 |
Earnings Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share of common stock from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | $0.45 | $0.95 | $0.98 |
Basic (loss) earnings per share of common stock from Discontinued Operations | ' | ' | ' | ' | ' | ' | ' | ' | ($1.31) | $0.30 | $0.16 |
Basic (loss) earnings per share of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ($0.86) | $1.25 | $1.14 |
Diluted earnings per share of common stock from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | $0.45 | $0.95 | $0.98 |
Diluted (loss) earnings per share of common stock from Discontinued Operations | ' | ' | ' | ' | ' | ' | ' | ' | ($1.31) | $0.29 | $0.16 |
Diluted (loss) earnings per share of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ($0.86) | $1.24 | $1.14 |
Schedule_I_Condensed_Financial1
Schedule I - Condensed Financial Information of Parent Company (Balance Sheets) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
CURRENT ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | $23 | $25 | $109 | $21 |
Prepayments of income taxes | 40 | 59 | ' | ' |
Total Current Assets | 1,398 | 1,267 | ' | ' |
Investments and Other Assets | ' | ' | ' | ' |
Goodwill | 1,407 | 1,407 | ' | ' |
Other | 163 | 163 | ' | ' |
TOTAL ASSETS | 14,848 | 15,794 | ' | ' |
CURRENT LIABILITIES | ' | ' | ' | ' |
Short-term debt | 565 | 965 | ' | ' |
Total Current Liabilities | 2,313 | 2,543 | ' | ' |
DEFERRED CREDITS | ' | ' | ' | ' |
Liabilities and accrued interest related to uncertain tax positions | 28 | 15 | ' | ' |
Long-term debt | 4,053 | 3,648 | ' | ' |
COMMITMENTS AND CONTINGENCIES | ' | ' | ' | ' |
EQUITY | ' | ' | ' | ' |
Common stock | 3 | 2 | ' | ' |
Premium on stock and other capital contributions | 3,751 | 3,383 | ' | ' |
Accumulated other comprehensive loss | -34 | -48 | ' | ' |
Retained earnings | 595 | 1,077 | 1,040 | 1,027 |
TOTAL LIABILITIES AND EQUITY | 14,848 | 15,794 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' |
CURRENT ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | ' | 262 | 257 | 131 |
Prepayments of income taxes | 151 | 12 | ' | ' |
Accounts receivable and other | 28 | 7 | ' | ' |
Total Current Assets | 179 | 281 | ' | ' |
Investments and Other Assets | ' | ' | ' | ' |
Goodwill | 1,398 | 1,398 | ' | ' |
Investment in consolidated companies | 3,935 | 2,633 | ' | ' |
Net assets associated with investment in consolidated companies held for disposition | ' | 1,232 | ' | ' |
Other | 37 | 55 | ' | ' |
Total Investments and Other Assets | 5,370 | 5,318 | 5,198 | 4,927 |
TOTAL ASSETS | 5,549 | 5,599 | ' | ' |
CURRENT LIABILITIES | ' | ' | ' | ' |
Short-term debt | 24 | 464 | ' | ' |
Interest and taxes accrued | 10 | 11 | ' | ' |
Accounts payable due to associated companies | 1 | 2 | ' | ' |
Total Current Liabilities | 35 | 477 | ' | ' |
DEFERRED CREDITS | ' | ' | ' | ' |
Notes payable due to subsidiary companies | 491 | ' | ' | ' |
Liabilities and accrued interest related to uncertain tax positions | 3 | 3 | ' | ' |
Total Deferred Credits | 494 | 3 | ' | ' |
Long-term debt | 705 | 705 | ' | ' |
COMMITMENTS AND CONTINGENCIES | ' | ' | ' | ' |
EQUITY | ' | ' | ' | ' |
Common stock | 3 | 2 | ' | ' |
Premium on stock and other capital contributions | 3,751 | 3,383 | ' | ' |
Accumulated other comprehensive loss | -34 | -48 | ' | ' |
Retained earnings | 595 | 1,077 | 1,040 | 1,027 |
Total equity | 4,315 | 4,414 | ' | ' |
TOTAL LIABILITIES AND EQUITY | $5,549 | $5,599 | ' | ' |
Schedule_I_Condensed_Financial2
Schedule I - Condensed Financial Information of Parent Company (Balance Sheets) (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized | 400,000,000 | 400,000,000 |
Common stock, outstanding | 250,324,898 | 230,015,427 |
Parent Company [Member] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized | 400,000,000 | 400,000,000 |
Common stock, outstanding | 250,324,898 | 230,015,427 |
Schedule_I_Condensed_Financial3
Schedule I - Condensed Financial Information of Parent Company (Statements of Cash Flows) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING ACTIVITIES | ' | ' | ' |
Net income | ($212) | $285 | $257 |
Loss (income) from discontinued operations, net of income taxes | 322 | -67 | -35 |
Adjustments to reconcile net income to net cash from operating activities: | ' | ' | ' |
Deferred income taxes | 458 | 312 | 178 |
Changes in: | ' | ' | ' |
Other assets and liabilities | 9 | 16 | 43 |
Net Cash From Operating Activities | 497 | 592 | 686 |
FINANCING ACTIVITIES | ' | ' | ' |
Dividends paid on common stock | -270 | -248 | -244 |
Common stock issued for the Direct Stock Purchase and Dividend Reinvestment Plan and employee-related compensation | 50 | 51 | 47 |
Issuances of common stock | 324 | ' | ' |
Issuance of term loan | 250 | 200 | ' |
Repayments of term loans | 450 | ' | ' |
Costs of issuances | -23 | -9 | -10 |
Net Cash (Used By) From Financing Activities | -88 | 293 | 149 |
Net (Decrease) Increase In Cash and Cash Equivalents | -2 | -84 | 88 |
Cash and Cash Equivalents at Beginning of Year | 25 | 109 | 21 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 23 | 25 | 109 |
Parent Company [Member] | ' | ' | ' |
OPERATING ACTIVITIES | ' | ' | ' |
Net income | -212 | 285 | 257 |
Loss (income) from discontinued operations, net of income taxes | 322 | -67 | -35 |
Adjustments to reconcile net income to net cash from operating activities: | ' | ' | ' |
Distributions from related parties less than earnings | -127 | -52 | -169 |
Deferred income taxes | -7 | -31 | -16 |
Changes in: | ' | ' | ' |
Prepaid and other | 2 | -23 | 23 |
Accounts payable | 6 | 6 | 2 |
Interest and taxes | -141 | 39 | 42 |
Other assets and liabilities | 3 | 4 | 11 |
Net Cash From Operating Activities | -154 | 161 | 115 |
FINANCING ACTIVITIES | ' | ' | ' |
Dividends paid on common stock | -270 | -248 | -244 |
Common stock issued for the Direct Stock Purchase and Dividend Reinvestment Plan and employee-related compensation | 50 | 51 | 47 |
Issuances of common stock | 324 | ' | ' |
Capital distribution to subsidiaries, net | -250 | -110 | -20 |
Decrease in notes receivable from associated companies | ' | 154 | ' |
Increase in notes payable due to associated companies | 491 | ' | ' |
(Repayments) issuances of short-term debt, net | -240 | -201 | 235 |
Issuance of term loan | 250 | 200 | ' |
Repayments of term loans | -450 | ' | ' |
Costs of issuances | -13 | -2 | -7 |
Net Cash (Used By) From Financing Activities | -108 | -156 | 11 |
Net (Decrease) Increase In Cash and Cash Equivalents | -262 | 5 | 126 |
Cash and Cash Equivalents at Beginning of Year | 262 | 257 | 131 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | ' | $262 | $257 |
Schedule_I_Condensed_Financial4
Schedule I - Condensed Financial Information of Parent Company - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Jul. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | |
Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Adjustment [Member] | |||
Surety Bond [Member] | Pepco Energy Services [Member] | Pepco Energy Services [Member] | Potomac Capital Investment Corporation (PCI) [Member] | Potomac Capital Investment Corporation (PCI) [Member] | Potomac Capital Investment Corporation (PCI) [Member] | Potomac Capital Investment Corporation (PCI) [Member] | Potomac Capital Investment Corporation (PCI) [Member] | |||||
Performance Guarantee [Member] | Surety Bond [Member] | Proceeds From Early Termination [Member] | Payment Paid From Early Termination [Member] | |||||||||
Ownership percentage of significant subsidiaries | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $32,000,000 |
Early termination agreement of leases | ' | ' | ' | ' | ' | ' | 'During the second and third quarters of 2013, PCI terminated all of its interests in its six remaining cross-border energy lease investments. | 'During the second and third quarters of 2013, PCI terminated all of its interests in its six remaining cross-border energy lease investments. | ' | ' | ' | ' |
Aggregate of net cash proceeds (payments) of lease investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 873,000,000 | 2,000,000,000 | ' |
Net pre tax gain / loss | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' |
Loss on early termination of finance leases held in trust, after tax | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' |
Proceeds from sale of Conectiv Energy wholesale power generation business | 1,640,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantee obligations amount | ' | ' | $725,000,000 | $29,000,000 | $190,000,000 | $229,000,000 | ' | ' | ' | ' | ' | ' |
Schedule_I_Condensed_Financial5
Schedule I - Condensed Financial Information of Parent Company - Revision to Prior Period Financial Statements (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Investment in consolidated companies | $3,935 | $2,633 | ' | ' |
Retained earnings | 595 | 1,077 | 1,040 | 1,027 |
Total equity | 4,315 | 4,414 | 4,304 | 4,198 |
As Filed [Member] | ' | ' | ' | ' |
Retained earnings | ' | 1,109 | 1,072 | 1,059 |
Total equity | ' | 4,446 | 4,336 | 4,230 |
Adjustment [Member] | ' | ' | ' | ' |
Retained earnings | ' | -32 | -32 | -32 |
Total equity | ' | -32 | -32 | -32 |
Parent Company [Member] | ' | ' | ' | ' |
Investment in consolidated companies | ' | 2,633 | 2,319 | 1,632 |
Total investments and other assets | 5,370 | 5,318 | 5,198 | 4,927 |
Retained earnings | 595 | 1,077 | 1,040 | 1,027 |
Total equity | ' | 4,414 | 4,304 | 4,198 |
Parent Company [Member] | As Filed [Member] | ' | ' | ' | ' |
Investment in consolidated companies | ' | 2,665 | 2,351 | 1,664 |
Total investments and other assets | ' | 5,350 | 5,230 | 4,959 |
Retained earnings | ' | 1,109 | 1,072 | 1,059 |
Total equity | ' | 4,446 | 4,336 | 4,230 |
Parent Company [Member] | Adjustment [Member] | ' | ' | ' | ' |
Investment in consolidated companies | ' | -32 | -32 | -32 |
Total investments and other assets | ' | -32 | -32 | -32 |
Retained earnings | ' | -32 | -32 | -32 |
Total equity | ' | ($32) | ($32) | ($32) |
Schedule_I_Condensed_Financial6
Schedule I - Condensed Financial Information of Parent Company - Investment in Consolidated Companies (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Investments in Consolidated Companies | $3,935 | $2,633 |
Conectiv LLC [Member] | ' | ' |
Investments in Consolidated Companies | 1,730 | 1,473 |
Potomac Electric Power Co [Member] | ' | ' |
Investments in Consolidated Companies | 1,922 | 1,643 |
Potomac Capital Investment Corporation (PCI) [Member] | ' | ' |
Investments in Consolidated Companies | 29 | -729 |
Pepco Energy Services [Member] | ' | ' |
Investments in Consolidated Companies | 250 | 242 |
PHI Service Company [Member] | ' | ' |
Investments in Consolidated Companies | $4 | $4 |
Schedule_I_Condensed_Financial7
Schedule I - Condensed Financial Information of Parent Company - Related Party Transactions (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
(Payable to) Receivable from Related Party, Total | ($1) | ($2) |
Money Pool Balance with Pepco Holdings (included in cash and cash equivalents) | ' | 262 |
Conectiv Communication, Inc. [Member] | ' | ' |
(Payable to) Receivable from Related Party, Total | -4 | -4 |
PHI Service Company [Member] | ' | ' |
(Payable to) Receivable from Related Party, Total | 3 | 1 |
Other [Member] | ' | ' |
(Payable to) Receivable from Related Party, Total | ' | 1 |
Potomac Capital Investment Corporation (PCI) [Member] | ' | ' |
Potomac Capital Investment Corporation | ($491) | ' |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | $34 | $43 | $44 |
Charged to Costs and Expenses | 37 | 35 | 45 |
Charged to Other Accounts | 5 | 8 | 8 |
Deductions | -38 | -52 | -54 |
Balance at End of Period | 38 | 34 | 43 |
Potomac Electric Power Co [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 13 | 18 | 20 |
Charged to Costs and Expenses | 15 | 13 | 21 |
Charged to Other Accounts | 1 | 2 | 2 |
Deductions | -13 | -20 | -25 |
Balance at End of Period | 16 | 13 | 18 |
Delmarva Power & Light Co/De [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 9 | 12 | 13 |
Charged to Costs and Expenses | 11 | 11 | 11 |
Charged to Other Accounts | 1 | 3 | 3 |
Deductions | -9 | -17 | -15 |
Balance at End of Period | 12 | 9 | 12 |
Atlantic City Electric Co [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 11 | 12 | 11 |
Charged to Costs and Expenses | 11 | 12 | 13 |
Charged to Other Accounts | 3 | 3 | 3 |
Deductions | -15 | -16 | -15 |
Balance at End of Period | $10 | $11 | $12 |